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Erin Burnett Outfront
Trump Threatens China With New Tariffs, Adding Up To 104 Percent Hit; Apple Hammered As Trade War Escalates, Down 20 Percent Over Three Days; Supreme Court Allows Trump To Use Wartime Law For Deportations. Aired 7-8p ET
Aired April 07, 2025 - 19:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[19:00:23]
ERIN BURNETT, CNN HOST: OUTFRONT next:
Breaking news, China ups the ante, sending Trump an ominous message tonight after the president threatens to slap Beijing with another 50 percent tariff on top of the ones already there. As we have new reporting this hour that Trump may be looking for an exit ramp, finally.
Plus, Apple in freefall. One of Americas most powerful and iconic brands hit hardest by Trump's tariffs. Long time Wall Street expert on Apple says get ready for iPhones that cost you three times as much as now.
And breaking news, the Supreme Court pausing tonight's deadline to return a Maryland man accidentally. The White House says deported to El Salvador. We're live from El Salvador, and his attorney is our guest.
Let's go OUTFRONT.
Good evening. I'm Erin Burnett on this Monday.
And OUTFRONT tonight, the breaking news, China punching back, aiming an ominous tweet moments ago at Trump. China responding to Trump's mind-boggling threat today. Hear it yourself.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: They said if that tariff isn't removed by tomorrow at 12:00, were putting a 50 percent tariff on above the tariffs that we put on.
(END VIDEO CLIP)
BURNETT: Fifty percent in a setting like that. I mean, it sounds deeply unserious. It sounds made up. It sounds petulant. On what basis another 50 percent? And, by the way, he says this is happening Wednesday?
So, here's the situation: if Trump says he's going to hit China with another 50 percent tariff on top of the 34 percent that he just put on all goods from China, which comes on top of the 20 percent already in place. That means U.S. tariffs on everything from China of 104 percent.
So just going off the new tariffs in the past week, just those buying something that was $10 from China a week ago. If you went online at amazon it came from China. It was ten bucks. It would be $8.50 -- $18.50, I'm sorry, on Wednesday, $10 a week ago, $18.50 on Wednesday. Thats insane.
And don't forget that Trump has promised to impose 25 percent tariffs on any country that imports Venezuelan oil. China is the largest importer of Venezuelan oil, so that would bring the total tariffs not to 104 percent, but 129 percent. It is 7:00 a.m. in Beijing as we are speaking, and we are awaiting a full response at any moment to Trump's threat of that additional 50 percent more in tariffs on Wednesday.
So far, all we have is that one ominous post from the Chinese embassy in Washington saying @realDonaldTrump, that's it. They posted it, though, just below a post they pinned moments before, which reads, China will firmly safeguard its legitimate rights and interests. This is a typical move of unilateralism, protectionism and economic bullying.
So, as we await more from Beijing at any moment, it's worth pointing out that the E.U. is also not backing down from Trump's trade war. The president of the European Commission saying today the E.U. will, quote, focus like a laser beam on markets beyond the United States. And to that, Trump just responded.
(BEGIN VIDEO CLIP)
TRUMP: The E.U. has been very tough over the years. It was -- I always say it was formed to really do damage to the United States in trade. Thats the reason it was formed.
(END VIDEO CLIP)
BURNETT: Or to stop a world war from happening again. It is worth fact-checking his claim on trade. When the E.U. was created in 1993, its economy was about the same size as the U.S. by 2008, the same was true. But now the United States economy is 50 percent bigger than the E.U., 50 percent bigger.
Well, stocks whipsawed today on Trump's trade war, plunging then recovering on hopes for a complete pause in his tariff threats, which has not transpired. All in, the Dow is down 4,000 points and a spiral over the past week, a situation bringing some major players off the sidelines. The CEO of JPMorgan, Jamie Dimon. He is not -- not afraid to speak out in general, but he has been reticent here. Not so today, referring to the fact that tariffs have come before world wars. In a memo to shareholders writing, quote, we face the most perilous and complicated geopolitical and economic environment since World War II. Economic warfare has caused military warfare in the past.
And top hedge fund manager and key Trump ally Bill Ackman warning of a, quote, economic nuclear winter. And then out came Elon. He has barely left Trump's side since his
inauguration. Now, in an all-out fallout with Trump's top trade adviser, Peter Navarro, the one who reportedly came up with the sham math for Trump's tariffs.
[19:05:01]
Musk slamming Navarro's education online, saying a PhD in econ from Harvard is a bad thing, not a good thing. He ain't built. He filled in the word that I'm not saying.
In fact, putting aside Elon's criticism, there are questions about the credentials of Navarro. According to "The New York Times", he invented a so-called expert for his books bashing China. That expert named Ron Vara using letters from his own last name.
Navarro quoted Vara as saying, you've got to be nuts to eat Chinese food, and only the Chinese can turn a leather sofa into an acid bath, a baby crib into a lethal weapon and a cell phone battery and a heart piercing shrapnel.
