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Charges Filed in Baltimore Bridge Collapse; Hegseth Grilled Over Iran; Inflation Spiking; Trump Set to Meet With Xi Jinping. Aired 1-1:30p ET

Aired May 12, 2026 - 13:00   ET

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

[13:00:02]

(BEGIN VIDEOTAPE)

NOA TISHBY, FORMER SPECIAL ENVOY FOR COMBATING ANTISEMITISM AND THE DELEGITIMIZATION OF ISRAEL: We figured this would be an incredible curriculum.

At least four of the eight episodes are very appropriate for a school curriculum. And we looked at the LAUSD, the school board, and we said, wow, it's -- it never recognized Jewish American Heritage Month, which is something that has been proclaimed by every American president since George W. Bush.

And we reached out to the LAUSD, and they worked with us and created this resolution together. And they passed it unanimously, which was incredible. And I encourage every other school board around the country to Acknowledge Jewish American Heritage Month and to teach about Jewish American history and heritage.

And you can go to Eighteen.education and get a lot of material there.

DANA BASH, CNN HOST: Your videos are so good.

TISHBY: Thank you.

BASH: This is so important that you're doing it, and I really appreciate you coming on and explaining it.

TISHBY: Thank you so much for having me. Thank you.

BASH: Thank you, Noa.

(END VIDEOTAPE)

BASH: Thank you for joining INSIDE POLITICS.

"CNN NEWS CENTRAL" starts right now.

BORIS SANCHEZ, CNN HOST: A superpower summit. President Trump heads to Beijing for a critical meeting with Chinese leader Xi Jinping, the trip coming as the Iran cease-fire is on life support and Trump looks to pressure Tehran's most important ally. BRIANNA KEILAR, CNN HOST: Cost crunch. A new CNN poll shows the

rising cost of living is now the top problem facing families across the country, as inflation squeezes household budgets.

And spy shock, a California mayor accused of secretly working as an agent for Beijing. What she's saying now as she pleads guilty to the crime.

We're following these major developing stories and many more, all coming in right here to CNN NEWS CENTRAL.

SANCHEZ: Just minutes from now, President Trump will leave the White House bound for Beijing and a critical face-to-face meeting with President Xi Jinping, tensions between the two global superpowers over the Iran war, Taiwan and tariffs at the forefront.

And, this week, we could learn a lot more about the leverage that China holds over Iran. Earlier, President Trump saying -- quote -- "There are a lot of advantages to us getting along," meaning him and Xi, later adding, "If we didn't get along, you would know about it."

Let's go live to the White House with CNN's Alayna Treene.

Alayna, what more are you hearing about the president's trip?

ALAYNA TREENE, CNN WHITE HOUSE CORRESPONDENT: You know, this is going to be a very high-stakes meeting, Boris.

And I would note as well that this has been on the books for some time. It was actually delayed once and postponed in part because of the ongoing war. But, this time, it is moving ahead despite the war still continuing.

Now, I will tell you, when Trump administration officials had set up this meeting with the Chinese, they wanted this to focus on trade. Of course, throughout 2020 -- '25, I should say, we really saw that bruising trade war between Washington and Beijing take kind of center stage throughout all of the tariffs that we saw President Trump impose.

But both President Donald Trump and Chinese President Xi Jinping kind of entered this fragile truce of sorts last fall. And we know that the White House wants things to remain that way as they head into this very important meeting.

But some of the things I think that we know that they are going to expect, one is their discussions are expected to include kind of the customary haggling over the Chinese purchase or potential Chinese purchases of American products. That includes things like commercial jetliners and soybeans, but also a proposal for a joint board of trade, which could bring government oversight to a lot of the commerce between these two countries.

They are also expected to talk about tariffs. But just pointing to what we have on your screen right now, obviously, the war with Iran, Taiwan arms sales, the case of jailed tycoon Jimmy Lai, all of those expected to come up as well.

And I do want to talk more broadly about two of these big things looming over all of this, again, that war with Iran and also the longstanding dispute over Taiwan. I think a key question, of course, is really what President Trump is looking for in some of his conversations with Xi Jinping over what is happening with Iran.

