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Early Start with Rahel Solomon

U.S. And China To Roll Back Tariffs For An Initial 90-Day Period; President Trump To Visit The Middle East This Week; Hamas Announces Plans To Release American Hostage; Jury Selection, Opening Statements To Begin Sean "Diddy" Combs's Sex Trafficking Trial. Aired 4-4:30a ET

Aired May 12, 2025 - 04:00   ET

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

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POLO SANDOVAL, CNN CORRESPONDENT: Hello and welcome to all of our viewers watching in the United States and all around the world. I'm Polo Sandoval in for Rahel Solomon this morning. It is Monday, May 12, 4:00 a.m. here in New York. Already a very busy morning. Straight ahead here on Early Start.

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KRISTIE LU STOUT, CNN CORRESPONDENT: The U.S.-China trade talks in Geneva ended on a positive note with US Officials touting substantial progress in a possible deal with China.

UNIDENTIFIED MALE: You can't just turn off and off the U.S.-China economic relationship and then expect there's not going to be some short circuiting.

UNIDENTIFIED MALE: As a U.S. President on Trump prepares to head to the Middle East for the first state visit of his second term. The last known living American hostage held in Gaza could be coming home.

UNIDENTIFIED FEMALE: It's great news. It's, of course, painful. You think about the others who are remaining, but it also lays the groundwork at least to keep these negotiations alive.

UNIDENTIFIED FEMALE: Sean did he Combs ex-girlfriend could be one of the first witnesses to take the stand when testimony begins in his sex trafficking trial.

UNIDENTIFIED MALE: This is the longtime girlfriend of Mr. Combs and as a result of that, she has significant knowledge with regard to what he does, who he's doing it with and what the relationship was like.

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SANDOVAL: And welcome to Early Start, where we begin with a major breakthrough in the high level and high stakes trade talks between the U.S. and China. They have agreed to drastically roll back those tariffs for 90 days is according to a joint statement, a rare statement that was issued by both countries just moments ago.

The announce coming after two days of negotiations in Geneva. By Wednesday, the U.S. will temporarily lower its tariffs on Chinese goods from 145 percent to 30 percent. So it is certainly a drastic temporary rollback. China will be cutting its tariffs on American imports from 125 percent to 10 percent. And we should say that a short time ago the U.S. treasury secretary told reporters that the talks will continue.

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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 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.

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SANDOVAL: CNN's Kristie Lu Stout has been closely watching these trade talks live from Hong Kong. Kristie, these are symmetrical. These are dramatic rollbacks. Can you tell us more about exactly what we heard come out of Geneva just a few moments ago?

LU STOUT: Absolutely, Polo. The U.S. and China have agreed to dramatically roll back tariffs for a period of about 90 days. This was announced in a press conference that wrapped up in the last couple of minutes in Geneva. We heard from the U.S. Trade Representative as well as the U.S. Treasury Secretary. This was also revealed in that very rare joint statement issued by both China and the U.S. and we say rare because the last time such a joint statement was issued by these two powers on trade was back in 2018.

We have been parsing the numbers and parsing the details in these statements to figure out what has been achieved as a result of two days of high stakes trade talks in Geneva. And what we can report is this.

The United States will lower tariffs on some Chinese goods from 145 percent to 30 percent and China will lower tariffs on US goods from 125 percent to 10 percent. Now, there is that 20 percent difference there. And that 20 percent difference represents the putative tariffs that were slapped on China by U.S. President Donald Trump in March and to encourage China to participate more and to cooperate more in terms of cracking down on fentanyl, namely the flow and supply of fentanyl precursor chemicals from China into the United States.

So, that is the detail there about this lowering, reciprocal lowering of tariffs by both the U.S. and China for a period of 90 days. Now, after these talks wrapped up in Geneva, we had heard earlier from the Chinese Vice Premier, He Lifeng. He called these talks constructive, candid, in depth.

[04:05:00] He also announced that there would be a new consultation mechanism set up between the U.S. And China in order to foster a continuation of trade talks. Listen to this.

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HE LIFENG, CHINESE VICE PREMIER (through translator): The two sides agreed on establishing a consultation mechanism for trade and economic issues, identified the lead persons on each side and will carry on further consultations relating to trade and economic issues of their respective concerns.

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LU STOUT: Now this was the first high level face to face trade talks between the U.S. and China since March when U.S. President Donald Trump dramatically escalated the trade war and hiked up tariffs to 145 percent on China. Again, as a result of this deal announced in Geneva, those tariffs are now lowered from 145 percent tariffs on China to 30 percent and China lowering itself retaliatory tariffs from 125 percent to 10 percent.

