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China Says It's Considering U.S. Trade Talk Proposals; Waltz Out as National Security Adviser, Tapped for U.N. Role; U.S. Trying to Calm Tensions Between India and Pakistan; Judge: Alien Enemies Act Unlawfully Used for Deportations. Aired 12-1a ET

Aired May 02, 2025 - 00:00   ET

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

JOHN VAUSE, CNN INTERNATIONAL ANCHOR: Ahead on CNN NEWSROOM.

[00:00:03]

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: At a certain point, I hope we're going to make a deal with China. We're talking to China.

(END VIDEO CLIP)

VAUSE: No, they're not, but Beijing says multiple approaches from the U.S. to begin talks are now being evaluated.

The U.S. national security advisor out of a job.

(BEGIN VIDEO CLIP)

BRET BAIER, FOX NEWS ANCHOR: Why was Mike Waltz let go?

J.D. VANCE, U.S. VICE PRESIDENT: So, he wasn't let go. He is being made ambassador to the United Nations.

(END VIDEO CLIP)

VAUSE: The first major shakeup of Donald Trump's second term. But why was Mike Waltz shown the door?

And the Israeli prime minister says the quiet part out loud. Defeating Hamas is the main priority of the war in Gaza, he says, not saving hostages.

ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with John Vause.

VAUSE: The wording is subtle and nuanced, but a statement from China on Friday hints at a slightly softer tone over holding trade talks with the United States.

For weeks now, the U.S. president has repeatedly said direct talks with China are underway. Officials in Beijing have repeatedly said they're not, but remain open to the possibility.

And on Friday, an unnamed spokesperson at the Commerce Ministry said Beijing had taken note and was evaluating recent statements by White House officials that they would be willing to negotiate over tariffs.

Let's take a look at how markets in Asia are reacting to the news. It's gone up. It's all positive territory there. The Nikkei in Tokyo up by almost a percent, Hong Kong up by more than 1.5 percent. The Seoul KOSPI up just a touch, as well. Shanghai is closed.

Now, looking -- they have been looking for some chance here that there will be a breakthrough around the world of a breakthrough in Donald Trump's tariff war. And maybe this is how some are seeing this statement from Beijing.

Let's go to Beijing now. CNN's Marc Stewart, he is live for us.

So, Marc, for a start, government offices are actually closed. It's the Labor Day holiday there across China, which presents its own unique challenges in the reporting here. But explain the wording of this statement and what it may indicate.

MARC STEWART, CNN CORRESPONDENT: Right, John. We were just talking about it among colleagues. The fact this came out at 8 a.m. on a Friday of a holiday weekend really does say a lot.

But if we look at the messaging here, it's very much message received and nothing more, because as you know from your time reporting in China, the last thing that Beijing wants is to appear as if the United States is telling it what it can and cannot do, on what terms, and what kind of timeline.

So, the response that we have received from Beijing is, well, for lack of better words, very diplomatic and very precise in the sense it doesn't want anyone to perhaps read further in the lines. Let me read to you just a portion of it.

It simply says, "The U.S. has recently sent messages to China through relevant parties, hoping to start talks with China. China is currently evaluating this."

It's assessing this. And that's where Beijing stands right now. No timetable, no indication of what would be a next step. No indication if we would see any kind of further meetings.

Because it was just days ago, earlier this week that, once again, Beijing has portrayed and really projected a very defiant stance toward the United States. We saw a video released from the government talking about how China won't kneel down, how bullies are paper tigers, a veiled reference to the United States.

Neither side wants to appear as if it's making the first move. As we have heard from the White House, President Trump feels China should make the first move.

And China certainly does not want to ever be seen on the global stage, as well as within the country, as perhaps caving in as far as backing down.

As far as markets are concerned, as you mentioned, we are seeing a lot of green. I think we are at a moment in time right now where observers are watching this feud between the world's two largest economies, looking for any kind of positive sign that would give things a boost.

We are seeing gains today, slight gains in the Nikkei and in the Hang Seng, as well as in Seoul, of course, South Korea and Japan being big automotive centers, which are dealing with tariffs of their own.