I would remind you that the Iranian foreign minister, Abbas Araghchi, he was just in China meeting with his counterpart last week. We also know that Russian President Vladimir Putin is expected to visit China just days after President Trump departs.

So, there's a lot that is going on around all of this and really geopolitics taking a very heavy role here, specifically as you look to the relationship that China has with Iran and whether or not the president is hoping they can use their influence to force the Iranians back to the negotiating table in a more meaningful way, Boris.

SANCHEZ: Yes. And we will see what the president says upon his departure set to happen, again, in just minutes.

Alayna Treene, live at the White House, thank you so much -- Brianna.

KEILAR: Defense Secretary Pete Hegseth and Chairman of the Joint Chiefs General Dan Caine are back on the Hill today.

[13:05:01]

Members of the House and Senate Subcommittees on Appropriations are asking them some tough questions about how much the Iran war is costing, what the plan is moving forward, and the current cease-fire.

(BEGIN VIDEO CLIP)

REP. PETE AGUILAR (D-CA): Who are the parties to the cease-fire?

PETE HEGSETH, U.S. DEFENSE SECRETARY: Well, right now, we are in that same cease-fire as of right now.

AGUILAR: That wasn't the question. Who are the parties to the cease- fire?

HEGSETH: Well, it would be the United States and the regime in Iran.

AGUILAR: How do we know that the cease-fire is active or not active without any documentation?

HEGSETH: We know. It's evident. And the cease-fire is in effect.

AGUILAR: Is the theory to create more cease-fires or more projects just to evade the War Powers Act?

HEGSETH: The theory of the entire case is to prevent Iran from having a nuclear weapon.

(END VIDEO CLIP) KEILAR: CNN's Brian Todd is following the hearings today.

A lot of interesting stuff going on.

BRIAN TODD, CNN CORRESPONDENT: Yes.

KEILAR: And, also, I understand that Senator Lisa Murkowski was talking about a $350 billion price tag. It's always been kind of a little unclear, but that's more than we'd heard.

TODD: It's a little more than we'd heard. We also got a new estimate from the comptroller of the Pentagon as to how much the war has cost so far, Brianna.

I'm going to get to that in a second. Some of the more contentious exchanges in the Senate version of these hearings, which came after the House version, were over the cost of the war and whether any strategic success has been achieved.

First to the cost. It really got contentious between Pete Hegseth and Senator Patty Murray, the Democrat from Washington state, when Senator Murray basically accused Hegseth and President Trump of not caring about American families, of taking money away from American families for their childcare and health care in order to pay for the war.

Here's the exchange between Senator Murray and Pete Hegseth on that.

(BEGIN VIDEO CLIP)

HEGSETH: The president has proposed a historic $1.5 trillion budget that will defend the nation and confront threats like Iran, which previous presidents allowed to happen, as Senator Graham pointed out.

SEN. PATTY MURRAY (D-WA): Well, we're...

HEGSETH: Previous administrations said they wanted to take care of this problem, and they did not. And he's doing it.

MURRAY: Your opinion -- the question -- the question in front of this committee, the question in front of the American people is, what are they being asked to give up for this $1.5 trillion?

That's where I was talking about. And, lastly, Mr. Secretary, your budget request cuts through Trump's ramblings and really, to me, makes the truth clear, that you and the president don't value families as much as you value defense contractors.

You want to increase the war budget. Let me finish.

HEGSETH: I meet every family at Dover, OK? Don't tell me we don't care about families. We sure do.

MURRAY: Let me -- Mr. -- Mr. Secretary...

HEGSETH: And we take care of them in every way we possibly can.

(END VIDEO CLIP)

TODD: Now, another contentious exchange came late in the hearing between Democratic Senator Chris Coons and Pete Hegseth over the overall strategic success, or lack thereof, of this war, Senator Coons saying, you have achieved tactical success, but you're on the verge of a strategic loss.

Pete Hegseth got very upset with that characterization, saying, we're 74 days in. It's foolish to characterize this as a strategic loss, Brianna. He basically told Chris Coons, you're undercutting efforts that would otherwise be effective, saying that we have had battlefield successes, we have leverage, and accusing Chris Coons of undercutting this.

