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One World with Zain Asher
Friedrich Merz Becomes Chancellor Of Germany; Soon: Trump To Meet Canadian PM Carney Amid Tensions; Israeli Warplanes Attack Yemen's Capital, Hit Airport. Aired 11a-12p ET
Aired May 06, 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": All right. A high-stakes, and potentially high-tension meeting is about to get underway at the White House.
BIANNA GOLODRYGA, HOST, "ONE WORLD": One World starts right now.
Canada's Prime Minister is set to arrive soon for a face-to-face with President Trump.
ASHER: And second time is the charm for Friedrich Merz. We will explain the unexpected political drama in Germany.
GOLODRYGA: Plus, you might do a double take next time you stop by the toy aisle, as the makers of Barbie say prices will soon increase.
Hello, everyone. Live from New York, I'm Bianna Golodryga.
ASHER: And I'm Zain Asher. You are watching One World.
All right. Breaking news out of Germany this hour. As of a few moments ago, Friedrich Merz is officially Germany's new chancellor. It's been a day of
unexpected twists and turns in Europe's biggest economy, though.
GOLODRYGA: Yeah. It's also day of first. It was - -this was the scene a short time ago in Berlin where Merz won the parliamentary ballot to elect a
chancellor at the second attempt. Now, a few hours earlier, the conservative leader had been defeated in the first vote, which he was
expected to win.
CNN's Melissa Bell is with us now. Second time is a charm, but Melissa, history was actually made, given the fact that the whole world was
surprised that this didn't come through in the first vote.
MELISSA BELL, CNN SENIOR INTERNATIONAL CORRESPONDENT: And not least Friedrich Merz himself. His face was a picture. The former Chancellor,
Angela Merkel, was there. This should have been a formality and gone ahead without a hitch. In the end, several hours of uncertainty, not to say,
chaos ensued. It had been unclear whether a second vote could be held today, but they did it. They managed it, and this time, Friedrich Merz made
it over that crucial bar. He got, in the end, 325 votes the second time around, compared to 310 he'd managed to muster the first when he'd fallen
just six short of the 316 he needed.
So, in the meantime, a fair deal of wrangling went on, whipping within the coalition partner parties to make sure that the rank and file cast their
vote in the right way. What this does suggest, though, Bianna and Zain, is that going forward, this incoming chancellor who will be sworn in
officially now later today, before heading to Paris and then to Warsaw to shore up European support, hoping to put Germany once again at the center
of Europe, even as Europe continues to help Ukraine. What this vote does tell you is that there is unhappiness in the rank and file of some of these
coalition partner parties. It was a secret vote, both of them. So, it's very difficult to know who voted against and who ended up siding with
Friedrich Merz, the next chancellor.
But, there has been disgruntlement in some parts of both the conservatives who are part of that coalition and the Social Democrats on a number of
issues. That is because, first of all, they've got the AfD nibbling at their heels. Remember that the far right came in second. There was
unhappiness, specifically amongst the Social Democrats about Friedrich Merz's choosing to go tougher on immigration policies. It was believed
earlier this year to court that part of the electorate that seemed to be heading towards the AfD as it went into its election in February, Germany,
that is. In the end, he came out on top, managed to cobble together this coalition in relatively quick time, by German standards.
But, there is this fracture at its heart on a number of issues, and not least the ambition that he has made plain when it comes to revitalizing
Germany's economy. He has gone and used the last group of parliamentarians before the parliament was dissolved to change the German Constitution,
setting aside the limit on spending that had been such an inherent part of German prudence when it came to borrowing in order that he can plan, he and
his new coalition, can plow hundreds of billions of euros into the German economy. That is at the heart of his program. He wants to revitalize
Germany's economy. There had been some disgruntled rulemakers about the fact that the fiscal austerity on which he stood seemed to be setting aside
still.
The coalition now stands. There is a new chancellor in place, and we will see over the coming weeks whether Friedrich Merz's ambition can be seen
through, given the fragility of his coalition that we were reminded of once again today, Zain and Bianna.
GOLODRYGA: No doubt a message sent this morning, though, with that surprising first vote, the fact that it took two to finally get him to the
chancellorship is quite compelling, and will be interesting to see what this means for any prospects for legislating down the road.
ASHER: The one person who knows how it feels is certainly Kevin McCarthy.
GOLODRYGA: Exactly. Took more than one, quite a handful. This would have been a win for Kevin McCarthy.
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All right. Melissa Bell, thank you so much.
ASHER: I'm a fellow (ph).
GOLODRYGA: I do too. I love everything about her.
All right. Moving on to trade.
ASHER: Yeah. Trade tariffs, annexation threats and a chance to reset relations, a lot is at stake, as the Canadian Prime Minister meets Donald
Trump at the White House about 30 minutes from now.
