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Trump Offers Few Details On Operation He Claims Took Out "Big Facility" For Processing Drugs In Venezuela; Trump: Israel "Would Not Exist Today" Without Netanyahu; Trump Warns "It Will Be Horrible" If Hamas Doesn't Disarm; Ukraine Denies Claim Of Drone Attack On Putin Residence; Boxer Anthony Joshua Hurt In Car Crash That Killed Two In Nigeria; U.S., China Engaged in Reciprocal Tariffs in 2025; Switzerland Hit Hard by 39 Percent Tariff From U.S.; U.S. To Impose One Percent Tax on Cash Remittances Sent Out of Country; Cape Town Academy Recruits and Trains Young Tech Talent; Event Organizers Test Confetti in Times Square; Actor and Activist, Idris Elba Honored With Knighthood. Aired 2-3a ET

Aired December 30, 2025 - 02:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

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[02:00:43]

POLO SANDOVAL, CNN NATIONAL CORRESPONDENT: I'm Polo Sandoval, live in Atlanta. Wherever you may be watching us from around the world, this is CNN NEWSROOM, and here is what's coming away.

President Trump says the U.S. blew up a dock in Venezuela used to store and ship out drugs. And he made those remarks during a visit by Israeli Prime Minister Benjamin Netanyahu. Two leaders making no clear progress on the Gaza peace plan.

And also, we'll look at some of the unique traditions around the world for ringing in the New Year as we approach 2026.

(BEGIN VIDEO CLIP)

ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with Polo Sandoval.

(END VIDEO CLIP)

SANDOVAL: We want to begin with CNN exclusive reporting that the CIA carried out a drone strike on a Venezuelan port facility. If confirmed, this marks the first known U.S. attack inside of that country.

Sources familiar with the matter telling CNN that the strike happened earlier this month. The target appears to have been a remote dock that the U.S. government believes was being used to store drugs, and then, to move them onto boats for eventual shipping. Sources telling CNN that no one was at the facility at the time of the drone strike.

On Monday, the president was mostly tight lipped when he was asked about the strike. Here are a few of the details that the president shared as he welcomed the Israeli prime minister to the Mar-a-Lago resort.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: There was a major explosion in the dock area where they load the boats up with drugs.

They load the boats up with drugs. So, we hit all the boats, and now we hit the area. It's the implementation area. That's where they implement and that is no longer around.

(END VIDEO CLIP)

SANDOVAL: They didn't offer much more beyond that, and we can't tell you that the strike could draft dramatically escalate tensions as the U.S. continues blockading Venezuelan oil tankers. And also, as the U.S. ramps up pressure on President Nicolas Maduro's government.

But the U.S. military also carried out yet another deadly strike on an alleged drug boat in international waters on Monday, this time, in the Eastern Pacific. According to U.S. Southern Command, which also reports that two men were killed in this attack.

As the U.S. continues ramping up pressure on alleged narco- trafficking, the total death toll under Operation Southern Spear, it now has gone up to at least 107 people.

Joining us now is CNN military analyst and retired Air Force Colonel Cedric Leighton.

Colonel, thank you so much for joining us again.

COL. CEDRIC LEIGHTON (RET.), CNN MILITARY ANALYST: It's my pleasure. Polo, great to be with you.

SANDOVAL: So, let's get straight to your reaction. I mean, do you think that President Trump may have exposed what possibly could have been meant to be a covert operation?

LEIGHTON: Well, I think President Trump enjoys, you know, our successes, and if he judges that the operation was a success, he likes to publicize it. So, it's possible --

(CROSSTALK)

SANDOVAL: Yes.

LEIGHTON: Possible that this was a deliberate revelation on his part. You know, you never know, but I think it is definitely a possibility that he wanted the public to know that the forces of the U.S. of whatever type, were successful in conducting at least one part of his mission against Venezuela.

SANDOVAL: Since this -- since things began escalating in early September, you and I have talked about this as a possibility. The administration has warned that this would be a possibility. How is this a new chapter, perhaps, in the ongoing tensions between the U.S. and Venezuela?

We've known that the CIA was authorized to conduct covert ops inside. And again, as you and I have discussed that the administration had made clear that it wasn't ruling out targeting drug facilities on Venezuelan soil. So, should we be surprised about this?