Now we've been also closely monitoring investor reaction to the news when the White House over the weekend said, quote, a deal had been achieved that lifted spirits in U.S. futures. If we bring up U.S. futures markets data right now, you will see that a lot of positivity out there in the markets as investors weigh everything that has been achieved over the weekend in Geneva. Back to you, Polo.

SANDOVAL: Yes, a noteworthy reaction in those talk features. We'll certainly see where things go in just a matter of hours. But as you point out, it's certainly drastic and that mechanism is in place, as the U.S. Treasury Secretary just said.

LU STOUT: Yes.

SANDOVAL: So things are certainly very much open ended. But nonetheless, a significant update from Kristie Lu Stout in Hong Kong. Our thanks to you.

LU STOUT: Thank you.

SANDOVAL: President Trump is set to depart in the coming hours for his visit to three of the world's richest nations. He'll be arriving in Saudi Arabia on Tuesday, followed by visits to Qatar and then off to the United Arab Emirates.

Now, three countries have pledged to invest heavily in the American economy and buy U.S. weapons systems. The trip emphasizing those countries growing role in security, defense and trade and also in mediating on the global stage.

This coming as Hamas is announcing the imminent release of Edan Alexander. He's the last known living Israeli American hostage held in Gaza. In a post on Truth Social, President Trump calling the development monumental news. But Israeli Prime Minister Benjamin Netanyahu says that Israel has not committed to a ceasefire of any kind in exchange for this release.

Netanyahu claimed that Alexander's release is only being made possible, quote, thanks to the military pressure on Hamas in Gaza. Again, the words of the Israeli prime minister.

Alexander's parents, they are traveling to the region ahead of his planned release. They're headed to Israel. U.S. hostage envoy Adam Boehler sharing this photo of himself along with Alexander's mother and also more family members there.

The president's first stop in Riyadh. That is exactly where we find CNN's Becky Anderson. She picks up our coverage. Becky, high stakes here as well.

BECKY ANDERSON, CNN ANCHOR: Yes, absolutely, Polo. It would be difficult to overstate the importance of this trip to the Arabian Gulf. It is being touted by all parties as a pivotal opportunity to reimagine U.S.-Gulf relations in a new era.

Now, Donald Trump clearly sees Saudi Arabia, Qatar and the UAE is offering huge advantages for his America first policy. As one expert put it, opportunities across geopolitics, geoeconomics and geoeconomics and geotech, take all the right boxes in what is this president's transactional approach to his foreign policy.

These are countries that have built personal ties with Donald Trump. They've pledged trillions in U.S. investments and are positioning themselves as key intermediaries in conflicts that Trump wants resolved, not least Ukraine, of course. And the Saudis have been mediating ha between Ukraine and Russia, Iran and of course, Gaza.

And Qatar, one of Trump stops on this presidential trip playing a key role in brokering that agreement to release Edan Alexander, the Ministry of Foreign affairs issuing a statement calling it a, quote, gesture of goodwill and a positive step towards resuming negotiations aimed at reaching a ceasefire in the Gaza Strip.

Well, is that where this is headed? Well, Paula Hancocks joins us live now from Abu Dhabi. Paula, let's start with what we know about Eden Alexander's release at this point and how that came together.

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Becky, this release of the American Israeli hostage could be imminent. We have heard from Hamas that he will be released. As you say, it's being described as a goodwill gesture, which means as well that it is going to be a very different scenario to what we have seen in the past.

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We've already heard from the Israeli prime minister, Benjamin Netanyahu, that it is not linked to anything. There has been no cease fire agreed as part of this exchange. We also don't believe there will be any Palestinian prisoners released in exchange either, which is what we have seen in previous releases of these hostages.

And also we've heard from Netanyahu saying it's thanks to military pressure that Israel is putting on that this was even possible. Obviously, his critics would point to the fact that it is the deals that are done with Hamas that have led to hostage releases, not military pressure itself. But we are expecting Edan Alexander to be released imminently.

We understand his parents are heading to Israel. And we heard when they received the news on Mother's Day that this was going to happen. They called it, quote, the greatest gift imaginable. Now, the interesting thing about this as well is we understand from Hamas that these were direct negotiations between Hamas and the United States. Of course, the United States considers Hamas to be a terrorist organization.

But Edan Alexander, the last known or the last believed living American hostage being held by Hamas, there are still 59 hostages, including Alexander, that are still in Gaza. Over 20, we understand from the U.S. president, 21 believed to be alive. We understand from Israel they believe it could be 24. The fate of three is unknown at this point. Becky.

ANDERSON: Paula, good to have you. Thank you. Joined now live by H.A. Hellyer from Cairo in Egypt. He's a senior associate fellow of the Royal United Services Institute for Defense and Security Studies, a regular guest on CNN. It's good to have you, H.A., this morning.

