home. it is on netflix. the streamer announced the upcoming new season will feature some changes, but also the return of some fan favorite segments. rerun episodes of sesame street will still continue to appear on pbs, and our sports lead, the chicago white sox, will honor pope leo the 14th with a visual tribute where the pope sat during the 2005 world series. the art will commemorate the pope's chicago roots and the unifying power of baseball. you'll recall a divide between white sox and cubs fan over who could claim the new pope. well, his brother settled that debate. it's the sox. if you ever miss an episode of the lede, you can listen to the show once you get your podcasts. erin burnett outfront starts now. i'll see you tomorrow. >> outfront next. >> the ceo. >> of america's biggest. >> bank with dire warnings tonight. >> about trump's. >> trade war. >> and he's not. >> alone as.

>> another american. >> car company tonight says their prices. >> are going up. plus, new questions about biden's cancer diagnosis. how could it. >> not have. >> been detected earlier? the top prostate cancer doctor. >> at the world's. >> leading cancer hospital. >> weighs in. >> he's here tonight out front. and kim. jong un's. >> viral mistake. north korea's decision to let. >> social media. >> influencers into the hermit. kingdom is quickly backfiring. we're going to show you the video. >> let's go out front. >> and good evening. i'm erin. >> burnett. >> outfront tonight sounding the alarm. the ceo of america's largest. bank warning of extraordinary complacency, saying that trump's tariffs right now are extreme. so here he is, jpmorgan chase ceo jamie dimon. >> even these low levels, you know, they stay where they are today. that's pretty extreme. tariffs. my own view is you know where people feel pretty good because you haven't seen an effective tariffs. the market came down 10%. it's back up 10%. i think th's an extraordinary amount of complacency. >> an extraordinary amount of

complacency. and diamond is really pointing out a simple fact, which is that tariffs of 30% on china, 10% on the rest of the world, on top of whatever was existing already, is massive. it is extreme. and right now the stock market is trading literally as if none of these tariffs exist. back to the way it traded before anything was even announced. but the reality of it is, of course, is prices are going up. and some items are not being restocked. you know, within the past hour, we learned that imports into america's largest port dropped 30% in the first week of may alone. and the port of los angeles says that the drop for all of may they expect will be a massive 25%. just put that another way, maybe it hits home more strongly. that is a quarter of all imports into the largest port in america. and for diamond and other leaders in the american economy, the problem is even bigger. >> we have huge deficits. >> we have. >> what i consider. >> complacent, central, almost complacent. >> as central banks think they're omnipotent and you all think they can manage through all this. i don't think they manage all that.

>> and as i said, diamond is not alone. one of his top rivals, citigroup ceo jane fraser, said very simply something deeper is going on. billionaire investor ray dalio added to that warning the risk to u.s. treasuries is even greater than the warning from moody's, which of course, on friday night, you may remember, slashed america's last remaining perfect credit rating. now, trump tells ceos when he meets with them, and i've heard this from several of them that he believes tariffs are going to solve america's debt problem and enable him to cut taxes, that all this money is going to pay for that from the tariffs, even as they sit there and try to explain that tariffs are cutting demand for products because tariffs increase prices. so the complacency diamond refers to is real. or as one ceo told me today, it's a slow burn on tariffs until it isn't. that's when everyone experiences it. and then there is something even deeper than trump's tariffs. so just take a look at the bond market today. the yield or the basically the interest rate as we experience on u.s. ten and 30 year treasuries, which typically goes down in times of turmoil because when people are afraid, they buy the safest thing they think they can buy, that's u.s. debt. the

more you buy, the less interest the u.s. has to pay on that debt. but right now, those interest rates are going up. the 30 year at one point traded above five percentage points. so 5.5% on a 30 year, the ten year top 4.5% during the day. and the debt that americans pay on mortgages, on car loans, on credit cards, all of that is pegged off of those ten and 30 year rates. so the rising interest rates there does trickle down to all of us. and team trump is now blaming biden for america's debt problem. and the moody's downgrade of u.s. debt. >> we didn't get here in the past 100 days. it's the biden administration and the spending that we have seen over the past four years. >> now. scott bessent is a really smart man, and he knows that is not true. fiscal mismanagement and spending money that america does not have. spending it like drunken sailors is, well, that's a bipartisan problem. but it really, if you're going to look at the four years of biden, is much more of a trump problem. in fact, trump is the biggest driver of america's spending problem. when you look at presidential four

year terms, trump added $8.4 trillion to the debt in his first four years. that is nearly double what biden added, and scott bessent is well aware of that. 4.7 trillion for biden. again, drunken sailors may all be bad actors, but blaming this on biden is wrong, and it is important to state the facts because trump is right now trying to add more debt, pushing republicans to pass what would add more to the national debt? >> the one big beautiful bill, as we call it. but we're talking about the great, big, beautiful bill. i said, why don't we just call it the great big beautiful bill? our big, beautiful bill, as i call it, our big beautiful bill. >> well, the big the bill is big. as for beautiful, it could add between 3 and $5 trillion to the u.s. debt. according to the estimates. so the debt is a problem. that would be another massive increase. and when it comes to trump's trade war, americans will soon feel the impact coming from every direction. so as rates go up, you now see the impact of prices and tariffs. just today, subaru and america announcing it's about to raise the price on several of its models, a hike that could range between 700 and

