Return to Transcripts main page

CNN Newsroom

U.S. and World on Edge on Eve of Trump's August 1 Deadline; U.S. Federal Reserve Leaves Interest Rates Unchanged; U.N. Says Time Running Out to Address Starvation in Gaza; Tsunami Alerts Cancelled as Threat from Waves Subsides. 12-Day War Exposed Gap in U.S. Anti- Missile Defenses; Ozzy Osbourne Honored with Funeral Procession in Birmingham. Aired 12-1a ET

Aired July 31, 2025 - 00:00   ET

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

[00:00:26]

KIM BRUNHUBER, CNN INTERNATIONAL ANCHOR: Welcome to all of you watching us around the world. I'm Kim Brunhuber. This is CNN NEWSROOM.

It is time to make a deal. We are officially 24 hours away from Donald Trump's tariffs deadline as the White House agreements with some countries kick in in Asia.

Diplomatic pressure as Canada joins France and the U.K. in planning to recognize a Palestinian state. Arab nations are calling on Hamas to disarm in Gaza.

Plus, remembering the man known as the "Prince of Darkness." Massive crowds attend Ozzy Osbourne's funeral.

ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with Kim Brunhuber.

BRUNHUBER: We are now just one day away from the U.S. presidents August 1st tariff deadline. He insists it won't be extended and says Friday will be a big day for America. His Commerce secretary also confirmed there will be no more grace periods, but indicated the Trump administration is still willing to talk to countries that haven't made deals.

Now several have been scrambling to beat the deadline. South Korea reached an agreement that will put a 15 percent tariff on its goods, and we're hearing there's a trade framework in place with Pakistan, as well as new trade deals with Cambodia and Thailand.

Donald Trump also signed an executive action imposing 50 percent tariffs on certain copper products, claiming the move is critical for national security. And he carried out his threat of slapping 50 percent tariffs on Brazil effective Friday for political, not economic, reasons. President Trump is trying to punish Brazil for refusing to end its trial against his ally, former right-wing president Jair Bolsonaro.

Now taken together, these moves mark a major expansion of the Trump administration's trade war, which is expected to raise prices for consumers.

Now here's a look now at how the Asia Pacific markets are reacting on the eve of the tariff deadline. Mostly flat, as you can see there.

CNN's Kristie Lu Stout is following this live from Hong Kong.

So, Kristie, there was a lot of pressure on South Korea to get a trade deal done here. So take us through what was finally secured.

KRISTIE LU STOUT, CNN CORRESPONDENT: Yes, the pressure was certainly on to get this deal. U.S. President Donald Trump has announced a trade deal with South Korea just before the August 1st tariff deadline. And according to this deal, it involves a 15 percent tariff on all exports from South Korea. That is down from the 25 percent tariff rate that was originally due to kick in on Friday, on deadline day.

It also includes $350 billion worth of investment from South Korea into the U.S. and for South Korea to purchase some $100 billion worth of liquefied natural gas and other U.S. energy products. U.S. President Donald Trump also said this that U.S. products, including cars, trucks, agricultural products could enter the South Korean market with no import duties.

We were able to get additional details about this deal from the U.S. Commerce secretary, who took to the social platform X to say the following. Let's bring it up for you, from Howard Lutnick, he said, "South Korea's reciprocal and auto tariff rate will be set at 15 percent. They will also not be treated any worse than any other country on semiconductors and pharmaceuticals. Steel, aluminum and copper are not included and they remain unchanged."

Now on Facebook, we heard from the South Korean president earlier today who fleshed out more details on the investment package of this trade deal with the United States. And he said this, quote, "The $350 billion fund included in the trade agreement will strengthen the foundation for strategic industry cooperation, in particular, $150 billion of this fund is dedicated to shipbuilding cooperation, which will firmly support our companies' entry into the U.S. shipbuilding industry," unquote.

And the name of this project, and I'm quoting here, is, "MASGA," or make American shipbuilding great again. Now, there was, again, a lot of pressure on South Korea to clinch this deal, especially after other key Asian exporters had already done so.

