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Trump and von der Leyen Announce U.S.-E.U. Trade Deal; Jordan and UAE Air-Drop Aid Into Gaza as Netanyahu Denies Hunger Crisis; Thai, Cambodian Leaders to Attend Peace Talks in Malaysia; Thousands Evacuate as Wildfires Engulf Northern Turkey. Aired 12-1a ET

Aired July 28, 2025 - 00:00   ET

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

(COMMERCIAL BREAK)

POLO SANDOVAL, CNN ANCHOR: Hello and welcome to CNN NEWSROOM. I'm Polo Sandoval, live in New York, and here's what we have on the way.

[00:00:27]

President Trump announces what he calls the biggest deal ever made, agreeing to a trade framework with the head of the European Union.

And the World Health Organization says that malnutrition rates in Gaza, they are now hitting alarming levels, even as the Israeli prime minister says that there is no starvation in the enclave.

And after days of border clashes, Thailand and Cambodia, they are sitting down at the negotiating table. We'll tell you where.

ANNOUNCER: Live from New York, this is CNN NEWSROOM with Polo Sandoval.

SANDOVAL: And wherever you may be streaming or watching us from, welcome to the program.

The U.S. and European Union reached a framework for a trade deal on Sunday, averting a bigger cross-Atlantic trade war. President Donald Trump announcing a 15 percent across-the-board levy on imports from the E.U. And this happened after prolonged negotiations with America's largest trading partner.

The deal, here's a breakdown of it. It includes $600 billion of E.U. investments in the U.S. The E.U. will, in turn, also increase its purchases of U.S. energy, as well as military equipment.

European Commission President Ursula von der Leyen and also the U.S. president, essentially praising this deal.

(BEGIN VIDEO CLIP)

DONALD TRUMP, U.S. PRESIDENT: I think it's great that we made a deal today instead of playing games and maybe not making a deal at all. I think it's -- I'm going to let you say, but I think it's the biggest deal ever made. Thank you very much.

URSULA VON DER LEYEN, EUROPEAN COMMISSION PRESIDENT: Thank you very much. Thank you.

I think we hit exactly the point we wanted to find: rebalance but enable trade on both sides, which means good jobs on both sides of the Atlantic; means prosperity on both sides of the Atlantic. And that was important for us.

(END VIDEO CLIP)

SANDOVAL: Let's get you more on this agreement now from CNN's Jeff Zeleny.

(BEGIN VIDEOTAPE)

JEFF ZELENY, CNN CHIEF U.S. NATIONAL AFFAIRS CORRESPONDENT: A big economic week ahead for President Trump that really kicked off today here in Scotland with that deal between the United States and the European Union.

ZELENY (voice-over): Now, this had been in the works for some time, but it was a bit of a surprise announcement after an hour-long meeting with President Trump and the president of the European Commission sitting down and suddenly announcing that they had a deal.

TRUMP: I think you were saying this is probably the biggest deal ever reached in any capacity, trade or beyond trade.

VON DER LEYEN: It is.

TRUMP: It's a -- it's a giant deal with lots of countries because, as you know, Ursula represents a lot of countries, not one country.

VON DER LEYEN: It will bring predictability. That's very important for our businesses on both sides of the Atlantic.

It was tough negotiations. I knew it at the beginning, and it was indeed very tough. But we came to a good conclusion --

TRUMP: We did.

VON DER LEYEN: -- for both sides.

ZELENY: And this deal certainly becomes a prelude for other deals still to come with Mexico, with Canada, most importantly, and urgently, perhaps, with China.

U.S. officials and Chinese officials are scheduled to meet in Stockholm on Monday and Tuesday to continue their round of negotiations on their tariff deal.

Now, this is all part of President Trump's --

ZELENY (voice-over): -- effort to really change up the global trading order.

China has been certainly a sticking point on that. Tariffs that have been put in place really have had little economic effect in China. So, that certainly is the next challenge for the Trump administration.

Treasury Secretary Scott Bessent will be on the ground in Stockholm trying to work through this.

