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Trump to Announce U.K. Deal; Duffy to Announce Air Traffic Overhaul; Third Round of Voting for Pope; U.K. Trade Deal to Be Announced. Aired 9-9:30a ET

Aired May 08, 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]

ADM. JAMES STAVRIDIS (RET.), CNN SENIOR MILITARY ANALYST: Hands on deck. And this would be a good moment for China to call Islamabad, to call the Pakistanis, the U.S. to call India and say, hey, let's stand down, because a war at the top of the world, starting in the Kashmir, is going to ultimately, potentially kill millions. These are two of the most populous countries on earth. They're nuclear armed. So, let's nip this in the bud. And this is a good example of where the U.S./China could actually work together to accomplish something positive. That would be a real plus.

KATE BOLDUAN, CNN ANCHOR: A real plus. It's a great point.

It is great to see you. Thank you so much for coming in.

A new hour of CNN NEWS CENTRAL starts now.

SARA SIDNER, CNN ANCHOR: All right, happening this morning in just a bit here, President Trump saying he will announce a major trade deal with a key ally. His first deal with the U.K. since imposing tariffs. We're learning new details about that deal and standing by for market reaction.

Also today, Trump's transportation secretary to announce a plan to radically transform air traffic control after that nightmare scenario at Newark International, and air traffic controllers warning of incredibly dangerous incidents across the U.S.

And waiting for the signal of consensus. This morning, black smoke rising above the Sistine Chapel, disappointing thousands of people waiting in St. Peter's Square to hear news of a new pope. That means more voting later today. And maybe, just maybe, we will have a new pontiff.

I'm Sara Sidner with John Berman and Kate Bolduan. This is CNN NEWS CENTRAL.

JOHN BERMAN, CNN ANCHOR: All right, breaking news this morning, we're getting brand new details just into CNN about what the president is calling a major trade deal with the United Kingdom. He is set to announce it this morning from the Oval Office. This would be the first agreement since the president's so-called reciprocal tariffs, unveiled a month ago, sent global markets into chaos. The president has been under pressure to announce a deal, any deal, to show his tariffs are worth the price the American consumers will pay.

CNN's Phil Mattingly got this fresh reporting, and he says the deal, he is told, will be limited in scope and heavy on future commitments. The markets, the futures markets, seem to like it so far. You can see markets are up slightly this morning since sort of the broad contours of this deal were announced. The opening bell in about 30 minutes. We'll see if it keeps going that way.

Let's get to CNN's Alayna Treene at the White House as we get more of the drip, drip, drip about what this will entail.

Alayna.

ALAYNA TREENE, CNN WHITE HOUSE REPORTER: That's right. And as we have been saying all morning, John, it's clear from these new details we are getting that this deal, as -- despite the president referring to it as being a full and comprehensive trade agreement, he was posting that this morning on Truth Social, it's actually going to be limited in scope.

What we know is that they're still working toward what the specific details are. They expect that this will be expanded upon over time. So, we're going to hear some of the parameters of it today, but not necessarily the full comprehensive details.

But we have great new reporting from our colleague Phil Mattingly. I want to give you some of what he had sent in. So essentially he said that it's expected to leave, this deal, the existing 10 percent universal tariffs in place. Again, they are saying some of these details are in flux, and we should hear more about it at 10:00 a.m. when the president will appear alongside U.K. officials to talk about this deal.

And one thing that's also that he made clear in this is that, you know, why they're choosing the United Kingdom on this. This actually came as a surprise to some people in the U.K., Phil's reporting shows, because what we've been hearing from the Trump administration for weeks now is that they were expecting to first strike a deal with some of the countries in the Indo-Pacific region, India, South Korea, Japan. But it became clear that they wanted to show the close relationship with one of the United States' closest allies, of course, Great Britain.

Now, one thing as well that I found interesting, just going back to what the president was posting this morning, we actually heard from his agriculture secretary, Brooke Rollins, this morning, who, again, despite what the president was saying about this being a full and comprehensive plan, she said it's more of a concept of a plan. I want you to listen to how she put it.

(BEGIN VIDEO CLIP)

BROOKE ROLLINS, AGRICULTURE SECRETARY: I mean, the U.K., for example, had an average of about a 9 percent tariff on our goods and our tariff on theirs was 5 percent. I mean theirs was almost, you know, double what ours is. And that all ends today. Again, more details coming. It is an agreement in concept. There's a lot of details to be worked out.

(END VIDEO CLIP)

TREENE: So, some other details there that she was referring to that we now know of include that this agreement is expected to line up some sort of tax breaks for U.S. tech giants, but also include cheaper access to car and agriculture markets in the United Kingdom.

