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U.S. And Ukraine Sign Critical Minerals Deal; China Standing Firm In The Face Of Donald Trump's Tariffs; Children With U.S. Citizenship Leave With Deported Mothers; Wildfires Near Jerusalem Force Evacuations, Road Closures; Gaza Nears Famine Two Months After Israel's Total Blockade; India Shuts Its Airspace to Airlines From Pakistan; Rallies Expected Around the World for International Workers' Day; King Charles Reflects on Cancer's Darkest Moments. Aired 2-2:45a ET

Aired May 01, 2025 - 02:00   ET

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

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[02:00:16]

ROSEMARY CHURCH, CNN ANCHOR: Hello and welcome to our viewers joining us from all around the world and everyone streaming us on CNN Max. I'm Rosemary Church.

Just ahead, the U.S. and Ukraine sign a critical minerals deal just days after the country's presidents met at the Vatican.

The world's two largest economies are on a collision course. Both American and Chinese consumers will suffer from the trade war. Now, many are wondering which side will cave first.

And mass deportations in the U.S. Some are citizens as young as 2 years old. As the Trump administration stands firm on its immigration crackdown, we'll hear from a lawyer who says there's no due process.

ANNOUNCER: Live from Atlanta. This is CNN NEWSROOM with Rosemary Church.

CHURCH: Appreciate you joining us. Well after months of negotiations that were at times heated, the U.S. and Ukraine have signed an economic deal that will give Washington access to Kyiv's rare earth minerals.

In exchange, the two countries will establish a joint investment fund which will help pay for Ukraine's post war reconstruction.

As part of the terms, Ukraine says it will retain full ownership and control of its resources, with Kyiv determining which minerals to extract and from where.

Going forward, new U.S. military aid to Ukraine can count as a contribution to the investment fund. The agreement comes after weeks of intense negotiations that turn bitter in late February when Ukrainian President Volodymyr Zelenskyy was berated during an Oval Office meeting at the White House.

But now there's a notably different tone coming from the Trump administration. Here's the Treasury Secretary on Wednesday.

(BEGIN VIDEO CLIP)

SCOTT BESSENT, U.S. TREASURY SECRETARY: Today's agreement signals clearly to Russian leadership that the Trump administration is committed to a peace process centered on a free, sovereign and prosperous Ukraine over the long term.

(END VIDEO CLIP)

CHURCH: More now from CNN's Jeff Zeleny at the White House.

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JEFF ZELENY, CNN CHIEF NATIONAL AFFAIRS CORRESPONDENT: A diplomatic breakthrough of sorts, between the United States and Ukraine, with both countries coming together on Wednesday to sign that long awaited deal, a reconstruction and investment fund between the two countries all over the rare earth minerals.

Of course, think back to a little more than two months ago when Ukrainian President Volodymyr Zelenskyy traveled to the White House for that meeting in the Oval Office with the U.S. President Donald Trump. That was the day that this deal was originally intended to be signed.

Of course, that meeting ended in a spectacular fashion, with a dramatic diplomatic breakdown and then a bit of a stalemate between the two countries.

But we are told it was that meeting in the Vatican at St. Peter's Basilica right before Pope Francis's funeral, such powerful images as we all remember of the two presidents sitting there together one-on- one. That got this deal back on track and nearly over the finish line.

Some last minute hurdles as well, but they also were resolved. We're told, one of those is the U.S. will not be able to essentially profit, get money back from some of those rare earths if they are able to be mined or the like, for the money that the United States gave to Ukraine.

Of course, that money was never intended to be alone. It was intended to stop the incursion of Russia after illegally invading Ukraine, but the U.S. Treasury Secretary of Scott Bessent, he hailed it like this.

He said, this agreement signals clearly to Russia and the Trump administration that they're committed to a peace process that centered on a free, sovereign and prosperous Ukraine over the long term.

The prime minister -- a deputy prime minister of Ukraine also signing the deal here in Washington. She's writing, together with the U.S., we are creating the fund that will attract global investment in our country. So, certainly a major diplomatic breakthrough. Now, of course, the

hard work continues for reaching a cease fire between Russia and Ukraine.

Jeff Zeleny, CNN, the White House.

(END VIDEOTAPE)

CHURCH: The deal was signed as Russia ramped up its often deadly drone attacks on Ukraine. The latest strike came just hours ago when Ukraine said the city of Odesa was hit.