Let's show you the regional context here. And as we reported last week, remember the deal that Japan struck with the United States. Japan's deal with the U.S. set the bar at about 15 percent, while offering hefty investment pledges. Philippines and Indonesia, they settled for 19 percent. Vietnam at 20 percent.

Now, I should mention the latest on Thailand and Cambodia. They've been clashing at the border. A ceasefire was announced earlier this week that was brokered in Malaysia. And we heard from Howard Lutnick in an interview with FOX News saying that a trade deal with both these nations have been reached. [00:05:05]

But he did not provide any further details and we are waiting comments from the officials of both these countries, Thailand and Cambodia, and of course, talks to China are ongoing.

Now, look, South Korea is America's seventh largest source of imports. It's also a key strategic ally. Some analysts have noted the fact that this trade deal did not mention North Korea, did not mention security on the Korean Peninsula, but those topics are likely to come to the fore when the two leaders meet. In fact, U.S. President Donald Trump said that the South Korean leader will pay a visit, quote, "in the next two weeks."

Back to you, Kim.

BRUNHUBER: All right. Appreciate you breaking all that down for us.

Kristie Lu Stout in Hong Kong, thanks so much.

Meanwhile, the U.S. Federal Reserve has once again left interest rates unchanged, much to the annoyance of President Trump, who's long been demanding rate cuts. But Fed chair Jerome Powell issued another warning about persistent inflation.

The Dow and the S&P closed lower on Wednesday as Wall Street processed Powell's remarks. U.S. futures are now in positive territory.

CNN's Matt Egan has our report.

(BEGIN VIDEOTAPE)

MATT EGAN, CNN SENIOR CORRESPONDENT: The Fed is not budging despite immense pressure from the White House to slash interest rates. That officials deciding Wednesday to keep rates exactly where they are. It's the fifth straight meeting where rates are being left unchanged.

Now that's because the Fed is in wait and see mode. They're looking for more clarity on two things. First, how higher tariffs are going to go. Secondly, how much will tariffs increase prices. And the answer to those questions very hard to know especially because tariffs continue to change. Even as Fed officials are meeting Wednesday, the White House was announcing new details on tariffs.

Now, President Trump said that he heard the Fed is going to cut interest rates in September, their next meeting. But Fed chair Jerome Powell, he did not sound sold on the idea of an interest rate cut in September. He didn't rule it out, but he also noted that tariffs are increasing prices. And he made it clear that the Fed will not allow tariffs, the inflation to get out of control.

Take a listen to what Powell said.

(BEGIN VIDEO CLIP)

JEROME POWELL, CHAIR OF U.S. FEDERAL RESERVE: This will not turn out to be inflation because we'll make sure that it's not. We will through our tools make sure that this does not move from being a one-time price increase to serious inflation. We want to do that efficiently, though. Efficiently. And that means we want to do it, if you -- if you move too soon, you wind up maybe not getting inflation all the way fixed and you have to come back. That's inefficient. If you move too late, you might do unnecessary damage to the labor market.

(END VIDEO CLIP)

EGAN: And so that's the tough position that the Fed finds itself in right now. And it's not just the pressure from the White House to cut interest rates. There's pressure from inside this building as well. Not one but two of Chair Jerome Powell's colleagues on the Federal Reserve Board of Governors, they dissented, and they voted in favor of an interest rate cut. It's the first time since the early 1990s that two Fed governors dissented.

But Powell, he's making it clear he's in no rush to cut interest rates and that he won't be bullied, not even by the president who put him in charge of the Fed in the first place.

Matt Egan, CNN, Washington.

(END VIDEOTAPE)

BRUNHUBER: Now to Gaza, a U.N. group says the region is on the brink of full scale famine where people are starving not because food is unavailable, but because access is blocked.

Canadian Prime Minister Mark Carney says Canada will recognize a Palestinian state at the U.N. General Assembly in September. That follows similar announcements from France and the U.K. Arab and Muslim nations have signed on to a U.N. declaration calling on Hamas to disarm and relinquish power in Gaza. The statement also says the Palestinian Authority should handle governance and security in all Palestinian territory.

And several sources tell CNN U.S. Special Envoy Steve Witkoff will travel to Israel in the day ahead. Now the visit comes as President Trump announced this week the U.S. plans to open food centers in Gaza.