LEIGHTON: Not really. And you know, I guess the specific target is always interesting when you find out about it, but that is definitely within the realm of possible targets, and was certainly on the target list. You know, a transshipment facility of, you know, this type, as it appears to be, is a pretty normal target to hit.

But what's interesting is that it appears to have been a CIA-led operation with support from Special Operations Command. And what's, you know, interesting about this aspect of it is, it's, you know, an intelligence community led operation, but a military supported operation. So, that kind of blends two different authorities legally.

[02:05:01]

And it also, you know, kind of puts us in an interesting role, because in action like this on territory of a sovereign nation could be considered an act of war. But normally you conduct covert ops, and you try to prevent the other side from knowing about them, or at least knowing who did them, and that's something where you want to exercise plausible deniability.

But for whatever reason, it seems like we're not interested in having plausible deniability, in this case, which, you know, may have some possible implications later on.

SANDOVAL: And in terms of the considerations that are taken by U.S. operatives, be it the military or, in this case, possibly the CIA. And, you know, as we tap into your expertise, Colonel, what kind of considerations are taken when it comes to going after targets on foreign soil, especially, if it's outside of a conflict active zone with concerns about civilians, perhaps.

LEIGHTON: Yes, exactly so concerned about civilians actually is paramount on the list. At least, when I was involved in operations, whether they be intelligence operations or operations, you know, of a more normal type, there was always the consideration about civilian casualties, and based on the reporting, we know that there were no civilian casualties in this particular case. So, that is actually a very good thing.

SANDOVAL: And if there is an additional goal from the White House, which it hasn't made clear of going after the Maduro regime, how do you see the Venezuelan president responding to this -- to the strike? Do you see it having an effect on Maduro himself?

LEIGHTON: Well, it's interesting is the Venezuelans apparently have had not responded to this strike when it occurred, and we don't seem to have much of a reaction, you know, right now as far as, you know, what they think of it. So, you wonder, did it have a major effect, or did it not have any effect at all?

Sometimes countries or cartels that are targeted don't want to admit that they have been hit or hurt by these kinds of strikes. So, it's possible that this was a significant blow and they just don't want to admit it, or it was insignificant, and they are brushing it off.

We just don't know at this particular point in time which one of those it is, but the Maduro regime may seek to respond in one way or another to this, but their hands are kind of tied in this particular case, because they really don't have a strike capability against the operatives that conducted this particular mission, and it's very difficult for them to get after the American Strike Force, the carrier strike group that is just to the north of them in the Caribbean Sea.

SANDOVAL: There is so much that we still don't know outside of what the few details that the president has released. But as always, Colonel Cedric Leighton, appreciate your time and your analysis.

LEIGHTON: You bet, Polo. Anytime. Thanks so much.

SANDOVAL: And the other big story that we are closely following is President Trump's meeting with Israeli Prime Minister Benjamin Netanyahu.

The two leaders, they held a private lunch at President Trump's Mar-a- Lago estate on Monday. That's where Netanyahu announced that Trump would receive the Israel price for peace.

Now, it's not the first time that a visiting dignitary or official awards the president with something, but it is the first time the country's highest civilian excellence honor will be awarded to a non- Israeli citizen.

President Trump calling Netanyahu a strong leader.

(BEGIN VIDEO CLIP)

TRUMP: The relationship has been extraordinary, and Bibi is a strong man. He can be very difficult on occasion, but you need a strong man. If you had a weak man, you wouldn't have Israel right now. Israel would have been, you know, Israel, with most other leaders, would not exist today.

BENJAMIN NETANYAHU, PRIME MINISTER, ISRAEL (through translator): I think Israel is very blessed to have President Trump, leading the United States, and I'll say, leading the free world at this time. I think it's not merely Israel's great fortune. I think it's the world's great fortune.

(END VIDEO CLIP)

SANDOVAL: President Trump, also downplayed the lack of progress with the Gaza cease fire agreement, saying that the plan's success, that it hinges on Hamas agreeing to disarm.

My guest is standing by. We'll discuss more on that in just a moment. But first, let's get the latest from CNN's Kevin Liptak, reporting from Palm Beach. Florida.

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: President Trump heaped praise on the Israeli Prime Minister Benjamin Netanyahu during their meeting down here in Palm Beach on Monday. They had a number of issues to discuss, and neither man seemed to put any daylight between themselves on all of these critical points of discussion. Whether it was Iran, President Trump saying that he had heard things about Iran, that it was rapidly accelerating various programs, be it nuclear or ballistic missile programs, and that the U.S. stood ready to potentially join Israel if it was required to go in and strike.