And it's not just China that Navarro has a questionable record on. What about COVID? He came on this show to defend using hydroxychloroquine to treat COVID, a drug that, according to study after study, is not to be used to treat COVID-19.
(BEGIN VIDEO CLIP)
PETER NAVARRO, DIRECTOR OF THE OFFICE OF TRADE: There's just disagreements and -- and on -- on things like, for example, the hydroxychloroquine. He has a strong point of view. Theres as many doctors on the other side that have a strong point of view.
BURNETT: But there aren't as many doctors on the other side.
NAVARRO: Yeah, there are, yeah, there are.
BURNETT: But there aren't.
So, Peter, first of all --
NAVARRO: Yeah, there are.
BURNETT: -- first of all, just on a basic level, you're an economist. Not a scientist.
(END VIDEO CLIP)
BURNETT: He also claimed lockdowns killed more people than COVID.
(BEGIN VIDEO CLIP)
NAVARRO: If you lock people down, you may save lives directly from the China virus, but you indirectly, you're going to kill a lot more people.
(END VIDEO CLIP)
BURNETT: Despite his controversies, he has remained by Trump's side even after he got out of prison. And as Trump and Navarro continued to defend Trump's tariffs, which have already cost investors trillions of dollars in the market, Trump is busy said to be planning his own military parade, a pricey one something he had pushed for during his first term in the White House had to abandon, though, because the price tag was nearly $100 million at that time.
The parade this year would fall on his birthday, June 14th, as well as the Army's 250th anniversary and a U.S. Flag Day. Apparently, we understand, would include soldiers, armored vehicles, tactical vehicles and more a celebration that is much more familiar in settings outside the United States, whether that be China, Russia or North Korea, put on by some of the strong men that Trump has said that he admires.
You know, when Putin, his own state media, will put out statements about seemingly unimportant things that he cares about, like how many goals he scored in a hockey game, if that sounds familiar in the context of this weekend, maybe it should. As the trade war was raging on, it came out a reporter -- they put a release out to reporters telling them, quote, of Trump, that, "I won. It's good to win. You heard I won, right?" Talking about his golf game this weekend in Mar- a-Lago.
Alayna Treene is OUTFRONT live at the White House.
And, Alayna, I know that you are learning some new and important information about Trump's trying to negotiate with other countries amidst the chaos here. What are you learning?
ALAYNA TREENE, CNN WHITE HOUSE REPORTER; That's right. We also have some new reporting as well that were just putting out now on how this weekend, just shortly after the presidents tariffs on other countries went into effect, as foreign leaders, of course, were scrambling to figure out how to deal with them, his treasury secretary, Scott Bessent, flew to Mar-a-Lago to meet with the president and essentially deliver a message.
And that message was one we need to get this team on the same page with messaging. Of course, we saw that not really work out this weekend. We had some mixed messaging from some of his top advisers, but then also to -- really, he stressed the importance of trying to deliver the message of an end game, which is really better trade deals with other countries.
And then today, of course, we saw President Donald Trump say that he is open to negotiating. Even this morning, he spoke with Japanese prime minister about this and then said that he wants to have a broader negotiation on this and that Bessent, his treasury secretary, the same one who flew to Florida, would be the one taking the lead on that.
All to say, when my conversations with White House officials, Trump administration officials, and they tell me that he is ready to try and make some deals, however, that he's not going to be making these deals immediately. And really, the goal for the president here and what he believes in is trying to milk these other countries for everything he can. He wants them to come to the United States, to the White House with their own offers, and kind of start the jumping off point there.
BURNETT: Wow. To milk other countries for as much as they can. I mean, it's really incredible. And such important new reporting.
Alayna, thank you very much at the White House.
I want to go to Austan Goolsbee now, in the center of all this, president of the Federal Reserve Bank of Chicago, part of the Federal Reserve Committee, which decides interest rates.
And you -- you're in this unprecedented moment, and you all will have crucial decisions to make.
Austan, I want to start with the breaking news here. We're, of course, waiting a response from China. But Trump is saying tariffs on China go to 104 percent on Wednesday. If they don't back down completely and totally off matching any of his tariffs by noon on that day.
What do you even expect to hear from China in these next minutes and hours in terms of their response?
AUSTAN GOOLSBEE, PRESIDENT, FEDERAL RESERVE BANK OF CHICAGO: I don't know for sure. I can't speak for the Chinese government. We've got a situation almost unprecedented in in the U.S., where the hard data, whether you look at the unemployment rate being barely 4 percent, the inflation rate has been coming down. Weve been making progress.
The hard data has looked pretty good, and we've just thrown lots and lots of dust in the air that make it hard to figure out where were headed in the short run. And you can see that in the stock market. You can see that in the consumer confidence measures, business sentiment kind of indices.
Theres just a lot of question marks. And so that's led everybody in the Fed and all across the spectrum to go out and talk to the business leaders themselves, what are we hearing. And there's a lot of anxiety.
