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The Situation Room

Trump Says He's Ending All Trade Negotiations With Canada; Soon, New York Attorney General Letitia James' First Court Appearance; States Warn of SNAP Benefit Delays Amid Shutdown. Aired 10-10:30a ET

Aired October 24, 2025 - 10:00   ET

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

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PAMELA BROWN, CNN ANCHOR: Happening now, breaking news, Letitia James in court. Next hour the New York attorney general will be arraigned and she's making a new request to drop her case.

Plus, mafia gambling investigation, just how widespread is this illegal betting scandal.

WOLF BLITZER, CNN ANCHOR: And terminating trade talks, President Trump is pulling the plug on trade negotiations with Canada over this ad.

(BEGIN VIDEO CLIP)

RONALD REAGAN, FORMER U.S. PRESIDENT: but over the long run, such trade barriers hurt every American worker and consumer.

(END VIDEO CLIP)

BLITZER: Ronald Reagan is now in the middle of a trade war, nearly 40 years after that speech.

And later, demolish new satellite images showing what used to be the East Wing of the White House.

Welcome to our viewers here in the United States and around the world. I'm Wolf Blitzer with Pamela Brown, she's back, and you're in The Situation Room.

And we begin with the breaking news, cutting off Canada. President Trump is now posting this on social media, quote, all trade negotiations with Canada are hereby terminated, close quote. So, what prompted this? An ad by the Ontario government, and that includes audio from an important speech President Ronald Reagan made nearly 40 years ago about tariffs. Listen to this.

(BEGIN VIDEO CLIP)

REAGAN: When someone says, let's impose tariffs on foreign imports, it looks like they're doing the patriotic thing by protecting American products and jobs. And sometimes for a short while, it works, but only for a short time. But over the long run, such trade barriers hurt every American worker and consumer.

High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. Then the worst happens, markets shrink and collapse, businesses and industry shut down and millions of people lose their jobs.

(END VIDEO CLIP)

BLITZER: The Ronald Reagan Foundation says the ad misrepresents what the 40th president of the United States said back in 1987 in a radio address without specifying what exactly it thinks what was misrepresented.

Here's part of his original 1987 speech. Listen to this.

(BEGIN VIDEOTAPE)

REAGAN: You see, at first when someone says, let's impose tariffs on foreign imports, it looks like they're doing the patriotic thing by protecting American products and jobs, and sometimes for a short while it works, but only for a short time. What eventually occurs is, first, homegrown industries start relying on government protection in the form of high tariffs. They stop competing and stop making the innovative management and technological changes they need to succeed in world markets.

And then while all this is going on, something even worse occurs. High tariffs inevitably lead to retaliation by foreign countries and the triggering of fierce trade wars. The result is more and more tariffs, higher and higher trade barriers, and less and less competition. So, soon, because of the prices made artificially high by tariffs that subsidize inefficiency in poor management, people stop buying. Then the worst happens. Markets shrink and collapse. Businesses and industries shut down and millions of people lose their jobs.

The memory of all this occurring back in the 30s made me determined when I came to Washington to spare the American people the protectionist legislation that destroys prosperity.

(END VIDEOTAPE)

BLITZER: That important speech came after President Reagan put higher tariffs on some Japanese products, but he made it clear at the time that he supported free and fair trade. The Canadian prime minister just reacted to that, and we'll have that coming up in just a few moments.

CNN's Alayna Treene is over at the White House for us, CNN's Paula Newton is in Ottawa.

Alayna, what is President Trump now saying about all of this?

ALAYNA TREENE, CNN WHITE HOUSE REPORTER: Well, Wolf, he is really threatening to once again upend the economic relationship between the United States and its second biggest trading partner. The president claimed in a series of posts, the first one last night, and then a series more this morning, that, essentially, this ad was a fraud and that it was placed to interfere with the U.S. Supreme Court, which is currently considering legal challenges to several of his different tariffs.

[10:05:01]

Now I'm going to read for you the post, one of his most recent ones from this morning, he wrote, quote, Canada cheated and got caught. Canada has long cheated on tariffs charging our farmers as much as 400 percent. Now, they and other countries can't take advantage of the U.S. any longer. Thank you to the Ronald Reagan Foundation for exposing this fraud.

Now, to be clear, it's not very clear what is misrepresented. I will read for you some of this statement from the Ronald Reagan Foundation, because I think that's important as well. But this was edited, not fake as the president is claiming.

So, the Reagan Foundation statement reads, quote, this ad misrepresents the presidential radio address, and the government on Ontario did not seek nor receive permission to use and edit these remarks. The Ronald Reagan Presidential Foundation and Institute is reviewing its legal options in this matter.

Now, a couple of quick things I want to point out here, Wolf. One is that it is unclear, you know, exactly what -- how this was misrepresented. What is clear is that when Reagan made this address, he was at Camp David actually waiting to welcome the Japanese to have conversations on this. And it is clear that that was an ad. The speech that he gave then was pretty much a full-throated defense of free and fair trade.

