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Stocks Rally After Solid Jobs Report Beats Expectations; VP Vance Says War In Ukraine Not Going To End Anytime Soon; Canada's Pm Says He'll Meet Trump Next Week, With Focus on Tariffs; China Says Door Is Open To Being U.S. Trade Talks; McDonald's Reports Worst Quarterly Sales Drop Since COVID; Casual Dining Chains Hurting As Middle-Income Families Spend Less; More Americans Using Buy Now, Pay Later Loans For Groceries; First Driverless Semis Start Running Regular Long-haul Routes. Aired 2-2:30p ET

Aired May 02, 2025 - 14:00   ET

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

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[14:01:50]

ERICA HILL, CNN CO-ANCHOR OF "CNN NEWS CENTRAL": Both Wall Street and Main Street seem fairly happy about the latest Jobs Report coming in stronger than expected, despite some jitters over President Trump's tariffs. Plus, hours after the U.S. and Ukraine sign a key minerals deal, Vice President J.D. Vance says the war in Ukraine is "not going to end anytime soon." So ultimately, what does this mean for the peace process moving forward?

And the first driverless semi-trucks now hitting the roads, you might see them on the highways. How long could it be before they're here for the long-haul? We're following these major developing stories and many more, all coming in right here to "CNN News Central."

All right. A lot happening on the economic front, questions about tariffs, some big headlines out today. First up, the newly elected leader of Canada, Mark Carney says he will be heading to Washington next week to talk about, you guessed it, trade with the U.S. among other things. And could China now be inching toward talks? For the first time since President Trump's 145 percent tariffs, Beijing says it is now considering negotiations with the U.S. China's words, if it is a fight, we will see it through to the end. If it is talk, the door is open.

CNN's Alayna Treene joining us now from West Palm Beach where the president is today. So, the president's trade wars, right, and another week without a deal on the table, we've heard murmurs that there may be something. There are some encouraging signs. Where do things stand this week?

ALAYNA TREENE, CNN WHITE HOUSE REPORTER: Yeah, it was actually pretty surprising to many people, I think, that they didn't come out and announce some sort of trade deal, Erica. Look, they are close on a number of fronts with different countries, I'm told particularly the United States allies in Asia, including India, Japan, South Korea, those have really been a focus and a priority for the treasury and commerce departments who are really behind a lot of these talks in addition to the United States trade representative. But we have not seen any sort of language or any sort of deal yet.

In my conversations with Trump administration officials, they say they're finalizing some of the language of some of these deals. They've noted that many representatives and officials from these different countries have been coming in and out of, again, some of the top agencies that are really working on this. But I think a key thing, and this is something that has been very clear over the past couple of days, as I've been talking to top White House officials, is really the pressure that is mounting and building inside the White House and across this administration to try and show any sort of good news for the American people.

It was very clear this week. We had the CNN polling that showed some of the more dismal numbers when it came to the economy and some of the turmoil that we've seen in the aftermath of the president announcing these different tariffs, and how many Americans are really kind of waiting and hoping to hear, again, any good news when it comes on this. And that's something I'm told that behind the scenes many people internally are pushing for. And that's kind of why you heard a parade of the president's top economic advisers from Treasury Secretary Scott Bessent to Commerce Department Secretary Howard Lutnick.

[14:05:00]

We even heard Kevin Hassett on CNBC yesterday, the president's Director of the National Economic Council, say that he thought there'd be really good news and some sort of news on a trade deal announced by the end of the day, all to say they had been trying to show that something is coming to kind of compensate for what the president himself has said is this need for Americans to continue to be patient. So right now, it really is a waiting game of seeing who's going to be the first country and when that is going to be announced. I know behind the scenes, they are very eager to get some of that good news out there. Erica?

HILL: There has been some hope as you point out, Alayna, to have been able to announce something in the days that have already passed. So we'll be watching for that. Alayna, thanks. Well, there are some signs Americans are feeling an increasing amount of anxiety as they look at where things stand and they wait for some of that information. McDonald's just reporting its worst quarterly sales drop since COVID, saying customers are nervous with low-income customers cutting their spending nearly -- by nearly double-digits from last year.