But John, perhaps this is the first step in a much larger or longer trade battle that we could see unfold. No clear indication of resolution will take place. But as you said, this is a soft move by Beijing to indicate that perhaps it is willing to have a broader conversation, John.

VAUSE: Marc Stewart there in Beijing. Thank you. It is such an indication of how tense things are right now. Everyone is looking for any kind of indication that this trade war could come to an end. We'll see what happens. Thanks for being with us.

Now to the first major shakeup of Donald Trump's second term, with the White House national security team in apparent disarray over Signal- gate.

President Trump has removed national security advisor Mike Waltz. He'll be heading to the U.N. as U.S. ambassador. Assuming he is approved by Senate confirmation.

The move comes after Waltz admitted he mistakenly included a journalist to a Signal chat group with senior administration officials discussing plans to attack Houthi rebels in Yemen.

Signal is not authorized by the White House to be used for highly classified discussions.

Vice President J.D. Vance says don't call this a demotion.

(BEGIN VIDEO CLIP)

VANCE: So, he wasn't let go. He is being made ambassador to the United Nations, which of course, is a Senate-confirmed position. I think you can make a good argument that it's a promotion.

The media wants to frame this as a firing. Donald Trump has fired a lot of people. He doesn't give them Senate confirmed appointments afterwards. What he thinks is that Mike Waltz is going to better serve the administration, most importantly, the American people, in that role.

(END VIDEO CLIP)

VAUSE: Images from Wednesday's cabinet meeting show Waltz browsing through Signal app messages on his phone, including ones from the vice president and director of national intelligence.

The White House says Signal is an improved app that's loaded onto government phones, but it is not approved for top-secret information. U.S. Secretary of State Marco Rubio will take over the role of

national security advisor on a temporary basis. He's also serving as acting administrator of the U.S. Agency for International Development and as well as the National Archives. He's a busy man.

Meantime, a U.S. official tells CNN the Pentagon inspector general is looking into a second Signal chat in which Defense Secretary Pete Hegseth discussed military planning. This one included his wife, brother, and personal lawyer.

More details now from CNN's Jeff Zeleny, reporting in from the White House.

(BEGIN VIDEOTAPE)

JEFF ZELENY, CNN CHIEF U.S. NATIONAL AFFAIRS CORRESPONDENT: In one of the first big staff shake-ups of this new Trump administration, President Trump sending --

ZELENY (voice-over): -- his national security advisor, Mike Waltz, to the United Nations and sending Marco Rubio, the secretary of state, into the West Wing, to be the temporary national security advisor.

This has been long in the works. Mike Waltz, who, of course, initiated the -- one of the biggest scandals of this administration, with the group chat on Signal about those war plans in Yemen a couple of months ago. The president finally decided that it was time to send him away.

Now, this was a decision that could have been reached quite a while ago --

ZELENY: -- but we are told that the president and the White House did not want to essentially give the satisfaction to "The Atlantic" magazine or other reporters who had written skeptically about this.

But Mike Waltz will be elevated, if you will. But it's a Senate- confirmed position to be the ambassador to the United Nations.

But for the president, it is not a position that he is that interested in. He has never thought very highly of the U.N., to say the least.

So, there's no doubt that Marco Rubio, a onetime rival to Donald Trump, now is one of his closest advisers. He'll be working just steps away from the Oval Office, as well as being secretary of state.

But the bottom line to all of this is, in this big shakeup of this administration, the president clearly wanted to keep Mike Waltz on the line, if you will, by giving him this other position.

He well remembers the four national security advisers from his first administration. Two of them wrote very harsh books about the president.

So, the president does not want that narrative to set in.

They also think the administration -- one administration official telling us the president was eager to change the conversation about the economy, to be talking about this.

Jeff Zeleny, CNN, the White House.

(END VIDEOTAPE)

VAUSE: Beth Sanner is a CNN national security analyst and a former deputy director of national intelligence. And she is with us this hour from Washington.

Bethe, thank you for being with us.