GOLODRYGA: Yeah. This is Mark Carney's first visit to Washington since his Liberal Party won elections last month, and his first face-to-face
discussion with President Trump. Now, Canada is America's second largest trading partner and one of its closest allies on many fronts.
ASHER: While the U.S. President's tariff blitz and his repeated threats to make Canada America's 51st state has undermined that long-standing
relationship, the Prime Minister is viewing the meeting with cautious optimism.
(BEGIN VIDEO CLIP)
MARK CARNEY, CANADIAN PRIME MINISTER: Our focus will be on both immediate trade pressures and the broader future economic and security relationship
between our two sovereign nations. My government will fight to get the best deal for Canada. We will take all the time necessary, but not more in order
to do so.
(END VIDEO CLIP)
GOLODRYGA: CNN's Kevin Liptak joins us now live from Washington. And Kevin, listen, the bar is pretty low, assuming that Mark Carney isn't kicked out
of the White House, and we don't have a screaming match like we had with President Zelenskyy. Maybe you could view that as a positive first step in
the relationship between these two men, but President Trump was actually quite complimentary of him over the weekend as well. What is he saying?
KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Yeah. He is calling Mark Carney a nice guy, which is fairly mild praise for the President, but
certainly a lot nicer than the words that he had for Carney's predecessor, Justin Trudeau, who he consistently belittled as "Governor Trudeau", sort
of an allusion to his aspiration to make Canada the 51st American state.
And so, if you're starting from there, I guess things are looking up. He has not used that governor term to describe Carney, but certainly, things
could potentially be contentious in this meeting in the White House, particularly when you consider the fact that Carney really rode a wave of
anti-Trump sentiment to get to this office in the first place, animosity over trade and the tariffs and the cross-border trade war that has erupted,
animosity over those aspirations, territorial aspirations, potential to potentially annex Canada. And so, you could easily see how things might go
sideways when the two men sit down in the Oval Office in just about 20 minutes from now.
But, I think on the other hand, world leaders, Carney included, know that there is really no upside to open animosity with President Trump. It really
is a recipe for disaster. And so, he is clearly going to have to strike some kind of balance when he sits down with the President here at the White
House. We heard from the President yesterday, when he was asked what the agenda for this meeting would be, he essentially said he didn't know. He
didn't know why Mark Carney wanted to come here to talk to him, but that he wanted to make a deal. And yes, it is trade that I think will be at the
very top of the agenda when these two men sit down, both sides, I think, wanting to find a way out of the tariffs that they have applied on each
other, sort of tit for tat over the last several months.
Carney has made it a priority to try and renegotiate the USMCA, the North America trade agreement that President Trump actually put in place during
his first term in office, but which is essentially now in tatters. This question of annexation could also potentially arise. I don't think Carney
particularly wants to talk about it, but certainly President Trump, every time the topic of Canada arises, makes clear that he thinks Canada would be
better off as part of the United States. And so, it will be something to watch how forcefully Carney pushes back against that when it inevitably
arises in their meeting today.
There is one third topic that I think is quite interesting. Carney is set to host the G7 summit next month in Alberta. We've been talking to American
officials who have not yet committed to President Trump's attendance at that gathering. They have been scoping out the meeting site, but they have
not yet committed to his attendance. If he decides not to go, that would be a major break in precedent. It would really sort of underscore how
President Trump has discarded some of the alliance systems that have been in place for decades. One priority for the Canadian officials is to try and
get a better read of what exactly the President's plans are come next month when that G7 summit convenes.
So, certainly a lot for these men to talk about in this meeting. The tone of it, I think, will be very important, as always with Trump. Chemistry is
sort of everything Trump and Carney don't have a lot in common.
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Outwardly, they both did come from the private sector. And so, I think watching that chemistry will be critical as these two men set to meet.
ASHER: One of the biggest issues, though, Kevin, is the fact that so much of this trade war between the U.S. and Canada is based on falsehoods. So,
for example, the fact that President Trump has talked about fentanyl just pouring across the border between Canada and the United States, that's
obviously not true. It's such a small percentage of fentanyl --
LIPTAK: Yeah.
ASHER: -- that actually comes from the northern border. So, how will Prime Minister Connie address that?
LIPTAK: Well, I think it's an open question, and leaders, as they have come through the Oval Office over the last several months, have sort of
approached this differently. And I think back to the French President Emmanuel Macron, who pushed back on the President's assertions that Europe
wasn't doing enough to provide aid to Ukraine. He said, no, Europe has actually provided more than the United States. That approach, it was sort
of a soft touch. It seemed to resonate with the President. It didn't cause any sort of outward tension, and that's part of the balance, I think, for
Carney, as he comes into this meeting.
Certainly his supporters who elected his Liberal Party in part because of how much Trump had become a part of the conversation in Canada, I think
will be expecting him to at least have some confrontational approach to this meeting. They want him to show sort of some fight when it comes to
Canadian sovereignty in particular.