He said that they would knock them down very quickly. Will knock the hell out of them, which I think will be good news to Benjamin Netanyahu, who entered this meeting, intent on warning the president about what Israel sees as rapid developments in Iran's ballistic nuclear program.

[02:10:15]

When it came to Gaza, the president really putting the onus on Hamas to further disarm. That has been part of the phase two of the cease fire deal. There had been some concerns among American officials that Israel could potentially be slow walking the move to this second stage of the deal, but President Trump really revealed none of that during his remarks with Netanyahu down here in Florida, saying that it will be a necessity for Hamas to move very, very quickly to disarm, or that nations would go in and essentially do it for them.

Now, when it comes to sort of the political issues between the two men and the relationship between the two men, I think Netanyahu couldn't have asked for anything more. You know, he is staring down a tough re- election battle in Israel next year, and I think he entered this meeting looking for a degree of political boosting from President Trump.

Now, President Trump offered that in spade. He says he doesn't think Israel would exist without Netanyahu as prime minister. Netanyahu really did repay the favor, awarding President Trump the Israel Prize. That's the first time it's ever been awarded to a non-Israeli.

Kevin Liptak, CNN, West Palm Beach, Florida.

SANDOVAL: All right. Let's take you to Jerusalem now with our next guest here, Yaakov Katz, a senior columnist at The Jerusalem Post and author of "While Israel Slept". Yaakov, it's always great to see you.

YAAKOV KATZ, SENIOR COLUMNIST, THE JERUSALEM POST: Thanks. Polo.

SANDOVAL: So, what is your assessment of Monday's meeting? Did it serve to benefit Netanyahu or the broader efforts for peace in the least?

KATZ: Well, I would say first and foremost, it definitely served Netanyahu. It was a big political win for him, standing next to the most powerful man in the world, President Donald Trump, the closest ally to the State of Israel, and hearing from Trump, and Trump basically telling not just the Israeli people, but the entire world, this is your leader. This guy not only should be pardoned, not only should be led up his trial, but he basically is the one who saved Israel after the October 7th Hamas massacre, the attack from Gaza. He is the one who saved Israel from Iran, and he's the leader that you pretty much want to keep as the head of the country as we go into an election that will be held probably in the second part -- second half of 2026.

When we look at the bigger challenges, what happens next in Gaza? What happens with Iran? What's going to be with Syria, Turkey, Lebanon, that's where -- I don't know that you saw daylight, but you did see some little disagreements on some of those issues.

SANDOVAL: Yes, no shortage of praise coming from Trump directed at the prime minister, as he says, he faces a pretty difficult reelection bid.

I want you to listen to President Trump's answer to reporters when he was asked about settler violence in the West Bank.

(BEGIN VIDEO CLIP)

LIPTAK: Mr. President, sir.

TRUMP: Yes.

LIPTAK: Mr. President, did you have a message for the prime minister about the West Bank? And are you, at all concerned that settler violence, Israeli settler violence, could be undermining the peace plan that --

(CROSSTALK)

TRUMP: Well, we have had a discussion, big discussion, for a long time on the West Bank, and I wouldn't say we agree on the West Bank a hundred percent, but we will come to a conclusion on West Bank.

LIPTAK: If I could ask, what is the disagreement?

TRUMP: Well, I don't want to do that. It will be announced at an appropriate time. But he will do the right thing. I know that. I know him very well. He will do the right thing. Yes.

(END VIDEO CLIP)

SANDOVAL: So, no clear answer there, when he was asked by my colleague, Kevin Liptak. But from your perspective, what is your read on those differences?

KATZ: Well, I think if we look at the West Bank, for example, there's definitely the settler violence has really seen a major uptick, or what's called settler violence. But extremist violence in the West Bank against Palestinians is -- has been out of control for too long, and needs to be something that's reined in, and that's obviously going to be something that the president will bring up with the Israeli prime minister. It's not necessarily a policy issue. When you look at the policy issues, the questions really are OK, what happens to the Palestinian Authority? That's until now, been the partner for Israel in the Palestinian territories in the West Bank, and it's the partner that Israel has basically delegitimized and said they are not willing to work with.