Middle income customers also pulling back, McDonald's saying it is a "clear indication the economic pressure on traffic has broadened." Several fast food chains, Chipotle, Domino's, Starbucks, all say they're seeing similar pullback. Americans are also going out to eat less at more casual sit down chains like some of the ones you see on your screen there.

Of course, Hooters filed for bankruptcy earlier this week, joining the likes of Red Lobster, TGI Fridays, Buca di Beppo, all in the last year. Sales are also shrinking at Applebee's, Outback Steakhouse, Cracker Barrel and others. Hundreds of restaurants closing and it's not just about going out to eat. There's a new survey which shows more Americans are also taking out loans to pay for their groceries. An increasing number of shoppers are using those buy now, pay later services.

I'm sure you've seen them when you go to check out. They're starting to make their payments though on that agreement, making them late. CNN Business Editor at Large Richard Quest joining me now. So when we look at -- Richard, we look at these struggling sales, we look at fast food chains, we look at sort of casual chains. We look at what we're seeing with the buy now, pay later. What does that tell us about the overall strength of the U.S. economy, if that's where we're at?

RICHARD QUEST, CNN BUSINESS EDITOR AT LARGE: That it is weakening. That's the blunt, honest assessment. Those parts of the economy where those of lower incomes would spend and those who are more watching their pocketbook. We all watch our pocketbooks at certain -- to a certain extent, but those areas which are constrained, like those restaurants, people are going less. You'll start to see it in cinemas and movies. You'll start to even see certain snacks and that then moves into the pay loans or the payday loan companies because they are paying out to people who can't get regular credit.

It's sub -- it's not quite subprime mortgage, but when those who can't access money through normal credit cards or loans or bank loans, when those people start going to pay now later type of arrangements, these are the canaries in the mine that will eventually will eventually show. Because at the moment, we do not have the data from the first three months. Yet, I heard what the president said about it is Biden's and I heard that (inaudible) the truth is that current tariffs in the system are not reflected yet in the data.

Well, and even in the data, right, we're talking about the April Jobs Report stronger than expected, 177,000 jobs added. That's 40,000-plus more than were anticipated. But it is -- to your point, it is backwards looking. We also had fairly significant revisions for both the February and the March reports. So when you add all that together, the fact that, as Alayna was just pointing out, we don't have a deal yet. I mean you have all these officials out there trying to be as positive as they can, perhaps in some way trying to, you know, give a little nudge. I don't know. In case there are any foreign leaders watching, the reality is there is still no deal.

QUEST: And even if that --

HILL: How much is that weighing?

QUEST: And even if there was a deal, it wouldn't show immediately. Let's take two -- I haven't got two buckets here, but imagine you've got two buckets. The bucket of what's actually happening right now and that is 145 tariffs, 20, 25 percent tariffs, 10 percent general tariff. That is the bucket. The di minimis exemption, which went last night on packages under $800, that's the reality bucket now. And then you've got the bucket of what might happen in three months time or you've got a trade deal that might happen in two weeks. And even if you do get that trade deal, it's got to be put into effect, national parliaments, et cetera, et cetera. So you are ending up with a reality versus perception versus hope and prayer, and the economy, frank -- the market works on perception, hope, and prayer. Eventually, it works on reality. And at the moment, the economy is all about reality.

HILL: We will continue to watch it. Richard, always good to see you, my friend. Thank you.

[14:10:00]

Well, another group is really bracing here for the brunt of President Trump's tariffs expectant and new parents. According to baby supply retailers and trade policy experts, get this, some 90 percent of children's and baby products are manufactured exclusively in China. According to industry experts, that's not likely to change. They say they can't be produced in the U.S. or any other countries, not anytime soon, anyway. One supply chain expert offered us this breakdown.

So, look at that. 99 percent of imported child safety seats, those come from China. 93 percent of strollers, 96 percent of metal toddler beds, 93 percent of infant shoes, all of this, as it is important to point out, it's already about $20,000 when you add up everything that parents need to care for their newborn during the first year. Anybody who has children, like myself, knows they're not cheap. Those estimates from baby center and online parenting resource also show that tariffs would only add, of course, to the steep cost of raising a child. Forget about things like childcare, if you can even find it.