But, at the end of the day, I think he realizes probably that that won't have the best effect if he is trying to realign U.S.-Canada ties, which
have really sort of bottomed out since Trump came into office. And so, this will be, I think, a balancing act for him, as he looks to correct some of
the falsehoods potentially that the President could issue as part of this meeting, but also looks to rewrite this relationship between Ottawa and
Washington that has so seriously soured during the Trump presidency.
ASHER: All right. Kevin Liptak live for us there. Thank you so much.
All right. Let's bring in Nik Nanos. He is the Chief Data Scientist and founder of the Nanos Research Group, and the pollster of record for the
Globe and Mail newspaper, and CTV News. Nik, thank you so much for being with us. I want to get you to expand on the last point that our reporter
Kevin Liptak made there. I mean, this idea that Carney's willingness to stand up to Trump, willingness to take an aggressive stance against Donald
Trump on the campaign trail, is partly really what got him to the premiership. But, is he going to do the same behind closed doors?
Obviously, he has to have a very different approach when meeting Donald Trump face to face. Give us your take on that, please.
NIK NANOS, FOUNDER & CHIEF DATA SCIENTIST, NANOS RESEARCH: It's interesting. In the last election, Mark Carney's fortunes were directly
tied to people's belief that he would do a good job at managing the bilateral relationship and dealing with Donald Trump. So, his political
fortune is really tied to how well or poorly he does, and this meeting today is really going to be critical for him as the newly elected Prime
Minister of Canada.
That said, what's clear, at least when we talk to Canadians, is they want the Prime Minister to be firm, but they do not want to escalate things, and
that's probably the strategy that I would expect that we'll see from Mark Carney. He can't roll over if pushed by Donald Trump, but he has to be
firm, and he has to think of strategies that don't escalate it, because the reality is, today, Mark Carney is stepping into the lion's den known as the
White House, and this will be his first big and probably his most important test as Prime Minister of Canada.
GOLODRYGA: Well, Nik, just judging by what President Trump said when asked about expectations going into this meeting, he said, listen, I don't know.
He is the one that wants to come to see me. So, if that is how this meeting is being viewed by the White House, what deliverables, if any, does the
Prime Minister have to offer? Especially given that, as they noted with Kevin Liptak, as it relates to fentanyl, even Justin Trudeau attempted to
address that issue, which is, let's be honest, a non-issue, but they also invested resources in addressing that.
NANOS: Yeah.
GOLODRYGA: That didn't seem to allay concerns in the White House. Here, the President saying that we subsidize Canadians with $200 billion, that's just
not true. The trade deficit is really about $60 billion, and you X out services and also oil imports, and we actually have a surplus. So, what
actually, can he bring to the table that's tangible, but again, non- confrontational?
NANOS: Well, we have to recognize the fact that Donald Trump is, why don't we just call him one of the best negotiators in the world. Period. Full
stop. So, everything that he says is basically part of a negotiation strategy.
I think the other thing that's really important for the CNN viewers to realize is that Mark Carney used to be at Goldman Sachs. I think the
reality is, is that for President Donald Trump and many of his key advisors, they see Mark Carney as a former Goldman Sachs person, and they
go, OK, we know how people at Goldman Sachs work, right?
[11:15:00]
We know how they negotiate. We know how they deal. And I think there will probably be a certain level of respect just because of the fact that Mark
Carney's professional background beyond, being the Governor of the Bank of Canada and the Governor of the Bank of England, probably what's more
important is that he is a Goldman Sachs guy. And Donald Trump is probably thinking, I know how to deal with Goldman Sachs people.
And -- but, I think in terms of deliverables, I think what's realistic, probably two things, first of all, a timeline or a schedule, and second of
all, tone. And I think for both the President of the United States and the Prime Minister of Canada, especially for Mark Carney, he is going to be
trying to establish a relationship and tone in terms of how the friendship between Canada and the United States will move forward. And then, not to
get into any details, not to get into what might have been said about fentanyl or anything else, but just to talk about a timeline.
And the thing is, is that what Canadians, and I think many Americans want, when it comes to a lot of the stuff that's been talked about now, is
certainty, a plan, an understanding of what the path forward is, so that it creates a certain level of stability in Canada, but also in the United
States.
ASHER: And just in terms of the sort of 51st state's comments from President Trump, when I first heard Donald Trump refer to Canada as
possibly becoming the 51st state, obviously, like a lot of people, I thought, clearly, he is joking. But then, he doubled down and doubled down
and sort of talked about, wow, Canada would be an amazing, really cherished 51st state of the United States, even went so far as to say that he would
use economic force, not military force, but economic force to make Canada - - I mean, he really appeared to be serious. How do you think that Prime Minister Carney is going to address that? I mean, I'm sure that's going to
come up. No?