I think, that's what President Trump is referring to, when he says he knows that Netanyahu will do the right thing. So, you do have some of this -- these disagreements, Polo. They are not huge, they are small, but a lot of it is what's holding back Israel. It's holding back Netanyahu, are the politics. Right?

He is constrained because of some of the limitations of his coalition, which is has includes the far-right parties, and he can't make those overtures or those steps that Trump might want him to make towards the Palestinian Authority.

But look, on Gaza, for example, on Hamas disarmament, on Iran that Trump saying, if they go for the nuclear weapon, Israel can do it fast.

[02:15:03]

If they go for more ballistic missiles, Israel can also take action.

I mean, these are really the existential issues. And on these issues, what we saw was really shoulder to shoulder between the president and the prime minister.

SANDOVAL: And when it comes to Hamas, it seemed that both leaders really did put a lot of onus on Hamas when it comes to advancing to phase two, as Kevin also outlined in his report just now. But ultimately, how much of it depends on Prime Minister Netanyahu.

I mean, we were watching on Monday to see if maybe there would be at least some gentle pressure coming from Donald Trump, and it didn't seem to be the case.

KATZ: Yes, we didn't see that publicly, Polo. That's true.

Publicly, Trump really put the onus on Hamas, they have to disarm. There is no way they were going to move towards the rehabilitation, the reconstruction in Gaza without that disarmament.

But I would guess that in the closed room, there is a lot of talk, OK, who is going to make up the ISF? This multinational force? The Americans and Trump said it. We -- I like Erdogan, the president of Turkey. He is a good guy. He is my good friend. I trust him.

Israel doesn't want to see Turkey have a foothold, or any presence, for that matter, inside Gaza. Trump wants the Turks to have a role in Gaza. Trump would want the Qataris to have role in Gaza. Another lightning rod for Israel.

So, there is a lot of those issues, those small details that might seem small to the general public, but for Netanyahu, politically, they could be dramatic, and therefore, they are going to stay in the closed room. But I would assume that we'll find out pretty quickly what exactly are the details of how this is going to play out with Hamas and Gaza.

SANDOVAL: Before we let you go -- before we let you go, Yaakov, let's quickly shift to Iran. What stood out to you about the president's threat to once again, send in bombers if Tehran continues to build up its missile capabilities?

KATZ: Well, there is -- there is two pieces to that, Polo. One is Trump has said, once again. I mean, he said it kind of jokingly, I don't want to -- I want to save the fuel. I don't want the B2's to have to fly there, but he wants to give a chance for a deal. And he's basically said that to the Iranians, make the right move, be smart, make a deal with me, or else.

And that, or else, was basically this carte blanche to some extent, that he gave to Netanyahu, which is, if you feel the need to go in there and take out their nuclear program again, go for it. If you feel the need to stop the production of ballistic missiles, go for it. And even America might stand with you and again, participate, like this past June.

So, if you are the Iranians, you're watching what happened on Monday, and you are saying, OK, we are at a crossroads right now. We might face another military action jointly by the U.S. and Israel, or maybe better, to make a deal, we'll have to wait to see what the Iranians decide.

SANDOVAL: It was notable that the president said that, at least, he wasn't able to provide immediate evidence that Iran was rebuilding that program, but we will certainly continue to watch it along with you.

Yaakov Katz, as always, appreciate all of your analysis. Great having you on again.

KATZ: Thank you.

SANDOVAL: Because President Donald Trump said that he held a productive phone call with Vladimir Putin amid continued efforts to end the war in Ukraine. And it was during that call that Russian -- that the Russian leader told him that a Ukrainian drone attack had targeted one of his residences. That's a claim that Ukraine immediately denied.

CNN's Frederik Pleitgen has more details from Berlin.

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: As the Trump administration continues its efforts to stop the conflict in Ukraine, a major incident is threatening to make things all the more difficult, The Russians accusing the Ukrainians of launching a massive drone attack on a residence of Russian President Vladimir Putin.

Now, this residence is located about two-thirds of the way between Moscow and St. Petersburg, in a place called Novgorod. The Novgorod Region.

And the Russians are saying that in the night, between the 28th and 29th of December, that Ukraine launched some 91 drones towards that place. The Russians say they took all of them down. There were no injuries. But they are also saying that there will be retaliation on the part of Russia, and also that they are rethinking, as they put it, their stance on Ukraine as those negotiations to end the conflict move forward.

