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CNN This Morning

Trump Levies Tariffs on Canada, Mexico, China Ahead of His Congressional Address; Fears of Social Security Cuts as More Government Firings Planned. Aired 6-6:30a ET

Aired March 04, 2025 - 06:00   ET

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

AUDIE CORNISH, CNN ANCHOR: It's Tuesday, March 4th. Here's what's happening right now on CNN THIS MORNING.

[06:00:43]

(BEGIN VIDEO CLIP)

JUSTIN TRUDEAU, CANADIAN PRIME MINISTER: We will have a strong, unequivocal and proportional response.

(END VIDEO CLIP)

CORNISH: Canada, Mexico, China hitting back as U.S. tariffs go into effect. How could a trade war impact your bottom line?

Plus, President Trump says he'll tell it like it is during tonight's big speech to Congress. We'll talk to a top Trump adviser about his message to Americans after all this change.

And --

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: Now maybe somebody doesn't want to make a deal. And if somebody doesn't want to make a deal, I think that person won't be around very long.

Big trouble.

(END VIDEO CLIP)

CORNISH: The president halts military aid to Ukraine. How long before Zelenskyy will be forced into peace talks with Putin?

It's 6 a.m. here on the East Coast. Here's a live look at the Capitol, where the president's big speech will be tonight.

Good morning, everyone. I'm Audie Cornish. I want to thank you for waking up with me.

Talk about the news ahead. A new trade war is sending shockwaves through the economy. This as Donald Trump prepares to speak to Congress. While you were sleeping, the president enacted 25 percent tariffs on

Canadian and Mexican goods. He also doubled an existing tariff on Chinese goods. So that number is up to 20 percent.

For President Trump, the move is as much about payback as it is about revenue.

(BEGIN VIDEO CLIP)

TRUMP: They can't come in and steal our money, and steal our jobs, and take our factories, and take our businesses, and expect not to be punished. And they're being punished by tariffs.

(END VIDEO CLIP)

CORNISH: Well, they are punishing the U.S. with tariffs of their own. Overnight, China announced 15 percent tariffs on U.S. chicken, wheat, corn and cotton. They're also slapping a 10 percent tax on U.S. pork, produce, beef, and dairy products.

Canada, well, they're vowing to, quote, "not let this unjustified decision go unanswered." Prime Minister Justin Trudeau announced tariffs on $30 billion worth of U.S.-made products. He also promised to add tariffs to another $125 billion worth of goods in the coming weeks.

All right. So, what does this mean for you and your wallet? Economists and Wall Street think it may drive up prices, despite Trump's campaign promising to do the opposite.

(BEGIN VIDEO CLIP)

TRUMP: We're going to get those prices down.

We're going to bring down the energy prices fast, fast.

So, when I win, I will immediately bring prices down.

(END VIDEO CLIP)

CORNISH: Joining me now to talk about all this: Eva McKend, CNN national politics correspondent; Elliot Williams, CNN legal analyst; and Jackie Kucinich, and -- sorry -- political analyst and Washington bureau chief for "The Boston Globe."

So, for everything that's been happening in these opening weeks -- we've been talking about DOGE; we've been talking about federal cuts -- at the end of the day, it was the economy, stupid, that allegedly turned this election.

So, what can we sort of expect Democrats to do in terms of talking about these tariffs? Is this on their, like, "to do" list, or are they still going to be focused on federal workers tonight?

EVA MCKEND, CNN NATIONAL POLITICS CORRESPONDENT: I think it's going to be a mix of both, because certainly, this -- the economy is the No. 1 issue for so many voters. It was when I spoke to them throughout the election cycle on the campaign trail.

But this is such a deeply held belief for this president that tariffs is the right strategy, that he is hellbent on this strategy despite what economists say.

And so, Democrats have an opening here for the ultimate showman. He is not impervious to audience feedback. And it is going to hurt people.

CORNISH: Yes. You know, I want to play a cut from Warren Buffett, who was asked about how tariffs would affect the economy.

(BEGIN VIDEO CLIP)

NORAH O'DONNELL, CBS NEWS: How do you think tariffs will affect the economy?