And I guess the way I'd characterize it is the anxiety is if these tariffs are as big as -- as what are threatened on the U.S. side, and if there's massive retaliation, and then if there's counter retaliation again, it might send us back to the kind of conditions that we saw in '21 and '22 when inflation is raging out of control, that it could send us back to the supply disruptions of the form that we saw in 2020, beginning of COVID, and nobody wants to go back there.
So, I think you can see why the -- there's this expression of anxiety collectively across the board.
BURNETT: Yeah. So, what happens, you know, if you have Chinese goods? I was saying, you know, if he if he does what he says he's going to do on Wednesday, you're going to have something that was $10 a week ago coming from China, be $18.50. I mean, Austan, how long are -- there's two ways to ask this question. One is how fast does that cause real pain? The other is how long can the United States sustain that real pain?
GOOLSBEE: Yeah, those are two different questions, each of which is is centrally important. But I guess the -- the way I start is imported goods in the United States are only 11 percent of GDP. So, there is a sense in which if tariffs kind of stay in their lane, they wouldn't be as big as -- as people fear.
Where the fears come about or when it jumps out of the 11 percent lane. And that would happen if there's immediate retaliation, if the tariffs are on things that are parts, components and supplies for other things that are being manufactured domestically, of which a lot of what would be coming from China would be. So, it wouldn't just be consumer goods that you're buying toys or something on Amazon, it would be parts, components that are going into automobiles or -- or airplanes or things where consumers are going to feel it indirectly.
And then if it destroys our confidence that the world is erupting into a global trade war, you're likely to see people change their behavior. People spend less. The businesses invest less.
If this is a path to what Secretary Bessent called the golden age of trade, that we could sign some new agreements and that we don't actually put 100 percent plus tariffs on each other, then. Then it would in the end not probably have this negative impact. And we might be looking back and say, hey, it worked out fine.
But until we get to negotiate some of those deals, it's just really throwing a lot of dust in the air.
BURNETT: All right. So -- so, you know, look, you're more sanguine than many and than many might expect. May I ask you whether, you know, Trump came out and said on social media of Jerome Powell, obviously, you know, head of the Fed, and you're going to be voting on interest rates. This would be a perfect time for Fed Chairman Jerome Powell to cut interest rates. He's always late, but he can now change his image and quickly cut interest rates, Jerome and stop playing politics. He put that last part in all caps.
What's your response to that? I mean, are -- do you think a rate cut is warranted right now? Put aside the tone and the way he's doing it and the pressure and all of that, is it the right thing to do?
GOOLSBEE: Well, I think two things. One, I'm a huge fan of Jerome Powell as a Fed chair. I think he's a first ballot Hall of Famer in anyone's book.
And I think that Fed independence from political interference is critically important. And its virtual unanimity among economists that that monetary independence remain. If you just look at countries where they don't have it, inflation is higher, growth is slower, the unemployment rate is higher, the economic outcomes are worse.
If you then say, what should the Fed do in response to tariffs, to other policies, to geopolitics? The answer is it depends on conditions.
As you know, Erin, the law gives the fed the job when setting monetary policy, stabilize prices and maximize employment. It's a simple idea. It's not always easy to carry out, but our job is to look at the hard data.
And if we have something that's both deteriorating economic growth and driving up the prices, that is to say, something that is stagflationary, there's not a generic answer to what the fed should do in response to that. Depends how much it drives up prices, how long it's going to last, and how much it reduces growth.
BURNETT: Yeah. And of course, that's -- that's what all of this would, would lead you down that path depending. Right. How long and how high.
Thank you, Austan Goolsbee, so much. Appreciate your time.
GOOLSBEE: Great to see you again.
BURNETT: Voting member of the Federal Reserve on interest rates there from Chicago.
And OUTFRONT now, Richard quest and Dan Niles. Dan Niles is founder of Niles Investment Management.
I appreciate both of you so much.
Richard, since you're sitting here with me, you hear -- you hear Austan. And we are literally awaiting now a response from China. Trump has said, you have essentially, you know, until noon to back off 100 percent, or else I'm going to slap you with another 50.
RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE: I cannot see the Chinese giving in.
BURNETT: Oh, you don't think they're going to?
QUEST: Well, no.
BURNETT: I'm not --
QUEST: I'm not even sure that they're even going to dance around it, because the Chinese have put out two documents in the last 24 hours. The first is a policy statement, and the second is a commentary in the people's daily.
And if you read the people's daily commentary that basically says, number one, U.S., we've got lots of things that you can only get for us. Be careful before you do it. Number two, be careful what you wish for here. You might just find other countries avoiding you in future and coming to us directly.
And number three, we have built up a nice big war chest. And we are not frightened by this. So, I cannot see how they'd lose face. Think about it, Erin. The speed with which they put on the 34 percent. So --
BURNETT: Within hours, right?
QUEST: I mean, look, could they, would they possibly. Maybe. Whatever. No.