Ukraine's Air Force says Russia has launched close to 400 drones over the past four days, which is almost as many as in the entire month of May last year. All this is happening days ahead of a unilateral three day cease fire that Russia declared for next week.

[02:05:05]

The numbers are in for the first three months of the year and. And they don't look good for the Trump administration. The Commerce Department reports the U.S. economy shrank by three tenths of a percent in the first quarter, its worst performance since 2022. Economists had predicted growth of eight tenths of a percent.

President Trump meeting with his cabinet, blamed his predecessor for the shrinking economy.

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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: He came in on January 20th. So this is Biden, and you could even say the next quarter is sort of Biden because it doesn't just happen on a daily or an hourly basis, but we're turning it around.

(END VIDEO CLIP)

CHURCH: President Trump also said Americans may need to adjust their spending and consumption as his tariffs take full effect, and that the U.S. does not need most of the goods China exports.

(BEGIN VIDEO CLIP)

TRUMP: They made a trillion dollars with Biden, a trillion dollars, even a trillion one with Biden selling us stuff. Much of it we don't need. You know, somebody said, oh, the shelves are going to be open. Well, maybe the children will have two dolls instead of thirty dolls, you know. And maybe the two dolls will cost a couple of bucks more than they would normally.

(END VIDEO CLIP)

CHURCH: Financial markets in the Asia Pacific region are reacting after the Bank of Japan decided to leave interest rates unchanged. It also cut its growth forecast amid uncertainty over the Trump tariffs. So, look at those numbers. Japan's Nikkei up about one percent and the

Hang Seng up just over half a percent. The other two down there, negative territory.

Well, there are growing signs the Trump tariffs are already starting to take their toll in the U.S. and China. So, which of the world's two largest economies is better prepared to deal with the trade war?

CNN's Kristie Lu Stout joins us live from Hong Kong with some answers. Good to see you, Kristie. So, how much pain can the people of China handle in the event of a long tariff war with the U.S.?

KRISTIE LU STOUT, CNN CORRESPONDENT: That is the question, Rosemary. Look, U.S. President Donald Trump says it is China that wants a trade deal with the United States. China says that it is standing firm. It is vowing to fight this battle until the very end.

An economic pain war is underway, and experts say that China has the capacity to endure it. Watch this.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: This will be a fast war.

STOUT (voice over): "The Battle at Lake Changjin" is one of China's biggest ever blockbusters, commissioned by the Chinese government. It glorifies the Chinese soldiers who fought American troops in the Korean War.

STOUT: Fast forward to today, and China and the U.S. are locking horns in another epic battle.

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: China needs to make a deal with us. We don't have to make a deal with them.

LIN JIAN, CHINESE FOREIGN MINISTRY SPOKESPERSON (through translator): Be it a tariff war, a trade war, or any other type of war, we're ready to fight until the end.

STOUT (voice over): Trump started this war with China aiming in part to bring manufacturing back to the U.S.

Chinese netizens mocked the idea with AIz generated videos showing a post tariffs world of dingy American factories with downcast workers.

Decades of trade brought bumper profits to both countries. And as U.S.-China trade withers, fortunes are turning.

In the U.S., the price of goods could shoot up, fueling inflation and putting the U.S. at real risk of recession.

And in China, a prolonged trade war could put countless factories out of business.

STOUT: The question is, how much pain can the people of China handle in the event of a long trade war with the U.S.? EDWIN LAI, HONG KONG UNIVERSITY OF SCIENCE AND TECHNOLOGY: I think the threshold (ph) is probably higher for Chinese society. The Chinese government being an authoritarian government may have its own advantage, because it can more easily reallocate resources.

STOUT (voice over): The Chinese have endured famine, the Cultural Revolution, and more recently, three years of strict COVID-19 lockdowns before protesters bravely took to the streets.

And in this trade war, pain is already being felt. On social media, Chinese factory owners post images of their products piling up in warehouses while workers show how machines and production lines have shut down.

Despite a dire economic forecast, many patriotic entrepreneurs are standing firm.

UNIDENTIFIED MALE (through translator): Even if the tariffs increase to 500 percent, I'm not afraid. Please, rest assured, we can hold on.

UNIDENTIFIED MALE (through translator): Stop all the orders. Stop all the export orders. I will not chicken out.

UNIDENTIFIED MALE (through translator): We can give up the U.S. market. I can let this batch of orders rot in the warehouse. You must give up illusions and prepare for struggle for China.