All right. More now on the situation in Gaza from CNN's Jeremy Diamond.

(BEGIN VIDEOTAPE)

JEREMY DIAMOND, CNN JERUSALEM CORRESPONDENT: Well, more humanitarian aid is beginning to make its way into the Gaza Strip and into the hands of hungry Palestinians. But the U.N. agencies are warning that time is running out to mount a full scale humanitarian response that can actually begin to alleviate the starvation crisis that is currently gripping Gaza.

On Tuesday, about 200 trucks of humanitarian aid were distributed in Gaza, according to Israeli authorities. That's the same level as the day before, but a significant increase from the numbers of trucks that were getting distributed in Gaza last week.

This comes after Israel began implementing those tactical pauses, safe distribution routes, all of these, of course, steps that the U.N. and other humanitarian aid agencies have been calling on Israel to implement for months now.

[00:10:10]

And we know that so much of what is happening in Gaza already is going to be very difficult to alleviate. And for many, it will be too late.

Inside Gaza, we're also getting a better sense of just how bad this starvation crisis is, with 39 percent of people now going days at a time without eating, according to the World Food Program. In Gaza City, in the northern part of the strip, malnutrition levels among children under five have quadrupled in just the last two months, with a slew of agencies now describing famine-like conditions in many parts of the Gaza Strip.

In addition to that, we are still seeing individuals in Gaza who are being killed by Israeli forces, according to the Palestinian Ministry of Health, as they are trying to make their way to get aid. And so now the question is, can this be alleviated? And of course, we know that those ceasefire negotiations between Israel and Hamas have very much stalled for the time being.

And so enter into the picture Steve Witkoff, President Trump's special envoy, who is going to be traveling to Israel on Thursday, presumably to address the humanitarian crisis in Gaza, as well as to see if it's possible to revive these hostage release and ceasefire efforts. Witkoff, before departing for Israel, spoke with the Egyptian foreign minister. They discussed those ceasefire efforts, the entry of humanitarian aid. Egypt, alongside Qatar, of course, are the two key mediators in these negotiations.

Jeremy Diamond, CNN, Tel Aviv.

(END VIDEOTAPE)

BRUNHUBER: And joining me now is Benjamin Radd, a political scientist and senior fellow at the UCLA Burkle Center for International Relations.

Thank you so much for being here with us. Really appreciate it.

BENJAMIN RADD, SENIOR FELLOW, UCLA BURKLE CENTER FOR INTERNATIONAL RELATIONS: Thank you.

BRUNHUBER: I want to start with the declaration from those Arab states calling on Hamas to disarm. It's being called unprecedented. What makes it so significant?

RADD: It truly is. And what makes it unprecedented? So significant is the fact that not only have these states not done this before in the past, they've alluded to steps that Israel must take and steps maybe Palestinians must take internally or have aid or resources provided to them. But in this case, it is calling for the leading authority, the group that is in charge of Gaza, to disband and to essentially give up their position of political power permanently going forward, demanding the release of the hostages as well. And basically doing its part to bring an end to this conflict.

In other words, it's holding Hamas accountable. So rarely have we seen Arab states hold other Arab states accountable, let alone in the Palestinian conflict, where this issue always took a backseat to Israeli occupation and conflict.

BRUNHUBER: So we've rarely seen them hold Hamas accountable. The timing then, why are traditional Hamas allies like Qatar and Egypt calling for this now?

RADD: We're seeing, you know, increasing footage of the human devastation in Gaza, the starvation, the humanitarian crisis, the suffering of the Palestinian people and civilians, and the fact that now the ceasefire talks are going nowhere. It's a -- the pressure on not just Israel and Hamas to really bring this to an end, but also surrounding nations, allied nations, Western nations.

The pressure coming from their -- from their populations, from their citizens is immense. And I think what we're seeing now is the Arab states realizing that truly for this to be resolved that the Hamas and the Palestinian leadership there has to do its part, and then the onus then falls on Israel to really carry out its obligations from a humanitarian and a diplomatic standpoint.

