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It's Monday, May 12th, and here's what's happening right now on CNN This Morning. Both sides on the reciprocal tariffs will move their tariffs down 115%.
A trade agreement between the US and China. Is this the beginning of the end of the tariff war? Plus, President Trump plans to sign an executive order that he says would drastically reduce drug prices. Is his plan the right prescription? And also, an imminent release: The last known living American hostage in Gaza could soon be freed. He's been held by Hamas for more than 500 days.
And opening statements set to begin in the case against Sean Diddy Combs, how defense lawyers plan to frame the relationship between Diddy and one of his accusers, Cassie Ventura.
It is 6 a.m. here on the East Coast. Here's a live look at the White House as the Trump administration announces a major trade deal with China. Good morning, everyone. I'm Adi Cornish. I want to thank you for waking up with me. We're going to begin with this breaking news overnight. A plan now in place for the U.S. and China to dramatically de-escalate their trade war for 90 days.
Top Trump administration officials emerged from days of high-level talks in Switzerland with an agreement. Both the U.S. and China are now rolling back tariffs on each other's goods. And the U.S. will now impose a 30 percent tariff on Chinese goods, down from 145 percent. China has agreed to roll back their rates on U.S. products to 10 percent, down from 125 percent.
The consensus from both delegations this weekend is neither side wants a decoupling. And what had occurred with these very high tariffs, as Ambassador Greer said, was the equivalent of an embargo. And neither side wants that.
President Trump hailing the weekend talks as a total reset. Investors also seem to be welcoming the news, U.S. futures and other global markets spiking higher after the announcement. Joining me now in the group chat, Stephen Collins and CNN politics senior reporter Margaret Tulliv, senior contributor at Axios, and Alex Thompson, CNN political analyst and senior political reporter at Axios. Welcome back, you guys. I hope you had a good weekend.
So even though I gave this description that makes it sound like it's kind of a done deal, the New York Post sets me straight saying it is a Swiss tease indicating that they are not fully sold, that this deal is done. But the details are gonna come out. Stephen, what are you looking for?
I think this is, the Treasury Secretary is right, it is a reset, but it's a reset from the situation that the President created in the first place. He's going to declare this a big victory because there'll still be a 30% tariff. He believes in tariffs. Tariffs bring in money to the Treasury. And the numbers have been so high that 30% seems low, even though 30% is still really high. But the question here is, is 30% tariff sufficient to
bring back manufacturing and jobs to the United States that have gone to low-wage economies abroad? Probably not over the long term. Secondly, even if some companies assume the cost of some of those tariffs, if we all end up paying more for Chinese imports, then the consumer is going to be worse off. So you have to ask the question of,
Has the president simply solved a crisis that he created himself and left us in a worse position? We'll see. Here's what China signaled over the weekend, as the talks seem to be at least making some progress. So they're saying, we're going to promote new development in the China-U.S. trade and economic
relations and inject more certainty and stability into the world economy, China's position towards a trade war has been clear and consistent, and that is China doesn't want to fight a trade war because trade wars produce no winners. But if the U.S. insists on forcing this war upon us, China will not be afraid and will fight it to the end. So this is the talk coming out of the deal.
Right. Which is, this is not our fault. We didn't want this. And also, if you keep doing it, we're like ready to go. We're watching the headlines out of Switzerland over the weekend, the Swiss cheese deal. And it was really interesting to see President Trump suggest like, this is great, great progress is being made. And then the comments that you'd see in Chinese state media were like,
China will never give in to extortion, things like that. So I think we have largely been watching a manufactured crisis and now the president taking his foot off of the gas, at least of that. It's a 90-day pause. I don't think based on what the markets have done and what voters have been saying in polls that it's a fight that he totally wants to
reignite, but it doesn't mean it won't happen. I mean, there's another three plus years left to this presidency, but the initial reaction that we have all been hearing from CEOs, from experts on global trade, from economists, from experts on recessions, from voters who are gonna be instrumental in the midterms in 2026 are,
We really don't want an escalation of prices, empty shelves, a shortage of goods. - I like that you made that list though. And Alex, this is one for you because Commerce Secretary Howard Lutnick was talking about this on CNN over the weekend. And he also was kind of alluding to the idea of what the experts were saying about the tariffs.
