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One World with Zain Asher
CNN International: Trade War Intensifying: Global Markets Unsettled; Trump Imposes Sweeping New Tariffs On Trading Partners; China Announces 84 Percent Tariff Against United States. Aired 11a-12p ET
Aired April 09, 2025 - 11:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[11:00:00]
(COMMERCIAL BREAK)
ZAIN ASHER, HOST, "ONE WORLD": Retaliatory tariffs and countermeasures.
BIANNA GOLODRYGA, HOST, "ONE WORLD": One World starts right now.
China and now the European Union fire back, as Donald Trump's punishing tariffs take effect. This as Wall Street reacts to escalating trade war
once again.
ASHER: Plus, rescue workers are racing to find survivors who may still be trapped inside the deadly night club collapse in the Dominican Republic. We
will have the latest from the scene.
GOLODRYGA: And the Majors, the first major golf tournament of the year tees off tomorrow in Augusta, Georgia.
Hello, everyone. Live from New York, Bianna Golodryga.
ASHER: And I'm Zain Asher. You are watching One World.
An economic earthquake is threatening to send shockwaves throughout the globe, as the U.S. and China escalate an all-out trade war, and now the EU
is retaliating as well.
GOLODRYGA: And on Wall Street, the markets have been staging a bit of a rally, after closing down for four straight days, but right now, you see
the Dow taking a turn south, down three quarters of a percentage point there, the NASDAQ slightly up. In Europe, stocks are reversing earlier
gains and deep in the red as, once again, a massive sell-off continues. And this, of course, comes, as we noted, the EU taking its first swing at
Donald Trump's tariffs, pledging countermeasures to take effect next week. And let's take a look at the Asian markets. They were mixed with, of
course, the word of the month, uncertainty really driving the volatility.
ASHER: Yes. And right now, 84 percent tariffs on American goods are in effect after Beijing made good on a vow to retaliate against the United
States. This is in response to Donald Trump's latest levies on China that took effect at midnight, with a combined 104 percent rate on its imports.
But, despite the turmoil and the chaos unfolding pretty much across the world right now, on Tuesday, U.S. President appeared to mock countries,
make fun of them, we're trying to negotiate a deal.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT, UNITED STATES OF AMERICA: I'm telling you, these countries are calling us up, kissing my ass. They are. They are dying to
make a deal. Please, please, sir, make a deal. I'll do anything. I'll do anything, sir.
(END VIDEO CLIP)
GOLODRYGA: CNN's Phil Mattingly is in Washington for us. Vanessa Yurkevich joins us now live in New York.
Vanessa, let's start with you, because, like so many of us, Americans, consumers just want to know, how this is going to impact them, how it's
going to hit their wallets and win.
VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Yeah, and it's just impossible to keep up with the tariff lobbing that's going on right
now, back and forth, reciprocal on top of reciprocal. Let's just take one thing, like the iPhone, for example, something that many Americans, many
consumers, have just right in their pockets every single day. About 90 percent of iPhones are assembled in China, and they have just been hit with
a 104 percent tariff. But, the Commerce Secretary, Howard Lutnick, believes that all of that assembly will just move right back here to America, and
that is what President Trump has been indicating, his purposes, with this trade war. Listen to what Howard Lutnick said a little earlier.
(BEGIN VIDEO CLIP)
HOWARD LUTNICK, U.S. COMMERCE SECRETARY: 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. They're going to be mechanics.
(END VIDEO CLIP)
YURKEVICH: And so, the idea is that all of this manufacturing would move right back here to the U.S. But, let me just share some numbers about this.
It would cost Apple about $30 billion and three years just to move 10 percent of its supply chain to the U.S. And one analyst projects that if
iPhones were made here in the U.S., it would cost Americans $3,500 per phone. That's more than three times what it costs right now for Americans
to buy an iPhone. And let's look at the footwear industry, for example. The U.S. imports nearly all of our shoes that we wear every single day, three
quarters of that from China.
So, before the reciprocal tariff of 104 percent went into effect, a pair of running sneakers was about $150. Now with this tariff, it's going to be
$230. That is cost prohibitive for many, many Americans. And worth noting, guys, that there are major retailers out today warning about sort of this
uncertainty. They don't know what their bottom line is going to look like. Delta warned that their revenue could fall in this quarter, and Walmart,
which is the largest retailer in the world, pulled its financial guidance for this quarter because of the uncertainty around these tariffs.
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So, when you have big corporations, major companies, saying that they don't know what this is going to look like, that's obviously very concerning for
Wall Street. That's concerning for businesses, and that's also concerning for the American consumer.
ASHER: All right. Vanessa Yurkevich live for us there. Thank you.
Let me bring in Phil Mattingly, joining us live now. So, Phil, just in terms of what Republicans are saying, I understand that some Republicans
who -- which -- remember, this is the party that is traditionally supportive of free trade, some Republicans are actually voicing their
concerns to the President about the economic implications of these tariffs.
