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The Brief with Jim Sciutto
CNN International: Judge: "Willful Disregard" for Deportation Order; Three Pentagon Appointees Placed on Leave; Automakers respond to U.S. Tariffs; Impact of Tariffs on Chinese Exporters; Arsenal Defeat Madrid; UEFA Champions League. Aired 6-7p ET
Aired April 16, 2025 - 18:00 ET
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(COMMERCIAL BREAK)
JIM SCIUTTO, CNN ANCHOR: Hello, and welcome to our viewers joining us from all over the world. I'm Jim Sciutto in Washington, and you're watching "The
Brief."
Just ahead this hour, U.S. Judge says, quote, "Probable cause exists to hold Trump administration officials in contempt, criminal contempt for
willful disregard of an order on deportation flights last month." The WTO and Federal Reserve warn of the economic damage President Trump's tariffs
could cause, and four teams now remain in the chase for the Champions League who's made it through to the semifinals, we'll tell you.
We do begin with the Trump administration now accused of ignoring or defying federal court orders. Once again, a judge has ruled that probable
cause exists to hold the administration in criminal contempt as a result. Back in mid-March, you may remember, Judge James Boasberg blocked the use
of the 1798 Alien Enemies Act to deport alleged Venezuelan gang members to El Salvador.
Today, he said officials had shown willful disregard for his order to return those flights to the United States. In his 46-page ruling, Judge
Boasberg says he's still considering what the punishment might be. In the meantime, he's given the Justice Department an opportunity to respond. The
White House Communications Director Steven Cheung said on X, quote, "We plan to seek immediate appellate relief. The president is 100 percent
committed to ensuring that terrorists and criminal illegal migrants are no longer a threat to Americans and their communities across the country."
So, legally what happens next? For criminal contempt, there needs to be proof beyond a reasonable doubt. To do this, the judge can request sworn
statements to show officials decided not to turn those planes around, remember they were in the air. If that's unsatisfactory, he can ask for
live witnesses to then testify, and then he could ask the Justice Department to prosecute Trump officials or to appoint an attorney as a
special prosecutor.
James Sample is professor of Law at Hofstra University, and he joins me now. James, thanks so much for joining.
JAMES SAMPLE, PROFESSOR OF LAW, HOFSTRA UNIVERSITY: It's good to be with you, Jim.
SCIUTTO: So, listen -- I mean, let me just -- as I read those various steps here, there are a lot of potential roadblocks, pitfalls, et cetera.
Begin with this, who specifically would be held or could be held in criminal contempt here?
SAMPLE: That is a very, very good question and the answer, I think, is that we genuinely do not know, and I don't think it is yet. I think that is
yet to be determined. I think what would happen is that if we reach the point where the live testimony under oath occurs, if the Department of
Justice and the Trump administration continues to defy and resist, providing even a modicum of information to Judge Boasberg, much less
providing due process to the individuals who are involved. Then I think that the purpose, one of the key purposes of the inquiry, the fact-based
inquiry that Judge Boasberg has essentially today threatened to undertake that you described, would be for him to determine who to hold responsible.
Specifically, the obvious candidates include the attorney general, they include the secretary of state, they would include Kristi Noem of Secretary
of Homeland Security, and as well as the lawyers at the Department of Justice, Drew Ensign and others who have been prosecuting this case from
the standpoint of the deportations. But it's not yet clear who would suffer the consequences, if anyone.
SCIUTTO: Well, the trouble is, right, who would pursue someone suffering the consequences or potentially? Because can you imagine the DOJ
investigating Trump administration officials. DOJ, of course, currently under Trump management or the appointment of a special counsel given the
president's own experience with special counsels going back to the first term. I mean, that -- do those -- is there any -- anything to ensure that
those steps would even take place?
SAMPLE: Well, I don't think there's a chance in the world. I agree with the thrust of your question, Jim, that the Department of Justice would
meaningfully pursue itself in essence for failing to comply with the orders that it's failed to comply with, for failing to comply with the basic
provision of facts.
But criminal contempt provisions exist in the federal courts that include provisions for federal courts when we're talking about willful defiance of
the courts to appoint.
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And it's not even a special counsel in the, sort of, Ken Star mode. This would be special counsel appointed specifically for the purpose of
prosecuting this one particular matter and that individual would be appointed by the court itself.
So, Judge Boasberg, if we get to that juncture, would have the ability to appoint the prosecutor to essentially prosecute the Department of Justice
and/or the Trump administration, which is really at this point to two birds of the same feather.
SCIUTTO: So, let me ask you to look at the future a little bit if I can here, because of course this will be appealed and might very well go all
the way up to the Supreme Court. Given the Supreme Court's quite broad interpretation of executive power here, do you see the courts as backing
this up? Because it -- on the other side here, you have the court's very own power being questioned, not just to this case potentially but of course
the case that we're already dealing with, the one regarding this Maryland father who was sent to El Salvador.