Just as we are seeing this trade breakthrough, if you want, with China and this agreement to release Edan Alexander. These are two examples of what Donald Trump considers his foreign policy, which is dealmaking.

Do you see this giving Donald Trump momentum as he travels to this region to cement more deals and more cooperation with these Gulf nations?

H.A. HELLYER, SENIOR ASSOCIATE FELLOW, RUSI: Well, thank you, Becky, for having me on the program. Always a pleasure to be here. So, of course, Donald Trump is known in the region, as he is worldwide, as a transactional president. People are very fond of mentioning his book, "The Art of the Deal." This is how he operates.

And when it comes to these particular things you've mentioned just now, especially over the release of American Israeli prisoner Alexander, of course it's going to be seen in a very particular way within the region. I'm sure when he actually arrives because as your report just indicated, this isn't a prelude to a pause in fighting or a larger deal.

Trump's note about this on Truth Social talked about it being in good faith, hopefully the first step. But when we look on the ground, there hasn't really been any movement thus far. And it would be interesting to see if there will be anything while he's actually there.

This week, there's been these suggestions around the, quote, unquote, new humanitarian distribution system, which has been roundly criticized by the U.N. and by humanitarian organizations for essentially weaponizing aid because it would force Palestinians yet again to move and also to put aid completely under the control of an organization that, you know, was set up some weeks ago without any Palestinian or Arab involvement and without any involvement of existing aid organizations and so on.

So I think that the fact that there's somebody coming home to their family is, of course, great news, but I'm not sure that we can expect to see too much in terms of this leading to an actual ceasefire on the ground, at least not in the next few days.

ANDERSON: Yes. And we will see how things go. But to underline Israeli Prime Minister Benjamin Netanyahu saying today that Israel, and I quote him here, has not committed to a ceasefire of any kind in exchange for the release of Edan Alexander.

The trip here will be keenly focused on the region's safety and security.

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The Gulf nations, who have huge, ambitious projects to completely revolutionize their economies in the decades to come, have said very squarely that they their foreign policy must fit their economic ambitions. They want to see deescalation around this region, and they want to see economic integration. They know that these projects won't work as well as they want to without that.

So there will be an effort to promote economic integration and peace talks to bring more regional stability, because they see that as the only way, as I say, for the region to move forward. Talk to us about that strategy from the Gulf.

HELLYER: So I think it's been very interesting because of course, on other files over, if you go back a few years, escalation was really what people were trying to do. And you know, it wasn't that far along back in the distant past that there was the GCC fight, as it were, between different members. That's all a thing of the past.

And on top of that, you've seen deescalation be the name of the game when it comes to the relationship between Saudi and Iran, between Turkey and different parts of the Gulf as well, if you go further in the Middle East, between Egypt and Turkey and so on. So actually deescalation, because I think these nations recognized that escalation wasn't really bringing anything.

And of course, this is another reason why they're all even more opposed to how things are working out in the Palestinian occupied territories and Israel's war on Gaza.

I do think that you'll see certain interesting things come about over possibly this trip when it comes to Syria. The Syrian president may indeed, even briefly might meet with Donald Trump in Saudi Arabia, and that's indicative of something wider in the region, particularly with regards to Saudi Arabia.

They jumped at the chance to try to engage with the new authorities in Damascus because the idea of isolating Shara (ph) and his group was less palatable than trying to bring them back into the wider Arab arena. And I think that, broadly speaking, the region has taken that particular perspective with some small variations.

I also think you're not going to see as part of this trip any declaration regarding normalization between Israel on Saudi Arabia, because Riyadh doesn't want it. Riyadh is very clear that in order for normalization to take place, there needs to be a bunch of steps that the Israelis would have to take in order to end the occupation or stop the war and so on. And Tel Aviv has made it very clear they're not doing that.

So, I do think that will be interesting, particularly from an American standpoint, because for months and years the suggestion that the Saudis would normalize despite saying very publicly and privately as well that they wouldn't until Israel changed its behavior, I think that will finally come home.

ANDERSON: I wonder what you think success will look like for the Kingdom of Saudi Arabia. Focusing very squarely on where I am today here in Riyadh.

HELLYER: So I think that there's a few things that will be interesting to watch over the next few days. First, the discussion around a nuclear energy program within Saudi Arabia and the cooperation of the United States with regards to that.

Now, this is essentially being decoupled completely from the normalization file. And if you remember, only a little while ago, it was all part and parcel. Right. That there would be cooperation on energy, but there would also be a defense treaty as long as there was also normalization. While the normalization part is no longer a condition, these have been completely decoupled. And now these are bilateral conversations. I don't think you're going to see too much being announced in terms of defense ties that will be terribly different.