PHIL MATTINGLY, CNN CHIEF U.S. DOMESTIC CORRESPONDENT: Yeah. It seems like so long ago, right? What the President is pursuing here is antithetical to
traditional Republican ideology, as we all understood it for several decades, and yet, he now is the core and the heart of the Republican Party.
And so, what's been fascinating to watch Republicans, many of whom are diametrically opposed to even the general idea of what's been launched over
the course of the last several weeks, let alone over the course of the last 11 hours, is trying to figure out how to tell the White House they don't
know this is necessarily a great plan, but also not get into the crosshairs of President Trump. Now, there have been some Republicans, particularly
Republican senators, who have made clear they are very wary of the direction that this is going.
But, guys, I think it's important to note, Congress, long ago, handed off the tariff authority into -- over to the presidency. There is no sense,
while there are bipartisan efforts to try and get it back, that that's going to move anytime soon. These are the dynamics.
I think when you look at these dynamics, the kind of bilateral stare down we're watching between China and the U.S. right now, people need to
understand the severity of where this is, and it's not just because of the tariff rates and the retaliation very clearly in a tit for tat spiral on
some level, but it's also the words that we've heard from both sides. Obviously, Chinese officials saying for several weeks that they would,
quote, "fight to the end" when it came to a tariff war. Karoline Leavitt, the White House Press Secretary, saying yesterday, the President has a
"spine of steel", quote, unquote, underscoring kind of his posture on things.
But, when you talk to U.S. officials, it's also important to know kind of the underpinning of the decision move forward here, and that is the firm
belief that the U.S. market, that U.S. consumers can win in the long run in any trade war, including with China. Take a listen to what Treasury
Secretary Scott Bessent said this morning.
(BEGIN VIDEO CLIP)
SCOTT BESSENT, U.S. TREASURY SECRETARY: They have the most imbalanced economy in the history of the modern world. And I can tell you that this
escalation is a loser for them, that they have some very smart economists, the academicians, technocrats within their bureaucracy, and they would be
telling the leadership that we do not have the edge here. They are the surplus country, that their exports to the U.S. are five times our exports
to China. So, they can raise their terrorists. But, so what?
(END VIDEO CLIP)
MATTINGLY: And I just want to make very clear here, that what you heard from the Treasury Secretary is not some kind of hyperbolic brush back or
rhetorical threat that he is making just because he is on TV. That is firmly the belief of the economic team writ large across the
administration. That belief is animating the idea that, hey, anyone who wants to fight, anybody who wants to retaliate, the U.S. is more than
welcome to have that fight. What they haven't actually explained is if that is a fight and if it plays out over a significant period of time, who gets
hit, and likely it is U.S. consumers.
ASHER: All right. Phil Mattingly live for us there. Thank you so much.
I want to bring in Ken Rogoff. He is an Economics Professor at Harvard University, and a former Chief Economist at the International Monetary
Fund. He is also the author of "Our Dollar, Your Problem", which is actually out later on this month. Ken, thank you so much for joining the
program.
Before we begin, I just want to play our audience a soundbite from the Treasury Secretary in terms of what he said this morning. I'm going to roll
it and then we can discuss it on the other side.
(BEGIN VIDEO CLIP)
BESSENT: Last four decades, basically since I began my career in Wall Street, Wall Street has grown wealthier than ever before, and it continue
to grow and do well, but for the next four years, the Trump agenda is focused on Main Street. It's Main Street's turn. It's Main Street's turn to
hire workers. It's Main Street's turn to drive investment, and it's Main Street's turn to restore the American Dream.
(END VIDEO CLIP)
ASHER: So, Ken, can you explain to us how a trade war benefits Main Street in the United States?
KEN ROGOFF, PROFESSOR OF ECONOMICS, HARVARD UNIVERSITY: It can benefit some people because you're preventing imports of different goods. But, the -- I
mean, the American people are huge losers in this. I suppose there is this romance to bring back manufacturing jobs. I'm old enough when it was for
farming jobs, but the same thing is going to happen. We produce a lot of farming output in the United States, but it's automated. We're going to
produce more manufacturing, lower quality than we're getting now, but it will be automated.
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The idea that this is going to bring back manufacturing jobs in the long run, it's delusional. I mean, there are national security issues. China is
way ahead in ship building, but we're not going to build all the ships here. We need allies like Korea, Japan to help us with that. We're putting
tariffs on them too. I -- this is -- this policy is really hard to understand. Trump obviously thinks he can win. I think it's lose, lose.
GOLODRYGA: Well, Ken, to that point, it is one thing for targeted tariffs against an adversary, a rival like China. Here you have the President of
the United States really angering all of our allies and putting levies on them as well, and that's led some to ask, and maybe you can speak to this,
given the subject of your book, but how big of a concern is there that ultimately this, if we do end up in a recession, whatever this crisis,
wherever it leads us, could lead the U.S. dollar from not being the reserve currency that it has been for decades now?