BRUNHUBER: Yes, I want to get to the pressure on Israel in a second. But the realism of this, I mean, the Arab Leagues demanding Hamas hand over weapons to the Palestinian Authority. I mean, that seems pretty farfetched, doesn't it? They've consistently rejected calls to disarm or give up control of Gaza. So why would they do that now?

RADD: Well, because Hamas is dependent upon the support of outside states. It is effectively a non-state actor. It's not really a, you know, any longer a one could say truly representative of what the Palestinians in Gaza want for leadership, given that there have been no elections held for many, many years. We can say the same thing in the West Bank. But for now, we focus on Gaza.

Hamas depends on the Arab world and on Iran for its support, particularly from Qatar and Egypt, and of course, Saudi Arabia carries tremendous weight and legitimacy in the Arab world. That is where the two holy Islamic sites are located. And Hamas, being an Islamic movement that predicating its leadership and justifying its authority on Islamic principles, to lose support of the most prestigious and the most influential Islamic state in the Muslim world is huge. So really, it's undermining Hamas' legitimacy to rule.

[00:15:02]

BRUNHUBER: All right. Want to end with this, we're talking about, you know, Arab pressure on Hamas. I want to flip the discussion and focus on the increasing pressure on Israel. We just saw Canada announce it would recognize Palestinian statehood, joining France and the U.K. I mean, how important is this beyond the symbolism? And can this sort of squeeze play from both sides sort of lead to some diplomatic gains and actually force both sides back to the -- to the negotiating table?

RADD: So there's two angles to this. It is symbolic and it is performative because what these states, Canada, the U.K., France, others, what they're not doing is they're not stipulating what a Palestinian state that they are going to recognize, what that state will look like. How will it be governed? What system of governance? Who will the leadership be? How will it get there? What's the transition to a stable and presumably a free and democratic Palestine?

None of that language is there. So for now, it's basically lip service and it is symbolic. On the other hand, what it does do is it demonstrates now the increasing diplomatic pressure and isolation facing Israel, given now the, you know, the Western world seems to be more or less united with the United States. We're seeing now voices within both the Senate and the House, as well as comments made by President Trump in recent days indicating that Israel's current strategy of fighting Hamas and doing it via sort of attacks on Gaza that are -- that are devastating the civilian population, it's no longer working.

It's not tenable. It's not sustainable, and it needs to change. So it is meant to pressure and likely will do, I think, do more to bring Israel to the table than at least provide some relief for the Palestinians there.

BRUNHUBER: Yes, certainly. That report on the humanitarian situation certainly underlining the desperation of the need there.

Really appreciate getting your expertise on this, Benjamin Radd in Los Angeles. Thank you so much.

RADD: Thank you.

BRUNHUBER: Well, 24 hours after one of the strongest earthquakes on record, the threat of destructive tsunami waves and flooding has largely passed. We'll have a report from Honolulu next. Stay with us.

(COMMERCIAL BREAK)

[00:21:32]

BRUNHUBER: Tsunami alerts are largely canceled across the Pacific now. It's been about 24 hours since one of the strongest earthquakes on record triggered tsunami warnings throughout the region.

CNN's Will Ripley has more.

(BEGIN VIDEOTAPE)

WILL RIPLEY, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): Tsunami warnings across the Pacific Ocean. A massive 8.8 magnitude earthquake off Russia's far eastern coast. Waves first slammed into Russia's shoreline towns. Panicked sealions dove into the ocean as rocks tumbled. Furniture shook inside homes and buildings. The tremors damaged an empty kindergarten. Even forcing surgeons to hold down a patient on an operating table.

Waves also crashed into the Japanese coastline. People rushed to rooftops for safety. The threat reached parts of South America on Tuesday. Authorities in several countries evacuated coastal areas due to fears of a tsunami. And in the U.S., parts of the West Coast and Hawaii were on edge overnight and into the day.

CAPT. NICHOLAS WORST, U.S. COAST GUARD SECTOR HONOLULU: A lot of anxiety and stress from folks during these type of situations and the decision as the captain of the port to shut down commercial harbors, to evacuate, to hold vessels off. That's not a decision I take lightly at all.

