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The Situation Room

Interview With Indian Ambassador to the United States Vinay Kwatra; U.S.-U.K. Trade Agreement. Aired 11:30a-12p ET

Aired May 08, 2025 - 11:30   ET

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

[11:30:00]

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, I think that's set because that has to do with a lot of different things, including past.

There are a lot of past things that we talk -- we -- this is very inclusive. We included everything. And that's pretty well set.

Yes, please.

QUESTION: Yes, Mr. President, the 10 percent baseline tariff remaining in place, is that a template for these future trade deals? You say you're going to keep it here.

TRUMP: No. No.

QUESTION: Is it going to stay in every case?

TRUMP: No, that's a low number. They made a good deal. Many -- some will be much higher, because they have massive trade surpluses. And in many cases, they didn't treat us right.

One thing with the U.K., they had somewhat closed, not like a China, as an example, but they always treated us with great respect. They treated us with great respect. The template of 10 will -- is probably the lowest,. And, therefore, they made that deal.

And -- but they -- we have had just a very special relationship with them. Like, I won't do that deal with cars, I mean, unless somebody shows me that there's another kind of a car that's comparable to a Rolls-Royce. And there aren't too many. This is a good commercial for Rolls-Royce, by the way.

(LAUGHTER)

TRUMP: They're going to order a lot of cars.

PETER MANDELSON, BRITISH AMBASSADOR TO THE UNITED STATES: Mr. President, I wonder whether you would like to buy...

(CROSSTALK)

(LAUGHTER)

UNIDENTIFIED FEMALE: Oh.

MANDELSON: I mean...

TRUMP: Well, the last time this happened, I ended up...

MANDELSON: I would be happy to suggest a discount, obviously a very modest discount.

(CROSSTALK)

TRUMP: I have had many of them, actually.

(LAUGHTER)

TRUMP: The last time that happened, I ended up buying a Tesla. You know that.

(LAUGHTER)

(APPLAUSE)

TRUMP: Go ahead. Go ahead.

QUESTION: Mr. President...

QUESTION: Thank you. Mary Margaret Olohan with Daily Wire.

I had a question about the U.K. deal today. I heard there was talk that part of the agreement would depend on whether the U.K. would respect free speech and freedom of religion. I know the V.P. is really interested in that, talked about that earlier this year. Was there any assurances that you guys got on that front?

TRUMP: You want to handle that?

HOWARD LUTNICK, U.S. COMMERCE SECRETARY: Yes, that was not part of the conversation. Our conversation was an economic conversation from start to finish, closed by the president yesterday. This was a business deal, open their markets, and also protect their workers, grow our markets, and help our workers.

TRUMP: This is about business religion.

(LAUGHTER)

TRUMP: Business is sort of a semi-religion, but not nearly as important. I don't want to get myself in...

(LAUGHTER)

QUESTION: Your new nominee for surgeon general...

QUESTION: Mr. President, will you be asking China to help you close the gap between Ukraine and Russia?

TRUMP: I think so. I think it's a natural thing to ask. QUESTION: What do you expect them to do?

TRUMP: Sure. I don't know. I think we're making good progress. Fighting is a little bit different than it was. I think, if we weren't involved, Russia would be going at it to maybe get the whole thing. Without our involvement, they'd be able to get it, because we supplied a lot of different things, foolishly.

But we have been sort of paid back by doing the rare earth deal that I talked about before. I think that -- I think that we will be very much involved in trying to get that bloodbath -- it's a bloodbath. It's a horrible situation; 5,000 -- it's really more than that. But it's 5,000 soldiers on average a week, mostly soldiers, are being killed, young, beautiful people.

I mean, they're being killed. I see the satellite pictures coming back, body parts lying all over fields, heads and arms. It's so terrible. I have never seen anything like it, actually. And if we can get that stopped, that will be a great accomplishment. And we're trying very hard. And I think we're close.