ROGOFF: Well, it's going to diminish its stature. That's almost a done deal at this point. If you start throwing out the rule of law, and we have to
worry about what one person thinks, big man rule, what do we imagine is going to happen 2028 when there is a President Ocasio-Cortez or Gavin
Newsom or a mini MAGA person? I have no idea. I mean, I think it's -- your -- why would I invest long term into that is going to discourage people?
And then if you make trade hard, you make trade in finance hard also because it throws sand into the wheels.
ASHER: Ken, how might China try to shield its economy from the effects of this trade war with the United States? I mean, they've obviously talked
about strengthening regional ties with other Asian economies. They -- some people are fearful that Europe will get flooded with Chinese goods instead.
Just explain to us how China is going to sort of manage this crisis.
ROGOFF: Well, if we think about a silver lining to that, he is certainly hitting China when it's down. The Chinese economy is at a very weak point.
They don't have, like, a lot of capacity to do something with the exports they send to the U.S. Europe doesn't want them. Africa can't afford all of
them. That's same for South America. I mean, the only bright side I can think of this is that there are many who believe that China was going to
challenge Taiwan in some way soon, and we were going to end up having to do something, and maybe this is a dry run for the economic war that happens.
But, it's very difficult for China. It'll spill out into the rest of the world, but they're not going to give in. Xi is also a strong man. He is not
going to fold. He would lose space. He would lose his job if he folds. So, that's not going to happen.
GOLODRYGA: And one could argue that the Chinese people, especially given the authoritarian nature of that regime, will sadly be able to or have to
withstand more pain than the U.S. consumer will. So, in this game of chicken, I would imagine it's the U.S. that blinks first. But, Ken, if I
could just play sound for you on this issue of how likely a recession is now. We've heard from Walmart CEO. We've heard from Delta CEO, really
stress that the consumer and then spending is softening. They can't really forecast what the next quarter is going to look like or the month, that
matter. And JPMorgan CEO, Jamie Dimon, also weighed in when asked what he thinks this chances of a recession are. Here is what he said this morning.
(BEGIN VIDEO CLIP)
MARIA BARTIROMO, FOX BUSINESS NETWORK ANCHOR: Do you personally expect a recession?
JAMIE DIMON, CEO, JPMORGAN CHASE: I am going to defer to my comments at this point, but I think probably that's a likely outcome.
(END VIDEO CLIP)
GOLODRYGA: So, couple that with what we heard from the Treasury Secretary this morning, speaking to the Bankers Association, saying, listen, every
CEO I talked to says that we're in good shape. I mean, how do you square the two, and what is your prognosis for the economy right now?
ROGOFF: Well, you started with a really good economy. So, the old joke about, how do you make -- what's the easiest way to make a small fortune?
You start with a large one. We started with a really good economy. And so, it has a lot of room to fall. But, certainly the odds of a recession, if he
doesn't pull back quickly from this, I don't think he is going to, are very, very high. It's very hard to predict. By the way, over 50 percent at
this point. It didn't -- this is -- it didn't have to happen.
[11:15:00]
It's not just the tariffs. Certainly, people who voted against Trump do not believe in his policies. They do not think so, thinking, go well -- going
well. They didn't like DOGE. They didn't like a lot of other things going on. I mean, the Republicans who did vote for Trump, I think, are a little
more sanguine. But, even conservative ones I know, who aren't Ultra-MAGA, are really holding their breath now.
GOLODRYGA: Yeah. Again, all self-inflicted too. You're so right to note that this was an economy that Donald Trump inherited that was the strongest
in the world and managed to avoid a recession, and now we find ourselves constantly every day, it seems the chances of a recession get higher and
higher as this trade war continues.
Ken Rogoff, good to see you. Thank you so much.
ROGOFF: Thank you.
GOLODRYGA: And a quick programming note here on One World, we will have Janet Yellen, the former U.S. Treasury Secretary and Chair of the Federal
Reserve, on Thursday, that's tomorrow, to get reaction to President Trump's new tariffs. Be sure to tune into that.
ASHER: All right. Up next on One World, we're going to get to Beijing for more on the all-out trade war happening between the United States and
China, where will it stop, and what does it mean for the global economy.
GOLODRYGA: Plus, the man who thinks he can do what no other world leader has done before, convinced Donald Trump to drop tariffs with his own
country.
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ASHER: All right. We want to turn now to our top story, Donald Trump's trade war. There are no signs that either the U.S. or China is ready to
blink or back down in their tit for tat tariff battle.
GOLODRYGA: Yeah. The massive tariffs threaten to crush the $500 billion of trade that happens every year between the world's two biggest economies,
and experts say all of this could easily lead to a global recession.