So we do expect a 10% baseline tariff to be in place for the foreseeable future. But don't buy the silly arguments that the U.S. consumer pays.
businesses, their job is to try to sell to the American consumer. And domestically produced products are not going to have that tariff. So the foreigners are going to finally have to compete. They're going to have to compete. What happens is the businesses and the countries primarily eat the tariff.
Well, you highlighted the key word just before, which was certainty. And the thing is that Trump is trying to restore certainty into the markets. But the problem is, can you put the toothpaste back in the tube? Yeah, some people are saying the damage is done. Yeah, exactly. You cannot bring it back. The fact is that people don't know where they can actually buy products right now. And
You know, can you bring manufacturing back from China to the United States? Well, now you're looking at this and you're like, well, there's a 90-day moratorium. And then Howard Lutnick, you know, he definitely speaks Trump's language when it comes to these tariffs. This is exactly sort of the Trump line when it comes to these things. But the idea that...
that businesses and countries are going to be the ones that just eat the tariff willingly and aren't going to pass on any costs. No serious economist really believes that. Well, not just that. I've noticed in some of the clips we play over the last couple of months, the average person is saying that now. The average person is saying, well, these prices are going to go up. Prices are going to go up. They are not totally bought into this argument. It's not something that's
the only the elites are saying so group chat stay with me we've got lots to talk about today coming up on cnn this morning ukraine's president says he's ready to meet face to face with vladimir putin but will the russian leaders show up plus the fight against hidden junk fees what you'll see before you buy tickets to cowboy carter and any other concert this summer and another air traffic control meltdown at newark liberty airport is the problem just too many flights
We have to fix this because what you see in Newark is going to happen in other places across the country. Ryan Reynolds here from Mint Mobile with a message for everyone paying big wireless way too much. Please, for the love of everything good in this world, stop. With Mint, you can get premium wireless for just $15 a month. Of course, if you enjoy overpaying, no judgments, but that's weird. Okay, one judgment.
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It's almost 15 minutes past the hour and here is your morning roundup. Today, President Trump expected to sign an executive order aimed at cutting drug prices up to 80%. It's expected to be similar to policies he signed in his first term. Those were overturned by President Biden. Now, both Medicare and its beneficiaries could see savings, but it could also limit patients' access to medication, according to some experts.
Ukraine's president says he is ready to meet face-to-face with Russia's leader after President Trump urged him to immediately accept Vladimir Putin's offer to hold peace talks in Turkey. And I hope that this time, Putin will not look for reasons why he cannot do something. We are ready to talk to end the war.
Last week, President Trump proposed a 30-day unconditional ceasefire, something Russia has ignored. And the Colorado Rockies are looking for a new manager. They fired Bud Black on Sunday after nine seasons with the team. You can call it a rocky start. Colorado is off to one of the worst starts in Major League Baseball history with a 7-33 record.
And the partner of imprisoned Theranos founder, Elizabeth Holmes, is raising millions of dollars for a new AI startup, and it involves medical testing. Holmes is reportedly an advisor. Keep in mind, she's serving an 11-year sentence in federal prison for misleading investors about her blood testing startup, Theranos.
Ahead on CNN this morning, a possible breakthrough in Gaza. We're going to tell you about the last known living American hostage who could go free as soon as today. Plus, where is the Democratic Party heading? How a leadership crisis is creating a new opportunity for younger voices.
Conversation continues in the Democratic Party, still searching for a voice and an identity after the singing defeat in last year's election. With longtime leaders like former House Speaker Nancy Pelosi and Barack Obama stepping back, the party is facing a generational shift. This moment presents an opportunity for younger leaders to step in and shape the party's future. So take part, Glenda, shooting survivor and DNC vice chair David Hogg.
Ultimately, what we have to do here is figure out how to bring people back in and work towards the bigger goal of advancing the future of this country and helping young people especially get by so that they're able to focus on their lives. Young people should be able to focus on what young people should be focused on, which is how to get laid and how to go and have fun.