And Mr. Witkoff is talking constantly back and forth. He's a real professional. He's got a great relationship with both countries. And I think we have a good chance. And, likewise, we're trying to work on Iran to get that solved without having to get into any bombing, as we say, big bombing. I don't want to do that.

I want them to work a deal. I want them to be very successful.

(CROSSTALK)

QUESTION: Your new nominee...

QUESTION: Thank you, Mr. President. Edward Lawrence from FOX Business.

TRUMP: Yes.

QUESTION: On the non-market barriers, how did you get the U.K. to bend? And what was the 11th hour deal or ask?

TRUMP: I think it was really just a part of the overall. I mean, they have so many things that are so good for them. It's going to be so good for the country. And that was sort of easy.

It wasn't -- we had non-market -- I call it non-market or nonmonetary trade barriers. And we had quite a few of them, not nearly as bad as some countries. Some countries have -- they have virtually no tariff, but the rest of it is so brutal you can't do business with them, right? So it's a very important question, actually.

No, I think the overall deal just worked out very well from their standpoint. They were willing to give that in order to get other things.

And you might want to speak to that, Mr. Ambassador. MANDELSON: Look, the point about the deal is that we will continue

reducing tariffs and non-tariff barriers. This is a continuing picture. It's a movie. It's not a still picture here. It's a movie.

[11:35:02]

TRUMP: Yes.

MANDELSON: It continues.

And we're both committed to freeing up trade between our countries. We're both committed to freeing up investment between our countries. And the point about this deal is that it provides a very good template and a very good launchpad for what we can continue to do and build on in the future.

And that's what we're both determined to do.

(CROSSTALK)

TRUMP: You know, many -- many of the -- well, we're going to upset -- many of the...

MANDELSON: That's between us.

(LAUGHTER)

TRUMP: Many of the -- we will keep it confidential.

How about just one more little thing, right? Well, it got the deal closed. And it was handled very well from the other side too. But many of these things that we're talking about, we have been talking about this for 25 years. It's hard to explain when -- if you weren't sitting behind this beautiful Resolute Desk, you just wouldn't get it.

I have been hearing about making a deal with U.K. for 25 years, and especially around the time of Brexit. They wanted to make a deal, so they came out of Brexit, and they make a deal, and they were -- how natural. And it just couldn't be done. It couldn't be done. Good people. And this is a bigger deal. This is a much bigger, better, stronger deal for both of us than we ever even contemplated before. It's a big deal.

MANDELSON: Literally, everyone said that it would end in failure, it would end in tears, and it's ended in exactly the opposite.

TRUMP: Yes.

MANDELSON: But, Mr. President, can I say that that is due to Secretary Lutnick and Ambassador Greer, who have been absolutely fantastic?

TRUMP: Right.

MANDELSON: But, yesterday, I received a call, a very diplomatic call, that just edged things over the line, and that was from your new ambassador in the United Kingdom.

TRUMP: Who is terrific, by the way.

MANDELSON: Warren Stephens. He's here.

TRUMP: Where is Warren?

LUTNICK: Right here, Mr. President.

TRUMP: Hello, Warren.

WARREN STEPHENS, U.S. AMBASSADOR TO THE UNITED KINGDOM: How are you, sir?

MANDELSON: He's flying to London tomorrow night. He's going to be very popular with the British people.

(LAUGHTER)

MANDELSON: He's going to be a very successful ambassador.

(CROSSTALK)

TRUMP: And he's got plenty of cash.

(LAUGHTER)

TRUMP: He has plenty of cash.

(CROSSTALK)

QUESTION: Are you planning to meet Ursula von der Leyen?

(CROSSTALK)

TRUMP: Go ahead, fast.

QUESTION: Yes. Are you planning to meet Ursula von der Leyen, the president of the European Council, any time soon?

TRUMP: Oh, she's so fantastic, right? She's so fantastic. I hope we're going to meet. Yes. The answer is yes.