RIPLEY: This ring camera video from a business in Haleiwa shows timelapse footage, water surging from the waves. The water can be seen getting very close to the deck of Blue Planet Adventure Company. In Hilo the waves flooded parking lots. U.S. Coast Guard ships went out to sea for safety.

WORST: We pre-staged these Coast Guard assets, essentially docked them out of the harbor, and in order to be able to quickly respond to any search and rescue cases.

RIPLEY: This Coast Guard cutter, the Oliver Berry, just returned to homeport here in Honolulu. The tsunami advisory for Hawaii has been lifted, but the National Weather Service urges people here and in other affected areas to stay cautious because strong currents and dangerous conditions may continue for the next day or so.

Will Ripley, CNN, at the port of Honolulu, Hawaii.

(END VIDEOTAPE)

BRUNHUBER: A key U.S. missile stockpile has taken a big hit. Still ahead, how months of conflict between Israel and Iran may have exposed a gap in America's defenses. Stay with us.

(COMMERCIAL BREAK)

[00:28:31]

BRUNHUBER: Welcome back. I'm Kim Brunhuber. Let's take a look at today's top stories.

It is now the eve of the U.S. president's August 1st tariff deadline and a flurry of new deals have been announced with Asian trading partners, South Korea, Cambodia and Thailand. Donald Trump says a trade framework with Pakistan is also in place.

Meta stock jumped nearly 10 percent on Wednesday after posting strong earnings. The company's stock has risen 16 percent since the start of the year. CEO Mark Zuckerberg says as the business performs well, it will allow them to invest more on artificial intelligence.

And Kamala Harris says she won't run for California governor in 2026. The former U.S. vice president and Democratic presidential nominee ends weeks of speculation with the announcement. Harris says she wants to focus on helping Democrats win in next year's midterm elections. She's also expected to embark on a book tour this fall.

The U.S. put a major dent in the stockpile of its key anti-missile defenses during last month's conflict between Israel and Iran. Sources say Washington used about a quarter of its THAAD interceptors only 12 days to protect Israel.

As Tamara Qiblawi reports, it could leave a big gap in the U.S. Military posture overseas.

(BEGIN VIDEOTAPE)

TAMARA QIBLAWI, CNN CORRESPONDENT (voice-over): Each of these bright lights come from a sophisticated U.S. intercept missile system known as THAAD. Being used for the first time in a war to defend Israel as Iranian ballistic missiles rained down.

[00:30:11]

A CNN investigation found that the U.S. military cut deeply into its stockpile of THAAD missiles, launching more than $1.2 billion worth of the interceptors in just 12 days and burning through these crucial defense weapons much faster than they're able to make them.

When Israel went to war with Iran, it came under the most sustained attack of ballistic missiles in its history.

(EXPLOSION)

QIBLAWI (voice-over): Unless intercepted, those Iranian projectiles can take out entire apartment blocks.

Israel shot most of these down. And the U.S. military stepped in to help with the THAAD.

As Iran launched its missiles towards Israel, THAAD, along with Israel's Arrow-3 and the U.S. Navy's own SM-3 interceptors, sprang into action. Where other systems faltered, American troops on the ground launched THAAD, destroying the incoming missiles just outside the Earth's atmosphere.

We know from sources that more than 100 THAAD interceptors, as many as 150, were used during the war, but only 11 THAAD missiles were commissioned by the U.S. government last year, according to official budget numbers.

Twelve are being built this year. And in 2026, production is expected to ramp up to 37, meaning it could potentially take years to replenish the stockpile used against Iran in less than two weeks.

And it's not just hard to replace; it's expensive. THAAD launches cost around $12.7 million a pop. A THAAD interceptor missile is over 20 feet long and weighs around 1,500 pounds.

Each system takes more than 95 U.S. Army specialists to operate, making it one of the most complex weapons in the U.S. arsenal.

We spoke to several former defense officials who say that the war has only deepened a problem that the Pentagon has faced for years. "Stockpiles are dropping. We need more. We need them faster than they're being built."

"There's not enough systems. There's not enough interceptors, and there's not enough production. And there are not enough people working on it."

GRAPHIC: Former senior defense officials.