SAMPLE: Sure. Well, there are definitely two parallel proceedings going on. You've got Judge Paula Xinis in Maryland, as you mentioned. She just,
today, set forth an expedited discovery process of two weeks that in -- is in essence what Judge Boasberg is threatening in today's order in the D.C.
case.
The one thing I think that is worth really emphasizing here goes to your question about whether the court, the Supreme Court even, would be
favorably inclined to respect Judge Boasberg's contempt process or Judge Xinis' contempt process.
And I think one of the things that we sometimes forget when we think of -- in our normal left-right conservative liberal frame is that the courts,
even when they disagree -- and the justices, even when they disagree vehemently on questions of ideology and on questions of law, they are in
generally speaking, lock step when it comes to orders to protect the courts themselves as courts.
Which is to say, even in this underlying case where it was Judge Boasberg's TRO that was -- the TRO was lifted and reversed by the Supreme Court. But
even in that reversal, a six-three reversal of the TRO, that all nine justices agreed that the individuals who were summarily deemed, arbitrarily
deemed by the Department of Justice with no process whatsoever when they were put on that -- those planes, the court, all nine of them said, those
individuals are entitled to due process.
And it was Judge Boasberg, remember, who was the judge, who was the target of the impeachment threats that led Chief Justice Roberts to do something
that is very, very rare, especially for Chief Justice Roberts, which was to issue that statement.
All of which comes back to the fundamental point. If you are asking, do you think there will be five or maybe even nine votes to support the judge or
the judges and their authority to conduct their courtrooms according to the rule of law? I think there, you're not talking about a conservative liberal
split. You're talking about judges who will stand up for other judges.
SCIUTTO: We'll see. It's being tested as we speak. James Sample, Hofstra University. Thanks so much.
SAMPLE: Thank you.
SCIUTTO: Well, the World Trade Organization is out with a new warning on the costs of President Trump's trade war. The WTO saying the outlook for
global trade has now, quote, "Deteriorated sharply." The WTO's Director General says, she fears a complete China, U.S. economic and trade
decoupling.
(BEGIN VIDEO CLIP)
NGOZI OKONJO-IWEALA, DIRECTOR-GENERAL, WORLD TRADE ORGANIZATION: If we have this kind of decoupling and we have fragmentation of trading to two
trading blocks, that this could really have a very big impact on the global economy, leading to a drop in real global GDP of up to seven percent in the
long term, this is a very big shock.
(END VIDEOTAPE)
SCIUTTO: The WTO now expects global trade to contract, shrink this year. Back in October, it had forecast a three percent expansion. Fed Chair
Jerome Powell warned again on Wednesday that tariffs will lead to higher prices. And he warned that the financial markets could see more turmoil
ahead.
(BEGIN VIDEOTAPE)
JEROME POWELL, FEDERAL RESERVE CHAIR: I think it's very premature to say exactly what's going on. Clearly there's some de-levering going on among
hedge funds on -- in levered trades and things like that.
It's also -- again, it's the market's processing historically unique developments and with great uncertainty, and I think you'll see -- you'll
probably see continued volatility.
(END VIDEOTAPE)
SCIUTTO: President Trump and his economic team kicked off face-to-face trade talks with Japan today. Although Japan's Prime Minister warned ahead
of the talks that his country is not ready to make major concessions. China says in a due statement, it is open to trade negotiations with the U.S. as
well. But that any such talk should be based on, quote, "Respect", as well as "Consistency and reciprocity."
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China also appointed a new global trade envoy, the ongoing trade war certainly causing particular uncertainties for tech companies. Shares of
the A.I. chip giant NVIDIA tumbled almost seven percent after warning that new U.S. export restrictions will hit its bottom line significantly. That
helped trigger a broader market sell-off in the tech heavy Nasdaq which fell, as you can see there, more than three percent.
Derek Scissors joins me now. He's a senior fellow at the American Enterprise Institute, specializing in China's economy and U.S.-Asian
economic relations. Derek, good to have you.
DEREK SCISSORS, SENIOR FELLOW, AMERICAN ENTERPRISE INSTITUTE: Thanks for inviting me.
SCIUTTO: So, I wonder -- listen I get the background, particularly of China's trade relationship with the U.S. cheating theft of I.P., et cetera.
But I wonder, given that this is in effect a global trade war that's underway right now, who other than the president and his closest advisors
believe that strategy is currently working?
SCISSORS: Probably just them. I mean, I think there is a strategy to confront the Chinese on their behavior. But of course, the president had
Tariff Liberation Day, and then he walked back Tariff Liberation Day, and then he raised tariffs on China, and then he excluded goods on China.
That strategy isn't going to work. It was mentioned in the opening that the Chinese want consistency. So, they're not going to talk if they think the
U.S. is being chaotic. And chaos, of course, affects American markets, affects American firms and so on.