BURNETT: No. I think that's right. And it could really come at any moment. As I said now it's just after 7:00 in the morning in Beijing.
Dan, you know, the Chinese embassy responding with that sort of at real Donald Trump under a post referring to bullying economic policies. How big of a problem is China going to be for Trump?
DAN NILES, FOUNDER & PORTFOLIO MANAGER, NILES INVESTMENT MANAGEMENT: It's going to be a huge problem because they have one big advantage, there's no midterms. President Xi Jinping doesn't have to worry about getting reelected, whereas Donald Trump party has midterm elections coming up in two years.
So, the Chinese have more staying power in this, and they're willing to endure more pain. Quite honestly, to some degree.
So, China's an issue. But let's not forget there's a whole bunch of other countries that do have elections. And I think you've already started to see movement on that front. But, you know, to your point, China is probably going to be the biggest sticking point.
BURNETT: Yeah. I mean, you know -- and, Richard, I'm also curious, you know, we talk about the math on this. Okay. The math of this. Just saying another 50 percent wherever that came from okay. It does seem capricious.
But Peter Navarro, the person who is -- is credited with coming up with the math such that it was for these tariffs across the board. Does he have credibility on this issue on the world stage from anyone?
QUEST: Well, the thing about Peter Navarro, who I've known, as you have for many years, is a charming chap.
BURNETT: Yeah.
QUEST: Just the sort of man you hope to sit next to at dinner. But when it comes to his economics, he is widely said, as you know, this is all, Navarro. This is all Navarro.
And I think that's going too far, because Donald Trump, as you know, has had a myopic obsession with tariffs for his entire adult business life. So, what you have here are two men feeding on each other. What I find fascinating is how Scott Bessent and, Howard Lutnick stand by and watch all this taking place, when they must know that their other Wall Street colleagues or former Wall Street colleagues are saying this is barking mad.
BURNETT: I mean, barking mad. The words there, Dan.
I mean, you know, Trump also coming out attacking the E.U., saying they don't take anything. You know, and also, you know, implying that the whole purpose of the E.U. was to sort of defeat the U.S. so I thought it was important to point out the U.S. economy has grown, is now 50 percent bigger than Europe.
But when he says the E.U., quote, they don't take anything. Thats just not true, is it?
NILES: Well, I mean, it's not true, but do they put up a lot of regulations to try to hinder U.S. tech companies? That's definitely true. And I think that's one of the big issues that quite honestly, us tech companies have with China or Europe and China, as you know, Erin, you know, they've got the great firewall there. So, you don't have a Google there. You don't have a Facebook there. They're basically locked out.
And obviously on the software side, there's a lot of piracy.
[19:20:00]
And so that's the issues which with China there. And then in the E.U., there's sort of this joke that the U.S. invents and the E.U. regulates. And that's part of the reason why their economy is falling so far behind is that they weren't leaders in the move to the Internet in the late '90s. They weren't leaders in obviously, A.I. most recently.
And so, they're trying to put up roadblocks to stop the U.S. companies. And that does have to change. And I firmly believe that.
BURNETT: All right. We'll -- we'll see. Well see if it does. And of course, many of those tech CEOs were on board with this maybe a week ago. Maybe they're feeling a little differently now as they see the bear market that those stocks have entered.
Both of you. I so much appreciate it.
And next, Apple, one of those companies and one of the most iconic companies in America and really stands for America around the world, right, has been crushed by the trade war so far, so much so that my next guest says the price of a new iPhone could triple. He's going to lay all this out. Explain it for you.
Plus, breaking news this hour, Trump just given the okay by the Supreme Court to use an 18th century wartime act to start rounding up and deporting migrants. So, we've got that breaking news, real details here this hour.
And as we await China's formal response to Trump's additional 50 percent tariff threat, China's catching Trump by surprise tonight. Major military moves that could drag the United States into that feared all-out war with Beijing.
(COMMERCIAL BREAK)
[19:25:39]
BURNETT: Breaking news just moments ago, White House adviser Peter Navarro making a claim about the markets. He says they are, quote, finding the bottom, now finding the bottom. It comes, of course, as the trade war has taken its biggest toll,
perhaps on some of -- well, definitely on some of the biggest companies in America, and on one of the most successful ones.
Take a look at Apple. Company shares down about 20 percent over the past three trading days. So just when you look at Apple, that wipes out about $640 billion in market cap. Its a stunning number. Context around it. The other day we were saying look that's more than Walmart has ever been worth in its entire existence. It's the largest non- governmental employer in the United States, Walmart, and Apple has lost that value in a few days.
Veteran tech analyst Dan Ives is here with me now. He says Apple right now is in the eye of the tariff storm, a category five hurricane. Trump's tariffs, likely to triple the price of an iPhone, according to his analysis. As commerce secretary, Howard Lutnick, claims that this will all benefit American workers who will make those iPhones.
