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Europe Commits To More Defense Spending After Trump-Zelenskyy Spat; President Trump Casts Doubts On NATO Alliance Defense; California Gov. Gavin Newsom Breaks With Dems On Transgender Athletes; Americans Scrambling AS Egg Prices Rise. Aired 6:30-7a ET

Aired March 07, 2025 - 06:30   ET

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


[06:30:47]

(BEGIN VIDEO CLIP)

JIMMY FALLON, AMERICAN COMEDIAN AND TELEVISION HOST: With Trump's constant back and forth, Americans don't know if our economy is open or totally shut. It's like the whole country is a Toys R Us.

We got a business. No, we're back. Oh, we never what? Oh, rather this one.

(END VIDEO CLIP)

AUDIE CORNISH, CNN HOST: President Trump delays some of his tariffs on Mexico and Canada just two days after putting them in place. Good morning, everybody. It is 6:33 here on the East Coast. I'm Audie Cornish and I want to thank you for joining me on CNN THIS MORNING.

Here's what's happening Right Now. Investors are anxiously waiting for this morning's critical February jobs report. It comes out in just two hours and it could affect already rattled markets. Keep in mind, the numbers out today are not expected to reflect all the job cuts to the federal government in part because of basically the timing of everything.

Tonight, a South Carolina inmate scheduled to be the first person to be executed by a firing squad in the U.S. in 15 years. The Supreme Court, for the state of South Carolina, said that the governor could intervene, but this is the first in the state to choose the firing squad over lethal injection rather than the electric chair.

Meanwhile, Idaho is looking to make a firing squad as well, the state's primary method of execution.

[06:35:00]

President Trump is set to speak today at the first Crypto Summit at the White House. This comes one day after a signed executive order created a new strategic bitcoin reserve. The government has an estimated $17 billion worth of bitcoin.

Turning back now to the rising tensions between the U.S. and its European allies. This week, Western European leaders have scrambled to meet and come up with new plans to rearm the continent and defend Ukraine, potentially without the help of the U.S.

Ukraine's ambassador to the U.K. also cast doubts about whether the U.S. will abide by NATO defense agreements.

(BEGIN VIDEO CLIP)

VALERII ZALUZHNYI, UKRAINIAN AMBASSADOR TO THE U.K.: We can say that in the near future NATO, likewise, can stop existing.

We see that the White House makes steps towards the Kremlin, trying to meet them halfway. So the next target of Russia could be Europe.

(END VIDEO CLIP)

CORNISH: Adding to those doubts, the words from President Trump himself, who's got a history of criticizing NATO alliance members for their defense spending, or frankly wondering if they would stand by their promises.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: If the United States was in trouble, and we called them, we said, we got a problem, France. We got a problem. A couple of others I won't mention. Do you think they're going to come and protect us? They're supposed to. I'm not so sure.

(END VIDEO CLIP)

CORNISH: It's worth noting that NATO's mutual defense clause actually has been invoked just one time in the alliance's 75-year history. And it was for the U.S. after the 9/11 attacks.

OK. I got the group chat back to talk about this week because you had French President Emmanuel Macron speaking very strongly about this thing. We can't really rely on our U.S. ally the way we used to, but I want to play one more clip before we start.

Russian state TV says that Putin has found Trump's weakness.

(BEGIN VIDEO CLIP)

NIKITA DANYUK, MEMBER, PUBLIC CHAMBER OF THE RUSSIAN FEDERATION (through translator): Trump is like Superman, and our President Putin has found his weakness, he tells state T.V. As soon as Trump hears the words rare earth metals, he's ready to accept any terms.

(END VIDEO CLIP)

MICHAEL WARREN, SENIOR EDITOR, THE DISPATCH: Look, I mean, everything we know about Donald Trump is that he views foreign policy as transactionals. Entirely transactional.

CORNISH: But that's been discussed as a strength, I think, by Republicans in some way, right?

