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U.S. and China Agree on Trade Deal; Government Shutdown Enters Another Week; Rep. Marlin Stutzman (R-IN) is Interviewed about the Shutdown; Hurricane Melissa Nears Jamaica; Andrew Reid is Interviewed about the Hurricane; Air Traffic Controllers to Miss First Full Paycheck. Aired 9-9:30a ET

Aired October 27, 2025 - 09:00   ET

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

[09:00:00]

UNIDENTIFIED FEMALE: Just can't stop thinking about this And I hope -- I hope something good comes out of this.

(END VIDEO CLIP)

JULIA VARGAS JONES, CNN CORRESPONDENT: For now detectives say they remain hopeful that perhaps Melodee could be with someone who just doesn't realize that she's missing. She's nine years old, about four foot six, 60 pounds, with brown curly hair and brown eyes. And anyone with information is urged to contact the Santa Barbara County Sheriff's Office or submit an anonymous tip through sbsheriff.org.

Julia Vargas Jones, CNN, Los Angeles.

SARA SIDNER, CNN ANCHOR: New this morning, Jamaica is bracing for impact right now and preparing to take a direct hit from Hurricane Melissa, now a category five storm. The most powerful storm in the island's history. We are tracking the storm's path.

President Trump landing in Japan this morning. The latest stop in his high stakes trip to Asia as the U.S. and China agree to a substantial framework of a trade deal. Part of that framework, TikTok and soybeans.

And a break in the case. Two arrests made in the Louvre heist. The jewels, on the other hand, where are they?

I'm Sara Sidner, with Kate Bolduan. John Berman is out this morning. This is CNN NEWS CENTRAL.

KATE BOLDUAN, CNN ANCHOR: New this morning, President Trump meeting with Japan's emperor at the Imperial Palace in Tokyo. This is the second leg of his nearly weeklong tour through Asia. Tomorrow, the president will be meeting with Japan's first female prime minister, Prime Minister Takaichi. But what's really driving headlines this morning is the potential breakthrough in trade talks between the United States and China, the world's second largest economy. And it comes just days before President Trump is set to meet face to face with Chinese President Xi Jinping for the first time in six years. According to the Treasury secretary, Scott Bessent, a substantial framework is in place for the deal, including, according to the secretary, provisions on fentanyl, U.S. soybeans, rare earth exports and ownership of TikTok. President Trump has also said that he would, in his words, love to meet with North Korea's Kim Jong-un and would be willing to extend his trip to make it happen. But that is not on the agenda as of right now.

CNN's Kristen Holmes is on the agenda. She's live in Tokyo for us this morning here, this evening there. What's the very latest, Kristen?

KRISTEN HOLMES, CNN SENIOR WHITE HOUSE CORRESPONDENT: Well, Kate, I will remind you that the last time President Trump met with Kim Jong- un it also wasn't on the agenda. It all came together very last minute. We saw a post on Twitter, and then it all came into action. So, it is still a possibility that that could happen.

But, of course, really the focus is on what we know is going to happen, which is this sit-down meeting between President Trump and Chinese President Xi and this framework for a trade deal. Now, we don't have any paperwork. We haven't seen any documentation of what exactly is in this framework. All we know is we've heard from Treasury Secretary Scott Bessent and his Chinese counterpart, and they're not entirely on the same page on all fronts. Bessent has been very bullish about getting a trade deal, and his Chinese counterpart was much more reserved.

But when it comes to this framework, this is some of what we have pieced together is likely to be in it. You mentioned fentanyl. It's further cooperation on stemming the flow of fentanyl to the United States. That's one part of this. China to buy substantial amounts of soybeans from America. That, obviously, would be huge for American farmers. This has been such an issue across the country. China could delay export controls on rare earth minerals. I'll remind you that that's actually what triggered President Trump to launch these 100 percent tariffs in November was because China had put tighter export controls on rare earths, which was driving the price up in the United States. Bessent has said he expects a deferral of at least a year. We'll see how that plays out.

