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Trump Embarks on Trip to Saudi Arabia, Qatar & UAE; Hamas Announces Imminent Release of U.S. Hostage Edan Alexander; Zelenskyy: Ukraine "Ready" for Peace Talk with Putin; Officials: Economics Deals a Top Priority on Trump's Gulf Tour; U.S., China to Drastically Roll Back Tariffs for 90 Days; Trumps Speaks after U.S. and China Announce 90-Day Tariff Truce. Aired 9-10a ET
Aired May 12, 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]
(COMMERCIAL BREAK)
BECKY ANDERSON, CNN HOST, CONNECT THE WORLD: Well, this is the scene in Riyadh where President Trump will be starting his first official foreign
trip since starting his second term. It's 04:00 p.m. here in Riyadh. I'm Becky Anderson, this is "Connect the World".
Also coming up a major trade breakthrough between China and the U.S., leading to a rollback on some tariffs. And the last known living American
hostage set to be released by Hamas. Meanwhile, in Ukraine, President Zelenskyy says he is ready to meet Vladimir Putin for talks.
Well, the stock market in New York opens about 30 minutes from now, and the futures market certainly indicating a surge on the open. The news from
Geneva on U.S.-China trade putting some real fire in the belly of investors. Watch the tech-laden NASDAQ on that open that is less than 30
minutes from now.
More on that at the bottom of the hour. Well less than two hours from now, Donald Trump is scheduled to leave the White House for the first major
international trip of his second term. The U.S. President's first stop will be here in Riyadh. Then he's on to Qatar and the United Arab Emirates.
Mr. Trump took a similar tour of this region at the start of his first term, the White House framing this as an historic return to the Middle
East. He's expecting a warm welcome in all three Gulf states, and the golden opportunity to shore up ties in this region.
(BEGIN VIDEOTAPE)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: This time, they've gotten richer, we've all gotten older. So, I said I'll go if you pay a
trillion dollars, and they've agreed to do that, so I'm going to be going there, and I have a great relationship with them.
ANDERSON (voice-over): It's no secret why the U.S. President has chosen a three stop Golf tour for his first official trip of his second term. First
stop Riyadh, just like in 2017 but while the cast of characters hasn't changed much the region has and so have its priorities. The Kingdom of
Saudi Arabia, socially and economically transforming with its Vision 2030, Giga projects on the horizon.
TRUMP: Thank you very much. Thank you for being here.
MOHAMMED BIN SALMAN, PRIME MINISTER OF SAUDI ARABIA: Thank you, Mr. President.
ANDERSON (voice-over): And Trump's main interlocutor, Mohammed bin Salman, growing more comfortable in his skin as a leader. Though his country is
feeling the pinch of lower oil prices, even as it keeps pumping, keenly aware that it's a Trump priority. And while the Abraham Accords signed in
Trump's first term moved the region towards peace with Israel.
The war in Gaza became a seismic turning point. Saudi Arabia accusing Israel of committing genocide and taking a hard line on normalizing
relations.
FAISAL BIN FARHAN AL SAUD, FOREIGN MINSTER OF SAUDI ARABIA: Normalization with the Kingdom of Saudi Arabia is not just a risk, it is off the table
until we have a resolution to Palestinian statehood.
ANDERSON (voice-over): Doha, Trump's second stop has emerged as a central mediator between Israel and Hamas and across the global stage. Washington
seemingly benefiting from delegating responsibility. It's also fertile ground for business. Qatar finalizing a deal to buy 100 Boeing wide body
planes from Washington during the president's visit, a source tells CNN.
In the UAE, artificial intelligence will be the name of the game. Abu Dhabi is fast becoming a global hub for AI and advanced technology, building its
own large language model and signing multibillion-dollar partnerships with the likes of Microsoft and open AI. Now promising to invest $1.4 trillion
in the United States over the next 10 years and hoping to get access to more Nvidia chips from the U.S. to power its own AI ambitions.
[09:05:00]
ANDERSON: You could argue this is more than just a presidential trip, the Trump family also staking its claim here in Riyadh, a residential and golf
property is in the works. And Eric Trump, the president's son, was also in region ahead of his father's trip here in Dubai, was touting the family's
crypto ventures and announced a billion-dollar branded Trump residential tower.
In Doha, a Golf resort also in the works, and that is garnering public attention as to whether there is a conflict of interest.
ANDERSON (voice-over): The Art of the Deal on full display in the Gulf, which has cemented itself as a key center of gravity for the Trump White
House.
(END VIDEOTAPE)
ANDERSON: Well, joining me now is Ali Shihabi. He's an author and commentator focusing on the politics and economics of Saudi Arabia, and
it's good to have you, Ali.
ALI SHIHABI, AUTHOR AND COMMENTATOR: Good to be here, Becky. Thank you.
ANDERSON: Thank you for being with us. You're an expert on this region, very specifically on Saudi Arabia. Just talk to us about the big picture
here and why it is that Donald Trump sees Saudi, Qatar and the UAE is offering huge advantages for his America First policy.