NANOS: I would be surprised if it comes up. And you know what? I think President Trump's comments are understandable, like, let's face it. When
former Prime Minister Justin Trudeau went down to Mar-a-Lago, why don't we just call Mar-a-Lago the Shark Tank? He has dropped in the Shark Tank at
Mar-a-Lago. He sounded weak. Donald Trump sensed weakness, made a comment and that he just won't let go. But, I think that weakness is not what he
senses in Mark Carney, and that we should not conflate the perceptions that Donald Trump had of former Prime Minister Justin Trudeau and I think the
perceptions that he might have at least of current Prime Minister Mark Carney. So, I just think, Mar-a-Lago is a Shark Tank. Justin Trudeau didn't
do a good job. President Trump sensed weakness. He went there.
ASHER: Although he has brought up -- although, Nik, he did bring up multiple times this idea of Canada becoming the 51st state, even after
Justin Trudeau left office.
NANOS: Yes, he has, but I don't think he has brought it up very much since Mark Carney has been elected, and I think he just sees that -- and let's
face it. Donald Trump is a negotiator, is there to test his opponents, right?
GOLODRYGA: Yeah.
NANOS: This is -- and he is there to put his opponents off guard, right? So, I wouldn't take it personally. He is just trying to do a good job at
negotiating the best deal that he can for the United States. And he will say what he thinks is necessary to try to get the advantage. And the thing
is, the test for Mark Carney is how he handles this.
GOLODRYGA: Yeah. I mean, even if it doesn't come up with the President, if the press is actually in the Oval Office, as it has been during previous
bilats, I mean, I would imagine a reporter will ask the President that to his face, or the Prime Minister, and then that will be interesting to see
how they respond.
ASHER: They will have a Zelenskyy moment.
GOLODRYGA: Exactly. I don't think I can deal with another one of those. One in my lifetime was enough to watch.
Nik Nanos, thank you so much.
ASHER: Thank you, Nik.
NANOS: Thank you.
ASHER: All right. We are tracking a developing story out of the Middle East, where Israel is staging a new wave of attacks on Yemen.
GOLODRYGA: Yeah. Israeli planes hit multiple targets across the Yemeni capital. The Israeli military says that it has fully disabled Sanaa's main
airport. It is the second day of Israeli attacks after Houthi- based Houthis based in Yemen fired a missile which landed close to the airport in
Tel Aviv, Israel, on Sunday.
Let's go to Jeremy Diamond, who is live in Jerusalem, with the latest. So, Jeremy, we heard yesterday from Israeli officials that they would indeed
respond. They started to attack the ports last night, and obviously the main airport there today. What more are we hearing from the IDF?
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Yeah. That's right, Bianna. Two rounds of Israeli strikes hitting Yemen within 24 hours, some of the
most significant attacks -- Israeli attacks that we have seen in Yemen, amid this back and forth between Israel and these Houthi militants in
Yemen. Indeed, the Israeli military struck Sanaa -- the Sanaa International Airport in Yemen's capital.
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According to the Israeli military, they have fully disabled this airport, striking runways, aircraft, as well as other infrastructure at this
civilian airport, which the Israeli military is accusing the Houthis of also using, including to bring in weapons and other military equipment from
Iran.
The Israeli military also carried out strikes at several power stations in the Yemeni capital, as well as a cement factory just north of Sanaa. And
you can see in some of the footage that we have of these attacks, these enormous plumes of smoke erupting all across the Yemeni capital this
afternoon, as Israel carried out these attacks. Israel says that all of this has been in retaliation for that Houthi ballistic missile attack near
Israel's Ben Gurion International Airport on Sunday. That attack could have been very, very deadly had it actually struck the airport. Luckily, it hit
in kind of the side of a roadway right alongside the airport. No serious injuries were caused, but it has prompted the first Israeli strikes against
Houthi targets in Yemen in months now.
For the last several months, the Israelis had really left it up to the United States to carry out attacks against the Houthis, but this ballistic
missile attack on Sunday certainly changed the equation. It's not clear whether this Israeli attack is done for the moment. Clearly, the Israelis
didn't just want this to be a one-off attack. Another question, whether Israel will carry out any kind of strikes against Iran, whom Israeli
leaders have said they hold directly responsible for these attacks because of Iran's role in funding and equipping these Houthi militants in Yemen.
The Houthis are also vowing that they will retaliate for these attacks. How they do so remains to be seen. It's important to note that the overwhelming
majority of these Houthi ballistic missiles have indeed been intercepted by Israel's air defenses, obviously, on Sunday. That was very much not the
case. And so, we will see how this back and forth continues and whether it escalates from here. Bianna.
GOLODRYGA: Yeah. A reminder, these aren't neighboring countries. Also, there is over 1,000 miles distance between the two of them. So, the fact
that these ballistic missiles were able to actually get close to the airport, as we reported over the weekend, is quite stunning.
Jeremy Diamond in Jerusalem for us. Thank you so much.
