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No China-U.S. Deal Yet On Trade; Israeli Forces Fire Warning Shots Near Crowd Waiting For Aid; Mom Picking Up The Pieces After Losing Son In Russian Strike; Severe Turbulence Injures Passengers, Crew On Delta Flight; Apple Hits Major iPhone Milestone. Aired 12- 12:45a ET

Aired August 01, 2025 - 00:00   ET

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

LAURA COATES, CNN ANCHOR: Does Harry have sneakers? Did he have on loafers just now? OK. Cheers, Harry Enten.

[00:00:10]

Thank you for watching. ANDERSON COOPER 360 is next. Will he do it?

POLO SANDOVAL, CNN ANCHOR/CORRESPONDENT: Hello, and welcome to the CNN NEWSROOM. I'm Polo Sandoval, live in New York, and here's what's ahead.

Donald Trump announcing new tariff rates in his global trade war. But once again, he is pushing back when they'll actually take effect.

And U.S. officials planning to visit the sites in -- several sites in Gaza to see what's going right and what needs urgent correction.

Plus, terrible turbulence on a Delta flight. At least 25 people were hurt. Passengers sharing what it was like on board.

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

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

The Trump administration's global trade war, it intensifying as it unveils historic new policies. Now, many of the countries that did not make deals with the U.S. are now finding out exactly what kind of so- called reciprocal tariffs they will soon be facing.

The White House had insisted the self-imposed August 1 deadline was firm. No extensions, no grace periods. Well, now we are hearing from the White House that the tariffs will not be implemented for another week and that, according to the White House, is because U.S. Customs and Border Protection needs more time to deal with the upheaval.

Now, come August 7, countries with a trade surplus, they're going to face a universal 10 percent tariff rate. About 40 countries with which the U.S. has a trade deficit will pay 15 percent.

Meanwhile, the U.S. president signed an executive order bumping up Canada's tariffs to 35 percent. Now, that applies to goods that are not covered under a prior continental trade agreement. So basically, many -- many of the items are still going to cross into the U.S. without any additional import tax.

Meanwhile, many Mexican products, they will also not be facing levies either for the same reason. And Donald Trump also announced on Thursday that he will be pausing higher tariffs on Mexico for another 90 days, keeping those at 25 percent. Avocados included.

China and the U.S., they have yet to strike a trade deal, but they do have a trade truce in place. That is, until August 12.

Let's go now live to CNN's Marc Stewart, joining us from Beijing.

This is obviously a very complicated one, Marc. This is still quite fresh. Still going through all the details from the White House.

From what you've been able to see, the impacts, they appear to be pretty far-reaching, though.

MARC STEWART, CNN INTERNATIONAL CORRESPONDENT: No question, Polo. I mean, let's just look at this from the broader context of the global economy.

These tariffs are historic. They are high and certainly do have the potential of changing the way the world does business. We have tariffs targeting known allies such as Canada. And of course, adversaries like China where I am based.

So there is a mix of -- of -- of implications here. Let's take a look at the markets. Because Asia is the first place where trading really began since these announcements were announced.

Right now in Asia, we are seeing declines across the board. We see the Nikkei, which is the benchmark in Japan, down; the Seoul KOSPI, which is the main exchange in South Korea, down by more than 3 percent.

That comes on the heels of a trade agreement that was released yesterday -- reached yesterday: 15 percent in South Korea. But South Korea also agreeing to make billions of dollars of investment in the United States, particularly when it comes to chipmaking, as the U.S. tries to encourage more manufacturing on American shores.

As far as the tariff impact here in Asia, not a surprise that we're seeing declines, because if you look at where some of these tariffs are targeted, we have Taiwan at 20 percent, Malaysia 19 percent, Vietnam at 20 percent. These are all important trading partners.

Something else to point out. These tariffs are also going to target this policy known as trans shipment. Basically what happens is that a product that is made in one country at a high tariff rate is then shipped to another country with a tariff that is much lower, and then shipped to the United States.

Well, the United States is not going to tolerate that anymore, these lower rates by diverting to another intermediary country. And so, those tariffs have now been raised to 40 percent. That's in addition to what's already on the books by the Customs and Border Patrol.

[00:05:03]

So, there is going to be some change in the way business is conducted.

Let's look ahead, though, to U.S. futures right now. They are down. In some cases, it's pretty slight. But of note is the S&P 500. We are seeing some -- some declines there.

The S&P 500 is important, because that is where many of us have our 401(k)s, our retirement accounts.