SHIHABI: Well, look, optics and symbolism are very important in politics, and the fact that the President is coming to Riyadh as his first major
foreign trip says a lot. I think it recognizes Saudi leadership in the region. It recognizes Saudi stature globally, and it recognizes the
solidification of a partnership that has developed with the United States over the last few years.
During his first term, the Biden era was choppy a bit in the beginning, but towards the end of the Biden area, the ties became very close. And
obviously, Mr. Trump coming back in with a history of having close ties with the kingdom helped very much. So, the relationship is on a very solid
footing.
ANDERSON: I often hear people talking about how important it is for the U.S. to recognize Saudi Arabia as a legacy partner. I mean, this is 90
years in the making with the mutually beneficial deal around Aramco, the oil company. Here is it important? Then you're saying that it is clear from
this Trump Administration that the relationship between Saudi and the U.S. is mutually beneficial, that it is both national interests.
SHIHABI: Unquestionably. I mean, first of all, Saudi Arabia has historically and continues to support the dollar as a major global currency
in trade, by insisting that oil trade take place in the dollar. This is a very important boost to the status of the dollar. The kingdom has
tremendous investments in America.
It's a major, one of the largest, if not the largest, buyer of arms from the United States. The Americans are major investors in Saudi Arabia. This
visit, there will be a signing of multiple agreements, both ways, Saudi investment in America and American investment in the kingdom, and a number
of joint ventures between Saudi and U.S. companies.
So, it really shows how close this relationship has become and how coordinated Saudi Arabia and the U.S. are really with many of the policies
that they are carrying out jointly in the region.
ANDERSON: One win that Trump is not likely to get, almost definitely not going to get, is normalization between Saudi Arabia and Israel. This is a
key strategic pillar for Donald Trump as part of the Abraham Accords.
SHIHABI: Yeah.
ANDERSON: Just explain where we are at with that.
SHIHABI: No, I mean, that's not going to happen. And the reason that's not happening is there is no partner on the Israeli side. The Israeli
government showing no interest in taking any steps. The kingdom has been very clear, and in the voice of the crown prince himself, that
normalization will not take place unless there is a Palestinian state with Jerusalem as its capital.
The Israelis are far from sending any signals in that regard. And despite the eagerness of the Trump Administration to push the kingdom for, the
kingdom is steadfast in its position that it will not move towards normalization, unless and until those steps begin to emerge.
ANDERSON: I want you to stay with me. This is a kingdom transformed since 2017 when Donald Trump was last year. This is a region to a degree,
transformed with the rapprochement between Saudi Arabia and Iran and various other sort of stories going on around this region, not least the
change in Syria at this point.
SHIHABI: Yeah.
ANDERSON: Stay with me as we move through this hour, and we'll further discuss where we are at and where we are headed.
[09:10:00]
Well, President Donald Trump's trip to the Middle East this week comes as the U.S. and China tout a major breakthrough in trade talks between the
world's two largest economies. Just hours ago, both sides agreed to drastically roll back tariffs for 90 days after a weekend of Marathon trade
negotiations in Geneva, Switzerland.
In a statement, both said they recognized, quote, the importance of a sustainable, long term and mutually beneficial economic and trade
relationship. CNN's Kate Bolduan asked Trump Administration Official Kevin Hassett, how this temporary deal came together. Have a listen.
(BEGIN VIDEOTAPE)
KEVIN HASSETT, DIRECTOR OF WHITE HOUSE ECONOMIC COUNCIL: I think it's actually quite similar to the things that we've been seeing in the other
negotiations. We actually have a fresh start with China. That's the way to think about these negotiations that we've come in with these reciprocal
tariffs.
We described the non-tariff barriers and tariffs that disadvantage American workers and folks are coming to the table, and it's really stunning how
quickly they're moving and how dramatic the changes are. Imagine we're selling beef in the U.K. again, and China has the 10 percent tariff,
reciprocal tariff that we're charging the U.K.
All of this has happened because of President Trump's leadership. He's shown people that, look, we're not going to stand for this ridiculous
behavior that we've been observing over the years. But then people come in and say, yeah, you got us. And then they work out something that's good for
both countries.
And so, I think it's really a very historic, fresh start in the relationship between the U.S. and China. Given how much movement there was
over the weekend.
KATE BOLDUAN, CNN ANCHOR: What needs to happen to make sure that tariffs don't go back to, you know, 145 percent at the end of the 90 days?
HASSETT: Right. Well, that will be something that will be negotiated mostly with Jamieson Greer at the USTR that we're going to go through now, this is
obviously two days' work, and there's 90 days more work to do to make sure that we land the plane. But, you know, the plane is right there, over the
runway.
I don't think that there's much hope of people who think that this is going to go back, this is absolutely a sound deal. And most importantly, it's a
thing that you didn't cover, that there are all these things, both from the U.S. to China and China to the U.S. that were kind of gummed up and stuck,
perhaps on ships going back and so on.
And all of that is cleared up now. And so, the potential for supply disruptions from China, affecting magnets in the U.S. and so on. All of
that stuff is cleared up by this really historic negotiation.
