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Early Start with Rahel Solomon

Trump's Tariffs Rattle Markets, Global Stocks; Trump Tariffs Overshadow Rubio Plan to Reassure NATO Allies; Trump Tariffs Lead to hundreds of U.S. Layoffs. Aired 4:30-5a ET

Aired April 04, 2025 - 04:30   ET

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

[04:30:00]

RAHEL SOLOMON, CNN ANCHOR: Welcome back, I'm Rahel Salomon, and here are some of the stories we are watching for you today.

South Korea's constitutional court ruling unanimously in favor of removing impeached President Yoon Suk Yeol. This comes after months of political turmoil over the ousted president's decision to briefly impose martial law back in December.

One day into, President Trump's new trade policy and global markets are plunging. Despite new predictions of a trade war and concerns about a recession, President Trump maintains that his new tariffs are going to be successful. Internationally, though, there is broad condemnation and concern about the new tariffs, with some foreign leaders planning retaliatory tariffs of their own.

Canada's prime minister, for example, called the current trade relationship with the U.S. a tragedy.

All right, joining us live from Manchester, England, is Chris Southworth. He is the secretary general of the International Chamber of Commerce, United Kingdom. Great to have you this morning, sir.

I want to share a few ways these policies have been described over the last 24 hours. Obliteration day, liquidation day, and worse than the worst case scenario.

In your opinion, have the reactions been overblown or do you share these sentiments?

CHRIS SOUTHWORTH, SECRETARY GENERAL, INTERNATIONAL CHAMBER OF COMMERCE UNITED KINGDOM: No, absolutely. I mean, we share the sentiments. I would add another one to that. It was it felt a bit like make the poor a poorer day yesterday. I mean, the tariffs hitting the some of the poorest countries on the planet were extraordinary. Lesotho having a 50 percent tariff, Chad, which is one of the poorest countries in the world, has got a higher tariff than the U.K., which is one of the wealthiest countries in the world.

So I think we should be really caring about the message that is sending to the emerging markets, particularly across Africa, where trade and development is absolutely vital to their well-being and lifting people out of poverty.

SOLOMON: Yes, I think that was something that really surprised a lot of people, just how some of the countries that face the highest tariffs are already the poorest in the world.

What happens next seems to be what's key here. You have made the point that this, quote, does not need to be a systemic crisis, that this now depends really on the reaction of other governments.

So to that point, how do you expect the U.K. to respond?

SOUTHWORTH: Yes, so we're setting out a very clear plan today at national level and international level. What do we need to do? Because the U.K. has a really important role to play in all of this as a pragmatic champion for trade internationally, but also as a bridge to dialogue with the U.S. and an ability to talk to countries north, south, east and west. We're in a very unique position in that in that sense.

So at national level, we are talking to government about the need to de-risk the economy. You know, we have a pretty thin budget and headroom, economic headroom in the U.K. budget overall that was announced last week.

What we're now saying is we need to accelerate the pace and scale of modernization of trade so that we can reduce the risk and cost for business but also reduce the risk and create more headroom for the U.K. economy. So a bolder trade strategy in early May when that's published is going to be really important.

Secondly, we are now saying that we need to really ramp up our economic diplomacy. U.K. businesses play a crucial role alongside government as well, working with our international community in the ICC so that we're speaking with one voice as 45 companies together to ensure that we protect and safeguard the emerging markets. And we have a comprehensive response in a way that doesn't escalate the situation and that we navigate a way through.

And that means increasing our presence at the World Trade Organization. We're taking two delegations down there this year in the lead up to the WTO ministerial conference next year.

[04:35:00]

We're meeting Commonwealth trade ministers in June. Now, a lot of these tariffs or high tariffs have hit the Commonwealth market. So I'll be speaking to them today and then obviously meeting trade ministers in June. And then also we're now gathering together business leaders across the G20 to have a more strategic conversation about how we all work together, pull together and step up. Because that's that's the big the big question now is how do we step up as a global community to protect the 87 percent of global trade that doesn't rely on the U.S.

SOLOMON: And give me some examples of what that might look like, what those conversations are like now between leaders, small business owners, big business owners about what stepping up in this environment right now looks like.

SOUTHWORTH: Well, I think the first thing that is happening is everybody will be looking at the detail of the economic impact. So we'll have a lot more data, I think, next week as everybody now starts to look at impact on sectors, on different regions and parts of the world, as well as a company level.

So first thing we need to do is listen. The same with governments as well. We need to listen to our national governments and how they're responding and ensure that there isn't an over retaliation here so that we don't get an escalation, because in the long term, we need a de-escalation and then it will all be about how we get together business and government and have a proper response. And that includes the reform and improvement of the trading system, because the economic imbalances in the trading system are there.