It's still very early in the trading day here in Asia. So well see if perhaps what happens in this part of the world sets the tone for when markets open in Europe and then the United States.

But Polo, no question, this is an economic event that could be seismic in scope. So, we'll be watching the markets in the many hours ahead -- Polo.

SANDOVAL: Yes. The detail about those trans shipments, a reminder that this is much more complex than -- than most may think. So, thank you so much for breaking all that down for us, Marc.

Do want to get some analysis now. And let's bring in now Caroline Freund. She's the dean of the U.C. San Diego School of Global Policy and Strategy. She joins us live from San Diego.

Caroline, it's great to have you. Thank you so much for making time for us.

CAROLINE FREUND, DEAN, U.C. SAN DIEGO SCHOOL OF GLOBAL POLICY AND STRATEGY: It's a pleasure to be here. Thank you.

SANDOVAL: Of course. So, look, you have made a career out of following trade. So, from your expert perspective here, as you've gone through the announcement from the White House, what is your initial assessment of this new battery of tariffs? You know, the implementation delayed a week.

Does it seem that the administration is once again just kicking that can down the street again?

FREUND: No, I don't think so. It is really complicated to implement these different levels of tariffs across all different countries all at once.

So, I think a big part of the cost of this is going to be the administrative cost of doing that. So -- so that's one thing.

I also think there's a little bit of hope that some other countries make deals.

But there's certainly an administrative cost to implementing new tariffs all over the board, all over the world, all at once. SANDOVAL: When you look at the potential impact -- And Marc was just

touching on that a little while ago in his report. But from your perspective, how are these tariffs likely going to impact the global economy?

FREUND: Well, one thing they're doing is they're feeding into a lot of uncertainty. So, my biggest fear, actually, is the investment that's not happening, because companies don't know how much their inputs are going to cost. Companies don't know how much it's going to cost to sell things in the U.S. or elsewhere.

So, there's just kind of a lot of sitting on their hands, which is going to slow down growth around the world. So, I think a big -- a big concern is -- is uncertainty.

And then there'll also certainly be some diversion because, you know, if tariffs are different across different countries, there's incentive to import more from the low-tariff countries and to squeeze goods through those countries, kind of wash them through low-tariff countries.

SANDOVAL: Yes. The big question on where do people invest, where do companies invest? And that includes here in the United States.

And when you look at the numbers that were sent out by the White House, did any of those tariff amounts surprise you? Do you think that they -- when you go through that list, do they reflect what some of these countries actually export to the United States?

FREUND: No. I mean, they're based on, initially ,trade deficits and then the negotiations.

I think there are some things to be really, really relieved about. So -- so, there is a major bullet that's been dodged, which is countries aren't retaliating.

So, frankly, before these deals were made with our really important major trading partners, the big concern was we ratchet up, they ratchet up, and very soon we're to trade war. That doesn't seem to be happening.

Fifteen percent is going to hurt. Prices are going to go up. Companies aren't going to be able to absorb that. But we dodged a big bullet so far, in that our major trade partners like Europe, like Japan, are not responding, are not lifting [SIC] their tariffs on U.S. goods in response.

SANDOVAL: You answered the next question that was on my mind, which is the ultimate cost for the consumer that's already being felt there, including with a slight uptick in inflation.

Caroline Freund, we are so lucky to have you. Thank you so much for -- for making some time for us.

FREUND: Thank you. My pleasure. SANDOVAL: Well, President Trump's special envoy and U.S. ambassador to

Israel, they will be traveling to Gaza in the coming hours. Steve Witkoff and Mike Huckabee, they are scheduled to inspect aid distribution sites and then report back to the White House with a plan to basically further U.S. involvement there.

Witkoff met Thursday with Israeli Prime Minister Benjamin Netanyahu. This was one week after the U.S. and Israel pulled back from ceasefire talks. They blame Hamas for negotiating in bad faith.

[00:10:13]

Now Hamas says it will be rejoining the talks once the humanitarian crisis in Gaza ends. A senior member of the group says that the talks are meaningless as long as Israel's policy of starvation and extermination continues. That's -- those are the group's words.

Now, all of this coming amid reports that Israeli forces fired warning shots within inches of a crowd waiting for a un aid convoy in Gaza.

CNN's Salma Abdelaziz has more on the perilous effort to get food in a war zone.

(BEGIN VIDEOTAPE)

SALMA ABDELAZIZ, CNN INTERNATIONAL CORRESPONDENT (voice-over): You're watching an aid convoy as it enters the Gaza Strip.