But Coons was pressing him on, what's your plan for opening the Strait of Hormuz, militarily or otherwise? I have to say, neither Pete Hegseth nor General Dan Caine had great answers to that question.

KEILAR: Yes, it is a congressional obligation to have oversight, especially of a situation they have not had much input into here.

Brian Todd, thank you so much for monitoring this important hearing for us.

Still to come: some new numbers showing paychecks are no longer keeping up with rising inflation. And new CNN polling out today shows just how Americans are feeling about it. No surprise, they're not feeling so great.

Plus, the Justice Department announcing criminal charges in the deadly 2024 Baltimore bridge collapse. We will tell you who federal prosecutors are going after.

And then later: from the trip of a lifetime to total isolation. New cases of hantavirus connected to that deadly cruise ship outbreak have been detected.

We will have that and much more coming up on CNN NEWS CENTRAL.

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SANCHEZ: So, President Trump promised to make America affordable again on day one in office. But now, for the first time in three years, inflation is actually outpacing wages.

Prices rose another 0.6 percent in April, according to the Bureau of Labor Statistics, driving the annual inflation rate to 3.8 percent. That is the highest since 2023, when the U.S. was still recovering from the post-COVID era spike.

And now the U.S. war with Iran has generated new economic strain. As oil prices surge, Americans are feeling the pinch just about everywhere. Prices are rising for gas, groceries and shelter. And, in a new CNN poll, Americans are venting their frustrations, one telling pollsters: "It's more expensive to exist."

Another says they're 'just staying afloat, instead of getting ahead."

Another consumer frustrated with the situation says: "It should not be like this."

Now, as we approach the midterm elections, it's worth revisiting what Trump promised voters during the 2024 race. Listen.

(BEGIN VIDEO CLIP)

DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Starting the day I take the oath of office, I will rapidly drive prices down and we will make America affordable again.

(CHEERING)

TRUMP: We're going to make it affordable again.

We're going to get the prices down. We have to get them down. It's too much groceries, cars, how -- everything. We're going to get the prices down.

I will end inflation. A vote for Trump means your groceries will be cheaper.

(END VIDEO CLIP)

SANCHEZ: Well, new CNN polling out today shows those same promises could put Republicans at a disadvantage come November. Just 30 percent of those polled approve of the president's handling of the economy, a 14 percent drop from March of last year.

And take a look at this; 73 percent of Americans call current economic conditions poor. Worries about the higher cost of gas are particularly prominent. Trump is underwater with his own party on his handling of gas prices, just 48 percent approval, independents just 15 percent.

[13:15:14]

And when it comes to inflation, Trump is doing relatively well within his own party; 60 percent of Republicans approve of what he's doing to curb prices, but fewer than 20 percent of independents agree, and only 2 percent of Democrats.

Conversely, a staggering 77 percent of those polled say that Trump's prices -- or, rather, his policies have increased prices, everything, the cost of living, while only 8 percent says that he has helped to decrease prices.

Despite all of that, there is some good news for Trump's party as we look to November, because, when asked about which party should lead Congress, those asked had them within the margin of error, showing no clear leader six months out from Election Day.

Still a long way to go, but, Brianna, not a lot of time for the president to turn around feelings regarding the economy.

KEILAR: Yes, certainly not.

Let's look into this a little bit more with Marc Short, the former chief of staff to Vice President Mike Pence. He was also the White House legislative affairs director during the first Trump administration. He's currently the board chair of Advancing American Freedom.

I wonder as you're looking at this CPI number today, 3.8 percent, combined with this record low approval for Trump. What kind of conversations should be happening in the White House right now? What kind do you think might be happening?

MARC SHORT, FORMER CHIEF OF STAFF TO FORMER VICE PRESIDENT MIKE PENCE: Well, look, I think the White House has a lot on the economic front they can still champion, Brianna.

The reality is that the markets until today have been continuing to soar at all-time highs. You continue to -- had a good jobs report. But I think that the policies, the reality is that inflation was already ticking up, I think in large part, because of the president's trade war in the globe even before the Iran war started.

And we hit 3.8 percent today. I know the White House champions that's lower than it peaked during Biden, but it's not like you have gone from 3 percent down. The reality is, it's 3.8 percent above last year. So you're continuing to have inflation spike.

