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Trump Says U.S.-Nippon Steel Deal Not Finalized; Trump Accuses China of Violating Trade Agreement; Controversial New Gaza Aid Group Not Screening Recipients; Musk Exits Government Role but Will Keep Helping Trump; Tourist Rentals in Spain Create Scarcity for Permanent Residents. Aired 3-3:45a ET

Aired May 31, 2025 - 03:00   ET

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

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BRIAN ABEL, CNN ANCHOR AND CORRESPONDENT (voice-over): Welcome to all of you watching around the world and streaming on CNN Max, I'm Brian Abel in Atlanta.

Coming up on CNN NEWSROOM, steep steel tariffs. U.S. president Donald Trump ups the tariffs on steel and aluminum to 50 percent in his continuing trade war.

Russia strikes near the NATO border. Kyiv says further peace talks are in doubt because Moscow isn't staying true to its word.

And Elon Musk bids farewell to the White House. But the leader of DOGE may not really be going anywhere.

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ABEL: We are kicking off with another trade war decision. U.S. president Donald Trump says he's doubling tariffs on steel and aluminum imported into the U.S. from other countries to 50 percent. The measure would take effect on Wednesday as a legal battle brews over the president's authority to impose sweeping tariffs.

He made the announcement at a U.S. Steel facility in Pennsylvania on Friday. He was there to celebrate the purchase of U.S. Steel by Japan's Nippon Steel, a proposed deal he once vowed to oppose. But he says the agreement has not been finalized.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: The investment is controlled by the United States. And more importantly, they're spending the money on brick and mortar. You can't take it.

What are you going to do?

Pick it up and move it to Japan?

That's not going to happen. And you know, I rejected this about four times now. And when they finally got it right, I liked it a lot. And you could see how happy the steelworkers were. More importantly, you could see, from the union's standpoint, the union loved it.

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ABEL: Local union officials who represent the workers at the Pittsburgh area plants backed the deal, splitting from the national leadership, who say it represents a full purchase by Nippon. For more on all this, CNN's Kristen Holmes reports.

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KRISTEN HOLMES, CNN NATIONAL CORRESPONDENT: The big news out of West Mifflin, Pennsylvania, the doubling of tariffs on steel. Donald Trump announcing those tariffs would go from 25 percent to 50 percent. But the comment that really raised a lot of eyebrows was how he said he got to this 50 percent number. Take a listen.

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TRUMP: I said to the group, would you rather have a 40 percent increase?

Because I was thinking about 40 when I came.

I said, would you rather have a 40 percent or a 50 percent?

They said, we'll take 50. I said, I had -- I had a feeling you were going to say that. So congratulations.

(END VIDEO CLIP)

HOLMES: Donald Trump seemingly there saying that he came up with 50 percent off the cuff, on the fly, posing these numbers to advisers and deciding to get on stage and announce it.

Of course, this is bringing up even more questions, as so many are wondering what the end game is with these ongoing trade wars, when these deals or if these deals are coming.

Now the other thing I want to point to here about this deal with Japanese company Nippon and U.S. Steel, remember, this was a very controversial deal. It was one that, on the campaign, Donald Trump said he would never allow. Joe Biden actually blocked this deal.

Now Donald Trump announced this last week. He said it wasn't an acquisition, a Japanese acquisition of U.S. Steel, but instead it was a partnership.

But no parties today in the announcement actually answered the key question everyone wants to know, which is how much of U.S. Steel will the Japanese company Nippon Steel own at the end of this deal?

Remember the controversy being that the steelworkers' unions did not believe that these companies should be -- that this company should own U.S. Steel. They didn't believe in this deal. Because of that, we still don't have answers on what exactly that looks like at the end of the day -- Kristen Holmes, CNN, West Mifflin, Pennsylvania.

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ABEL: President Trump is accusing China of violating an agreement with the U.S. American officials had expected China to ease export restrictions on rare earth minerals but that hasn't happened. Sources say both sides are trying to set up a call between presidents Trump and Xi to help get talks back on track. CNN's Marc Stewart has more.