BOLDUAN: We had a Democratic Congressman, Jake Auchincloss, was on just last hour. I want to play for you his reaction to the news of this 90-day
de-escalation.
REP. JAKE AUCHINCLOSS (D-MA): You got to give credit to Trump as a marketer. He creates uncertainty and havoc by raising tariffs and then
claims victory when he lowers the tariffs that he himself put in place, right? All this does is extend uncertainty for another 90 days.
BOLDUAN: What do you say to that, Kevin?
HASSETT: No, I disagree completely. I think that if you look at the U.K. deal, and if you look at the text of it, I don't think anyone saying, oh,
what's going to happen down the road. I think that you can see that we've really reached equilibrium agreement. Now it's true that we had two days of
negotiation, and now there's more paperwork to be flowing and to sign off on both sides and so on.
And so, the amount of clarity we have with the U.K. might take a few more days, but this is a historic victory for President Trump. And the bottom
line is, if you start from a world where our countries are getting abused, our workers are getting abused by foreign countries because they're not
allowing us to sell their products into those countries.
Then if you do anything that might change the status quo, then that's going to add to uncertainty. But the uncertainty is on the right side of the
American worker, because ultimately, if the uncertainty works, then you move to a better place. So that's what we're seeing in country after
country after country.
We're moving to a better place. We're getting fresh starts. We're putting American workers first.
BOLDUAN: Lutnick said that the 10 percent is now baseline. Is no country going to see a tariff rate of less than 10 percent in any of these deals?
HASSETT: That will be up to President Trump. That will be up to President Trump.
BOLDUAN: Would you be -- well, if Lutnick says it, do you think that that's the case?
HASSETT: You know, there are some products that perhaps will have exclusions and so on, and maybe some countries have a lot of those
products, but in the end, we'll see how the dust settles. But 10 percent is the anchor tariff right now for everybody, yes.
(END VIDEOTAPE)
ANDERSON: Well, right now we are awaiting word that the last known, living American hostage in Gaza has been freed. When Hamas announced the imminent
release of Eden Alexander. It said the decision was part of steps toward securing a ceasefire deal.
U.S. President Donald Trump described the agreement as quote, a step taken in good faith. For Jeremy Diamond is in Tel Aviv Hostages Square. Kylie
Atwood is in Washington.
[09:15:00]
Jeremy, what are we expecting to happen next?
JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, we have actually just learned from an Israeli official that Eden Alexander is expected to be
released by Hamas at 06:30 p.m. local time. That's about two hours from now. His mother, Yael Alexander landed in Israel after flying from the
United States alongside Adam Boehler, President Trump's hostage envoy.
They then took a helicopter and are now waiting at the Re'im military base along the Gaza border, which is where we expect that Red Cross officials
will take Eden Alexander, once he is released by Hamas, and drive him into the custody of the Israeli military where he will finally be reunited with
his mother after more than 19 months of captivity.
This negotiation, of course totally bypassing the Israeli government as the United States worked on this agreement through the Qatari and Egyptian
mediators and reached this deal, which is being viewed as a show of good faith in order to try and jump start broader negotiations to reach a
ceasefire and to see the release of more hostages from the Gaza Strip.
And indeed, I spoke with a source familiar with the matter, who told me that that is indeed the intention to go directly into negotiations between
Israel and Hamas to secure a new ceasefire here. So there certainly is a sense of momentum from some of the families and the hostages who we have
spoken to today.
And a lot of pressure likely to be brought to bear by the United States on Israel in order to achieve a new agreement in the coming days or weeks,
Becky.
ANDERSON: Kylie, let me bring you in at this point. Are you getting indications from the administration that they will step up pressure on
Benjamin Netanyahu for a ceasefire at this point to end this war?
KYLIE ATWOOD, CNN U.S. SECURITY CORRESPONDENT: Well, the fact that they secured this deal on its own is stepping up pressure by the Trump
Administration here, being able to do a deal with Hamas without involving Israel in those conversations over the last few days already puts pressure
on Israel.
The single only American Israeli who is still being held by Hamas, now being released is a major victory for the Trump Administration. Obviously,
is welcome news for the family of Alexander. And so, we'll watch and see how this develops over the course of the next few days, particularly as we
are hearing very different messages from President Trump and Prime Minister Netanyahu about what this release will actually prompt.
With Trump saying that he is hopeful that it will be the final step towards an actual conversation, intensive talks, to get an end to this conflict,
and Netanyahu saying that Israel is not committed to a ceasefire, negotiations will continue under fire. We'll watch how those dynamic plays
out, particularly as President Trump is embarking.
As you guys have been covering, on his first major international trip to the region where he is meeting with Qataris, Emiratis, folks from Saudi
Arabia, and so we'll watch and see what kind of pressure he continues to put on Israel in those conversations.
ANDERSON: And Kylie, Steve Witkoff has been leading many of the Trump Administration's sort of diplomatic efforts, and we know he was behind the
success in getting a ceasefire agreed back in January. Of course, he was just in Oman for talks with Iran. What did we see from those talks this
weekend, ahead of what is such a big trip to the region?