STOUT (voice over): In "The Battle At Lake Changjin", U.S. soldiers are seen gorging on Thanksgiving turkey while Chinese troops chew frozen potatoes in the trenches, yet they still beat the Americans later.

[02:10:02]

Trump's trade war pits the U.S. and China in a new challenge of resilience that's not about business or money, it's about honor and national pride.

(END VIDEOTAPE)

STOUT (on camera): Now, China is starting to feel the pain of this tariff war with the U.S. And U.S. President Donald Trump and new economic data that was released this week, on Wednesday, it was revealed that China's factory activity is declining faster than expected.

That said, China is still going forward with its big propaganda push, with new messaging, saying that China, "Won't kneel to U.S. tariffs." So, China is digging in for a long and painful battle ahead.

Back to you, Rosemary.

CHURCH: All right, thanks to Kristie Lu Stout bringing us that report from Hong Kong. Appreciate it.

Well, still to come, the White House's aggressive immigration policies result in multiple legal battles. I'll speak with an immigration attorney directly involved in one of the high profile cases. Back with that and more in just a moment.

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[02:15:26]

CHURCH: Multiple sources tell CNN that the Trump administration is considering deporting migrants with criminal records to Libya and Rwanda, but the plan is likely to face legal challenges. A 2024 U.N. report documented years of human rights violations in Libya.

U.S. officials are trying to replicate the current deal with El Salvador to accept deported migrants. Secretary of State Marco Rubio confirmed that officials are also in talks with several other countries on the matter.

The Trump administration is juggling multiple court battles involving immigration, but continues to move forward with its controversial policies. In the case of Kilmar Abrego Garcia, President Trump says he could help secure the return of the man mistakenly deported to El Salvador, but added, it's not up to him. It's up to El Salvador's president.

On Wednesday, a judge ordered the release of a Palestinian man arrested during a citizenship interview, also issuing a ban on any government attempts to remove him from Vermont or the country. Here's some of what he told reporters.

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MOHSEN MAHDAWI, PERMANENT U.S. RESIDENT: Basically, the threat is saying no to their policy, which is a policy that is a pro war and against peace, anti-peace.

(END VIDEO CLIP)

CHURCH: We're also learning more about three children who were taken to Honduras last week, despite being U.S. citizens.

Attorneys and advocacy groups confirm it's because their mothers were seized during routine meetings with government officials. President Trump's border czar says the parents ultimately decided their children would go with them.

(BEGIN VIDEO CLIP)

TOM HOMAN, WHITE HOUSE BORDER CZAR: No, we're keeping families together. So when a parent says, I want that -- I want my 2-year-old baby to go with me, we made that happen. They weren't deported. We don't deport U.S. citizens. The parents made that decision, not United States government.

(END VIDEO CLIP)

CHURCH: Sirine Shebaya is the executive director of the National Immigration Project. She joins me now from Washington. Appreciate you being with us.

SIRINE SHEBAYA, EXECUTIVE DIRECTOR, NATIONAL IMMIGRATION PROJECT: Thank you for having me.

CHURCH: Now, you represent a 2-year-old girl who recently left the U.S. with her deported mother to Honduras. What can you tell us about where this case stands right now?

SHEBAYA: Well, Rosemary, we are learning more and more every day about what these parents went through and how they were misled every step of the way before they and their children were forcibly removed from the United States, what the Department of Homeland Security is calling a choice was really a trap. There was no option in the situation. There was no due process, no justice.

Neither of the mothers willingly wanted to come with their kids or present their passports or go for deportation. What happened in that situation is that they both thought that they were coming for a regular check in with ICE, with immigration authorities.

And actually, the immigration authorities called the check in a family visit for one of the mothers, and she thought that they were checking in on the wellness of her children, and that's why they had asked her to bring the children with her.

And for the other mother, ICE told her that they were bringing her in to check in on the status of her ankle monitor, even though the monitor was working just fine.

So, in both cases, there was an over Ruse and deception to get the moms to bring their children with them when they went to the check in. The moms were also told that ICE needed copies of their passports, of the children's passports, and that's why they had to bring the passports with them. And so, they took the passports, and then the moms did not get those passports back until they were already in Honduras.

So, they're just like all these facts that are coming out as we have more time to talk to the moms now that they are there and trying to figure out what their next steps are. There's just been, like, a huge amount of misinformation that has been put out there.

But truly what happened here is an instance of family separation, where you have U.S. citizen kids and their moms, none of whom were given any opportunity to go through the normal processes that you would go through in order to even establish whether or not you should be deported.