UNIDENTIFIED FEMALE: It's kids. It's children.

ABDELAZIZ (voice-over): Israeli troops firing warning shots just inches away, according to the U.N.

UNIDENTIFIED MALE: No, no, no, no, no, no. Don't do this. Don't do this. No, no, no, no, no.

ABDELAZIZ (voice-over): This aid convoy was held at an Israeli checkpoint for nearly 2.5 hours. So, by the time it is allowed to pass, thousands of people are ready to descend.

Each face here is etched with fear and desperation. Nothing makes it to the United Nations warehouses.

On the other side of the enclave lies another aid entry point, Zikim. Gazans call it the place of death. For most, there is an arduous journey to get here, and then a long wait, often crouched and afraid that death may strike.

Suddenly, people start running towards danger. Food has arrived.

Our cameraman hangs back for his safety. As people return, so do the accounts of horror at the crossing. This injured man says he's lucky he made it out alive.

"You go out to get a bag of flour for your family," he says. "But you're the one that returns in a body bag." Amid global outrage, Israel says it is implementing tactical military

pauses for ten hours a day in limited parts of Gaza to allow more aid into the strip.

But even during these so-called pauses, fathers are risking their lives to feed their children.

"Three hours under fire and tanks beside us, just to get this bag," he says. "We want the aid delivered to our children safely, peacefully. Please end this siege on us and on our children."

On this day, at least 60 people were killed trying to get food aid, according to Palestinian health officials. But the dangers don't end here. Criminal gangs may try to rob them on the way home. Some have armed themselves with household objects just in case.

If they make it back, their families will eat tonight, a luxury here where a third of people go one or more days without food.

Everyone here is afraid. Even the aid workers. CNN spoke to a local clansmen who sent us this video. He says it shows his men providing security to an NGO.

Loaded trucks speed down the road as the clansmen fired dozens of warning shots. This is seemingly the only way to ensure the cargo reaches its destination intact.

Law and order has broken down here. That's why Israel says it is now allowing airdrops. But the U.N. warns these are inefficient, costly and dangerous.

You can see why here. The goods land amid gunfire. Only the strong or armed will grab a box.

"I got nothing," this woman says.

The man behind her adds, "The criminals take it and sell it on the black market. This is not a solution."

These chaotic, limited, and deadly sites are now the only way most can get food. Children are left fighting over scraps. Many will go to bed with empty bellies tonight.

Salma Abdelaziz, CNN, London.

(END VIDEOTAPE)

SANDOVAL: Well, a young life cut short by Russia's brutal strikes on Ukraine.

(BEGIN VIDEO CLIP)

ANASTASIYA CHAICHENKO, MOTHER OF 10-YEAR-OLD BOY: (SPEAKING FOREIGN LANGUAGE)

GRAPHIC: Very caring, very bright boy. Very. (END VIDEO CLIP)

SANDOVAL: Still ahead, the death of a ten-year-old boy leaves that mother you just heard from, her life in tatters. That and much more. You're watching CNN NEWSROOM.

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[00:19:07] SANDOVAL: U.S. envoy Steve Witkoff will be heading to Russia in the coming days. President Donald Trump made the announcement on Thursday.

This just days ahead of his new deadline for Moscow to make peace with Ukraine. If it doesn't, the Kremlin could face new tariffs and also secondary sanctions by late next week.

Well, more than 2,700 children, they have been killed or wounded since the war in Ukraine started. That's according to the U.N. One of them is ten-year-old Tymur Grigorenko, who was killed when a bomb hit his grandmother's home just last week.

As Nick Paton Walsh reports, his mother is now suffering through the agony of losing her only child. But first, a warning that some of the images in this story are disturbing.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN INTERNATIONAL CORRESPONDENT (voice-over): When wars kill for years, names bleed into lists without faces, but each loss still burns a black hole in the worlds they left behind.

Tymur was age 10. He was visiting his grandmother in Kramatorsk -- He really wanted to see her -- when a 250-kilogram Russian bomb hit her top-floor home.

It was 4:40 a.m. on July the 22nd, and Tymur slept alone in the spare room.

Toys flipped up on the roof. His mother, Nastia, had left them together that night and was due to take Tymur home to Kyiv the next morning.

CHAICHENKO: (SPEAKING FOREIGN LANGUAGE)

GRAPHIC: He said he wanted to stay. I said, "No, son, we're going. We're definitely going." Then, at that very moment, I wasn't at home, unfortunately. I don't know why or how, what forces took me away from it. But I should have been with him. And I blame myself very much for that.