Joining us now is Natalie Gordon, she's the Founder and CEO of Babylist, which is an online baby registry. So you're pointing out all of these concerns, right? What is the -- so in this moment, right, if you have an expectant parent who's looking at this saying, wait a minute, maybe I'm only, you know, in my -- the early part of the second trimester, should I be buying the stroller? Should I do all these things now? Is that I imagine what people are asking? Do I just buy it now? Because otherwise, it's going to be cost prohibitive for a stroller.

NATALIE GORDON, FOUNDER AND CHIEF EXECUTIVE OFFICER, BABYLIST: Erica, I am so happy to be on, talking to you about this today. Yes, I think it is the time if parents have means, where they can save a little money by buying this now. But a lot of these price increases have already been put into effect. We've seen a 30 percent increase in the cost of car seats and strollers across the board.

HILL: Wow. I mean, and those are things that you can't skimp on, right? Like, those are things -- those are the things that you really need -- the car seat, the diapers, the bottles. When we look at all of this, it's been a long time for me, but I still remember. When you look at those products in the short term, how concerned are the parents that you're hearing from? What is the real-world impact that they're feeling in terms of their own budgets?

GORDON: We're hearing anxiety, we're hearing worry. I think the sentiment is, this is already so hard, this is one more thing. I feel very unsupported. We think this is an unintended consequence of the tariffs. We actually think all Americans want to support people who are having babies. And now, there is this extra tax, up to $1,000 where people having a baby are now paying that to the government in the form of these tariffs.

HILL: You put out an ad in The Washington Post, the headline was, "Babies Deserve Love, Not Tariffs." What has the response been to that message? Have you had any feedback from, say, elected officials in Washington?

GORDON: We have had very positive feedback across the board. It actually feels very uncontroversial and what the industry is actually asking for is a reprieve. These are small to medium-sized companies. Just like Babylist, they exist because they love babies and they're supporting families. They've created great products that keep our babies safe and they're actually asking for like a beat, so they can now invest in their supply chain in this new normal.

HILL: So, and you talk about the unintended consequences, I feel like that's what I've heard from a number of people, right? That there was this sort of what felt to a lot of people like a rash decision that then had a lot of consequences that likely were not intent, right? That the thinking was probably not, Hey, I'm going to throw tariffs on strollers and car seats, right? At the same time, you have an administration that's also talking about trying to incentivize couples to have more children or families to grow their families.

Do you think that there is any wiggle room there in terms of -- you talk about the positive response to that ad. Do you think there's some room for discussion even for you to have with, you know, whether it's the White House, whomever it may be in terms of reaching out and just saying, Hey, we want to let you know what the reality is?

GORDON: Yeah, that's exactly right. It's -- moving supply chain for this type of product takes time and it takes investment. And that's the actual request here. The actual request is some time, when you use the word rash, it was -- these were announced and then put in place so fast that these companies in a day-to-day, week-to-week are operating in an emergency. They are in crisis and they need this beat in order to invest.

HILL: Well, keep us posted in terms of what else you're hearing and what those conversations are. We'd love to know. Natalie, thank you for your time.

[14:15:00]

GORDON: Thank you.

HILL: Still ahead here, a reality check from the vice president on whether the Russia-Ukraine War will end anytime soon. How J.D. Vance is now tempering expectations for a quick peace agreement.

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[14:20:00]

HILL: Just days after President Trump suggested Russia and Ukraine were very close to a deal to end their war, the Vice President is now suggesting this could actually take considerably more time when it comes to forging a peace agreement. This of course, just coming not long after the U.S. signed that rare earth minerals deal with Ukraine. Vice President Vance acknowledging an end to the war will likely not come anytime soon. Take a listen.

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J.D. VANCE, (R) VICE PRESIDENT OF THE UNITED STATES OF AMERICA: It's going to be up to the Russians and the Ukrainians, now that each side knows what the other's terms for peace are, it's going to be up to them to come to an agreement and stop this brutal, brutal conflict. It's not going anywhere, Bret. It's not going to end anytime soon.