With China's side of the story, here is CNN's Marc Stewart.
(BEGIN VIDEOTAPE)
MARC STEWART, CNN CORRESPONDENT: China has been very upfront about this. It said it would retaliate, and now it has. These latest targets, in
particular, will hit the agriculture industry in the United States, as well as farmers the hardest, with tariffs impacting key commodities like
soybeans and corn, part of this fight to the end playbook from Beijing.
Let's talk about the timing of all of this. The announcement came about two hours before the markets opened. Now, we don't know if this was something
deliberate or something of coincidence, but regardless, in this war of economics, making a move like this, so close to the market open, certainly
has the potential to rattle the markets.
[11:20:00]
China is remaining defiant, and it leads to the question, who is going to break first? Who is going to break first? Who is going to cave in first?
China maintains it has the economic initiatives to survive all of this, and for the moment, is turning its back on the United States about future
talks, saying the U.S. is not being genuine to have such serious conversations.
Marc Stewart, CNN, Beijing.
(END VIDEOTAPE)
GOLODRYGA: Well, while China and the U.S. seem locked in an escalating trade war, another Asian nation is taking a different tack when it comes to
dealing with Donald Trump. Trump says he is negotiating a special trade deal with South Korea, and things are, quote, "looking good".
CNN's Mike Valerio sat down for an exclusive interview with South Korea's leader, who says he can get Donald Trump to do something no other leader
has been able to do so far, and that is drop the tariffs.
(BEGIN VIDEOTAPE)
MIKE VALERIO, CNN CORRESPONDENT: Well, the headline here is that we now have a dramatic illustration, the differences between two approaches. We
have China leading the resistance, retaliating with tariffs of its own. And now in this new interview with South Korea's acting President Han Duck-soo,
we have an idea of South Korea's playbook, which is to come to the negotiating table, cool, collected, putting value in the strength of its
long-term alliance with the United States with the mentality that a deal can be made. In this new interview with South Korea's head of state, we
asked him, what is Seoul's strategy in Washington, D.C.? Listen to what he told us.
VALERIO (on camera): So, acting President Han, what is your message to President Trump?
HAN DUCK-SOO, SOUTH KOREAN ACTING PRESIDENT: First of all, we will cooperate with the United States and President Trump to make sure that we
can find some of the solutions to arrive at the win-win situations.
VALERIO (on camera): You do anticipate that this 25 percent tariff level will not stay. That's your anticipation.
DUCK-SOO: Depending on the negotiations.
VALERIO (on camera): That's certainly your hope.
DUCK-SOO: Yes.
VALERIO (on camera): Are you optimistic? How do you feel, on a gut level, these negotiations are going to go?
DUCK-SOO: About 57 countries actually are subject to that kind of tariff. So --
VALERIO (on camera): 25 percent, though. That's pretty steep for friends for generations.
DUCK-SOO: Well, it's a pity, because we are evaluated in that way.
VALERIO (on camera): Yeah.
DUCK-SOO: But, I think that that kind of different assessment can always happen in these kind of situations.
VALERIO (on camera): Should friends really be treating friends like this?
DUCK-SOO: Well, friendship should be compensated by sometimes the mutual economic, financial and other dimensional aspects. You can never say that
relations between United States and Korea, because we are friends, so everything should be condoned, and we don't care what happens.
VALERIO: Now, just a few hours after acting President Han Duck-soo down with CNN, the acting President had his first phone call, his first
communication ever with U.S. President Donald Trump, and the President posted on Truth Social that things seem to be looking good for a deal,
writing, quote, "We have the confines and probability of a great deal. Things are looking good."
So, the real test here will be if a country like South Korea comes to the negotiating table, putting the full faith in the value of its long-standing
alliance with the U.S., how far can its tariff come down for what it's worth? Han Duck-soo had served as Ambassador to the United States from
South Korea before the Trump years, and also before the Trump years, he was instrumental in getting the U.S.-South Korea free trade deal over the
finish line.
Mike Valerio, CNN, Seoul.
(END VIDEOTAPE)
ASHER: All right. Next, glass half empty. Why the outlook is looking bleak for European exporters, as the trade war escalates. We'll have more from
Paris.
GOLODRYGA: Plus, two Major League Baseball players are among the dead in a tragic night club roof collapse. The latest on the search efforts from the
Dominican Republic. That's just ahead.
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[11:25:00]
(COMMERCIAL BREAK)
ASHER: All right. Welcome back to One World. I'm Zain Asher.
GOLODRYGA: And I'm Bianna Golodryga. Here are some of the international headlines we're watching today.
The State Department confirms U.S. envoy Steve Witkoff will meet -- will attend a meeting with Iran in Oman on Saturday. The two sides will discuss
Iran's nuclear program. Even as the Trump administration seeks dialog with Tehran, it continues to impose maximum pressure. Today, we learned the
administration imposed new sanctions targeting Iran's nuclear program.
