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Rep. Ilhan Omar (D-MN), Is Interviewed About Friday Deadline Looms For Trump & Congress To Avert Shutdown; Police Search For Univ. Of Pittsburgh Student In Dominican Republic; DHS Converts App From Seeking Asylum To Self-Deporting. Aired 11-11:30a ET

Aired March 10, 2025 - 11:00   ET

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

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[11:00:49]

PAMELA BROWN, CNN ANCHOR: Happening now trade war ramping up along with recession fears the latest and the tit-for-tat with America's largest trading partners. I'm Pamela Brown.

WOLF BLITZER, CNN ANCHOR: And we want to welcome our viewers here in the United States and around the world. I'm Wolf Blitzer. And you're in The Situation Room.

We begin this hour with the latest chapter in President Trump's trade war as China and Canada are retaliating with a new round of measures including tariffs on key U.S. agricultural goods.

BROWN: And this morning the White House is downplaying fears of a recession despite the President himself refusing on at least two occasions publicly to rule it out. Let's go now to CNN White House reporter, Alayna Treene. Alayna, what are you learning this morning?

ALAYNA TREENE, CNN REPORTER: Well, look, it's clear, one, the President was refused to rule out not only, you know, high prices being an impact of his new tariff policy but also wouldn't rule out a potential recession in the next year or so. And not only did that once we saw him do that on "Fox News" yesterday, but then he also doubled down on that on Air Force One yesterday.

But, look, what is very clear to me is that what they are trying to do is argue that some of the -- the, you know, downsides of his tariff policy. We're seeing the stock market fall again today. We're seeing concerns from really the global markets and also of course the United States trading partners on the news of what he is doing with Mexico and Canada. They're trying to argue that that is temporary. That is the argument we heard from Kevin Hassett this morning, one of the President's top economic advisors, arguing that this is going to be a temporary phenomenon. That is the words that he used.

And he also tried to argue that the broader economic agenda and policy that the Trump administration is working on including some of those tax cuts that we know they're trying to get into that spending bill. We'll see if that passes on Friday if there's a government shutdown that could just throw more uncertainty into all of the markets in the economy. But they're trying to argue that that will offset some of what they are seeing play out now with the negative impact to tariff policy. But I think by and large we've heard now from several people on Wall Street. We have a Goldman Sachs. We have J.P. Morgan and others saying that, you know, perhaps due to this -- this trade deficit and -- and the tariff policy that the President is enacting, there could be a recession in the next year.

So the President would not rule that out and really continuing to kind of insert a lot of that uncertainty we've seen with this whiplash and the stop-and-start tariffs just kind of adding fuel to that fire, Pamela and Wolf.

BROWN: All right, Alayna Treene, thank you so much. Wolf?

BLITZER: And right now up on Capitol Hill, the race is on to avoid another federal government shutdown. The House of Representatives is expected to vote tomorrow on a stopgap bill to keep the government open and running through September. But can Republicans with their ultra slim majority in the House get it passed without help from the Democrats. I want to bring in CNN congressional correspondent, Lauren Fox. She's up on Capitol Hill. So Lauren, what are you hearing from Republicans on this bill's chances?

LAUREN FOX, CNN CONGRESSIONAL CORRESPONDENT: Yes, Wolf, the first stop of course will be the House of Representatives where Republican leaders have been furiously trying to coalesce their members around this spending bill that would keep the government funded until the end of September. Now traditionally a lot of conservatives have sworn off the idea of these stopgap measures insisting that they wanted negotiations to lower spending in a full-year spending bill.

However, at the urging of Donald Trump and the fact that Republicans believe they're going to have to carry this bill on their own tomorrow, we are seeing a lot of Republicans saying that they will support this piece of legislation. Now the huge question mark is whether or not there will be enough of them. Already there is one Republican Thomas Massie who has said he will not support this piece of legislation.