WALSH (voice-over): Tymur grew up in war, born in 2015, when Vladimir Putin was also annexing towns while talking peace.

His father Yevgeny, playing with him here, was killed fighting the Russians near Lyman 26 months ago. When Nastia's sister rang at 5 a.m., she sensed it meant more loss and at first, hung up. Didn't want to take the call.

CHAICHENKO: (SPEAKING FOREIGN LANGUAGE)

GRAPHIC: She said, "They took mom away. And they're searching for Tymur under the rubble." From that moment on, I felt like I was in a dream.

WALSH (voice-over): At the scene, rescuers had pulled Tymur out. And here: their desperate efforts to resuscitate him.

CHAICHENKO: (SPEAKING FOREIGN LANGUAGE)

GRAPHIC: It was like a new breath of hope when one of the soldiers came out and said that he had a pulse and they were resuscitating him. And for those 40 minutes while they were pumping him, I prayed to God to give him life. But the miracle didn't happen. And I couldn't go up there. I went straight to my mom at the hospital.

WALSH (voice-over): Tymur was the only one to die that night and is buried on the edge of Kramatorsk, where the graves are ready for more. And the skyline, often loud.

Nastia remembers their last moment together.

CHAICHENKO: (SPEAKING FOREIGN LANGUAGE)

GRAPHIC: You know, it was such a very warm last moment with him. We went crazy. I showed him how I used to give him massages when he was a baby. We laughed. And that was it.

TYMUR GRIGORENKO, KILLED BY RUSSIAN STRIKE: (SPEAKING FOREIGN LANGUAGE)

GRAPHIC: I wish you a beautiful love. I wish you a happy family.

CHAICHENKO: (SPEAKING FOREIGN LANGUAGE)

GRAPHIC: He loved all the animals very much and kids. At home in Kyiv, he has two pet rats waiting for him. He loved them madly. He constantly called me and asked, "Mom, did you clear their cage? Did you feed them? Do they have water?" Very caring, very bright boy. Very.

WALSH (voice-over): As towns fall and deadlines pass, remember Tymur Grigorenko, aged ten, who knew only war; whose teacher said he spoke up when girls were picked on; who had two pet rats; and who really wanted to stay with his grandmother on the night a Russian airstrike killed only him as he slept.

Nick Paton Walsh, CNN, Kramatorsk, Ukraine.

(END VIDEOTAPE)

SANDOVAL: Just one of, again, 2,700 different stories.

And we still have a lot more ahead in the coming minutes, including federal authorities. They are now investigating this Delta flight that we want to show you after some extreme turbulence threw passengers, crew. Really, basically anything that wasn't strapped down went flying into the air.

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[00:29:13]

SANDOVAL: And welcome back to CNN. I'm Polo Sandoval in New York. Let's take a look at today's top stories.

Well, the White House unveiled its new trade plan on Thursday, just hours before President Donald Trump's self-imposed deadline.

A senior administration official says most countries will be facing a 10 percent tariff. That's when the policy takes effect next week.

Other nations with which the U.S. has trade deficit, they will be hit with at least a 15 percent rate.

U.S. envoy Steve Witkoff, he will be heading to Russia in the coming days. President Donald Trump making that announcement on Thursday.

Moscow facing a deadline next week to make peace with Ukraine or face new sanctions. But Mr. Trump also says that he's not sure if those sanctions would change Russia's behavior.

And flood waters, they are receding in many parts of the mid-Atlantic and Northeastern United States. This after heavy rain brought flash flooding to parts of New Jersey, New York, Pennsylvania, Maryland, Virginia.

That flooding inundating roads, rail transportation systems, and also disrupted travel.

While on the travel topic, Delta saying that all crew members and the passengers willing to share their hospitalization status have been discharged after severe turbulence forced their flights into an emergency landing. Want to get you now some new details from CNN's Pete Muntean.

(BEGIN VIDEOTAPE)

PETE MUNTEAN, CNN CORRESPONDENT (voice-over): The images captured by passengers prove the force of what could be the worst case of turbulence on a U.S. commercial flight in years.

Anything not strapped down was tossed to the ceiling of the Airbus A- 330 about 40 minutes into the nine-hour flight from Salt Lake City to Amsterdam.

UNIDENTIFIED MALE: Minneapolis tower, Delta 56, emergency aircraft.

MUNTEAN (voice-over): The unplanned landing in Minneapolis was caught on video, with emergency crews waiting at the gate.