$50 per vehicle to more than 2000 per vehicle. trump will soon be unable to strongarm or threaten companies from telling consumers why prices are going up. if you if you start having them across the board like that. so far, he's publicly berated walmart after the nation's largest retailer announced it would be forced to raise some prices. trump posted on his social media website the tariffs, posting that to walmart. and after a report that amazon was going to show the price of an item and then break out the tariff so that consumers could see why prices are going up and by how much. the white house responded with this. >> this is a hostile and political act by amazon. >> and then trump got on the phone. he called amazon founder jeff bezos. and, well, bezos caved. amazon caved. for now, no longer any transparency about what trump's tariffs are costing their customers. maybe that's some of the reason for the complacency, the delayed reaction for consumers and the markets. jeff zeleny is outfront live outside the white house,

beginning our coverage tonight. so, jeff, the economic situation as it is, prices going up, a big drop of imports coming in, of products coming in at the same time that there's real warning signs in the u.s. treasury market. does trump accept the reality of this. >> aaron. that is the central question. he certainly does not talk about the reality as much. but i think we saw a real raw sense of his view of this over the weekend in his response to walmart et, the tariffs. we have heard all along that other countries were paying the tariffs. now he's instructing walmart to eat the tariffs. so that really gets to the the heart of his anger here. but look we are learning that the president is going to capitol hill tomorrow morning very early actually in the 8:00 hour to meet with house republicans to strong arm some of them into supporting what he is called, as you said, that big, beautiful bill. but that big, beautiful bill is not together. it is very controversial. moderates, hardliners have not yet come together on how they will sort

of solve this. now, we have seen time and time again this year, the white house is able to push together and strong arm enough republicans to support the bill. but that's only half the the equation. the senate also has to support it. and they are not going to support this. so the reason this matters for the the economy writ large is if republicans are not able to pass this bill, extend the tax cuts, that is going to send another signal to the markets and elsewhere that they simply do not have the ability to legislate or govern. but as for lower prices, as for inflation, again, this is why the president was elected. it's the fundamental issue, and it's something he talks about very rarely. even as he's calling vladimir putin and others. the economy is hanging over this white house. they know it is. but first and foremost, it's the legislation that they're trying to get. but that will not guarantee, of course, improvements in the economy. erin. >> all right. jeff zeleny, thank you very much. and outfront now, torsten slok, partner and chief

economist at apollo. torsten, i know you have been been been doing the analysis on this and extensive analysis of the housing market and the implications here. when jamie dimon warns of complacency on tariffs, he's basically saying to the market, maybe you guys haven't seen or realized what's really about to happen, but you're not looking into the future. and this this is a problem, right? he's also warning of a debt crisis. and you hear jane frazier from citigroup. you hear ray dalio. >> yeah i think the challenge. >> here is that. >> tariffs of course when they were. >> implemented implies that someone. >> needs. >> to pay the tariff when a container. >> arrives in los angeles. >> and that cost. >> given the tariffs are. >> so elevated in. >> particular on china but also of course on 90 other countries is going to be paid by someone. >> and the fear in. >> the market at the moment. >> is very little. >> that this is coming. but i. >> think if you do begin. >> to quantify what are the implications, you do get some fairly significant numbers. for example, the yield budget lab is quantifying that the impact on gdp as a result of this level of tariffs we have at the moment is going to drag gdp down by 0.7%. so not a recession, but a slowdown in economic growth and therefore also a hit to earnings

over the coming quarters. >> and you see it at regular. you can think of big ticket items that people need to buy. right. whether i mean, people don't have to buy a car, maybe you can delay that or you could buy a used car. prices trickle down. people need to buy car seats. these things are big ticket items that are real. price increases make a huge difference. the subaru ones. i said 700 to up to 2000. and then when trump says to walmart, walmart should stop trying to blame tariffs as the reason for raising prices throughout the chain. that's trumump's post. i mean, that that's a ridiculous thing to say. >> well. >> so one. >> way of looking at it is that someone has to pay the bill for the container that's coming in from china or from the rest of the world. and the question here is, is it companies that are going to pass it on 100% to consumers? therefore, consumer prices will go up and therefore demand meaning what companies will be selling will be going down. that would be a negative hit to earnings for corporate america. or it could also be corporate america could say we completely. >> eat the. >> tariffs ourselves and therefore we do not pass anything onto consumers. but that would certainly also be a negative hit to earnings. so either way, no matter if

companies pass on 100% or 50% or zero, someone has to pay the bill. and either it goes through earnings in companies going down directly. if they pass on nothing or if they pass on 100%, it will go through consumers simply buying less, buying fewer cars, buying fewer washers, dryers, durable goods and of course, in walmart's case, buying things that they have on their shelf, which is now more expensive. >> right? right. and the point is, even if you pass, if you were to pass it along in full on an item, any given item, who knows what tariffs were underlying on it or whatever, let's just be simple 30% increase in your suit. but it could be more than that. or even if you're still paying 15% more, i mean, that's going to affect people's buying decisions. >> and that absolutely is why this is creating this unfortunate cocktail of not only will earnings be lower for corporate america. so that's why jamie dimon is right to point out that the e in the p e ratio is going to take a hit. but we will also see that prices are going up. so not only are earnings going down, but inflation is also going up. and that's the definition of stagflation. that is a definition where you both have gdp growth slowing meaning earnings and the economy is slowing down. and you're at the