And then lastly, this finalizing of a deal, the transfer of TikTok to the U.S. Now that we believe is certain to happen. That was something that Bessent said all that needs to be done is finalized by the two leaders. But everything else seems to still be up for negotiation.

Of course, before we get to any of that, President Trump is going to have the meeting with the Japanese prime minister. And this is really much more of a test for her than it is for President Trump. As you said, she's the first female prime minister, and she was just elected. And she's sitting down for her first big diplomatic test with a man, a president, who is known to be volatile at times and certainly not consistent.

And so we'll see how that goes. We know Japanese officials have a lot of questions about trade, tariffs in particular, that $550 billion investment they've made in the U.S. that still isn't entirely hammered out. BOLDUAN: All right, Kristen Holmes, great to see you. Thanks for being

there.

Sara.

SIDNER: All right, new this morning, millions of Americans are bracing for what may be the most painful moment so far of the government shutdown, a cutoff to federal food aid and a spike in health care premiums.

[09:05:06]

Beginning this Saturday, as we turn the calendar to November, 42 million Americans are at risk of losing critical benefits through SNAP, or food stamps. Saturday also marks the first day of open enrollment in Obamacare, when millions of Americans will find out just how expensive their health care premiums will be. But this morning, as the Senate gets ready to reconvene, there appears to be no give from either side.

CNN's Annie Grayer is on Capitol Hill for us.

What are you learning about the latest? A lot of Americans worried about what they are hearing and what they will experience on November 1st.

ANNIE GRAYER, CNN SENIOR REPORTER: Well, Sara, 27 days into the shutdown and there is no end in sight. Both sides remain extremely dug in, but federal workers are really starting to feel the pain here. Over a million workers missed their paychecks on Friday. Lines and delays at airports are continuing to grow. And critical food assistance funding is now at risk. SNAP, the program you mentioned, is set to send out -- was set to send out more funding on November 1st, but now that is all in question with this government shutdown.

USDA says it doesn't have the funding to keep this program going. President Trump says he wants to find a way to prevent Americans from going hungry during the shutdown, but it's unclear how that's going to happen in such a short amount of time. And 42 million Americans rely on this program.

Just this morning, the largest union representing federal workers came out saying it's time to end the government shutdown and reopen the government. So, we'll see how that impacts lawmakers today. But Democrats are standing firm in their positions. They say they will not vote to reopen the government until Republicans work with them to address the rising costs of health care. They're extremely critical of the president for being on another foreign trip during the shutdown, and for the administration giving billions of dollars in bailout to Argentina that could have been used to help Americans during the shutdown.

Take a listen to Democratic Senator Chris Murphy on how he frames all of this.

(BEGIN VIDEO CLIP) SEN. CHRIS MURPHY (D-CT): We have priorities, just like they do. One of our priorities is pretty simple making sure that premiums don't go up by 75 percent on 22 million families this fall.

Now, the reality is, is if they sat down to try to negotiate, we could probably come up with something pretty quickly. The president just announced $20 billion going to bail out the Argentinian economy. For $20 billion, we could open the government back up. That's enough money to relieve a lot of pressure of these premium increases.

(END VIDEO CLIP)

GRAYER: Meanwhile, Republicans are also equally dug in. They say they will not negotiate until Democrats vote to reopen the government. House Speaker Mike Johnson has kept the House out of session since September 19th. Leader Thune says there are no meaningful negotiations going on, otherwise he would have kept senators in over the weekend. We're expecting to hear from Speaker Johnson in the next hour, and we'll see if there are any updates at all from that.

SIDNER: Certainly. You're hearing from people, hard to negotiate if you're not actually there.

Annie Grayer, thank you so much. Appreciate it.

Kate.

BOLDUAN: All right, joining me right now is Republican Congressman Marlin Stutzman of Indiana. He sits on both the House Budget and Financial Services Committees.

It's good to have you here. Thank you so much for being here, Congressman.