The Trump administration is completely right on that. But the solution to solving it is not tariffs. That's going to make it worse. The solution is a multilateral dialogue, and that's long overdue. So this is a big opportunity now to get around the table at multilateral level and solve those problems which need solving.

SOLOMON: Yes, one thing that got my attention that you said to our producers or that you said on another program is I can't see how the U.S. comes out of this without huge damage to its reputation and economy. It's that reputational damage in the long term that I think, you know, we just have to wait to see. Chris Southworth, appreciate you being here this morning. Thank you.

SOUTHWORTH: Thank you very much.

SOLOMON: All right, NATO Secretary General is reiterating his belief that the U.S. remains completely committed to the alliance. That may be some welcome news for the U.S. Secretary of State as he balances the global shock of President Trump's new tariffs with another day of NATO meetings in Brussels. CNN's Alex Marquardt has more.

(BEGIN VIDEOTAPE)

ALEX MARQUARDT, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: The U.S. Secretary of State, Marco Rubio, came here to NATO expecting to talk about very specific agenda items with NATO allies. He wanted to reassure those allies that the U.S. is very much a part of and will remain a part of the NATO alliance. He expected to talk about the war in Ukraine, how to end it, what security assistance for Ukraine would continue to look like, and defense spending, something the Trump administration has been pushing NATO allies to do, to spend more on defense.

But in a large way, this meeting here at NATO of the foreign ministers was overshadowed by the news that President Trump planned to slap massive tariffs on countries all around the world. A Western official telling me here at NATO that it is tough to do the business at hand when this has just been announced.

And then I spoke with the Canadian foreign minister, Melanie Joly, who said they are trying to have constructive conversations, but also at the same time send a message to the United States over these tariffs.

Take a listen.

MELANIE JOLY, CANADIAN FOREIGN AFFAIRS MINISTER: So this is what we're doing. But clearly, we're passing that message to our American counterparts that, you know, it's difficult to have these conversations in the context of a trade war. And at the end of the day, it is those who are watching us right now, Alex, that will be suffering from these tariffs and that issue of trust amongst allies. And we want to be constructive.

MARQUARDT: Joly went on to say that they are exerting what she called maximum pressure on the White House to back off these tariffs. And as distracting as they may be to the conversations here at NATO, she said the goal is to emerge from these two days of meetings with a united message.

It does not appear that Joly or the other foreign ministers are holding these tariffs against Rubio himself. Everybody is being friendly. There was the potential for an awkward sit down between Rubio and his Danish counterpart. The Trump administration has made no secret of their desire to annex Greenland, which is a Danish territory.

But we're told by the State Department that that did not come up. So Rubio has had to grapple with all kinds of issues during these two days of meetings here at NATO.

Alex Marquardt, CNN at NATO headquarters.

(END VIDEOTAPE)

SOLOMON: A major shakeup of the U.S. intelligence community. We have learned that the Trump administration has fired the director and deputy director of the National Security Agency. Now, it's not immediately clear why General Timothy Haugh, as well as his second in command, Wendy Noble, were let go.

[04:40:00]

But according to sources, their removal comes after a meeting Wednesday between President Trump and Laura Loomer, a far right conspiracy theorist who once claimed that 9-11 was an inside job. Loomer apparently urged the president to remove a number of officials on the National Security Council for disloyalty. President Trump defending the firings earlier Thursday and said that Loomer was not involved.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Laura Loomer is a very good patriot. She is a very strong person, and I saw her yesterday for a little while and she makes recommendations of things and people and sometimes I listen to those recommendations like I do with everybody, I listen to everybody and then I make a decision.

(END VIDEO CLIP)

SOLOMON: Loomer was an influential voice around President Trump during the 2024 campaign, even though several of his advisers did try to keep her at a distance.

Well, still ahead for us, a major automaker reacts to Trump's tariffs by slowing production and laying off hundreds of American workers.

Meanwhile, the head of the United Auto Workers Union says that blame for those layoffs belongs to the company, not the tariffs. We'll hear from him coming up next.

[04:45:00]

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SOLOMON: Welcome back. Hundreds of American auto workers are already facing the fallout from President Trump's tariffs. Automaker Stellantis has paused production at some of its assembly plants in Canada and Mexico because of the new tariffs.

And 900 U.S. hourly employees who make auto parts for the factories are being temporarily laid off. They work at facilities in the Midwest, two in Michigan and three in Indiana. Stellantis makes vehicles under 14 brands, including Chrysler, Dodge, Jeep, Maserati and Alfa Romeo.