WARREN BUFFETT, INVESTOR AND CEO OF BERKSHIRE HATHAWAY: I mean, tariffs are actually -- we've had a lot of experience with them. They're -- they're an act of war, to some degree.

O'DONNELL: How do you think tariffs will impact inflation?

BUFFETT: Over time, they're a tax on -- on goods. I mean, you know, the tooth fairy doesn't pay them. I mean.

(END VIDEO CLIP)

CORNISH: So, what I like about this moment is it's -- he's not wrong, in that Trump also believes them to be an enforcement tool. Right?

[06:05:02]

Well, like against other countries. Right? I want certain policies. Tariffs is my weapon to get that.

JACKIE KUCINICH, CNN POLITICAL ANALYST: And against companies. Right? Because the last administration, he said that, you know, it was -- it was going to force companies to come back to the United States, to move their -- their facilities back.

So, yes, he's -- he's looking -- he -- he has long said that countries are taking advantage of the United States. This even predates his presidency. And so, this -- he was not shy about talking about this --

CORNISH: Yes.

KUCINICH: -- on the campaign trail, as well. So --

CORNISH: And a lot of voters believe that, right? I mean, I don't know.

ELLIOT WILLIAMS, CNN LEGAL ANALYST: Right, absolutely. However, right now -- and this is picking up on the Warren Buffett quote -- this is all sort of abstract to voters --

CORNISH: Yes. WILLIAMS: -- the idea that this is an act of war or whatever else.

CORNISH: Yes.

WILLIAMS: People really don't --

CORNISH: Also, you hear tariffs and you're like --

WILLIAMS: No.

CORNISH: You're not sure you should care.

WILLIAMS: Right. And, you know, frankly, it'll take a few days for your avocados to go up in price.

CORNISH: Yes.

WILLIAMS: It'll probably take a few weeks for your Nissan to get more expensive or your Stellantis Chrysler truck because of plants in Canada.

So, until those effects start being seen, this is -- this is an economists and intellectuals, frankly, on television question for most people.

KUCINICH: Though I will say, I mean, looking at the list of things that China has already said that they're -- they're going to put tariffs on, farmers --

WILLIAMS: Right.

KUCINICH: -- are looking at that, and they're saying --

CORNISH: Yes.

KUCINICH: They're -- they're taking notice, for sure, and their members of Congress.

CORNISH: Well, let me add one more thing about that, because we keep talking about this joint address to Congress, and he's talking to Congress. He's not talking to Congress. He's talking to us.

This is where the president gets to get up and say, here's how I've spent the time you have given me in these first few weeks, and here's what I want to do going forward.

And this means that Republicans will have to talk about that. Here's Republican Mike Lawler talking about the threat of tariffs becoming a reality.

(BEGIN VIDEO CLIP)

REP. MIKE LAWLER (R-NY): I have no problem with the use of tariffs as a negotiating tool. But if you're going to threaten the use of it, then you actually have to do it, right? And that's -- that is certainly what the president is doing. (END VIDEO CLIP)

CORNISH: So, he actually has to do it. But I hear this a lot. It's just a negotiating tool.

So, as it becomes less a negotiating tool and more reality, what does that mean? I mean, we're seeing people at town halls already complaining.

MCKEND: And let's listen to those voters. I think that the voters in a district like Mike Lawler's, you know, their response will be really instructive. Those are -- those are swing voters.

I was speaking to a farmer in Kansas. He is the only one in his community who voted for Vice President Harris. All of his neighbors supported this president.

CORNISH: So, he's the one.

MCKEND: Yes.

CORNISH: Yes.

MCKEND: But -- but he said that to me, that there's a lot of nervousness among his community right now, but also a lot of pride.

And so, right now, he's not hearing farmers tell him that they regret their decision --

CORNISH: Yes.

MCKEND: -- to vote for President Trump, but they're -- they're -- they're on edge.

CORNISH: OK. I want the group chat to stick with us. We've got a lot to talk about today.

Up ahead on CNN THIS MORNING, going all in on DOGE. President Trump is expected to boast about the cuts to government in his big speech before Congress tonight. Jason Miller, senior adviser to the president, is here to discuss.