ASHER: And Ukrainian President Volodymyr Zelenskyy says Ukraine has captured two Chinese nationals fighting in the Russian army. It's unclear
whether they are Chinese soldiers or volunteers. Beijing, which has denied any involvement in Russia's war in Ukraine, says it's verifying the
situation.
GOLODRYGA: Germany's major centrist parties have reached a coalition deal. Chancellor-in-waiting, Friedrich Merz, of the Christian Democratic Union
Party, won February's federal election, but the party failed to secure a majority. Pressure was mounting to reach a deal with the center-left Social
Democratic Party amid recession fears.
ASHER: And a very mixed day on the global markets, as Donald Trump's sweeping tariff plan takes effect. The tariffs, which are America's largest
in a century, placed duties of up to 50 percent on imports from dozens of countries around the world, many of whom are set to begin talks with the
U.S. They include China, which now faces a U.S. tariff of at least 104 percent. And big sell-offs in Europe, where markets are down across the
board.
GOLODRYGA: Yeah. The EU has just approved its first countermeasures against Donald Trump's tariff plan, but we're still waiting on exact details.
Melissa Bell has more on what Americans can expect, as the trade war ramps up.
(BEGIN VIDEOTAPE)
MELISSA BELL, CNN SENIOR INTERNATIONAL CORRESPONDENT: All eyes very much here in Europe on Brussels this Wednesday to see what response will come to
the overnight imposition of a 20 percent tariff across the board on all European imports to the United States. The markets once again opening in
the red here in Europe, and so many questions for European industries.
Take, for instance, car makers, already hit by steel and aluminum tariffs, car tariffs, and now cars like Ferrari, built by definition in Italy, are
going to be a lot more expensive for Americans who hope to buy them in the United States. And that's not all. Europe is famous for so much that
Americans love their luxury market. For instance, in my little box, a few examples, the Chanel handbag, now the subject, of course, of that 20
percent tariff on any imports of its Chanel products to the United States.
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Camembert cheese, you can, of course, choose to buy American cheese as an alternative. There are those who would be happy to continue buying their
French cheese. Champagne, 27 million bottles of French champagne shipped to the United States in 2023. That's about to become a lot more expensive to
American consumers. Then there is the beer industry. European beer already hit again by aluminum tariffs. It's about to become a lot more expensive to
consume it in the United States.
And I would end with wine. One of the favorite things that Americans love about Europe, 2.5 billion euros worth shipped last year to the United
States. Now, the argument is that there is, of course, American wine that American consumers can turn to, except that that too is built on exchange,
American wine made with French oak often, and French corks and bottles brought from elsewhere. So, it isn't that American wine is going to get any
cheaper. It's going to get more expensive as well, and that is a great deal of the argument that's coming from the rest of the world. It is American
consumers that are going to be hit first and foremost with regard to some of the products that they love the most.
Melissa Bell, CNN, Paris.
(END VIDEOTAPE)
GOLODRYGA: Well, our next guest says everything Donald Trump is saying about the economy is untrue. Let's get more from Economist Anders Aslund,
who joins us from Washington. We only have a few minutes. So, I dare to ask you, if you want to just give us one or two headlines about what you
dispute from what Donald Trump has said. I mean, some of his latest posts are everything is just going to be fine. Don't panic. That's not the
reaction that we're seeing around the world from investors, from Americans, from Europeans. So, walk us through the facts.
ANDERS ASLUND, ECONOMIST: Well, to begin with, the reason why the U.S. has trade deficits, it is partly that the U.S. has a huge service surplus,
which is never mentioned by Mr. Trump. But, the fundamental reason is that the U.S. saves too little. The U.S. has a huge budget deficit, over more
than six percent of GDP each year, and this is financed by foreigners. The foreign investment in U.S. securities, bonds and stocks, is $32 trillion,
more than the U.S. GDP. So, the U.S. is benefiting from kind of foreign support over the U.S. economy, rather than the country. The U.S. share of
GDP in global GDP in 1980 was one quarter. It's still one quarter, while Europe and Japan have fallen behind. So, the U.S. in January of this year
was at the very peak economically, and now everybody is talking about recession.
ASHER: And so, just in terms of what the EU is doing to retaliate, we know that the EU has imposed tariffs on about $23 billion worth of American
goods in response, and those tariffs will go into effect in a sort of staggered response, April 15th, May 15 and December 1st. Just walk us
through what you anticipate in terms of there being a window to negotiate. So, for example, we know that the Italian Prime Minister Giorgia Meloni is
actually going to be in Washington on the 17th of April in a desperate bid to try to negotiate with the U.S. President. What does she need to say in
order to sort of de-escalate things here?