CHURCH: And this isn't the only case, of course, where we have seen children caught up in the crackdown. On top of that, you have cases of student visas being revoked, like Columbia student Mahmoud Khalil. What message do all these cases send to migrants in this country and, of course, to the rest of the world?

[02:20:04] SHEBAYA: I mean, it's just a very tough time right now to be an immigrant in the United States, or a migrant or someone on a visa. It does seem like there is this completely chaotic and undiscriminating attempt to scare people who are here no matter what their status, and you see it in the situation with Mahmoud Khalil and Mohsen Mahdawi for example, who were lawful permanent residents.

One of them had a wife who was about to have a baby and had been living here for a really long time. The other one was actually going for his naturalization interview. And instead of having those moments of joy that they were supposed to have, they ended up in detention centers that have horrible conditions, and, you know, facing these unprecedented immigration proceedings for nothing more than, you know, it should be a guaranteed right of free speech to kind of express political opinions and be participating in, you know, the normal aspect of civic life.

And even beyond those cases where there was like an ideological targeting, we've seen thousands of visa, you know, revocations and student status terminations that absolutely seem to have no rhyme or reason, and we've had to engage in enormous amounts of, you know, spending time and resources to litigate in order to get the government to stop doing these things.

But it's just like this atmosphere of terror of nobody's safe in their own home, nobody's secure here, people feeling like they don't belong, just because, you know, they are not like of the kinds of immigrants that this administration likes or appreciates, and it just created an atmosphere of terror.

CHURCH: Donald Trump's approval rating for immigration in his first 100 days in office is underwater. That's according to new CNN polling that shows most Americans think he has gone too far with deportations by failing to follow due process, and the majority are concerned that the administration is not following the law.

What's been your reaction to this overall, and why do you think Donald Trump chose this extreme path when even some of his supporters don't like it?

SHEBAYA: I mean, he is doing to be fair, exactly what he said he was going to do. He was going to -- he said that he was going to deport everyone, and he said that he was going to do a mass enforcement approach. And that's exactly what we're seeing.

And when you see it in practice, it's extremely outrageous and frightening and cruel and shocking, like you're seeing people who are being arrested, deported, detained, and it's this like, you know, grab them first and then think later approach that is manifesting across all areas of the immigration space, and it's been leading to really terrible consequences for people.

We're seeing all kinds of wrongful deportations, people who are ending up in El Salvador without any rhyme or reason to it. People who like this family with U.S. citizen children who also end up in precarious circumstances without any regard for the law.

And I do think that when you say you're going to do mass enforcement, the way that people's imagination goes is like they don't really see what that means, until it starts to play out in practice.

CHURCH: Sirine Shebaya, thank you so much for talking with us. Appreciate it.

SHEBAYA: Thank you so much for having me.

CHURCH: The board of directors at Tesla has begun the process of replacing Elon Musk as CEO. That is, according to a report from The Wall Street Journal, citing anonymous sources.

The Journal says it's not clear whether the search is ongoing or if Musk was even aware of it. Tesla reported last week that both sales and profits plummeted in the first quarter.

Musk announced the same day that he was stepping back from his government work to focus on his electric car company, he received a friendly farewell at a cabinet meeting Wednesday.

(BEGIN VIDEO CLIP)

ELON MUSK, CEO, TESLA MOTORS: A tremendous amount has been accomplished in the first 100 days. As everyone has said, it's more than has been accomplished in any administration before ever, period.

TRUMP: You know, you're invited to stay as long as you want but at some point, he wants to get back home to his car.

(END VIDEO CLIP)

CHURCH: Musk claims his DOGE team has cut about $160 billion in government spending. That figure has been disputed, and it's far short of his initial goal to cut $2 trillion.

Just ahead, parents in Gaza are struggling to feed their children due to the long Israeli blockade. We will have a closer look at this human made crisis.

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[02:29:32]

CHURCH: Israel is facing a national emergency and seeking international help to battle wildfires burning out of control near Jerusalem. More than a dozen people have been taken to hospitals because of the fires fueled by dry conditions and strong gusty winds.

At least 10 communities have been evacuated, and authorities had to close the main highway connecting Tel Aviv and Jerusalem.

No word yet on what caused the fires. They're burning very close to where another wildfire broke out last week.