I saw her -- actually, I saw her a few days ago. And I think that we will definitely meet, yes. The European Union is a big thing. They want to make a deal very badly. Everybody wants to make a deal. Look, everybody wants to make a deal with the United States, and we're doing that. And we're making -- we're going to make fair deals.

I'm just honored that this was the first one.

Go ahead, please.

QUESTION: The Federal Reserve chairman -- the Federal Reserve chairman, Mr. President, says that you would have to call him for a meeting. Do you plan to meet on -- with him?

TRUMP: I could call him for a meeting.

QUESTION: And what do you think about -- and what do you...

TRUMP: But it's like talking to a wall.

He should -- you should be...

QUESTION: (OFF-MIKE) Bank of England cut.

TRUMP: Well, the Bank of England cut. China cut. Everybody's cutting but him. It's -- I don't know. Let's -- we will see what happens. It's a shame.

I call him too late, you know? Too late Powell, that's his nickname, and it's a shame. It's ridiculous. So -- meeting. He -- he's always too late. But, in this case, it's not going to matter that much, because our country is so strong. We're so powerful in terms of economic strength and what we have done.

And I will tell you what. If we didn't have our first term, you wouldn't be -- we created things in the first term. We cut more regulations than any president in history. We cut the taxes more than anybody in history.

And a very big factor is going to be the tax bill that we have right now, the one big, beautiful bill as we call it, which is all- encompassing, the biggest tax cuts ever in history, bigger than even the first time, and the incentives, even great for the U.K., because it'll make us so strong that we're going to be doing more business with you. It's a very important element, for taxes, for every aspect, regulation cuts.

That bill is -- I believe it's the biggest bill of its kind ever in the history of this country. And Speaker Johnson and Leader Thune have done an incredible job. I mean, I will let you know. We have to get a vote, but we have -- we have a lot of support for that bill.

And if that happens, on top of all of these trade deals that we're doing, this country will hit a point that you better go out and buy stock now. Let me tell you. This country will be like a rocket ship that goes straight up. This is going to be numbers that nobody's ever seen before. That's a very important element of all of this if we get that.

[11:40:00]

If you don't -- and the Democrats are fighting it only because they want to fight. They have Trump derangement syndrome. If it was somebody else, they wouldn't fight. If you had a normal person, if you had some stiff sitting behind you, they'd be fine.

(LAUGHTER)

TRUMP: But they have Trump derangement syndrome. Senator Schumer has become a Palestinian.

(LAUGHTER)

TRUMP: He's welcome. I don't know when they're going to give him the ceremony, whatever the ceremony may be.

(LAUGHTER)

TRUMP: But it's terrible what's happened to the Democrats.

So, very, very important element of everything, of what we're doing, unrelated to today, but related in the sense that we will do -- if that passes, we will do even more business with the U.K. We will have so much. It's the biggest tax cut in history. It's going to make our country zoom. It's going to be incentive, as you know, with the deduction for -- basically for work.

You work, you build, you plant, et cetera, your deduction. It's going to be the biggest -- it's the biggest bill of its kind ever passed, maybe the biggest bill ever passed. That's why we call it the one big, beautiful bill.

(LAUGHTER)

QUESTION: You just announced a new nominee for the U.S. surgeon general who never finished her residency and is not a practicing physician. So can you explain why you picked her to be America's top doctor?

TRUMP: Well, she's -- yes, because Bobby thought she was fantastic. She's highly -- she's a brilliant woman who went through Stanford. And, as I understand it, she basically wanted to do -- she wanted to be an academic, as opposed to a surgeon.

I think she graduated first in her class at Stanford. And Bobby really thought she was great. I don't know her. I listened to the recommendation of Bobby. I met her yesterday and once before. She's a very outstanding person, a great academic, actually. So I think she will be great.

(CROSSTALK)

QUESTION: Mr. President, your nominee for U.S. attorney of D.C., do you have a backup plan if...

(CROSSTALK)

TRUMP: Oh, I do, yes, but he's a terrific person. And he wasn't getting the support from people that I thought. He's done a very good job. Crime is down 25 percent in D.C. during his period of time.