SCIUTTO: Yes.
SCISSORS: So, there's a strategy here, but we're not following one.
SCIUTTO: What are the deals? Do or does anybody have an understanding as to what exactly are the trade deals that Trump is seeking with other
partners, Japan included as he speaks to them today, that he would consider wins? What is he looking for specifically? And by the way, it's, you know,
dozens of deals, as you know, that need to be settled before this two-month date to reinstate those reciprocal tariffs.
SCISSORS: Well, I think with the countries where we run fairly large trade deficits, it's pretty straightforward. The president wants some way to
reduce the trade deficit, so you either buy more goods or you agree to sell us less goods. You accept our tariffs. Maybe we use quotas, something to
fix the trade deficit.
I think with some of those countries and with other countries like the U.K. where we don't run a, you know, sizable trade deficit, there are other
things involved. There's, you know, regulations on U.S. tech firms. There could be defense spending on U.S. military basis of countries host military
basis. So, I think it's -- the trade deficit where the trade deficit is large, and then it's a host of issues in the other negotiations.
SCIUTTO: What about the trade deficits that economically makes sense, right? That we, as a country, have more interest in buying more from them
than they do from us, right? That they're, as you know, there are relationships where you just need more, right? The nature of the
relationship.
SCISSORS: Yes, that's something President Trump just misses. And to be fair to him, a lot of people do. He actually has the old trade union
position that the AFL-CIO has taken for decades. It's not like he invented it. He's the only one who thinks that.
But yes, there are some relationships where we're the much richer country. We're the faster growing country. We have more demand for their products
than they have for ours. You would expect a trade deficit. We haven't seen a lot of acknowledgement of that from the administration. The big chart on
Tariff Liberation Day didn't say anything about, well, this country is different than that country. They treated all trade deficits the same,
which is plainly false.
SCIUTTO: Yes. Well, Derek Scissors, I'm sure we -- we'll be talking about this again sometime. Thanks so much for joining.
And coming up, turmoil at the Pentagon. Once again, multiple DOD appointees have been put on leave now with sources inside the Defense Department are
telling CNN as to why that's happening, that's next.
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SCIUTTO: The Pentagon has placed three appointees on administrative leave following investigations into leaks. However, one defense source called it
a purge, telling CNN, the investigation was related to disagreements with the defense secretary Pete Hegseth, chief of staff.
Joining me now, U.S. National Security Correspondent Natasha Bertrand. So, I wonder, basic question, is this about security breaches or is this about
internal politics, factional fighting?
NATASHA BERTRAND, CNN U.S. NATIONAL SECURITY CORRESPONDENT: It might be a little of both. I mean, our reporting is that these individuals, at least
on its face, they appear to have been caught up in some kind of investigation into unauthorized disclosures. And that big broad
investigation was conducted following that leak to the New York Times about Elon Musk going to the Pentagon for China war plans.
And so, the DOD started doing all of these leak probes to include the use of polygraph tests in a very large scale. And so, it appears that, at least
on its face, DOD is saying, these individuals were caught up in this leak investigation, but they're not providing us any details. They're not saying
what these individuals are accused of leaking of, how long they'll be on leave, or whether this has to do with anything else.
SCIUTTO: OK.
BERTRAND: And so, our reporting also is that these people appear to have gotten sideways with the Pentagon's Chief of Staff, Joe Kasper, another
loyalist to Secretary of Defense Pete Hegseth. But it's worth noting that at least two of these individuals who were escorted out of the building are
long time loyalists and colleagues of Secretary Hegseth, Dan Caldwell and Darren Snick, two of the senior officials, they worked with Hegseth at a
veteran's organization for many years before joining the Pentagon.
So, it is very notable that these individuals have now been placed on administrative leave. Apparently, you know, thrown under the bus for this.
SCIUTTO: So, let me ask you about the other, quite obvious security breach, right? Which was the infamous Signal chat where you had actual war
plans being shared there. Has anyone at DOD assessed this -- the risks or damage from that exposure and has anybody paid a price for that?
BERTRAND: The short answer is no. And actually, one of the individuals who has now been placed on administrative leave was named in that Signal chat
by Secretary Hegseth as the point of contact for him for all things Houthis and Yemen and the war plan. So, that just underscores how high up he was
and how important he was.
But broadly, no. No one at the DOD as of that -- as of now that we know of, has actually been held accountable for the fact that these very classified
plans were shared on the Signal app. But it does appear that at least three people are being held accountable for what they say are unauthorized
disclosure, so.
SCIUTTO: Natasha Bertrand, we're always looking for fairness. We're doing our best. Thanks so much.
Joining me now, Leon Panetta, former U.S. Defense Secretary himself, also a former director of the CIA under President Obama. Sir, always good to have
you on. Thanks so much for joining.