Joining me now to discuss Michigan's Secretary of State, Jocelyn Benson. She's also the author of The Purposeful Warrior, Standing Up for What's Right When the Stakes Are High. So your book is coming at this defining moment. You're launching your own bid for governor of Michigan. First, can you just respond to what we just heard from David Hogg? Because he's actually taking a lot of action.
I guess he's taking a lot of incoming from others in the party who say that his push to primary other Democrats is a real problem.
I think it's important for us as a party to have a conversation about how we can truly show up for the people of America and the people of Michigan who are struggling right now, struggling to pay for childcare, to buy a home in the community they want to live in. And as the cost of everything continues to rise, that's really what's on the forefront I've seen of young people's minds, of elder people's minds.
wiser individuals as well as everyone in between. And so for me as a mom of an eight year old kid, who in 10 years is gonna be 18, I know that the work we do over the next 10 years is gonna define his childhood and his future. And I know that's front of mind for a lot of folks in my party right now. And so we're working to develop real solutions and then get things done to deliver results. And that's certainly what governors in democratic led states have been able to do over the last several years.
So there are people whose footsteps you're trying to follow, like outgoing Michigan Governor Gretchen Whitmer, who are showing up, right, next to Donald Trump in some instances. Can you talk about the complications of that? Whitmer has taken a lot of heat for, you know, her difficult moment in the White House, for example, where it was pretty clear she didn't want to be there. How do Democrats manage those moments?
Well, I think the way I've done it as Secretary of State standing up to President Trump when he and many others tried to overturn our election results in 2020 is to speak the truth. I mean, every minute we've got to be focused on how to save our residents money, how to make sure we're making their lives better. I want to stand up and I will stand up for the economic prosperity of every resident of their state, and I'll work to protect our rights and freedoms.
Over the next three years, that's going to mean working with this Trump White House. And there are some Democrats who believe it's you're saying no under any circumstances. Others like Whitmer say you have to fight for what your state deserves, even if it means you're going to be uncomfortable.
Secretary of State and as governor, I'll have a job to do. And I'll work with anyone to protect and grow the economic prosperity of our residents. And I'll take on anyone, no matter how powerful, who gets in the way. And in many ways, this president has gotten in the way of the economic prosperity of our residents, creating a lot of chaos
and uncertainty in this moment. And so my job as governor will be to stand up to that, to speak the truth and say, this is actually how your policies are hurting our residents. And then try to, again, work with anyone to get things done to improve the cost of living and cut all of the rising costs in our state.
I'm trying to understand what makes each of these different paths we're hearing from Democrats distinct. You use this term purposeful warrior. What is your idea or strategy to connect with the people who are not connecting with Democrats right now? David Hogg is talking about young people. But is there something that Democrats are missing in making this connection?
I think a lot of people are cynical. They hear a lot of talk and don't see a lot of action. They're struggling and they hear solutions, but they're not actually seeing those results in their day-to-day lives. So I do think governors in particular can deliver and you see folks like Josh Shapiro, Tim Walz, J.B. Pritzker and others actually delivering on those results. And that's what it's going to take to rebuild that trust in a party that is focused on making the lives of everyone easier and lifting every vote.
Jocelyn Benson, thank you so much for talking with us. And you can get a copy of her book. It's called The Purposeful Warrior, and it is out now. Next on CNN this morning, selecting a jury. Today, lawyers hope to whittle down the jury pool to 12 in the case against Sean Diddy Combs. And what in the world is going on at Newark Liberty Airport? Another ground stop over the weekend.
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Good morning everybody, I'm Adi Cornish and thank you for joining me on CNN This Morning. It is now almost half past the hour. Here's what's happening right now. Stock futures rising as the US announces a trade deal with China. The two countries will drastically roll back tariffs. For a 90-day period, both sides have agreed to move down reciprocal tariffs to about 10% each.
We do want trade. We want more balanced trade. And I think that both sides are committed to achieving that.
To be clear, there's an additional 20% tariff on China still in effect as they continue discussions on the influx of fentanyl coming into the U.S. from China. And President Trump travels to Saudi Arabia today, the first overseas trip of his second term. He will meet with the Saudi crown prince at an investment forum to strengthen economic ties. He'll also be visiting Qatar and the United Arab Emirates on that trip.
