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Early Start with Rahel Solomon
U.S. Official Says Tariff Exemptions On Tech Are Temporary; Last-Minute Filers Prepare For April 15 Deadline; Rory McIlroy Wins First Green Jacket And Career Grand Slam. Aired 5:30-6a ET
Aired April 14, 2025 - 05:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[05:32:15]
RAHEL SOLOMON, CNN ANCHOR: Welcome back.
The Trump administration is now warning that an exemption for many electronics from its latest tariffs won't last long. The U.S. commerce secretary says that this is only a temporary reprieve for products like smartphones and laptops, and that new tariffs will be announced in a month or two.
President Trump says that "nobody is getting off the hook." Here's what he told reporters Sunday about new tariffs on semiconductors, the chips that power many consumer electronics.
(BEGIN VIDEO CLIP)
DONALD TRUMP, (R) PRESIDENT OF THE UNITED STATES: The tariffs will be in place in the not distant future. Because as you know, like we did with steel, like we did with automobiles, like we did with aluminum, which are now fully on, we'll be doing that with semiconductors, with chips, and numerous other things. And that will take place in the very near future in order to uncomplicate it from a lot of other companies because we want to make our chips and semiconductors and other things in our country.
(END VIDEO CLIP)
SOLOMON: OK. Now I want to welcome in Scott Devitt, the managing director of consumer internet at Wedbush Securities. He joins us live from Raleigh, North Carolina. Scott, great to see you this morning. Thanks for waking up early to be with us.
And I want to go over the last 48 hours --
SCOTT DEVITT, MANAGING DIRECTOR, CONSUMER INTERNET AT WEDBUSH SECURITIES: Good morning.
SOLOMON: -- because if you weren't watching closely, you might have missed it.
So over the weekend, late Friday, we learned that these tech products would be exempted much to the celebration of the tech community. Then Sunday morning Commerce Secretary Howard Lutnick said this. Take
a listen.
(BEGIN VIDEO CLIP)
HOWARD LUTNICK, U.S. COMMERCE SECRETARY: Our medicines and our semiconductors need to be built in America and Donald Trump is on it. He's calling that out. So you should understand these are included in the semiconductor tariffs that are coming, and the pharmaceuticals are coming. Those two areas are coming in the next month or two. So this is not like a permanent sort of exemption. He's just clarifying that these are not available to be negotiated away by countries. These are things that are national security that we need to be made in America.
(END VIDEO CLIP)
SOLOMON: So, Scott, this morning is it clear to you where things stand right now?
DEVITT: Well, it's day by day, you know. I think that as of Friday evening we thought the tariffs were coming off. They're being put in a 20 percent bucket, and they're being reimposed in the next 30 to 60 days according to what it seems like Lutnick is saying.
And it's tough because this is all part of a public negotiation that's going on to know where this actually ends, and it's highly disruptive for the companies that are trying to run their businesses as the negotiation is going on. Businesses are run daily. Stock markets open Monday to Friday. So it makes things pretty tumultuous in the meantime.
[05:35:00]
SOLOMON: Yeah, and the response that we've seen in the markets. Asian markets all closing higher. European markets all higher. U.S. futures all higher.
Scott, is that a belief, in your view, that the market sees this as being sorted out or that at the very least, that tariff rates when they come will at least be lower than 145 percent?
DEVITT: Well, I think had it stood where we were -- if the -- if the members of the cabinet didn't speak Sunday the market would be up more. And so it's still better than where we were Friday but not necessarily as good as what it looked like in terms of the disclosure that was given before they opened their mouths on Sunday morning.
So I think that's why the market is up. It would be up more because it looks like that there's negotiation that's happening that is going to lead to a better outcome for the technology companies. It's just still very uncertain as to where that's going to be and it's still going to be somewhere between one month and three months by the time we get there.
SOLOMON: Yeah. And so how are companies -- and this is why I love speaking to analysts because you guys really kind of get in the nitty gritty with these companies. The only people who know these companies better are the companies perhaps themselves.
But how are they responding? I mean, what are you hearing? Are they confident that they'll be able to sort of weather these tariffs or even avoid them over the next 3 1/2 years or are they starting to make plans to operate in what could be and what looks like it'll be a higher tariff environment?
DEVITT: Well, Apple supposedly flew five planes of iPhones in -- you know, prior to this. And so that gives you some indication of what some companies may be doing.
I think it's just a -- it's a highly uncertain time to run a business, and so companies are doing scenario analyses around various outcomes. But it's very difficult, particularly for public companies -- large multinationals -- the ones that are most impacted by this --
SOLOMON: Um-hum.