ATWOOD: Well, notably, after those talks concluded, there is the expectation that those talks are going to continue. So that is forward
momentum in and of itself, to try and strike this Iran nuclear deal that the Trump Administration has said that they want. But the devil is in the
details, Becky, and those are the details that we really don't know yet, right now.
We don't know the specifics of what is being discussed, what the contours of this deal could look like. But of course, Steve Witkoff has been at the
table talking with his Iranian counterparts, which is a major feat, frankly, in trying to drive forth that deal.
And we'll watch and see what these conversations look like with the U.S. allies in the region with regard to this deal, because they will have
perspectives that they will share with President Trump, and when President Trump hears things from folks that he is close with, that directly impacts
how he feels about ongoing negotiations.
ANDERSON: We've been talking about how this is a region change, certainly a country transformed, that President Trump will arrive in tomorrow. Also, a
region changes, with the Saudi Arabians talking to a degree, normalizing relations, as it were, with the Iranians.
[09:20:00]
We know the Foreign Minister of Iran was here in the past couple of days, just discussing what's been going on with those talks and the U.S. keeping
Riyadh informed about this, and that is very different from the way these talks came together back in 2015 with the JCPOA, where this region, very
specifically, Riyadh, was really iced out of any seat at the table or any ear at the table.
So again, things have changed a different region that President Trump is on his way to Tuesday. Well, still to come. Thank you. Ukraine's President
says he is ready to meet his Russian counterpart for direct talks on the war in Ukraine. We'll have a live report from Kyiv, up next.
(COMMERCIAL BREAK)
ANDERSON: Well, Ukraine's President says he is ready to meet with Vladimir Putin after the Russian President proposed holding direct talks in Turkey
on Thursday this week. Well, Ukraine and its European allies had wanted the Russian President to agree to an immediate, 30-day ceasefire before
starting talks.
Social media post by U.S. President Donald Trump demanding they, quote, have the meeting now may have derailed that. Well, if it goes ahead, it
will be the first meeting between the two leaders since Russia's full-scale invasion of Ukraine back in 2022. Well, our Chief International Security
Correspondent, Nick Paton Walsh, is in Kyiv.
We saw, Nick a lot of movement this weekend from the White House and Ukraine's European allies. And in response, aid response, at least from
Russia. Just break it all down. How did we get where we are today?
NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT: It's important to put all of this in the context of what happened on Saturday,
where four key European powers stood alongside Ukraine's president, Volodymyr Zelenskyy, and demanded a ceasefire that seems. They wanted to
begin at midnight, the one just behind me during today for 30 full days.
Now that was, as you say, brushed aside by Vladimir Putin. He did not respond to it directly, and instead proposed a meeting in Istanbul on
Thursday between Russia and Ukrainian officials, causing President Trump, who had initially responded positively to that first Putin message to then
later suggest that Putin didn't want to ceasefire, and indeed that Zelenskyy should accept the meeting.
That in turn that President Zelenskyy to say he would go to Istanbul personally for that Thursday meeting. Putin never said he wanted a direct
face to face meeting with Zelenskyy. And so, we've seen this diplomatic process escalate enormously. And essentially at this point, it seems, leave
the demand for a 30-day ceasefire somewhat behind them now.
There are indications from European officials today that they still want to see a ceasefire. Indeed, when Zelenskyy spoke to the pope, he suggested it
could still happen potentially today.
[09:25:00]
What's missing from all of this, though, is the support that Europe seemed to think it had when it stood here on Saturday from the White House. The
White House has, instead, it seems, picked up the narrative of the Kremlin again and now focusing on this Istanbul meeting between Zelenskyy and
Putin.
Will there be sanctions for the failure of Russia to get behind this idea of a 30-day ceasefire? Unclear at this point, particularly if the U.S.
would support that, Becky.
ANDERSON: It's good to have you Nick, thank you. Still to come. President Trump departs in the coming hours for a visit here to Saudi Arabia and two
others of the world cash rich nations. It is a chance to prove his strength as a deal maker on the global stage. That's the perspective from the White
House. A look at the perspective here and what else is at stake is just ahead.
(COMMERCIAL BREAK)
ANDERSON: Welcome back. I'm Becky Anderson in Riyadh in Saudi Arabia. You are watching a special edition of "Connect the World". These are your
headlines. The U.S. and China have agreed to drastically roll back tariffs on each other's goods for at least 90 days.
Now, this breakthrough came after marathon negotiations in Switzerland over the weekend. U.S. officials say neither side wants to, quote, decouple as
trading partners. U.S. stock futures surged on the news, and we will check the numbers shortly as trading gets underway.
Eden Alexander, last known living American hostage in Gaza is expected to be released in about two hours, according to an Israeli official. U.S.
President Donald Trump called the decision by Hamas to free Alexander an act of good faith towards ending the war.
Israeli Prime Minister Benjamin Netanyahu says Israel is not committed to a ceasefire in exchange for Alexander's release after some of the worst
fighting in decades in their dispute over Kashmir, signs of normalcy along the India-Pakistan border continue today. Both sides say they are committed
to Saturday's U.S. brokered ceasefire.