Hamas signaling the imminent release of Eden Alexander. He's the last known living American hostage in Gaza. He could be freed as soon as today. His parents headed to Israel last night to be there for his release. Alexander has been held captive for more than 500 days.
Back now to our breaking news on the trade war. The 90-day clock is ticking for the U.S. and China to come to a new agreement in order to avoid the return of sky-high tariffs on each other's goods. CNN's Mark Stewart joins us live from Beijing. And Mark, what more are you learning about this deal in terms of what might be next in the conversation?
Right, Artie. The broader goal in all of this is to have some kind of mutual agreement, a roadmap for the future, for economic success between the world's first and second largest economies. As we've seen, it's just not a good look when we see a tariff dispute as we are seeing now. So we are seeing in this interim period a reduction in these tariffs. That's very significant, but there's also a very symbolic accomplishment that's important. Number one, uh,
we are having this joint statement. The fact that both of these nations put out a statement together to say that they are committed to some kind of economic fairness between them, that's a very big deal. It's just not something we see that often. The other important measure in all of this is that it's created a mechanism, a channel for these two
economic superpowers to communicate. In the past, that just wasn't there. Now that's been established. As we have seen, China really prefers diplomacy 101, back-channel conversations, whereas President Trump, if he had his way, he would call President Xi directly. That's just not in the Chinese style. So we have this level of conversation that now seems to be acceptable to both parties.
But while there are certainly high hopes, a lot of optimism, there's also some caution. We're hearing very guarded statements from Chinese government officials. Take a listen to what the Chinese vice premier had to say just hours ago, speaking from Geneva. Let's listen.
We're going to promote new development in the China-US trade and economic relations and inject more certainty and stability into the world economy. China's position towards this trade war has been clear and consistent. And that is, China doesn't want to fight a trade war because trade wars produce no winners. But if the US insists on forcing this war upon us, China will not be afraid of it and will fight to the end.
A lot of this is also economic necessity, if you will. We have seen in the United States some of the supply chain concerns. We have seen GDP, which measures economic strength. We've seen it take a reduction in the previous quarter. And then here in China, manufacturing is down. And that's on top of a lot of economic uncertainty that the country was facing already. So in many ways, Adi, money is proving to be the big motivator in all of this.
CNN's Mark Stewart in Beijing. Thanks so much. How after another tough weekend for travelers at Newark's airport, the transportation secretary is warning it could get worse before it gets better. And not just at Newark, but at every airport across the country. This week, Secretary Sean Duffy will meet with major airline leaders to discuss solutions. One could be scaling back flights, and that could lead to a travel nightmare ahead of the busy summer season.
Do you need to scale back flights coming in and out of Newark while you are addressing these glitches, these problems that are so potentially dangerous? 100%. So we actually have brought down the number of airplanes that come in and leave Newark. Because listen, our mission is safety.
Group chat is back. I feel like this is something everybody can understand or chat about because summer travel season is starting, right? Memorial Day weekend ahead. How much of a problem is this becoming for the transportation secretary? Because I remember Pete Buttigieg taking heat for lost luggage.
This seems way worse than lost luggage, like severely stretched out air traffic control. I mean, this is why you saw Secretary Duffy clash with Elon Musk early on in the administration, because Elon Musk and Doge came in and they wanted to shake up the Transportation Department. And Secretary Duffy knew that this, you know, Americans, voters don't like planes crashing.
And he understands that simple fact. But also, this has been a longstanding problem. There were a lot of near misses also during Secretary Buttigieg's tenure. And there have been near misses for many years, going back 10 years. And to be clear, Duffy has said that no air traffic controllers were laid off. But he had to push to make sure that didn't happen. And when I looked into it, a lot of maintenance people and other kinds of support
has thinned out considerably under the Doge cuts. Margaret, at a certain point, do people like me become the problem who are like, you know what? Let me do a road trip. I don't think I want to deal with this right now. And this administration is not comforting me.
