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Bessent: Trade Deals Coming "Maybe As Early As This Week"; WH Says No "Final" Decision Made After Trump Orders 100% Tariff On Foreign-Made Movies; Today: Govt Resumes Collecting Defaulted Student Loan Payments; Sean "Diddy" Combs On Trial As Jury Selection Begins. Aired 1-1:30p ET

Aired May 05, 2025 - 13:00   ET

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

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[13:00:43]

BRIANNA KEILAR, CNN HOST: Going it alone, more than a month after President Trump's so-called liberation day, he has nothing to show for it, despite weeks of promising a trade deal is imminent.

Now he's shrugging off fears of a recession, as economists warn the trade war's impact could result in empty shelves here in a matter of days.

ERICA HILL, CNN HOST: Reopening the rock, but this time for criminals, not tourists. The latest on President Trump's plan to turn Alcatraz back into a prison, and the very good reason it was actually shut down in the first place.

And in Manhattan courtroom, lawyers are looking for a jury to decide the fate of Sean "Diddy" Combs as his sex trafficking trial gets underway. We're following these major developing stories and many more, all coming in right here to "CNN News Central."

KEILAR: No deals yet, but there is a lot of optimism.

The Trump administration insisting new trade agreements could be just around the corner. Earlier today, Treasury Secretary Scott Bessent reinforcing President Trump's comments on Air Force One last night, that new trade deals could come as early as this week. The President has still not signed a single trade deal since he put in place those so-called reciprocal tariffs more than a month ago.

Also today, the White House is now pressing pause or possibly rewind after Trump's latest tariff threat. Now saying no final decision has been made after the President vowed to slap 100 percent tariff on movies produced outside of the U.S. last night.

Joining us now is CNN's Vanessa Yurkevich.

Vanessa, what more did the Treasury Secretary say about getting some of these new trade agreements in place?

VANESSA YURKEVICH, CNN BUSINESS & POLITICS CORRESPONDENT (on-camera): Well, Brianna, the clock is ticking on trying to get trade deals in place as that 90 day pause, a pause on reciprocal tariffs is winding down. There's only about two months to go on that.

But the administration says that there are deals in the works, but two months is very little time for a trade deal. Trade deals often take years. The administration, though, saying again that trade deals are being worked out and we're going to hear about them soon. But we haven't just yet.

Secretary Bessent of the Treasury just a short time ago on CNBC reiterated that something is coming soon. Listen.

(BEGIN VIDEO CLIP)

SCOT BESSENT, TREASURY SECRETARY: I think we're very close to some deals, as President Trump said last night on Air Force One, maybe as early as this week.

I am highly confident that we have 18 important trading partners. We'll put China to the side. The 17 other partners, many of them have approached us with the very good trade proposals. President Trump is going to be involved in all of those. He will be the final decision maker.

(END VIDEO CLIP)

YURKEVICH (on-camera): And ultimately, President Trump is the final decision maker, as you heard from the Treasury Secretary right there. So, what are the benchmarks that the President is looking for in order to OK these deals?

Also, the Treasury Secretary saying that on China, he expects there to be some substantial movement in the next couple of weeks. But he also said we'll see. He did note that a 145 percent and 125 percent tariff is essentially an embargo, meaning no trade between countries. He did say that China is going to be the loser in all of this because they ultimately rely on their exports into the United States.

We know, Brianna, reporting on your show and what I've been reporting is that imports have fallen into the United States because it's simply too expensive to do business with China right now.

But if you look at the Dow there on your screen, up about 82 points, the Dow was down for most of the morning, but seemed to be encouraged by the fact that the Treasury Secretary was saying that there are still deals in the works. Not -- we don't know yet which countries, but ultimately Wall Street feeling more optimistic than they did earlier in the day, Brianna.

KEILAR: And Vanessa, the White House is now saying that no final decision has been made after the President said he'd put 100 percent tariffs on movies that were made outside the U.S. What more can you tell us about this?

YURKEVICH (on-camera): Right. Last night, the President said that he wanted to put a 100 percent tariff on movies that were made outside of the United States. But just a short time ago, the White House clarifying that no final decision had been made. The President directing the Commerce Department to put this tariff in place.

[13:05:11]

But movies are like intellectual property. They're not a product. They're considered a service. So how would you put a tariff on something that is an intellectual property? But the White House saying, according to a spokesperson, Kush Desai, saying, although no final decisions on form-filled film tariffs have been made, the administration is exploring all options to deliver on President Trump's directive to safeguard our country's national and economic security while Making Hollywood Great Again.