ZELENY: The president, meanwhile, will be holding a meeting on Monday with British Prime Minister Keir Starmer here in Scotland. Gaza, of course, front and center in that, but also putting the finishing touches on the U.K. tariff deal, as well.

That is a 10 percent across-the-board tariff deal. Certainly, a better deal, some would say, than the European Union.

Then the president moves on to his final day here in Scotland. He'll be opening a golf course in honor of his mother in Aberdeen.

(END VIDEOTAPE)

SANDOVAL: Let's bring in CNN business editor at large and host of "QUEST MEANS BUSINESS," Richard Quest. Richard, it's great to have you.

RICHARD QUEST, CNN BUSINESS EDITOR AT LARGE: Thank you, Polo. Good to be with you tonight.

SANDOVAL: So, as we go through the particulars of this agreement, or at least the framework here, I'm curious from your vantage point, how will this agreement impact consumers on both sides of the pond? And do you see this injecting some certainty into the markets when they open in a few hours?

QUEST: I think that's exactly what the whole thing does. This deal is about certainty.

[00:05:02]

The 15 percent is less on some things than there were already there. It's not as much as the -- it's not as good as the U.K.'s deal, which is 10 percent. But it's a lot better than the 20 or 30 percent that was being promised.

At 15 percent for most E.U. exports, there's a certainty for all involved. Everybody now knows what the price is to play in the United States.

And then you've got the other peripheries to it. The energy that's going to be bought by the Europeans, they were probably going to buy it anyway. The defense deals that are going to be done, they were probably going to be done anyway.

But these allow Donald Trump to say that it was a victory for him. And it allows Ursula von der Leyen, the European Commission president, to say, you now have certainty we got the best deal we could.

And it was a hell of a lot better than what it could have been.

SANDOVAL: Without a doubt. Fifteen percent is not 50. That's certainly an improvement.

Do you nonetheless, though, see this framework as -- as -- for the E.U., as a painful compromise? I mean, aside from avoiding this transatlantic trade war, how will Europeans stand to benefit, long- term?

QUEST: I think they benefit by having the certainty that everybody can do business.

Now here's where it gets tricky, Polo, because you're quite right. At 15 percent, who eats the tariff? It is a number that is just low enough that the exporter could eat it. The manufacturer could eat it, the producer could eat it, or they could all eat it between them. In other words, it might be passed a bit onto the importer, but it might not be passed on fully to the consumer.

I'll give you an example. I was in Bordeaux recently, and their wine producers, which were facing a 10 percent tariff, said, look, we'll pay 5 percent. And the exporter pays 5 percent. And the -- you know, the importer pays 5 percent. We can live with that.

Can everybody live with 7.5 percent each? I think initially, yes. Initially, the -- the producer, the exporter, they eat most of the tariff. But longer term, it will be passed on, because simply other prices will go up, and eventually, it will be too much of a burden.

SANDOVAL: Without a doubt, the devil's in the details here, especially when you look long term.

Let's just look ahead now, Richard, with what we expect now that the trade talks to resume between the U.S. and China. China is not the E.U. Does China now go into that -- into those talks seeking more concessions?

So, help us preview what we can expect in the days ahead.

QUEST: I think they're going to be much more difficult, because at the end of the day, despite what Donald Trump has said and -- you know, about the E.U. being set up purely for the purposes of screwing the United States, the reality is there is a great commonality of view.

And today's deal was agreed by both as being a huge deal, probably the largest. The same cannot be said as regards China, which the -- which Donald Trump regards as a competitor.

China is very much aware it's the second largest competitor against the -- single country, against the United States.

So, I think those deals will be -- and of course, the strategic significance of the rare earth minerals, the chips, all those sort of things that the U.S. does not want China to get any form of increased foothold. I think that is what's going to be much more tricky.

The markets are going to love the deal with the E.U. I think a lot of it's priced in. We knew it was coming Thursday and Friday. But the China deal, that's the one that still has to be done. SANDOVAL: Richard, this is really just the latest deal. When you look

back at what we've seen, just Japan before this, I mean, will it actually hold any water for markets around the world?

QUEST: Yes. You see, this is the tricky bit, because trade deals are notoriously difficult.