- You know, it's really interesting there, I think with Junie Impero now 23 Fox personalities that are in the Trump administration at some level. - Did you say 23? - 23. - Okay. - But here you see, I think the real upside to having someone with a strong communications background do the messaging, that's a very competent public handling. He's saying the things that,
A parent wants to hear air travel is safe or anyone getting on a plane wants to hear that it's safe, that his priority is safety. But to your point, there is polling that shows, this is APNORC polling, that shows that just in the last year, there's been a significant erosion in people's trust about whether it's safe to fly. Most people still feel that it's safe to fly, but a couple important people
declining groups. The most important one, I think, is women are feeling that it's less safe to fly than even just a year ago. I feel personally attacked, just so we're clear. I did not answer this poll. Women do play a significant role in deciding whether to put their kids on a plane or whether to put their families on a plane. So, yes, on the one hand, these are longstanding aging and degradation of equipment. These are problems that span multiple administrations. But on the other hand... Yeah, but how does it get fixed? By whom? At what point is it a problem? At the FAA,
had all these probationary employees that they cut hundreds of employees that were cut. Right, which really just meant new. It didn't necessarily mean there was a problem with them. Well, it's a problem now. The administration, it seems, has taken some strong steps, saying it's trying to invest more, try and hire more air traffic controllers. The problem with that is it takes time. It takes years to train an air traffic controller. And it takes money. I think they've got something like $5 billion proposed in the most recent bill. But you do wonder whether it's time to...
treat this as a massive emergency before something goes wrong. And that is the question. Can the administration, which in the past has been sometimes questionable on its delivery, can it actually get it done? Yeah. And this is also not the kind of thing you can just blame the past administration, right? Because the problem is now and can escalate. Yeah. You just can't say it was someone else's problem. He's talking about raising mandatory ages. They're talking about a multi-zillion dollar increase
overhaul that's an exact zillion is a multi-zillion dollar but it does take you can't just turn a dime and the other thing that i've been thinking about is that um this shows in really visceral terms uh the downside of cutting government too aggressively or not making sure that there's a pipeline for talent uh it is harder to see in other ways what's the long-term impact for nih funding or certain programs when it's airplane safety we can you can see it right away
Okay, we're going to keep talking about this today. I know people are thinking about this topic a lot. Group chat, stay with me. I'm going to turn to something else because opening arguments are expected as soon as today in the trial of rap mogul Sean Diddy Combs. The trial is expected to last around eight weeks. Now, Combs is facing a range of federal charges that could send him to prison, frankly, for the rest of his life. Prosecutors are expected to call Combs' ex-girlfriend, Cassie Ventura, to the stand as one of the first
three witnesses in this case. Ventura sued Combs for abuse and he settled back in 2023. But this all went very public when a 2016 hotel surveillance video showed Combs physically assaulting her. He later publicly apologized. Joining me now to talk about this is CNN legal analyst Joey Jackson. Joey, can I just start with something that will be an easy question for you, which is I'm under the impression that all
of Diddy World is locked under NDAs. So can you help me understand how people are going to make it to the stand? What's happened to that?
Yeah, Adi, good morning to you. So an NDA is a non-disclosure agreement, and that essentially is a private contract, and people use them all the time. Why? Not necessarily to hide criminality, but to keep their affairs private. When I say affairs, meaning business matters, not affairs in the literal sense. And so they are certainly enforceable. To your question, however, they do not supersede a subpoena or your obligation to testify. And in fact, Adi, most
NDA's non-disclosure agreements have a provision that says exactly that, right? With exceptions with respect to coming into court, being compelled to testify about a certain matter. So the long and the short of it is you may have any non-disclosure agreement you want if you're subpoenaed to testify as it relates to giving oral testimony or producing documentary testimony, that is documents, materials, then the NDA folds and it's your testimony and the subpoena
That takes priority. And so notwithstanding any NDAs, I would suspect that those who are called to testify will do just that. All right. So speaking of which, Combs' lawyers actually previewed their arguments against Cassie Ventura, of course, his longtime partner.
And they were saying, quote, "We're going to take the position that there was mutual violence in their relationship." This is from their defense attorney, saying that there was hitting on both sides. So we're probably going to refer to it as domestic violence. Joey, talk about this approach. We've actually, in a way, seen it before when we think back to the Johnny Depp and Amber Heard trial. What are we expecting to see in their approach?