BETH SANNER, CNN NATIONAL SECURITY ANALYST: I'm so happy to be here.

VAUSE: OK. Up until now, at least publicly, the president seemed to support his national security advisor while also downplaying the risks and the seriousness of using the unsecured messenger app Signal. Here's President Trump.

(BEGIN VIDEO CLIP)

TRUMP: He's a very good man, and he will continue to do a good job.

It's equipment and technology that's not perfect. And probably, he won't be using it again, at least not in the very near future.

I don't view Signal as important. I think it's fake news, really.

(END VIDEO CLIP)

VAUSE: So, did something happen for the president to change his mind? Some have also said that Waltz was a dead man walking even without the Signal controversy. So, what's your take on what actually happened?

SANNER: Yes. Yes, I think that the Signal controversy is really not at all what President Trump worries about. I think he worries about the fact that it made his administration look like it was bumbling and not organized, and that it made a mistake. That is a problem.

But I don't think this is, like, punishment or accountability for that Signal chat. I think it has much more to do with the idea that Waltz was not of the same mind as the president was, and that he was not really performing the duties well in terms of his ability to interact and drive the president's policy.

And that's -- that's kind of what the role is.

I think there was a clip or an article today about J.D. Vance saying that he had, in Iceland [SIC]. He's saying he had counseled Waltz about working better with people, you know, and -- and that's kind of the job.

VAUSE: Well, Waltz was fired on day 102 of Trump's second term. On day 101, just like every other member of cabinet, Waltz had nothing but lavish praise for the boss. Here he is.

[00:10:07] (BEGIN VIDEO CLIP)

MIKE WALTZ, FORMER U.S. NATIONAL SECURITY ADVISOR/NOMINEE FOR U.S. AMBASSADOR TO U.N.: Mr. President, the last four years, the world experienced a total lack of zero [SIC] leadership under -- under Biden.

And then we've had 100 days of your leadership with -- with respect, with strength, starting with there'll be all hell to pay.

(END VIDEO CLIP)

VAUSE: He did last longer in the job than Michael Flynn, who was the first senior White House official fired by Trump during his first term. Three other national security advisors followed him.

So, in broad terms, explain the role of the national security advisor. How important is it? And what does a high turnover in that job, how does that impact the presidency?

SANNER: Well, you know, that job is really central to all national security decision-making. And that person's role is really twofold. One is to advise the president on foreign policy, national security, and to be that person who's closest to him, who will go in and tell him what's going on and give him advice.

The second thing is really about process. And that's where the whole National Security Council comes in, that this person is -- their duty is to make sure that the whole national security team understands and follows the president's wishes, and that those wishes are implemented in foreign policies throughout all the agencies.

I actually think it was probably a good idea to fire him, because if you have a person that you do not trust is on the same page as you are on key foreign policy issues, for example, Iran, I think they were on very different pages. Then, you know, maybe this person can't execute your policy no matter how much flattery they do in public.

VAUSE: It was notable that Waltz was one of more than a senior -- a dozen senior White House officials, the entire national security team, if you like, who were on that group chat with him. So far, there's only been this one firing.

Notably, the defense secretary continues to have the complete and total support of the president, at least publicly. Listen to this.

(BEGIN VIDEO CLIP)

TRUMP: I want to thank the secretary of defense, Pete Hegseth, who's doing a really great job.

He's a tough cookie. They don't know how tough he is. Secretary of Defense Pete Hegseth.

Hegseth is doing a great job. He had nothing to do with this.

(END VIDEO CLIP)

VAUSE: When it comes to Hegseth, it doesn't seem to be the backroom chatter about his imminent demise like there has been about Waltz.

So, if one person and only one person is to be fired over Signal-gate, should it have been the defense secretary?

SANNER: Yes. So, I don't think it was about Signal-gate for No. 1. But if it was, yes. No, it shouldn't have been. It shouldn't have been Waltz. It should have been Hegseth.

Because he's the one who went -- took the chat from being an organizational chat, which was, everybody check your classified systems and look for a paper we're going to discuss. And Hegseth is the one, and J.D. Vance are the ones that -- that made this conversation a classified conversation. And Hegseth is the one that shared the classified information.