[09:30:00]
Those instrumental in the truce are urging face to face negotiations. That is the opening bell on Wall Street. And do expect these markets to come out
of the gate today. Investors, certainly in U.S. stock futures keenly aware that the U.S.-China trade news out of Geneva over the weekend.
The fact that there has been substantial progress, according to the U.S. side, is really put some fire in the belly of investors earlier, and as
these markets open now, you can see that is being translated onto the indices as Wall Street opens for business. And a big surge in crude oil
prices today, after the U.S. and China agreed to temporarily slash those tariffs on each other over the weekend.
The move raising hopes of an end to the trade war between the two, world's two largest oil consumers. Oil prices had plunged to the lowest level in
four years earlier this month amid global economic and recession fears. Well today's price though, this jump comes amid a gloomy prediction for
America's oil industry.
A new report from S&P projects U.S. oil production will shrink in 2026. We're here in Riyadh. President Trump set to embark soon on his first major
international trip of his second term, and he will arrive here for the first stop in the kingdom. On Tuesday, where he is expected to meet with
the Saudi Crown Prince Mohammed bin Salman, before attending a summit of Gulf leaders on Wednesday.
It will be followed by visits to Qatar and neighboring United Arab Emirates. All three countries have pledged to invest heavily in the
American economy and indeed continue to buy U.S. weapons systems. Will Ali Shihabi is back with us. He's an author and commentator on the economics
and politics of Saudi Arabia.
Probably forgot more about Saudi Arabia than most of us will ever know. Ali, it's good to have you. Let's pick up on oil prices. Of course, this is
a key point between the kingdom and the U.S. Donald Trump wants lower oil prices, and that was part of his sort of election mandate to a degree the
kingdom needs to finance.
SHIHABI: Yeah.
ANDERSON: What is this very ambitious Vision 2030, and even though it says, it's not dependent on oil at any single price. Clearly, a higher oil price
is better. How does Washington and Riyadh Square what seems to be a quite sort of contentious curve there, and ensure that the relationship between
the two is mutually beneficial and in both countries' national interests.
SHIHABI: Well, look, oil is the lifeblood of Saudi Arabia. So that comes first, and the kingdom has to make sure that it gets as good a price for
its major commodity as possible. Now, the kingdom has always taken an approach that it wants stable oil prices. It doesn't want extra high oil
prices, and it has always worked to temper very high oil prices.
It so happens that at this period of time, the kingdom is concerned about cheating in OPEC, and hence increasing production to grab back market share
from some of the cheaters, and that has brought the price of oil down, which meets the objectives of the Trump Administration also.
So, there is happily a meeting, if you want, of interest. But ultimately, the kingdom has to look at its oil strategy as a fundamental economic
underpinning of what it does, and that is the priority.
ANDERSON: As it diversifies its economy way --
SHIHABI: It is working --
ANDERSON: -- from a reliance --
SHIHABI: I mean it's working to diversify, but still, it is heavily reliant on oil.
ANDERSON: Yeah. Let's talk about the economics of Saudi Arabia right now. More broadly, how far have they come, and what do they still need to
overcome? I mean, this is a place transform since Donald Trump's last visit here in 2017. This is an economy transformed, as well as a society
transform.
But it's still an awful lot of work to go four, five years out from that very ambitious sort of 2030 vision, which was in sort of everybody's cross
hairs, as it were.
SHIHABI: Well, President Trump came in 2017 at the very early stages of a new era, really, which was King Salman coming to the throne and Prince
Mohammed bin Salman coming to the leadership of the government, really.
[09:35:00]
And since then, which is nearly a decade, about 9 years, or 8 years since that began. The kingdom has gone through, first of all, a social and
cultural revolution. Women have been empowered in a way unimaginable 10 years ago, and you can see that just by walking around and see today that
Saudi Arabia is very much a normal country by international standards in the way that women integrate into public life, into the workforce and into
all aspects, including the military.
Women are joining the military now. So, on top of that, there's been a process of economic restructuring. First of all, there was trying to reduce
waste as a result of oil over reliance on oil. So, subsidies, which were utility subsidies or water subsidies or energy subsidies have been reduced
dramatically.
So, there's less wastage, there's less dependency on this to on the government budget to maintain these subsidies, while at the same time, the
government has gone out and put a sort of social security net for the more vulnerable elements of society. So, there is a program out there for the
more vulnerable elements of society to get aid on a continuous basis.
Now, having said that, the government has also really initiated, if you want, as a venture capitalist, a number of major projects across the
kingdom, industry, entertainment, tourism, and, you know, in a way, it's like a venture capitalist putting chips on many numbers.
ANDERSON: There are big bets being made -- being made.
SHIHABI: There are big bets being made, but you don't need all of them to work. You need a few of them to work, and once you get a feel of what those
ones those are working, you will be able then to double down on those bets.
ANDERSON: This project will only work, or certainly will only be as successful as this country hopes it will be. You know, with its Saudi first
policy, unashamedly, unapologetically, just like the UAE has a sort of UAE first policy. These economic, sort of ambitious economic projects, will
only be successful if this region is successful.