Yes, so what happened is, is a judge made a very critical ruling. The ruling related to the tape everyone has seen where it appears that Sean Combs is really being extraordinarily violent with her. And so the defense tried to exclude that feeling that the jury having seen that will be very prejudiced against him. The judge said, no, it's coming in. So what the defense now has to do is to embrace this. Remember, what had happened was, is that Sean Combs went out after
the tape was released and issued an apology indicating that he was ashamed of himself indicating that he had sought therapy and that he would try to be a better man so there's not running from that and so i think with the defense has to establish is this may have in fact occurred that may indeed have been domestic violence on both sides does that make him the defense will say a person who was in charge of a criminal enterprise does it make him a sex trafficker does it make him a person
criminal right as it relates to the charges he's facing this case is way beyond outtie a domestic violence case it's a lot more than that and so the defense will use the notion of the tape they will can't run away from it but they need to explain that that isolated instance of the fence will say doesn't make him guilty of the five charges that he's facing in federal court
Okay, Joey Jackson, thank you so much for explaining it. Appreciate you. Absolutely. Thank you, Abby. Ahead on CNN this morning, President Trump touting a very expensive gift from Qatar. But one law enforcement source tells CNN the luxury plane could become a security nightmare. Plus, Pope Leo holds his first audience with journalists today, what he has to say following his historic election. And of course, more from the group chat after this.
It's important to understand how quickly we were able to come to agreement, which reflects that perhaps the differences were not so large as maybe thought. Stock market futures are pointing up after a breakthrough on trade talks between the U.S. and China. Just hours ago, both countries announced they would dramatically roll back tariffs for a period of 90 days as talks continue. Now the U.S. will impose a 30% tariff on Chinese goods. Of course, that's down from 145%.
China, in part, has agreed to cut their rates on U.S. products to 10 percent. So all this comes as U.S. port officials on the West Coast warn about looming impacts from the tariffs between the world's two economies. Port of Long Beach CEO Mario Cordero tells CNN a total of zero cargo ships have left China for the U.S. since Friday, something he hasn't seen since the pandemic.
We may be seeing empty products on the shelves. So this is now going to be felt by the consumer in the coming months or actually in the coming 30 days because again, with the numbers I just gave you, that's indicative and a red flag with regard to the cargo essentially is stopping.
Joining me now is Cardiff Garcia, Editorial Director of the Economic Innovation Group. Welcome back, as always. Thanks for being with us. All right, first I just want to tackle that because he's calling it a red flag and we're hearing his comments about the ports and potential empty shelves in a moment where the Trump administration is saying, look, there's some movement in our deals. We're doing the thing we said we would do.
But I know over, you guys have been talking about a kind of Wile E. Coyote economy. Right. What does that mean? Well, it means that so far the effects of the tariffs have not yet shown up. Oh, wait, we want to remind people. Because young people don't know what this is. This is called a cartoon, everybody. And.
And back a long time ago, we were entertained by this. But the point is running and running and running. Not knowing that the ground may have already fallen off beneath us. Right. And so the idea here is that the effects of tariffs have not yet shown up in the official data, the hard government data, because it operates with a lag. But that doesn't mean that there aren't some indicators looking forward that
don't point to trouble ahead. And one of the things that people have been looking at is the number of container ships coming to the US from China. It's like a concrete thing you can look at. It's something you can look at that points to the future. But with this big de-escalation yesterday, I actually think you might start seeing those ships start coming back to port again, partly because people are still uncertain about what the
eventual outcome will be of the 90 days of negotiations. So you might see a lot of American manufacturers that import equipment from China rush their purchases. You might see American consumers rushing their purchases again of the stuff that they buy that's typically made in China. We've also been hearing from companies because they've been warning investors here and there. There's Mattel, GM, Ford, all sort of signaling, hey, the impact
as it stands, if we continue on this path, is real. But you just told me, because I looked at all your notes last night, and you're like, throw away these notes because now there's been some kind of deal. So help me understand. I'm using the word deal very liberally. Yeah.