Twenty-five people, nearly one in every 10 on board, were taken to hospitals.

WILLIAM WEBSTER, DELTA 56 PASSENGER: I watched a wine cart just get thrown into the air.

MUNTEAN (voice-over): William Webster says the bad turbulence came on quickly and only got worse.

WEBSTER: It was very unnerving. I mean, I'm a frequent flier. Like, I'm on like 80 flights a year, probably flown over a million miles in my life. Never seen anything like that.

MUNTEAN (voice-over): Flight radar 24 shows the flight climbed more than 1,000 feet in less than 30 seconds, followed by a rapid descent, causing passengers to scream and phones to go flying.

The flight was over Wyoming, where the National Weather Service warned of potential thunderstorms on Wednesday.

ALLISON CHINCHAR, CNN METEOROLOGIST: A Sigmet, which is an aviation weather advisory, was in effect where we believe the turbulence took place over portions of Wyoming.

MUNTEAN (voice-over): It is just the latest example of passengers being rocked by turbulence in flight. Last year, a British man died after turbulence on a Singapore Airlines flight.

But fatalities are rare, and such incidents often leave flight attendants with broken bones. In this latest case, one passenger who suffered whiplash said the episode felt like an earthquake.

LESLIE WOODS, DELTA 56 PASSENGER: There's little girl across the aisle from me that was just terrified. She screamed, "We're going to die. We're going to die." So, I was trying to keep her calm, and I really thought we were going to die. It was that scary.

MUNTEAN: The National Transportation Safety Board is investigating this. It says turbulence is the top cause for injuries on board commercial flights.

The pilot told passengers that this episode came on without any warning.

Seven Delta crew members were injured in this. The airline says they have since been released from the hospital.

Pete Muntean, CNN, Washington.

(END VIDEOTAPE)

SANDOVAL: Well, Apple is marking an iPhone milestone as it announced quarterly earnings on Thursday. More on that after this short break.

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[00:37:46] SANDOVAL: Well, Apple says that it's now shipped more than 3 billion iPhones. CEO Tim Cook revealing that figure when Apple became the latest tech company to report its earnings for this quarter.

But as CNN's Clare Duffy reports, President Trump's tariff policy, that continues to hang over the tech industry.

(BEGIN VIDEOTAPE)

CLARE DUFFY, CNN CORRESPONDENT: Yes, I think the question going into this earnings doubleheader was really about what the impact of this sort of whiplash we've seen on tariffs over the past few months has meant for both Apple and Amazon.

And I think the answer is that these companies haven't seen a huge impact just yet. Both companies beat Wall Street's expectations on both sales and profits. But there are still big questions about what tariffs could mean as we go through the rest of this year.

Now, Apple actually said that it believes tariffs led to higher sales in the June quarter as consumers raced to buy up devices ahead of costs potentially going up. The company posted year-on-year sales growth in iPhone, Mac and services and, crucially, year-on-year growth in the China region, which is something that it hasn't seen so far this year.

Now, the company did say that it took on $800 million in tariff- related costs during the June quarter. And in the September quarter, it expects to see $1.1 billion added to its costs because of tariffs.

So, it is not completely out of the woods just yet. But I think there are good signs in terms of consumers continuing to go to Apple for devices, despite the fact that the company has been behind many of its rivals on artificial intelligence.

Now, if we look at Amazon again, results are pretty mixed. But on the whole, I think a good sign. The company said that it had its biggest Prime Day ever.

But if you look at the stock market reaction, I think what we're seeing there is Wall Street reacting to the AWS results. AWS sales were up 17.5 percent year-on-year, but essentially in line with analysts' expectations.

And those expectations are so high because there is this race to provide cloud services for artificial intelligence. And we saw the stock pop off after Microsoft's results, after Google's results on strong performance in their cloud division.

So I think that analysts would like to see and investors would like to see an even strong performance -- even stronger performance from AWS on its A.I. services.

[00:40:08]

Clare Duffy, CNN, New York. (END VIDEOTAPE)

SANDOVAL: And former Vice President Kamala Harris, she will be releasing a book next month about her historic run for president. And it's going to be titled "107 Days."

The book will be offering a behind-the-scenes look at the shortest presidential campaign in modern history.

In this social media post we want to show you, Harris actually said, "What the world saw on the campaign trail was only part of the story."

Well, thank you for watching CNN NEWSROOM. I'm Polo Sandoval. We'll be right back with much more news at the top of the hour. For now, though, we leave you with WORLD SPORT.

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