If we see the sort of de-escalation that is being sought by Riyadh and by the UAE and others, economic integration around this region. And if these
projects can be successful, you know, those I speak to in the region say that could cascade around the region.
SHIHABI: Undoubtedly.
ANDERSON: And this is a region fundamentally change, as far as relationships are concerned.
SHIHABI: Very much so.
ANDERSON: On the ground since 2017, Iran, for example.
SHIHABI: Very much so. Today, the Iranian Foreign Minister was here a day or so ago to brief the Saudi Foreign Minister on the latest developments in
talks with the United States.
ANDERSON: Unimaginable, back in 2015.
SHIHABI: Unprecedented, really. So, there's a level of communication and coordination with Iran that hasn't been there for a very, very long time.
ANDERSON: Why does that matter?
SHIHABI: It matters because Iran has been a major disruptor in the region. And the hope is, and obviously, people will look to Iran's actions, not so
much Iran's statements, but they will look to Iran's actions in the way that it manages its proxies, in the way that it deals with Yemen, for
example.
And the Iranians have promised to play a more positive role, and they have said that they want to start to look more internally at building up the
human development index, if you want, of their people.
ANDERSON: What do you make finally, Ali of Donald Trump's win, if you want to call it that, on a ceasefire with the Houthis. These talks ongoing,
currently hosted by Oman between the U.S. and Iran, the brokering of the freeing of this last hostage, Steve Witkoff has been massively involved in
trying to broker a more long-term ceasefire and hostage deal for Gaza.
It does certainly seem today as if the U.S. is freezing Israel out of some of what it would otherwise, or usually be discussing with Israel and it's
going it alone. These appear to be, at least on the surface, unilateral decisions by the United States. What do you make of Donald Trump's policy
and efforts in this region at present, as it tries to move beyond conflict.
SHIHABI: Well, President Trump is a doer, and you know, he has taken action to try and free up the Red Sea, and he has been quite -- vehement.
ANDERSON: -- going to work.
[09:40:00]
SHIHABI: Well, we'll see. But, I mean, he has certainly, you know, inflicted a lot of pain on the Houthis for them to think twice about
whether they want to continue this sort of strategy. He's also that has sent a message to Iran, and you know, we would all like to see Iran feel
that they have a stake in the status quo.
And they have a stake in an improved economic environment, which they can benefit from. So, I think the fact that he's given the Iranians a channel
of communication, that he's working on a nuclear deal, that he's communicating with them, even on things like the Houthis, are all very
positive indicators.
And we would just hope that the Iranians take advantage of that and come back into the fold, really, of nations that want to live together in peace
and in economic cooperation, rather than in conflict.
ANDERSON: This is at a time when Iranian influence, many would argue around this region, and even Iranian officials that I've spoken to myself know
that its influence is on the raid, on the wane. You know, Hamas, Hezbollah destroyed in Lebanon, or all but destroyed in Lebanon.
Syria no longer it's sort of backyard for destabilization around this region, the U.S. ring fencing to a degree Houthi action in the Red Sea. I
wonder what these other files, including Syria, mean for Saudi. Can you just finally explain how important it is and why it is that the Saudis will
take, or are taking, such a critical role in, at least in principle, pushing for reconstruction and support for --
SHIHABI: The Syrian regime, absolutely, the kingdom is giving the new Syrian leadership the benefit of the doubt. It's been a huge development
that the Assad regime went and that Syria stopped being a playground for the Iranian Revolutionary Guard. And I think based on that, and based on
the attitude of the new Syrian government, which has been saying all the right things and showing that it wants to reintegrate back with the world.
The kingdom has been pushing the U.S. to remove sanctions. Has been working with its Gulf partners also to help Syria financially and with hopes very
much that the Trump Administration will reduce, if not eliminate, the sanctions so that the Syrians can start to rebuild. It's really very, very
important for regional stability to cross that red line.
ANDERSON: And that regional stability will be discussed at the U.S.-Gulf summit tomorrow, on Wednesday.
SHIHABI: Wednesday, yeah.
ANDERSON: Of course, that is the U.S. with GCC leaders. They will also talk business. Ahead of that, the Saudi-U.S. investment forum, we are expecting
to hear from the Crown Prince Mohammed bin Salman at that and from the U.S. President himself that those will be key speeches --
SHIHABI: Interesting times.
ANDERSON: These are certainly interesting times. It's always good to have you.
SHIHABI: Thank you --
ANDERSON: Thank you.
SHIHABI: It's a pleasure.
ANDERSON: Well, still to come, U.S. and China touting substantial progress in trade talks. We're following global reaction to how the markets are
responding, that is up next.
(COMMERCIAL BREAK)
[09:45:00]
ANDERSON: Well, the U.S. and China, touting a major breakthrough in trade talks. Both sides agreed to drastically roll back tariffs for 90 days after
a weekend of marathon trade negotiations in Geneva in Switzerland. And these mutual tariff revisions will be imposed by Wednesday. Here's more
from the U.S., Treasury Secretary.
