Return to Transcripts main page

Quest Means Business

Trump: Will Ask Supreme Court For Expedited Tariff Ruling; Trump Vows To Send Troops To Chicago To Combat Crime; Putin, Xi Hold Formal Bilateral Meeting In Beijing; Activist Investor Elliott Takes Stake In PepsiCo; Bolsonaro Trial Enters Final Phase; Canada's Manufacturing Sector Shrank Again In August. Aired 4-5p ET

Aired September 02, 2025 - 16:00   ET

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

[16:00:21]

PAULA NEWTON, CNN INTERNATIONAL HOST: Okay, you see there, the Dow down, you know, just a little bit better than half a percent. The other indices

also down today on worries about tariffs. I would say everyone get a hold of yourselves though. We are dealing with some record highs just in the

last few weeks. Those other markets and these are the main events.

President Trump says he is going to the Supreme Court after an appeals court pours cold water over the fate of those tariffs.

China and Russia sign a gas deal despite U.S. pressure to isolate Russia over its war on Ukraine.

And food giant, Kraft Heinz set to split into two companies ten years after its mega merger.

Live from New York, it is Tuesday, September 2nd. I am Paula Newton, in for Richard Quest and this is QUEST MEANS BUSINESS.

Good evening, everyone.

Tonight, U.S. President Donald Trump calls for an expedited ruling on his tariffs days after an appeals court ruled that most of them were in fact,

illegal.

President Trump just gave a wide ranging press conference at The White House. He said the economy will suffer without his tariffs, and that he was

going to take his case right to the Supreme Court.

Now, President Trump also boasted about his decision to deploy troops to the streets of Washington to combat crime. He says he will launch a similar

operation in Chicago whether Illinois Governor J.B. Pritzker likes it or not.

(BEGIN VIDEO CLIP)

DONALD TRUMP (R), PRESIDENT OF THE UNITED STATES OF AMERICA: I would love to have Governor Pritzker call me. I would gain respect for him and say, we

do have a problem and we would love you to send in the troops, because you know what? The people, they have to be protected.

Now, we are going to do it anyway. We have the right to do it because I have an obligation to protect this country.

(END VIDEO CLIP)

NEWTON: Thankfully, Stephen Collinson was watching all of this for us. He is indeed in Washington.

I do want to start with, you know, what are essentially two court rulings against the President right now and yet, he is going to go ahead. Let's

begin first with this issue about whether or not he is going to be bringing the National Guard to Chicago. I was a bit confused as to whether he was

inviting the governor and anyone, a city that was having trouble with crime, inviting them to make that call because he does believe the courts

will now stop him from doing that, or because he just thinks it is a good political move.

STEPHEN COLLINSON, CNN POLITICS SENIOR REPORTER: I would plump for the latter, especially because this California ruling only at this point

relates to his action to send troops to California that wouldn't stop him from doing the same thing in Illinois or in Chicago and one of the

complaints by the Democratic Governor J.B. Pritzker of Illinois, has been that he has not heard anything from The White House about sending more

resources to help tackle crime.

So I think in some ways, Trump is therefore calling his bluff. This ruling in California was a setback for the administration, although it says, well,

this was just a liberal judge. We are going to go through the appeals process, that could take some time. And in the meantime, I think that the

President will press ahead with his effort to escalate the use of troops for domestic law enforcement purposes, even though this judge in California

said that exact thing was illegal and unconstitutional.

NEWTON: Okay. And then we go to the ruling on the tariffs. I mean, look, he -- there was a lot of hyperbole there, but also he made the point that he

doesn't really much care if this court ruled against him, that they will very quickly, his administration appeal to the Supreme Court instead.

COLLINSON: Yes, and this is going to be really fascinating because we have this conservative majority on the Supreme Court that was built by Trump in

his first term that has shown quite a lot of deference to his idea that presidential power is expansive and that he has a lot more authority than

many presidents believe they had down through the generations.

That said, it is very hard for a lot of legal scholars to find any grounding for Trump's claim that he has these emergency powers to

personally wield tariffs on other nations. In some cases, for reasons that aren't really to do with trade, like with Brazil, for example, or some of

the ones on the European Union where he is using tariffs as a political cudgel.

So, it is going to be very interesting. The Constitution specifically reserves the power to tariff to the Congress and not the President. So how

is the Supreme Court, even if it is sympathetic to Trump, going to get around this?

[16:05:10]

And then there is the question of if the court rules against Trump, there is going to be a lot of other avenues the administration will try and

pursue.

NEWTON: Stephen, forgive me and stand by. We are now going to the Governor of Illinois. Let's listen in.

GOV. J.B. PRITZKER (D-IL): -- of the United States likes to go on television and beg me to call and ask him for troops. I find this

extraordinarily strange, as Chicago does not want troops on our streets. I also have experience asking the President for assistance, just to have the

rug pulled out from underneath me when execution meets reality.