I think that's a harder conversation, not because, by the way, I don't think that the Trump administration would be interested in it, but because they'd have to be involvement of Congress, at least at some level, depending on what sort of relationship we'd be talking about.

But it would surprise me at all if we saw announcement around energy, and I think will be very happy with that, and I think that D.C. will be happy with that as well.

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So there's a lot of win-wins, I think, to be had on this trip.

ANDERSON: Yes. And a big Saudi-U.S. investment conference that Donald Trump will attend as soon as he arrives in Riyadh on Tuesday and expect a speech from him there which could flush out the kind of wider issues you and I have just been discussing. H.A., always a pleasure. Thank you very much indeed for joining us.

Well, as we've discussed, the U.S. president's trip can ultimately be seen through two lenses. His America first policy to position the U.S. as the most important global economy. And that means bringing on allies to support Washington in its ambition to outdo China, particularly when it comes to AI and advanced tech. That's that geo tech pillar that is increasingly important international affairs. Polo.

And then this is Gulf lens, where countries here have huge economic ambitions themselves, ambitions that will only succeed if this region moves beyond conflict and escalation to a future focus more on peace and economic integration. And they were asked by the first Trump administration and by Obama to sort out their own backyard when it came to these regional conflicts.

And that is squarely what these countries are now suggesting that they are doing in these key mediation roles and H.A. Hellyer speaking to Syria, for example, both Saudi and Qatar very recently paying off Syria's World Bank debt to the tune of about 15 million, but have shown keen interest investing in the economy, in paying civil servants, in getting wages paid so that Syria can get on with a period of reconstruction.

You can read more about the regional dynamics at play in our CNN digital piece. It's also on your CNN app laying out what the Kingdom of Saudi Arabia, Qatar and the United Arab Emirates each have on their wish list that is online and across CNN platforms, as I say. And we will return to New York now where Polo is in The CNN Newsroom.

SANDOVAL: CNN's Becky Anderson with some very important context. It's about safety. It's about security in the region. We'll certainly check back with you for more of that amazing reporting. Becky, thank you.

A lot of other stories that we're also following in the United States, including opening statements in Diddy's federal criminal trial. They are expected to start in just a matter of hours. Coming up, what to expect in court when the music moguls case gets underway.

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SANDOVAL: It's time to look ahead now opening statements. They are set to start in just a matter of hours in Sean "Diddy" Combs federal criminal trial. The music mogul, he's charged with five criminal including racketeering and sex trafficking as well. Combs former girlfriend Cassie Ventura. She's expected to be a key witness for the prosecution in this case. She filed a lawsuit against Combs criminal at least she claimed rape and physical abuse.

Now, that suit was settled, but surveillance video showing him assaulting her in a hotel was later published by CNN and that then opened the floodgate to other accusations which brings us today. Joining us now for a breakdown on what's ahead in this high profile case is civil rights attorney Areva Martin. Areva, thank you so much for staying up late with us. We really appreciate it.

AREVA MARTIN, CIVIL RIGHTS ATTORNEY: No problem. Thank you. SANDOVAL: So we expect opening statements to get underway on today.

I'm curious, from your perspective, what are we likely to hear right out of the gate, both from the defense and the prosecution in this case are, Areva?

MARTIN: Yes, Polo, I think we're going to hear a very aggressive opening statement from the prosecution. They're going to lay out that this was a criminal enterprise that involved employees and agents and managers and people in Sean "Diddy" Combs' orbit that they helped facilitate. They booked hotels, they helped to find prostitutes, they helped to buy products that were used in these freak offs, as they've been called. And that Sean "Diddy" Combs use force, threats, coercion and physical violence against women and men and committed sexual assault and abuse against them.

And then we're going to hear the defense come forward and say that what the prosecution has laid out is not an accurate picture of what happened. They're going to say all of the adults that they're going to hear about in this trial were consenting adults and all of the sexual activity that they will hear about during the trial was consenting sexual conduct.

They may also try to allege that this is a targeted prosecution. We've heard a lot from the defense team about how they believe Sean "Diddy" Combs has been targeted because he's an African American male and that but for the fact that he is African American, these charges would not have been brought.

SANDOVAL: Yes, coercion versus consent. Those will certainly be two key components in what we expect to hear. Now, as we mentioned a little while ago, Diddy's former girlfriend, Cassie Ventura, she is likely to take the stand possibly as early as today as one of the prosecution witnesses.

But I found it interesting late last week the defense indicated that it would seek to cross examine her and take the position, in their words, that there was mutual violence in their relationship. Can you speak to the defense's challenge in really trying to undercut prosecutors who have maintained that she was coerced?

MARTIN: Yes, this is a really difficult task for these defense attorneys.

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