ASLUND: Well, the President of the European Commission, Ursula von der Leyen, has already said repeatedly, Europe wants to have the free trade
with the United States and Europe wants to negotiate. Europe is in favor of free trade, and I think that is the message that Prime Minister Meloni will
bring to President Trump, and probably she is best representative of Europe to talk with President Trump.
GOLODRYGA: It is one thing, Anders, because we've all experienced and covered global recessions. The old saying, when America sneezes, the world
catches a cold. It does appear that if these tariffs continue and go into effect, that it's not just the United States that will experience a
recession. Much of the world will as well.
What's different, and correct me if I'm wrong, is that there seems to be a lot of hostility and anger among who were thought to be U.S. allies, in
particular Europeans, and let's say this even predates these tariffs, specifically in terms of NATO and the U.S. approach to the war in Ukraine.
[11:35:00]
But, now with these tariffs, you're hearing from CEOs in Europe, from leaders, business leaders in Europe, as well as political leaders, that
their relationship with the United States may be permanently damaged because of this. I saw one headline at the Financial Times, and here was
the headline, "How to de-Americanify (ph) European companies through Trump's tariffs, because they prompted businesses across the pond to
question ties that have bound them to the U.S.?" Is there some truth to this concern? Are you hearing the same?
ASLUND: Well, of course, it's obvious. President Trump has started a trade war against the rest of the world, by and large, without any reason. The
new U.S. tariffs are 24 percent. That is an additional tax on Americans, while global tariffs were previously 2.5 percent in the Western world. So,
this is a massive damage both to the U.S. and to the rest of the world. And if you start a war against somebody, then you would expect that they will
get angry, and if there is more reason for the war, all the more so.
So, what will happen, or we already see happening, is that the U.S. is no longer considered a safe haven. The previously, for example, in 2008,
during the global financial crisis, money flowed into the U.S. Now we are seeing that the Treasury yields are rising quite sharply because the world
and the U.S. no longer trust the U.S. government to manage its economy.
ASHER: All right. Anders Aslund live for us there. Thank you so much. Appreciate it.
All right. Turning now to the Dominican Republic and that deadly nightclub tragedy, rescue workers are still desperately searching through the rubble,
looking for survivors after the roof of an iconic nightclub collapsed early Tuesday, killing more than 100 people.
GOLODRYGA: And the baseball community is mourning the loss of two former Major League players, Octavio Dotel and Tony Blanco, who are among the
dead. Authorities say at least 300 people were inside the night club during a merengue concert when the roof suddenly gave way. The performer, Rubby
Perez, was also killed during the collapse.
Our Stefano Pozzebon has more from Santo Domingo.
(BEGIN VIDEOTAPE)
STEFANO POZZEBON, CNN CONTRIBUTOR: The search and rescue operations here in the Dominican Republic are continuing this Wednesday morning. As you can
see, we are right in front of what used to be the entrance of this iconic night club, the Jet Set, at the heart of the Dominican capital. The area is
being cordoned by the Marines of the Dominican Navy. But, the search and rescue operations are continuing, and there are teams that have been
working here non-stop for the last 24 hours, really combing through the debris, going through with extreme care what -- going through what was the
rooftop of these iconic night club to try and find as many survivors as possible.
In the last few hours, we were able to speak with several of the relatives who are still here, waiting for answers, and for many of them, this wait is
what's most excruciating.
GEUDY GARVA, VICTIM'S RELATIVE (Interpreted): We have to wait to identify the bodies. The waiting, the waiting has been the most difficult thing,
really, because we don't know if he is in the hospital or if he is dead. If he is still in there, that's the thing that most -- I mean, because if he
is in there and died, OK, then we can start to mourn. But, the waiting to see if he is or isn't there, it's so awful.
POZZEBON: And even this Wednesday morning, as we are speaking, we're seeing more and more bystanders, friends, relatives, people who just come here
looking for answers. This place, the Jet Set, used to be renowned. It was famous throughout the Caribbean for the quality of its night life, for the
quality of its parties, and it is one of those parties where this tragedy occurred. Unfortunately, at the heart of a Santo Domingo (ph) merengue
concert, the rooftop collapsed, and we're learning today that more than 100 people have been killed.
For CNN, this is Stefano Pozzebon, Santo Domingo.
(END VIDEOTAPE)
GOLODRYGA: And still to come on One World, it is Masters Week in Augusta. We'll tell you what is on tap for today and what was served at a special
dinner last night.
ASHER: Plus, the CNN exclusive, we go inside El Salvador's maximum security prison, but it's now being used to house deportees from the United States,
that White House claims are gang members.
(COMMERCIAL BREAK)
[11:40:00]
(COMMERCIAL BREAK)
GOLODRYGA: El Salvador's President is set to visit Washington on Monday. The White House says President Trump and President Nayib Bukele will
discuss immigration and the use of El Salvador's maximum security prison to discuss further.
