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Tariffs Spark Looming Trade War With Canada, Mexico, And China; CNN Speaks To Mayor Of Canadian Border Town; Kagame: " Don't Know" If Rwandan Troops Are In DRC. Aired 10-11a ET
Aired February 03, 2025 - 10:00:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[10:00:24]
ANNOUNCER: Live from CNN Abu Dhabi. This is CONNECT THE WORLD WITH BECKY ANDERSON.
BECKY ANDERSON, CNN INTERNATIONAL ANCHOR: And this is our second hour of the show. Welcome. I'm Becky Anderson in Abu Dhabi with the time is 7:00 in
the evening. It is 10:00 a.m. on the East Coast of America.
U.S. President Donald Trump, announcing tariffs on Mexico, Canada, and China at the weekend, causing an upheaval of global reaction. Mexican
president, Claudia Sheinbaum is going to speak any minute now, and we will bring you those comments live when they happen.
Showing a united front and a strong sign of friendship, Israeli Prime Minister Benjamin Netanyahu is in Washington, where he will meet with
several White House officials, including a meeting with Mr. Trump on Tuesday. This will be the U.S. president's first face to face meeting with
a foreign leader since taking office.
Well, a shocking moment at the Grammys. Singer, Kanye West and partner Bianca Censori made a jaw dropping appearance on the red carpet. Reason,
while it was her sheer attire, and we'll get you the details of what happened in Los Angeles.
Well, experts have warned all along, if Donald Trump's tariff threats become a reality, these tariffs will send shock waves through the American
economy.
Now, as United States careens toward a trade war, consumers and businesses bracing for the impact, U.S. market, stock markets, and currency markets,
of course, with open for about a half an hour now, and these -- this is the picture on the stock markets.
I have to say, the NASDAQ clawing back some of its losses, but all of those markets down more than one percent, more than one and a quarter percent.
You can see the NASDAQ down nearly two. The tariffs due to take effect hours from now on Tuesday, affecting goods from Canada, Mexico, and China,
and they are expected to have a major impact on supply chains and prices.
Even the U.S. president admits the possibility of some economic pain, but he insists it will be worth it in the long run. More, Vanessa Yurkevich is
back with us at this hour.
Vanessa, there is considerable concern about the economic impacts of these tariffs. Let's just start there. Just explain in practice, how these
tariffs will work, and how they might impact the U.S. economy.
VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Right. Let's take the example of a 10 percent tariff on China. When the U.S. imposes a
10 percent tariff on China, products that come in from China that are then imported into the United States face a tax or a tariff, and ultimately, the
U.S. businesses that are importing those goods end up paying that tax or that tariff, and then they ultimately have to decide, well, who does that
added tax or tariff get passed down to?
Some companies can absorb the cost, but a lot of companies can't, and ultimately, that tariff or tax gets passed down to you, the consumer, and
that is how tariffs work across the board, not just with the United States and Mexico, and Canada, and China, but any other country that has a tariff
on another country.
So, ultimately, while President Trump believes that this is a good tactic, tactic to stem the flow of fentanyl into the United States and to deal with
immigration at the -- ultimately, the U.S. consumer right now is going to be picking up the bill for his plans. Becky.
ANDERSON: Why is he doing it?
YURKEVICH: Well, as I mentioned, he is trying to draw a hard line in the sand with these countries. He wants to make sure that Mexico and Canada are
doing their part to stop what he says is the illegal flow of immigration into the United States.
And with China, he believes that they are responsible for the fentanyl crisis happening here in the United States. And so, the president believes
that tariffs are the way to get these countries to cooperate.
However, we have not heard from President Trump really, a real outline or any goals that these countries need to meet in order for him to pull back
these tariffs. We know that the president is going to start having a conversation with the leaders of Mexico and Canada today to, I guess,
listen to them about what they have to say, so, these tariffs don't go into effect.
And you see, many of the products that are going to be impacted. From Mexico, fruits and vegetables, cars. From Canada, grain, livestock, lumber
to build homes here in the U.S. We have a housing crisis, not enough homes for people, and that is going to raise the price of homes for everyday
Americans.
[10:05:06]
And then, from China, electronics and shoes. Huge, huge part of what we import in the United States comes from China, for those two products,
specifically, Becky. And then, of course, what happens there are retaliatory tariffs.
Canada has already announced a 25 percent tariff on certain items that are going to be coming -- that are going to be going out of the U.S. into
Canada. We are waiting to see what Mexico says, waiting to see what China says.
But just look at those photos, right there. Just a huge amount of products. $1.4 trillion worth of products coming into the United States from these
three countries that at 12:01, Tuesday morning here in the U.S., those are going to be hit with tariffs. Unless, unless something changes at the last
minute. But President Trump, Becky, has signaled that he's moving forward with these.
ANDERSON: Yes. OK. Well, we are getting some talk that he may be prepared to step away from these threats because of some, "positive" conversations
that were had over the weekend, but that remains to be seen at present, as we are reporting now. These are still threatened, as you say, for 12:01
a.m. on Tuesday. Thank you for that.