ASHER: All right. It's one of the last things you want to hear when landing a plane.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: No, you don't have a Bravo clearance. We lost our radar and it's not working correctly.
(END VIDEO CLIP)
ASHER: Gosh. That frightening moment set off days of delays at Newark airport, and now the government is taking action. We'll have details for
you after the break.
(COMMERCIAL BREAK)
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(COMMERCIAL BREAK)
ASHER: All right. The issues at Newark airport in New Jersey have gotten so bad, the government is now slowing traffic there.
GOLODRYGA: Yeah. Tuesday marks the ninth straight day of staffing shortages at the airport just outside of Newark, which are triggering major delays.
The FAA put a ground delay in place to help the airport cope with the shortages. Last week, air traffic communications went down for 30 seconds,
an eternity when it comes to guiding airplanes into the airport. Here is what it sounded like for planes approaching Newark.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: 9674 approach.
UNIDENTIFIED MALE: 9674 radar contact lost. We lost our radar. So just stay on the arrival and maintain 6,000.
(END VIDEO CLIP)
ASHER: Brynn Gingras joins us live now from Newark airport with details. So, Brynn, I'm already afraid to fly, just in general, and now, obviously
this makes my heart beat that much faster. I mean, what does this tell us about these sort of antiquated air traffic control systems that we're
dealing with, especially in Newark?
BRYNN GINGRAS, CNN U.S. NATIONAL CORRESPONDENT: Yeah. They need to be fixing and I agree with you. I'm in the same boat. And as we talk to
travelers here at Newark and are asking more questions about why are the delays so bad, and they hear these stories, a lot of people are more afraid
too. How could you not be?
And so, with that incident that you guys just described to the viewers, there is at least five FAA workers that went on leave for the next 45 days.
Now, that's already contributing to shortages all across the country when it comes to air traffic controllers. But, that's not the only problem here
in Newark. They're also facing a runway that is down for construction until about June. There is some serious cloud cover in the New Jersey area. So,
that's contributing to the delays. And so, it's just compound issue after compound issue. And what is that resulting in? Well, just delay after delay
after delay after delay.
So far today, 176 flights are delayed. It's still, what, 11:30 in the morning, over 100 cancelations just today, compare that to yesterday,
because these just build up throughout the day. Yesterday, there were 425 delays in and out of Newark, with 160 cancelations. So, we do expect this
just to continue throughout the day. This is now the ninth day of passengers feeling the pain of traveling, and we've been talking to so many
and you guys probably have your own stories that you can remember of just nightmares. Well, people are going through it, getting their flights
canceled. They don't get booked again for several days later. They have to let their job know, some people losing out on money. So many issues that
we're hearing from travelers, and that frustration is not really going away.
The Transportation Secretary, Sean Duffy, saying last night that there is a solution. He is trying to get this antiquated air traffic control system
updated, but of course, that is only going to take time. He is expected to unveil some big plan on Thursday. So, we'll be on the lookout for that.
But, unfortunately, none of this is an easy solution, guys. This is going to be like this for quite a while heading into the summer traffic season.
Air traffic, quite a preview.
GOLODRYGA: Quite a preview we're getting right now, and I can understand the frustration of those passengers behind you, Brynn. Thank you so much.
ASHER: It's nice to know that I'm not the only person who is afraid to fly. Obviously, Brynn is as well. When you're on those --
GOLODRYGA: International companies.
ASHER: -- international flights, and as soon as the plane lands safely, people sort of genuflect.
GOLODRYGA: And clap. Yeah.
ASHER: I didn't clap. I didn't clap.
GOLODRYGA: I'm sure you clapped. Admit it, Zain.
All right. Well, Trump's tariffs have hit the toy aisle. Coming up, Mattel warns prices for Barbie dolls are going up. Nothing to clap about there.
ASHER: Donald Trump says he is directing the government to rebuild and reopen one of America's most notorious prisons. Ahead, we will take you
inside Alcatraz.
(COMMERCIAL BREAK)
[11:30:00]
(COMMERCIAL BREAK)
ASHER: All right. Welcome back to One World. I'm Zain Asher.
GOLODRYGA: And I'm Bianna Golodryga. Here are some international headlines we're watching today.
ASHER: U.S. aviation officials have imposed a new ground delay at Newark airport. This after nine straight days of delays and cancelations, and at
one point, a 30-second total breakdown of communications between air traffic control and incoming aircraft. Officials are blaming antiquated
equipment and staff shortages as well.
GOLODRYGA: Israel is staging attacks on Yemen for a second day in a row. The IDF claims that it has fully disabled the airport in the Yemeni
capital. It says Sanaa airport was being used to transfer weapons to the Houthis.
ASHER: The University of Washington says more than two dozen pro- Palestinian protesters have been arrested after occupying an engineering building in Seattle. The organizers of the demonstrations say they want the
school to cut ties with Boeing over the airspace -- aerospace, rather, for its giant's role in supplying weapons used in the war in Gaza.