Now, the Ukrainians themselves are denying that any of this happened, saying that they did not attack this residence. In fact, the Ukrainian president, Volodymyr Zelenskyy came out and accused the Russians of looking for a pretext to further attack Ukraine.

All this comes as both the U.S. and Ukraine say that major progress has been made towards ending the conflict. This, of course, coming after that meeting between U.S., President Donald Trump and the president of Ukraine, Volodymyr Zelenskyy, saying about 90 percent of the way has been achieved so far.

However, some thorny issues still remain. First and foremost, the question of possible territorial concessions on the part of Ukraine towards the Russians. The Ukrainians now saying that it is something that might be possible.

However, Ukraine's president says that a referendum would have to be held in Ukraine, and for that referendum to be held, there needs to be a temporary cease fire. However, the Russians are saying, as far as they are concerned, a temporary cease fire is not possible. Fred Pleitgen, CNN, Berlin.

[02:20:07]

SANDOVAL: China is ramping up its war games around Taiwan. Taiwan says that rockets fired by China today have landed in waters near the island. Beijing launched the military drills, which include live fire activities after the U.S. announced a landmark multi-billion-dollar arms package for Taiwan. President Trump, however, downplayed the issue.

(BEGIN VIDEO CLIP)

TRUMP: Well, I have a great relationship with President Xi, and he hasn't told me anything about it. I certainly have seen it, but he hasn't told me anything about it, and I don't believe he is going to be doing it.

UNIDENTIFIED FEMALE: (INAUDIBLE).

TRUMP: Doing naval exercises for 20 years in that area. Now, people take it a little bit differently. But, in fact, larger than they are doing right now.

(END VIDEO CLIP)

SANDOVAL: And as the president downplays those drills, they have, however, caused major flight disruptions in Taiwan, impacted more than 800 flights and about 100,000 travelers.

British boxer Anthony Joshua, lucky to be alive after a deadly car crash that killed two colleagues on what's considered the most dangerous road in Nigeria. What police say caused this fatal accident.

And one of the big stories of 2025 was President Trump's tariffs. We'll examine the impact those U.S. trade policies had on three countries, in particular. Stay with us.

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[02:25:54]

SANDOVAL: British boxer Anthony Joshua is currently recovering from minor injuries after being involved in a car crash in Nigeria that killed two of his associates.

You see the aftermath of the crash there. Authorities say that the driver lost control of the SUV on a -- on a highway that's considered the most dangerous road in the country. Here is Larry Madowo with the report.

LARRY MADOWO, CNN INTERNATIONAL CORRESPONDENT: Anthony Joshua has called Ibadan one of his favorite cities to go to Nigeria because his granddad lives there. And now, there is a painful memory to go with it. The British boxer of Nigerian descent involved in a tragic accident while driving on the Lagos-Ibadan Expressway.

Joshua was in the back of this Lexus SUV that authorities say was speeding on that highway and lost control while overtaking, crashed into a stationary truck that was well parked on the side of the highway.

Two people were killed in this accident, the driver of the car, Anthony Joshua, was in, and a passenger. Joshua survived with minor injuries, and one of the passengers survived as well.

Social media video shows Anthony Joshua getting pulled out of the wreckage of his car, which is in a bad state. He appears to be in pain, in a daze, is walked across the road and into the passenger seat of a police vehicle and driven away for treatment.

It's an accident that has shocked Nigeria and the world, especially as Anthony Joshua has recently been in the news after having knocked out Jake Paul in this well-publicized Netflix bout just a week ago.

Hours before this accident, he had posted a video playing ping pong with one of his team members, and then, this accident. People paying attention to it, because Anthony Joshua is much beloved in that country, here in the U.K. and around the world. One of the most famous boxers out there. But a lot of people sending support, including President Bola Tinubu of Nigeria, sending sympathies. Many leaders, many in the country, praying for him and sending condolences to those who were killed in this accident.

Larry Madowo, CNN, London. SANDOVAL: And you heard Jake Paul mentioned just now in Larry's report. Well, he sent these condolences on X, writing, "Life is much more important than boxing. I'm praying for the lost lives. A.J. and anyone impacted by today's unfortunate accident."

Well, three people are dead following an avalanche in Spain's Pyrenees Mountains. Authorities say that they were part of a group of six, who were cross country skiing when the snow collapsed down the western face of the mountain, burying them.

Two men and one woman were killed. A fourth person was injured, while two others managed to escape.