[09:05:06]

As a result, the president is expected to lower some of the steel and automobile tariffs that have been placed on the United Kingdom, like all other countries.

Now, one thing as well that I think is just very notable is that, yes, this is going to be a welcome -- welcome news to global markets. Obviously, the White House as well, which, as you pointed out, has been under immense pressure of late to try and announce any sort of progress when it comes to these trade talks.

But one of the bigger meetings is not actually going to be today, it's going to be this weekend in Switzerland when we know that Treasury secretary, Scott Bessent, and the United States trade representative Jamieson Greer, they will be meeting with Chinese officials for the first time, face to face, to have some real talks on how to get out of the escalating trade war with China. That, of course, whatever comes out of that is going to be major news. But we are hearing from Trump administration officials here, they tell me that they're really trying to keep expectations low. They see those talks as a starting point.

John.

BERMAN: A busy morning at the White House. A busy weekend in Switzerland. A lot going on.

Alayna Treene, thank you very much for your reporting.

Kate.

BOLDUAN: Also, am historic day for the FAA. That is coming from the CEO of United Airlines on our show just last hour ahead of the Transportation Department's expected announcement today about the plans to overhaul and fix the country's air traffic control system.

CNN's Pete Muntean got that interview with United's CEO, Scott Kirby. Pete's back with us at Reagan National Airport with more.

Pete, tell us more about what you are learning is coming.

PETE MUNTEAN, CNN AVIATION CORRESPONDENT: A very newsy interview with United CEO Scott Kirby, in which he insisted that air travel is safe, even after that 90 second air traffic control meltdown at the Newark terminal radar approach control facility last Monday, which triggered five air traffic controllers to take what's called trauma leave because they insisted it is the most unsafe situation they've ever dealt with. Kirby insisted to me that United is mostly out of the woods when it

comes to delays and cancellations as a result of that staffing shortage at Newark. He said there was only one flight canceled by United yesterday, on top of the 70 flights to and from Newark that the airline has preemptively canceled each day because of the delays and chronic problems there at Newark.

This is also newsworthy today because we will hear from Transportation Secretary Sean Duffy in just about four and a half hours, at 1:30 Eastern Daylight Time. He will make an announcement rolling out essentially revamped air traffic control system with new back end infrastructure. Even though people are largely the problem here, there's a huge shortage of air traffic controllers.

And the Trump administration has really continued to double down here and say that the previous administration is to blame for all of those structural problems with air traffic control. And this is what Kirby said in response to that.

Listen.

(BEGIN VIDEO CLIP)

SCOTT KIRBY, CEO, UNITED AIRLINES: This is decades in the making. And so there's plenty of people to take the blame. I don't care who takes the blame. All I care about is getting it fixed and moving forward and getting us and getting our customers the world class air traffic control system that the people of the United States deserve.

(END VIDEO CLIP)

MUNTEAN: At one point Scott Kirby blamed this on the air traffic controllers who, he said, walked out in a memo that the airline released last Friday, even though this was not a labor action. I asked him if he regretted saying that. He said that air traffic controllers are essentially the unsung heroes of the aviation system, and that we need to properly fund the FAA. Also throttle back the number of flights restricted by the FAA going in and out of Newark. That's the big thing that United Airlines is pushing right now.

As for how long this big structural overhaul of air traffic control will take, the Trump administration says it will take three to four years, something that I've been publicly pretty skeptical about. I asked Kirby that. He says he does feel confident that this administration can build and build quickly.

Kate.

BOLDUAN: All right, Pete, thank you so much. Much more to come today. Really appreciate it. Great interview.

Sara.

SIDNER: All right, there is a lot happening today. Let's talk about all of it with former DOT inspector general and CNN transportation analyst Mary Schiavo. Thank you so much, Mary, for being here this morning.

This has been a problem for years, through Democrat and Republican administrations. How likely is it that the transportation secretary can transform air traffic control in just a few years, as he's saying he will do?

MARY SCHIAVO, CNN TRANSPORTATION ANALYST: Well, it will be very difficult. As I've said before, Secretary Duffy now literally has the biggest and hardest job in government. This has been attempted many times, and I was inspector general through both Republican and Democratic administrations. And you are correct, this has gone on for literally decades that the FAA and others have kicked the can down the road. So, this is a problem with at least five constituencies. He's going to have to work with the controllers. He's already got a plan to get those through, the 3,000 shortage up and hiring, incentives to stay on past your retirement.

[09:10:05]

You know, the age cutoff are you have to be under 32 and you can retire at 55. Duffy said, well, I'll pay you more to stay. Good move. Get the shortage stopped.