WARREN: Right. But it's -- I think they view it as a strength. I think it is certainly upending a viewpoint --

CORNISH: Yes.

WARREN: And some sort of bipartisan people.

CORNISH: I mean, Nikita Danyuk, public -- from the public chamber of the Russian Federation seems to think of it as kryptonite.

JERUSALEM DEMSAS, STAFF WRITER, THE ATLANTIC: Yes. My colleague Olga Khazan, she wrote an article for "The Atlantic" yesterday about how Putin is loving this and she watched, you know, a ton of the Russian state TV.

And you can just see that this sort of breakdown between the United States and its allies, over what? Like with Canada, like what are we even arguing about? It's unclear to even members within this administration when they're trying to defend the policy. And that sort of disarray is like very confusing.

CORNISH: OK. You get extra points for mentioning Canada because then I get to show this. Jack Daniels is down bad in the aftermath of these tariffs. Jack Daniels' parent company He says Canada pulling booze off shells is even worse than tariffs.

TYLER PAGER, WHITE HOUSE CORRESPONDENT, THE NEW YORK TIMES: Yes. I mean -- I mean, I think the question here is just the uncertainty. And I think that pervades every issue. It's the economy that we've talked about with the tariffs. It's the, you know, relationships that the U.S. has abroad and its commitment to NATO.

Trump's injecting that sense of will they, won't they, will we do it, will we not do it is just unsettling to everyone. And I think that's part of the point, right? Trump wants to have leverage over these other countries.

He talks about how he's a dealmaker, as you said, but the question is to what end and what is the end result and what does the U.S. get out of it?

CORNISH: It's fine.

WARREN: I've read liquor sales go up during economic downturns.

CORNISH: They do.

WARREN: This is a real problem for Canada.

DEMSAS: But if you see these --

WARREN: The economy gets worse.

DEMSAS: You see these small businesses in Canada like pulling American-made products off the shelves. It's reignited a sense of Canadian patriotism that I think Trump was surprised by. I think he often expects people to just sort of fold and just acquiesce in order to get, you know, they're worried about losing the U.S. market. It's really jumped off.

CORNISH: And they're not jumping at the 51st state suggestion.

DEMSAS: No. Governor Trudeau is not happy about that title.

CORNISH: Not so much. All right. You guys stay with us. I want to talk about some domestic politics in a minute. We might be getting a preview of what 2028 may look like as Democrats search for a way back to power.

Democratic governor Gavin Newsom of California who could be a presidential contender just broke with his party's stance on transgender athletes. He had conservative activist Charlie Kirk on his podcast when the topic came up.

(BEGIN VIDEO CLIP)

CHARLIE KIRK, AMERICAN POLITICAL ACTIVIST AND AUTHOR: Would you say no men in female sports?

GOV. GAVIN NEWSOM (D-CA): Well, I think it's an issue of fairness. I completely agree with you on that. It is an issue of fairness.

So I revere sports. And so the issue of fairness is completely legit. And I saw that the last couple of years. Boy, did I saw how you guys were able to weaponize that issue at another level.

(END VIDEO CLIP)

[06:40:05]

CORNISH: Now Governor Newsom faces criticism from the left for those comments. The head of the human rights campaign said this, the path to 2028 is not paved with the betrayal of vulnerable communities.

Tyler Pager, Michael Warren, Jerusalem Demsas is -- you're here with me to talk more about this.

I am old enough to remember the ad that ran last year that said Kamala Harris is for they them. And every pundit after, for two months, said that to me over and over again. And I was like, I got it. You think that was the issue? What do you see in this moment that Newsom is taking this step instead?

DEMSAS: I have to say this, people aren't leaving California for Texas and for Florida because of woke policies, because of trans athletes in sports. They're leaving because the cost of housing is too high and they're going to places where the cost of living is actually palatable.

And so to me democratic governor is coming up and like trying to like make news like Gavin Newsom for taking a different stance on these cultural issues, are ignoring the actual important issues that their residents in their states face.