Some Republicans -- you heard Annie Grayer and some of her reporting. I just want to go a little bit deeper when it comes to shutdown and what we're hearing from some Republicans talking to CNN about it. How they're becoming more concerned that the government -- that the government shutdown, plus health care subsidies deadlines, is becoming a real problem. David Valadao, a Republican from California, telling CNN this, "I think the reality is, if costs go up under our control, it could have an impact on us. I get that there's some in leadership who don't like hearing it, but there's no denying it. Just watching rates go up and pointing fingers is not what we should be doing in our position."

What do you say to that?

REP. MARLIN STUTZMAN (R-IN): Yes, you know, David's a great friend and, you know, he's right and he's frustrated, just like all of us. You know, we -- House Republicans, we did our job almost a month ago, a little over a month ago, in passing a clean CR. This has been done many times. And unfortunately, on the Senate side, Senator Schumer and the Democrats have decided they're not going to do -- or most of the Democrats have decided they're not going to vote for a clean CR. This is not the way to negotiate. This is not the way to -- to try to find compromise on other issues. This is just simply to keep the government open, to make sure that SBA loans are processed, to make sure that, you know, the orthopedic industry, which I represent parts of in Indiana, have five, ten k's that have applications sitting on a desk somewhere in Washington. This is not the way to negotiate. We've already done our work in the House. Senator Schumer could very quickly, you know, follow Senator -- or Senator Fetterman's lead. I mean that's one thing I've been very impressed with is Senator Fetterman has been willing to call out the nonsense that the Senate Democrats have been doing, keeping the government shutdown, and saying, look, let's open the government back up and then we can negotiate.

BOLDUAN: So, setting aside the kind of stalled nature of that negotiation, what's happening in the interim I want your take on as well.

[09:10:06]

The Department of Agriculture sent out a notice that SNAP benefits are going to run out starting next month, five days from now. Do just -- we just had a disabled Navy veteran on the show this morning and he described what this means for him and his family. He says he depends on food stamps to make ends meet, to keep food on the table for him and the two young boys that he cares for. And he has a message for Washington, for all of you.

Listen to this.

(BEGIN VIDEO CLIP)

JUAN SARO, DISABLED VETERAN AND SNAP RECIPIENT: The world is watching. We need to get this right. I understand there are -- there's divisiveness in politics, but -- but this isn't about politics. This is about priorities. And our priorities should be our citizens and making sure that we have food on the table when that was promised to us.

(END VIDEO CLIP)

BOLDUAN: And part of what he's talking about, Congressman, is he says the administration needs to and should find a way to rework funds, as it has done for other -- other programs, if you will, to keep this program afloat while the government is shut down, while negotiations are or are not taking place.

Do you agree that somehow SNAP needs to be kept afloat?

STUTZMAN: Well, if there's anybody that could figure it out, President Trump, you know, has done everything he can to make sure that the military is paid, that the priorities are taken care of. And this is the thing that I am very frustrated that the -- that Senate Democrats need to realize that it's the vulnerable that are going to be paying the price. In fact, even House Democrat leadership has even said that. Has said that, you know, that people are going to feel pain, but this is their only option, their only time that they're going to have any leverage. And so -- BOLDUAN: So, you -- you would like to see a way for SNAP benefits to be funded? You would support them reworking or find -- using contingency funds because right now the USDA says they are not going to. You'd like to see them change their view on that?

STUTZMAN: Yes. No. No, I'd actually like to see Senate Democrats just vote for the clean CR and none of this has to happen. That's what -- this is so simple.

BOLDUAN: I get that. But in the interim, I'm talking about what could be done while it's not happening. That's what this man is asking for, find a way while it's closed to do what you've done for military members. Do you want that to happen?

STUTZMAN: No. I think this -- I think this man is just simply saying to Washington, get the job done. And the way that that job could be done is for Senate Democrats to vote for a clean CR and all of this is taken care of. Just like that, you know, snap of a finger.