The relationship between Canada and the United States deteriorating rapidly. Then, Prime Minister Justin Trudeau and President Trump spoke once
already this morning, and they are set, we are told, to speak again in the coming hours.
That's according to a post on Mr. Trump's truth social account, where he also lashed out, saying, "The U.S. pays hundreds of dollars to subsidize
Canada," and repeating his call for Canada to become the 51st state. He claimed that would mean, "much lower taxes and far better military
protection for the people of Canada and no tariffs!" He said.
Well, that message, as you can imagine, is all going down very well inside the country. Have a look at this reaction to the U.S. national anthem at an
NBA game in Toronto over the weekend.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Oh, say, can you see? by the dawn's early light.
AMERICAN CROWD: Boo!
(END VIDEO CLIP)
ANDERSON: Well, that's the national anthem getting booed.
Well, my next guest is the mayor of Sarnia, the Canadian city that sits across the border from the border -- from Port Huron in Michigan. Sarnia is
an energy hub with transnational -- 26 transnational oil and gas pipelines. United States imports some 4 million barrels of Canadian oil per day.
As we've been discussing, those energy imports will now be subjected to a tariff of 10 percent imposed by Mr. Trump.
Mayor Mike Bradley has likened the rift between the U.S. and Canada to a failing marriage.
He joins us now live from Sarnia. A failing marriage, sir. I mean, did you ever expect, and it's been a pretty rocky relationship between the now-
president -- U.S. -- the U.S. President Donald Trump and Justin Trudeau, the outgoing prime minister. But did you imagine we would have got to this
point in the first week of February?
MIKE BRADLEY, MAYOR OF SARNIA, CANADA: No. No, not at all. We've been through the first Trump administration, and we managed to get through
tariffs then and survive, and he signed an agreement, which dealt with the issue.
What's happening now is remarkable. That clip you played about the booing at the Raptors' game, that is not Canadians. We don't do that. We can't
even recall that ever happening before. But the anger within the country with ordinary Canadians, we're being disrespected.
And just keep this in mind, we were into the First World War and the Second World War before the Americans were. We stood by them. We had that longest
undefended border.
And what does Trump do with this vexatious dribble that he's spouting by the minute, he has targeted his best ally and along with Mexico. So, my
message to the world would be this, get ready, because if he treats his best allies this way and plays mind games with them on a daily basis, then
you're -- it's your turn next.
ANDERSON: Have you been impressed by the way the Prime Minister Justin Trudeau has responded, has conducted himself in all of this. Just have a
listen to what he said over the weekend.
(BEGIN VIDEO CLIP)
JUSTIN TRUDEAU, PRIME MINISTER OF CANADA: There are many ways for you to do your part. It might mean checking the labels at the supermarket and picking
Canadian made products. It might mean opting for Canadian rye over Kentucky bourbon, or foregoing Florida orange juice altogether.
(END VIDEO CLIP)
ANDERSON: How do you think he's -- how do you think he is doing?
BRADLEY: Well, for that moment, he rose the occasion. But I need to put it in perspective. The prime minister is leaving because he could not keep the
support of his own party, and he had lost the support of the country.
But for this moment, it was a very brief shining moment where he spoke on behalf of Canadians, and did it very well.
[10:10:09]
ANDERSON: You've talked about the sense of disrespect that Canadians feel about this whole affair. What about the very specific impact, economic
impact that these tariffs will have. Let's start with your city.
BRADLEY: Well, it's going to have tremendous impact as an energy hub. We also are great producers of agriculture that goes to the U.S. We're also
tied into the automotive sector, which is a big part of the Ontario and Canadian economy.
And you know, part here in Michigan, as just across the river here from us, we've had a great relationship over the years, and people go back and forth
on a daily basis. People work over there and they work over here. That's all falling apart.
And even if Trudeau and Trump reached some sort of agreement today, he'll be back again at us. He, anytime he sees, you know, the weakness of any
country or any leader, he goes at it and he keeps at it.
And this has not been good for America. And as you pointed out at the beginning of this with that other interview about tariffs, the losers in
that tariff war everyone loses, but Americans are going to lose big time.
But if you know Trump and how he operates, we will blame everyone else for those impacts on inflation, gas prices, and food.
ANDERSON: Let me just put this to you. He has said that these countries, and he puts Canada and Mexico in these countries, plus many, many others,
he says, have been ripping the U.S. off for years. He believes he gets a raw deal out of Canada to which you say, what?
BRADLEY: Well, I point out to the almost 200 Canadians that died in Afghanistan, fighting alongside the Americans. I point out to the energy
every day that flows from Alberta and from Sarnia into the U.S. to make that economy work. And there's a long list. There are -- there are
firefighters from Canada in California right now helping there. And when the 911 happened, who was the first country that stood up? It was Canada.