CORNISH: But to tell us that this is an issue that people feel squeamish about.

DEMSAS: But it's easier for someone like Gavin Newsom to get on a podcast and say like he's flip-flopped on this issue after a month of consideration, but it's harder for him to actually make changes to lower the cost of housing in his own state.

CORNISH: OK.

WARREN: I disagree. I think this is, you know, with all due respect to the human rights campaign, like this is exactly what Gavin Newsom should want to do if he wants the 2028 nomination, is to have from the left criticism of him.

Look, any time a candidate or a potential nominee goes against their own party, goes against their own base, Donald Trump knows something about that.

CORNISH: Yes.

WARREN: That's actually good for them in the long term and in the sort of a national political conversation. I think that's clearly what Newsom's trying to do.

Whether people believe it, whether people believe this is somewhat of a, you know, a political pandering to the center, that's another question.

CORNISH: Yes.

WARREN: That's a question about Newsom's own skills as a political operator.

CORNISH: Right. Although --

WARREN: But it's good. It's good politics.

CORNISH: Tyler, I was fascinated he was on a podcast, right? Like you already, you see --

PAGER: Well, this has been Gavin Newsom's thing for a little bit. He had the podcast with Marshawn Lynch. He is very much clearly trying to position himself in that cultural space. And I think that's what's more interesting here.

One of the things that Trump did quite successfully during the 2024 campaign was really immerse himself in cultural venues that Democrats were shut out of. There was a lot of consternation.

CORNISH: Not shut out of. Just haven't been in them. I mean --

PAGER: Well, there's a lot of consternation --

CORNISH: Yes. PAGER: I'm on the Harris campaign about her inability to get on some of the politics light podcasts or the sort of cultural podcasts that did not delve as --

CORNISH: That you have to engage, right?

PAGER: Right.

CORNISH: Like he was wearing no tie. Like that was a different look.

PAGER: Yes, totally.

CORNISH: Yes.

PAGER: And this is something that, you know, we -- as we talked about my book earlier that we really get into about this sort of conundrum here about how Democrats felt. They just totally got outplayed on that issue

And the other thing I think is really interesting is every four years when a party gets out of power, we sort of see this jockeying for what the party stands for.

CORNISH: Who's the leadership? Yes.

PAGER: Who's the leader? And all these people. Clearly, 2028 is going to be a wide open field for Democrats, and there's no clear leader. And so these sort of fights play out.

And one of the things that if you talk to people that worked for Joe Biden in 2020, when he ran for that nomination, as you were saying, they -- you know, it's good to have some of that criticism --

CORNISH: Yes.

PAGER: -- from the left. Joe Biden would argue, you know, the reason he won that primary was because he stayed true to his values in the center of the party.

CORNISH: But even doing this segment, I'm like, I'm going to be doing this segment every two months for the next four years and I'm already tired.

DEMSAS: But I think I'll say this, there's a question about whether the voters are looking for cosmetic changes. Like, do they want your vibe to shift? They want you to say like he said on the podcast?

CORNISH: No. Jerusalem, let me put it another way.

DEMSAS: No. But like, you know, on the podcast --

CORNISH: This week, we were talking about Me Too.

DEMSAS: Mm-hmm.

CORNISH: And activists were talking about Andrew Cuomo coming back. Here you have moderate name recognition, also a little bit of baggage in the harassment department. And she was saying, why aren't they looking for more leaders? And I think there's a world of Democrats who will say, we can't listen to those activists. Their litmus are causing a problem.

DEMSAS: But there's a difference between listening to activists and listening to voters. When you ask voters what your most important issue is, it doesn't even pop. Trans issues are not even close, on Gallup's polling, on Pew's polling. This is just not a thing that pops for voters.

WARREN: This is -- this is the new -- this is the new I would like to have a beer with, you know, is this, is -- I'm serious.