Donald Trump just wanted a headline number. He loves tariffs. He just wanted the tariff revenue. Well, he's got it: 15 percent here, 12 percent there; 20 percent; 10 percent out of Britain.

But when you look at the actual terms of trade, will it dramatically affect the balance of trade over the longer term? I think the answer is no, because we don't know what the details are. We don't know what other non-tariff barriers have been reduced. We don't know what other changes are in the works.

There's a good reason trade talks take years to do, because the nitty- gritty, everybody's sort of looking for loopholes and trying to catch each other out.

I think these deals, done very quickly, have a headline number which makes Donald Trump look good. But actually, in terms of the U.S. trade with the rest of the world, I don't think it's going to change it one jot.

SANDOVAL: Yes, he secures these headlines while there's still some scandal waiting for him in Washington when he returns. But that is another story.

[00:10:06]

Richard Quest, thank you so much for your reporting.

QUEST: Thank you.

SANDOVAL: The World Health Organization is now warning that malnutrition rates in Gaza, they have now reached what they describe as alarming levels, and this as the hunger crisis gripping the enclave continues to get worse.

But Israeli Prime Minister Benjamin Netanyahu denies that Palestinians are actually facing starvation. This is what he said.

(BEGIN VIDEO CLIP)

BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: Israel is presented as though we are applying a campaign of starvation in Gaza. What a bold- faced lie. There is no policy of starvation in Gaza, and there is no starvation in Gaza.

(END VIDEO CLIP)

SANDOVAL: And despite what you just heard, 74 deaths related to malnutrition, they've already been reported in Gaza so far this year alone. And 63 of those have happened this month. And that's according to the World Health Organization.

Even though Israel is now allowing more aid to flow into the region, Hamas says that there is no point in continuing ceasefire talks while this crisis continues to get worse.

And President Trump is again blaming the militant group for last week's breakdown in negotiations. He says Hamas does not want to give up more hostages, because as the president says, then it will lose its leverage.

(BEGIN VIDEO CLIP)

TRUMP: Israel is going to have to make a decision. I know what I'd do, but I don't think it's appropriate that I say. But Israel is going to have to make a decision.

(END VIDEO CLIP)

SANDOVAL: Let's get more now on the dire situation happening in Gaza. Let's go now to CNN's Nic Robertson.

(BEGIN VIDEOTAPE)

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: It's not really clear if President Trump there is pushing Prime Minister Netanyahu to make a deal or do what the president said a couple of days ago, which is go in and finish it off.

But for right now, the aid --

ROBERTSON (voice-over): -- is beginning to flow a little more freely than it was. Jordanian and Emirati aircraft dropped 25 tons of food and humanitarian supplies, airdropped it into Gaza today.

A hundred trucks were on the move from Egypt, with 840 tons of flour, 60 trucks on the move from Jordan, all headed for Gaza; for these new humanitarian corridors that the IDF is putting in place and those tactical pauses.

Now, the IDF says that they're still fighting Gaza, that they're still fighting Hamas, that Gaza is still an active conflict zone.

But these temporary tactical pauses of 6 to 8 to ten hours in certain areas are designed to allow the U.N. and other organizations to get those aid trucks in safely and disburse the aid.

And this really looks like something of a climb down by Prime Minister Benjamin Netanyahu to allow this greater amount of aid coming in. And he's taking a lot of heat for it politically from ministers in his own government, who are saying the only thing we should be sending into Gaza right now is bombs.

So, the prime minister does seem to have walked back from a very tough position. That said --

ROBERTSON: -- he is saying that it's the U.N. that's been lying about the aid situation; that it's Hamas is responsible for the shortages of food; and that Israel is doing nothing more, nothing different than what it's been doing over the recent months. That these -- that these aid corridors, if you will, have always been available to the U.N.

And that doesn't seem to correlate with what the U.N. understands. But bottom line, it does appear to mean that more aid will get in. For how long, it's not clear.

(END VIDEOTAPE)

SANDOVAL: We're joined now by Khaled Elgindy. He is a visiting scholar at Georgetown University Center for Contemporary Arab Studies. He's also author of "Blind Spot: America and the Palestinians, from Balfour to Trump."