So, he's got amnesia, which is very convenient. And on the fentanyl drug issue, the fentanyl flowing from the Canadian border across the U.S. is
very, very low compared to the Mexican situation. But it's being dealt with, and it has been dealt with.
We have a bigger issue here with guns being smuggled into Canada from the U.S. I don't hear him talking about that at all.
ANDERSON: It's good to have you, Mayor. Thank you very much indeed. Your perspective is crucial. A big energy hub there on the other side of the
U.S. border, sitting on the Canadian side of the border. The mayor from Sarnia, joining us today, explaining just our impactful -- this decision by
Donald Trump has been not just the economic impact, but the personal and emotional impact this is having on Canadians as well.
It's good to have you, sir.
Mexico's president says dialog, not confrontation, is what is needed to resolve the issues behind President Trump's tariffs. But Claudia Sheinbaum,
says Mexico is poised to respond with both tariff and non-tariff measures in defense of her country's interests, and she is expected to reveal what
is Plan B. Those measures in the coming hours.
Well, CNN en Espanol's Valeria Leon is back with me this hour from Mexico City.
These tariffs, this looming trade war. From the perspective where you are, is there any hope that this can be averted at this point?
VALERIA LEON, CNN EN ESPANOL CORRESPONDENT: Hi, Becky. It seems uncertain.
We're just a few minutes to the Mexican president, Claudia Sheinbaum, to unveiled Mexico's response to the Trump administration tariffs. And that's,
as you said, what her government called Plan B.
We just know that it includes implementing tariff and non- tariff measures to defend Mexico's interest. So, she is about -- the conference is about to
start, and there, the Mexican government is going to present exactly what are the products that are going to be included in these tariffs, and this
is signaling what looks like to many, like a beginning of a trade war between the two countries, nevertheless, Sheinbaum said her government
sought dialog, rather than confrontation with its northern neighbor.
Mexico's Economic Minister Marcelo Ebrard, called Trump's tariffs a flagrant violation of the United States' free trade agreement with Mexico
and Canada. And that's because the tariffs against Mexico -- and trade back -- that dates back three decades integrating industry across North America.
But this imposed tariffs and this trade war between the closely connected neighbors threatened to deeply disrupt the economies of Mexico and to dry
up consumer prices in the U.S.
So, Becky, analysts said that the tariffs imposed by Mexico's biggest trade partner would deal a heavy blow to the Latin America's second largest
economy, with tariffs taking effect on Tuesday.
[10:15:01]
It's still unclear if there will be a last-ditch effort to negotiate a deal with the United States' biggest trade partner. Becky.
ANDERSON: Just before I let you go, let's just talk about this relationship between Mexico and the US. Because it is -- on a trade basis, it has grown
significantly over the years.
It was back in the early 90s that the -- that Clinton cut the first NAFTA deal, as it was known, Trump sort of repurposed that back in 2017. We're
talking about everything, from parts for the auto industry, and other big manufacturing industries. To farming to massive volumes of crude oil, gas,
and natural gas.
These are two countries that you could argue depend significantly on each other in a myriad of ways. The perspective there from Mexicans, whose lives
will be impacted, should these tariffs be imposed, must be significant.
We heard from the mayor in a small town in Canada. Let's just, you know, finally talk about how Mexicans feel about this whole saga.
LEON: Well, Becky, some of them are surprised, some of them are angry, because they feel not -- first, it came the mass deportation promise. So,
and deporting Mexicans to the U.S. Mexico border.
And after that, these tariffs imposed on Mexican woods. Mexicans here are worried, are concerned about what's going to happen. So, the Mexican
government is about to present this plan B, as I just said, and the Mexican president has expressed, you know, the way that Mexico is facing this
crisis. They are starting to see this as a crisis, this trade on tariffs, as -- is a flagrant violation. That's the way the Mexican government is
portraying this trade war with the United States.
And they are also concerned about this violation of the United States free trade agreement with Mexico, and that's because the tariffs against Mexico
opened a train pack that dates a long time before. Becky.
ANDERSON: Well, we are likely to hear from Sheinbaum today. Many of our viewers will remember the last time that she very visibly spoke in response
to Donald Trump. She was standing with a map behind her, of course, talking about the threat that he made to change the name of the Gulf of Mexico to
the Gulf of America.
He is absolutely intent on doing that, as well. And as you rightly point out, a lot going on with regard immigration as well, as tough times in this
U.S.-Mexico relationship at present.
Good to have you there in Mexico City. Thank you very much indeed for joining us.
President Trump also threatening to increase tariffs on E.U. nations. European leaders say they are preparing possible responses. But for now,
want to wait and see what Mr. Trump does next.
(BEGIN VIDEO CLIP)
OLAF SCHOLZ, CHANCELLOR OF GERMANY (through translator): We will, of course, also talk intensively about cooperation with the United States of
America, both the USA and Europe benefit from the exchange of goods and services. If customs policy now makes this difficult, it would be bad for
the USA and bad for Europe. It is clear that as a strong economic area, we can organize things ourselves and can also react to customs policy with
customs policy.