So, yes, that is absolutely the case. Signal is not safe for talking around information if your device or the environment where you're using your device is compromised.

VAUSE: Beth, thank you so much for being with us. Really appreciate your insights and your experience, as well. Thank you.

SANNER: Thank you.

VAUSE: How to de-escalate an escalating crisis between two nuclear armed neighbors. Up next, the U.S. steps in as Pakistan and India inch closer to a direct confrontation after last week's deadly terror attack in Kashmir.

CNN reports from the region in a moment.

And the Israeli prime minister publicly declares his overall goal of the war in Gaza, sparking outrage as he falls in line with the far- right extremists in his coalition government.

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VAUSE: Well, during a speech marking Israel's, Prime Minister Benjamin Netanyahu laid out his overall priority for the war in Gaza. Defeating Hamas is more important, he says, than freeing the last remaining hostages, sparking an immediate backlash from the families of hostages and putting him at odds with most Israelis.

Here's what he said: "We have many objectives, many goals in this war. We want to bring back all of our hostages. That is a very important goal."

He went on to say that "in war there is a supreme objective, and that supreme objective is victory over our enemies, and that is what we will achieve." Earlier this week, his wife Sara was overheard on a microphone

indicating that fewer than 24 of the 59 hostages in Gaza are still alive. That also sparked concern from the families of hostages over a lack of government transparency.

Iran says nuclear negotiations with the U.S., which were tentatively scheduled for Saturday, have been postponed because of logistical and technical reasons, but there were no further details.

Meantime, the U.S. president, Donald Trump, is warning of sanctions for anyone who gets oil from Iran. He wrote this: "All purchases of Iranian oil or petrochemical products must stop, NOW," in all caps, adding that any Country or person who buys those products from Iran won't get to do business with the United States in any way, shape or form.

That appears to be a veiled swipe at China, which is a big purchaser of Iranian crude oil. New sanctions would be separate from the 145 percent tariffs President Trump placed on Chinese imports during the trade war, which is ongoing.

The U.S. is hoping diplomatic pressure will try and prevent open warfare between India and Pakistan. Tensions flared after gunmen killed 26 civilians in India-controlled Kashmir last week.

India accuses Pakistan of being involved in the attack. Pakistan denies that.

[00:20:04]

On Thursday, the U.S. defense secretary spoke with his Indian counterpart; and Wednesday, the U.S. secretary of state spoke with Pakistani and Indian officials.

CNN's Nic Robertson is in Islamabad with more on all the concerns about what a possible conflict could look like.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR (voice-over): Pakistan's army tested combat readiness Thursday, training, they say, meticulously planned to simulate battlefield conditions.

Tanks, troops, artillery and fighter jets brought together far from the front lines with India but a message for India, nonetheless.

Pakistan's army chief of staff saying, "Let there be no ambiguity. Any military misadventure by India will be met with a swift, resolute, and notch-up response. While Pakistan remains committed to regional peace, our preparedness and resolve to safeguard national interests is absolute."

India, too, testing its readiness for war. Battleships bristling with weapons, launching salvos of cruise missiles.

And later, on the Indian side of the border in disputed Kashmir, a safety drill these schoolchildren hope they'll never need. Practicing what to do if rising tensions along this de facto border with Pakistan flare to real fighting.

BALVIR KAUR, FORMER VILLAGE HEAD (through translator): Usually, 90 percent of the children living near border areas are aware of the safety measures, but we still need to make sure that they understand the need to keep themselves and their juniors safe.

ROBERTSON (voice-over): A week after a brutal attack killed 26 civilians in Pahalgam, some survivors still in hospital.

UNIDENTIFIED MALE (through translator): I heard two gunshots and saw a large gathering of people. When I reached the firing site, I rescued three individuals. We could not see a lot. We fled immediately after hearing gunshots.

ROBERTSON (voice-over): India says it has identified the attackers. Two of them, they claim, are from Pakistan and is blaming Islamabad, promising revenge.