LEON PANETTA, FORMER U.S. DEFENSE SECRETARY, FORMER CIA DIRECTOR, AND FORMER WHITE HOUSE CHIEF OF STAFF: Thank you. Good to be with you.
SCIUTTO: Let me ask you, because you're in the enviable position of having led both the DOD, both the Pentagon and the CIA. When you look at these
firings as they're taking place right now, potential tie to that leak of the Elon Musk beating regarding China inside the Pentagon. What do you see
going on here? Do you see a genuine security risk assessment here or do you see more politics?
PANETTA: I have to tell you, it smells more like politics, but because they should have started an investigation a long time ago on a major
security breach which was discussing these attack plans on an open internet with a journalist on the list. That was a major breach of security.
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And I know the Inspector General is doing an investigation because the Armed Services Committee asked him to do that.
And so, it seems that what we're hearing today relates to the concern about leaks to the press and the -- and they're bothered by obviously having
stories appear that aren't comfortable. So, it just feels like it's more political than based on security concerns.
SCIUTTO: Let's go a little bit more broadly because as you know, Pete Hegseth, the current defense secretary promised when he took the job to
transform the military. Claiming he is going after DEI, refocusing on what he often refers to as a more lethal fighting force. How do you see him
changing the functioning of the U.S. military and the Pentagon? What do you see as his goals and do you see those goals as achievable?
PANETTA: Well, look, I -- I'm a believer that the responsibility of the Secretary of Defense is to maintain the United States as the strongest
military power on the face of the earth. And that means being concerned about our military, being concerned about our men and women in uniform,
being concerned about whether they're being trained effectively, and being concerned about whether they have the weapons they need in order to be able
to counter our adversaries. That's where I think the focus ought to be.
I get the sense that what this Secretary of Defense is looking at is kind of the culture issues that the White House is getting a little wrapped up
in, and he's basically taking those same issues and trying to apply them to the Pentagon. I think Secretary of Defense ought to stay focused on the
primary role of a secretary, which is to keep our country safe.
SCIUTTO: As you know, President Trump has quite publicly left military action on the table for the possibility of retaking the Panama Canal or
even potentially taking Greenland of course, which is a territory of our NATO ally, Denmark, as you know. I wonder, do you see circumstances in this
administration where senior commanders, uniformed military might resign in protests, right?
I mean, in theory an order from the president is lawful, right? I mean, to take military action if he justifies it in some way, I mean, in theory. But
do you see that some of the steps that are being discussed quite publicly by the commander in chief are ones where folks in the military would say, I
can't do this.
PANETTA: I think that the primary focus of the administration ought to be on the primary threats that exist in the world. And all he has to do is
turn to his intelligence people and to those responsible for identifying who those adversaries are. It's Russia, it's China, it's North Korea, it's
Iran, it's terrorism. Those are the primary threats that face this country.
The idea that you would use the military to go after Greenland or go after the Panama Canal or go after Canada is just a diversion. It's a political
diversion because it really doesn't relate to the national security of the United States. And if he issued that kind of order, I think the military
would be very concerned about how to respond to that.
SCIUTTO: To your point. the U.S. intelligence, the Pentagon, state quite publicly that Russia, along with China, are the primary threats to U.S.
national security. And as part and parcel of that, Russia's ongoing invasion of Ukraine. And yet, as you know and have heard, President Trump
uses far harsher language against U.S. allies than he does against Russia and the Russian president.
I spoke with a member -- with the Estonian foreign minister yesterday who said, it didn't affect Putin is taking advantage of that, right, to expand
the war in Ukraine, this window that President Trump has given him. I wonder from your experience in dealing with Russia, do they see the U.S. as
being weak or strong against them under President Trump?
PANETTA: Look the fundamental intelligence on Putin makes very clear that if he thinks America's weak, he will take advantage of it.
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And right now, he basically considers America weak and not responding to basically making him face up to what I think the administration wanted,
which is a 30-day ceasefire. I mean, that's what we wanted from Russia. That's what we got from Ukraine. But Russia continues to attack Ukraine.
The time has come for the President to get tough with Putin because that's the only way we're going to ever see any kind of peace established in
Ukraine.
SCIUTTO: Former Defense Secretary, Former CIA Director, Leon Panetta, pleasure to have you on.
PANETTA: Good to be with you.
SCIUTTO: Well, the president of China, Xi Jinping continued his diplomatic trip in Southeast Asia on Wednesday where he is hoping to show that Beijing
is now a more reliable trade partner than the U.S. In Malaysia, he called on Asian nations to unite in resisting protectionism. The growing fear is
that economic tensions between China and the U.S. will perhaps drive some of those countries closer to China, further away from the U.S., and also
raise the prospect of military, the danger of military conflict.
U.S. Secretary Seth -- U.S. Congressman Seth Moulton is a member of the House Armed Service Committee says, chances of a war with China have now
increased dramatically. And he joins me now. Thanks so much for taking the time.