They are the ones who call for help.

Well, sending money from the U.S. to other countries, it is about to get more expensive, in some cases. The Trump administration says that it is part of its effort to curb illegal immigration.

We'll look at the impact that it could have here and abroad for more than just immigrants.

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[02:33:48]

SANDOVAL: The big story of this year in the global economy was the impact of Donald Trump's tariffs. The U.S. president issued a series of punishing tariffs on countries around the world back in April. Here's CNN's Anna Cooban, who shows us how those tariffs affected three countries in particular.

ANNA COOBAN, CNN BUSINESS AND ECONOMICS REPORTER: 2025 has been a momentous year for global trade. When President Donald Trump took office again for the second time in January, everybody was scared of tariffs. And then when his Liberation Day, his so-called Liberation Day, came in April, and he announced a lot of these reciprocal tariffs, it was a lot worse than expected, a lot higher than expected.

Now, this trade war has had far-reaching implications, but to really get into it, I'll just focus on three countries to try and explain to you just how significant this has all been. So firstly, we've got the U.S. and China, two major trading partners. The world's second-largest economy is China.

Now, after this reciprocal tariff debacle, we see China yanking up tariffs on the United States, and then the United States responding in kind. We're now in this tit-for-tat trade war. But the impact on China has actually been fairly mixed. In fact, you might say in some cases, it's been quite positive.

[02:35:00]

Now, China is the only country in the world that has logged a trade surplus. That's when people buy more things from China than China buys from them. It logged a surplus of $1 trillion in just the first 11 months of the year. No other country has ever achieved that milestone.

And we can see here that Chinese exports to many parts of the world, Europe up 10 percent, Africa up nearly 30 percent in that same time. That more than offsets this over 18 percent drop in Chinese exports to the United States. However, it's not all so rosy for other countries.

Switzerland, we see Switzerland here has got the -- logged the steepest fall in its GDP, in its economy during the third quarter this year since back in the pandemic, since the height of COVID. Now, many people were quite confused when President Trump announced a 39 percent tariff on Switzerland. Many people asking what did Switzerland ever do to the United States? That's now reached -- they're now reached an agreement to lower that down to 15 percent. But as you can see, some of the damage has already been done.

Now to Canada, closest trading relationship with the United States. We saw the United States say they're going to put a 25 percent tariff on most Canadian goods earlier this year, a 50 percent tariff on aluminum and steel imports into the US.

And this has had an impact on Canada's manufacturing sector. So we've seen that since the start of the year, the sector has lost over 36,000 jobs. In fact, the workforce in this sector is now the smallest it's been since September 2021, again, when the country was reeling from the impact of the pandemic.

So, this year's been pretty big -- a pretty big one for trade. Now, we don't know what's going to happen in the next few years, how this is all going to play out. It could be that the Supreme Court overturned some of these reciprocal tariffs. They're currently looking into that right now. But whatever happens, we know that in many cases, the damage has already happened.

Anna Cooban, CNN, London.

SANDOVAL: One provision of President Trump's so-called Big Beautiful Bill, it calls for a 1 percent tax on most remittance transfers out of the country. Critics are arguing that this will likely hurt immigrants and maybe even the U.S. economy. So let's dive deep into this topic. Joining us now is Manuel Orozco. He's the director of the Migration Remittances and Development Program at the Inter-American Dialogue.

Manuel, thank you so much for making time for us.

MANUEL OROZCO, DIRECTOR, MIGRATION REMITTANCES AND DEVELOPMENT PROGRAM, INTER-AMERICAN DIALOGUE: You're welcome.

SANDOVAL: So the IRS states that remittance transfer providers, that they will have to collect a tax on these cross-border cash payments starting on January 1st. In your view, how do you see immigrants in the U.S. being impacted and potentially, their communities abroad who have benefited by these -- who have been benefited by these transfers for decades?

OROZCO: Well, it's a big impact in the sense that first it affects the pocket of the migrant. Half of migrants send money in cash through authorized means, but that's close to 20 million individuals who send 16 times a year, about $400 every time they remit. And that money, basically, it's about $400 per transaction. That's $4 to send -- to pay just for that tax. And most of the research that we've done shows that for 1 percent increase in the cost of sending money, you tend to send $30 less.

So, you know, migrants may opt to pay the tax or to switch to bank account systems to not be able to pay the tax. So there are different challenges, different risks involved in this.