(BEGIN VIDEO CLIP)
HOWARD LUTNICK, COMMERCE SECRETARY: Armies of millions of people -- well, remember the army of millions and millions of human beings screwing in little, little screws to make iPhones. That kind of thing is going to come to America. It's going to be automated. And great Americans, the trade craft of America is going to fix them. It's going to work on them.
(END VIDEO CLIP)
BURNETT: All right. Dan Ives is OUTFRONT now. He's the global head of tech research for Wedbush Securities.
Dan, you've covered tech stocks on Wall Street for 25 years. That means you've been through the.com bubble. Youve been through COVID. Youve been through the great recession. Youve been through the financial crisis, all of it.
Here we are now. Have you seen anything like now?
DAN IVES, GLOBAL HEAD OF TECHNOLOGY RESEARCH, WEDBUSH SECURITIES: No, because it's self-inflicted. And in my opinion, it's an economic Armageddon, but especially for the tech industry. I mean, this -- this would take the U.S. tech industry back a decade if these tariffs actually come through.
And the reality is that it's all the hearts and lungs of the supply chain is in Asia. And that's why it's U.S. tech. --
BURNETT: So when Howard Lutnick says, as he said there to Margaret Brennan, the little screws to make iPhones, that kind of thing is going to come to America. It's going to be automated and great Americans, the trade craft, America is going to fix them. It's going to work on them.
IVES: That would be like me watching an NBA game being like, oh, it's easy to score a basket. The reality is it's the most complex supply chain in the world. And the way that they have 1.5 billion iPhones and they're able to make them at $1,000 is because of the supply chain that's really been built over the last decade.
You build that in the U.S. with a fab in West Virginia and New Jersey. They'll be $3,500 iPhones.
BURNETT: $3,500 iPhones.
IVES: And look, and that is -- that is the true reality of seeing it and doing it.
BURNETT: So -- so, let's lay this out. If you look at iPhone 16, iPhone 16 Pro Max, the prices you're paying now for the iPhone 16, $799. You know what happens here to these things?
IVES: Well, first off, its it would take Apple $30 billion and three years to move just 10 percent of the supply chain to the U.S.
BURNETT: $30 billion, three years to move, 10 percent.
IVES: To move 10 percent of the supply chain.
BURNETT: Leaving 90 percent over.
IVES: Leaving 90 percent over there. And for some, like myself, that travel throughout Asia for decades, the reality of it -- it's a fictional tale. And that's why I think you see what's happened to the stock, because no company is more caught up in this tariff front and center in this category five storm than Cupertino and Apple. And that's the shame of it.
BURNETT: I mean, you look at -- we just -- you talk about traveling through Asia and maybe this brings it home. We actually looked at a map to say, where does Apple make iPhones? You know, where in Asia?
I mean, there are hundreds of manufacturing sites in China. We'll throw the map up, hundreds of them. I mean, it is really stunning. I mean, we're just putting some of them there. Hundreds. I mean, this is actually about much more, as you point out, than cheap labor. I mean, this is massive infrastructure were you to transport it here.
IVES: And -- but that's almost an impossibility. And that's why the stock is sold off, because at the end of the day, the stocks they're not -- they're not political. They know math and the reality.
And when it comes to Apple, this would be -- in my opinion, if this -- if this actually comes through, this would change the future of Apple. And that's -- what's so sad to some extent as an American icon. You know, you could talk, you could have beltway talking points.
[19:30:00]
But there's the reality of it.
BURNETT: The reality on the ground and also on that. And when we look at the stocks that have lost so much value, and obviously, it's been the whole market, but that -- what they call the Magnificent Seven, that it accounted for half of the growth last year in the S&P 500. They have plunged. They're in a bear market on that list.
Tesla -- you -- you've been one of the biggest fans for Tesla on Wall Street. But today you slashed your price target which means where you think the stock is going to go by a massive amount 40 percent.
IVES: I mean, two things. I mean one, tariffs I mean that that hurts Tesla like every other automaker. And then China, that's been a core part of their demand story. And this is going to be more and more negative for them as they go up against domestic players.
And we've talked about Musk. I mean, Tesla has become a political symbol globally. And that's been a very bad thing for not just stock in terms of unit sales and destruction. And we believe clock struck midnight for Musk. He basically is going to need to make the choice here. He cannot do this. And I think you've seen it in the stock in terms of reflected.
BURNETT: Well, maybe that's part of the reason he's been so aggressive on Peter Navarro in the past 24 hours.
All right. Dan, it is good to see you and thank you.
IVES: Great to be here.
BURNETT: All right. And next, the CEO from the world's largest money manager says it is no longer when the U.S. may enter a recession.
(BEGIN VIDEO CLIP)
LARRY FINK, CEO, BLACKROCK: Most CEOs I talk to would say we are probably in a recession right now.
UNIDENTIFIED MALE: Right now?
FINK: Right now.
(END VIDEO CLIP)
BURNETT: Plus, breaking news, the Supreme Court right now giving Trump the green light to use that 18th century wartime law to detain and deport migrants.