CORNISH: Forgot about that.

DEMSAS: Well, do you believe him? Do you believe him?

WARREN: I think -- it doesn't matter what I think. I think if voters think, oh, wait, he's talking about this stuff in the way that I feel about it.

CORNISH: Which is why you keep hearing this talking point, common sense.

WARREN: Totally. Absolutely. One hundred percent.

PAGER: I think just to jump in here. One of the things about the sort of discussion around the trans issue -- trans issue is it's less about the issue itself than what it means more broadly.

WARREN: Totally.

PAGER: And I think one of the things in conversations I've had with voters is regardless of their own view on the issue, they say, you know, why are people focused on this? There are other things that affect me, to Jerusalem's, point every day that the cost of housing, the economy, the cost of eggs.

And so some of the -- they feel the conversation around this issue is distracting from other things. Whether or not they agree with the governor or whoever on this specific issue, I think that's one of the things Democrats got in trouble with in 2024.

[06:45:09]

And why that ad Trump ran about Kamala Harris was so devastating was because not exactly on the issue itself but what it meant and what it was -- what people were talking about instead of other issues.

CORNISH: OK. We're going to talk a little bit more about this. You guys stay with me.

Straight ahead on CNN THIS MORNING, if you can't afford eggs, get a chicken. Comedian Roy Wood Jr. joins us to discuss that suggestion from the new agriculture secretary and more. Plus, the push to end daylight saving time. President Trump, not so sure he's on board.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

TRUMP: Joe Biden especially let the price of eggs get out of control.

UNIDENTIFIED MALE: We decided to sell loose eggs, you know, like this package. Three that three -- 2.99 for these three eggs.

[06:50:03]

BROOKE ROLLINS, U.S. SECRETARY OF AGRICULTURE: And people are sort of looking around think wow, well, maybe I could get a chicken in my backyard and it's awesome.

UNIDENTIFIED MALE: What the (BLEEP) happened to the eggs?

(END VIDEO CLIP)

CORNISH: OK. There are some stories that, honestly, I can't take on myself. And there's something's going on and I need a friend and I'm bringing on a friend, Roy Wood Jr. Comedian and host of CNN's "Have I Got News for You." And, Roy.

ROY WOOD, JR., COMEDIAN: Good morning.

CORNISH: Good morning. I need your help. I see your face. Is it because of the egg loosies?

WOOD JR.: Why are we selling eggs like cigarettes now is --

CORNISH: Yes.

WOOD JR.: -- the question. But, you know --

CORNISH: -- I can't --

WOOD JR: -- this administration is not going to address this anytime soon. Eggs are a midterm issue. That's just --

CORNISH: Yes.

WOOD JR.: -- something we can blame on Joe Biden and the previous administration.

CORNISH: No.

WOOD JR.: I'm too busy.

CORNISH: Well, I mean, eggs, of course, it's because of the bird flus.

WOOD JR.: Because Zelenskyy, when he come into my house.

CORNISH: So, are you going to get chickens?

WOOD JR.: No, because then the price of chickens is going to go up. Like there's no solution.

CORNISH: Fair. Fair. Because tariffs.

WOOD JR.: Just how been eggs.

CORNISH: Just stop. OK. Roy, I'm going to ask you another question. OK? This one is about DOGE, Elon Musk. We've talked all week about the courts, about like the mass firings, but one of the sort of quirky, I'll say aspects of this is a political reporting that some of the people who are working for DOGE are basically setting up like home spaces in government offices so that they can be there all day like -- and they're shopping at IKEA to do it.

WOOD JR.: I mean, don't you kind of want employees that'll burn themselves out so that they eventually quit and then stop doing their job and then DOGE shut down? Everybody at DOGE. Let them work 60 hours, put a mattress in the middle of the room.

CORNISH: You're not here.