QIBLAWI (voice-over): Analysts say the stockpile depletion could impact U.S. air defenses where they may be critical: in the Asia- Pacific region.

SIDHARTH KAUSHAL, SENIOR RESEARCH FELLOW, RUSI: The idea is that China can erect an anti-access area denial bubble to keep the U.S. Navy at arm's length in the event that it wished to intervene in, for example, Taiwan.

From a narrowly military standpoint, the Chinese are absolutely the winners here.

QIBLAWI (voice-over): Pentagon press secretary Kingsley Wilson said the U.S. military is, quote, "the strongest it has been and has everything it needs to conduct any mission anywhere, anytime, all around the world."

Tamara Qiblawi, CNN, London.

(END VIDEOTAPE)

KIM BRUNHUBER, CNN INTERNATIONAL ANCHOR: Thousands of fans lined the streets of the home of heavy metal. Just ahead, Birmingham, England, honors and says goodbye to the late Ozzy Osbourne.

(COMMERCIAL BREAK)

[ BRUNHUBER: Australia is set to ban access to YouTube for children under 16 later this year. It comes after the government had originally promised to spare the video-sharing platform from being included in a crackdown on social media sites.

Platforms like TikTok, Instagram, Facebook, and more have to prevent children from creating accounts or face hefty fines.

A YouTube spokesperson says they will, quote, "consider next steps" and will continue to engage with the government on the matter.

The new law is set to take effect in December.

People in Birmingham, England, showed up in force to honor Ozzy Osbourne. The city is considered the home of heavy metal. And it's where his band Black Sabbath formed in 1968. Osbourne became the group's frontman in the '70s.

CNN entertainment reporter Elizabeth Wagmeister has this remembrance of the man known as the Prince of Darkness.

(BEGIN VIDEOTAPE)

ELIZABETH WAGMEISTER, CNN ENTERTAINMENT CORRESPONDENT: Thousands of fans lined the street --

WAGMEISTER (voice-over): -- in Birmingham, England, to honor the life and legacy of Ozzy Osbourne. The funeral procession came one week after the rocker died.

Now, no cause of death was given, but at the time, his family had said that he passed surrounded by love.

Now, his family members were seen at this funeral procession. His wife, Sharon Osbourne, visibly moved, very emotional and crying throughout the procession.

Now the lord mayor of Birmingham honored Ozzy and explained why they wanted to hold this funeral procession, also revealing that the family paid for this procession.

Here is part of what he said. He said that Osbourne was, quote, "More than a music legend. He was a son of Birmingham." His statement went on to say, quote, "It was important to the city that we support a fitting, dignified tribute ahead of a private family funeral. We know how much this moment will mean to his fans."

[00:40:03]

Now, Ozzy, obviously, kept his fans --

WAGMEISTER: -- close to his heart in his final days. In fact, his final performance was on July 5th, just weeks before he had passed, in his hometown of Birmingham.

Back in 2023, Ozzy Osbourne spoke to "Rolling Stone U.K.," saying that he wanted to perform just one more time before he passed. Here is what he said.

Quote, "If I can't continue doing shows on a regular basis, I just want to be well enough to do one show where I can say, 'Hi, guys. Thanks so much for my life.' That's what I'm working towards. And if I drop down dead at the end of it, I'll die a happy man."

WAGMEISTER (voice-over): While Osbourne was able to get that final wish with that July 5th performance, he was not able to walk. So, they constructed a throne-like chair. Very fitting for him. And he was able to perform onstage one last time in front of thousands of adoring fans.

Now, back in 2020, Osbourne had revealed his Parkinson's disease diagnosis, and he also had endured a series of spinal surgeries. So, his health issues were well-documented in those final years.

WAGMEISTER: But still, his death at 76 coming as a surprise.

Back to you.

(END VIDEOTAPE)

BRUNHUBER: All right. Thanks so much for watching CNN NEWSROOM. I'm Kim Brunhuber. I'll be back with more news at the top of the hour. WORLD SPORT is next.

(COMMERCIAL BREAK)

[00:46:21]

(WORLD SPORT)

[00:57:44]

(COMMERCIAL BREAK)