I'm very disappointed in that, but I have so many different things that I'm doing now with the trade. I'm one person. I can only make -- boom, I can only lift that little phone so many times in a day. But we have somebody else that will be great. I just want to say, Ed is unbelievable, and hopefully we can bring him

into, whether it's DOJ or whatever, in some capacity, because really outstanding. It was -- to me, it was disappointing. I will be honest. I have to be straight. I was disappointed. A lot of people were disappointed, but that's the way it works sometimes.

That's the way it works, and he wasn't rejected.

WOLF BLITZER, CNN HOST: All right, we're going to continue to monitor this -- the Q&A with the president of the United States in the Oval Office. He's very pleased with this new trade deal that has just been announced with the United Kingdom

And Keir Starmer, the British prime minister, Pamela, says it was really a fantastic, historic day today for the United Kingdom, as well as for the United States.

I want to bring in our senior White House correspondent, Kristen Holmes, right now.

Kristen, give us a sense of the significance of what we have just heard.

KRISTEN HOLMES, CNN NATIONAL CORRESPONDENT: Yes, Wolf, one thing I want to make very clear, because they both -- both Starmer and Trump made this clear a number of times -- this is not a done deal.

They are still ironing out the details here. In fact, Starmer at one point said it was a platform for the future. We just heard the ambassador for the U.K. saying that it was a launchpad. So, clearly, the ink is not dry yet on this deal, but we did see both sides really praising each other, saying they both got a lot out of this deal.

Some of what they got out of this is the U.K. reducing that non-tariff or non-market barriers that discriminate against American products. That's how Donald Trump said it. So that could include, for example, the United Kingdom's 2 percent tax on digital services to American companies. That would be a big one. We heard both Starmer and Trump talking a lot about the tech industry.

They also said that the U.K. would be fast-tracking American goods and they would give new market access in the United Kingdom to various products like chemicals, machinery and other industrial products. That is what the U.S. said that they are getting out of this deal, the big takeaways.

Now on the other side here, the U.K. said one of the biggest takeaways, which was Starmer's big goal, was to reduce the tariffs on both cars and steel, which this deal will do. Now, it seems as though, in exchange for reducing that tariff and shielding both the cars and steel from those tariffs, they said that a British airline will be buying $10 billion worth of Boeing planes.

So, clearly, here both sides saying they got a lot of what they wanted out of this, but we still haven't seen the final deal just yet.

PAMELA BROWN, CNN HOST: All right, Kristen Holmes, thank you so much. We're going to take a quick break.

And then, after, we're going to speak to the Indian ambassador to the U.S., as these tensions escalate between India and Pakistan. So stick around for that. We will be right back.

(COMMERCIAL BREAK)

[11:49:37]

BLITZER: We have other breaking news we're following here in THE SITUATION ROOM.

Explosions heard in Jammu City and Indian-administered Kashmir. An Indian army spokesperson is telling CNN a complete blackout is now in place, we're told, with loud explosions, bombing, shelling, or missile strikes suspected, a former director general of Jammu and Kashmir police said in a post.

[11:50:00]

Joining us now is India's ambassador to the United States, Vinay Kwatra.

Mr. Ambassador, thank you so much for joining us.

VINAY KWATRA, INDIAN AMBASSADOR TO THE UNITED STATES: Thank you so much for having me.

BLITZER: It looks like the situation, the tensions between these two nuclear-powered countries, India and Pakistan, is escalating. Is that true?

KWATRA: Wolf, first of all, thank you so much for having me onto CNN.

When you talk of tensions and when you talk of escalation, what I would say is that the original escalation or the original breakout of tension happened on 22nd of April, when you had four terrorists backed by Pakistan carried out killing, brutal killings, subhuman, monstrous kind of killings, of 26 civilians.

BLITZER: Indian civilians.

KWATRA: Twenty-five of them Indian nationals, one of them Nepali national.