I refuse to play a reality game show with Donald Trump again. What I want are the federal dollars that have been promised to Illinois and Chicago for

violence prevention programs that have proven to work. That is money that Illinois taxpayers send to the federal government and it is an insult to

any and every citizen to suggest that any governor should have to beg the president of any political party for resources owed their people.

I'd like to ask a question of my own, and its one the press should be asking as well: When did we become a country where it is okay for the U.S.

President to insist on national television that a state should call him to beg for anything, especially something we don't want. Have we truly lost

all sense of sanity in this nation, that we treat this as normal?

As I have done since becoming governor, I've been reflecting on my responsibilities to the people of Illinois, and one of those duties is to

share with the public exactly what we know.

In the coming days, we expect to see what has played out in Los Angeles and Washington, D.C., to happen here in Chicago. First, Donald Trump is

positioning armed federal agents and staging military vehicles on federal property such as the Great Lakes Naval Base. It is likely those agents will

be with ICE, Customs and Border Patrol, the Department of Homeland Security and other similarly situated federal agencies.

Many of these individuals are being relocated from Los Angeles for deployment in Chicago. We believe that staging that has already begun

started yesterday and continues in to today.

Second, unidentifiable agents in unmarked vehicles with masks are planning to raid Latino communities and say they're targeting violent criminals. As

we saw in Los Angeles, a very, very small percentage of the individuals they will target will be violent criminals.

Instead, you're likely to see videos of them hauling away mothers and fathers traveling to work or picking up their kids from school. Sometimes

they will detain, handcuff, and haul away children. They are law-abiding individuals who pay taxes and contribute to the communities who feel safe

going to work and attending mandatory immigration check-ins, in other words, they are following the law.

We have reason to believe that Stephen Miller chose the month of September to come to Chicago because of celebrations around Mexican Independence Day

that happen here every year. It breaks my heart to report that we have been told ICE will try and disrupt community picnics and peaceful parades. Let's

be clear, the terror and cruelty is the point, not the safety of anyone living here.

Third, as lawful citizens exercise their First Amendment rights, Trump and his team will be looking for any excuse to put active duty military on our

streets, supposedly to protect ICE. We have reason to believe that the Trump administration has already begun staging --

NEWTON: And you've been listening to Illinois Governor J.B. Pritzker, who said quite emphatically that he is not buying what the President is

selling, saying, "I refuse to play a reality game show."

Stephen Collinson is back in here for us.

I mean, look, Stephen, it certainly does seem as if the Democratic spine in the United States is stiffening. He claims that the Trump administration is

already staging authorities to have this operation in Chicago.

COLLINSON: Yes. You know, that's quite an extraordinary set of remarks there. It sounds like the head of a country that is expecting an invasion

from a foreign power. It reminds me a lot of what the United States was saying when it offered Intelligence about the Russian invasion of Ukraine

that was impending a few years ago. And to have that coming from a state governor, talking to the President of the United States on television, I

think shows you how tense this situation could get, a classic showdown between state and federal power that's been at the core of the political

tensions in the United States in nearly 250 years.

[16:10:35]

But this is a really serious moment. Of course, J.B. Pritzker is a bit of a performative politician himself. He is one of the Democrats that are

thought to be thinking about a run for The White House in 2028. So you have to take that political context into consideration here. But really a

remarkable moment when he is basically warning the citizens of Chicago that the federal government is about to move in on their city.

NEWTON: And in fact, categorically calling it an invasion.

Stephen Collinson, grateful to you as we continue to parse these developing events. Appreciate it.

And up next for us, Kraft Heinz is splitting up. We will take a look at why the mega-merger failed and how it plans to separate its brands.

(COMMERCIAL BREAK)

NEWTON: Chinese leader, Xi Jinping is holding a massive military parade in just a few hours from now in a show of strength for friends and foes alike.

Mr. Xi will address Wednesday's victory parade in the presence of Russia's Vladimir Putin and North Korea's Kim Jong-un. Now, they recently attended

the SCH Summit in China, which Beijing has used to promote itself as an alternative to the western led world order. Xi is making a show of his ties

with Russia. He struck a deal with president Vladimir Putin to build a new gas pipeline, sending Russian gas to China through Mongolia.

Mr. Putin, hailing Moscow's unprecedentedly high relations with China.

Andrei Kozyrev served as Russian Federation's first Foreign Minister until 1996, and he joins me now from Washington, D.C.

Good to see you.

As we note that Xi seems to be moving ever closer to Putin for his own expedient reasons, saying he is willing to work with him and I am quoting

Xi now, to promote the construction of a more just and reasonable global governance system.

I want to ask you, in practical terms, what does that look like for Russia and China now both economically and politically?