(COMMERCIAL BREAK)
[19:35:58]
BURNETT: Breaking news, the CEO of Blackrock, which is the largest asset manager in the world, says the United States may already be in a recession.
(BEGIN VIDEO CLIP)
LARRY FINK, CEO OF BLACKROCK: The economy is weakening as we speak.
Most CEOs I talked to would say we are probably in a recession right now.
UNIDENTIFIED MALE: Right now?
FINK: Right now.
(END VIDEO CLIP)
BURNETT: Larry Fink also warning that the markets, which, of course, have plunged, could see stocks fall another 20 percent.
OUTFRONT now, someone who knows all about how Donald Trump thinks and operates in a way that few in the world do, Jack O'Donnell. He was the president and chief operating officer for Trump Plaza Hotel and Casino, and worked with Trump, obviously, for many years. The author of "Trumped: The Inside Story of the Real Donald Trump".
And, Jack, you do know him well. Youve worked with him closely in situations of pressure. So why do you think that he is doing this right now? Tonight, when he comes out and says, if you don't get rid of all the tariffs, China by noon, I'm going to slap another 50 on you.
JACK O'DONNELL, FORMER PRESIDENT AND CHIEF OPERATING OFFICER OF TRUMP PLAZA HOTEL & CASINO: Well, he loves to, you know, exert, you know, authority over people. And that is one of his defensive mechanisms. If somebody is coming after them, he goes after them more.
But the bottom line with Donald Trump is he thinks he's smarter than everybody else. He thinks he's the world's best negotiator. And unfortunately, he listens to no one. And the people that he does listen to are usually not the experts in the field. And so, look, he's, you know, he's doing this now because he's been very aggressive. You know, the first few months.
BURNETT: You say there was a guy that, you know, speaking of people who aren't experts because in this -- in this case, trying to understand who he's listening to. There was a guy when you were dealing with him, the newsletter person, that he would read and just do whatever the. What was that?
O'DONNELL: Well, yeah, I mean, there was a guy in Atlantic City who wrote a monthly newsletter, and, the guy knew nothing about the industry, but he just took data and he put it out there. But he would literally praise Trump at the beginning of every newsletter.
And unfortunately, you know, the guy had no background. And I hate to say this, but, you know, he was usually drunk by noon and the guy was a little crazy. But Donald listened to him.
And, you know, I would get these crazy calls from Donald. He'd say, I want you to do this. I want you to do that. I want you to go a hundred times odds on craps. And you'd be like, that is crazy. Who gave you this idea?
And it would be this guy who wrote this newsletter. Because that guy always agreed with him, and he always praised him. I mean, it's just the way he's always operated.
BURNETT: So, you think there is something deeply personal in this for Trump? And I want everyone to understand this, Jack, because you think it comes back to his relationships with friends. And before you, you explain, I want to play something for you that he told the icon Connie Chung about in 1990. You were working with him at the time.
He told her this.
(BEGIN VIDEO CLIP)
CONNIE CHUNG, TV ANCHOR: Do you have a best friend?
TRUMP: Well, I have so many different friends and it would be hard to say a best friend.
CHUNG: Is your wife Ivana a best friend?
TRUMP: She's -- she's a -- she's a great friend. She's. I have a father who's a great friend.
CHUNG: I mean, is there somebody that you really confide in?
TRUMP: I tend not to confide. I really tend not to confide. I'm very closed in that sense now. I think that's my own, maybe, guarded mechanism.
CHUNG: Is it that you don't trust people?
TRUMP: I don't trust people. No. I'm a non-trusting person.
(END VIDEO CLIP)
BURNETT: And you see a parallel between what he said then and now. What do you mean?
O'DONNELL: Well, look, he's always been a loner. He admits he doesn't trust, and he's never had friends. And I think he, as a result of that, I think you take the friends of America, our historical friends, NATO, everybody we've dealt with that came together during World War II. He doesn't look at them as friends because he doesn't really know what friendship is.
So that's why it's so easy for him to cast them away. They're just another person. But Donald Trump has is acquaintances, and that's it.
[19:40:02]
He does not have friends. In the four years that I was with him. Erin, I will tell you, I knew of one person that he called a friend and that I saw him with occasionally. But, you know, he is just a friendless guy, and that makes it easy for him to do some of the things that he's doing today.
BURNETT: All right. Well, Jack, I really appreciate your time. Thank you very much. O'DONNELL: Thank you, Erin. Good to see you.
BURNETT: You, too.
And next, the breaking news from the Supreme Court tonight, temporarily blocking the deadline for the administration to return a Maryland man accidentally. The administration says deported to El Salvador. Family attorney is my guest.
And the U.S. caught off guard after China's most powerful aircraft carrier suddenly surround Taiwan. Jets now being scrambled. And well take you live to Taipei.
(COMMERCIAL BREAK)
BURNETT: Breaking news, the Supreme Court just handed Trump a major victory, allowing him to use the Alien Enemies Act, a law from 1798, to deport migrants for now.