And the brutality of the killings, they essentially killed them in front of their innocent wives, in front of their innocent children. They gave them head shots. And they did so on the basis of religion. So they killed all non-Muslims who were there in the group. They identified their religion and then they went on, obviously, to kill them.

So what we did day before yesterday was essentially our response to terror, our response to these subhuman...

BLITZER: When you say what you did yesterday, meaning the escalation to the military response.

(CROSSTALK)

KWATRA: As I said, the original escalation was on 22nd of April.

And when that happened, we had clearly said that we are a responsible country. We will have a very measured, calibrated, proportionate, responsible response. And that's what we did day before yesterday. What we did was, we took out the terror factories at nine locations in Pakistan and in Pakistan-occupied Kashmir, took them out where they trained them, they equipped them, they armed them, they organized them.

Those are the facilities which we took out. We were very careful in excluding the military establishment, the socialist structures and economic infrastructure. We were very, very cautious, careful in keeping our targets only to those people and their backers who carried out these dastardly killings on the 22nd.

BLITZER: What can you tell us, Mr. Ambassador, about these explosions that are now being heard in the Indian-administered parts of Kashmir?

KWATRA: Yes.

First of all, I'm sorry, but let me correct you that the entire Jammu and Kashmir is an integral and indelible part of India. And I think the only issue to be resolved there is the return of the Pakistan- occupied Kashmir which is there.

We have been hearing reports of some activity of this kind. We don't have the operational details relating to that. But, again, what these show is that -- what it shows the world, what it shows us, what it shows everybody is that Pakistan has again decided to stand with the terrorists.

Rather than take action against them, they are essentially lending them support. We wouldn't be surprised if they are themselves involved in this. But that's what is the message which they are telling the world, that we are with terrorists. We are not with the rest of the civilized world, the rest of the humanity.

And our belief lies -- and Pakistan's belief lies in perpetrating these proxies of terror, killing, brutal killings of the innocent civilians.

BROWN: And, as you know, Pakistan has denied involvement. We will have the Pakistani ambassador later on this -- today on CNN.

But, just bottom line, how would you describe the situation right now with Pakistan? Of course, India and Pakistan are two nuclear powers. Are you at war right now?

KWATRA: Your -- to your first point about Pakistan's denial, that has always been the first part of Pakistani strategy, denial and obfuscation. You could -- and they have this unique characteristic where they

assume responsibility of their past actions in future, not in the present moment -- 9/11, where was Osama bin Laden found? World Trade Center bombings of '93, the perpetrator of that. Where was the killer of Daniel Pearl found? -- 9/26/11 Mumbai attacks, where American nationals also died, where were those perpetrators found?

And this is not me telling you this. This is the -- a few days ago, the defense minister of Pakistan openly admitted to this on the Sky News network that we have been supporting terrorism for last 30 years.

But they always do that. They will always assume responsibility of their actions in future.

BLITZER: They are today publicly denying the reports that you're suggesting that they deliberately murdered these Indian civilians in front of their families.

[11:55:05]

As I mentioned to you, Wolf, that, on 22nd April -- and there's plenty of evidence to go around it -- four terrorists backed by Pakistan killed, brutally killed 26 innocent civilians. Let me underscore these three points, four terrorists backed by Pakistan killing 26 civilians.

I mean, in no world would you allow such terrorists to be given a free pass. And that is precisely what we did day before yesterday. We carried out very precise, calibrated, measured response to these terrorists, to their factories, to their integrated facilities which they run out of Pakistan and Pakistan-occupied Kashmir.

BLITZER: Is this a war between Paki...

KWATRA: It is nobody's case -- if I could just complete...

(CROSSTALK)

BLITZER: Yes.

KWATRA: It is nobody's case to say that such terrorists should be given a free pass, wherever they are located.

I'm sure we all appreciate that. American public appreciates that. A large number of congressmen, senators we have spoken to appreciate that. The whole world appreciates that, that India should respond and bring accountability for these terrorists and justice for the victims.