[16:15:06]

ANDREI KOZYREV, FORMER RUSSIAN FEDERATION'S FIRST FOREIGN MINISTER: Nice to be here. Thank you. It means very little at this stage. I mean, the whole

thing -- in there, a parade before that, there were kisses with the participation of Modi, the Indian Prime Minister, which is noticeable,

though, all of that is just a show against President Trump, against America, but there is an important lesson to be learned that if you want to

stop the war in Ukraine, you don't fight all of them because it only gets them closer together.

You fight Russia and to fight Russia, you use weapons because Putin uses weapons. It is a war.

NEWTON: In terms of what you're saying, though, President Trump, we just heard from him in the press conference again now does not seem willing to

really get tough with Russia, even as he punishes India for buying Russian oil. We just talked about it, right? Russia has cut a new deal with China

for a massive gas pipeline.

I mean, these are wins for Russia, are they not? Significant wins for Vladimir Putin. They're real, they are substantive.

KOZYREV: Yes. It is a win, but it is mostly you know, impressionist kind of win. It looks like a win. As I said, it is a show. But, you know, that

pipeline is under negotiations for ages already, and it was not decided, very small things, you know, if they mean business, they will decide on who

pays for that.

You know, business people understands that somebody has to pay, but it was not even probably discussed let alone decided or who will be the owner of

this pipeline. So those very small issues, to my mind, as I was in politics, but I was 20 years in business, too, it sounds like nothing was

decided, but it could progress.

You know, they have difficulty, all the three of them against each other, you know, China against Russia, Russia against China, but Russia, of

course, is dependent. It is now a client of the Chinese leadership and Russia should be fought as it is on its own because Putin is the aggressor

already. He wages the war in Ukraine. So that is what I am saying, that you don't fight -- America should negotiate with China. America should have

relationship with India or also on its own, because those are great powers, great economies and America will very much suffer from wrong moves there.

So don't spread -- so to say don't multiply your enemies. You try to accommodate one way or the other and those two --

NEWTON: And again, in this press conference that we just had, President Trump again said he has a great relationship with Xi. He has a great

relationship with Modi. But I ask you, when it comes to Vladimir Putin, do you believe, even if it is just optics, that there is anything that

President Trump can do right now to convince Putin that he has too much to lose by continuing this war in Ukraine? Even if he does have that leverage,

I've asked you before, the President seems very unwilling to use any of that leverage.

KOZYREV: Yes. The only thing which would really work with Putin are the weapons. I am trying to convey this simple message. Putin is using the

army, the weapons. He is waging the war in Ukraine. You can stop him only with the tools equal to what he is using, and America, of course, could

give Ukraine.

I don't mean American forces direct engagement, but I mean, give Ukraine the most potent weapons as American weapons are much better than Russian.

And, either Europe will pay for that, and not China, of course, but Europe or America could also spend a little bit and then Putin will hurt and be

stopped.

[16:20:25]

NEWTON: It is certainly, again, President Zelenskyy who called for exactly this just in the last few hours.

Andrei Kozyrev, we will leave it there. Thank you. Always grateful.

KOZYREV: Thank you. Thank you so much.

NEWTON: Now Americans are traveling home following Labor Day, marking the unofficial end of summer and the summer travel season, and it has also been

a busy summer for airlines like Etihad. It launched nonstop service between Abu Dhabi and Atlanta, its longest new route in five years.

The airline is planning to expand ever further as it begins to receive 30 - - count them three-oh -- new Airbus A321LR aircraft.

The CEO of Etihad Airways, Antonoaldo Neves joins me now from Atlanta in fact. I am going to assume you arrived there on one of those new routes. I

don't think I have to ask. And we will count this as your victory voyage. I will give it to you, but it won't last long.

You have staged quite a comeback at this airline. I want to talk to you about your strategy ahead, and specifically, how does the U.S. market

feature into it?

ANTONOALDO NEVES, CEO, ETIHAD AIRWAYS: Paula, thanks for having us. It is really very important for Etihad to be here.

We are excited. I mean about two or three years ago, we revisited the network strategy for Etihad. We decided to make a big bet right on the

Middle East, on India, on Southeast Asia and not only that, but also to bring more tourists to Abu Dhabi. So it is working very well.

I mean, Europe and the U.S. are important component of that strategy, so today I mean with -- we are the best option from Europe and the U.S. in

terms of frequencies to connect beyond Abu Dhabi.

I mean, if you want to come from Atlanta to a place like Colombo in Sri Lanka, right, I mean, we do 17 hours only. It is the fastest connection.

So the strategy is working very well and we are very excited about the prospects in the U.S.

NEWTON: Now, your Gulf competitors are also doing well. Are you competing with them route for route or what does your plan actually look like? Does

the strategy going forward look a little different in terms of competing head-to-head with them, or you're doing something else?