Now, the head of the United Auto Workers Union is slamming those Stellantis layoffs. Shawn Fain hailed Donald Trump's massive tariffs, saying that they will bring jobs back to U.S. auto plants. And he says that Stellantis could have done just that instead of laying off hundreds of workers.

Take a listen.

(BEGIN VIDEOTAPE)

SHAWN FAIN, PRESIDENT, UNITED AUTO WORKERS: It's more of the same from Stellantis, unfortunately. You know, it's interesting. You know, the administration has been very clear that these these tariffs are coming. They backed off twice now. And now that it's time to be implemented, you know, Ford, you know, obviously has been proactive. They dropped the price of vehicles.

They're extending discounts to consumers. GM announced they're going to bring some work back. And meanwhile, Stellantis, who's had several months to prepare, announces that they're going to use employees as collateral damage. It's more of the same.

These companies can build new plants. But the thing they need to do in the immediate to address this crisis in this country is use the excess capacity that they already have.

And like I said, you know, we could be producing Ram trucks right back at Warren Truck, where they've been producing them for 80 years within a month. It's a choice the company's making. And it's a choice the company's making to sacrifice employees today versus doing the right thing.

You know, so there's a lot of opportunity. And, you know, and this goes back just to a bigger issue. I mean, working class people in this country have been left behind for decades by a broken trade system.

Tariffs aren't the solution to everything. Tariffs are a tool in the toolbox. But ultimately, we've got to fix the broken trade system.

And that's the part, unfortunately, when we hear all these talking heads talk about the crisis with the stock market dropping. Where was the cry out of the crisis when millions of jobs were leaving this country the last 20 or 30 years?

(END VIDEOTAPE)

SOLOMON: There is also growing concern over how the massive new tariffs will affect farmers and ranchers. During the first Trump presidency, his administration paid them billions of dollars to make up for their losses during his trade war with China. The American Farm Bureau warning last month that the new tariffs will take a toll on rural America.

But U.S. Agriculture Secretary Brooke Rollins claimed that agricultural workers understand and will benefit down the line.

(BEGIN VIDEO CLIP)

BROOKE ROLLINS, U.S. AGRICULTURE SECRETARY: They understand that there may be a short time of uncertainty, but for the long haul, as we restructure the American economy and the government, American economy and our private sector, with the government playing a role in that, President Trump's vision of using tariffs. At the end of the day, this president committed to putting Americans first. And as part of that are our farmers and our ranchers.

(END VIDEO CLIP)

SOLOMON: Rollins reportedly ignored a question about what the Trump administration considers short term exactly. This week, two key Republican senators who come from states with heavy agricultural interests refused to say whether they support the tariffs.

All right, still ahead for us, picking up the pieces. Still ahead, a series of deadly storms leaves a trail of devastation across the central U.S. We'll be right back.

[04:50:00]

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SOLOMON: Welcome back. A powerful storm slammed the central U.S. this week and authorities are warning that it could trigger, quote, generational flooding in the days ahead. Dozens of powerful tornadoes ripped through the region, killing at least seven people.

Houses were leveled across Arkansas, Mississippi, and Tennessee. The storms also brought heavy rain and flash flooding. More than a dozen water rescues took place in Nashville. Authorities warning people to prepare for more tornado and flood alerts as the storm continues into the weekend.

Slovakia is planning to cull 350 bears after a rising number of bear attacks, the latest leaving one man dead. According to the government, almost 2,000 bear attacks were reported last year.

Environmental groups have criticized the decision, saying that the call is a violation of Slovakia's international obligations.

Denmark's prime minister has a message for the U.S. You cannot annex another country.

(BEGIN VIDEO CLIP)

METTE FREDERIKSEN, DANISH PRIME MINISTER: This is not only about Greenland or Denmark. This is about the world order that we have built together across the Atlantic over generations. You cannot annex another country, not even with an argument about international security.

(END VIDEO CLIP)

[04:55:00]

SOLOMON: Prime minister made that statement during a trip to Greenland, an autonomous territory that is part of Denmark. President Trump has called for making Greenland part of the U.S.

Vice President J.D. Vance visited the island last week and claimed that the U.S. would do a better job of protecting Greenland. But the prime minister rejecting that and saying that the U.S. should collaborate with Denmark on Arctic security.

Her comments come as U.S. Secretary of State Marco Rubio met with his Danish counterpart on the sidelines of a NATO meeting. The State Department said that Rubio affirmed, quote, strong relationship between the two countries.

OK, that's going to do it for this hour. Thanks for joining us here on EARLY START. I'm Rahel Solomon in New York. EARLY START continues right after this short break.

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