And I think, as Kevin Warsh is getting confirmed today, he's going to have his hands full at the Fed, because I think many have expected a push to have rates lower. This is certainly going to make it a lot harder to lower rates right now.

KEILAR: Well, let's take a look at what is bothering people, what they say is really affecting their finances. The top two issues that people say are having a negative effect on their financial situation, you have right here the war with Iran, huge, right, 75 percent negative, higher tariffs, obviously the China ones, huge here as the president is heading for his meeting with Xi Jinping, 65 percent.

So these are Trump policies, right? You can tie these directly to his policies. Is this self-made, these problems that are being created for people as they're sitting around their kitchen table worrying?

SHORT: Yes, again, I bifurcate the two.

I look at the reality is that, if successful in Iran, you could have generational changes in the Middle East that could really benefit Americans long term and really could help lower energy prices long term. The trade policy, it's not just China.

To be honest, the -- he's continued to lower tariffs on China. It's kind of the global war on trade where you continue to drive up prices and in many cases not able to export goods. And I think a lot of this conversation is political. And reality is that it's in many cases the farmers in the heartland of America who don't have a market to export their goods and they're paying astronomical fertilizer costs right now. And that's where you're seeing a lot of the pain, in the heartland of America.

KEILAR: If he's successful in Iran. That ship may have sailed in a way that a lot of these ships have not sailed, right, which is causing so much of this pain, whether it's fertilizer or diesel or whatnot.

But Susie Wiles last year, when she was talking to "Vanity Fair," she said that Trump needed to talk less about Saudi Arabia, more about the domestic economy. So it's not that this isn't on the radar for those close to him.

Do you think that would have been a better thing for him to pay more attention to?

SHORT: Well, sure.

I mean, Trump's going to talk about a lot of things. He always does. I think that, instead, they should have been basically bracing America to say, look, here's what we can do long term. Here's the benefit to peace. Here's the benefit to Americans' safety.

But, instead, the message has been this will be over in no time. This will be gone in a short time. We will get gas prices down.

KEILAR: The expectations.

SHORT: So, the expectation game, I think, is really where Americans keep expecting their prices to come down. But there's so much supply that's offline right now, Brianna. This isn't going to come down tomorrow, even if the strait is open.

KEILAR: Yes.

SHORT: So I think you're going to continue to see higher energy prices for some time.

KEILAR: And he's -- yes, and the messaging that he's putting out there is that it's going to drop like a rock, which we know it isn't.

So, as you look at the polling and you look at party affiliation, this is really interesting, because take a look at this, how his policies have increased how people are feeling about the economy in their communities. Not surprisingly, 90 percent of Democrats not feeling good about this. It's not too much changed, though, from April.

[13:20:04]

But take a look at this number when you're seeing independents here, 63 percent in April, up to 81 percent now. And even Republicans, you have the majority. I mean, it's almost doubling here, going from 30 to 55 percent.

How much of a blinking red light should that be? SHORT: Well, I think it's a huge one, because I think the two drivers

to the president's election in '24 were the economy and the border.

And so that is the issue that a lot of Americans continue to look and say, look, we count on him to make sure that we're continuing to grow economically. If you're losing Republican and independent support, it's a big challenge.

The only thing we really have going for us is, the Democrats appear to be a bigger mess. But in a midterm -- you know this -- if there's one party in control, it's less about them. It's about your party.

KEILAR: Yes.

SHORT: And it's a referendum on you.

KEILAR: So, in looking at that choice for Congress, no clear leader...

SHORT: Yes.

KEILAR: ... 45 percent Dem, 42 percent Republican. That's within the margin of error, even though Democrats in this are three points ahead.

A lot of polling on congressional preferences, including previous CNN surveys, have largely given Democrats the advantage. But, that said, if you're a Republican, you have really got to be sweating these kinds of numbers, Republicans deeply dissatisfied.

How would you say that Republicans can counter this?

SHORT: Well, I think it's actually in some way surprising the margin is only three points, in light of, as I said, if the primary issue is the border and the economy, you're now underwater on both.