Plus, storms and possible tornadoes threatening the South. What does that mean for the party in the Big Easy?

And we'll take it [SIC] -- and what will it take for President Trump to get Ukraine's president back to the negotiating table?

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: What we need to hear from President Zelenskyy is that he has regret for what happened. He's ready to sign this minerals deal, and that he's ready to engage in peace talks.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

[06:13:10]

CORNISH: It's 12 minutes past the hour, and here's your morning roundup: some of the stories you need to know to get your day going.

It's day one on the job for new Education Secretary Linda McMahon. The Senate voted 51 to 45 to confirm the former CEO of the WWE. President Trump's mandate to her: shut the place down.

(BEGIN VIDEO CLIP)

TRUMP: I told Linda, "Linda, I hope you do a great job and put yourself out of a job." I want her to put herself out of a job.

(END VIDEO CLIP)

CORNISH: This is Trump's 22nd nominee to be confirmed by the Senate.

And this morning, Dolly Parton, grieving the loss of her husband, Carl Dean, passed away yesterday at the age of 82. In a statement, Parton says, "Words can't do justice to the love we shared for more than 60 years."

Also, SpaceX has a new date for its Starship mega rocket test launch. Last night's attempt was scrubbed, because they found some issues.

The launch was supposed to be the first for the Starship since January, when an unmanned flight exploded, sending debris down on the islands of Turks and Caicos.

And will Fat Tuesday be washed out by severe weather? Here's a live look at Bourbon Street, where Mardi Gras celebrations will be in full swing later this morning. There's a threat of thunderstorms today in New Orleans, and there could even be isolated tornadoes.

And you've got to see this. There's actually a fast-moving dust storm whipping across the Southwest, choking out the light, making it hard to see even a few feet in front of you.

This video was taken in New Mexico, and it shows how dangerous the driving is during all of this. Parts of the interstate had to be shut down because of this wall of dust.

Soon on CNN THIS MORNING, President Donald Trump has his big speech before Congress tonight. Elon Musk will be there. What will the president say about him and DOGE?

[06:15:04]

Plus, Jay-Z has a new lawsuit. Why he's the one suing this time.

And good morning, Nashville. You're waking up to lows in the 50s, but temperatures will reach 70 degrees.

(COMMERCIAL BREAK) CORNISH: The Social Security Administration could be next for Elon Musk and his DOGE chainsaw, and he's rattling many of the nearly 70 million people who depend on those monthly checks.

(BEGIN VIDEO CLIP)

ELON MUSK, SENIOR WHITE HOUSE ADVISOR: I mean, the government is one big pyramid scheme, if you ask me.

JOE ROGAN, PODCASTER: Yes, well, you could tell me better than this.

MUSK: Social Security is the biggest Ponzi scheme of all time.

ROGAN: Right. Explain that.

MUSK: Oh, so -- well, people pay into Social Security and -- and the money goes out of Social Security immediately. But the obligation for Social Security is your entire retirement career.

(END VIDEO CLIP)

[06:20:11]

CORNISH: The agency plans to start by slashing around 17,000 [SIC] jobs.

Former -- former Social Security chief Martin O'Malley, who we should note is a Democrat, delivered this warning in an interview with CNBC:

"Ultimately, you're going to see the system collapse and an interruption of benefits. I believe you will see that within the next 30 to 90 days. Ahead of any interruption in benefits, people should start saving now."

Seven thousand jobs. Sorry about that.

So, first. I want to, A, correction: 17,000 [SIC] jobs. But B, I want to ask about the messenger here. Because having it on Joe Rogan is directly injecting it into the veins of the mainstream sort of reporting system.

And is that message going to reach the voters they want it to?

KUCINICH: Well --

CORNISH: Or do they want it to actually? Like, is Elon Musk getting ahead?

MCKEND: I -- I think that this is going to be a political problem for this president and the administration, because --

CORNISH: Just talking about Social Security?

MCKEND: Yes.

CORNISH: Or the Musk jumping in? MCKEND: Both. Both.

CORNISH: Yes.

MCKEND: Both the message and the messenger.

CORNISH: Yes.