DEVITT: -- to be able to forward forecast the business in an environment like this. And I think that's what you hear from the executives and that's what you hear during earnings season coming up over the next month.
SOLOMON: And so then how difficult does it become to sort of price these stocks? I mean, if the actual operating of these companies is uncertain, how much more uncertain does that become to try to wrap your head around how they should be properly valued?
DEVITT: Well, you see the daily movements that are happening right now, and some would say it's irrational. But when there's this level of uncertainty and you have businesses that are priced on future cash flows and the future cash flows are so unknown, it's actually quite rational that the market is trading up on every single data point that comes out of Washington.
SOLOMON: OK, interesting.
And then lastly, I just wanted to get you to respond to something. I mean, what we just heard from the commerce secretary there and what we've heard from the president is that these industries -- semiconductors, for example -- they are -- they have to be considered differently because of the national security implications.
I mean, your response to that. I mean, are these the type of chips that have national security implications? I mean, just sort of make sense of that for us.
DEVITT: Sure. I think there's categories that some think where more manufacturing should be done in the U.S. to protect the U.S. from periods where it cannot access those types of supplies -- semiconductors being one, health care being one, rare earth mineral being another.
And so you've had 50 years of the U.S. outsourcing the manufacturing of that and frankly, financial markets -- stock prices and otherwise -- benefitting from that some would argue -- the American worker not so much. And with kind of a blunt instrument that this administration is trying to reverse 50-plus years in under five months.
So it's painful, but is it the right thing to do? I mean, that's a debate --
SOLOMON: Yeah.
DEVITT: -- for another day. It's happening and I think that's the backstory to it.
SOLOMON: Yeah, and that's a fair point. It's obviously a very personal debate and conversation that everybody has to have with themselves. But this idea of how much pain this will cause -- I think that really is sort of the overhang over the markets certainly.
Scott Devitt, appreciate you being here this morning. Thank you.
DEVITT: Thank you.
SOLOMON: All right. And still to come, time is running out to get your taxes done. We will speak to a personal finance expert if you still haven't on how to prepare and what to do with your money if you're expecting a refund in these turbulent times.
We'll be right back.
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[05:43:50]
SOLOMON: Welcome back. I'm Rahel Solomon. And here are some of the stories we are watching for you today at 5:45 -- just about.
President Donald Trump will meet with Salvadoran President Nayib Bukele at the White House today. This comes as the Trump administration continues deporting migrants it claims are gang members to El Salvador's CECOT mega prison. The White House has mistakenly deported at least one man, a father of three with protected status, to El Salvador.
The tour company operating the sightseeing helicopter that plunged into the Hudson River last week will shut down immediately. The FAA announcing Sunday that it is also launching a review of the company's license and safety record. Six people were killed in the crash.
And Pope Francis making a brief visit to St. Peter's Square where worshippers were celebrating Palm Sunday as part of the Christian holy week. The pope has made several unannounced appearances in recent days. This is despite his ongoing recovery from double pneumonia which kept him hospitalized for five weeks.
All right, what's next for markets, tariffs, and U.S. economic relations with the rest of the world, and will there be some calm after so much recent volatility?
[05:45:05]
Our Anna Stewart looks at the business week ahead.
(BEGIN VIDEOTAPE)
ANNA STEWART, CNN CORRESPONDENT: Good morning, Rahel.
World markets will be following the latest tariff news closely this week as countries try to secure a deal. U.S. President Donald Trump hosts the El Salvador president today, and U.S. Treasury Secretary Scott Bessent is in Argentina to meet with President Javier Milei.
Now, like most Latin American countries, Argentina and El Salvador face the minimum 10 percent tariff, but President Milei says he is pushing for zero tariffs.
Now, how that goes will be closely watched by Europe. The EU trade chief is in D.C. to meet his U.S. counterparts. And on Thursday, Italian President Giorgia Meloni will meet with the U.S. president. She'll be looking to secure her reputation as Europe's Trump whisperer.
Also Thursday, we get a decision from the European Central Bank. A rate cut is priced in by the markets but it's comments on tariffs that will be closely watched.
Wall Street banks Goldman Sachs, Bank of America, and Citi all report over the next few days with pressure to reassure investors after last week's volatility that Friday should bring some relief from the market whipsaw of the last fortnight.
Equity markets are closed for Good Friday -- excellent news. Hopefully we can all enjoy the Easter weekend before it reopens.
Back to you.