Khaled, it's great to have you. Thank you for making time.

KHALED ELGINDY, VISITING SCHOLAR, GEORGETOWN UNIVERSITY CENTER FOR CONTEMPORARY ARAB STUDIES: Sure. Thanks for having me.

SANDOVAL: Well, as we -- as we saw, Prime Minister Benjamin Netanyahu in Jerusalem today, in his statements -- I'm wondering if you can react to that. And this is in the face of the World Health Organization reporting increased starvation deaths in Gaza, and that Israel's aid blockade is essentially compounding the crisis there.

So -- so how do you respond to the prime minister saying, in his words, that there is no starvation in Gaza?

ELGINDY: I mean, I don't -- I don't know what you can say to someone who is insisting on a reality that simply doesn't exist.

I mean, every day, we all see it on our -- on our screens. Every government official that I've talked to in the U.S. government and other governments, they all understand exactly what is happening.

The international humanitarian organizations have all said unanimously that there is starvation, that it is real.

In fact, even the Israeli-backed Gaza Humanitarian Foundation has said there is starvation in Gaza.

[00:15:06]

So, it just -- it's -- it's a -- I don't know what else to call it, other than gaslighting.

SANDOVAL: What does that do in terms of the conversation for the international community?

I know that you've previously said that there is certainly frustration around the world, pretty much from all points around the world, except from Washington, but that is yet to translate to actual action.

When you hear the prime minister say things like that, I mean, is it possible to make progress at all in terms of getting more aid into Gaza?

ELGINDY: It is possible, because even the -- the tiny trickle of aid that that was opened up today with the airdrops and, I think, something like 70 or so truckloads getting in, that was achieved only with an international outcry.

And here we're just talking about words. Words that are mostly behind the scenes. The pressure that we're not seeing is behind the scenes, the angry kind of fist pounding kinds of conversations are happening not in the public sphere, but behind the scenes.

And that is what compelled Israel to -- to change.

So, there's a fundamental contradiction, on the one hand, between the prime minister saying there's no starvation in Gaza, and yet, we are relenting to international pressure to allow in more trucks.

The mere fact that Israel is allowing trucks tells us exactly who's in control of -- of the aid flow into Gaza.

SANDOVAL: And on that last point, what is your assessment of the developments this past weekend?

You have the aid corridors that were established, the pauses that were announced, as well, and then the airdrops that you mentioned, as well.

I mean, just yesterday, my conversation with a member of UNICEF saying that that is -- sure any help is good, but it will not go a long way in terms of finding and getting some relief.

So, what is your assessment of -- of the moves that we have seen from the Israeli government? I mean, will that make any impact at all on the ground?

ELGINDY: Sadly, I don't think it will. I think it is a -- it's a tiny drop in the ocean in terms of what is needed. In order -- I mean, we're already at level five of -- of starvation, of famine inside Gaza.

One-third of Gaza's 2.3 million people have gone several days without any food at all. That is why we're seeing these images of emaciated children, and why we are seeing such a spike in the number of deaths. They are now daily.

In the -- in the first 20 months of this conflict, about 50 people, mostly children, died of starvation. In the past week, we've seen about 70 or 80. So, there's been a major spike, because there just isn't any food.

And of course, children are the most vulnerable, and they're the most likely to succumb to -- to malnutrition.

The reality is that there are 6,000 trucks just outside Gaza's borders that could feed -- that, according to the United Nations, could feed the entire population for at least two months. But they are not being allowed in by Israel. And that is -- I think we can only draw the conclusion that Israel is

trying to use starvation of the population as a weapon in its war with Hamas, which of course, is completely illegal, but also, I would say, immoral.

SANDOVAL: Khaled Elgindy, thank you so much for -- for your perspective and your analysis. Really appreciate it.

ELGINDY: Thank you.

SANDOVAL: Thailand and Cambodia say they are ready to negotiate. This after a decades-old border dispute erupted into a deadly violent streak this week. We'll bring you much more details on the way.