So ultimately, the President saying that he wants this tariff to go into effect, but the White House team saying that they're still looking into it. A lot of folks wondering exactly how this would all work. Of course, many films produced right here in the United States filmed here, but also filmed abroad, Brianna. Some confusion about how this would all play out.

KEILAR: Yes, let's try to clear some of that up. Vanessa, thank you so much.

We want to talk more about this now and the impact this could have on the movie industry with Dominic Patten, Executive Editor of Deadline Hollywood.

Dominic, to Vanessa's point there, there are a lot of movies that are made outside of the U.S. So, talk to us about what kind of movies this could affect.

DOMINIC PATTEN, EXECUTIVE EDITOR, DEADLINE HOLLYWOOD: Well, to be honest, Brianna, this could affect all the movies that people love. This could affect things like the Dune 3, the new Avengers movie, Doomsday, which is being shot in the U.K., the new Dune movie being shot in Hungary. This could affect movies like Christopher Nolan's The Odyssey, which is shooting parts of it in Europe for obvious reasons.

This could affect huge amounts of the movie industry. It would basically be a devastating blow. And of course, as you guys discussed, how it plays out yet to be seen.

But I will note that while the White House has said today that the final decision has not been made, and this is rather typical of President Trump's decisions made on the fly, literally, as well as the Alcatraz one that you talked about earlier, the Commerce Secretary last night said, we're on it. So, I have a feeling that this is moving forward.

I will also point out, and maybe this is something the Treasury Secretary was hinting at, tomorrow the newly minted Canadian Prime Minister, Mark Carney, will be visiting the White House.

Now, when you talk about runaway productions, Hollywood North, Vancouver, Toronto, Montreal are a huge part of that. So that might be some of what we're going to see tomorrow when those two guys meet. Either way, that topic is certain to come up.

KEILAR: What are you hearing from production companies? How worried are they?

PATTEN: Oh, they're tremendously worried. I mean, last night, we spoke to a number of studios, their in-house counsels, the big law firms they deal with. They're trying to figure out how this works, what it is.

To be honest, what one executive said to me is, we're trying to figure out what POTUS wants, because they see with Trump, he's a transactional guy. You know, a lot of media companies have, as they said, kissed the ring, bent the knee, tried to find ways to appease the President, sometimes ahead of time, sometimes as his threats enlarge. This is one of those cases, they just don't know what this is about.

Now, as we reported exclusively on Deadline last week, part of this might come out of Jon Voight, the Oscar-nominated actor. Now, some of you might remember, early in his second term, the President appointed Jon Voight, Mel Gibson and Sylvester Stallone as his special ambassadors to Hollywood. Nobody knew what that meant.

But we do know that Voight has been, as we reported last week, has been going around talking to executives and to some of the unions here. The assumption was he was discussing some sort of perhaps federal tax credit incentive, like what California, New York, Georgia and others have on a state level. This seems to be something very different.

KEILAR: So just explain to us, as production companies are looking at this as something that could break their backs, what is the state of Hollywood post-pandemic? And I'm not talking about for, you know, the highest paid actors and actresses, but also just the folks who earn their living this way.

PATTEN: Well, look, Brianna, as you well know, one of the things about Hollywood is it still attracts misfits. It's still a place where people can get a good middle-class job out of their work. But that's been disappearing over the past decade.

Certainly, we had the pandemic, as you mentioned. We've also seen the giant changes in the industry with the advent of streaming. And also, here in L.A., we saw the wildfires, which ruined a lot of people's homes, a lot of people who work in the industry. And, of course, the vast costs of living in Los Angeles, not only as a resident, but also making things in Los Angeles.

Now, what we've seen is tens of thousands of people unemployed. Of course, we also had the 2023 strikes, which, while they got great measures for workers, not much production. Production has been very limited. To that, California Governor Gavin Newsom, a foil of the President's at the best of times, late last year, as we reported exclusively on Deadline, is going to double the annual tax credits here in California from $330 million a year to $750 million a year. Now, that process is working through the legislative in Sacramento, but it's almost certain to pass, which will make California the highest official tax incentive in the nation. That beats New York, which is about $720, I believe. We don't know quite what Georgia is. It's assumed to be around a million, but those are the official numbers.

[13:10:15]

There is a great hope that that will be the arrival of the cavalry. But with things like this, what President Trump is doing, you just have to ask yourselves. Basically, tariffs are a tax and its consumers that pay it. So how does this work? Are ticket prices going to increase just as the movies are starting to get off their knees with the success of Minecraft and Sinners? Are we going to see some sort of increase in budgets or decrease? Will there be less films made? It's very hard to tell.

KEILAR: All excellent questions. Dominic Patten, always great to have you. Thank you so much.

PATTEN: Thank you.