SANDOVAL: And just on that last point, Manuel, I wonder if you could expand on that. How much of a hit could a 1 percent tax be for lower wage earners? I mean, $30, someone may hear it and think that that's fairly manageable. But especially for those perhaps on the lower end of the wage gap, I mean, what could that mean?

OROZCO: It means a cost to be poor. Basically, the average income right now for an immigrant, whether it's in construction or domestic work or working at restaurant, busboy, et cetera, it's about $3,000 to $3,500. So to pay $3 on top of all the other transaction costs that you have to incur, which is already about $8, so it will increase to $11 just to send one transaction, in addition to all of the other costs that you have to incur for other type of bill payments, is quite an onerous penalty for this type of transaction and for these low- income individuals who, by the way, in the majority of cases, close to 80 percent, are actually paying federal income tax and state income tax.

SANDOVAL: And it's important to remind viewers that these communities are beyond just Latin America, and so that's also worth considering. And what would you say though, for those who may possibly support this tax, who may argue that it could add to U.S. tax revenue?

[02:40:00]

OROZCO: Well, it doesn't really add a lot to tax revenue. It's a political decision. The individual who sends money is sending a portion of their income, and they are already paying taxes. Those who are not contributing to taxes should perhaps be penalized differently.

But for the most part, the majority of people are actually using authorized remittance transactions, contributing to taxes indirectly to the money service businesses. So it's not really a way to penalize individuals on the basis of their legal status. They are two separate things that have always been kept apart from each other.

SANDOVAL: Yeah.

OROZCO: So, it's not exactly perfect science and it's a political decision.

SANDOVAL: In late November, the U.S. Treasury Department told money service businesses, which are the businesses that people will use to send their money abroad, they told those businesses to be vigilant in identifying suspicious financial activities involving, according to the bulletin, it said involving illegal aliens. Now, I should mention that same bulletin.

It also stated that a vast majority of these remittances from the United States are legitimate and that they even provide critical financial support to family abroad. So, why do you think this administration is essentially taking aim at remittances with its tax and with this bulletin that was issued?

OROZCO: Well, I think the political idea to all this is to reduce the size of migrants in the United States and curtailing remittance transfers in their assumption is a way to mitigate the continuity of migration and basically make people to leave their country because there will be no reason to send money if they are being penalized in addition to deportations. So, it's a logic that is a little bit out of rationality, but it is what it is.

The reality is that people were already paying taxes, and the guidance that the Treasury established on this issue is not really consistent with proper law, where agents of money transfer companies, money service businesses basically, are not authorized to collect information on your work authorization or your legal status.

Therefore, it's more an intimidation practice than anything else.

SANDOVAL: Yeah, potentially attempting to deputize some of these businesses. But again, as the U.S. government maintains, a vast majority of these are not only legitimate, but they are also crucial to communities abroad. Manuel Orozco, thank you so much for your expertise and for taking the time for us.

OROZCO: Thank you.

SANDOVAL: After the break, we take you to South Africa where an academy is working to find the next generation of tech talent, while also hoping to counter unemployment among the country's youth.

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SANDOVAL: I appreciate you staying with us. South Africa currently facing one of the highest youth unemployment rates in the world. Joblessness among 15 to 25-year-olds reaching more than 62 percent this year. Yet demand for tech talent, that continues to grow. In this month's Africa Insider, we visit WeThinkCode. It's a Cape Town academy that's training young people for careers in software development.

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NYARI SAMUSHONGA, CHIEF EXECUTIVE OFFICER, WETHINKCODE: I am Nyari Samushonga and I am the CEO of WeThinkCode. WeThinkCode is a tech academy that is preoccupied with bringing talented young people that are left out due to structural barriers into participating in a digital economy that is creating an unprecedented amount of opportunity to create value.

South Africa is suffering from a crazy youth unemployment pandemic. But at the same time that that problem is there, the world is experiencing an acute shortage of skills in emerging technology.

VENUS CHAPPIE, GRADUATE, WETHINKCODE: I would describe the experience of being a WeThinkCode student and graduate as nothing you would expect. You are constantly challenged. And I think one thing about starting with something new, people are usually really afraid to not know what they're doing and still have the confidence to keep going.

People don't understand how creative it is to be a problem solver. So when you are thinking of a problem and thinking of different solutions, you have to be creative. That is the only way you thrive.

