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Early Start with Rahel Solomon

Trump's Latest Tariffs Exempt Smartphones and Electronics; Suspect Arrested After Arson Attack at Pennsylvania Governor's House; Rory McIlroy Completes Career Grand Slam with Dramatic Play-Off Win at Augusta National. Aired 5-5:30a ET

Aired April 14, 2025 - 05:00   ET

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

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RAHEL SOLOMON, ANCHOR, EARLY START: Good morning and welcome to our viewers joining us from the U.S. and all around the world, I'm Rahel Solomon, it is Monday, April 14th, 5:00 a.m. exactly here in New York, and straight ahead on EARLY START.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We're doing really well, and financially, our country is going to be stronger than it's ever been.

UNIDENTIFIED MALE: It's just absolutely bonkers. Got rid of them, and then he said they're coming back awfully soon.

UNIDENTIFIED MALE: He had a high tariff and he changed them and he changed them and he changed them.

SEN. ELIZABETH WARREN (D-MA): Donald Trump is playing red light, green light with tariffs.

GOV. JOSH SHAPIRO (D-PA): It is not OK. No one will deter me or my family or any Pennsylvanian from celebrating their faith openly and proudly.

RORY MCILROY, PROFESSIONAL GOLFER: What are we all going to talk about next year?

(LAUGHTER)

MCILROY: It's a dream come true. It's the best day of my golfing life.

(END VIDEO CLIP)

SOLOMON: It's a new week, and so far at least, global markets are in the green. Don't you love to hear that? This is after the Trump administration appeared on Friday to exempt many electronics from its sweeping tariffs. U.S. futures positive, positive hours before Wall Street opens. Futures all up between 1.1 percent, and let's call it 1.8 percent for Nasdaq futures. Taking a look at the Asia Pacific region, markets also closed solidly higher there between three quarters of a percent for the Shanghai Composite to 2.4 percent for the Hang Seng. And taking a look at European markets, where markets are also green, FTSE 100 up 2 percent, France up about 2.2 percent and DAX 2.5 percent.

Now, these moves higher across the board come despite comments from White House officials over the weekend, which have added even more confusion to these tech exemptions. U.S. Commerce Secretary Howard Lutnick says that there is only a temporary reprieve. This is only temporary for electronics like smartphones and laptops, and that new tariffs will be announced in a month or two.

And President Donald Trump says that, quote, "nobody is getting off the hook." He defended his tariff policies while speaking to reporters aboard Air Force One Sunday night.

(BEGIN VIDEO CLIP)

TRUMP: We have a tremendous country. We have a country that's much richer today than it was a few months ago. We have a financial system that's very respected, and we're going to do great. And we were taken advantage of and ripped off by every country all over the world, almost just about. They laughed at us. We were run by foolish people and they took advantage of our country. And we're just not going to let that happen anymore.

(END VIDEO CLIP)

SOLOMON: Democratic lawmakers meantime taking a different view, slamming the President for the confusion over his shifting tariff policy.

(BEGIN VIDEO CLIP)

WARREN: You can't get an economy strong and moving forward when it's loaded with chaos and corruption. Investors will not invest in the United States. When Donald Trump is playing red light, green light with tariffs.

SEN. MARK KELLY (D-AZ): President contradicts himself multiple times every single week. He often can't remember what he said the day before. And he'll go 180 degrees on multiple issues.

(END VIDEO CLIP)

SOLOMON: Meanwhile, the European Union's trade commissioner is expected to meet with his U.S. counterparts in Washington later today. An EU spokesperson says that he hopes to secure a tariff deal with the U.S. To that end, let's bring in CNN's Nic Robertson, who joins us live from London. Nic, good morning to you. Beyond the obvious goal, of course, of lowering tariffs for Europe, what is Europe hoping to gain from this trip?

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: You know, I think it's trying to gain a little bit more certainty, a little bit of a clearer understanding that they just don't feel that they have from the United States right now of what Europe can do to improve the tariff situation at the moment.