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MARC STEWART, CNN CORRESPONDENT: Keep in mind, there is a 12-hour time difference between Washington and where I am in Beijing, China. So it's

quite possible we may not get any reaction from Chinese government officials until early next week at the earliest. It's possible we may see

some commentary from Chinese state media about President Trump's remarks, claiming China totally violated its agreement with the U.S.

Earlier on Friday. A government spokesperson was asked about some remarks made by Treasury Secretary Scott Bessent on Fox News that talks are a bit

stalled.

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But that official said China has made its position clear in the past and China tends to keep a measured approach to these things. And if

there was a sticking point, it wouldn't necessarily address it immediately. Its position has been consistent. There are no winners in a trade war.

Protectionism is harmful and goes against the will of the people.

There is no question it's a tense time. As Secretary of State Marco Rubio said, the United States will, quote, aggressively revoke visas for Chinese

students. It's a move being met with opposition from China. On Thursday, the government said it lodged a formal protest.

Marc Stewart, CNN, Beijing.

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ABEL: Ukraine says Russian drones have struck just five kilometers from NATO's border. The statement says the target was a post office in a Ukrainian town on the Danube River, across from NATO member Romania.

The structure was destroyed on Friday but there are no reports of injuries. Romania says the drones did not violate its airspace.

Meanwhile, Ukraine is keeping Russia guessing about the potential next round of peace talks in Istanbul. Moscow wants to meet on Monday. But during a conversation with his Turkish counterpart on Friday, Ukrainian President Zelenskyy said Kyiv is still on the fence because Russia is refusing to share its blueprint for a possible ceasefire.

Israel is pouring cold water on what would be a landmark visit. Foreign ministers from around the region were planning to meet with Palestinian leaders in the occupied West Bank under Israeli control. Those details coming up.

Plus, Donald Trump is expressing optimism about a potential Gaza ceasefire and hostage release deal. Israel has accepted a U.S.-backed proposal.

But will Hamas?

What we know about the terms of the agreement straight ahead.

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ABEL: An Israeli official tells CNN that Israel will block a Palestinian plan to host a delegation of foreign ministers in the occupied West Bank. Ministers from Saudi Arabia, the UAE, Egypt, Jordan, Qatar and Turkiye were expected to attend.

Because Israel controls access to the West Bank, the ministers would need Israeli approval to travel to the meeting. Saudi Arabia's crown prince is pushing for international recognition of Palestinian statehood.

Meanwhile, there's new international pressure on Israel to allow more aid into Gaza. Aid distribution has been chaotic in the first days of a controversial new plan backed by Israel and the U.S. On Friday, the U.N. issued a new plea to get more aid to Gaza's 2 million people.

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JENS LAERKE, OCHA SPOKESMAN: This limited number of truckloads that are coming in, is a trickle. It is drip-feeding food into an area on the verge of catastrophic hunger. It's not a flood. Gaza is the hungriest place on Earth.

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ABEL: U.S. president Donald Trump says he believes negotiators are very close to reaching an agreement for a hostage release and ceasefire in Gaza. He says he'll share more in the next day or two. More now from CNN's Jeremy Diamond in Tel Aviv. (BEGIN VIDEOTAPE)

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, as.

President Trump.

Says that Israel and.

Hamas are.

Quote, "very close to a ceasefire agreement,"

I'm learning.

New details.

About that latest U.S. proposal that's aimed at bridging the gap between the two sides.

Now we know that this proposal would involve a 60-day ceasefire, the release of 10 living and 18 deceased hostages. I'm now also learning that the negotiations to end the war in Gaza will begin on the first day of the ceasefire and will be presided over by the U.S. special envoy, Steve Witkoff.

We also are learning about the timing of the release of these hostages. Half of both the living and the dead hostages will be released on the first day of the agreement. The other half would be released on the seventh day.

In addition to that, 125 Palestinian prisoners serving life sentences would be released, as well as over 1,000 Palestinians from Gaza who have been detained during the course of the war.

Now there are no guarantees from the United States in this proposal to end the war nor any assurances that a ceasefire will be extended as long as Israel and Hamas are continuing to negotiate.

And that is revealing itself to still be a sticking point in these talks with Hamas. The current proposal says that the negotiations may be extended, subject to the agreement of the parties.

It's also important to note that there's some specific language in this proposal relating to president Trump saying that he is committed to ensuring good faith negotiations continue and also that he would be the one to announce a ceasefire agreement.