SAMUSHONGA (voice-over): The cost of university is a barrier and the qualifications to enter are a barrier. Yet young people have the raw talent, the drive, the capacity to acquire the skill. WeThinkCode exists to equip young people with the skills that the industry needs, so that they can participate in the economy and solve real-world problems.

1,800 young people have graduated out of our academy. Over 80 percent of them have been placed in employment and are now earning five times what their households were earning before they joined us.

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CHAPPIE: I am proud to say that today I am a fully employed junior software engineer at MTN and I fly the WeThinkCode flag very high. Very proud to be a graduate of this space. Genuinely, anyone can do it, especially women.

SAMUSHONGA (voice-over): We are 52 percent women, which is unheard of in tech. Over 60 percent of the youth that walk our halls come from households that are living on the poverty line. This is truly transformational for their lives, for their families, for their societies and ultimately, for South Africa.

CHAPPIE: WeThinkCode saved my life. It gave me a brand new purpose. It made me feel like I know where I'm going. I want this for my life.

SAMUSHONGA (voice-over): What we really need to do is to dig into the talent pool that already exists, the opportunity that technology creates, and then unleash this juggernaut of young Africans building software, not just for us, but for everybody.

(END VIDEOTAPE)

SANDOVAL: Instead of coming here on "CNN Newsroom," you may want to pick up some groceries or maybe even a new pair of underwear before New Year's Eve. We'll tell you about some, I guess, you can call them unique traditions from around the world as people get ready to welcome 2026.

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UNIDENTIFIED MALE: Three, two, one, Happy New Year! Oh my God! (END VIDEO CLIP)

SANDOVAL: We believe 2025 is already drawing to a close, and the countdown is on now to 2026. And while the team here at CNN gets ready for their own New Year's Eve party, the folks in Times Square, they are making sure that that confetti, it is just right for come midnight. Again, just a couple of days. More than 3,000 tons of this stuff. It's going to be dumped on crowds there.

But have you ever wondered exactly how other parts of the world ring in the New Year? Our Max Burnell takes a look.

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MAX BURNELL, CNN PRODUCER (voice-over): What does eating 12 grapes, wearing red underwear, and receiving coal from a tall, dark-haired man have in common? Well, depending on where you are in the world, these actions are thought to bring you good luck in the New Year.

For a lot of us, celebrations on December 31st might look something like this.

[02:55:00]

Fireworks have become widely recognized as a way to mark the New Year, but they originally became popular in Asia to ward off evil spirits. Around the world, there are a multitude of lesser-known traditions and rituals at the turn of a new year, and many of them include food.

Some of us might be eating soba noodles for a long life, lentils for money and prosperity, or marzipan piglets for good fortune. The tradition of eating exactly 12 grapes at midnight, one for each toll of the clock, to encourage a prosperous new year, originated in Spain. More recently, it has spread around the world after gaining popularity on TikTok.

But it's not all about the food. Wearing red underwear is said to bring you good luck, especially if it's a gift from someone else. Want to travel more? In some Latin cultures, people believe walking around with an empty suitcase at the end of one year might bring more trips in the next. And in Scotland, a custom called first footing means the first person to enter your house on January 1st might influence your year.

Traditionally, it should be a tall, dark-haired man coming with gifts including a coin, some shortbread, coal, and whiskey for good fortune. Superstitions, traditions, celebrations, however you want to mark the New Year, we'll leave it to you.

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SANDOVAL: Yeah, I've never been able to scarf down all 12 grapes. And as all these countries around the world, they get ready to celebrate the New Year, the party has already started in Scotland. I want to show you Edinburgh's famous Hogmanay celebration. Bagpipers, drummers, all of them there at the parade as they go down the city streets. The procession even includes a group that celebrates Viking traditions. Edinburgh will be one of the cities where CNN will be celebrating New Year's live, so be sure to join us on New Year's Eve.

And British actors -- I should say, British actor Idris Elba has received a Knighthood for his efforts to curb youth violence and knife crime. The 53-year-old star has long involved -- has been long involved in campaigning work, launching the community-focused "Don't Stop Your Future" initiative. Renowned ice skater, Jayne Torvill and Christopher Dean were also honored with the Damehood and Knighthood, respectively.

I really appreciate you joining us, the last hour of news. I'm Polo Sandoval in Atlanta. The news continues with my colleague, Rosemary Church, in just a moment.

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