(END VIDEO CLIP)
ANDERSON: Well. a top E.U. official says that if the tariffs take effect, the biggest winner out of all of this, maybe China. Have a listen.
(BEGIN VIDEO CLIP)
KAJA KALLAS, E.U. HIGH REPRESENTATIVE FOR FOREIGN AFFAIRS: We were listening carefully to those words, and of course, we are preparing also on
our side. But what is clear, there are no winners in trade wars. If United States and the U.S. start the trade war, then, the one laughing on the side
is China. We are very interlinked. We need America, and America needs us as well. The tariffs increase costs. They are not good for the jobs, not good
for the customers either. That is clear.
(END VIDEO CLIP)
ANDERSON: Well, Europe -- what Europe will do next is unclear. Another senior diplomat says it's hard to plan out strategy involving someone who
is, "totally unpredictable".
All right, now, U.S. Secretary of State Marco Rubio is on his way to El Salvador. He departed Panama last hour. He spent Sunday reiterating
President Donald Trump's warning of powerful U.S. action if Panama does not take steps to end China's influence around the Panama Canal.
The president there said his country would not renew a key deal with China when it expires, and would work with the U.S. on new investment.
[10:20:00]
CNN's Patrick Oppmann is following all of this from Havana, Cuba.
The U.S. Secretary of State Marco Rubio, in the midst of his first international trip as America's top diplomat, and he has chosen this region
for that mission. Clearly, that is a significant focus for him. And what did he achieve, ultimately, in Panama?
PATRICK OPPMANN, CNN CORRESPONDENT: Well, he is walking away with important concessions. You heard the Panama's president, Jose Raul Mulino, said they
will not continue to take part in China's Belt and Road Initiative. And you would think that would be enough of a win to lower tensions, which is
really what Panamanians were hoping.
The Panamanians are absolutely surprised to be threatened by their key ally, the United States over what the U.S. is calling, you know,
exaggerated Chinese influence in the Panama Canal.
But of course, you know, what Donald Trump has said is just not based in fact that there's somehow a Chinese military outpost or presence in
Panama's canal, and that is something that Panamanian officials have denied, and there is simply at this point no evidence of.
So, they were hopeful when Marco Rubio came to Panama, the diplomacy could prevail by sitting down, by showing him that Panama Canal, something that
if China actually did control, would not seem to be possible, and then, offering these key concessions that they would be able to -- they be able
to, you know, move forward, and that does not appear to have happened.
Once again, it -- you know, Marco, Rubio, Donald Trump, threatening Panamanian officials over what they see is Chinese influence in the canal.
And so, we'll see where this goes from here, Becky.
ANDERSON: It's good to have you on man in Havana. Patrick Oppmann.
Well, our headline, of course, is this U.S. looming trade war with three countries at present. I'll speak soon as business editor-at-large, Richard
Quest about whether he thinks the U.S. will hold off on those sweeping tariffs, meant to go into effect on Tuesday.
And DRC accuses its neighbor, Rwanda, of equipping the rebels into major city of Goma last week. CNN sits down for an exclusive interview with
Rwanda's president. That is coming up.
(COMMERCIAL BREAK)
ANDERSON: United Nations experts believe that thousands of Rwandan soldiers are in the eastern Democratic Republic of Congo, supervising and supporting
what are known as the M23 rebels there.
Congolese city of Goma fell under rebel control a week ago. Now, in an exclusive interview with CNN, Rwanda's president says he doesn't know if
his country's troops are inside the DRC.
CNN's Larry Madowo is in Rwanda's capital of Kigali.
[10:25:02]
You've just conducted that exclusive interview with the Rwandan President Paul Kagame. You asked him if Rwanda troops were in the Democratic Republic
of Congo. He says he doesn't know. Can you just explain a little further what the president told you?
LARRY MADOWO, CNN INTERNATIONAL CORRESPONDENT: Becky, it's extraordinary to hear that from President Paul Kagame, who asked directly if there are
Rwandan troops in the eastern part of the Democratic Republic of Congo? He says he doesn't know.
This is despite the U.N., the G7 countries, the Southern African Development Community countries, and every other international community
member saying that there are 3,000 to 4,000 Rwandan troops in the eastern DRC.
President Kagame considers that there is an existential threat to Rwanda in the eastern DRC. They are called FDLR. They are perpetrators of the
genocide here who escaped about 30 years ago to eastern DRC and are on a mission to try and overthrow the government of President Paul Kagame. That
is part of the context for this current conflict.
Listen to President Kagame.
(BEGIN VIDEO CLIP)
PAUL KAGAME, PRESIDENT OF RWANDA: I don't know.
MADOWO: You're the commander in chief.
KAGAME: Yes, there are many things I don't know.
But if you want to ask me, is there a problem in Congo that concerns Rwanda, and to that, Rwanda would do anything to protect itself, I say, 100
percent.