Now Hamas has not only demanded that the U.S. provide guarantees that a ceasefire will be extended past the 60 days, as long as negotiations are still ongoing to end the war; they are also asking that Israel be made to pull back to its military positions from the last ceasefire, meaning pulling back closer to the Israeli border.

Now as those negotiations continue, Gaza is still being roiled by a hunger crisis. And we are seeing these continued scenes of desperation surrounding these aid sites run by this controversial new U.S. and Israeli-backed Gaza Humanitarian Foundation.

We are also learning that the Gaza Humanitarian Foundation isn't conducting any screenings of Palestinians who are showing up to this site; no ID checks, no security checks.

And that's quite surprising, given the fact that Israeli officials have said the reason why this foundation is their preferred mechanism for getting aid into Gaza is because they will ensure that the aid only goes to civilians in need and isn't stolen or taken by Hamas.

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Beyond that, we know that the United Nations, for example, their aid agencies actually do conduct some ID checks, checking databases of family names and checking people off of a list so that people don't come back over and over again to get more than their provided ration.

And we are already seeing evidence of criminal gangs and merchants taking advantage of the lack of checks at these Gaza Humanitarian Foundation sites, with several eyewitnesses telling us that they saw people who were paid by the merchants going in, taking boxes that would then be resold on the black market.

Now the Gaza Humanitarian Foundation, they have told me that they are more concerned right now about feeding Gaza's population than conducting ID checks. They said they would continuously assess the situation to determine whether they will carry out ID checks in the future.

But what is clear is that Gaza's hunger crisis is very much still continuing, has yet to be alleviated by this new aid delivery mechanism nor by the trickle of aid that Israel has allowed into the Strip via the United Nations.

In particular, because Israel, according to the U.N., hasn't provided safe routes to get those aid trucks to the northern part of the strip where that hunger crisis is most acute -- Jeremy Diamond, CNN, Tel Aviv.

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ABEL: Earlier, I spoke with Gideon Levy, a columnist for Ha'aretz newspaper and former advisor to Shimon Peres. He described the challenges of turning this proposed interim ceasefire agreement into a more permanent end to the war.

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GIDEON LEVY, COLUMNIST, "HA'ARETZ": We are dealing now with an interim agreement, not with an agreement which will put an end to the war, an end to the starvation and end to the destruction.

I guess Israel will be forced -- and is forced to be ready by now to agree to the Trump plan. And Hamas, I guess, will somehow join it.

But this is not the end of the war and not the end of the terrible, terrible suffering of the Palestinian people. We will get some ease, will get some interval. But the main thing is to put an end to the war.

And I hope that, in the framework of the ceasefire, we will get to the end of the war. But this is far of being guaranteed because Israel and Netanyahu wants to continue this war.

ABEL: Gideon, we're showing some images now. But we have seen heartbreaking images coming out of Gaza as desperate Palestinians overwhelmed aid distributions, including what we just saw earlier, where security forces used stun grenades and fired warning shots.

What do images like this do for the chances of a ceasefire deal?

We know one of those counterpoints by Hamas is for humanitarian assistance to be done through United Nations channels.

LEVY: Somehow what did you expect?

I mean, this way to bring the humanitarian aid is no more than an experiment in human beings. You put two, three, four stations for supply for 2.3 million people who are starving for 2.5 months.

Now what do you expect them?

I mean, sure, it will create a big mess and violence and even shootings. It's heartbreaking. Obviously it's heartbreaking. But it is like this for the last 19 months, more or less.

We have to touch the core and the core is ending the war and obviously releasing all the hostages. But as long as we don't do this, those scenes will continue, maybe with a certain pause now but soon they will be renewed. I just want to remind ourselves that Israel violated the ceasefire agreement. So nothing is guaranteed.

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ABEL: Elon Musk has left the building with a handshake and a golden key to the White House. The billionaire moving on from his role as head of DOGE. But his political days may not be over yet.

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ABEL (voice-over): Welcome back to our viewers all around the world. I'm Brian Abel and you're watching CNN NEWSROOM. Let's check today's top stories.