NEVES: I think that's the central point of our network, Paula. When you mentioned the 321LRs that we are bringing is actually to make sure that we

have a network that has a differentiation factor from competition. I mean, we believe that our network should be unique. One of the reasons we chose

Atlanta and Charlotte, that's going to start next year is because the cities were underserved to the Middle East and to India.

So we believe that the way to go is to create a network that is not overlapping with other airlines so that we can provide our customers not

only an amazing customer service, I mean, a very premium experience, but also provide something that others cannot provide.

And along those lines, we have in Abu Dhabi, the only, we call CBP facility, but you can clear immigration, U.S. Immigration and Customs in

Abu Dhabi and that's an extraordinary lever that we are using to actually provide our customers seamless experience, because arriving in the U.S., as

I arrived yesterday in the domestic terminal, is a very different experience, right? You're very clear. You clear Immigration in Abu Dhabi,

you clear Customs in Abu Dhabi, and if you are connecting beyond the gateway in the U.S., you're going to go through.

So we really need to have a different network and strategy when it comes to airlines.

NEWTON: That's certainly offers convenience for passengers who can just pre-clear U.S. Customs and Immigration on the ground there in Abu Dhabi.

I do want to talk about, though, your loyal passengers and some of the ones that I've been speaking to want something better on rewards, on points, on

partners. Is there anything you can give them on that you can tell us about?

NEVES: I mean, it is a big topic in the industry, right? I mean, all the loyalty programs are booming, right, and as the loyalty programs, they grow

we -- the customers want more because they fly more and they become more loyal and they expect more. So we have revamped recently the product.

We are one of the few products in the world, few loyalty programs in the world, that you can choose your own benefits. So if you are a loyal member

in Etihad and you say, look, for me, bags are more important than lounges as an example, right? Or I want bags, I want lounges, but that other

benefit is not as important. I mean, you can tailor your own scheme. So we are one of the first airlines to do that and that has been a major success

for us.

[16:25:04]

NEWTON: Okay, I was hoping for a little bit more in terms of more on the points, but we will wait to hear more announcements from you in the next

few months on that.

Before I let you go, a bit of a cheeky question, but I will ask it anyway. When you look at the success of Emirates and you have just articulated, you

know, the fact that you're not doing the same routes, you're not competing head-to-head necessarily with them, does it make more sense to actually, if

not have a merger with them, but just kind of more of an alliance? Would that not really help passengers in the region?

NEVES: The market is so big in the region, right? I mean, I come from Brazil, right? I did a long term planning for Brazil in 2010. I was back

then a McKinsey partner, and at that time, Brazil had 80 million passengers and India in 2010, they also had 80 million passengers.

Today, India has 200 million passengers. Today, the UAE has 100 million passengers. Not just in Qatar that has more than 50 million passengers. If

in the U.S., right, you can have airlines competing in New York, LaGuardia and Newark, right, I mean, you have mainly for airlines competing in that

market. Why can't we have in the Middle East many airlines working and competing?

And so I don't see any reason why we can't in the Middle East have strong carriers, and that's working very well because the Middle Eastern carriers,

they have a lot of efficiency and that provides us a very good competitive leverage.

NEWTON: We will continue to see, because I know what passengers are looking for beyond the services is also competitive pricing. So we will wait to see

more developments on that.

Always good to see you. Thanks so much. Appreciate it.

NEVES: Thank you, Paula.

NEWTON: Now were on that topic again, summer, it might be coming to a close for some, but there is still enough time to enjoy. Yes I give you the

humble hot dog. Can you see it in there? And if you can't -- you have to enjoy a hot dog, it must come, right? Everybody knows it comes with

ketchup, Heinz ketchup. Not just Heinz, any kind of ketchup and mustard.

But we need to talk to you about the humble hot dog and the business that will separate. So right now, these two are divorcing from the dogs

themselves.

This is the separation of what was once a mega merger. One will focus on the sauces right here -- spreads, sauces that Heinz has like ketchup,

mustard, Philadelphia cream cheese. The other on other grocery items which quite frankly haven't been that successful at times given eating habits in

the United States, brands like Oscar Mayer -- do I have that upside down -- and Kraft Mac and Cheese.

Now, while I pour the mustard and the ketchup, we are now going to talk to Nathaniel Meyersohn, who is going to explain all of this to us and what I

really want to know from you is how the humble -- Warren Buffett himself got this wrong. How did he get this wrong? Because these were supposed to

go together. They're no longer going to be together.

NATHANIEL MEYERSOHN, CNN BUSINESS REPORTER: They do look very good together, Paula, but --

NEWTON: They always do. That's not the point.