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HILL: Those comments from J.D. Vance coming as there's also new reporting about intelligence on Russian President Putin's shifting focus for this war. CNN's Alex Marquardt joining us now. So Alex, you have some new reporting here about Putin's goals, actually his immediate goals when it comes to the war, which could have an impact understandably on peace talks. What have you learned?

ALEX MARQUARDT, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: Yeah, Erica, it's clear that significant gaps still remain from the two sides. We heard that from the Secretary of State Marco Rubio. The U.S. is trying to get the two sides to agree to a ceasefire. The U.S. has put forward a framework and then, hopefully, they would then negotiate a peace settlement that would take quite some time to nail down.

Now, there have long been intelligence assessments, Erica, that Putin thought that he could wait out the West, that he could grind down the other side, and that time was on his side. He had more manpower and he would eventually be able to win over the Ukrainians as a result of that. But there is new intelligence that my colleague, Zach Cohen and I, have been told about that indicate that there is perhaps an evolution in Putin's thinking, and that as these negotiation negotiations are going forward, that he may be thinking about the shorter-term objectives of trying to solidify that frontline, to get recognition and a more solid footing of the territory that he has occupied.

Of course, his economy is also in tatters and if there were a deal, that sanctions could be lifted and his economy could get back up and running again. The U.S. has also talked about the possibility of potentially historic economic opportunities. So this is something that this intelligence indicating that Putin may be thinking a new way and we're told that that is playing into some of the optimism that we have heard from Donald Trump and Keith Kellogg, his Ukraine Envoy, about the possibility of this deal.

Now, that does not mean that Putin is doing away with his longer-term goals of advancing farther into Ukraine or trying to take over more of Ukraine eventually. This is how one senior Western intelligence official who I spoke with, put it to me that Putin may be thinking about what a reasonable nearer-term objective is so that Putin could not just claim victory domestically, but really feel that he has achieved something that is worth a significant pause and then maybe retake up the fight at some point later.

And that's something we heard, Erica, from a number of different officials, that Russia may be willing to agree to this now, take something of a pause, and then try again in the future when they have rebuilt their economy, rebuilt their military, and that of course is why Ukraine has been so insistent on getting security assistance and security guarantees from both Europe and the United States. Erica?

HILL: Yeah, understandably. Alex, really appreciate it. Great to have the new reporting. Thank you.

Still ahead here, 18 wheelers without a driver, no one at the steering wheel. Well, those cars are cars -- those large vehicles are now on the road. We'll tell you where and also take a closer look at the safety record of this technology to date. Plus, what's being done to protect manatees from life threatening pollution? Those stories and much more, all ahead right here on "CNN News Central."

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[14:28:40]

HILL: Semi-trucks, no driver behind the wheel -- how would you feel if you looked over and saw one in the lane next to you? Well, get ready because they could soon be coming to a highway near you. The first driverless big rigs running long-hauls in Texas for round trips between Dallas and Houston. Joann Muller, the Transportation Correspondent for Axios and the author of Axios' Future of Mobility Newsletter. So Joann, you've actually seen these trucks on the road. I have to say, my first thought, a number of people who I spoke to when we read this morning said, this is the scariest thing I've ever heard of. But walk me through the reality of this, if you would.

JOANN MULLER, TRANSPORTATION CORRESPONDENT, AXIOS: Well, yeah. Thanks for having me, Erica. You know, the future is here. They've been talking about this for a few years now, been working on it. The technology is finally ready and you know, there are a lot of deaths on the highway. Motor vehicle accidents, some of them of course involving heavy trucks and anything that can make the roads safer is a good thing, right?

I have ridden in the back of some of these trucks. There was still a safety driver there with their hands hovering above the wheel and I was pleasantly surprised at how smooth they are and how safe I felt, to be honest. So, there's a lot of technology that goes into these and you know, I think it could make the roads safer. That's at least the hope.

HILL: So, it could make the roads safer.