But it does come, of course, as we know that the United States and Canada have had -- you know, their relationships have broken down ever since the president entered his second term. They got better once Carney was in office and Justin Trudeau had resigned, but it's unclear where this stands now. Both Carney and Trump are going to be in Asia in the next few days, attending the ASEAN and APEC conferences. So, there is a chance they could meet. Stay tuned to see how that goes.

BROWN: All right. I'm going to bring you in, Paula, to the Canadian prime minister who just spoke about President Trump's trade termination. What did he say?

PAULA NEWTON, CNN CORRESPONDENT: Well, he basically had a sobering message for Canadians, but also one for the United States saying, look, we stand prepared to continue these talks at any moment. He also said that, look, stating the obvious, we cannot control what the United States does. We cannot control what the American president does.

I mean, look, it is clear, Pamela, that with this ad, which, again, was from the premier of Ontario, not the government of Canada, that this really touched a nerve for conservatives in so many corners of the United States and beyond. Ronald Reagan is an absolute icon when it comes to conservative matters, and he was unequivocal about free trade. In fact, in a speech here in Ottawa, he just basically said -- reiterated that, saying that Canada and the U.S. were setting an example for the entire world in embarking on free trade. What the president has taken issue with is the fact that it was edited.

Now, how does this move things forward? Not in a good way. I know we just had that inflation report at 3 percent. This will not come as good news to American consumers. The president does believe this is the best thing for the American economy, but at the same time, it will hurt American consumers in the prices and inflation going up on some key things, including steel, aluminum, but other products coming in from Canada.

(BEGIN VIDEOTAPE)

MARK CARNEY, CANADIAN PRIME MINISTER: look for months we have stressed the importance of distinguishing things we can control and things we can't control. We can't control the trade policy of the United States. We recognize that that policy has fundamentally changed from the policy in the 1980s, 1990s, 2000s. And it's a situation where the United States has tariffs against every one of their trading partners to different degrees.

And it's in that context that our officials, my colleagues, have been working with their American colleagues on detailed, constructive negotiations, discussions on specific transactions, specific sectors, steel, aluminum and energy. And a lot of progress has been made. And we stand ready to pick up on that progress and build on that progress when the Americans are ready to have those discussions because it will be for the benefit of workers in the United States, workers in Canada, and families in both of our countries now.

(END VIDEOTAPE)

NEWTON: Now, what he's talking about there is a deal that they were supposed to sign in Asia. At this hour, both leaders are going to that summit in Asia. We'll see if Mark Carney does manage to pick up talks there with the president. But right now, he can't even raise him on the phone, not even to talk about the World Series that starts tonight. So, we will continue to monitor this over the coming hours.

BROWN: All right. Paula Newton, Alayna train, thanks so much.

BLITZER: Important development indeed.

And still ahead, the FBI links current and former NBA players to the mafia with allegations that sound like something out of a Hollywood movie. So, how do mobsters get connected to these big names? We'll ask an expert.

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BROWN: And food aid benefits are at risk for millions of Americans. We're going to speak to a mother who depends on that help.

You're in The Situation Room.

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BROWN: Breaking news, New York's Democratic Attorney General Letitia James is about to make her first appearance in federal court in Norfolk, Virginia. James is expected to come face-to-face with Lindsey Halligan. She is President Trump's former personal lawyer whom he picked to lead a key U.S. attorney's office that is now prosecuting James. Halligan is also prosecuting the case against another Trump critic, former FBI Director James Comey. Comey was indicted on two felony charges of bank fraud and making false statements to a financial institution, Letitia James was.

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She's accused of falsely describing a Norfolk property as a second home, but used it as an investment property. She denies any wrongdoing.

I want to go straight to CNN crime and justice correspondent to tell us what we expect this morning and also how unusual it is that Lindsey Halligan, the U.S. attorney herself, is driving hours away to be there in person.

KATELYN POLANTZ, CNN SENIOR CRIME AND JUSTICE CORRESPONDENT: Yes, Pam. It's less than a month, and Lindsey Halligan is expected to be in court for the second time, carrying forward a case that we knew Donald Trump wanted.

Now, Lindsey Halligan is the prosecutor here, the top prosecutor. This case is about Letitia James, the New York attorney general, and what she did when she was applying and securing loans or a loan to buy a property in Norfolk, Virginia.

What she's accused of doing in this case is essentially saying that it was her second home, but then renting it out and getting a slightly better interest rate on that loan, benefiting herself only a couple thousand dollars over the life of the loan.

Letitia James is very likely to hear those charges in court today and then be able to enter her pleading of not guilty, but then that's when her team comes in. Her defense lawyer, Abbe Lowell, very likely to make this about Lindsey Halligan, that prosecutor who had been put in court by Donald Trump personally took this case through a grand jury in Alexandria, not Norfolk, where it had been investigated.