This, the whole day before yesterday, our attacks were essentially about bringing accountability to the terrorists and justice for the victims.

BROWN: Are you at war, though, with Pakistan?

KWATRA: Sorry?

BROWN: Are you at war with Pakistan? KWATRA: Look, the template in which we look at it -- I can well

understand the frame in which you are perhaps appreciating it.

The frame and the template in which we look at is the terror template; 22nd April was a most heinous terrorist act. These terrorists, as I said, it's nobody's case to say that these terrorists should be given a free pass. And that's precisely what we did the day before yesterday, held them accountable, brought them to justice.

Now, yesterday morning, I believe, that's per our Defense Ministry, Pakistan tried to engage some military targets on our side. Now, this was Pakistan's way of saying -- saying to the world, look, we stand with the terrorists. We will do what's good for the terrorists, not what's good for the rest of the...

(CROSSTALK)

BROWN: But is India at war with Pakistan? That's the question.

KWATRA: We are at war with the terrorists.

And we will, as I said, bring justice to the victims and hold them accountable.

BLITZER: Is this a part of religious war between Pakistani Muslims and Indian Hindus?

KWATRA: I think it is Indian action against the terrorists, the ones who carried out those killings of the civilians.

Our frame of reference in doing these attacks, in holding them accountable is holding terrorism accountable. That's our frame. It is India and -- terror activities backed by Pakistan which were responsible for killing of the 26 innocent civilians.

BROWN: You say you're at war with the terrorists. At what point will you be satisfied?

KWATRA: Well, as I said, when we did our attacks, measured attacks, proportionate attacks day before yesterday, that was precisely the point we were trying to convey, that these terrorists carried out these brutal killings of 26 civilians.

BROWN: So are you done with the attacks, or do you think they're going to continue?

KWATRA: If I could just complete, so when we did this day before yesterday, our assumption was that we have completed what we set out to do ourselves vis-a-vis the terrorists.

We, from our perspective, had brought a certain finality to it. But it was, of course, subject to whether Pakistan has brought finality to it. Pakistan chose to escalate it further. Now it's duty bound for us to respond to that. So, our original escalation was 22nd April, to which we responded, and there was a certain finality from our side.

BLITZER: These reports that India recently, in the last few days, lost five jets, military jets, is that true?

BROWN: And Indian soldiers as well.

KWATRA: Look, I really would not be in a position to speak to the operational details. I'm sure, in fullness of time, they would all come out. We are, of course, continuing to ascertain the details on the ground.

But, as I said, our foremost objective in this was, hold these lowlifes, subhuman monsters accountable and bring justice to the victims.

BROWN: But Pakistan...

BLITZER: Here's what concerns so many people, that India has a nuclear weapon, Pakistan has a nuclear weapon. How concerned should the world be that this fighting that's going on right now could escalate into a nuclear war?

KWATRA: I think the world should be concerned about the fact that Pakistan's support to terrorism and terrorist activists continues.

I think that's what the world should be concerned about. And I think that's what the world should tell Pakistan, to stop supporting terrorism. I think that's the crux of the question.

BROWN: But do you think it could get to the point of nuclear weapons?

KWATRA: Well, that's for you to ask Pakistan for that.

BROWN: OK, so let me just quickly. Can you confirm Pakistan's claim that it killed dozens of Indian soldiers?

KWATRA: As I said, those operational details, I can't comment to. I mean, Pakistan has -- is indulging in all kinds of misinformation campaign, something that is very difficult to really comment on. But those are operational aspects, which as I said, would come out in fullness of time.

BLITZER: Indian Ambassador to the United States Vinay Kwatra, thank you so much for joining us. We will continue this conversation.

KWATRA: Thank you very much, Wolf.

(CROSSTALK)

BLITZER: Appreciate it very much.

BROWN: Thank you very much.

KWATRA: Thank you.

BLITZER: Thank you very much.

BROWN: Appreciate you coming on.