MEYERSOHN: -- investor-wise, it has been a disaster for Kraft Heinz since Buffett engineered this merger about a decade ago, and you think about when

this happened, 2015, completely different era.

Since the two companies got together, the industry has transformed and the company with its scale and its size, just has not been able to adapt to

consumer trends, to newer brands and to all the changes in the industry.

You know, these are legacy companies. These are legacy brands. And we are seeing kind of upstart brands all the time since 2015, and also consumers

are looking for healthier options, newer options, not kind of the lumbering, Kraft and Heinz brands. And so we are seeing a separation kind

of from the slower grocery brands, like, you know, Oscar Mayer, Lunchables. You know, Lunchables has really struggled from the faster growing sauces

division.

NEWTON: It still is, I would say an admission of failure.

Now, PepsiCo in the other direction, what more did we learn about investments in that company today?

MEYERSOHN: Yes. So really a big day, Paula, in the food industry. So we have Kraft Heinz and also Elliott Investment, one of the major activist

funds taking a stake in PepsiCo and saying it is going to push for changes. You know, Pepsi is another company that was doing really well, but has

since been struggling. It made some bad bets.

Actually, you know, PepsiCo, it is not just a soft drink brand, it also owns Doritos, Cheetos -- all of these snack brands, but people right now,

they are cutting back on snacks because of inflation, higher prices, concerns about their health benefits, and they are actually drinking more

soda than they were. Coke is doing really well, Dr. Pepper has overtaken Pepsi as the number two soft drink in America. And so Elliott is saying

PepsiCo has gotten it wrong. They want Pepsi to sell some of its newer brands and really to focus more on soft drinks.

NEWTON: I'd say, though, that the whole Heinz issue, the big merger is a cautionary tale for that investment as well. But you heard it here first,

Nathaniel. Look, isn't that nice? Did you see? I did spread the ketchup and mustard just so, and that's why I am still shocked that after ten years and

you showed the stock price there, right, that this merger failed so badly because it looks so good on a hot dog.

Nathaniel Meyersohn for us, thank you so much. Appreciate it.

And we are one step closer to knowing the fate of Brazil's former president, Jair Bolsonaro. Just ahead, the latest on his landmark trial,

which is nearing a verdict.

[16:31:02]

(COMMERCIAL BREAK)

[16:34:07]

NEWTON: So the historic trial of Brazil's former president Jair Bolsonaro has entered its final phase. Closing arguments got underway a short time

ago. The country's Supreme Court will decide if he's guilty of plotting a coup after losing the 2022 presidential election.

Bolsonaro denies any wrongdoing and says the trial is politically motivated. U.S. president Donald Trump has echoed that sentiment, calling

the proceedings a witch hunt and tying a 50 percent tariff on imported Brazilian goods to the trial of his ally.

CNN contributor Stefano Pozzebon now joins us on this story.

And good to see you, Stefano. Look, you've reminded us many times, this is already an incredibly divisive case in Brazil. And now President Trump has

raised the stakes.

STEFANO POZZEBON, CNN CONTRIBUTOR: Yes, indeed. It's been dubbed, Paula, the trial of the century down there in Brazil. And frankly, for once, no

other nickname was more appropriate.

[16:35:00]

It is the first time since Brazil restored its democracy in 1989 that a former head of state, a former president, is being put at trial with such

serious allegations. Bolsonaro, together with other seven co-defendants, has been accused of attempting a coup d'etat and overthrowing democratic

rule of law. And today was the first of eight televised hearings that we're going to see in front of our eyes, celebrated in the Brazilian Supreme

Court in the next couple of weeks.

If Bolsonaro is indeed convicted, and we are hearing from sources that we might hear that conviction between next Wednesday or the following Friday,

so around the 10th to 12th of September, if he's convicted, that the former president risks up to 40 years in prison. And of course, all the eyes will

be set onto the White House to understand how Donald Trump will take these news after he has already -- threatened with 50 percent tariffs and with

withdrawing the visa of some of the prosecutors who have been -- who have gone after Bolsonaro in the last few weeks as a way of him punishing what

he thinks is a biased prosecution, a biased investigation.

If you ask Brazilians, well, those who like Bolsonaro, those who support Bolsonaro, will tell you that this is pretty much nothing short of a witch

hunt. Well, if you ask the -- those who oppose Bolsonaro, they will tell you that this is just democracy defending itself. And unfortunately, I

think we are set for more and more polarizations in the days to come on a pretty much a busy day today here in Latin America, Paula, by the way.

NEWTON: Yes. Yes. For sure, especially given what's gone on. I only have -- I only have a few seconds left. But, Stefano, the president, President

Trump just indicated that in fact against Venezuela, against the ship that they had, in his words, president's words, taken shots at Venezuelan

vessel. Can you fill us in?