ASHER: The prison, considered the largest in the Americas, can hold up to 40,000 inmates. Under a deal between the U.S. and El Salvador, the mega-
prison is housing immigrants deported by the U.S. who the White House alleges are gang members. The condition inside the prison are said to be
extremely harsh.
The director gave CNN's David Culver an exclusive tour.
(BEGIN VIDEOTAPE)
DAVID CULVER, CNN SENIOR CORRESPONDENT: When we first walked in to these halls, CECOT was a powerful symbol across Latin America, but now, since
folks in the U.S. are far more familiar with what's happening here, because it has a direct connection. Last time we were here, there were about 80 or
so people per cell. I'm looking right now, and it's already 70 who have come out, and they've probably got another 30 plus. So, you're talking more
than 100 people in some of these cells now. And the director has told me they've increased the prison population because more arrests have taken
place within this country.
CULVER (voice-over): Built to isolate El Salvador's most dangerous criminals, the Center for Terrorism Confinement, or CECOT, opened in early
2023 as the centerpiece of President Nayib Bukele's anti-gang crack down.
BELARMINO GARCIA, CECOT PRISON DIRECTOR: (FOREIGN LANGUAGE)
CULVER (on camera): Why are there more people?
GARCIA: (FOREIGN LANGUAGE)
CULVER (on camera): He says the state of exception, essentially the state of emergency that's been declared under President Bukele, going back 2022,
will not end until the last gang member has been taken from the communities and brought here to CECOT. This is a court hearing that's playing out right
now. This is a preliminary hearing that's playing out. There is one in there, and this one hasn't yet started. Anderson Cooper last night was
asking me, is everyone in CECOT convicted?
GARCIA: (FOREIGN LANGUAGE)
CULVER (voice-over): Garcia says many here have been convicted, but others are still going through the judicial process. And when we ask, he doesn't
allow us to sit in on what appears to be court hearings underway.
[11:45:00]
CULVER (on camera): I hear you when you say that there are people who have done horrible things. But, is it possible that there are people who are
innocent as well in here?
GARCIA: (FOREIGN LANGUAGE)
CULVER (voice-over): Garcia claims every person in CECOT is an active member of a terrorist organization.
CULVER (on camera): And you're confident that that's the case.
GARCIA: That's correct.
CULVER (voice-over): Critics have said there is a lack of due process. So, it's impossible to say for sure.
CULVER (on camera): Questions have been raised about that severity of treatment, and it is seen certainly as harsh. But, when you talk to
Salvadorans, they say, yes, perhaps harsh, but totally necessary to have eradicated the gangs and to keep them out. The question is, is that same
level of treatment necessary when it comes to the deportees that are coming here from, say, the U.S.?
But, if you look just straight down there at the very end, that's Sector 8. That's where the deportees, including those from Tren de Aragua, are being
held. We cannot go into that sector. When I ask why, he says, it's not part of this approved tour.
GARCIA: (FOREIGN LANGUAGE)
CULVER (on camera): He said, everybody has got the same conditions. It doesn't matter where you are, including in Sector 8. There are four zones,
and in each zone, you have two modules, the sectors that have also within them, the cells, and they can have up to 5,000 prisoners within each
module.
CULVER (voice-over): That's a maximum capacity of 40,000, which Garcia says they're getting closer to, but he adds they still have sufficient space. He
won't give the exact prison population for security reasons, he says.
CULVER (on camera): The CECOT isn't just a prison. It's a message from this government to the gangs and really to the rest of the world. For critics,
this is a place where rights vanish. But, for supporters of which there are many, including the leaders here and many of the people live in this
country, this place is a symbol of freedom, newfound freedom, as they see it. For them to see this exist in a way it does, while some may perceive it
as harsh, they see it as the only reason they're able to walk free, lay outside these gates, and not live in fear for most of their lives.
(END VIDEOTAPE)
(COMMERCIAL BREAK)
[11:50:00]
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GOLODRYGA: This is my read, Zain. I know you're jealous. Rice, Rice, baby. That's the reaction from Arsenal fans after a record-breaking performance
by Declan Rice in the Champions League. The midfielder became the first ever player to score two direct free kicks in the knockout stage of the
tournament, according to sports data company Opta.
ASHER: See, as an American, do you count this as real football? Because I this is football to me. I know that thing that you guys play, where you
throw the ball in the air.
GOLODRYGA: I like both. But, as a soccer mom, I till call this football too.
ASHER: Oh yes. I forgot. You're a soccer mom. OK. The breathtaking goals were just 12 minutes apart, propelling Arsenal to a 3-0 victory over Real
Madrid in the first leg of the quarter final. Rice says it might take a while for his accomplishment to sink in.