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[00:23:36]

SANDOVAL: Welcome back to CNN NEWSROOM.

You know, in the coming hours, Thai and Cambodian leaders, they are set to attend peace talks in Malaysia. This is going to be the first major attempt at calming the deadly clashes that erupted just last week, which made for the worst cross-border violence in more than a decade.

At least 35 people, they have been killed and also more than 200,000 displaced. Most of them are civilians.

U.S. Secretary of State Marco Rubio says that State Department officials, they are now in Malaysia to assist in these negotiations. And U.S. President Donald Trump has renewed his threats to withhold trade deals, either with Thailand or Cambodia, unless they find an end to this fighting.

CNN's Kristie Lu Stout joining us live from Hong Kong with much more on this conflict.

Kristie, is there any sense that there could be a possible de- escalation on the horizon after all these days?

KRISTIE LU STOUT, CNN INTERNATIONAL ANCHOR/CORRESPONDENT: You know, they're showing up to the table. But it's really hard to say, given that both sides have accused each other of launching fresh strikes.

Look, the leaders of Thailand and Cambodia will soon be meeting for mediation talks in Malaysia. They're due to take place at the prime minister's office in Kuala Lumpur, Malaysia, at around 3 p.m. local time.

And this is also taking place amid continued fighting along the border that continues to this day, the fifth day in a row. And this is something that CNN has confirmed with the Royal Thai Army.

Now the death toll has risen to at least 35. Some 200,000 people have been displaced as a result of the fighting. [00:25:05]

Now, this upcoming mediation meeting in Malaysia is also coming amid calls for peace from the international community, including the U.S. president, Donald Trump.

The Cambodian leader, the prime minister has confirmed that he will attend this meeting. He also said that this meeting is co-organized with the United States and with the participation by China.

I want to show you a Facebook post from the Cambodian prime minister in which he said this. Let's bring it up to you. Quote, "The purpose of this meeting is to achieve an immediate ceasefire, which was initiated by President Donald Trump and agreed to by both prime ministers of Cambodia and Thailand. I would like to thank Prime Minister Anwar Ibrahim for his initiative and coordination to organize and host this special meeting," unquote.

Now, the Thai government says its acting prime minister will attend these talks, and we do have fresh comments from the acting prime minister of Thailand, which just came out in the last half hour or so.

Now, he said this in regards to this upcoming meeting: quote, "The first thing to discuss will be an immediate ceasefire. And this needs to be discussed in a bit more detail. The main point today is that we will meet with Hun Manet." That's the Cambodian leader. "This elevates the discussion to the leader level, at the prime ministerial level for both countries."

Thailand has said all along that it wants a bilateral meeting with Cambodia, but it is not clear whether or not Malaysia and Cambodia have signed off on this and whether or not this will take place.

Thailand and Cambodia have had a long and very complicated relationship. They share this 800-kilometer-long land border, which has seen a number of military clashes over the years. The latest round of tension flared up and has been simmering since May, when a Cambodian soldier was killed.

And then the tensions just ratcheted up even further after the leak of that controversial phone call between the now suspended prime minister of Thailand, Paetongtarn Shinawatra, and Hun Sen, the former but still powerful leader of Cambodia.

There have been international calls for a ceasefire from the U.N., from the U.S., from China, from Malaysia, which is the current ASEAN chair. But as we enter, now, day five of fighting along the border, that peace remains elusive.

Back to you.

SANDOVAL: As you -- as you lay it out. It is just such a complicated history that stretches beyond the last four days, Kristie.

You mentioned the casualty count. You mentioned the displaced. What about any locations that have been damaged just in the last few days alone? Is there a better sense of what's been affected and damaged or destroyed?

STOUT: Yes, absolutely, Polo. In fact, we have some imagery to share with you from the Cambodian defense minister of damage at a sensitive and ancient temple site.

The Thai, rather, the Cambodian military has said that the Thai military has launched projectiles near this site. And you see there photographs of the damage incurred.

Now, the site there, this is called -- the temple there is a UNESCO- protected temple. It dates back to the Ninth century. It's considered a masterpiece in Khmer architecture. This is the Preah Vihear Temple.