POZZEBON: Yes. It's an escalation that is developing in front of our eyes. We have been able to ask the Venezuelan government, the Venezuelan leader

Nicolas Maduro, whether he can confirm these incidents. We don't understand if it happened in international waters or if indeed in Venezuelan

territorial waters.

In the last few days, we have been tracking the movement of seven warships and at least one nuclear power submarine that the U.S. has sent down to the

southeast of the Caribbean Sea with the purpose of stemming the flow of drug trafficking trafficked out of Venezuela.

The Trump administration has repeatedly accused Maduro of flooding the United States with cocaine and being involved, him directly in person, with

drug trafficking. Well, now we're seeing that there is a dramatic escalation in the last few minutes, not even hours. It's literally news

breaking in front of our eyes, Paula.

NEWTON: Yes, and we'll wait to see what comes of that as Secretary of State Marco Rubio is in the region as well.

Stefano Pozzebon, grateful to you. Thanks so much.

Now, the president also made news on tariffs in the last hour. And to that point, Canada's manufacturing sector shrank in fact for a seventh straight

month, in August, as U.S. tariffs weigh on its economy. Its companies are now facing, though, that new uncertainty, right, after a U.S. appeals court

ruled Friday that most of U.S. president Donald Trump's tariffs are illegal. That order is unrelated, though, and keep this in mind, for its

tariffs on steel, aluminum, cars and auto parts.

Meantime, Prime Minister Mark Carney has lifted retaliatory tariffs on the U.S. in hopes of actually reaching an elusive trade deal.

Joining us now is Flavio Volpe. He's the president of the Automotive Parts Manufacturers' Association and a member of the Canadian government's

Council on Canada-U.S. Relations.

Flavio, it's been a minute. I haven't checked in with you this summer, so I'm hoping you do give us a status report just on the trade negotiations.

Right? And specifically when we talk about the sector tariffs, because that's been where the Canadian government has put a lot of their focus.

FLAVIO VOLPE, PRESIDENT, AUTOMOTIVE PARTS MANUFACTURERS' ASSOCIATION: Yes. Paula, great to talk to you again. I think, you put it right. These tariffs

are having an effect on Canadian manufacturing. But included in that is all those great American companies like General Motors, Ford and Stellantis

that are invested in Canadian manufacturing that buy steel from Pennsylvania and residents from Texas are all feeling the same pinch.

There was a deadline, of course, that came and went. August 1st, which Canada and the U.S. were intending on finding a solution and a deal as the

White House puts this on tariffs. And that came and went, but there were meetings last week between Canadian Trade Minister Dominic LeBlanc and

Commerce Secretary Howard Lutnick. And there is this beginning of discussions on the scheduled renewal of the USMCA, the three-party trade

agreement between Canada, U.S. and Mexico.

[16:40:08]

Maybe starting a little earlier. Maybe we wrap that all into there. In the meantime, everybody who's making anything in this cross border region, and

that's in Michigan, as well as Ontario on the Canadian side, are seeing exports in either direction dropped by a quarter. They're seeing their

price of steel and aluminum on both sides of the border going way up. And we're watching Canadians and Americans who are looking at much more

expensive cars, buying less of them.

NEWTON: Right. But, Flavio, you know better than I, it's made no impression on the White House and the American manufacturers, at least, as much as

they're taking a hit on the tariffs in terms of profits, they're eating a lot of the tariffs right now. Prices have not gone up that much. At what

point in time do you think rubber is going to hit the road on that? And you forgive the pun, I'm sure you will, because you and I have been talking

about this for a long time now and those executives still do not seem to be able to bring any pressure to bear on the White House.

VOLPE: It's a really good question. Nobody really knows that answer except that second quarter results for those companies. They're all publicly

traded, were bad. But tariffs have been applied throughout operations in this third quarter. Third quarter results are going to be terrible. And

third quarter results are going to bump up against the U.S.-China deadline of November 12th. The U.S.-Mexico deadline of November 1st.

And those companies, specifically those car companies, are being very public about what we're eating billions of dollars in revenue losses

because of tariffs and things need to change. The White House isn't signaling that things will change, but I did gain some solace in the fact

that the Canadian prime minister heard the president who said, oh, well, listen, we put tariffs on you. You retaliated. We took -- we gave

exemptions on goods that are USMCA compliant. But you didn't.

And so the prime minister, who's like every other world leader here trying to figure out how to deal with Trump administration that changes its mind

from day to day, said, OK, well, let me show you that good faith. Let's start those USMCA negotiations and let's see what happens.

NEWTON: Flavio, I only have 30 seconds. But I have to ask you, it doesn't look good for those negotiations. And never mind the sectoral tariffs. Are

we going to have a new trade deal between Canada, the U.S. and Mexico? I would argue jury out.