I mean, look, if you go back to last week, the European Union decided its position on the aluminum and steel tariffs that the United States had decided 25 percent. That was back in February. So, the European Union took several weeks to figure out that position.

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And just as it was announcing that, that its response to those tariffs -- then the horizontal tariff, if you will, that 20 percent tariff that the United States was putting on Europe, on the European Union, that was lowered to 10 percent. And then this sort of 90-day period to have negotiations. The European Union did the same thing. It said, OK, we will pause the tariffs that we're putting in place.

And it was -- it's been criticized for that. And the European Union's response has been, look, we want to be seen as a safe place to do business where there's predictability, where there's certainty. These are the things that businesses need, and they feel in contrast right now, the United States isn't offering that.

So, Maros Sefcovic, the Europeans Trade Commissioner, who will be there meeting with Howard Lutnick later today in Washington, will try to begin a process of conversations that can try to get into more details of what the United States wants. The ideas that some of these tariffs on the European Union can be headed off by the European Union, buying more liquefied natural gas from the United States LNG.

But how much and precisely when? These are things that the European Union isn't clear about. The European Union particularly feels vulnerable to potential higher tariffs on pharmaceuticals, which we've heard from the President over the weekend and from other white people in the White House administration that this could be coming very soon.

The same with semiconductors, chips, other electronic items potentially, and that can have an effect on other revenue streams for the European Union. Of course, they need some of these chips and things like that for their car manufacturing industry. It's the precise certainty and what can be done to get around this current tension that Shashkevych(ph) will try to achieve.

I don't think anyone is really expecting that they will land some kind of deal, but if they -- if the conversations go well, and there's a positive tone, then that can obviously have an influence in calming the markets. But I don't think anyone is under any illusions in Europe that there aren't more tariffs coming, and probably this week.

SOLOMON: Yes, I mean certainty is certainly key in this market. Certainly worth its weight in gold. Nic Robertson, thank you. Well, reporting for us live there in London. Keep an eye on the markets, but in the meantime, Pennsylvania police say that a 38-year-old man is in custody in connection with an arson attack at the home of the state's governor. Now, although firefighters were able to put out the flames, the house

was significantly damaged. Governor Josh Shapiro's family was woken up by police and evacuated from their home. The governor says that the attack was targeted, but it will not keep him from openly practicing his faith.

(BEGIN VIDEO CLIP)

SHAPIRO: If he was trying to terrorize our family, our friends, the Jewish community who joined us for a Passover Seder in that room last night. Hear me on this. We celebrated our faith last night proudly, and in a few hours we will celebrate our second Seder of Passover again, proudly. No one will deter me or my family or any Pennsylvanian from celebrating their faith openly and proudly.

(END VIDEO CLIP)

SOLOMON: CNN's Danny Freeman has more now from Philadelphia.

(BEGIN VIDEOTAPE)

DANNY FREEMAN, CNN CORRESPONDENT (on camera): It was an extremely troubling and frightening night in Pennsylvania's capital after Governor Josh Shapiro's mansion, the governor's mansion residence, was set on fire intentionally, according to Pennsylvania state police. The main headline that we learned Sunday afternoon is that there was a suspect taken into custody, 38-year-old Cody Balmer, he'll be charged with attempted murder, terrorism, aggravated arson and aggravated assault.

That's according to the Dauphin County District Attorney. But here's a little bit of a timeline of the best that we understand as to how this all unfolded. On Saturday evening, Governor Josh Shapiro was holding a Passover Seder for the first night of the Jewish holiday of Passover. He was with his family, he had guests over at the governor's residence as well.

They all then went to sleep. And then at some point in the middle of the night, just before 2:00 a.m., Pennsylvania state police say this man, Balmer, jumped a fence at the governor's residence, evading state troopers who at that time actually realized that there had been a breach. The man was then able to break into the residence, set fire to the residence, escape then by jumping back over the fence.

He had homemade incendiary devices on him, according to Pennsylvania state police. Then, at 2:00 a.m., Governor Shapiro said that he and his family and some of his guests were staying over, were woken up by bangs on the door because first responders were alerting him that part of the residence was on fire.