same time also have prices going up on the cpi index, meaning consumer prices. >> and so that's the kind of the immediate thing that we're staring at. and that's frightening for. >> that will come over the next several quarters for sure. >> and so that is frightening. and then you have the, the, the macro problem of, of too much debt and too much borrowing, which trump thinks tariffs are going to help alleviate. but you had done some analysis, torsten, that i just want to put up here because we were talking about why people interest rates on treasuries are going up and they're going up and up and the impacts that have. but you were actually looking at how much u.s. treasuries are owned by foreigners, and you have a number here of 9 trillion. okay. out of about a total of what, 32 trillion? >> exactly. >> okay. so this is foreign ownership. so we'll just put foreign. okay. i'll put it up here. right. and then total treasuries are 32 trillion okay. all right. this 9 trillion number about about 10% of it is china. so what are you seeing i mean everyone's been saying well what's happening in these every day in these auctions. what are you seeing? you're seeing something.

>> yeah. one way of looking at that is several things to look at. you can look at some of the auction metrics. whenever the u.s. treasury does an auction and they sell government debt, there's a number of statistics that come out together with that. and a number of these statistics, including indirect bidding, meaning how much comes from including foreigners, also allotments when it goes to who it is exactly is the buyer. those things have been suggesting that foreigners have less demand for buying treasuries. but perhaps most importantly, the dollar speaks for itself because the dollar tells you that foreigners are selling us assets. and that's of course, the risk and the fear you can have, namely, that if the dollar goes down, that means that foreigners are selling u.s. assets and ultimately, therefore beginning to think about what is our holdings and what should be our right holdings of assets, not only, of course, of treasuries, but also of u.s. equities. >> all right, torsten, thank you very much. all of that. incredibly sobering. dan ives with me is with me, also global market strategist at jp morgan asset management. i mean, the issue with this, of course, i mean, you've got the majority are held by americans. so let's just look at the glass half full. but if you have other countries either trying to

retaliate or just simply looking for other options and they start finding them, then all of a sudden the cost of america's debt, our interest already exceeds medicare. it already exceeds the department of defense budget. things get a lot worse for america. >> well, what you're seeing. >> in the treasury market is it's finally responding to. >> some of. >> these debt. >> and deficit dynamics. >> because it doesn't actually matter. >> how. >> much your overall debt is. >> but it. >> certainly matters your ability. >> to service that debt. >> so for many years, we did more and more spending. and yet since the. >> financial crisis, rates were very low for a very long period of time. >> so people somewhat. >> ignored the fact that we had a. >> growing and. >> growing deficit. >> now. >> when you see. >> the fed raises rates, all. >> of a. >> sudden we spend. >> $1 trillion. >> a. >> year nearly in interest payments. that essentially. >> doubled from. >> 2023 to 2024. it tripled from 2021. >> to 2024. >> it's stunning. >> and so. >> what you have to be mindful. >> of is.

>> that what we saw. >> from this debt downgrade is while it wasn't new news necessarily. >> that other ratings agencies downgrade. >> debt before, it is certainly an indictment of the fact that we have been. >> profligate with our federal. >> finances and. need to find. >> ways to. >> rightsize them, and it's not going to happen in one big bill, and nor is it going to happen in rapid succession. >> no. and of course, the bill, the current bill could have add 3 to $5 trillion to that debt, which is which is why there are some who are balking at it. but then there's also the and i don't want to use the word too heavily, but there is the weaponization. countries that are mad at us for what it's doing are frustrated. there is a very easy way to send a message. >> yeah. look, and these are things that we've seen but but and ultimately in terms of china. and look even last week in terms of middle east, you know, you're now seeing countries. put in a. >> pecking order. >> because middle east especially, they're ahead of china when it comes. >> to a.i. >> and you talk about weaponization. it's really. a.i. now is being used from. >> a u.s. perspective. >> because there's only one chip in the world. >> it's nvidia. >> that's. fueling it. but it speaks. >> to what we're going into. and we've talked about. and that was a great way to put it. we're

going into this sort of. very tightrope. time where you're going to need to balance from the tax to the deals. >> so so we're looking at port of l.a. saying 30% drop in shipments in the first week of may. they expect 25% for the whole month, which is significant because that is allowing for tariffs going from 145% to 30. right. so you're still seeing a huge drop and you're seeing walmart. you're seeing subaru. you're seeing prices are going up. prices are going. it is what it is. they are going to go up and they're i think maybe what's so scary is what jamie dimon said is true. there is a complaint since he in the market, the market is trading as if there's no tariffs at all. >> we basically went from. >> about. >> 2.3% on average. in terms. >> of a. >> tariff rate last year. >> on imported goods to about