VOLPE: Yes. I think you could flip a coin on that. The White House is bent on doing bilateral negotiations where they can bully each partner into

whatever concessions they can make and really not living up to any dispute resolution rules within those agreements or WTO. And the president said

just about an hour ago, look, we're going to ask the Supreme Court to expedite its decision on dropping the (INAUDIBLE) tariffs. We're going to

be in this mess for as long as the president has no other distractions.

NEWTON: OK. I appreciate the candor, Flavio. We will continue to touch base with you. Thanks so much.

Now, U.S. markets were falling today to start what's historically, yes, the worst trading month of the year. As you see, all three markets down there.

But as I said, they were still very close to highs.

That is QUEST MEANS BUSINESS. I'm Paula Newton. Up next, "QUEST'S WORLD OF WONDER."

(COMMERCIAL BREAK)

[16:46:00]

Richard quest, CNN INTERNATIONAL ANCHOR: It's time to embrace new adventures.

It just doesn't get much better than this, does it?

Seize the moment. In this "World of Wonder."

Jebel Akhdar means green mountain. And today I see why it's living up to its name. Unlike the blistering heat around the city, here, the air is cool

and the views seem to go on forever. Tucked into the cliffside, the Alila Resort. Here, everything moves slowly, even the cooking.

How long do you marinate it for us?

PANKAJ WALIA, EXECUTIVE CHEF, ALILA JABAL: We'll keep it for the nine hours.

QUEST: Nine hours.

WALIA: Yes.

QUEST: You really have to plan ahead, don't you?

Pankaj Walia is the executive chef.

WALIA: We will just rub on the surface of the meat nicely.

QUEST: He's making sure Oman's beloved dish. You can make it with goat or lamb. You cover the meat in a myriad of spices, wrap it in a banana leaf,

and then shove it underground to cook. Once it's in there, you can't check on it. I mean --

WALIA: You cannot check.

QUEST: You can't check it.

WALIA: Tomorrow only. It's a slow method of cooking, so it will be cooked for 24 hours.

QUEST: Oh, look at that. Oh, my goodness. All right. Here it goes.

It's buried, it's sealed. And it won't be ready until tomorrow. Then Awesome and I will be back to check and eat. Oh, sure.

While we are waiting, my attention is turning to something blooming up the hill. It is spring in Jebel Akhdar and that means rose season.

AWESOME AL, CAMERAMAN: Do they have thorns? Yes, they do. I've just found that out.

QUEST: Smells. I mean this is your classic perfumed rose smell. Light and - -

Every spring, hundreds of thousands of damask roses bloom across these mountains.

AWESOME AL: Fluttering away.

QUEST: Fluttering away.

And for centuries, they've been harvested by hand. An art in itself.

UNIDENTIFIED MALE: You can hold it like this.

QUEST: You hold it from behind. You push it from the front and --

UNIDENTIFIED MALE: OK.

QUEST: There we go.

AWESOME AL: Good job.

QUEST: How'd you get those?

AWESOME AL: Jump in.

QUEST: The roses are best picked after sunrise when their oil content is at its highest.

Getting the rose at just the right moment. Look at this. Just like this. Look at that. It's fully open, but it's not wilted yet. And off it came

like a dream. Look at that. That's absolutely perfect.

These roses may be beautiful, but they are being picked for business. Here they will turn a rose into just about any liquid potion, lotion, and then

sell it.

Gorgeous. Right. Ready?

AWESOME AL: Let's go make some perfume.

QUEST: Let's go make some perfume.

So I've been busy picking more roses. Now I just need to sell them.

I have brought you some roses.

UNIDENTIFIED MALE: Only this much. What am I going to do with this? It's good for a cup of coffee.

QUEST: I beg your pardon? I picked these myself.

One kilogram of roses makes around 300 to 400 milliliters of rose water. Apparently, I didn't pick enough.

UNIDENTIFIED MALE: This is 100 grams.

QUEST: And what will that make?

UNIDENTIFIED MALE: Rose water. Three drops.

AWESOME AL: Back out you go, Richard. Back to the rose field.

QUEST: Three drops. But their quality.

I always thought rose water was about squeezing or mixing. Not a bit of it. Getting rose water is about heat and condensation.

UNIDENTIFIED MALE: You want to put your roses?

QUEST: You haven't paid me for them yet.

UNIDENTIFIED MALE: Those roses, oh, my god.

QUEST: The fresh petals are packed tightly at the bottom of the copper pot.

[16:50:04]

A bowl of cold water sits at the top of the sealed lid, cooling the metal. The steam from the petals condenses, drips into a collection bowl that sits

on top of the roses, et cetera., et cetera. And there you have rose water for auntie and grandma.

UNIDENTIFIED MALE: There's still one rose.

QUEST: No, I was taking that home with me.

I cannot resist it. A rose by any other name, would it smell as sweet?