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Thankfully, though, the fire was in a different part of the building from where the governor, his wife, family and guests were, and first responders were able to knock that fire down, amazingly, no one was injured. But again, now there is a multi-agency investigation ongoing into exactly what happened here. The investigation being led by the Pennsylvania state police, but also being assisted by the FBI.

And I just want you to listen to how Governor Shapiro characterized what he was feeling after this entire incident, clearly overwhelmed by the level of support that he's received from so many across the country after this incident. But also, he said that he will not be deterred by violence from doing his job or by practicing his faith.

SHAPIRO: This kind of violence is becoming far too common in our society, and I don't give a damn if it's coming from one particular side or the other, directed at one particular party or another, or one particular person or another. It is not OK!

FREEMAN: Now, Pennsylvania state police investigators say that this investigation is ongoing, and they're also reviewing security protocols at the governor's residence. At this time, CNN has not been able to get in contact with an attorney for Balmer. Danny Freeman, CNN, Philadelphia.

(END VIDEOTAPE)

SOLOMON: All right, still ahead, China's President Xi Jinping heads to Vietnam hoping to strengthen relations with southeast Asia in the face of tariffs. And later, Ukraine's Volodymyr Zelenskyy inviting Donald Trump to Ukraine. Coming up, why he believes it's crucial for the President to see the war firsthand.

Plus, hard to believe, but it's almost tax day here in the U.S. Coming up, we will ask what to do with your refund check. If you're expecting one in this turbulent market, we'll be right back.

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SOLOMON: Welcome back. With all the recent market volatility and uncertainty over Donald Trump's tariffs, China's President Xi Jinping is visiting southeast Asia with a message of economic stability and cooperation. He's beginning his trip in Vietnam, followed by Malaysia and Cambodia, three nations targeted by the Trump administration with high tariff rates before the temporary pause.

Let's go live now to Hong Kong, and Kristie Lu Stout. And Kristie Lu, talk to us a little bit about what we've seen so far and what we've heard so far from Xi.

KRISTIE LU STOUT, CNN CORRESPONDENT: Rahel, Chinese President Xi Jinping is on this sort of charm offensive as he makes this visit throughout the southeast Asia region. He is now in Hanoi, he touched down midday today. It is his first state visit. He'll be going next to Malaysia and Cambodia for a state visit. And he is seeking to deepen trade ties in Vietnam and in the region just as U.S. President Donald Trump is forging ahead with the trade war and the trade clash against China.

Now, earlier today, the Chinese President issued this signed statement, in it, he said there is no winner in a trade war. He also called for a deepening in the trade relationship with Vietnam. Let's bring up the statement for you. This from Xi Jinping saying, quote, "our two countries should resolutely safeguard the multilateral trading system, stable global industrial and supply chains, and open and cooperative international environment", unquote.

Now, "Xinhua" has been reporting that Xi Jinping will be meeting with the leadership of Vietnam including the President of Vietnam, and "Reuters", citing a senior government official in Vietnam is reporting that these two countries, China and Vietnam, are set to sign some 40 trade deals involving security, involving defense and even trade links.

Now, a number of political observers are watching this visit, this state visit across southeast Asia very closely. And one analyst who I spoke to, who is a Taipei-based analyst, Non-resident Fellow of the Atlantic Council, Wen-Ti Sung, he said that Xi Jinping is in the region to share love, quite in contrast to Donald Trump. Listen to this.

(BEGIN VIDEO CLIP)

WEN-TI SUNG, NON-RESIDENT FELLOW, ATLANTIC COUNCIL: And Xi's going to show them love, maybe some souvenirs along the way when they visit there, e.g. perhaps signing some new trade deal with these countries, perhaps some new upgrades in their strategic partnership agreement. All these are ways for China to kind of show that I'm on your side, it's safe to hang out with China if -- especially if you're concerned about the U.S.

(END VIDEO CLIP)

LU STOUT: Now, southeast Asia has a deep trading relationship with China as well as United States. So, this region needs to tread very carefully. Remember, Vietnam and Cambodia were among the hardest-hit nations by Donald Trump's reciprocal tariffs. Before the 90-day pause was announced, these were the tariff rates that they were up against, Vietnam facing 46 percent, Cambodia 49 percent, Malaysia, 24 percent.