And given the narrow majority in the house and the fact that a lot of Democrats are warning they won't back it, that doesn't leave Johnson much room for air. Now even if this can get out of the House of Representatives, you are seeing signs of trouble ahead in the Senate that is because over in that chamber they're going to need a number of Democratic votes. Right now it's not clear whether they would have enough even if the House can get this out of their chamber tomorrow. Wolf?

BLITZER: Yes. Stakes clearly are enormous. Lauren Fox reporting for us, Lauren, thank you very much.

[11:05:05]

I want to get some more on all these major new developments joining us now Democratic Congresswoman Ilhan Omar. She sits on the House Budget Committee. Congresswoman thanks so much for joining us. As you know the majority -- minority leader, the Democratic leader of the House, Hakeem Jeffries, is strongly opposing this temporary funding bill to keep the government open and operating spending money through the end of September. Some Democrats have privately discussed supporting it. Can you tell us where you stand?

REP. ILHAN OMAR (D-MN): Yes, I mean, I -- I think Leader Hakeem Jeffries is very clear that we cannot support a continued resolution when Republicans who control the House and the Senate have not made any effort to negotiate with us on what the C.R. would look like. We know that there is $6 billion in defense spending increase. That is not something a majority of Democrats including myself are in support of especially when they are making $13 billion in -- in cuts to programs that people care about.

BLITZER: When you say a C.R., you mean a continuing resolution?

OMAR: A continuing resolution, yes.

BLITZER: It's a stopgap measure to keep the government open and operating and providing the funds for people all around the country that they desperately need.

OMAR: Yes, oftentimes what is more desirable is a clean one or a negotiated one by both parties and we don't have it neither of those are the options that were being given.

BLITZER: But if there is a government shutdown, how concerned would you be that the public at large would blame the Democrats for that?

OMAR: Well right now the House is controlled by Republicans, the Senate is controlled by the Republicans and the presidency is in the hands of the Republicans, so it is their job to make sure that the government has the resources it needs in order to continue to function. And I think the American people are well aware of that fact and that is who they are going to blame.

BLITZER: But do you think the Democrats should negotiate now with the Republican leadership in the House and try to get some benefits that you want in order to approve this continuing resolution and to keep the government open?

OMAR: Yes. And -- and Wolf that's where the problem exists as Republicans have not been willing to negotiate with us whether it's in the House or in the Senate. They are doing this on their own. And without a negotiation, you're not going to have a bill that both parties can agree on.

BLITZER: But you know the pain that would develop if the government shuts down.

OMAR: Severe, severe.

BLITZER: Especially at a time when we see all these federal government jobs being eliminated people being fired given five minutes notice, go home, don't come back. If you -- you can only imagine what would happen if the government doesn't have any money to keep operating. OMAR: No, it's going to be severely devastating as you remember in 2019 when I got sworn in, we walked into the largest -- the longest shutdown. And that was only partial. And we've seen the kind of harm that was cost to people. This is going to be a full government shutdown. We haven't been able to pass a single approves bill. So that is why it's even more important for the party that is in leadership to find a pathway forward to make the government to continue to keep the government open. And at this moment they are gambling with the lives and the resources of the American people.

BLITZER: Stakes are so enormous.

OMAR: Yes. And they're being very reckless.

BLITZER: Pamela has a question for you.

BROWN: Clearly Democrats are looking at this as a way to have leverage. But I think that there's a question overall about Democrats messaging and how united or ununited you are. I mean just over the weekend you heard Democratic Senator Elissa Slotkin say that Democrats have been trying to find their footing. And then you have Hakeem Jeffries on the other end of this saying Democrats have Republicans on the run. Which is it in your view?