WOOD JR.: What I love about DOGE and everything that's happening now is all these companies that are starting to stand up to them and like offices are just like, no, you can't come in. And then DOGE is like, well, if you don't let us in, we can't fire you. How are we going to fire you if you don't let us in? Exactly. You can't come in. Please come tomorrow. It's beautiful.

CORNISH: It's -- yes. It's sort of -- I feel like we're it's, at that point, you're in a political cartoon.

WOOD JR.: Yes. I think that everything that's going on with that office, it's going to be one big, you know, reflection in a couple of months. I mean, at this point, DOGE -- only people going to be left to fire is themselves.

CORNISH: People are talking a lot about what Democrats should do, especially the Democratic Party, how should they sort of stand up to the administration.

I need you to process this with me. Democrats doing the "choose your fighter" meme on TikTok. You had a variety of lawmakers participate in this. I think we have a clip.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Choose your character.

(MUSIC)

(END VIDEO CLIP)

CORNISH: OK. I heard you sigh as we started to play the clip. Gamers know what this is about, but I think other people were a little bit like, why? What's your reaction?

WOOD JR.: I just thought it was late. I think that was the main thing on the "choose your fighter" thing. I think October, when people were engaged and wanting to vote, might have been the move.

It made no bones about it. You got to have the Democrats making memes out in the hallway. You got the other half making signs and taking to the chambers, and you got the rest of them voting to censor the ones who were doing the aforementioned.

I don't think that this is the most effective way to show people you're willing to fight. But it makes me appreciate the ones who made signs and turned their back and walked out the chamber and protest. Like that to me was much more reasonable protest behavior and government bad.

Like I don't know. It's just every time I see a politician doing something that kids was doing four years ago, it just, it always is awkward.

CORNISH: You know, with "Have I Got News For You," I feel like you make an effort to -- you're always trying to find the humor in current events, right? You're trying to find those unserious moments. And I think you're very good at smuggling in the serious into that.

But talk about like how -- it's hard actually to tap into the culture. And I was actually shocked to see, you know, some of the younger lawmakers do this where it felt like a tiny bit dated.

WOOD JR.: I think -- I think the issue is that politicians, I think, have to realize that you are kind of to a degree, you're always going to be on the outer fringes of the culture. So no matter how cool, hey, you got, you always going to come across as the cool substitute teacher, no matter what.

[06:55:05]

And we don't want you to be cool. We just want you to make a couple laws and stand up to the people that's doing stuff crazy. Like that would be much more -- that would be much more well received. Like if you look at last week when Jasmine Crockett was asked about Elon Musk and she told him to F off.

Like to me, I'm like, oh, OK, I bet she walking around in that building telling people about themselves. I don't mind that.

But it just, like, how many people in this video do you think legitimately knew what they were doing versus somebody just saying, hey, do me a favor. Just jump like you fell out the sky and then just start doing a move on a loop so we think that you are character in Mortal Kombat we're choosing. Yes.

CORNISH: Yes. Walking a line. It's tough. Roy Wood Jr., thank you --

WOOD JR.: Yes, yes. It's tough.

CORNISH: -- so much for chatting with me.

WOOD JR.: Yes. Indeed, indeed. I'll see you Saturday night, and I'll see you on Max the day after.

CORNISH: Exactly. We want all of you to catch the new episode of "Have I Got News for You." That's tomorrow night, 9:00 PM Eastern and Pacific, right here on CNN.

It's 55 minutes past the hour. Here's your morning roundup, some of the stories you need to get your day going. Walgreens going private in a deal that's volted -- that's valued at more than $23 billion. This will end nearly 100 years as a publicly traded. Walgreens has closed hundreds of stores, just like some of its rivals.

And there may be a possible second measles death in the U.S. This one is in New Mexico. Health officials say the unvaccinated person tested positive for measles, but doctors do not have an official cause of death yet. The first measles death was reported in West Texas.

Now, also, if you are tired, just wait until Sunday when you lose an hour of sleep. This weekend our clocks spring forward one hour. So should the U.S. get rid of daylight saving time? President Trump, not so sure.