All three countries are in talks with the U.S. government to find some sort of tariff relief. But today, all eyes are on Vietnam as it rolls out the red carpet for Xi Jinping, prepares to receive perhaps gifts, perhaps a new trade deal, but does not want to be in a position to displease Donald Trump. Rahel, back to you.

SOLOMON: Yes, it sounds like they're really caught between a rock and a hard place, sure. Xi Jinping and Donald Trump --

LU STOUT: Totally --

SOLOMON: Kristie Lu Stout, great to see you live for us there in Hong Kong. Thank you.

LU STOUT: Thank you.

SOLOMON: All right, and while the Trump administration continues negotiations with Russia, Moscow launched its deadly attack -- deadliest attack on Ukraine so far this year. Just ahead, the latest on the aftermath in the city of Sumy. And after a deadly crash into the Hudson River, the New York helicopter tour company is shutting down. Just ahead, what federal aviation officials are saying.

(COMMERCIAL BREAK)

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SOLOMON: Welcome back. A Russian drone strike has injured at least seven people in Odesa, Ukraine. The attack damaged civilian infrastructure and a medical facility as firefighters are now battling multiple fires across the city. This comes after Ukraine suffered the single deadliest Russian attack since 2023 on Palm Sunday.

Two ballistic missiles hit the northern city of Sumy, leaving at least 34 people dead and more than 100 hurt. President Trump says that he was told that Russia, quote, "made a mistake following that strike on crowded residential areas." Let's go to CNN's Salma Abdelaziz, who joins us live from London with more on the aftermath in Sumy. But what's the latest here, Salma?

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SALMA ABDELAZIZ, CNN REPORTER: Well, President Trump may be calling it a mistake. But Ukrainian officials are saying this was a deliberate targeting of civilians by Russia. They say that the central part of Sumy was essentially crowded at that time because of people gathering for prayers for Palm Sunday, that this was a two-pronged attack. One military official saying the second missile was likely filled with ammunitions that exploded mid-air to inflict maximum damage.

Ukrainian officials also accusing Russia of using cluster munitions in this attack. That, of course, is a ammunition that has tiny bomblets, tiny explosive devices that could spread across an area as large as a football field. And what President Zelenskyy is pointing to, who shared video of this horrifying aftermath from this strike, he is quickly pointing to negotiations of course, that are being led by the White House with Russia, and saying that President Putin is not a good faith actor.

I want you to take a listen to an interview that was recorded before this attack, but begins to express that sentiment from President Zelenskyy. Take a listen.

(BEGIN VIDEO CLIP)

VOLODYMYR ZELENSKYY, PRESIDENT, UKRAINE: Come to see people, civilians, warriors, hospitals, churches, children destroyed or dead. Come, look, and then let's move with a plan how to finish the war. You will understand with whom you have a deal. You will understand what Putin did.

(END VIDEO CLIP)

ABDELAZIZ: That's President Zelenskyy there inviting President Trump to come to the frontlines of Ukraine and witness the damage and the horror for himself. Now, President Trump has said, of course, that he wants this war over yesterday. His officials were meeting with President Putin directly last Friday, as they tried to make an agreement, make a deal happen.

But for the people of Sumy, as you can see there, the idea of a peace agreement seems very far away. In fact, Russia has been intensifying its attacks in the area as it works to regain territory in a nearby Kursk region. So, for those civilians and for President Zelenskyy himself, of course, it looks like Russia is saying one thing and doing another.

SOLOMON: Yes, interesting when the President was asked to clarify, when President Trump was asked to clarify what he meant by it was a mistake, he didn't really offer a clarification. He said, look, you're going to ask them, but they made a mistake. Salma Abdelaziz live for us in London, Salma, thank you.

And still to come for us, a closer look at President Trump's plan for tariffs on electronics, and how tech giants are reacting to the tumultuous back-and-forth changes. We'll be right back.

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