And now Abbe Lowell, Letitia James's lawyer, is going to be arguing that Lindsey Halligan doesn't have the authority to prosecute this case, that it should be dismissed on that side of things, and that also Lindsey Halligan has behaved improperly somehow and should be blocked from talking to reporters in the future because she had been on a text message chat with a reporter previously.

That all is not going to get argued today. This might be a very short proceeding, but it is the preview today of what's to come in this and how much we're going to be hearing from the defense about Lindsey Halligan and not Letitia James before there's a trial.

BROWN: All right. Katelyn Polantz, thanks so much. Wolf?

BLITZER: We'll hear how this hearing goes and that's coming up.

Also coming up, millions of Americans are at risk right now of losing access to healthy food if the federal government shutdown isn't resolved soon. We'll speak to someone who could be directly impacted. You'll want to see this. That's next.

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BROWN: Happening now, the toll of the government shutdown is getting very real for hundreds of thousands of people. Federal workers are now missing their first full paychecks today and money that helps low income people buy food is about to run out. About 42 million Americans rely on the Supplemental Nutrition Assistance Program, called SNAP to feed their families, and the vast majority have a monthly income at or below the poverty level. Officials in Georgia, say, nearly 1.5 million people in the state get government help to put food on the table.

So I want to bring in Najee Kinard, who is one of those people. Najee, thank you so much for coming on the show. Tell us a little bit about your situation. You're a mom. What would it mean for you and your family if you don't get that money in November?

NAJEE KINARD, MOTHER WHO GETS SNAP BENEFITS: Well, if the benefits get cut off November, it will lead me to have to make very hard decisions and choices that I need to make with the current economy, how it's definitely affecting the job that I do. I'm a good worker freelancer. To have those benefits cut off can be an issue for me to get healthy food for me and my daughter. It can result to use fast food, things of that nature, and to really have to sacrifice either food, your healthcare, or even if you're going to have a roof over your table as well. So, without those benefits, it can definitely be a tremendous harm to families like myself, individuals.

BROWN: And we've seen these long lines of federal workers standing outside of food banks waiting for assistance. Is that something you're considering doing if you need to?

KINARD: Definitely, for sure, if I need the help. That's my first priority to make sure me and my daughter are taken care of, of going to different food banks or pantries within my local community. Also, I want to give back as well, because even though I am going through this difficult time, I want to help others as well by working with different organizations, such as Urban Indigo, who helps families during this particular time.

And I want to give people a voice with my organization, PAM, Political Advocacy Matters, so we focus on the partner of the local elections because in order the quality of life they need to have, we need to get directly involved. That can also help aid people to advocate for themselves to get the help that they need during this difficult time. BROWN: You had mentioned just the cost of everything right now. The cost of living got even more expensive for Americans last month with prices rising at their fastest pace and more than a year, inflation is now back above 3 percent. How is that impacting you? Are you feeling that more acutely as the shutdown drags on?

KINARD: Very so much so. With a high cost of living, it's definitely putting a strain on my finances. Sometimes I have to go without, but if I need the help, I would definitely go receive it or go look for it.

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But it is definitely caused a little bit of strength and I know other families and individuals could feel that too during this time.

BROWN: And you had mentioned healthcare earlier in the conversation. That's a major sticking point to reopening the government. You rely on ACA subsidies. Your daughter, I believe, is on Medicaid. What is your fear here if Congress can't find a solution to the healthcare problem? I mean, you're dealing with that on top of your concern about not getting those SNAP benefits.

KINARD: It will make us people like myself and other individuals have to make that hard choice. Are we going to put food on the table or have proper healthcare? My daughter, she had to get a replacement of her glasses and her premium was $20, but it went up to $50 because of the pending current changes. And, luckily, I did have the flex (ph) in order to acquire glasses, but what happened if I didn't? And other families and individuals will face that, that they may have to sacrifice putting food at a table for their healthcare or vice versa, and it shouldn't have to be that way.

BROWN: When you hear politicians in Washington on both sides, right, of the aisle fighting and digging in, how does that make you feel as an American and what would you say to them?

KINARD: As an American, it really makes me upset. Us, as the American people, we're really taking the actual hit of effects of their choices. And if we don't receive relief soon, it can put people in desperate situations to make mistakes that they cannot come back from, and that's not okay. So, you guys should both to come to whatever consensus that needs to be done in order to put the American people first.

BROWN: Najee Kinard, thank you so much and best of luck to you and your family.

KINARD: Thank you so much.

BROWN: Wolf?

BLITZER: You know, it's just so painful to hear those personal stories how this government shutdown, which goes on and on and on, can affect real people out there and their kids. BROWN: Yes. And that's why I think on this show we want to highlight people like Najee who are facing the very real consequences of what's happening here in Washington.

BLITZER: And that government shutdown and move on.

BROWN: Her message there at the end was very powerful.

BLITZER: Very powerful indeed. Thank you for doing that.

And just ahead, X-ray poker tables, rigged card shufflers, even glasses and contacts that can see through playing cards. We're going to speak to the NYPD's top detective about the truly extraordinary allegations involving pro athletes and the mafia.

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