An Israeli official tells CNN that Israel will block a Palestinian plan to host a delegation of foreign ministers in the occupied West Bank. Ministers from Saudi Arabia, the UAE, Egypt, Jordan, Qatar and Turkiye were expected to attend.

Because Israel controls access to the West Bank, the ministers would need Israeli approval to travel to the meeting.

President Volodymyr Zelenskyy says there's still no guarantee Ukraine will show up for potential peace talks with Russia. The Kremlin wants to hold the meeting in Istanbul on Monday. But Mr. Zelenskyy says Russia has not shared its blueprint for a possible ceasefire, which Ukraine says it has done.

U.S. president Donald Trump has announced new tariffs on steel and aluminum imported into the U.S. He says the rates will double from 25 percent to 50 percent starting on Wednesday.

Mr. Trump says the move will, quote, "further secure the steel industry in the United States."

Elon Musk is no longer a special government employee. Friday was the billionaire's last day in charge of the of the Department of Government Efficiency. CNN's Jeff Zeleny has more.

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JEFF ZELENY, CNN CHIEF NATIONAL AFFAIRS CORRESPONDENT: The world's richest man, Elon Musk, takes his leave from president Trump's orbit on Friday at the White House in a very fond farewell in the Oval Office.

It was really quite something. These two men have been essentially joined at the hip for most of this administration and even before, going back to the election last summer, when Elon Musk invested some $275 million with the hope of electing Donald Trump as president once again.

He played a key role in shaping the cabinet and other agencies. And, of course, he led the Department of Government Efficiency.

There are many questions about the actual fallout and the after-effect of Elon Musk's role in government. He pledged at one point to trim some $2 trillion from the government coffers.

That did not happen. He scaled that back to $1 trillion and then much less than that. Of course, there was significant fallout in terms of tens and tens and thousands of government employees that decided to leave on their own or their agencies were closed.

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But on Friday in the Oval Office, the president and Elon Musk had nothing but kind words to say for one another.

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TRUMP: We are totally committed to making the DOGE cuts permanent and stopping much more of the waste.

ELON MUSK, PRESIDENTIAL ADVISER: I expect.

To continue to provide advice.

Whenever the president would like advice.

TRUMP: I hope so.

MUSK: I mean, I'm -- yes, it's -- I expect to remain a friend and an advisor. And certainly if there's anything the president wants me to do, I'm at the president's service.

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ZELENY: Now in recent weeks, there's no doubt that Elon Musk's influence has been waning here at the White House. He was less visible than he was before. That's largely because his own private enterprises were punishing him.

Essentially, the stock on Tesla, for example, SpaceX as well, they wanted him to make a choice between serving in the government and working in the private sector. So he did make that choice.

And on the way out the door, he was somewhat critical of the president's administration and the agenda as well, saying the big budget bill passed by the House, pending in the Senate, would not do enough to reduce government spending.

But again, on Friday, all smiles in the Oval Office, the president saying Elon Musk will be welcome back as an advisor at any point. Of course, he is still the world's richest man -- Jeff Zeleny, CNN, the White House.

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ABEL: Ron Brownstein is a CNN senior political analyst and Bloomberg opinion columnist and he is joining us from Los Angeles.

And, Ron, we had this Oval Office sendoff ceremony capping off this chapter, at least, of DOGE and Musk in power in Washington. He said he had set out to identify wasteful spending and cut it out.

So how much of his mission did he actually accomplish?

And at what cost do you estimate?

RON BROWNSTEIN, CNN SR. POLITICAL ANALYST: Yes, it's a really, really good question, especially the last part of it. I mean, you know, look, Musk came in with the kind of mindset -- almost reminded me of one of those corporate raiders of the '80s, you know, like Jack Welch, say, at GE.

Where the staff, the people who worked at the agencies, everyone who was part of the institution knew nothing. And he was the savior from the outside.

And basically it was done as kind of a hostile takeover of the federal government, which is a very big institution. And, you know, they rattled a lot of windows. They broke a lot of glass. They caused a lot of people to leave the government but they did not fundamentally change the fiscal trajectory of the federal government.

In fact, the tax and spending bill that Trump is now championing and moving through Congress would vastly expand the deficit, overriding any impact of DOGE. And I think, you know, it is a reminder; if you want institutions to change, ultimately, you need more than a chainsaw.