(END VIDEO CLIP)
MADOWO: And so, what President Kagame is essentially saying is that there is that threat coming from the eastern part of the DRC that needs to be
addressed and needs to be addressed immediately, and Rwanda will do anything to protect itself.
He also said that this problem was not caused by Rwanda, but was caused by the Democratic Republic of Congo, and it is Congo's business to address.
He essentially says that President Felix Tshisekedi of the Democratic Republic of Congo, has to sit down with the M23 rebels and figure out a
political solution to the crisis there, and blaming Rwanda will not solve that problem.
He also did criticize South Africa. South African troops are in the eastern -- in the eastern DRC as part of the Southern African mission to DRC to try
and stabilize the region. He says the South African troops are there to secure the minerals. This is a mineral-rich part of the country, one of the
largest deposits of coltan in the world, iron ore, and gold, and others.
And part of the accusations has been that Rwanda has been taking in smuggled minerals from the eastern DRC, and exporting them under Rwanda.
President Kagame thinks that's complete nonsense. And there are coltan departments here in the country.
So, all together, an extraordinary moment. Becky.
ANDERSON: Yes. And an extraordinary interview, and our viewers will get more of that in the hours to come.
Larry, it's good to have you live from Kigali. Thank you.
Well, let's get you up to speed on some of the other stories that are on our radar right now.
A Russian missile strike hidden apartment building in central Ukraine over the weekend, killing 14 people. Inside Moscow, lashing out over an attack
on a former boarding school. The Russian military blamed Ukraine, also, calling it a war crime.
A car bomb has killed at least 15 people in northern Syria. The explosion happened in Manch and mark the deadliest attack since the fall of Bashar al
Assad's regime. 15 others were wounded.
Officials say the attack targeted people in a vehicle on their way to work. So far, no one has claimed responsibility.
Spanish football star Jennifer Hermoso testified that an unwanted kiss from Luis Rubiales, tainted what was the happiest day of her life.
A sexual assault trial has started for the former president of the Spanish football association. He is, of course, charged for the unsolicited kiss
after Spain's World Cup win in 2023.
You're watching CONNECT WORLD. I'm Becky Anderson for you live from Abu Dhabi, where the time is just before half past seven in the evening.
Still to come, a mayor in the Israeli occupied West Bank tells CNN, that's what's happening there resembles the war in Gaza. We have the latest on
Israel's operation in Jenin.
And key talks for the next stage of Gaza cease fire deal were to begin to date. Why there is no sign of those talks, as Israel's prime minister lands
in Washington?
(COMMERCIAL BREAK)
[10:31:56]
ANDERSON: Welcome back. You're watching CONNECT THE WORLD with me, Becky Anderson. Time here half 7:00 in the evening in Abu Dhabi. Your headlines
are as follows. Very soon, Mexico's president is set to announce retaliatory tariffs against the United States following a similar move, of
course by Canada. Both countries responding to U.S. President Donald Trump's move to slap 25 percent trade tariffs on imported goods sees.
Also hiking tariffs on Chinese imports by 10 percent. Right now, salvage crews are in the Potomac River removing wreckage at the side of the
deadliest U.S. air disaster in more than 20 years. The remains of 55 victims have now been recovered from the river while the search for the 12
remaining victims is ongoing.
Israeli Prime Minister Benjamin Netanyahu is in Washington meeting U.S. Middle East envoy Steve Witkoff, before he has talks with Donald Trump,
scheduled for Tuesday. The trip coincides with the deadline for starting talks on the next phase of the Gaza ceasefire deal, but as well as yet to
unveil a negotiating team.
The Trump administration has been in conversation with Canada, Mexico and China, ahead of sweeping tariffs set to go into effect at midnight Monday
into Tuesday. The White House economic adviser describing the conversations as positive and left the door open to canceling them, though President
Trump has continued to lash out at both Canada and Mexico on his Truth Social account today.
Well, U.S. markets been open for just over an hour now. And look, it's messy, but it's not nearly as messy as it might have been. The U.S. dollar
has been up against both the Canadian and Mexican currencies. We've seen oil prices a little bit higher. They don't like the kind of idea of tariffs
on oil coming out of Canada, but these markets not as bad as they might have been. Even Mr. Trump admits there could be some economic pain, but he
insists it will be worth it in the long run.
CNN's Business Editor-at-Large Richard Quest watching all of this closely for us. He joins me now live. Now about you I did -- I have to say I did
expect these markets to be a little lower than they were at the opening today. We've got a little over 12 hours, Richard, before these tariffs are
meant to go into effect. How do you believe this is all going to play out?
RICHARD QUEST, CNN INTERNATIONAL ANCHOR: I think the tariffs will come into effect, if only because I'm not sure what the Canadians could offer. Donald
Trump has said this is all about the amount of fentanyl coming in. Well, only 48 pounds of fentanyl was ever picked up over the Canadian border.
Almost a fraction of immigration comes north to south on the border. In fact, arguably, in many ways, the Canadians have more to worry about with
immigration going the other way.