Equipment is a huge problem. The General Accounting Office did a study in 2024, and they said out of the 138 systems of the FAA, 51 were unsustainable and 54 more possibly unsustainable.

SIDNER: Wow.

SCHIAVO: Duffy must succeed. He has no option. He has to succeed.

SIDNER: Wow, that's like, you know, a third of -- of all of the systems that are, quote/unquote, unsustainable. That is scary.

I do want to ask you this. Duffy is meeting with airlines to ask them to reduce flights. This is part of the plan, for now, at peak times. It seems like this is necessary, correct?

SCHIAVO: It is absolutely necessary. And that brings the three other groups that Duffy is going to have to work with. And they're going to have to do as he asks because we need this.

And first is the airlines. Now, Pete's interview with United was great because he got United to commit on air that they're going to reduce the flights. But this has to happen not just at Newark but at the other congested airports. We have a shortage in Atlanta, the busiest airport in the world. We had a shortage in New York. We've had outages in O'Hare. We've had outages at SFO. The airlines have to agree to do this to reduce the flights at these congested airports. And if they don't, Duffy has emergency airworthiness directive power and he should use it.

He's going to have to get the FAA on board. There are a lot of foot draggers there. They circle the wagons. Some of them are -- they have Jurassic ideas, let us say. So, he's going to have to get the talent to build out the largest IT infrastructure and artificial intelligence system in the world.

SIDNER: Yes, and we know they exist.

SCHIAVO: And finally there's Congress. Congress has to appropriate the funds (ph).

SIDNER: Yes. Yes, we know they exist, but this is also a time when DOGE is trying to cut government spending. So, it will be an interesting battle there.

I do want to lately ask you, you called the FAA the tombstone agency. What did you mean by that?

SCHIAVO: Well, you know, and I started doing that when I was inspector general, to prod them to be proactive. They only acted once there was a disaster, once there was a loss of life. And we've had that loss of life, and now everyone's responding. They must be proactive going forward because we can make collisions literally extinct. And so that's why I started calling them the tombstone agency. Don't react when people die. Be proactive and let's get this done. And I think that hopefully they can do it because they have to. There is no alternative.

SIDNER: Very strong words from you there, Mary Schiavo. Thank you so much. Really appreciate it.

SCHIAVO: Thank you.

SIDNER: Kate.

BOLDUAN: So, we do not have a new pope. Not yet. Black smoke rose over the Sistine Chapel this morning for a second time. There's another vote happening very soon. And we have an update from the Vatican coming up next.

And two years after Tyre Nichols death, three former officers acquitted on state charges. One civil rights attorney calling it a, quote, "devastating miscarriage of justice."

We'll be right back.

(COMMERCIAL BREAK)

[09:17:46]

SIDNER: All right, it will be a few more hours before we see if today is the day that cardinals come to a consensus on who will lead the catholic church. After this morning's vote, black smoke poured out of the chimney above the Sistine Chapel. Thousands of faithful who had been waiting outside were hoping to see that white smoke. The signal someone had earned two-thirds of the vote that is required to become the next pope.

Joining us now is CNN Vatican analyst Elizabetta Pique.

Thank you so much for being here. You are out in the crowds. Can you just give me some sense, what is it

like out there as the expectations rise that possibly, maybe we could have a pope today or by the end of the week?

ELISABETTA PIQUE, CNN VATICAN ANALYST: Well, there is a very big expectation this could happen tonight, but also tomorrow. I just spoke some -- some time ago with Cardinal Sean O'Malley. Sean O'Malley, archbishop emeritus of Boston, that he, this time, he's not in the conclave because he's 80-year-old. And he told me, I asked, what is the meaning of this two black smoke that we saw last night, then today at midday here in Rome? And he told me, well, there are a lot of names. And I said, but what do you think? Do you -- do you think that could be possible today? And he remembered, well, last time it was in the afternoon of the second day.

So, I think, yes, it could be very soon and it could be also tomorrow morning.

This is what he told me. He has the experience. And he also told me, you know, this is very different conclave, thinking about the one of 2013 that elected the Pope Francis, because there is this enormous diversity, these different voices, all the continents represented, 70 countries. And Archbishop Sean O'Malley, he told me it was -- you could -- because I asked, how was the climate in these pre-conclave meeting? And he said it was so different because you could see so different perspective from all over the world, and this is not anymore. He told me it's not anymore a church Eurocentric. That is something of the past.

[09:20:03]

SIDNER: Yes, one of the -- couple of the big frontrunners from Africa, one from the Philippines.

There is a possibility of the pope being more like Saint Francis, more liberal in his thinking, blessing gay couples, for example, always working for the poor, being humble, or a pope that is far more conservative in his thinking.