[19:45:08]
It came after the chief justice gave Trump another victory, though it may be temporary, but it is important because it takes effect right now. Roberts pausing a midnight deadline tonight. That deadline had been to return a man from Maryland that the administration claims they mistakenly deported to El Salvador and that infamous prison there.
Kilmar Armando Abrego Garcia had protected status in the United States, meaning he could not be deported to his home country of El Salvador. Nonetheless, he was. They say it was an administrative error.
The Trump administration did deport him to that supermax prison that we've told you so much about, and from where our David Culver has reported extensively from. He is OUTFRONT in San Salvador for us tonight.
And, David, what does this pause from the Supreme Court mean for Abrego Garcia? And what are -- you know, what are you learning about how these deportations are now being received?
DAVID CULVER, CNN SENIOR NATIONAL CORRESPONDENT: You know, Erin, it's very difficult to get information from inside CECOT. And as you and I have been talking, going back to late last year, I mean, we were the first with you here on OUTFRONT to be able to show what it's like inside this mega prison and really this fortress of sorts.
And one thing we are hearing, though, and I'm hearing from a contact who's familiar with how the deportees from the United States are being held, and it's separate from how the regular prison population is being kept. And by that, I'm being told it's a bit more relaxed.
Now, I need to stress, because that doesn't mean that it's by any means a comfortable situation. However, it does seem that certainly with the Venezuelans, the Tren de Aragua, and possibly and working to get more clarification on this, but possibly that would then also include the 23 or so alleged MS-13 members who are from El Salvador, who were also deported last month and kept in a separate area, that its maybe even as lax, dare I say, that they could have sheets.
That's what I'm hearing from one source that they've been able to have conversations with each other inside the cells.
And now, why do I point that out? It shows you just how strict it was when we toured with those Salvadoran MS-13 gang members, where they were not talking to each other, they were in almost militant like line. They were following commands from the guards. And so, it's a very distinct situation.
One thing though, Erin, I'm curious as to why that might be it. It possibly suggests that there might be an end at some point for these individuals, and that prison officials know they'll be back out into the world, potentially in Venezuela or even in the U.S. and so, perhaps, they're not getting, if you will, the full CECOT experience.
BURNETT: All right. Thank you very much, David Culver, there in El Salvador, in the capital, El Salvador, tonight.
I want to go now to Simon Sandoval-Moshenberg, the attorney for Kilmar Abrego Garcia, who, of course, is the man we talked about that the Trump administration says they mistakenly deported to El Salvador, was supposed to come home tonight.
I mean, that was -- that was the situation. Now, there's been a stay on that, at least temporarily put on by the chief Justice Simon. So, the family would obviously just found this out here in these past few minutes. What -- what are they saying?
SIMON SANDOVAL-MOSHENBERG, ATTORNEY FOR FATHER MISTAKENLY DEPORTED TO EL SALVADOR: Yeah. I mean, this is a temporary administrative stay. The Supreme Court does need a little bit of time to do their job. We're confident that the Supreme Court is going to work as quickly as possible, and that we'll get an answer from the court within the next couple of days --
BURNETT: So then --
SANDOVAL-MOSHENBERG: -- on the merits of the case.
BURNETT: So -- so then at this point, you know, are you sort of on pause for the next couple of days? I mean, what -- what is your next step if it doesn't go your way, I suppose is another way of asking it, given that this is at the Supreme Court.
SANDOVAL-MOSHENBERG: Yeah. I mean, we're very confident that the Supreme Court is going to agree with all three judges of the fourth circuit Court of Appeals, the judge from Maryland, right? Now, all four judges who have looked at this case have all agreed that the government's response, that they can whisk someone out of the country by accident and then have no responsibility to fix what they've broken, just doesn't make sense as a legal matter, and is also just disturbing as a matter of constitutional law.
So, we are fully confident that we're going to prevail at the Supreme Court.
BURNETT: Have you learned anything more about his condition or how he's doing? I mean, David Culver was just reporting from outside that CECOT facility where Abrego Garcia is being held.
SANDOVAL-MOSHENBERG: We haven't. This is the first time hearing of that. And it's -- it's very relieving. His wife, Jennifer, has been extraordinarily concerned about the treatment that he's receiving and what condition he's going to be in, quite frankly, when she when she -- she gets him back.
It does suggest to us, you know, its further evidence in support of what we've been saying all along that there's an agreement here, and that's what the district judge in Maryland found. And the court of appeals in Richmond agreed that there's an agreement between the United States and El Salvador with regards to these detainees.
And so, the notion that it would be impossible -- the government keeps using the word impossible, the notion that it would be impossible to get him back is just completely implausible.
[19:50:02]
No one believes that.
BURNETT: So on that front, I want to get your reaction to the other breaking news out of the Supreme Court, which I just mentioned, which is that they have just given President Trump the power to enforce that Alien Enemies Act. So, basically, that will allow, Simon, his administration, those sweeping wartime authorities to deport -- to deport people that they say are bad people. Whether they say they're gang members or other, quote/unquote, bad people.