MCKEND: Because this is the most politically strong argument that Democrats have. It' s one thing to talk about the threat of a constitutional crisis, or the threat of -- or the erosion of democracy, as we heard Democrats talk --

CORNISH: Yes. More vague.

MCKEND: -- so much about on the campaign trail. But this is your grandmother is not going to be able to access the services that she needs to get her Social Security.

CORNISH: So, you guys, does it work for you to say to said grandmother, listen, Social Security is a Ponzi scheme. That's what Elon Musk says.

WILLIAMS: Yes, look, there are three American values: Mom, apple pie, and not messing with Social Security. And it's the kind of thing that, again, when we talk about these abstract issues all the time, people don't really have their heads around. Social Security is one.

Now, look, that does not change the immense popularity both Joe Rogan and Elon Musk have with -- with a huge swath of the population.

But when you start getting into things that affect people -- getting back to our last segment, there are -- you know, until people start feeling something at their pocketbook --

CORNISH: Yes.

WILLIAMS: -- it's just hard to get their heads around. Social Security is a big --

CORNISH: Jackie, what do you make of this messenger? And the message? Is this someone who's getting out ahead of the president? Is this someone doing it because they want to plant the seeds, and they want to do it within the grass roots?

KUCINICH: So -- but the president has said he's not going to cut Social Security. That has been a key promise.

CORNISH: Yes. More than once. Hold on.

KUCINICH: Yes.

CORNISH: I think we actually have some clips of him doing that on the campaign trail.

(BEGIN VIDEO CLIP) UNIDENTIFIED FEMALE: The spending bill that passed last night aims to cut $2 trillion.

TRUMP: Right.

UNIDENTIFIED FEMALE: Can you guarantee that Medicare, Medicaid, Social Security will not be touched?

TRUMP: Yes. I mean, I have said it so many times. You shouldn't be asking me that question. We're not going to touch it.

(END VIDEO CLIP)

CORNISH: And I was wrong. That was actually just two weeks ago. So, if he goes out and says it, I said it so many times, and then Musk goes out and says, Well, actually --

KUCINICH: Well, I think it was. So, Musk was off-camera there. But Musk's -- Musk's proximity to Trump, to that -- to that power is why this is problematic.

It is -- it is abundantly clear that these two talk all the time. So, if you have someone like Elon Musk, maybe he's off-message, but he's -- I mean, he's the closest -- the proximity he has to power is why what he says on Joe Rogan or anywhere else, for that matter, matters.

WILLIAMS: And the wild thing about the entire DOGE enterprise of cutting trillions of dollars from the government, you kind of can't do it without touching Social Security.

CORNISH: Exactly. Which a lot of fiscal hawks have talked about for a long time.

You know, the other thing I want to bring up in terms of messengers, you know, Pam Bondi, the attorney general, kind of found out the hard way when they released the Epstein files; and Stephen Miller in the White House actually gave all these binders to right-wing influencers.

And then everyone sort of said, what was that? There was nothing in there, and people were angry.

Can you bypass the regular system -- right, media, et cetera -- in the governing phase? It's one thing to do it in the campaigning phase. What's it like doing it now?

MCKEND: That's a really good question, Audie. I guess we will see. They have to keep this channel of communication open with their audience, and they are going to those places. But it isn't the same. You know, people expect results.

CORNISH: Yes, yes. And also, like Andrew Tate coming back to the U.S. Like there's obviously some voices they want to keep energetic and powerful because of their communities.

WILLIAMS: yes. And particularly the Pam Bondi thing. There's some great reporting from Paula Reid and Hannah Rabinowitz here at CNN, just in the last day, about the fact that the Justice Department sidelined its career communications people in favor of this sort of influencer-focused approach that -- that's at odds with how the government does its work.

You need expertise and can't, no matter how popular these folks are, they can't run government.

[06:25;05]

CORNISH: And also tonight, Trump is going to get to issue his message himself directly to the American people.

I want the group chat to stick around.

Up next on CNN THIS MORNING, President Trump ordering all military aid to Ukraine to be paused. What will this mean for their fight against Russia?

And do U.S. gun makers market their weapons to drug cartels? Mexico thinks so. And today, they're going to argue that before the Supreme Court.

(COMMERCIAL BREAK)