So, I'm not sure what they can offer that would satisfy because the President has put himself into a corner. You know, if you look at the
Colombia (INAUDIBLE) car last week, that was over and done within a day or so.
[10:35:01]
But Mexico is not going to roll over on this occasion. And I think it's going to be more difficult to find that middle ground that would allow the
President to save face and reduce the -- or remove the tariffs for the time being.
ANDERSON: Yes. You make a very good point. I was just speaking to the mayor of a small town just over the Canadian border, but it's got an enormous
amount of energy infrastructure there. Much of what is, you know, what is going south comes through his town. And he said they are more worried about
guns being imported into Canada from the U.S. than Trump should be about fentanyl going south.
Look, as we speak, as I understand it, the Mexican president is about to speak. We have heard one of Trump's advisors speaking today suggesting --
hold on a minute, suggesting that, you know, this may not all pan out. There have been some positive conversations to be had gone.
QUEST: Right. OK. I'll take that point, yes, but the uncertainty it's generated, this is children in the playground throwing out the toys out the
pram. You don't need -- this is not an adult way to do trade policy, threat, counter threat, counter threat. And then somebody says there could
be a positive. Meanwhile, every business has been up in arms and worried and anxious, and the adjective levels have gone through the roof.
This is no way to run a railroad, as they used to say in the West. I think the other point is, look at the range now of countries. So, we had the
Colombia (INAUDIBLE) last week. You've got Mexico, Canada this week, you have South Africa threatened on Sunday, the E.U. almost certainly will have
tariffs according to the president. He's going to play the U.K. off against the E.U. on the question of tariffs.
And we haven't even dealt with Greenland and everything else yet. I just wonder how much the economic system will take before people just say, I'm
not having it and just don't invest.
ANDERSON: Yes. That's a really, really good point. I mean, you and I have been around long enough to know that these trade rules through the World
Trade Organization that pretty much countries play to have been in place since 1995. And sometime before that, it's been 30 years that there's been
a system out there for this world economic order, which has meant that there has been an opportunity for countries to do business with each other.
And this is a man just upending. So, I absolutely get your point. I totally get your point. And I just wonder what needs to be said in these phone
calls between the U.S., China -- the U.S. and Mexico, U.S., Canada, at this point that might actually stop things.
QUEST: Nothing more than a genuflection and a capitulation probably will get the president to delay. But if you take exactly your point for the last
30 years, the whole thing of Canada, Mexico and the U.S. has been this. NAFTA first, USMCA (INAUDIBLE) that's been the goal. So, you have a
frictionless, borderless, free trade area where goods go backwards and forwards. What we've got today is this.
And that is the problem that you've got with this border now. You have reversing 30 years of policy, probably illegally, by the way, but nobody
knows how to respond in that environment and global trade is fragile. Look at your part of the world.
(CROSSTALK)
ANDERSON: Let me just get you. Yes.
QUEST: Go on.
ANDERSON: It -- yes. Let me just get you this as you've been speaking -- thank you, Richard. As you've been speaking, the Mexican president has just
said tariffs will be paused for one month, following a call with Donald Trump. The Mexican president Claudia Sheinbaum, I'm reading this as I get
it, has said that she has spoken with the U.S. President Donald Trump, reached an agreement to pause tariffs for a month, she said, starting
Monday.
Obviously, these terrorists were threatened to go into -- and to go into force on Tuesday. She said, Monday, both sides also reached agreements on
security and on trade. And Mexico will immediately reinforce the border with 10,000 members of the National Guard, while the U.S. committed to
working on preventing high-powered weapons from being trafficked to Mexico. Sheinbaum says. I mean, there's some stuff in there. Let's just get your --
QUEST: How the market is reacting.
QUEST: Let's get the Mexican president up now. She is speaking. Let's listen in.
CLAUDIA SHEINBAUM, PRESIDENT OF MEXICO (through translator): Forgive you. I have spoken to the General Secretary to say that we should immediately get
to work on this agreement, and we will be in forming -- it will help us also in order to strengthen the Northern Frontier. So,
I think that it was a good agreement and we will be in forming this month of work with the security forces. At the end of the conversation, I put
forward our campaign.
[10:40:01]
And he said, send it to us. I said, it's very important that it's -- that the young people should understand and we will forward the campaign that
we're doing in schools and also through the media. This is what they wanted to inform you, and we'll continue informing you about these matters. But
first, the tariffs will be put on boards per month on hold. It's very important
regarding security and we will check the matter of the arms being sent from Mexico to the U.S.
Good morning, Madam President. I wanted to ask about this subject, the conversation with the -- Donald Trump, the U.S. president (INAUDIBLE) the
immigrant been very intense and (INAUDIBLE) restore the social media the last few days as mentioned that the mobilization, lots of videos in life
and also (INAUDIBLE) started a campaign of boycott for what's going on in the U.S. (INAUDIBLE) in the U.S.