And the minister of culture of Cambodia has told CNN that it is appealing to UNESCO and the world for a ceasefire.

Back to you.

SANDOVAL: A reminder that there are no parts of that border region that are off-limits. Kristie Lu Stout, live in Hong Kong with the latest in that conflict. We know you'll be following those peace talks.

Well, still to come here on CNN NEWSROOM, hundreds of wildfires, they've spread across Southern Europe. What's fanning the flames of the outbreak? When CNN NEWSROOM returns.

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SANDOVAL: Welcome back to CNN NEWSROOM. I'm Polo Sandoval, live in New York. Let's take a look at today's top stories.

The U.S. and European Union agreed to a framework trade agreement on Sunday. This deal, including a 15 percent import tariff on most E.U. goods, as well as an additional $600 billion of E.U. investment in the U.S.

Meanwhile, humanitarian aid is slowly starting to reach Palestinians in Gaza after Israel eased some restrictions. Video here showing some people running to get supplies and food that were dropped by Jordan and also the United Arab Emirates for the first time in months.

And this comes after Israel announced that it will pause fighting in some parts of Gaza for ten hours a day.

And at least three people are dead and several others are seriously injured after a passenger train derailed in Southwestern Germany.

About 100 people were on board when at least two carriages on this train left the tracks in a wooded area near the French and Swiss borders on Sunday.

Germany's national rail operator says the cause of the accident remains under investigation. Well, strong winds, dry conditions, unusually high temperatures. They

are fueling a growing outbreak of wildfires across Southern Europe at this hour.

CNN's Ben Hunte has the latest on the firefighting efforts in the region.

(BEGIN VIDEOTAPE)

BEN HUNTE, CNN INTERNATIONAL ANCHOR/CORRESPONDENT (voice-over): By night, wildfires in Turkey look straight from a horror movie. An onslaught of fiery red flames with an appetite for destruction that's fed by extreme conditions on the ground.

The full dangers of the fires are exposed in the daylight. Thousands of people are evacuating the North and Northwest of the country because of the massive fires, as thousands of firefighters try to battle back the flames.

Temperatures are surging in the region, often topping 40 C or 104 F, which is drying out the ground. That's making it even more difficult for firefighters to contain the blazes.

[00:35:08]

In Greece, volunteers are pitching in to help, like in this town North of Athens, where the flames have been turbocharged by more than just the heat.

PETROS AVRAMOPOULOS, LOCAL RESIDENT (through translator): The wind is terrible. You see what's happening here? The speed. One moment the fire is here, the next it's across. Everything is very fast.

HUNTE (voice-over): Fires have also been raging in nearby countries like Kosovo and Albania. Thermal drones have been deployed in some places to identify hotspots and help helicopter pilots coordinate their missions.

In Bulgaria, it's a team effort on the ground to put out one fire, with firefighters using shovels to smother the burning brush. But it wasn't enough to save some houses from being consumed by the smoke and flames.

ZVEZDELIN VLAYKOV, EMERGENCY VOLUNTEER (through translator): There will be quite a few houses burned down. It's a merciless moment. A tragedy. I haven't seen anything like this. In all my years of fighting fires, I haven't seen anything like this. And it will burn for another month.

HUNTE (voice-over): A month that could look and feel like hell, as firefighters across Southern Europe fight wildfires in their peak season.

Ben Hunte, CNN.

(END VIDEOTAPE) SANDOVAL: And we'll be right back with more news. Don't go anywhere.

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[00:40:30]

SANDOVAL: And finally, we want to leave you with a dog day afternoon in Bolivia's capital.

On Sunday, there were hundreds of dogs and their owners. They were lined up at the starting line of Perroton. This is an annual race that was organized by the Bolivian police and is meant to promote responsible pet ownership. The race, divided into small, medium and large breed categories.

And after finishing the nearly one-kilometer route, you can bet that many of them were quite exhausted. Or, as dads around the world would say, dog tired.

And with that, we do want to thank you for joining us for this edition of CNN NEWSROOM. Stick around. WORLD SPORT is next.

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