What are people hoping for as you sort of see and talk with the crowds as well?

PIQUE: When talking with the crowds, and you could also see in the funeral of Pope Francis and after, you know, when all these people show up in the streets of Rome and then also keep showing in his so simple time in the Basilica of Santa Maria Maggiore, they -- they look for someone that could connect with people, that could do Pope Francis and also Cardinal O'Malley before told me, we cardinals agree in the pre-conclave that we need someone that is, you know, close to people as the -- we -- we have seen with Pope Francis.

I've since spoken with a lot of cardinals that say there was a message in the funeral and also in the funeral, we -- we saw how internationally the voice of Pope Francis may be sometimes not listened to with his appeals of -- and wars, stop -- stop the arms -- all these arm -- buying arms, you know. The migrants question. So, it's like people want -- want peace.

Here in the crowd, there is a very young woman from Odessa, Ukraine. Since days here with a -- with a -- with a big sign, peace. That people want peace. So, they want someone, you know, that in this kind of world really broken, could -- could follow this path of Pope Francis, of the culture of encounter, the culture of dialog. Also, they -- we are in a polarized world. We need someone that, you know, can -- can connect with people and still give this message of hope, first of all, hope and -- and that is possible peace. If one works for peace.

SIDNER: Yes, people are looking for someone that that gives them some sense of peace themselves and perhaps ways in to all of the things happening outside of ourselves, the wars, to try and help give peace to that as well.

Elizabetta Pique, thank you so much. Enjoy yourself out there today.

John.

BERMAN: All right, we are standing by for the opening bell on Wall Street. And investors are chewing over new details coming out on the trade deal President Trump says he will announce from the Oval Office shortly. You can see futures are pointing up right now. Investors seem to like what they are hearing.

Residents of Venice pleading for tourists to stop visiting. Why they say overtourism is turning their city into a, quote, "empty box."

(COMMERCIAL BREAK)

[09:27:23]

BOLDUAN: All right, so new this morning, we are learning some detail about the trade deal between the U.S. and the U.K. that President Trump says he will be announcing in just about 30 minutes from now.

CNN's Phil Mattingly has some new reporting, learning from officials that the deal will be limited in scope, heavy on future commitments and leave the existing 10 percent universal tariff in place. Now, the secretary of agriculture was on TV today and said that it's an agreement in concept. Quote, "there's a lot of details to be worked out." Still, big announcement is coming.

Let's talk about this right now. Joining me now is Jeanna Smialek, Brussels bureau chief for "The New York Times," and CNN global economic analyst Rana Foroohar. She's also a global business columnist and associate editor at "The Financial Times."

Guys, thank you so much for jumping on, as we are kind of in the lead up to hearing more about this deal.

Jeanna, I'm curious what -- how a first deal like this one with the U.K. is likely to be received among all of the other nations, especially in Europe, that are trying to cut deals with Trump as well. JEANNA SMIALEK, BRUSSELS BUREAU CHIEF, "THE NEW YORK TIMES": Yes, I

think there are some big questions about how it's going to be received, which mostly hinge on what it actually looks like. You know, as you've just stated, I think there's an expectation here that this is going to be a relatively limited deal. And so maybe a positive first step, but certainly not the end of the road here. And, in fact, the European Union actually announced today a blueprint for what retaliation might look like, which I think suggests to you that they just don't see this as a sign that the, you know, dawn is breaking and we're about to be through this situation.

BOLDUAN: That's really important because one would -- that's a -- that is one of the questions is, do they see this as, here's a great benchmark and now we can all rush ahead. This is kind of going to be the model for what it's going to look like going forward, but maybe not.

Rana, I had Democratic Senator Ron Wyden on, top Democrat on Senate Finance, last hour talking about this. He called the deal not much in his view. Again, we're limited on detail, but his guess was that it's going to be not much. And here's why. Let me play this.

(BEGIN VIDEO CLIP)

SEN. RON WYDEN (D-OR): About 2 percent of our imports, Kate, come from Great Britain. So, put me down as kind of skeptical that there is much there there.

(END VIDEO CLIP)

BOLDUAN: Though -- though it is a first deal, and we heard from many people -- I mean on Wall Street and beyond saying, just get a deal in the books for goodness sakes to try to calm the markets. I mean, how big of a deal could this one be? And is it most significant, now that we're thinking about it, that the 10 percent universal tariff is going to be remaining in place?

[09:30:05]

RANA FOROOHAR, CNN GLOBAL ECONOMIC ANALYST: Yes, great questions, Kate.

You know, as I was hearing Phil's reporting, I was thinking, this is a deal that's a