QUEST: Oh, it's got rose water in it or it's got something in it.

AWESOME AL: Remove your glasses. That's it. That's a lot.

QUEST: Yes, that's a lot.

UNIDENTIFIED MALE: Yes, that's what you need to be younger. You do like this.

QUEST: Now remember that lamb we buried in the ground? It should be just about ready. Awesome has earned his bit, so dinner. Adieu.

AWESOME AL: Here we go.

QUEST: There, yes.

AWESOME AL: Look at that.

QUEST: Very nice. Yes. Thank you very much, sir.

AWESOME AL: Bon appetit.

QUEST: Bon appetit. This redefines slow cooking, doesn't it?

AWESOME AL: Yes. Soft. And the flavor comes through, doesn't it?

(COMMERCIAL BREAK)

QUEST: The highlight of my visit to Oman is when I get to meet the spirits deep in one of the largest cave chambers on earth, Majlis Al-Jinn. It is a

vertical drop of more than 120 meters. No easy way in, no easy way out. In fact, just getting to the cave was an adventure.

AWESOME AL: I feel like I'm doing the Dakar Rally, Richard.

QUEST: Yes. Is this the first time you've driven in such terrain?

AWESOME AL: I've done a few mountain roads like this.

QUEST: Slow down, sir. Good grief.

AWESOME AL: How far is the drop down there? I'm too scared to look.

QUEST: There is a very nasty drop down there.

AWESOME AL: Oh, I thought getting -- going down the cave was going to be the scary part.

QUEST: To be fair, Awesome is a tremendous driver and we made it to base camp and the views, they were worth every scary turn.

It's beautiful.

AWESOME AL: Oh, you look like the Friedrich. You know that famous painting of the guy with the stick looking out over a mountain range?

QUEST: Did I mention I don't like camping? A night under canvas always ends up being more trouble than you thought. And so it was. My tent collapsed.

Bijan, my producer's tent, blew right over. And we were lucky we didn't tumble down the mountain.

UNIDENTIFIED MALE: This isn't going well.

UNIDENTIFIED MALE: No, it's not. I think Al's snoring in there.

UNIDENTIFIED MALE: You're snoring in there?

QUEST: Oh, and as for Awesome, the wind didn't bother him one bit.

I am not one of life's natural camping enthusiasts. I like a nice ensuite with hot water.

AWESOME AL: So you didn't enjoy it?

QUEST: Oh, no, I didn't say that.

So on to the cave and the mountain of equipment that is already there, prepared by Justin Halls and his team at Hoosac. They've rigged the cave,

main line, safety line, pulleys, winches, anchors. It all has been double and triple checked. I knew I was in good hands, but you can't be too

careful, so, Awesome, you go first.

AWESOME AL: Oh, that's a big hole. I looked down.

[16:55:02]

QUEST: What's it like?

AWESOME AL: Putting that once I'm going. It's lovely. I'm still not looking down. But --

QUEST: You don't have much choice, do you?

AWESOME AL: The edge up here is beautiful. Oh, my good lord.

QUEST: Welcome to my world. Are you enjoying it yet?

AWESOME AL: That's not necessarily a word I would use.

QUEST: That's my line, Al. That's my line.

AWESOME AL: You shouldn't have sent me first. I'm stealing all the good lines.

UNIDENTIFIED MALE: He's down to about 20 meters. All looking good.

AWESOME AL: This is just wild.

UNIDENTIFIED MALE: That's the stretch coming out of the ropes. He's on the ground.

AWESOME AL: OK, we've touched down.

QUEST: Now my turn.

The descent takes around 20 minutes to complete. It is frightening and exciting.

I'm on my way down. I'm not looking down at all, but it's terrifying. And yet I'm enjoying it at the same time.

The chamber is massive, big enough to fit the Great Pyramid of Giza inside. The camera doesn't do it justice. For reference, over there, that's me.

AWESOME AL: You're like a little speck.

QUEST: I'm astonished at just how beautiful this is.

My mind tells me nothing can go wrong. And yet I'm just waiting to hear the inevitable ripping sound followed by, well, you can imagine. When I finally

get down and walk on the surface, it feels otherworldly. There is nothing to do but stand still and take it all in.

Part of me doesn't want to leave just because it is so extraordinary. The privilege of being down here.

At the start of this trip, I said, geography doesn't just frame the story in Oman. It is the story. The silence, the scale, the beauty and being with

friends to enjoy it all.

My visit to Oman has been particularly special because it's the hundredth country that I've visited in the world. And so to the word that best

describes all of this. Overwhelming by far, and you all want to come here and be overwhelmed for yourself.

Muscat in Oman, absolutely part of our "World of Wonder."

To the light. How do I get out?

(COMMERCIAL BREAK)

END