All right. Toys in the U.S. are expected to go through a price hike in a country where 80 percent of all toys actually come from China. The 145
percent tariff slapped on China will not only affect Barbie dolls and Polly Pocket, but your pocket as well.
GOLODRYGA: Yeah. Toy manufacturer Mattel says it is raising prices due to Donald Trump's tariffs. He recently addressed the issues suggesting scaling
back on the amount of toys a child has.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT, UNITED STATES OF AMERICASHER: Maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost
a couple of bucks more than they would normally.
KRISTEN WELKER, HOST, NBC NEWS: Are you saying that your tariffs will cause some prices to go up?
TRUMP: No. I think tariffs are going to be great for us, because it's going to make us rich.
WELKER: But you said some dolls are going to cost more.
TRUMP: Sure.
WELKER: Isn't that an acknowledgement that some prices will go up?
TRUMP: I don't think children -- I don't think a beautiful baby girl needs, that's 11-years-old, needs to have 30 dolls. I think they can have three
dolls or four dolls.
(END VIDEO CLIP)
GOLODRYGA: Well, for more on this, let's bring in Vanessa Yurkevich. Timing is everything. A lot was made by the President's comments. And now we're
hearing from the CEO of Mattel. And I would imagine, Vanessa, Mattel isn't the only toy maker that is concerned about having to raise prices.
VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Yeah, and you hear it from Mattel's CEO right from his mouth, saying that they will have
to raise prices on dolls. They're saying that, essentially, because of these tariffs, there is going to be price hikes. They're still committing
to consumers that about 40 percent to 50 percent of the cost of toys are going to be below $20, but there are certainly going to be price increases,
and Mattel saying that this is going to cost the company, these tariffs are going to cost the company $270 million this year. That's without any
mitigation. What I mean by that is the relocation of their manufacturing away from China to other countries. The company says that it's trying to
relocate the production of some 500 toys out of China.
[11:35:00]
The company currently says that about 40 percent of all toy production for the company is in China. That is less than the industry standard of 80
percent, but they're trying to get it down to about 10 percent manufacturing in China by 2027.
Also, there was an industry look at what toy prices have been doing in the last month. Just take a look at the cost of a Barbie doll. This is a
swimsuit Barbie from Target. The price went up by about 42 percent, currently retailing for $14.99 at Target. That's according to the Telsey
Advisory Group. So, that is a significant jump, and the group says that is one of the steepest jumps that they have seen in the month of April. We
also heard from Mattel's CEO just a short time ago on CNBC, and he was asked whether or not the company could, in fact, bring manufacturing to the
United States, as President Trump is asking. Here is what he said.
(BEGIN VIDEO CLIP)
REBECCA QUICK, CNBC HOST: If the tariffs come and they stay, would it be cheaper to manufacture toys in the United States?
YNON KREIZ, CEO, MATTEL: We don't see that happening.
(END VIDEO CLIP)
YURKEVICH: And so, that is a very honest take on the real possibility of bringing manufacturing of toys back to the United States. As I mentioned,
80 percent of all toys consumed here in the United States made in China. We know that Mattel and other companies, though, are working to shift their
supply chains out of China into other countries. However, that's not a few days, few weeks, few months, process. That is something that can take
years.
ASHER: And Vanessa, just in terms of other industries also raising their prices, it's interesting because several days ago, we heard from the Ford
CEO when he told our Erin Burnett that he couldn't really confirm whether or not he was actually going to raise prices, and now it looks like Ford is
actually one of those companies that will be raising prices as well as a result of these tariffs. What more can you tell us there?
YURKEVICH: Yeah, and they saying that they raise prices by about one percent to 1.5 percent by the end of this year. That is not significant,
but it is something, and it's in reaction to the tariffs. Ford is a U.S. automaker that produces 80 percent of its vehicles here in the United
States. So, they have that on their side, compared to a company like General Motors, which produces a lot less. But, they're saying also that
they're going to take a hit of $1.5 billion because of these tariffs. Now, the Ford CEO also committed to offering consumers employee pricing through
July, but he could not guarantee it past that, and that is because that is sort of the timeline where Ford will ultimately run through its pre-tariff
inventory, and now we know that there are -- there is still that 25 percent tariff on foreign car imports.
And while there is some workaround, some exemption, many companies like Ford are still getting hit with that higher tariff of 25 percent, and
ultimately, as much as Ford wanted to sort of brace the U.S. consumer and shield them from these price increases, a one percent, 1.5 percent increase
in price is still going to be noticeable, but they are expecting a stark decline in car sales by the end of this year, just because, simply, people
front loaded about a ton of cars in March, got that off their checklist, and now probably going to hunker down and really use their car till the
end, until they absolutely have to buy a new car. No one wants to pay high prices, guys.