[02:30:00]

Gaza is on the cusp of an all-out and entirely-preventable famine, nearly two months after a total blockade. Israel is not letting in any humanitarian aid to pressure Hamas to release the remaining hostages. But rights groups say starvation is being used as a weapon of war. CNN's Jeremy Diamond has our report. A warning though, it contains images that are difficult to watch.

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JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT (voice-over): Inside her fly-infested tent, Iman Rajab (ph) is doing her best to keep her six children alive. Today, survival looks like this, sifting the half bag of flour she found on a garbage dumpster in Gaza City after all of its bakeries shut down. It is rancid, crawling with pests and clear signs of contamination. But Rajab (ph) hopes she can salvage enough to make bread for her children.

My kids are vomiting after they eat it. It smells horrible, she says. I keep cleaning it and it won't get clean. But what else can I do, she asks, what will I feed my children if not this.

Rajab (ph) is one of hundreds of thousands of parents in Gaza struggling to feed their children, an entirely manmade crisis that is rapidly spiraling. For nearly two months now, Israel has carried out a total siege of Gaza, refusing to allow a single truck of humanitarian aid or commercial goods into the Strip.

Israel says it is trying to pressure Hamas into releasing the hostages, but it is civilians in Gaza who are paying the heaviest price.

There is no food, no nothing. Death is easier than this life, this elderly woman says. This soup kitchen in central Gaza can now only provide one meal a day to those who are growing increasingly desperate.

This man says he has been standing in line for hours hoping to feed his family. These scenes an echo of last summer when hunger swept across Gaza, killing 52 Palestinians according to the Ministry of Health. The Biden administration pushed Israel then to let in aid. There is no such public pressure from the White House now, which says it backs Israel's tactics. Food warehouses are now barren.

YASMIN MAYDHANE, EMERGENCY COORDINATOR, WORLD FOOD PROGRAMME: We are in a position now where over 400,000 people that were receiving assistance from our hot meal kitchens, which is the last lifeline for the population, is in itself grinding to a halt.

DIAMOND (voice-over): Cases of acute malnutrition are now spiking. United Nations said nearly 3,700 children were diagnosed in March, 85 percent more than the previous month. Five-year-old Osama al-Raqab (ph) is among those most severely affected by Israel's blockade, which has exacerbated his pre-existing medical conditions. He has lost eight pounds in the last month and now weighs just 20 pounds. His skin sticking to his bones, every movement is painful. Because of this war, my son has reached this stage she explains. Now, he can barely walk. I have to carry him everywhere. Every day his condition worsens. Every day Israel prevents food from getting into Gaza, Osama's (ph) life becomes more at risk.

Jeremy Diamond, CNN, Jerusalem.

(END VIDEOTAPE)

CHURCH: India has shot its airspace to Pakistani Airlines, as tensions soar over the recent massacre in Kashmir. The reciprocal move comes after Pakistan closed its airspace to Indian Airlines last week. The two countries have been engaged in tit-for-tat hostilities after the killing of 26 tourists in Indian-administered Kashmir. India accused Pakistan of being involved in the attack. Pakistan has denied any responsibility.

The U.S. Secretary of State has urged both sides to de-escalate after a Pakistani official claimed to have credible intelligence that India would soon take military action. China is also urging restraint.

Buckingham Palace is notoriously tight-lipped about the royal family's health crises. Just ahead, the occasion King Charles used to reflect on his challenges.

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[02:39:05]

CHURCH: May Day events will be getting underway around the world in the coming hours. Thousands of Argentinean workers started early with a huge rally on Wednesday, a day before the holiday. They protested against the high cost of living and demanded new wage negotiations. May Day or the International Workers' Day dates back to the 1880s. It became an international holiday after a deadly clash during a labor strike in Chicago. More rallies are expected to be held from South Korea to Europe to Latin America.

Britain's King Charles has shared his thoughts on dealing with his cancer diagnosis. The King hosted a reception in honor of community- based cancer support groups Wednesday at Buckingham Palace.

[02:40:00]

In a statement, Charles said that while receiving a cancer diagnosis can be daunting and at times, frightening, "The darkest moments of illness can be illuminated by the greatest compassion." He went on to say that having cancer gave him a deeper appreciation for the organizations he supported before he got sick. Both the King and his daughter-in-law, Catherine, Princess of Wales, were diagnosed with undisclosed forms of cancer last year.

CHURCH: I want to thank you so much for joining us. I'm Rosemary Church. "World Sport" is coming up next. Then I'll be back at the top of the hour with more "CNN Newsroom." Do stick around.

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