What -- what do you -- what is going to be the impact of that, not just on your client in this specific case, but you've been doing this a long time? What does this mean that they are upholding his use of that act?
SANDOVAL-MOSHENBERG: Well, it doesn't affect Mr. Abrego Garcia because the act so far has only been invoked as to Venezuelan nationals. So, it certainly doesn't affect Mr. Abrego Garcia. But it's very, very disturbing.
I mean, I have a number of Venezuelan clients who are terrified of this act being going back into effect because they also have benign tattoos or they happen to come from the state of Aragua. And so they're worried that they might be subject to these, you know, baseless false accusations and be whisked away.
The Supreme Court did say that these individuals can bring individual one on one challenges, but unfortunately, that's going to be, you know, prohibitively difficult for individuals to do, especially if the government keeps operating on this breakneck deportation speed.
BURNETT: Yeah, right. As opposed to a broader group.
Well, Simon, thank you very much. I appreciate your taking the time speaking to me again.
SANDOVAL-MOSHENBERG: Good to be back.
BURNETT: Okay.
And next, tensions sky high as the U.S. is watching what's happening here. A risk of a real war. Beijing launching its most aggressive military drills in years. We're going to show you live what's happening next.
(COMMERCIAL BREAK)
[19:56:33]
BURNETT: Tonight. As China stands firm that it will not bow to Trump on trade. And we await that response from Beijing. It's sending another warning shot to the United States, launching its most aggressive military drills in years in Taiwan.
Will Ripley is OUTFRONT.
(BEGIN VIDEOTAPE)
WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Tensions erupt in the Taiwan strait. China launches one of its largest military drills in years, including long range live fire exercises near the East China Sea. Dozens of warplanes, navy and coast guard vessels, even Beijing's newest aircraft carrier, the Shandong, a simulated siege encircling Taiwan by air and sea taking Taiwan, the U.S. and its allies by surprise.
UNIDENTIFIED MALE: -- warning against Taiwan independence.
RIPLEY: Taiwan is scrambling fighter jets, activating missile systems, accusing Beijing of corruption and internal chaos.
WELLINGTON KOO, TAIWAN DEFENSE MINISTER: I think they should properly resolve these internal problems instead of destroying peace and stability in the region.
RIPLEY: China's military is dealing with a wave of purges. Top generals disappearing amid corruption probes and secrecy.
The drills include assault simulations, rehearsals for a full blockade of Taiwan's sea lanes, a likely first move if China ever tries to seize the island by force. A stark new warning to Taiwan's leaders, and some say the Trump administration.
KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: The president is emphasizing the importance of maintaining peace in the Taiwan Strait.
RIPLEY: An internal Taiwanese government memo obtained by CNN confirms China timed the drills just after U.S. Defense Secretary Pete Hegseth left Asia just days earlier. A leaked Pentagon memo, first reported by "The Washington Post" calling China the department's sole pacing threat, warning U.S. forces to prepare for a possible Chinese seizure of Taiwan.
"The New York Times" reports Elon Musk was scheduled to be briefed at the Pentagon on U.S. war plans for a possible conflict with China. That meeting never happened. Reportedly called off after the paper began asking questions. Both Musk and Trump deny the story, calling it propaganda.
Online, China's state-run media is cheering the drills. One Weibo hashtag racked up more than 300 million views. The concern here in Taiwan, one wrong move could trigger a conflict with global consequences.
HAWKIN YEE, TAIPEI RESIDENT: We hope governments on both sides will exercise restraint instead of acting unilaterally and causing conflict or even war.
RIPLEY: In one propaganda video, China's military mocks Taiwan's President Lai Ching-te, calling him a parasite. Beijing's ridicule may be a response to stepped up espionage crackdowns. Taiwan sentencing four soldiers, including presidential guards, for spying for China.
Taiwan also deporting several pro-China social media influencers, accusing them of calling for an armed takeover of the island.
UNIDENTIFIED FEMALE: I said Taiwan belongs to China and soon, Chinese flags will be everywhere.
RIPLEY: Making these massive military drills even more ominous.
(END VIDEOTAPE)
RIPLEY (on camera): Those drills kicked off one week ago tonight, just after Defense Secretary Pete Hegseth left Asia, Erin. And that's when he said that he would -- when the U.S. military would try to deter what he called communist Chinese military aggression.
We know Chinas been ramping up the frequency and complexity of these drills around Taiwan in recent years. Analysts say they've served several purposes. They send a political message, of course, and they also provide crucial practice for a future invasion.
All of this as tensions are rising over tariffs and restrictions on the kind of advanced tech semiconductors that they make here in Taiwan that China wants, Erin.
BURNETT: Yeah. Crucial part of the tariff story.
Thanks so much, Will Ripley.
And thanks to all of you.
Anderson starts now.