You maybe even need more than a scalpel. You need kind of a vision that people can rally around. And that was very much not Musk's approach. It was come in, fire, slash and basically try to impose his will from the outside in.

ABEL: Well, this may not be the last that Washington sees of the Tesla CEO, president Trump saying this today.

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TRUMP: Elon is really not leaving. He's going to be back and forth. I think I have a feeling. It's his baby and I think he's going to be doing a lot of things. But Elon's service to American has been without comparison in modern history.

(END VIDEO CLIP)

ABEL: But given the public's view of Musk and his work in D.C., that's showcased by a Marquette University Law School poll, that's finding a nearly 60 percent unfavorable rating.

You couple that with the losses taken by Tesla and the brand's standing, the multiple failed Falcon Heavy rocket launches in a row by another of his companies, SpaceX, what is the likelihood of Musk's attention coming back to our politics?

What would be that appetite for that in Washington?

BROWNSTEIN: Yes, I can't imagine the circumstances under which he would again have as visible a public role as he had in the early months of the Trump presidency, in the final months of the Trump campaign.

I don't think it worked out for either side. I mean, as you point out, Musk really kind of tarnished his brand image with precisely the kind of voters that Tesla in particular would depend on.

I mean, who buys EVs?

They tend to be college-educated, urban voters who are the most, I think, the constituency that is the most outraged by many of the things Musk did and said, not only here but in Europe, where the losses have been even greater in terms of market share than in the U.S.

And from the other end, I think Musk did serve some value to Trump as kind of a heat shield, a way of deflecting focus. But he also became a galvanizing kind of force or a lightning rod for Democrats to mobilize turnout.

I mean, we saw very clearly in that Wisconsin state supreme court election this year that Democrats were able to get their voters off the couch.

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Around the argument that you don't want to let Musk buy a seat on the Wisconsin court.

So I think from both ends, from his expectations and even from the Trump and their allies' expectations, it doesn't seem like there's a lot of percentage in relying on him to, again, be such a visible public face for -- in a political role.

I think what Republicans would like if he would go back to writing checks and he has said he has not, does not intend to do that. We'll see.

ABEL: Musk said this today about DOJ's outlook. Take a listen.

BROWNSTEIN: Yes.

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MUSK: I liken it to Buddhism. It's like a way of life. So it is permeating throughout the government. And I'm confident that, over time, we'll see $1 trillion of savings and reduction in -- $1 trillion of waste and fraud reduction.

(END VIDEO CLIP)

ABEL: You know, obviously, that $1 trillion was a goal after $2 trillion was originally a goal. I think it's somewhere in $170-175 billion right now.

But with what he said there, do you see DOGE truly fading away with Musk doing so?

Or does it morph into anything?

BROWNSTEIN: DOGE has always been something of a sideshow in terms of the real challenge of the federal budget. You know, the saying, the federal government is an insurance company with an army, I mean, the domestic discretionary spending that DOGE focuses on.

Cutting, you know, jobs in the federal government, rescinding individual contracts is simply not the driver of federal debt. It's the growing expenditures on entitlement programs -- Social Security, Medicare and Medicaid -- as American society ages.

That is something that is, you know, is -- can only be really attacked legislatively. And in fact, Republicans are making major cuts in Medicaid in the budget there going forward. And I think, as I said, I think, you know, Musk's experience showed the limits of a kind of chainsaw approach of trying to save federal spending.

I think in many ways, Brian, you know, what DOGE became was an effort to advance ideological causes under the umbrella of promoting efficiency. Once you undo USAID, once you dissolve or unravel the networks of nonprofit groups they work with around the country.

In the same way, once you close labs at key research universities because their funding is gone, it's going to take a while to rebuild that capacity, even if the next president wants to.

So simply restoring the funding, you know, you can flip on the light switch; it doesn't mean that there's going to be a light at the other end of the circuit to go on. And I think that is a real and present dynamic, that it simply is not going to be possible very quickly to undo the things that Trump has done, for better or worse.

DOGE has contributed to disabling the government's capacity in a lot of areas where it has been relied on by both domestic and international constituencies in the past.

ABEL: All right, Ron Brownstein, appreciate your time and expertise. Thank you.