But instead, what's happening is we're seeing the stock market -- and Democrats need to realize, the stock market has been up almost 1,000 points since the shutdown happened. So, there's a lot of people that aren't going to hurt from this, but there's going to be a lot of people that depend on SNAP benefits and on other government programs. But even just keeping the economy moving, And I hope Senate Democrats realize, like, look, this is a losing proposition. Let's just vote to open up the government. Vote for a clean CR. We're going to have to vote for another one to extend it even longer. We can continue to negotiate.

We know there's problems in the health care space. I mean, health care providers and insurance companies are the big profiteers right now. Those are the ones -- and we should be able to agree on that there should be an overhaul of Obamacare. And -- because they're the ones making the money. It's the American people that are suffering from these high cost of premiums.

BOLDUAN: But you -- just -- just to put a fine point on it because what he was speaking to me about is he does want the administration to find contingency funds to keep SNAP afloat while the government is shut down. You do not think they should?

STUTZMAN: No, I -- I think that if that's possible, they should. But -- but I do think that it's going to be difficult. I mean, as a member of Congress, you know, we do vote on the budget. And that's why a clean CR would take care of this problem immediately.

BOLDUAN: Congressman, thank you very much for coming in. Appreciate your time.

Coming up for us, the streets of Jamaica, empty. Mandatory evacuations are underway there as Hurricane Melissa churns closer, and it has now become a category five storm. And it could be the strongest ever to hit that island.

And body camera video shows the moment Baltimore police officers learn a student they confronted and handcuffed did not have a gun, like the schools A.I. security detection systems seem to have suggested. Instead, it was a bag of chips.

Plus, they can be used for more than your spiced lattes, seasonal pies, or jack-o-lanterns. Hundreds of kayakers in Belgium hollow their pumpkins to paddle in an annual pumpkin boat race.

(COMMERCIAL BREAK)

[09:18:34]

BOLDUAN: Breaking news this morning, Hurricane Melissa now a category five storm and posed to become -- poised to become the strongest storm to ever hit the island of Jamaica. Landfall is just hours away. The storm is expected to drop several months worth of rain in a couple of days. Clearly enough to trigger catastrophic flooding and mudslides. And that is the fear.

CNN meteorologist Chris Warren has the track and the timing and an update for us.

What is the latest, Chris?

CHRIS WARREN, CNN METEOROLOGIST: Well, it is still a category five hurricane, Kate. And with this, whether it's a four or a five, it will bring catastrophic winds. And the catastrophic flooding is going to come whether or not it's a one, two, three, four or five. The numbers are wind. And it's a slow moving system. And that's going to play into the rainfall and the amount of rain that falls. More time with the garden hose turned on is going to make for a much bigger mess. And in this case, that mess is dangerous and it is life threatening.

Five, five and four. Catastrophic, catastrophic, catastrophic winds. Still three. When you get to a three, that's devastating. So, devastating winds on the way for eastern Cuba. But it's that rain from one in the morning to one in the afternoon we're going to be seeing some of the worst of the worst. Really, it's going to be dangerous to be outside around dinner time tonight.

So, here's that path, that footprint of rain going across Jamaica. And this is 5:00, and things are going to be in really bad shape by five.

[09:20:03]

And then landfall not happening until somewhere around before sunrise or so. And you can think of landfall as being like halftime. So, we're not even done. I mean we're well into it. After several hours. And then finally it goes off.

So, looking at about 18 hours worth of some of the worst of the worst weather you can imagine. It's going to be a sleepless night for so many people. And to put that in perspective also, that 18 hours, that is like driving from New York to Miami. And imagine that, the mountains making things so much worse. Also, Kate, seeing that storm surge, water is going to have a hard time getting out to the sea.

BOLDUAN: Absolutely. Chris, thank you so much for tracking this for us.

Sara.

SIDNER: We want to take you live to Jamaica. Joining me now is Andrew Reid. He is the general manager of the Island Village Plaza in Ocho Rios, Jamaica.

Thank you so much for being here, sir. You're bringing us outside there. Tell us what you're experiencing at this hour.