REP. SETH MOULTON (D-MA): Jim, good to see you.
SCIUTTO: So, tell me first, why do you see the possibility of military action, which was already real between the great powers, China and the
U.S., greater now as this trade war expands?
MOULTON: Well, Xi Jinping sees the United States as weak, and Justice Secretary Panetta just explained why Russia and Putin take advantage of us
when they see us as weak. Xi Jinping is going to do the same thing. Xi Jinping very much wants to take Taiwan. He's tied his personal reputation
and even China's reputation to doing that.
So, people who dismiss this as something that we don't need to worry about, I don't think are being realistic. Jim, I was in Kyiv, in Ukraine, the
capital, just a couple of months before the invasion, and I was struck by how many people, including a lot of Americans on the ground there, thought
that Putin wasn't really going to invade.
SCIUTTO: Yes.
MOULTON: But sometimes autocrats tell you what they're going to do, and that's what Xi Jinping has done in China. So, we should be concerned if our
commander in chief looks weak. And right now, in front of China and in front of Russia, Trump looks weak.
SCIUTTO: Do you agree with what we just heard from Leon Panetta there that, in effect, Trump is signaling to Russia, you know, you're running the
show, right? I mean, Russia has not said yes to the ceasefire, and we're weeks after Ukraine said, yes.
MOULTON: Trump is completely deferring to Russia. He's even echoing the Kremlin talking points. I mean, this is just unheard of in the history of
the United States, that a commander in chief of our military is aiding and abetting the enemy.
SCIUTTO: Yes.
MOULTON: Russia is the enemy. Xi Jinping is the enemy. And Trump is aiding them. And on top of that, you have chaos at the top of this -- of the
Pentagon. They -- you were just discussing about Pete Hegseth. Everyone knows you cannot trust the Secretary of Defense. And it's no surprise that
he doesn't even trust his closest advisors when nobody trusts him. I've heard from troops who are just disgusted with Pete Hegseth's disclosure of
classified information.
So, there is zero trust at the top of the Pentagon. China sees that, Russia sees that, our own Secretary of Defense is himself a national security
risk. This is a dangerous position for the United States of America.
SCIUTTO: Trump says that this trade war makes the U.S. stronger. You see though China trying to move into spaces, right? That the U.S. used to
occupy or dominate in, including with Asian trading partners saying, hey, I'm the more reliable partner here. So, the question is this, both the U.S.
and China will suffer from a trade war but who has the higher threshold for pain here, right? Could it be China, right, that they calculate, we're
going to let this ride because in the long run we win out.
MOULTON: Well, it's not Trump. He doesn't have a high threshold for pain at all. I mean, remember this is a draft dodger who sent someone else in
his place to go to Vietnam when he was asked to serve the country. He is not strong here. He changes his mind every day. He puts out these broad
pronouncements about how he's going to implement tariffs, and then at 24, 36 hours later, he retreats.
Retreating is not showing strength. Changing your mind is not showing strength. Giving in to -- I don't know, his friends who are investors and
say, look, the market's going down, so you got to change your policy. None of that shows strength.
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On the other hand, Xi Jinping is cutting off our supplies to critical minerals that our military depends on. That's dangerous for our national
security.
So, this administration, across the board, whether you're talking about the Secretary of Defense or the President of the United States who's supposed
to be commander in chief of our military, they are national security threats. Not a good place to be in, Jim.
SCIUTTO: Before we go, you have this administration not just giving a free pass so far to Russia on the ceasefire. But also, as you know it, removed
intelligent sharing from Ukraine and it's moving some U.S. forces further back from the border with Ukraine to a key supply point there.
What happens if Trump removes U.S. support for Ukraine? Does Congress have a -- because as you know, there are Republicans who like you, support
Ukraine to this day. Does Congress have the backbone to stop that? Does it have the ability to stop that, do you think? Could you see bipartisan
legislation to try to counter or reign in the president pulling back from supporting Ukraine?
MOULTON: You could absolutely see bipartisan legislation. But Speaker Johnson doesn't have the backbone to just have a vote on that. He's like
the most undemocratic speaker in American history because he won't let us vote. We should be voting on tariffs. We should be voting on all these cuts
that Elon Musk, an unelected billionaire, is making to our government.
But the Republicans in Congress are such cowards they won't allow us to even have votes on these issues because guess what, trump knows that even
some Republicans will vote against him and they're just scared. Trump can't take the heat. Johnson can't take the heat. The Republicans have no
leadership.
And so, Democrats like me are doing everything we can, but at this point I just want to be able to have a vote. That's all I'm asking, Johnson. Give
us a vote on these issues that affect American lives.
SCIUTTO: We'll look out to see if that happens. Seth Moulton, thanks so much for taking the time.
MOULTON: Good to see you, Jim.