OMAR: I mean, it -- it does obviously take some time when -- when there is a transition in -- in power. And I -- and I think we are finding our path forward. It is clear that with some of the decisions that the administration is making in some of the firings that we've been talking about, the looming government shutdown, Republicans are in a bad position because they are following a leader that is reckless. They are following a leader that is chaotic. They are following a leader that likes the -- the idea of throwing everything in -- into the fire. And so that creates a problem for them because they're unable now to answer to the American people that they are supposed to represent. That's why they're shutting down their in- person town halls because they are no longer able to in-person defend what -- what their constituents are really upset about. And -- and I think that's what Leader Hakeem Jeffries is talking about when he says we have Republicans literally on the run.

BROWN: I want to follow up with something else because we recently had one of your Republican colleagues, Brandon Gill, on the show. He said that America would be better off if you were arrested and deported. He also said that there was audio of you advising what he said are -- are illegal immigrants here from Somalia on how to evade ICE detection. I want you to respond to that.

OMAR: Yes, I mean again, you know, these are people who have really stopped caring about our institutions, really stopped caring about our Constitution. We know that folks who are here whether they are documented or undocumented. We know whether you are a permanent resident or you're a citizen. You have constitutional rights. And it is really important for people to know those rights. I know that it is red meat for his base that are xenophobic and -- and racist to -- to say to them that I am going to find a way to arrest and -- and deport a -- a member of Congress who he thinks is -- is doing something wrong when I am doing the right thing In trying to make sure everybody that is within my constituency has the resources and the information that they need.

[11:10:44]

BROWN: Just -- go ahead.

BLITZER: And she was democratically elected by members by -- by the people in her district.

BROWN: Yes, of course. But just -- I just follow up very quickly. Just be clear, you're not calling his -- all of his base xenophobic and racist, right?

OMAR: Well, I mean he is feeding to something. He has a petition out. He's getting donations. That's what this is all about. He knows he can't deport me. There is no grounds for -- for my arrest.

BROWN: Of course not. Of course not.

OMAR: So this information is only being put out there by him for a reason and that reason is because he has a base that feeds off of that.

BLITZER: Congresswoman Ilhan Omar, thanks so much for coming in.

OMAR: No, I appreciate you all for having me.

BLITZER: Appreciate it very much.

BROWN: Thank you very much for your time.

BLITZER: Please come back.

BROWN: Well this morning there is an urgent search by land, sea and air for a University of Pittsburgh student who is missing in the Dominican Republic. The 20-year-old has not been seen since Thursday. Here's a picture of her right now. Police are interviewing a man who was with her just before she disappeared. Let's go live now to CNN's Rafael Romo. Rafael, what are you learning this morning?

RAFAEL ROMO, CNN NATIONAL CORRESPONDENT: Hi Pam. Good morning. Authorities have been interviewing a young man believed to have been the last person the young college student identified by officials as 20-year-old Sudiksha Konanki was with before she went missing. What I was able to find out overnight through a law enforcement source in the Dominican Republic is that this young man in his 20s is not considered a suspect at this time.

The same source told me earlier this morning that the young man told police he and Konanki went into the ocean where he claims the young woman was swept away by a wave. But he also told police that he believed she had followed him out of the ocean before he fell asleep on the beach because he was feeling ill. Twenty-year-old Sudiksha Konanki was last seen on surveillance camera with seven other people entering the beach at the Riu Republica Hotel in Punta Cana on Thursday at 4:15 in the morning.

According to my source, Pam, five young women and one young man who were with her left the beach area at 5:55 a.m. But Konanki stayed behind with the young man who was also part of the group. That young man is seen on surveillance video leaving the beach -- the beach area four hours later at 9:55 in the morning. Konanki was reported missing at 4:00 in the afternoon that very same day.

Overnight, Pam, I also spoke on the phone with her father who will has traveled to the Dominican Republic. Subbarayudu Konanki is described his daughter as a very nice girl and very ambitious young woman who wanted to pursue a career in medicine. She's a pre-med student at the University of Pittsburgh where she's a junior. The Dominican National Emergency System is coordinating search efforts on the island for Konanki according to a statement.