ANDERSON: OK. CNN's Business Editor-at-Large Richard Quest watching all of this, listening in as we've been on the Mexican president there, Richard.
You said, what are the markets doing? She has said that these tariffs are delayed for a month, down now down just one-fifth of one percent. The
NASDAQ just off one percent and the S&P down about two thirds of one percent. They've clawed back at least a percent I will say across the
board.
The markets like what they are hearing. They are not springing into action. It has to be said, there's no, like, huge rally going on. But certainly,
the markets like what they are hearing.
QUEST: I think we need to analyze what the Mexican president has just said. And you're as good at this as anybody else, Becky. Did she actually say
anything that new that as a result of this that wouldn't have been, you know, that -- either wasn't on the cards or couldn't have been achieved by
another means because what the President is going to say is victory. I threatened, they caved. I got 10,000 more troops. They caved.
And I'm not sure what the -- whether the truth is on that. If that is the case, then his policy has worked. His policy has worked of threatening and
bullying and then getting a response. Now we have to wait for a month to see what happens then. Does he want to impose tariffs regardless? I would
think it's right. Because remember one thing, Becky, he said yesterday, he said specifically over the weekend, these tariffs are not a negotiating
strategy. They are not a tactic. Today, If that's the case, that's exactly what they've been.
ANDERSON: Yes. And he also said over the weekend, and this was a message very specifically to the American people, when he said, look, you must have
to see some pain for some long-term game. He said because -- and I quote him here, these countries and many, many others have been ripping us off
for years. So, in the one hand, almost speaking with fork tongue here, on the one hand, he talks about immigration and fentanyl and what's going on
at the borders.
And on the other he just says, these countries have been ripping us off for years. I'm not quite sure which one it is, but to your point, and I can't
give you an answer on what -- on very specifically, whether that that number 10,000 National Guard will be sent to the U.S. border that's on the
Mexico side. Now, I've heard there has been an acceptance on the part of the Mexicans that they will be sending National Guard to the border.
If he's got a big number out of it. Well, you're absolutely right. He will treat this as a win. But this is certainly not a win with regard, you know,
these countries have been ripping us -- ripping us off. It's time to stop that. That is why we have $37, you know, trillion on our U.S. debt. I'm
going to deal with that. That's not what's happened here at all.
QUEST: No, it's not. And that's why the second part of the whole tariff process is this 90-day review that Howard Lutnick is undertaking, which
would suggest, you know, Mexico, Canada was always fentanyl immigration plus trade.
[10:45:10]
Now, if you get fentanyl immigration off to one side, then they're going to be part of this wider issue of the third the 90 or 30-day review. I forget
which it is. The E.U. will be next. The E.U. which, frankly, has no strategy. I mean, they say they do, but if he comes down the road with
them, because what are they going to do? He -- from them, he actually wants to address the trade imbalance and that means fundamental differences in
terms of trade.
ANDERSON: Yes. You're absolutely right. 100 percent you put your finger on it. The E.U. story here they are right in the crosses of Donald Trump. And
it is a real trade story, that one. This one or these two are slightly different.
QUEST: And the U.K.
ANDERSON: And always good to have you. Thank you. You're watching CONNECT THE WORLD. Yes, yes, absolutely. You're desperate for a deal, of course, as
they are with Canada and various other countries around the world. About 175 of them. Thank you, Richard. You're watching CONNECT THE WORLD. There
is more news just ahead. Stay with us.
(COMMERCIAL BREAK)
ANDERSON: Well, the window to meet a key deadline in Gaza's ceasefire agreement is quickly closing. Remember, under the terms of the hostage
ceasefire deal that was signed a couple of weeks ago, talks for a second phase needed to begin in the Middle East today. But Israel hasn't even yet
unveiled their negotiation team. Instead, its prime minister headed to Washington to meet with U.S. Middle East envoy Steve Witkoff today and U.S.
President Donald Trump tomorrow.
Here's what Benjamin Netanyahu said before he left Israel on Sunday.
(BEGIN VIDEO CLIP)
BENJAMIN NETANYAHU, PRIME MINISTER OF ISRAEL: I'm leaving for a very important meeting with President Trump in Washington. The fact that this
would be President Trump's first meeting with a foreign leader since his inauguration is telling. I think it's a testimony to the strength of the
Israeli-American Alliance. It's also a testimony to the strength of our personal friendship.
(END VIDEO CLIP)
ANDERSON: Well, it is all about Benjamin Netanyahu. He literally said it was there. CNN's Alex Marquardt joining us from Washington with all of
this. I thought -- I expected him to say what he said, but I was, you know, it never felt kind of to surprise me to a certain extent, that it is all
about Bibi Netanyahu. What do we expect to come of this meeting? This meeting with Trump, the meetings with Steve Witkoff today and Donald Trump
tomorrow, Alex?