SCIUTTO: Coming up just after the break, automakers shift gears to keep tariff disruptions to a minimum. Richard Quest is live at the New York
International Auto Show to see how the industry is responding. All this, you can see him there, that's next.
(COMMERCIAL BREAK)
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SCIUTTO: Welcome back to, "The Brief." I'm Jim Sciutto, and here are more international headlines we're watching today.
Trump administration says it is planning to challenge its latest legal roadblock. A U.S. federal judge has now ruled that probable cause exists to
hold some Trump administration officials in criminal contempt. The judge says, they violated his order from last month by deporting alleged
Venezuelan gang members.
In a landmark ruling, the U.K.'s highest court says the legal definition of a woman excludes transwomen. Britain's Supreme Court unanimously declared
that a woman is legally defined as a biological female. However, the court also said that trans people still have protection against discrimination on
other grounds. The group, For Women Scotland, brought the case and celebrated the ruling outside the court. Trans groups described the
decision as, quote, "Incredibly worrying."
Well, the entirety of Puerto Rico lost power today after an island wide blackout. It is the latest incident in a string of outages to strike the
U.S. territory. Not clear what caused the latest shutdown, but engineers are working to get those lights back on. They say restoring full power
could take days. Dozens of people had to evacuate a train and walk alongside a railway while scores of businesses had to close.
The auto industry is now racing to respond to Donald Trump's trade war. Imported cars already subject to a 25 percent tariff, that's a lot. Now,
companies are bracing for a tariff on auto parts expected to come into effect on May 3rd. Industry leaders are lobbying for a delay. The U.S.
president discussed that idea earlier this week.
(BEGIN VIDEOTAPE)
DONALD TRUMP, U.S. PRESIDENT: I am looking at something to help some of the car companies where they're switching to parts that were made in
Canada, Mexico, and other places, and they need a little bit of time because they're going to make them here, but they need a little bit of
time. So, I'm talking about things like that.
But the European Union has taken terrible advantage. They don't take our food products. They don't take our cars. We take -- we have millions of
their cars, BMW, Volkswagen, Mercedes-Benz, many others, they come in by the millions. They don't take -- there are no Chevrolets in Munich, I can
tell you that.
(END VIDEOTAPE)
SCIUTTO: Well, there has been plenty of talking about terrorists at the New York International Auto Show, that's what we find our Richard Quest.
And Richard, I have to wonder what is the mood there, you know? Not for like the -- you know, the sexiest new cars, but do people see an auto sales
recession on the way?
RICHARD QUEST, CNN BUSINESS EDITOR-AT-LARGE AND ANCHOR, QUEST MEANS BUSINESS: They don't really know, and I think that that is the big
difficulty. Having seen excellent sales in the last month or so because of the prospect of tariffs, essentially that was just front loading the
balance sheet of sales because now the tariffs are coming in.
When I ask various people, they sort of say, look, it could be 30, 60, 90 days before new cars coming in get the tariff because it depends what --
how many you had on the lot or how many had stored at the various port, how prepared you were.
For a company like Kia, which is -- who's just basically over there, they've got some gorgeous new cars on the stand. But the Chief Operating
Officer of Kia, when I spoke to him earlier, he made it clear you've got three situations. You've got the cars made by their U.S. factories, you've
got the cars made in their USMCA, Canada-Mexico factories, and then you've got the cars that are imported from South Korea. It's very difficult.
(BEGIN VIDEOTAPE)
STEVEN CENTER, CHIEF OPERATING OFFICER, KIA AMERICA: When the rules change faster than you can move your business, it's very difficult to comply in
that way. So, as a global automaker, we make products that we sell all over the world and we make them all over the world. So, in the end, we're going
to do the best we can to comply with the rules here and make the money here.
(END VIDEOTAPE)
QUEST: And the real difficulty for Kia and all the others is that you just don't want to take a decision and then find you spent a few hundred million
or a billion only to find the policy changed. Which is why over there, there are loads of car companies, foreign car companies with big signs. Our
cars are made in America, U.S. made since 19 goodness knows when. So, that's the situation, Jim.
SCIUTTO: Let me ask you if I can, just away from the auto show because on the markets, of course we heard from the Fed chairman today, yet one more
warning about the broader economic impact of the tariffs.
[18:40:00]
I mean, this is not -- it's becoming a chorus, right, because you got the investment banks raising their betting on a recession coming. When you take
all of it together, what you're hearing there, what you hear from the Fed chairman, what you hear from the investment banks, what you watch in the
markets. I mean, has there been any real settling of the markets in the midst of this trade war or are they just waiting for more pain?
QUEST: No, the latter, more pain, because not only do we have Jerome Powell today talking about it, we also had the WTO with their trade report,
the World Trade Organization. Now, trade wars, were going about 2.8 to three percent. Now, it's just they're going to be slaughtered because of
these tariffs.