ANDREW REID, GENERAL MANAGER, ISLAND VILLAGE SHOPPING PLAZA: Well, so far, it's slightly windy. No rain anymore. And, you know, this is partially rough. But no strong winds as yet. However, of (INAUDIBLE). Everybody is (INAUDIBLE) I can hear the neighbors (ph) hammering. We came outside to do some last minute packing up and putting away stuff.

SIDNER: Yes, you can still certainly see the beauty of Jamaica where you are. But what is your biggest concern as this storm, not a category three, not a category four, a category five storm, enormous in size and speed, what is your biggest worry?

REID: Well, if I may borrow a line from Tennyson's break, break, break. I can hardly utter the thoughts that arise in me, not to mention there's fear here now is for the house, the roof. I live in a great house, (AUDIO GAP), 19th century. The structure is fairly firm. But, you know, the roof, we're worried about the roof. I'm not worried about flooding. Rain might come in, but flooding doesn't bother me. I'm worried about maybe falling trees and -- and the lifted (INAUDIBLE) never experienced a hurricane five category before.

SIDNER: Yes, so often, though, while the wind --

REID: A pretty frightful experience.

SIDNER: Yes, so often while the wind in this case is certainly going to be a major danger, but the flooding also in almost all storms is the thing that is the most deadly.

I want to ask you about your experience during Hurricane Gilbert, if you were there in 1988, because that was the worst by most accounts, hurricane to hit Jamaica, and that was just a category four. What are your -- your thoughts on -- on what happened then and how you recovered? And if you think that recovery after this hurricane is going to be much harder.

REID: In '80, Bucherita (ph) at the hotel called Inani (ph) Beach, what really scared us most of all was the -- the wind. You could hear the wind howling and signs were blowing. You know, persons weren't really ready and prepared for that sort of thing. So, a lot of signs that were left up were blowing and cracked buildings.

The sea came up against the hotel wall, but it was nothing to be worried about. The aftermath of Gilbert was great. People came out and helped to clean up. And I'm sure with this hurricane everybody will get together, the (INAUDIBLE) great suffering, getting the (AUDIO GAP) that people should (INAUDIBLE) with putting in contingency plans. And I'm sure as it's over, we will get together, help each other and get the country going.

SIDNER: Done in such a way as Jamaicans do, coming together.

Andrew Reid, thank you so much. And we're seeing the pictures there. You're not seeing a ton of rain or anything right now, but some light winds, that is expected to certainly change for the worse coming in the morning.

REID: Yes.

SIDNER: Thank you, sir.

Up ahead, the worst staffing for air traffic controllers since the start of the government shutdown, forcing major delays at some of the country's largest airports. Why this may not be the worst. That the worst may still be ahead for travelers.

Also, rescue crews rushing to dive into the Santa Cruz wharf after a car crashes through the dock and plunges into the water. That story and more ahead.

(COMMERCIAL BREAK)

[09:28:53]

SIDNER: Air traffic controllers nationwide will miss their first full paycheck starting tomorrow. We're already seeing major delays at airports across the country this weekend due to air traffic controller shortages. In fact, the shortage hit the highest level since the government shutdown began on October 1st. Understaffed facilities helping to lead to more than 4,000 flight delays nationwide.

CNN's Pete Muntean joins us now.

Pete, you've been waring about this shorting -- this shortage issue for years really now, but this is different. Tell us what you're learning.

PETE MUNTEAN, CNN AVIATION CORRESPONDENT: Well, the government shutdown makes the shortage only worse because it creates an outsized impact. If a controller calls out sick -- remember, they're working without pay, then that can have a ripple effect across the air traffic control system. And the margins are already so, so small.

Here is the latest from the FAA. They just put out a new operations plan for today. And they say there could be shortages of staff at the Newark approach control facility. Also at the approach control facility in Atlanta. So, we could see delays pile up.

This weekend was a real doozy when it came to delays. The worst for staffing problems we have seen since the start of the government shutdown and air traffic controllers began working without pay.

[09:30:05]

Over the weekend, about 50 air traffic control facilities were short staffed. Remember...