(END VIDEOTAPE)
SOLOMON: Thank you, Anna.
Before we can celebrate Easter, if you celebrate, we have to survive tax day. Tax day is upon us here in the U.S. tomorrow. Tuesday is the deadline to file.
Let's talk about it all with Michelle Singletary. She is a personal finance columnist for The Washington Post. She is also the author of "What To Do With Your Money When Crisis Hits: A Survival Guide." The perfect person to talk to this morning. She joins us from Bowie, Maryland. Michelle, always a pleasure to see you.
April 15 always comes around so quickly I feel like for me. For those who have yet to file any last-minute tips?
MICHELLE SINGLETARY, PERSONAL FINANCE COLUMNIST, THE WASHINGTON POST, AUTHOR, "WHAT TO DO WITH YOUR MONEY WHEN CRISIS HITS: A SURVIVAL GUIDE": Well, if you owe, definitely file on time. And even if you don't have the money to pay all your tax or only just part of it, you should still file because there's a huge penalty when you don't file on time and you don't file when you owe. So there's a penalty for filing late and there's a penalty for not paying what you owe on that date. But again, if you owe, the IRS has payment plans, but you want to get that return in regardless.
SOLOMON: Michelle, I imagine in this environment you must be asked, and people have to be wondering, is it -- is it worth it to file at all because with all of the cuts and the headlines, I mean, surrounding the IRS? I mean, what do you say when people inevitably ask you that question?
SINGLETARY: Uncle Sam going to get his money so you better file. And a lot of the filing is electronic and automatic -- the returns come in. And so for many returns there's not a person looking at your return. There's a machine, and the machine works 24/7. So don't listen to what you hear on the internet about don't file. Nobody's going to know if you don't file. Well, the IRS will know for sure. So please file your return, especially if you owe.
SOLOMON: Yeah. The headline being "Uncle Sam is going to get his money." You better believe that.
Michelle, if you are expecting a refund do the normal rules apply in a market like this? I mean, should people invest in this market? Should they build a bigger cash pile? Because, I mean, I feel like for every person and for every analyst that I say -- that I hear and that I see saying buy the dip. There's another one saying actually, maybe you should be more cautious because we're in for a rocky period.
SINGLETARY: I think if your finances are really tight, I would hold onto the cash. Maybe some people, particularly people who wouldn't get a large refund -- they want to -- maybe there was a couch they wanted or a vacation they wanted to take. But in this environment, I would say hoard that cash.
If you have debt you want to definitely try to pay some of that off. If your emergency fund is low fill that up or do both. Pay some debt down and fill the emergency fund up. This is definitely a time where cash is king.
SOLOMON: Um-hum.
Emergency fund being what? Three to six months, six to nine? Do you sort of add to that in this environment just because there's so much uncertainty?
SINGLETARY: If you can, make that three to six months, but a lot of Americans cannot.
SOLOMON: Um-hum.
SINGLETARY: You know, that could be a lot of money because it's based on your monthly expenses, so that could be several thousand dollars.
SOLOMON: Um-hum.
SINGLETARY: So I would say do whatever you can to have a cash cushion. Anything will help if you lose your job because of the tariffs. I mean, there are going to be a lot of businesses that are going to be impacted by this, and they may end up having to lay off people.
SOLOMON: Um-hum.
SINGLETARY: And so in those instances you want as much money as at hand to pay your bills.
SOLOMON: And what if you feel comfortable on the job front and you feel like you have a decent cash cushion? Where would you suggest people invest their money right now given the uncertainty that's in the market?
[05:50:00]
SINGLETARY: I don't know. I'm just saying keep that cash, y'all.
SOLOMON: Yeah, I know. I know.
SINGLETARY: I mean, I think -- if you are on a system where you're already putting money in on a regular basis -- it's called dollar cost averaging -- I would continue that. But I'm not so sure I would put any extra right now.
SOLOMON: Yeah.
SINGLETARY: Because honestly, there's so many industries that are stressed right now and you might be in that industry, and you are going to need that money.
SOLOMON: Yeah.
SINGLETARY: So I would be a little cautious about dumping a lot of money outside of your normal way that you might invest it.
My husband and I put money in every month on a regular basis no matter what. We're not changing that but we're not putting anything extra.
SOLOMON: Hmm, that's really interesting. It'll be really interesting to see too -- Wednesday when we get retail sales data -- if people are sort of heeding that advice. If people are already starting to pull back because of the uncertainty, or on the flipside Michelle, I don't know if you've seen. I've seen some retailers saying buy now before the tariffs go into effect. So it's just really interesting to watch.