Officials are using four teams of drones equipped with advanced technology that have been deployed to conduct a thorough search in the coastal area of volatile. Originally from India, Konanki is a permanent resident of the United States as is her family. Pamela, her father told me they have been living in the country since 2006. Now back to you.

BROWN: All right. Rafael Romo, thank you so much. Wolf?

BLITZER: Very sad story indeed.

BROWN: Yes. It really is.

BLITZER: We'll stay on top of it. Also new this morning, the U.S. Department of Homeland Security is converting its popular app for a whole new purpose. The CBP One app, allowed migrants to apply for asylum here in the United States. But the new conversion means migrants can report their intent to self-deport. CNN correspondent Priscilla Alvarez is here in The Situation Room to explain what's going on. Priscilla, this reflects the immigration priorities of the Trump White House, doesn't it?

PRISCILLA ALVAREZ, CNN CORRESPONDENT: It does. And this is an app that the administration had their eyes on from the very beginning. In fact only minutes after President Donald Trump was sworn in, they cut off this app. So all of the people who had their appointments to come to a legal port of entry had -- they're converting the app to have an entirely different purpose as you described which is essentially to announce that they are willing to self-support by submitting their information to the government, by submitting photos.

Especially saying that they are going to leave the country which again is just so extraordinary when it was originally intended for people to legally come into the country. Now, of course, this is part of a wider campaign by the administration millions of dollars being spent to essentially convey to the world that people should not come here. And if they are here legally that they will be targeted and deported back to their origin country. So certainly this is adding to the message by the Trump administration that they are hunkering down on their deportation pledge. [11:15:8]

Now, in terms of self-supporting, there are people who may be willing to leave the United States who are discouraged by what they're seeing. There are also people who are going to be very hesitant about giving their information to the federal government given the state of play right now. So we'll see how many people actually apply and put their information into this app. But at the end of the day, this was an app that was targeted from the beginning and is now intended to serve a whole new purpose.

BLITZER: We'll see what happens and if anybody knows what's going to be happening it's you. Priscilla Alvarez our excellent reporter, she really knows her stuff.

BROWN: She really does. She's been working overtime for us. Thank you so much Priscilla.

And still ahead, we're going to speak to a distillery owner from my home state of Kentucky, up next, about what the tariffs could do to his spirits and his industry.

BLITZER: Plus, could two of the most infamous brothers in the country be out of prison very soon. The Los Angeles District Attorney is about to give an update on the Menendez brothers case. We'll bring out all of that to you, that's coming up. Stay with us. You're in The Situation Room.

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[11:20:42]

BROWN: Well, the far-reaching tariffs on U.S. goods will strike deep in the heart of my home state, Kentucky. Canadian businesses are pulling U.S. distilled liquor from store shelves. And the retaliation will impact Kentucky's booming bourbon industry. In fact LCBO, the importer of record for all U.S. alcohol products into Ontario has stopped selling all of them as you can see here in red on this website. Retailers, restaurants, bars all cutting off U.S. alcohol. Victor Yarbrough is the CEO of Brough Brothers Distillery in Louisville. Thank you so much for joining us.

So Jack Daniels parent company has said --

VICTOR YARBROUGH, CEO, BROUGH BROTHERS DISTILLERY: Good morning.

BROWN: -- that Canada blocking the sale of U.S. liquor is even more damaging than tariffs. Do you agree?

YARBROUGH: It -- it absolutely because I mean essentially it just takes away the opportunity to really sell anything. With tariffs you can still sell at 25 percent increase. But without anything to sell you absolutely can't sell a bottle at all. So, yes.

BROWN: Yes. I mean so tell us how this is personally impacting you. I mean you and your two brothers you operate this young small batch bourbon distillery. How damaging are these retaliatory measures to grow in your business?