(BEGIN VIDEO CLIP)
SCOTT BESSENT, U.S. TREASURY SECRETARY: President Trump, Party Chairman Xi, they have a good relationship, but that the nature of what has happened
since April 2nd could have been avoided if we had had this kind of mechanism in place, and I believe it is in place now. I think we leave
today with a process that will move forward. And again, great mutual respect for our Chinese counterparts, I believe they showed us the same.
(END VIDEO CLIP)
ANDERSON: Well, CNN's Marc Stewart, following these developments for us from Beijing. Mark, what can you tell us about this deal and how the global
markets are reacting to this news?
MARC STEWART, CNN CORRESPONDENT: Yeah. Hi there. Becky, I think there's a few things at play. First of all, this all came about because of one
respect. China had made it clear. It felt like it was being bullied by the United States, but after a number of overtures from Washington, Beijing
felt the time was right. This neutral setting of Switzerland, Geneva was set in place, and so these talks progressed.
So that's a big part of it. The other issue here is economics. We have seen what has happened to markets around the world. We have seen the concern
about supply chain shortages in the United States. We have seen concerns here in Beijing, here in China, about how this is going to impact
manufacturing, which is such a still a big part of the economy.
So, there was this reality check in place, and I think that both sides felt the time was right to do something further. Now, as we were talking about
markets, markets like what they are seeing so far. Trading underway in the U.S. for just about 15 minutes so far, but if we look at the big boards, we
are seeing gains across all of the major indexes in the United States, including the S&P 500 that's so important for people and their retirement
accounts, the tech heavy NASDAQ also seen leads as well as the DOW.
So, this is the kind of response that Washington and the world wanted to see. As we know, traders have been craving for some more so of positivity,
some roadmap for the future, and here we are. But I also want to say this enthusiasm is also tempered. We have seen in the past, trade talks start,
things get rocky, they break off.
So, we are seeing a lot of caution from Beijing. We are certainly hearing some positive statements, but, Becky, the response also is very much
guarded from Chinese officials.
ANDERSON: So, I guess this begs the question, what happens next? We've got this sort of detail, as explained by Scott Bessent and his top trade
negotiator today. We know that there is this rollback of some tariffs, and we know that investors have sort of come out of the gate, certainly in the
U.S. markets, hoping that this will provide some sort of clarity, some certainty in what are otherwise very uncertain times around these tariffs
and trade policy.
But to your mind, Marc, and you've got a real background in business and finance. Should investors be confident --
STEWART: Well, I think --
ANDERSON: That we are facing more certainty going forward? I wonder.
[09:50:00]
STEWART: Well, I think the big point to make in all of this is that there is now a channel in place, a mechanism in place to have these
conversations, that was lacking before. We know that the U.S. and China have military channels. They have some diplomatic channels in place, but
there wasn't something necessarily dedicated to these economic issues.
So now that is in place. There is the ability to move forward, of course, the markets, of course, businesses, big and small, do want some definitive
decisions to be made. The feeling is that it will happen in time. The focus, I think, right now, is the fact that there has just been this
mechanism, this vehicle for conversation to take place, that was lacking before, and this commitment from both sides to have these very difficult
conversations.
ANDERSON: OK.
STEWART: Again, ideal mutual respect --
ANDERSON: Marc, I'm going to jump in on -- U.S. President Donald Trump is holding a news conference right now with Health and Human Services
Secretary Robert F. Kennedy Jr., just before he leaves for the Middle East. Let's listen in.
TRUMP: -- strength, the wisdom and fortitude to fully know and to understand the gravity of the situation. And we helped a lot, and we helped
also with trade. I said, come on, we're going to do a lot of trade with you guys. Let's stop it. Let's stop it. If you stop it, we're doing trade. If
you don't stop it, we're not going to do any trade.
People have never really used trade the way I used it, that, I can tell you, and all of a sudden, they said, I think we're going to stop. And they
have, and they did it for a lot of reasons, but trade is a big one. We're going to do a lot of trade with Pakistan. We're going to do a lot of trade
with India.
We're negotiating with India right now. We're going to be soon, negotiating with Pakistan, and we stopped a nuclear conflict. I think it would have --
it could have been a bad nuclear war. Millions of people could have been killed. So, I'm very proud of that. I also want to thank Vice President
Vance and Secretary of State Rubio for their work and efforts.
They worked very hard on that. We also, as you know, created a situation where the Houthis, for the first time ever have ceased firing, and they've
let it be known that they're not going to be firing at American ships anymore, not going to be firing at Americans anymore. This was a heavy
barrage that lasted for approximately 50 days.
And as you know, they've been in war essentially for forever, but over the last 10 years, they've been very difficult for other countries. Nobody was
able to do what we did, but they stopped, and we take their word for it, they -- their surrogates and them directly said, we don't want to do this
anymore. And so, we were satisfied with that.
In addition, yesterday, we achieved a total reset with China after productive talks in Geneva, both sides now agree to reduce the tariffs
imposed after April 2 to 10 percent for 90 days as negotiators continue on the larger structural issues. And I want to tell you that a couple of
things.