(BEGIN VIDEO CLIP)

TRUMP: I assume people would like to have more light later, but some people want to have more light earlier because they don't want to take their kids to school in the dark.

(END VIDEO CLIP)

CORNISH: In December, Trump said his party would, quote, use its best efforts to eliminate the time changes.

And what kind of music does the king listen to? I guess it's Kylie Minogue.

(BEGIN VIDEO CLIP)

(MUSIC)

(END VIDEO CLIP)

CORNISH: On Monday, DJ Charles, I mean King Charles, takes over Apple's airwaves with a broadcast and a new curated playlist, a mix of genres across decades including Kylie Minogue, Bob Marley, and Ray.

(BEGIN VIDEO CLIP)

(MUSIC)

CHARLES III, KING OF THE UNITED KINGDOM: So this is what I particularly wanted to share with you. Songs which have brought me joy.

(END VIDEO CLIP)

CORNISH: The playlist drops Monday for Commonwealth Day.

Did you feel the bop? Did you feel the energy?

WARREN: Oh, yes. That's --

CORNISH: He was giving DJ.

WARREN: Kylie Minogue is like perfect King Charles music.

CORNISH: Yes, that's true. That's classic U.K. music.

OK. I want to talk about what we're actually going to be keeping an eye on over the next couple of days to give people a sense of like what's the thing we're watching.

Tyler, can I start with you?

PAGER: Yes. One of the things I'm watching is what happens with the Trump-Elon Musk relationship.

CORNISH: Just the relationship.

PAGER: Yes. And sort of his role in the government. Yesterday, we saw the president host a cab -- meeting with cabinet officials and Elon Musk saying, you know, you guys are in charge, not Elon Musk, and then put out a post on Truth Social saying that he wanted the, you know, the effort -- the government firings to be done with a scalpel, not a hatchet.

Some implicit sort of criticism there of how Musk has been going about his work. There's been a lot of interest in how long this relationship between the president and the world's richest man will last.

We see some early potential fissures, but, you know, these relationships change all the time. So we'll see what happened to the --

CORNISH: Yes. I feel like you're keeping eye on is also the same for many attorneys who are currently suing the administration. Mike Warren.

WARREN: The markets. I want to see what they're doing. I know President Trump says he doesn't watch the markets. I don't really believe him. I think he is watching it.

CORNISH: Well, you watch the markets, Mike Warren.

WARREN: I'm watching it for him.

CORNISH: OK? Yes.

WARREN: He can call me if he wants to know what's happening. I want to see how they close today and -- because look, if the economy continues to go in the direction it's going, no reason to think it will or won't, that puts a real break on a lot of the things that Donald Trump has been doing in this --

CORNISH: Yes. Plus, we got the jobs report at 8:30 this morning.

WARREN: Exactly.

DEMSAS: Yes. Similarly, economic. I'm focused on what's going on --

CORNISH: You nerds.

DEMSAS: -- with tariffs.

CORNISH: Come on.

DEMSAS: I mean, that's -- I mean --

WARREN: I think it's not bothering you.

CORNISH: Yes. I guess that's where it's at. That's where it's at.

DEMSAS: Like the tariffs news, it changes every hour. It's dramatic.

CORNISH: No.

DEMSAS: You never know what's going to happen. And I think it's really important to keep an eye on these kind of day-to-day changes because if you're really in the know and plugged in like us, you're following this sort of thing.

But that chaos is really, really difficult for, you know, smaller businesses to keep track of and how it's going to change their outlook.

CORNISH: Yes. To your point, I'm going to be looking for reaction. We will see more people speak out, whether they be small business owners, maybe they be lawmakers. I'm kind of curious where you start to see that appear.

I want to thank you guys for waking up with me, having such a good time chatting. I'm Audie Cornish. And stay with us because CNN NEWS CENTRAL starts right now.