YARBROUGH: It -- they're very damaging. We literally in the midst of a deal with a NBL, which is New Brunswick, which is a smaller province of Canada and that's starting in January. They were due to arrive and made it to come back. Look at a few barrels and that's effectively been suspended indefinitely, so they're -- they're not selling. They pulled like all the shelves as well. So it's just not Ontario. It's all of Canada.

BROWN: Do you know how much you stand to lose in terms of sales?

YARBROUGH: I'll say about quarter of a million.

BROWN: Quarter of a million.

YARBROUGH: Which is a lot for small business.

BROWN: What does this mean for you and your business surviving?

YARBROUGH: Well, we're going to have to pivot so either I mean part of this uncertainty, so we're either, A, we're going to have tariffs or we're not going to have tariffs. You know when you're exporting anything it takes at least three months to six months to actually plan. So we're going to either pivot to another country, double down domestically or just, you know, find another strategy. So, you know, we're just got to work around and pivot.

BROWN: How do you pivot and plan when there's been so much back and forth with the tariffs?

YARBROUGH: Well, I think part of it is realized in our strategy of exporting. So we were already this year was a big exporting year for us when it most of actually is opening our second distillery. So part of that capacity was going to go overseas. So we're also speaking to other countries beyond Canada, you know, France, U.K. so maybe it's a pivot to Columbia, maybe some pivots Brazil. You know the President mentioned reduction of Indian tariffs from 150 percent to 100 percent. So it's a matter of just maybe to pivot each other countries effectively. Domestically, we're in 23 states. Maybe it's the other 27 states that we need to focus on.

BROWN: Yes. And -- and you probably looking at the reciprocal tariffs that could go into effect April 2nd what that could mean for your business. So at the end of the month the European Union is set to resume a 50 percent tariff on American whiskey. How would that impact your company?

YARBROUGH: That would also guess effectively take away ourselves for Europe. So we were -- we got here with the first term -- first tariffs in 20 -- 2018 where we're exporting to U.K. -- to the U.K. And that was 25 percent. So we haven't getting there for about a year. So it was just unsustainable. Now with 50 percent, it's almost like a non- starter. You just can't make any profit that way.

So this is a very critical time frame for exportation in terms of bourbon industry. And we hopefully, you know -- you know, we can work out some type of deal and agreement between the two countries or two unions and -- and figure out a way to -- to move forward and agree.

BROWN: What do you want to see this White House do to protect your business?

YARBROUGH: I think we can get some -- some actual consistency in terms of tariffs. It's just a lot of uncertainty. So either yes, we're going to have tariffs, but no, we're not going to have tariffs ideally not have tariffs. And just be able to build bridges and with the respective countries and effectively just help us be able to sell our product. That's what we need.

BROWN: I know that the bourbon industry in Kentucky is a small -- is a small world a lot of y'all know each other. I'm just wondering what that -- what others are saying that you're talking to other business owners?

[11:25:00]

YARBROUGH: Well, I think the impact guess at the top where you mentioned the LCBO taking everything off the shelves that -- that affects pretty much tremendous amount of the distilleries here in Kentucky. So just the ability not to sell at all, that's -- that's what we're hearing. That's very, very impactful. And it's definitely sending the message. So we just have to -- hopefully cooler heads will prevail and -- and figure out a way to just come to some sort of agreement that works for everyone.

So I know for us in our bourbon initially, hey, were thinking we could pull off, send our gin to Canada instead or vodka, but with everything being taken off the shelves, it's -- we just can't pivot from that at all. So --

BROWN: Yeah.

YARBROUGH: So we have to basically just kind of look at another territory.

BROWN: Well, Victor Yarbrough, thank you for coming on and best of luck with your business.

YARBROUGH: Thank you again for having me.

BROWN: Wolf?

BLITZER: All right. Pamela, right now the Secretary of State Marco Rubio is on his way to Saudi Arabia. He's about to land to try to end Russia's brutal war in Ukraine. What we are learning about U.S. officials mindset right now heading into these critical negotiations.

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