First of all, that doesn't include the tariffs that are already on, that are tariffs, and it doesn't include tariffs on cars, steel, aluminum,
things such as that, or tariffs that may be imposed on pharmaceuticals, because we want to bring the pharmaceutical businesses back to the United
States, and they're already starting to come back now based on tariffs because they don't want to pay 25, 50, or 100 percent tariffs.
So, they're moving them back to the United States. I spoke to Tim Cook this morning, and he's going to -- I think, even up his numbers, $500 billion
he's going to be building a lot of plants in the United States for Apple. And we look forward to that. I really do look forward to that.
But the talks in Geneva were very friendly. The relationship is very good. We're not looking to hurt China. China was being hurt very badly. They were
closing up factories. They were having a lot of unrest, and they were very happy to be able to do something with us, and the relationship is very,
very good.
I'll speak to President Xi maybe at the end of the week. We have some other things we're doing, but one of the biggest things that we're doing, and I
don't know if people realize this, but we made a great deal with China, great trade deal, but it was a much bigger deal originally, and then they
canceled it right in the last day.
Some of you, faces, I remember, were there when that happened. I remember you and we had a deal where they opened up their country to trade with the
United States.
[09:55:00]
And they took that away at the last moment, and then I canceled the whole thing. And then six months later, we ended up doing a smaller deal, but it
was a big deal. Was $50 billion worth of product that they were going to purchase from our farmers, et cetera. And we agreed to that people thought
it was 15, because they were doing 15.
We made it 50 because I misunderstood the 15. I thought they said. I said, you got to get 50, because when I asked, if you remember the story, when I
asked, what are we doing with them, my Secretary of Agriculture at the time, Sonny Perdue, said, sir, it's about 15 million, and we're asking for
15.
And I thought he said 50. So, I said -- so they came back with the deal at 15. And I said, No way. I want 50, because you said 50. They said, sir, we
didn't say that anyway. Bottom line, I said, go back and ask for 50. And they gave us 50, and they were honoring the deal.
And we would call them up a lot for the corn and for the wheat and for everything. They were honoring the deal. And then when Biden got in, they
no longer honored the deal. There was nobody to call. I would call on an average of once every two weeks to say, come on, you have to speed it up a
little bit.
And our farmers were doing great. I said to him, buy more land and bigger tractors, if you remember, that's what happened. But the deal was a very
good deal. But the best part of the deal was that we opened up China. China agreed to open itself up to American business, to go in.
And it would have been a great thing. I think for China, they would be able to see things that they haven't seen. They would be able to buy products
that they have never been able to buy. Would have been great for American business. I think it would have brought unity between China, better unity
between China and the United States.
And the bottom line is that they canceled it the last day we were all set to sign it. And I went a little bit angry. I got a little angry. I said
they canceled the deal. The deal was done. It was all ready to be signed. And people went over, they came back to me, sir, they don't want to sign
the opening up China.
Well, the biggest thing that we're discussing is the opening up China, and they've agreed to do that, but it's going to take a while to paper it. You
know, that's not the easiest thing to paper, but that's the single I think to me, some people would disagree. Some people would say we get a lot of
money with tariffs or whatever.
But you know, especially when you add what we already have, because remember, we're already getting the 50 percent on steel and different
things, that's not included in these numbers. So, you can add that, but the biggest thing to me is the opening up. It would be -- I think it would be
fantastic for our businesses if we could go in and compete and compete with China, it would be a lot of jobs for China.
It would be, I think, at a time when they can, frankly, use the jobs, and that's what we're talking about. So that's a very, very important element
to add. So, when Scott, I watched him speak the other day, and I think he didn't want to say it, but I said it's OK to say it. Look, if we don't get
it, we don't get it, but if we don't get it, it won't be a positive thing.
But if we do get it, I think it's maybe the most important thing to happen, because if you think about it, we opened up our country to China. They
come. We don't have very few restrictions, and they didn't open their country to us. Never made sense to me. It's not fair. And they've agreed to
open China, fully open China, and I think it's going to be fantastic for China.
I think it's going to be fantastic for us, and I think it's going to be great for unification and peace. China will also suspend and remove all of
its non-monetary barriers. They've agreed to do that. Well, they're very numerous, but again, to me, the biggest thing that came out of that meeting
is they've agreed now we have to get it papered, but they've agreed to open up China.
Going to be great for everybody. And third, I'm very happy to announce that Eden Alexander, an American citizen who, until recently, most thought was
no longer living, thought was dead, is going to be released in about two hours actually, and he's going to be released before the eyes of Steve
Witkoff, who has done a fantastic job.
I just, you know, I know a lot of people, they have a lot of talent. I know Steve had a lot of talent, but I know a lot of people had a lot of talent,
but I had, there's one that I thought had a special way about him, special personality.
Aside from being a good deal maker, had a special way about him, and it was Steve knew very little about the subject matter who does but he learned it
in about two hours, and he's been fantastic. So, I want to just thank Steve, but they're going to be releasing Eden.
END