What are we in the middle of China UK? What do you see? I'm calling it a temporary de-escalation for now, right? But what we've seen is that a lot of companies have come out and said that they are in fact going to pass on the price hikes to consumers the tariffs to consumers you played a clip earlier from Howard Lutnick Commerce Secretary essentially saying that that's nonsense. Well, I'm sorry saying but don't listen to people who say that and
Sure. Companies are directly contradicting him already. And what I would say also, though, is that there are only two options here. Either companies pass off the tariffs to consumers and then prices go up for them, or the companies eat it themselves, which is bad for workers because it means that the companies are less profitable.
profitable, fewer employment opportunities, job losses, smaller wage hikes for workers as well. So those are the possible options here, right? That's where we are now. Yeah. And we still have many more days to go because if you're doing these deals country by country, we're actually, we're not at the start of this, right? We're kind of in the middle. China is a big deal, having that tentative conversation. That's right.
I think you have to put it in the context of everything else that's happening, too. So at the same time that there's this pause with China, there was also the trade deal with the UK last week. And we're still negotiating with Europe and the rest of the world. And if we don't arrive at deals with them, we go right back to the April 2nd tariffs.
not the baseline 10% that Trump had lowered them to on April 9th. And so there's still profound uncertainty. And if you put it all together, what it suggests is that for now, we are headed for a world in which tariffs are meaningfully higher than they were before April 2nd. So in that way, Trump has reached his goal, right? He wanted to reset the global economic order in some ways around his favorite economic lever and tool, tariffs.
Part of what's tricky here is that depending on which Trump official you listen to, it's not actually clear what the goal of the tariffs is. Some say that it's to raise revenues for the country, to shrink the budget deficit. Some people say that they're good on their own terms and that they're not actually, you know, going to be as devastating to the economy as people think.
think because it's going to actually lead to more free trade with other countries because we're using them as a negotiating tactic. Some of those goals are contradictory and we don't measure them if we don't know what the goal actually is. That's right. Cardiff Garcia, always great to talk to you. Thanks so much. Cardiff is editorial director of the Economic Innovation Group. So it is 52 minutes past the hour. Here's your morning roundup.
Pope Leo XIV met with over 6,000 journalists at the Vatican. It's standard practice for a newly elected pope to share their vision for the world. Pope Leo called for an immediate ceasefire in Ukraine and Gaza during his first Sunday blessing at the Vatican.
And a ceasefire seems to be holding this morning between India and Pakistan. Kashmir saw its first calm night in recent days, according to an Indian Army spokesperson, both sides stressing their commitment to the truce after several days of deadly back-and-forth strikes. Because I can deal it with a bucket.
If you went to the Aris tour or Cowboy Carter or any concert, frankly, you know the cost of your ticket doubles or sometimes triples at checkout. Well, starting today, the FTC will require live event ticket websites, hotels and short term rental companies to display the total price before checkout. This won't make your tickets cheaper, but the FTC says it should save you time.
And it's being called a flying palace. The Qatari royal family is giving President Trump a new plane, one that could become the new Air Force One. The luxury Boeing 747-8 jumbo jet is valued as high as $400 million. That's according to an ABC News report.
But one question remains. Can the president actually accept and fly in this new plane from a foreign government? Group chat is back. I don't even know where to begin with the appearance of impropriety or the security concerns of getting a plane. Who wants to start?
I can say, like, they're doing this legal rationale, which is that they're not giving it to Trump. They're giving it to the Air Force, who then is giving it to Air Force One, and then they will give it to the Presidential Library afterward. So they clearly are trying to get around at least the spirit of
of the emoluments clause. I'll also say Donald Trump has not liked Air Force One going back to his first term. He has been trying to get it replaced and there have been so many delays with the Boeing's new project that he basically is fed up. He's like he wants a new plane. - And Boeing is struggling a bit as a company. - He's trolling like a few different players at the same time. One is Congress because this is supposed to be a job for Congress to decide whether a gift can go.
to the president in a way like this. And the other is Boeing because there is gonna be a new Air Force One. At the earliest it'll roll out
roughly within the very last year of President Trump's presidency. And it may be later than that, so he might not get to fly on it. Oh, so you don't think this is him being like, Boeing, why don't you hurry up? No, I think he wants the new plane. No, he definitely... But also, like, look, there is... A foreign government could not give a president $400 million in cash, or at least I don't think they can. Give it a minute. And so...