NARENDRA MODI, INDIAN PRIME MINISTER: India will identify. Track and punish every terrorist and their backers. We will pursue them to the ends of the earth.

ROBERTSON (voice-over): Pakistan also warning India's retaliatory move to end a previously inviolate, decades-old water sharing agreement would be an act of war, if they followed through.

Tensions ratcheting up Wednesday. Pakistan's minister of information warning India was planning an imminent attack. Asked by CNN Thursday, he demurred on details.

UNIDENTIFIED FEMALE: Can you share what that intelligence is, sir?

We had very reliable, very authentic intelligence at the operational level. Obviously, operational details cannot be shared, but we had confirmed reports that India will attack Pakistan.

And this is not the first time along the tense frontier, tourists are returning close to the scene of the attack. But security, however, much tighter than before the sudden escalation in historic tensions.

UNIDENTIFIED FEMALE: Actually, we knew about the terrorist attack, but we still decided to come here. And we feel very safe when we come here. There are many army shooting days and nights to protect us, so we feel very safe and calm here.

ROBERTSON (voice-over): U.S., China, and U.N. officials are urging calm, hoping as it has in the past, diplomacy will prevail.

But these two nuclear armed neighbors have blown past international interventions before.

Thursday. India taking tensions a tiny notch up, banning Pakistani airlines from their airspace, matching Pakistan's move. Last week.

Nic Robertson, CNN, Islamabad, Pakistan.

(END VIDEOTAPE)

VAUSE: A Russian airstrike on Zaporizhzhia in Ukraine has killed one person, wounded eight others.

According to Ukrainian officials, the strike left private homes and residential buildings in flames Thursday night. At least one person was left believed trapped under the rubble, with emergency crews working to try and reach him.

And denials from Ukraine that civilians in the Russian-occupied part of the Kherson region were actually targeted. Russia says seven people were killed in a drone strike on a market southeast of the city of Kherson on Thursday.

Ukraine says it did not strike the market; also says the attack only hit military personnel who were hiding among civilians.

[00:25:02]

Multiple sources tell CNN that new intelligence suggests Vladimir Putin may have shifted his short-term priorities in Ukraine.

Until recently, intelligence officials thought Putin might have enough momentum to seize all of Ukraine. But now U.S. and Western officials say Putin wants to focus on holding territory which he already controls.

They say he also wants to improve relations with the United States to help Russia's struggling economy. In addition, senior U.S. officials say even if Putin signs a peace deal, he may try to resume the war at a later date.

This just in to CNN. A Gaza freedom flotilla says one of its ships is on fire after what it claims was a drone attack off the coast of Malta in international waters.

The group telling CNN 30 people were on board the ship when the attack happened just after midnight local time. They say the vessel now has a hole in its side and is sinking.

They issued an S.O.S. The flotilla -- the flotilla did not accuse any group or government of launching the strike. CNN cannot independently, verify the information, which we are receiving, as well as the images.

When we return, a federal judge says President Trump exceeded his authority while cracking down on immigration. Details of that ruling and what it actually means moving forward.

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[00:30:59]

VAUSE: Welcome back everyone. I'm John Vause. Let's take a look at today's top stories. Israeli Prime Minister Benjamin Netanyahu has newly angered the

families of hostages held in Gaza during remarks on Israel's Independence Day. He said it's important to bring home those hostages, but claimed the supreme objective of the war is victory over our enemies. That means Hamas.

Donald Trump has removed his national security advisor, Mike Waltz, in the wake of the Signal chat scandal. But the U.S. president says he will nominate wiles to be ambassador to the U.N.

Waltz admitted he mistakenly added a journalist to a group chat on Signal about military plans in Yemen.

And it appears the European Union is making progress towards a trade deal with the U.S. The deal would involve buying more than $56 billion worth of American products.

But the E.U.'s trade commissioner suggests President Trump would still need to abandon his 10 percent across-the-board tariff on European goods.