KEILAR: Erica.

HILL: Today, the Department of Education begins collecting payments on federal student loans in default. This after, of course, a multi-year pause for some borrowers.

This means those fears that their paychecks or benefits could soon be garnished are very real. In fact, a new study shows about one in five Americans with student loan debt are seriously behind on their payments.

CNN's Matt Egan joining us now with more on this. So, we look at that analysis. That feels like a fairly high number, Matt.

MATT EGAN, CNN REPORTER (on-camera): Yes, Erica, it really does. Look, student loan payments are back and a significant number of Americans are struggling to keep up. This analysis comes to us from TransUnion. And yes, they find that four million people who owe on federal student debt, they are 90 days or more behind.

That is considered seriously delinquent. That is a record high 20 percent. And this is up significantly from about 11 percent back in early 2020 before COVID-19.

And so, this does suggest that a significant amount of people either can't pay right now or they don't realize that they owe money. If anything, these numbers actually might understate matters, because TransUnion also said that they found another four million people who are also 90 days or more behind, but they have not yet been reported as seriously delinquent. So we could see these numbers actually go higher.

Just to remind people how we got here, back in March of 2020, the federal government paused federal student loan payments, and they also paused collections and interest after a series of extensions, payments resumed in late 2023. But there was this 12-month on-ramp, this grace period.

And then starting today, the Education Department is resuming collections, which means that the federal government could begin garnishing federal and state payments to people in terms of tax returns. They could also even order employers to garnish the wages of student loan borrowers who are in default.

Erica.

HILL: Those delinquencies, too, Matt, they also have a major impact on people's credit scores.

EGAN (on-camera): Absolutely. Yes, I mean, this is really blowing a big hole in people's credit scores. The TransUnion analysis found that the average person who is seriously delinquent has seen their credit score fall by 63 points.

But that's just the average person, because what we have seen is a much bigger hit to the credit scores of people who have high credit scores, because their credit histories don't really have as many blemishes, until now, at least.

And, look, this is the kind of thing that can really haunt people later in life, because if you have a lower credit score, it can be harder to get mortgage or to get a car loan or at least to get one at a favorable term. So they could end up paying more for their loans going forward.

And, look, we know this is really taking a toll on some people. I talked to a 29-year-old in Southern California who told me he's got $12,000 of student debt. And right now, he owes zero per month because he's on an income-driven repayment plan.

But still, he's trying to chip away at the student debt. He's taking on a second job. And he said it's really just taking a toll mentally.

He said, I voluntarily took on student debt, but it adds up way more than you expect. It feels like I'm drowning.

Erica?

HILL: Yes, Matt, really appreciate it. Thank you.

Still to come here, the sex trafficking trial for media mogul Sean "Diddy" Combs kicking off in a New York courtroom today. Jury selection underway at this hour.

We'll take a closer look at what's at stake for "Diddy".

Plus, there is a reason Alcatraz was shut down decades ago. Well, now the President wants to reopen it. We're going to take a closer look at the prison's notorious history.

And eight straight days of delays, how the staffing shortages are impacting a major U.S. airport.

Stay with CNN. We'll be right back.

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[13:19:15]

HILL: Right now, in a New York federal courtroom, the search is on for the 12 jurors, and alternates will decide the fate of Sean "Diddy" Combs. The big question, of course, finding that group of people who haven't already formed an opinion on a case of this magnitude.

Last September, the hip hop mogul was indicted on charges of sex trafficking, racketeering, and transportation to engage in prostitution to additional accounts were added last month. Federal prosecutors alleged that Combs led a criminal enterprise that involved coercing women into so-called freak offs, where they were drugged and forced to have sex with male prostitutes. For days.

Combs attorneys say the sex was consensual. He has pleaded not guilty. He faces up to life in prison if convicted.

Joining me now, jury consultant and attorney, Alan Tuerkheimer. Alan, it's good to talk to you again.

[13:20:02]

You know, when we look at this, we talk about that challenge, right? Of finding in this jury pool, a group of people who. I guess can put everything aside, right? Because the chance of finding someone who is not familiar with Sean "Diddy", "Puffy," depending on your age, the way that you would remember him, right, or even some aspects of this case, and the charges is going to be incredibly difficult.

ALAN TUERKHEIMER, JURY CONSULTANT & ATTORNEY: It is. And that's why there are going to be many prospective jurors that are brought in and the process is going to be narrowed down through questioning by the judge and then by the parties. So ultimately, there're going to be 12 jurors that are going to sit on this case and decide his fate and six alternates as well.