GOLODRYGA: Yeah. We'll see how that impacts further, in future, consumer spending behavior in this country too of so many Americans front loaded
their big purchases now in anticipation of these tariffs.
Vanessa Yurkevich, thank you so much.
YURKEVICH: Thanks.
ASHER: Thank you, Vanessa.
All right. Let's go now to the White House, where -- let's take a look here. These are live pictures outside the White House where we are all
waiting for Prime Minister Carney's arrival there for his anticipated meeting with Donald Trump. Just moments ago, actually, Donald Trump posted
to social media, slamming Canada. He is doing this literally just before meeting with the Prime Minister there, slamming Canada and essentially
questioning Canada's reliance on the United States. He posted, "We don't need their cars, their energy or their lumber." Obviously, Mark Carney has
a bit of a tall order here, just in terms of resetting the relationship with the United States, given what the President has just posted.
All right. We'll have more news after this short break.
(COMMERCIAL BREAK)
[11:40:00]
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GOLODRYGA: The UN is urging India and Pakistan to show restraint, two weeks after an attack on tourists in Indian-administered Kashmir left 26 people
dead. On Monday, Pakistan reportedly carried out a second missile test, while India ordered new security drills.
ASHER: Several major airlines are now avoiding Pakistani airspace.
CNN's Nic Robertson made a rare trip to the Line of Control separating the two nuclear powers, and he has this report for you.
(BEGIN VIDEOTAPE)
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR (voice-over): In the Himalayas, Pakistan's army is taking us deep into disputed Kashmir toward
the Line of Control, the de facto border with India and one of the most militarized conflicts in the world. Tensions between the two nuclear armed
neighbors rising since a terror attack killed 26 civilians, mostly Indian, almost two weeks ago. Militaries on both sides readying for possible
escalation, as India blamed Pakistan, and Pakistan denied responsibility. It's a war of words. Civilians on both sides of these rugged mountains
fear, not for the first time, will be victims of events way beyond their sway, control of the towering peaks unresolved for 75 years.
ROBERTSON (on camera): Just driving through the mountains here, it's easy to understand why Kashmir is still a disputed area, so hard to fight a
decisive war in this rugged terrain.
ROBERTSON (voice-over): The other thing you see here is poverty, meager villages clinging to the hillside. People here say the spiking tensions
making it harder to eke a living, as we're about to find out. On foot now, the village we're heading to, a few hundred feet from the Line of Control.
ROBERTSON (on camera): And just look over there, you can see how close the frontlines are. That's the last Pakistani position there, the Indian Army
position a few hundred meters away, and those trees, that's the Line of Control.
ROBERTSON (voice-over): When we arrive, most villagers clustered around one house, some hiding in the dark inside, children peaking from unglazed
windows. This villager telling us they live in fear now. Elderly, children and women are incredibly scared, he says. We want to take our livestock out
to pasture, but the Indians are right there in front of us, and we're very concerned. Their fears may be well founded. This 17-year-old says Indian
troops killed his father, Malik Farooq. He had gone to the Line of Control to chase our cattle, he says. The Indians shot him and accused him of being
a terrorist. He is not. He is a good man.
[11:45:00]
The day after the massacre in Indian-administered Kashmir, the Indian government announced it had foiled a terror plot killing two Pakistanis.
Malik's brother denies the allegations too, says he was just a herder like me, believes India wants their land before breaking down in tears. India's
done a great cruelty to us, he says. If they want me to leave, put a bullet in my head. That's the only way I'll go. With no end in sight on both sides
of the border, civilians as ever, the losers in this decades-old conflict.
(END VIDEOTAPE)
GOLODRYGA: What a powerful report from Nic there, and with this decades- long conflict showing no signs of resolution, there is no shortage of grievances and accusations being levied on both sides of the border.
Officials in India have long accused Pakistan of backing armed groups and separatist forces inside the Indian-administered portion of Kashmir.
Pakistan says this was true in the past, but is not happening now. With the killings of 26 civilians still fresh in the minds of many across the
border, and calls for revenge, it's no surprise that global powers, including the U.S. and China, have stepped in to urge restraint in this
tense standoff.
ASHER: 133 cardinals are gathered in Vatican City right now preparing to begin their secretive conclave meeting to elect the next Pope. Details
next.
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ASHER: All right. You know the term kiss the ring. It means expressing respect or reverence to someone.
GOLODRYGA: Yeah. The ring in that phrase is the one that sits on the hand of the Pope. It is known as the fisherman's ring, and was named for St.
Peter, who, by tradition, is considered the first Pope and who was a fisherman.
ASHER: Earlier today, in a hugely symbolic ceremony, the fisherman's ring worn by Pope Francis was defaced so it could not be used for official papal
communications any longer. Traditionally, the rings were smashed by a hammer, but starting with Pope Benedict in 2013, they are merely marked
with a cross as a way of taking them out of service.