I think, for a lot of Republicans, you can see them look to make Democrats the issue, because I don't think the Democrat positions are popular. But I think that's a big lift, Brianna, because, again, when one party is in control, voters are passing a referendum on you.

So it's hard to make it about them. But I think that's probably what you will see Republican strategy be.

KEILAR: Yes, they just maybe want the alternative, right, a lot of times, whoever the party is in power and not in power.

SHORT: Right.

KEILAR: Marc, thank you so much.

SHORT: Great to see you.

KEILAR: Really appreciate it.

SHORT: Thanks. KEILAR: Still ahead: The Justice Department announces criminal

charges in the deadly collision and collapse of Baltimore's Francis Scott Key Bridge. We're going to talk about who they're going after there next.

And minutes from now, President Trump will leave the White House for a huge meeting, his summit with China's leader, Xi Jinping. We will see if the president perhaps speaks to the press during his departure.

So, stay with us for that.

(COMMERCIAL BREAK)

[13:26:27]

KEILAR: The Justice Department just filed criminal charges against two companies that operated the cargo ship that rammed into Baltimore's Key Bridge way back in 2024.

Six highway workers were killed when the Dali lost power, hit the bridge, and it collapsed into the waters below.

SANCHEZ: Now, federal prosecutors say the ship's operators, along with its technical superintendent, fabricated and directed the fabrication of safety inspections.

Let's get right to CNN's Gabe Cohen.

And, Gabe, you were there after this collapse over two years ago. This is a long time coming.

GABE COHEN, CNN CORRESPONDENT: Yes, Boris.

And I remember the frantic search for those construction workers who were missing in the Potomac River right after the collapse, six of whom were found dead in the water. And as the sun came up on that morning, I also remember just the remarkable scale of the destruction, a little bit of which you're seeing right there.

The Francis Scott Key Bridge just collapsed into the water. And, in those days and weeks and months after, so many people were asking, is there going to be criminal accountability? Are there going to be criminal charges in this case?

And now at least there is some sort of answer for all of those people, with the Department of Justice filing these criminal charges. They have charged Synergy Marine and Synergy Maritime -- those are two foreign companies that own and operate the Dali -- as well as this employee, a 47-year-old Indian national who, as you mentioned, was serving as a technical superintendent for the ship.

The charges include conspiracy, willfully failing to immediately inform the U.S. Coast Guard of a known hazardous condition, obstruction of an agency proceeding, and providing false statements, along with some misdemeanor charges for the companies about polluting the Patapsco River. We heard from some of the investigators who worked on this case just a

little while ago. Here's a bit of what they said.

(BEGIN VIDEO CLIP)

JIMMY PAUL, FBI BALTIMORE SPECIAL AGENT IN CHARGE: The indictment shows that Synergy and Radhakrishnan Karthik Nair repeatedly failed to document, investigate, and report significant safety risks and hazards aboard the Dali. They forged safety inspections and certifications.

They falsely claim the ship was in good working order and then lied to investigators about their actions when they were questioned.

(END VIDEO CLIP)

COHEN: So it's important to remember that, just before the collision, the ship, the Dali, lost power twice. The first time was because of a loose wire, authorities said.

But it's really the second blackout that was the focus of this indictment, because what they are alleging is that the company had rigged up this ship, as well as a couple other ships that they run, with this unapproved fueling pump that was supposed to be able to pump fuel into the ship's generators.

Now, the problem with this pump is that it doesn't automatically kick back on after a blackout. It has to be manually turned back on. They said that didn't happen. It caused the second blackout. They lost propulsion and steering and ultimately collided with the bridge.

But if they had not put that pump on the ship, according to investigators, the collision would never have happened. But to be clear, the -- Synergy Marine, the company that owns this ship, they are pushing back against this.

They say that these charges contradict the findings of the NTSB that we saw just a few months ago, and they say they're going to fight it. It's also not clear if we will ever see an actual court case when it comes to this, because we're talking about these two companies that could face significant financial penalties.

And this Indian national, he's actually believed to be in India right now, and it's not clear if he'd ever be extradited for this. So, we just don't know.

KEILAR: Really interesting to follow.

Gabe, thank you so much.