And so there are obvious ethical discussions and questions and considerations and reasons that the Constitution was written in a way to try to prevent foreign influence on US leaders. So all of that stuff becomes part of this conversation for very obvious reasons. - And Trump was kind of boasting about it on Truth Social, basically saying that they're getting it free of charge. And then interestingly, he says it bothers the crooked Democrats that they insist we pay top dollar for the plane.
Anybody can do that. The Dems are world-class losers. Well, this is a scandal in plain sight. There's three exclamation points there. You think so? Well, imagine if this was happening secretly and then it was suddenly exposed. The fact that it's out there and Trump's saying, here's what we're going to do, not only is it an infringement of the Constitution, even if they say it's going to the Pentagon, if Trump gets to keep the plane at the end, it's a gift to Trump. The second point is...
If you accept a plane from a foreign power, you're going to have to spend hundreds of millions of dollars checking that there's no surveillance devices on that plane. You don't know where it's been. And so under this scheme, the president is going to presumably spend hundreds of millions of dollars doing up this plane, while billions of dollars are already being spent on the two Air Force Ones that are coming down the line at a time when
They're gutting government and normal Americans are facing a lot of trouble paying for their grocery bills. Right. Politically. And are nervous about getting on planes themselves. You know, it doesn't look like it's going to fly. Pardon the pun. It's too early. Stephen Collins, you are not pardoned. He landed that plane. Okay. Oh, my God. Okay. Let's move to keep an eye on it. Okay. It's Monday.
There's a lot going on this week. What are you guys paying attention to? I'm interested to see if Vladimir Putin turns up to these peace talks supposedly taking place in Ukraine. The Europeans wanted a ceasefire before these talks. President Trump said that's not going to be necessary. They should just hold the talks.
Zelensky, therefore, had no option but to agree to show up to Turkey. Will Putin be there? And also, Putin has not exactly been pleasing the Trump administration with sort of... True, but it seems like, once again, the scales were tipped towards Putin by the administration this weekend. You guys keep an eye on it?
Look, the big White House development this week is going to be that trip overseas, but I have 13 college athletes here this week to learn about how the media and politics work. And so I think for all of them, all of our focus is going to be on these reports late last week that President Trump is going to personally get involved in NIL and the future of college sports. Which is name, image, and likeness, their ability to profit off of their own.
name, image, and likeness. Is this good for students? Is it the Wild West? Is it going to save college sports? Is it going to destroy it? And can President Trump and the billionaires and former coaches that he puts together improve the outcome
or unravel it, we're going to find out in the weeks and months to come. And that's what I'm fascinated by this also because of the portal. I'm like learning sports things. So there are so many kids basically who can like switch schools, right? If they get a better deal, so to speak. And so there's a lot of upset college sports fans out there. Alex, you.
I'm going to be a bit shameless here because I have a book coming out with Jake Tapper next week. But I can tell you very confidently from a source familiar that some of the first scoops from that book will be coming this week. And I think they're going to make a splash. Wait, is the source Jake? No, it's me. The source is you? Oh, I couldn't tell. OK.
But people have been talking about this for a while, especially as Biden is out there doing a kind of image rehab. I mean, going to The View, right? Having-- and Dr. Jill Biden saying, no, actually, he was fine. Like, what do you make in that campaign, so to speak, ahead of the book's publishing? I mean, a lot of Biden people believe that they are going out there specifically to pre-bud our book.
And that's them saying it, not me, because I think our book is about Biden's decline and they are trying to show, no, he's fine. He could have served another four years. Yeah, well, it'll be interesting to see the response to that. I think there's a lot of incentives, particularly for Republicans to continue to talk about that issue. And I think I heard, I think Senator Klobuchar saying like, this isn't the History Channel. Stop talking about all of this. Yes, but she also said,
Democratic Party would have been better off if they had had a primary and Biden had not run. Exactly. So the conversation continues. Group chat, thank you so much for talking with me. Thank you for waking up with us. I'm Adi Cornish and CNN News Central starts right now.
Take a journey with your favorite stars to their favorite places in the new CNN original series, My Happy Place. Join Alan Cumming, Taraji P. Henson, Simu Liu, and more. A new episode of My Happy Place premieres Sunday at 10 on CNN.