It is the scale and depth and range of these tariffs that's really causing. It's not like a little bit of steel and aluminum, a little bit of this, a
little bit of that. This is so widespread that, essentially, it's a bit frustrating because you know the administration is continuing to say that
the foreign import overseas will pay the tariff. That there won't be any inflation. There might be a bit of transitional pain. When the reality is
it is going to be much worse than most people think.
SCIUTTO: Richard Quest, try to drive out of there with a pre-tariff car. That's my recommendation. Always good to have you on.
QUEST: Will do.
SCIUTTO: Coming up after the break, one of China's business hubs prepares for tariffs. What could that mean for American consumers? Coming up.
(COMMERCIAL BREAK)
SCIUTTO: So, it's not only big-ticket items like cars. President Trump's trade war already affected cheaper items made in China as well. Think
everything from Christmas decorations to hats, even a few mega ones. Chinese manufacturers rely on the U.S., while American consumers rely on
China for less expensive goods. The Trump's tariffs are now pushing U.S. companies to straight up cancel contracts. Can U.S. customers stomach
higher prices? Marc Stewart has this report from Yiwu (ph).
(BEGIN VIDEO CLIP)
MARC STEWART, CNN INTERNATIONAL CORRESPONDENT (voice-over): It's Christmas every day at this factory in Eastern China.
STEWART: And this is all going to the U.S.
[18:45:00]
STEWART (voice-over): But the holiday cheer has soured since the start of President Trump's trade war. Hefty tariffs have hiked the price for these
decorations sold to the U.S. Now, their costs will be so steep, Americans just won't buy them.
STEWART: How much money have you lost because of canceled business?
RAN HONGYAN, BUSINESS OWNER (through translator): About more than 1 million yuan.
STEWART (voice-over): That's about $135,000. From the factory floor to her showroom, Ran Hongyan says she's lost revenue and relationships.
STEWART: How does that make you feel?
HONGYAN (through translator): It makes me feel sad because we have been working together for a long time, but our deals have stopped due to the
tariffs.
STEWART (voice-over): At first, she offered to slash prices for her longtime customers, hoping to suck up some of the costs. Now, the tariffs
are so high, most of her American customers canceled their orders completely.
STEWART: It's stories like this we're hearing from exporters here in Yiwu, one of the largest wholesale markets in the world. It's really ground zero
in this trade war that's tearing apart the world's two largest economies.
So, how long has your family had this business?
LI XINYAO, BUSINESS OWNER: It's about 30 -- more than 30 years. America's always impact the world. Yes. When they start the trade war, all the people
will worry about that.
STEWART: Do you think America is acting badly.
XINYAO: Of course, I think so.
STEWART (voice-over): Last year, vendors here sold around $11 billion worth of these items to the United States. But even before Trump 2.0, China
saw this trade war coming. To beat the fear, exporters are already diversifying. Right now, half of Nie Ziqin business is with the U.S. She
tells me she's not worried.
NIE ZIQIN, WHOLESALE VENDOR (through translator): My next step is to transfer my U.S. sales route to the E.U. Last year we also began designing
products we can sell to the Chinese domestic market.
STEWART (voice-over): But it's a two-way street. American consumers rely on places like this for the things they want at the price they want to pay,
including something that has become an unmistakable symbol.
STEWART: Look what we found in the middle of this market, Donald Trump's trademark hat made in China.
STEWART (voice-over): American shoppers have long been hooked on cheap Chinese products. Giving them up might not be so easy. Marc Stewart, CNN in
Yiwu, Eastern China.
(END VIDEOTAPE)
SCIUTTO: Folks, you're going to feel the effects. Well, another team advances to the UEFA Champions League semifinals. Highlights from the
thrilling match just ahead.
(COMMERCIAL BREAK)
[18:50:00]
SCIUTTO: ?In sports now for the third time in club history, Arsenal will advance to the UEFA Champions League football semifinals. The team pulled
off a stunning victory tonight against Real Madrid. CNN's Don Riddell following all the action. Wow, that's a big one.
DON RIDDELL, CNN WORLD SPORT ANCHOR AND CORRESPONDENT: Yes, no kidding, Jim. Champions League finals are now set. We've had all the quarterfinal
matches played this week. And as you say, the holders, Real Madrid, emphatically dumped out by a brilliant Arsenal team. The gunners were
already three and up (ph) after the first leg. They could have been even further ahead here at the Bernabeu Stadium, but that was a poor penalty
from Bukayo Saka. Easily saved by Thibaut Courtois.
But Saka didn't let it get him down. He made amends in the second half, putting Arsenal one A on ahead on the night and four ahead on aggregate.
Real Madrid other comeback Kings though, and when they quickly answered back through Vinicius Junior, it seemed as though they might be able to
turn it around. But Arsenal kept them quiet, holding on for an emphatic 5-1 aggregate win because Gabriel Martinelli put some icing on the cake there
with another goal in injury time. So, Arsenal are back in the semis for the first time in 16 years. They'll play Paris Saint-Germain next.