BROWNSTEIN: Thanks for having me.

ABEL: Spain is one of the world's top vacation spots but tourist rentals are cutting into residential housing. We'll speak with a Spanish minister to learn why officials are taking aim at Airbnb.

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ABEL: Spain is the second most visited country in the world, right behind France. Spain pulled in some 98 million tourists last year alone. On sites like Airbnb, there's been a surge in Spanish homes listed as vacation rentals. But this has contributed to a lack of available housing for residents.

This month, officials demanded the removal of nearly 66,000 Airbnb listings for violating regulations on tourist lodgings. Bank of Spain data shows the country has a deficit of up to 450,000 residential housing units. The government says some 400,000 units are being used as vacation rentals.

I'm joined by Pablo Bustinduy, Spanish minister for social rights and consumer affairs. He joins us live from Cambridge, England.

Minister, thank you for being with us. Let's start with the basis of the removal request by your government, citing tourist accommodation violations.

What violations specifically are we talking about?

PABLO BUSTINDUY, SPANISH MINISTER FOR SOCIAL RIGHTS AND CONSUMER AFFAIRS: Good morning here in Cambridge in the U.K. Pleasure talking to you.

Well, we identified over 65,000 rental listings that failed to meet legal advertising requirements, including the lack of a registration number, which, in Spain, is compulsory for this kind of listings or omitting the landlord's legal nature, legal status, which has consequences on the rights of consumers here in Spain.

So last week, a Spanish court upheld the ministry's actions, requiring this platform to block these ads immediately. I want to say that this is an issue of rule of law, of complying with Spanish regulations.

And obviously it is essential that any economic activity, no matter how powerful the company is involved, must comply with local laws. And no economic activity should go against the rights of the people.

Basically, here it's an issue related to the right of housing of the Spanish people. So what were trying is to find a balance to make that every economic activity sustainable and does not infringe or jeopardize the rights of the Spanish people.

ABEL: Airbnb is pushing back on that ruling and plans to appeal. The company is also claiming that the Spanish government has not presented evidence of rulebreaking by the host of these listings -- not them, not the company itself.

But they're also pushing back on the regulations. Those listings are said to be violating in the first place, suggesting that stricter rules in places like Amsterdam, Barcelona and New York, they did not fix housing issues.

What is your response to that, to those claims?

BUSTINDUY: Well, obviously in Spain, you know, there is rule of law. So every company, every actor has the right to appeal. I understand that's what they are doing.

But my point and my message is very clear, is that every company, no matter how powerful, must comply with regulations. For a long time now, we have grown used to this idea that major economic actors -- and multinational corporations as well -- have the power to set market laws and that is not how it must work in a democracy.

Laws must not adapt to the business models of powerful corporations. They have to adapt their business models to the laws in place. And the laws in place in Spain have to preserve constitutional rights of the Spanish people, especially the right to housing.

So every economic activity and tourism for sure is a vital part of our economy. But it must be done in a sustainable way. It must be done in respect of regulations. And it must be done in a way in which every economic actor is held accountable for, you know, the Spanish regulations. [03:40:06]

That's the point we're making.

ABEL: Well, and Minister, notably, the Spanish government has tightened its restrictions on short-term rental properties. But Airbnb is the only platform named in the court orders.

Why is that?

Are other property rental companies being scrutinized as well?

BUSTINDUY: Yes. Well, this company obviously has a large share of the short-term rental market. But, of course, we are engaging other actors as well.

And we hope to reach a -- the required amount of cooperation so that we can ensure that, you know, the rights of tourists and tourists' activities are compatible with, you know, the well-being of our population and with a sustainable model of tourism that preserves, for instance, the right to housing.

Those 65,000 illegal acts refer to houses, flats, apartments where, previously, families lived, working people lived, students lived. And obviously we need to strike a balance. We need to strike a balance between different rights and activities. And here, as I insist, well, it's a rule of law issue. Companies must comply with regulations.

ABEL: Understood. Spanish minister Pablo Bustinduy, we appreciate your time. Thank you.

BUSTINDUY: Pleasure.

ABEL: I'm Brian Abel in Atlanta. That's all for us. "WORLD SPORT" is next.