ALEX MARQUARDT, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: Becky, you might all be about Bibi Netanyahu because he's in a very tough spot and so, he's
thinking about his survival. It is not just a meeting with Donald Trump this week. He has a whole series of meetings. He's here throughout the
week. He has Steve Witkoff, the Middle East adviser today, the Speaker of the House, Mike Johnson on Thursday and a variety of others.
[10:50:11]
But this is a critical moment, Becky. You just laid it out very well. This cease fire is supposed to go according to some very strict stipulations.
And so, the negotiations for the next phase were really supposed to begin today. And therein lies the biggest question, to what extent is Netanyahu
going to agree to a second phase? Because remember, that's when the war is supposed to end. The deal says the war ends in phase two.
The IDF withdraws from Gaza and right now, we do not have a sense of whether Netanyahu wants to do that. We do know that Trump wants him to do
that, and this is why Netanyahu is in such a tough spot. Trump wants this war to end, and so we expect him to be telling Netanyahu, you need to agree
to the next phase of the deal, Witkoff as well. Witkoff was the one negotiating alongside the Biden team in the final days of the Biden
administration.
But of course, in Israeli politics, if he agrees to end the war, that could be the end of his political career. His government could collapse. He might
even go to prison because of all the legal trouble that he's in. So, he really is faced with two tough choices. Adding on to that, Becky. There's
also the question of normalization of ties with Saudi Arabia looming over all this, which is something that Donald Trump desperately wants between
Israel and Saudi Arabia.
It's even something that Netanyahu wants, but the Saudis are not going to agree to this until there's an end to this war and when Netanyahu says that
there's a path to Palestinian statehood, right now, we are not hearing either of those things from Benjamin Netanyahu.
ANDERSON: Yes. Trump's doing this in an unconventional way. Steve Witkoff is no diplomat, he is no expert in foreign policy. He has specifically said
as much, and yet he is carrying the can for Donald Trump in these negotiations. Let's watch out for Ron Dermer, who, of course, is Israel's
Minister of Strategic Affairs. Good friend of Benjamin Netanyahu, somebody we believe, or at least it is reported that Benjamin Netanyahu would like
to see him involved in these negotiations on Israel's part, rather, perhaps than the traditional Mossad and the rest of it.
So, Alex. Listen, it's good to have you there in Washington. Keep your ear to the ground for us and we'll be back with you. Thank you.
Israel carrying out a large-scale operation in the Israeli occupied West Bank. Israel's military blew up several buildings in the densely populated
Jenin refugee camp on Sunday. You can see debris rising from the explosions in this video. The Palestinian news agency says nearly 20 buildings were
blown up in Jenin, leaving Palestinian families displaced. Israeli officials say the buildings were "used as terrorist infrastructure."
Provided no evidence. Jenin's Mayor tells CNN the Israeli military operation there is similar to Gaza.
All right. And you can, of course, get more on the Middle East and very specifically, what is going on in Gaza, what is going on on the West Bank
@cnn.com or on your CNN app.
Well, after five best album Grammy nominations in her career, Beyonce finally took home the music industry's biggest prize Sunday night for
Cowboy Carter. Her record, 99 Grammy nominations is more than any other artist ever. Kendrick Lamar's not like ours, also a big winner, including
song and record of the year. The Grammys honored first responders who fought those devastating wildfires recently in Los Angeles.
But it was a moment on the red carpet that caught attention for many after the Kenny West and his partner Bianca Censori made their appearance.
Joining me now from Los Angeles is CNN's Elizabeth Wagmeister. And this is -- this was shocking to many people. There's a lot going on here,
Elizabeth. Kanye West and his partner Bianca made their appearance. False reports were in the couple was escorted out of the awards show.
What do you understand to have actually have happened on the red carpet? What's going on there and what happened afterwards?
ELIZABETH WAGMEISTER, CNN ENTERTAINMENT CORRESPONDENT: You know, Becky, part of me hates that we are talking about this, because it's so clear that
the whole purpose of this little charade on the red carpet was just exactly so that people would talk about it. So that there would be attention on
them. But I have confirmed with the source that Kanye West and his partner, Bianca Censori, they were not escorted out.
There were false reports that swirled immediately when they hit the red carpet. And of course, we blurred it out, but she dropped that fur coat and
she was completely nude, other than a sheer overlay, obviously not quite appropriate for a public event.
[10:55:07]
Well, I have a source who told me that she and Kanye were not escorted out, that they walked the red carpet. Once they finished walking the red carpet,
they got in their car and they left. Now, Kanye West was actually nominated yesterday at the Grammys. So of course, that means he was invited because
all nominees are invited to the Grammy Awards. Now he was nominated for Best Rap Song. He didn't win.
That award went to Kendrick Lamar, but again, he was a nominee. He was invited. He walked the red carpet and they left. That's what my source
tells me.
ANDERSON: All right. Thank you for that. There is a lot going on there particularly the way that he appeared to be speaking to her as well.
Well, that is it for CONNECT THE WORLD. I'm Becky Anderson. Stay with CNN. "NEWSROOM" is up next.
(COMMERCIAL BREAK)
END