Meanwhile, in Milan -- into Milan looking to protect a slender first leg lead against Bayern Munich and Bayern had it all to play for the final this
season is at their own Allianz Arena. And Harry Kane drew first blood leveling the tie-on aggregate early in the second half. But Inter regained
the initiative shortly afterwards. It allowed Lautaro Martinez leveling the scores on the night, and then just three minutes after that, they were
ahead on the night. Benjamin Pavard had making it 2-1, 4-2 on aggregate.
So, Bayern's hope is now fading fast, but they at least scored another to keep it interesting. Eric Dier, a looping header in over the goalie head
across the goal. Too little, too late though, into holding on for a 4-3 aggregate win. They will play Barcelona next.
His confirmation of the semifinals Inter Milan are on course for a treble right now, they're top of (INAUDIBLE). They're still going in the Italian
Cup. Arsenal back into the semis for the first time since 2009. By the way, they beat Paris Saint-Germain in the group stage of the competition this
season, but PSG have since beaten two English teams in the knockout games.
Now, the semifinals will kick off in two weeks' time in what I think will be some more exciting football, Jim.
SCIUTTO: Must watch football. Don Riddell, thanks so much.
Now, to the 2028 Summer Olympics, coming of course to Los Angeles. The L.A. 28 CEO says, since the city is the epicenter of sports, culture and
entertainment, every venue selected for the games will provide athletes and fans the best possible experience, the famous Hollywood treatment. The
organizing committee announced an updated venue list on Tuesday. Artistic gymnastics and boxing finals will be held at the Crypto.com Arena, the home
of the NBA Lakers and L.A. Kings.
Baseball's Olympic return after eight years will be held at the iconic Dodgers Stadium. While the Universal Studios lot will host the squash
competition. Triathlon, marathon, road cycling routes will all happen around L.A.'s famous Venice Beach.
President Trump's ongoing trade war with Canada has had one beneficial effect. It's led to a boost in the popularity of Captain Canuck. Canada's
very own comic book superhero. He burst onto the scene decades ago, but his fight for truth, justice, and the Canadian way, perhaps even more relevant
today. Paula Newton reports.
(BEGIN VIDEOTAPE)
UNIDENTIFIED MALE: Happy Canada Day, folks.
UNIDENTIFIED FEMALE: OK, Canuck, get moving. There's a holiday crowd out there and we have less than three minutes.
PAULA NEWTON, CNN INTERNATIONAL CORRESPONDENT (voice-over): Canada's comic book superhero Captain Canuck is back, and this time he is taking on U.S.
President Donald Trump. In this 50th anniversary issue, Captain Canuck fights to protect Canada's independence from the U.S. Canucks co-creator,
Richard Comely says he wanted to bring the maple leaf covered hero back after Trump said he wanted Canada to become the 51st U.S. state and started
his trade war with allied countries.
RICHARD COMELY, CO-CREATOR, CAPTAIN CANUCK: All of a sudden, Trump gets into office and he starts talking about annexation and tariffs, and yes,
all of a sudden Canadians are looking to Captain Canuck as a symbol. And it's basically, to them, Captain Canuck symbolizes independence. We have --
no, thank you. We have our own independence -- we have our own symbols.
NEWTON (voice-over): Since 1975, Captain Canuck has been a symbol of Canadian strength. The storylines about fighting off foreign powers and
groups who tried to take over Canada never.
COMELY: Never, never in any of those stories was it America that was going to be taking over Canada.
NEWTON (voice-over): Captain Canuck has been popular in Canada for years with a countless number of comic books, spinoffs, and even a web series.
Comely says he has received lots of new interest in the characters since political tensions began to rise between the U.S. and Canada.
[18:55:00]
COMELY: So, in a sense, we have Mr. Trump to thank for a bit of resurgence.
NEWTON (voice-over): Paula Newton, CNN, Ottawa.
(END VIDEOTAPE)
SCIUTTO: A new superhero villain. Well, in today's good brief, take a look at a mysteriously thing -- mysterious thing lurking deep in the ocean. This
is the first confirmed footage of the elusive colossal squid in its natural environment, this in the South Atlantic Ocean, way down.
The video captured using a remotely operated vehicle at a depth of nearly two kilometers, more than a mile. The colossal squid lives up to its name.
While this one is just a juvenile, the adults grow to seven meters long, 500 kilograms. A fun fact, the Schmidt Ocean Institute livestreams its deep
dives on its YouTube channel, so you can go squid spotting there as well.
Thanks so much for your company today. I'm Jim Sciutto in Washington. You've been watching "The Brief." Please do stay with CNN.
(COMMERCIAL BREAK)
[19:00:00]
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