But Michelle Singletary, always great to have your insights and advice. Thank you. She's the personal finance columnist for --
SINGLETARY: Thank you.
SOLOMON: -- The Washington Post. Great to see you.
All right. Coming up, the Coachella Music Festival in California had an unexpected appearance this weekend. Senator Bernie Sanders took to the stage to deliver a call to action for the thousands in attendance.
CNN's Gabe Cohen has more details.
(BEGIN VIDEOTAPE)
SEN. BERNIE SANDERS (I-VT): Now we've got a President of the United States who --
(Booing)
I agree.
GABE COHEN, CNN CORRESPONDENT (voiceover): That's Bernie Sanders making a surprise appearance at Coachella Saturday night where festivalgoers booed the mention of President Donald Trump.
SANDERS: -- and the future of what happens to America is dependent upon your generation.
COHEN (voiceover): It was an appeal to younger voters. The Vermont senator spoke ahead of singer-songwriter Clairo's set. Sanders emphasized many of his longstanding political views like economic and equality and universal health care, urging the audience to vote against Trump's policies.
SANDERS: We need you to stand up and to fight for justice.
COHEN (voiceover): The Coachella appearance comes just days after CNN's town hall with Sanders as the senator continues his nationwide tour of political rallies with New York Rep. Alexandria Ocasio-Cortez.
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SOLOMON: Our thanks to Gabe there.
And coming up, Rory McIlroy finally conquers Augusta winning his first green jacket. The dramatic playoff and completing one of the rarest feats in the game of golf.
(BEGIN VIDEO CLIP)
RORY MCILROY, 2025 MASTERS CHAMPION: I've literally made my dreams come true today. And I would just -- I would say that every boy and girl listening to this that believe in your dreams and if you work hard enough and you put the effort in that you can -- you can achieve anything you want.
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[05:57:13]
SOLOMON: Welcome back.
Rory McIlroy has won his first Masters tournament giving his long- awaited career grand slam winning each of the sports four majors. He's only the sixth player ever to accomplish that feat and the first since Tiger Woods did it 25 years ago.
CNN's Don Riddell has more from Augusta.
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DON RIDDELL, CNN WORLD SPORT: I've been covering golf on CNN for more than 20 years and I've been a fan of the game for my whole life. And I don't think I've ever experienced as much nerve-jangling drama and pure edge-of-the-seat entertainment as this 89th Masters. Here, on Sunday, we quite literally saw it all.
At stake for Rory McIlroy, a place in the history books. The first green jacket and the chance to enter the pantheon of greats alongside Gene Sarazen and Ben Hogan, Gary Player, Jack Nicklaus, and Tiger Woods as the only men to win all four of the major tournaments.
Standing in his way that weight of history and the psychological scar tissue of a catastrophic meltdown her in 2011 when McIlroy blew a seemingly comfortable third-round lead of four strokes.
There were moments of madness. A double bogey on the opening hole with which McIlroy's two-shot lead evaporated immediately. Another double on 13 seemed like it might derail him completely.
Several times during the afternoon his body slumped under the intolerable weight of expectation, and he sometimes looked to be on the verge of tears. And yet, he kept bouncing back producing a series of career-defining shots to stay in the fight.
But with history in the palm of his hand there was yet another misstep on 18 as he bogeyed the hole setting up a playoff with Justin Rose who had come from seven shots behind. But once again McIlroy recovered his composure sinking the birdie putt on the first extra hole to win the tournament and complete one of the most emotional and extraordinary narrative arcs in all of sports.
MCILROY: It feels incredible. This is my 17th time here and I started to wonder if it would ever be my time. And I think the last 10 years coming here with the burden of the grand slam on my shoulders and trying to achieve that. Yeah, I'm sort of wondering what we're all going to talk about going into next year's Masters.
RIDDELL: It would be hard to overstate the magnitude of this accomplishment and how hard it was to pull off. McIlroy is the first Masters champion who made four double bogeys in the tournament.
And whereas the other grand slam golfers completed the set at either the first or the third time of asking, McIlroy needed 11 attempts. That's why his emotion was so unbridled.
This truly has been the most epic tournament to witness and experience here at Augusta National.
Back to you.
(END VIDEOTAPE) SOLOMON: All right, Don. Thank you for that.
And thank you for joining us here on EARLY START and starting your morning and starting your week off with us. I'm Rahel Solomon live in New York. We leave you now with this beautiful skyline of New York City. "CNN THIS MORNING" starts right now. I'll see you tomorrow.