Another legal setback for the Trump administration, with a federal court in South Texas ruling there is no legal basis for mass deportations based on using the 18th century Aliens Enemy [SIC] Act. Use of the Alien Enemies Act is now being challenged in several courts across the country.

CNN's Priscilla Alvarez has details on why this ruling is different.

(BEGIN VIDEOTAPE)

PRISCILLA ALVAREZ, CNN CORRESPONDENT: A federal judge in Texas issued a significant blow to the Trump administration and its immigration agenda on Thursday, in a ruling that called the --

ALVAREZ (voice-over): -- invoking of the Alien Enemies Act unlawful. That is an act that the administration has leaned on to swiftly deport migrants out of the United States.

Now, the basis of the act, according to administration officials, is that the Venezuelan gang, known as Tren de Aragua, has engaged in an invasion of the United States.

But a federal judge who was appointed by Donald Trump cast some doubt on that, saying that the president exceeded his authority by relying on this sweeping wartime authority that has only been used three times, and all during wartime.

ALVAREZ: Also noting that there is no underlying invasion or predatory incursion which would need to be met for the invoking of the 1798 law.

Now, in the ruling, the judge said the following --

ALVAREZ (voice-over): -- quote, "Allowing the president to unilaterally define the conditions when he may invoke the AEA and then summarily -- summarily declare that those conditions exist, would remove all limitations to the executive branch's authority under the AEA and would strip the courts of their traditional role of interpreting congressional statutes to determine whether a government official has exceeded the statute's scope."

ALVAREZ: Now, the American Civil Liberties Union attorney Lee Gelernt told me in a statement --

ALVAREZ (voice-over): -- that, quote, "This is the first court to squarely rule on the fundamental question of whether a wartime authority can be used during peacetime and properly concluded it cannot."

ALVAREZ: So, this is the key difference from the many other legal challenges that have popped up with the invoking of this wartime authority.

ALVAREZ (voice-over): Of course, there have been legal challenges nationwide to block the deportation of migrants who the administration has deemed eligible to be deported under this authority because the administration alleges they have ties to that gang, Tren de Aragua.

ALVAREZ: Now, as far as what this means for the individuals in this district, they cannot be deported under this authority in the Southern District of Texas.

Of course, this is likely to be appealed by the Trump administration, but for now it serves -- or rather, will be a hurdle for the administration, which up until this point has touted this authority and sought to use it.

Priscilla Alvarez, CNN, Washington.

(END VIDEOTAPE)

VAUSE: Self-driving cars. That's one thing. How about self-driving semis on U.S. freeways and highways? That could be a common sight fairly soon. That story next on CNN NEWSROOM.

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VAUSE: The technology for self-driving cars may not be ready for prime time, at least not yet. But maybe not the case for semi-trailers.

On U.S. highways and freeways in Texas, some have seen glimpses of a driverless big rig.

Now, the company behind the technology, Aurora, says testing lasted for four years. A safety driver was along for the ride all that time. But now the autonomous Aurora driver is on its own.

So far, just one truck has delivered goods for two customers. But Aurora plans more driverless trucks on the road by year's end.

Thank you for watching CNN NEWSROOM. I'm John Vause, back with more CNN NEWSROOM at the top of the hour. In the meantime, please stay with us. WORLD SPORT starts after a short break.

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(WORLD SPORT)

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VAUSE: A mere suggestion of a hint of a slightly softer tone from China on possible trade talks with the U.S. Ahead here on CNN NEWSROOM.

(BEGIN VIDEO CLIP)

TRUMP: At a certain point, I hope we're going to make a deal with China. We're talking to China.

(END VIDEO CLIP)

VAUSE: Well, China says they're not. But multiple approaches for talks with the U.S. are being evaluated. But Trump's tariffs, they say, remain an obstacle.

Mike Waltz is out as U.S. national security advisor, but why?

(BEGIN VIDEO CLIP)

BAIER: Why was Mike Waltz let go?

VANCE: So, he wasn't let go. He's being made ambassador to the United Nations.

(END VIDEO CLIP)

VAUSE: So, he's being let go. Many believe he was a dead man walking long before his role in Signal-gate.