But it's going to start with a much larger pool. And then those who are biased one way or another. Maybe they've seen the -- the video with his ex-girlfriend Cassandra Ventura and, and, and anything else that's been reported, and they just say they can't get that out of their minds. They've -- they've made up their minds. They're going to start out with one side ahead of the other. They're going to be excluded.

And so, it's going to come down to those who can be fair and impartial that haven't made up their minds. And yes, most of them probably will know who Sean Combs is.

HILL: So we're looking at this too, you know, some of the details that we're just getting in from the courtroom. So that they are doing this as a -- as a sequestered voir dire, I guess is the technical term, right?

But they're bringing people in one by one to be questioned. And then also the judge has a lengthy list of an appendix that for the Lord of the Ring say, I mean, it's like a binder almost. There are so many -- so many people, so many instances they need to check off.

If you were looking at this as a jury consultant, if you're the prosecution, if you're the defense, walk me through who you do when you don't want ultimately in that jury box.

TUERKHEIMER: Right, and I preface this by saying that if you want a juror, the chances are since that's a good juror for you. The other side, if they're doing their homework, we'll get rid of that juror. So, a good juror for the prosecution will likely get kicked by the defense. A good juror for the defense will likely get kicked by the prosecution. So, you end up with more of a middle of the road type of juror.

But ideally, if you're the defense, then you are looking for somebody who maybe has been wrongfully accused of something at some point in their lives. Doesn't -- it's probably not in a courtroom, but somebody maybe who feels that their neighborhood, their school, their job, or in a family, they've been wrongfully accused subconsciously connect with a criminal defendant, Sean Combs, in this case. So that's one thing.

Also, the defense probably wants somebody who's a contrarian maybe sees the world a little differently, that's going to get in the deliberations and shake the prosecution of their very streamlined controlled case. Again, if you're the defense, a hung jury is probably a victory.

And then also there's some people that just feel celebrities are unfairly accused, maligned, targeted. This type of juror might think if it wasn't Sean Combs or if it was somebody named Sean Kaminski, these charges wouldn't be here and he wouldn't be facing life in prison.

Now prosecutors, they probably have an easier time. They want jurors who are going to have strong notions of accountability and they're going to connect the dots, and also, they might tend to blur the distinction between illegal behavior and maybe things that are behavior that's onward, that's a moral unethical that kind of lump it all together.

But at the end of the day, I think prosecutors are going to look at the jurors and say, all right, how is -- how is this juror going to assess the accusers, in this case, the main witnesses? And I think they're going to want somebody who is -- is going to believe these accusers coming forward and telling their story.

HILL: You talk about the lumping together of some of that -- some of the alleged behavior. How specific do you imagine this process is when it comes to asking these potential jurors some questions, potentially uncomfortable about some of the alleged behavior and whether they have either engaged in it themselves or know someone who has? How much will that be a part of it?

TUERKHEIMER: Yes, there's this ew or ick factor that I think some, some jurors are going to be repelled by, and they're going to just not want to be any part of it. And they'll probably be excluded from serving, but it's going to come up. This is the time.

Look, a lot of cases are won and loss of jury selection, so this is a pivotal time, and so you really have to show your cards and make sure that you put forward what the jurors are going to see and what they're going to encounter.

And you want them to be candid. You want them to reveal how they're going to react to something, or at least if something's going to make them so squeamish, they can't serve. But this is the time to do it. You'd rather learn something about the jurors prior to jury selection than after the verdict is rendered and it's adverse to your client.

So, now's the time to --

HILL: Yes.

TUERKHEIMER: -- get it all out.

HILL: Do you think this can be wrapped up if you have time for quick yes or no in a week?

TUERKHEIMER: I do --

HILL: Selection, not the trial.

TUERKHEIMER: A year ago in the same courtroom -- right? No, the -- the courthouse, the same courthouse. Southern District of New York one year ago, right about now, former and current president, Donald Trump's jury was selected and I think it was four days. So, he -- he -- they can pull that off for his case.

I think it'll be this week they'll take some work, but I think they'll get it done.

[13:25:01]

HILL: Yes, absolutely. Alan, really appreciate it. Thank you.

TUERKHEIMER: Good to see you, Erica.

HILL: You too.

Still to come here. Travelers and nightmare delays and cancellations piling up now at a major U.S. airport plagued with staffing issues.

CNN's Brynn Gingras is there.

BRYNN GINGRAS, CNN NATIONAL CORRESPONDENT (on-camera): Yes, Erica, the information board here behind me at Newark International Airport is lit up in orange. That's not a good sign. Delay, delay, delay. I'll have why the delays are happening and how travelers are feeling about it. I'm sure you can expect it.

What to hear, next.

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[13:30:09]

KEILAR: The nation's --