(BEGIN VIDEO CLIP)
DECLAN RICE, ARSENAL MIDFIELDER: Originally, he was going to cross it, and then I just see the wall and the goal keeper's position, I thought for the
first one, just go for it, and the guy said to feel it. And I see that the outside of the wall, and it went in. And then the second one, I just had
the confidence, and I hit it. And yeah, look, it's not going to hit me yet, because there is another leg to go and I'm excited. I'm happy. I'm over the
moon. I don't mean to be cliche, but in a few years' time, I think this will hit me, that what I've done tonight is really special.
(END VIDEO CLIP)
GOLODRYGA: So special indeed. Well, from soccer or football, everyone, let's call it, it's Masters Week. The first major golf tournament of the
year will tee off Thursday in Augusta, Georgia.
ASHER: Yeah. And one of the many traditions of the week is the annual Champions Dinner, which happened Tuesday night. The meal included
cheeseburger sliders, meatball and ravioli bites, rib eye, let's call it, chocolate chip cookies for dessert. The menu is actually selected by
defending champ Scottie Scheffler.
CNN World Sport Don Riddell is live for us in Augusta, where everyone is getting ready for the party (ph) contest today. So, just in terms of who
we're betting on, Don, for the green jacket this time around, I mean, obviously a lot of people have their eyes on Scottie Scheffler again.
DON RIDDELL, CNN WORLD SPORT: Of course, he is the defending champion. It doesn't happen often that a player is able to win back to back. It's only
happened, I think, four times, but he is bidding -- well, it's happened three times. He would be the fourth. He is also hoping to become the ninth
player to win at least three Masters titles. And if he does so, he would have won three in four years. He is on an absolutely remarkable streak.
Last year, he was brilliant.
If it's not going to be Scottie Scheffler, a lot of people would say, well, what about the world number two, Rory McIlroy? He has won the other three
majors. This is the only one he needs to complete the Career Grand Slam. And he has had some real heart break here, notably in 2011 when he was four
strokes clear after three rounds, and then he just had a complete meltdown on Sunday.
Every year we turn up here, it feels as though the narrative is, this could be Rory's year. This year, the narrative is, it really could be Rory's
year, because he has made a superb start already on the PGA Tour, winning two out of five events before April. So, he is on fantastic form. And he
has been speaking to the media, and he has been explaining how he has kind of learned to sort of manage the heart break, and how that might now
actually help him.
(BEGIN VIDEO CLIP)
RORY MCILROY, PROFESSIONAL GOLFER: Once you go through those heart breaks, as I call them, or disappointments, you get to a place where you remember
how it feels, and you wake up the next day and you're like, Yeah, life goes on. The last few years, I've had chances to win some of the biggest golf
tournaments in the world. It hasn't quite happened, but life moves on, and you dust yourself off and you go again.
(END VIDEO CLIP)
RIDDELL: So, we were discussing the champions dinner just a moment ago. That is, of course, one of the many rich traditions here at Augusta
National, and there are so many of them. For example, there are rules you have to obey. You're not allowed to run on the golf course. You are
absolutely not allowed to take your phone, your cell phone, onto the golf course. And in the case of the Australian golfer, Jason Day, absolutely no
loud clothing. You may remember, last year in his early rounds, he looked like the Marlboro Man, and he has received a tap on the shoulder from the
members here at Augusta National, asking him to perhaps tone it down a bit.
(BEGIN VIDEO CLIP)
JASON DAY, PROFESSIONAL GOLFER: I think I'm on the short list of guys that have to send their scripting in now, which I totally get it. I totally get
it. It was a little bit much on Thursday. So, just the shirt, not the pants. We'll do what we can with what we have, fashion-wise, and enjoy
playing the tournament.
(END VIDEO CLIP)
RIDDELL: So I guess the National isn't quite going as far as Wimbledon, where all the tennis players have to wear white, but it would appear there
saying, please don't overly draw attention to yourself while you're out there playing.
Interesting, looking at one of the other golfers, Cam Smith today, he was warming up wearing what looked like a jacket. I guess if he put a tie on,
he looked like the players here back in the 1930s when Augusta National was created, very conservative dress from Cam Smith there. But, it doesn't
matter what they're wearing. We're all just looking forward to a great week of golf again.
[11:55:00]
ASHER: All right. Don Riddell, the Masters in Augusta, thank you.
GOLODRYGA: Hope they give you some of that great food there as well, Don. Thanks, Don.
RIDDELL: Food was great. Yeah. Love it.
ASHER: And finally this hour, former British Prime Minister Boris Johnson was seen ruffling some feathers at a drive-through safari park in Texas.
(VIDEO PLAYING)
GOLODRYGA: There you go. The feisty interaction shows an ostrich poking its head into Johnson's car and pecking him on the arm. The viral moment was
caught on camera by his wife and has been picked up by numerous British media outlets. It's what happens when a Brit goes to Texas. Our ostrich is
there.
All right. Well, stay with us. We'll have more One World after the break.
(COMMERCIAL BREAK)
END