[11:50:00]
A new ring will be given to the next Pope.
GOLODRYGA: So interesting. Also, it's a profound and mysterious process, the words of Cardinal Robert McElroy, the Archbishop of Washington, D.C.,
speaking in Rome on Monday.
ASHER: Yeah. He was talking about the secret conclave gathering to elect the successor to Pope Francis. 133 cardinals of the Catholic Church are
going to be taking part in the process that begins Wednesday in the Sistine Chapel. All of them have now arrived in Rome, and from tomorrow, they're
going to be locked away, locked away from the outside world, possibly for several days. It could take multiple rounds of voting for a Pope to be
chosen. Until then, cardinals have to give up their phones, electronic devices. There is certainly (inaudible) speculation about who the next Pope
is going to be. Archbishop McElroy refusing to add to it, on Monday, saying, I can give you no insights into who is ahead. Catholics in Israel
may be hoping for the first cardinal of Jerusalem to be the next Pope.
GOLODRYGA: And it's thought, though, it's almost impossible to know what the chances are of Cardinal Pierbattista Pizzaballa being elected, he and
Pope Francis are known to have had one thing in common, their thoughts on the Israel-Hamas war.
Our Jerusalem Correspondent Jeremy Diamond has more.
(BEGIN VIDEOTAPE)
DIAMOND (voice-over): In the Old City of Jerusalem, the faith of Jesus Christ endures. Outnumbered by Jews and Muslims, a small minority of
Catholics carry on 2,000 years of religious tradition, and for the last year and a half, they have been led by Jerusalem's first cardinal,
Pierbattista Pizzaballa. The late Pope Francis elevated the 60-year-old Italian to the rank of cardinal one week before the start of the Israel-
Hamas war. He is now considered a dark horse candidate for Pope, after the conflict thrust Pizzaballa into the spotlight.
CARDINAL PIERBATTISTA PIZZABALLA, LATIN PATRIARCH OF JERUSALEM: As pastor, we have to denounce what is going on. You cannot remain silent, just to
say, go and pray. Of course, we have to pray, but also we have to say a word, clear word, as much as you can, but without becoming part of the
struggle of the fight.
DIAMOND (voice-over): In the first days of the war, Pizzaballa made international headlines when he said he would take the place of any Israeli
hostage. Reactions were largely positive, but not everywhere.
PIZZABALLASHER: Another problem was, why for the Israeli children and not for the Palestinian children? My answer was, also for them. I'm ready. No
problem. The question was there. I didn't think. I mean, I was very naive at that moment. While we are seeing this message in Gaza --
DIAMOND (voice-over): Like Pope Francis, Pizzaballa has been an outspoken critic of the war. He has visited Gaza twice since October 7th, where a
tiny Catholic community struggles to survive. In many ways, the conflict has come to define his time as cardinal, and in frustration, he admits it
has even led him to ask God, where are you?
PIZZABALLASHER: Then I come to myself, I understand the question should be, where is man now? What we've done to our humanity. We cannot consider God
guilty of what we are doing.
DIAMOND (voice-over): He bought food aid from Jerusalem's Muslim community, stored it with a Jewish company, and brought it into Gaza.
PIZZABALLASHER: I see in this sea of darkness, a lot of lights, everywhere, and this is what gives me hope.
DIAMOND (voice-over): In his role as the cardinal in Jerusalem, he has spoken with Israeli leaders and Hamas officials.
PIZZABALLASHER: In this moment, my impression is that the institutional leaders are now paralyzed by their role. The lesson I see here is that
faith and power don't go well together. If you want to be free as a religious leader, you have to be independent from any kind of power,
economical power, political power, social power, whatever, and we are not there now.
DIAMOND (voice-over): Born in a small village in northern Italy, Pizzaballa has spent most of his life in Jerusalem at the crossroads of culture and
conflict. He says his faith has helped him through the loss and desperation of the war that surrounds him.
PIZZABALLASHER: Faith is the only thing you can grasp, you can have in order to keep alive with light in your life, but also faith is, I mean, a
way to transcend yourself, to go beyond yourself.
[11:55:00]
DIAMOND (voice-over): Rome is the heart of the Catholic Church, home to the Vatican and the Pope, but to Pizzaballa, Jerusalem is the heart of
Christianity itself.
PIZZABALLASHER: In Jerusalem, you don't see this power. You see the wound, allow the vision, but at the same time also the call and the desire for
unity.
DIAMOND (voice-over): Jeremy Diamond, CNN, Jerusalem.
(END VIDEOTAPE)
GOLODRYGA: Our live coverage of the Conclave gets underway tomorrow. Special coverage begins at 04:00 a.m. Eastern. That is 10:00 a.m. in Rome.
ASHER: All right. Stay with us. We'll have much more One World after this short break.
(COMMERCIAL BREAK)
END
