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CNN This Morning
U.S., Mexico and Canada Begin Trade Talks; Medicare is Now Covering Weight Loss Drugs; Small Crowd Sizes at the Great American State Fair. Aired 6:30-7a ET
Aired July 02, 2026 - 06:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[06:33:42]
AUDIE CORNISH, CNN ANCHOR: Good morning, everybody. I'm Audie Cornish. I want to thank you for joining me on CNN THIS MORNING.
It's now half past the hour. And here's what's happening right now.
There is a heat wave, a dangerous one, moving in along the East Coast. More than 160 million people under heat alerts through July 4th weekend. That's according to the National Weather Service. So, some cities will feel their hottest temperatures in more than a decade.
And then two daredevils facing charges after climbing to the top of the needle of the Empire State Building. The two evaded security to unfurl a banner about 1,450 feet above the city.
(BEGIN VIDEO CLIP)
SPEAKER 1: Yes, what's with all the hoopla going on over there?
SPEAKER 2: Two geniuses climbed to the top of the Empire State Building at the top of the spire. It's a male, female dressed in black. They had some flag they were waving when they were up at the top. And he just proposed to her.
(END VIDEO CLIP)
CORNISH: Investigators are still trying to figure out how they accessed a restricted area not open to the public.
And an EMS recording obtained by an independent journalist appears to shed more light on Senator Mitch McConnell's hospitalization. In the audio, the dispatcher says the call is for a, quote, cardiac arrest and that the patient is unconscious. CNN has confirmed the address on the call matches the senator's address, and we have reached out to the D.C. Fire and EMS Departments seeking a recording of the 911 call and the incident report.
[06:35:12]
McConnell's current condition is still unknown. His office has not disclosed the reason for his hospitalization.
And President Trump calling a mulligan on one of the signature trade deals of his first term. The White House announced yesterday that it will not renew the USMCA trade agreement with Mexico and Canada. The decision comes as no surprise.
Here's President Trump just a few weeks ago.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: I don't know that I'm going to renew it because, to be honest with you, the United States does much better. We don't need anything that Canada has. We don't need anything that Mexico has. But they need everything that we have.
(END VIDEO CLIP)
CORNISH: So, in 2024, the U.S. imported more than $900 billion in goods from both Mexico and Canada. The White House blames the deal for worsening the U.S. trade deficits with Mexico and Canada. Now, the decision raises economic uncertainty for businesses. The supply chains they have run through all three countries. And critics fear significant changes could raise prices on everything from new cars, to lumber and groceries.
Group chat is back.
Mike is taking notes.
What are you --
MIKE DUBKE, FORMER TRUMP WHITE HOUSE COMMUNICATIONS DIRECTOR: I am taking notes. I'm writing this down.
CORNISH: I -- yes, that's fine. That's actually a badge of honor on this show.
DUBKE: Well, I appreciate that then.
CORNISH: So, tell me what you think of this. I look at this as NAFTA 3.0, which we know they didn't really like NAFTA in the first place.
DUBKE: Right.
CORNISH: And it sounds like they don't like the USMCA any much better.
DUBKE: So, I think the most important part of this reporting is the unpredictability of what we're talking about here. This trade agreement goes through 2036, I believe. So, if we didn't renegotiate and do this the way that they want to, which is every year, which creates that unpredictability, which is terrible for business. You know, looking down the road, we should know what the deal is.
But why is Trump doing this now? I think it's the transshipment of Chinese goods through Mexico. He feels that they're cheating. It is the trade deficit that you're talking about. And he likes bilateral deals rather than these trilateral deals.
CORNISH: I was about to say, he doesn't really like any group anything. And he's already in these one-on-one -- he's --
DUBKE: He's not in a group chat.
CORNISH: No, I don't think so. His group chat is with America and Truth Social.
DUBKE: Yes.
CORNISH: So, this would be reviewed every six years. It expires July 2036, as you said. So, that was many years of certainty, which could be out the window.
DUBKE: Out the window.
CORNISH: Well, how do Democrats talk about this? I think about this era of deal making, which was pushed by globalization as just a huge part of especially a centrist argument by the Clinton-style Democrat. Do you go to bat to this now in a populist age?
MEGHAN HAYS, FORMER BIDEN WHITE HOUSE DIRECTOR OF MESSAGE PLANNING: No, this is -- it's, to your point, this is going to create more uncertainty when people can't afford food and the majority of our fruits and vegetables come from Mexico. People can't afford housing. Lumber comes from Canada. The fact that he's so arrogant that he just said, we don't need anything from these two countries is completely false. We have cars that are made in Mexico that then come here and are assembled here then are considered made in the USA.
CORNISH: Yes.
HAYS: There is so much that these two countries --
CORNISH: But to your point, Democrats might fight it. I mean there are some Democrats in border states, Washington, Michigan, Arizona, California. And then we had Representative Suzan DelBene on here yesterday. She's the head of the group that's supposed to help Democrats get elected. And she said that, online, "Washington has particularly benefited from this agreement and is one of the states with the most to lose by withdrawing." She says withdrawing "will harm our already war and tariff-ravaged economy, threaten jobs. This is a gravely misguided step by the president."
I am curious about how this intersects with tariffs, and that regime has not gone well.
HAYS: Well, I just think that it just is creating more uncertainty in our economy when people can't afford the uncertainty. And when you can't afford your groceries and our groceries are coming -- and a lot of it is coming from Mexico, that is a problem. So, it's not even -- to me, it's not even necessarily about the minutia of the actual trade agreement and figuring out the specifics of it.
CORNISH: Right. You see it as insult to economic injury.
HAYS: Exactly. And he's just -- it's like he does not care literally about anybody, about the American people.
DUBKE: See, I am going to push back on that because where he -- where it is going to be bad for border states, which are mostly blue states, but we don't -- we won't get into that political conversation to the north.
CORNISH: Texas.
HAYS: Arizona and New Mexico. I mean --
DUBKE: To the north. To the north.
CORNISH: OK.
DUBKE: Let me finish my sentence.
CORNISH: Texas is so big, though.
HAYS: Michigan.
DUBKE: Because when I said it, I realized I needed to say to the north.
CORNISH: Go ahead.
DUBKE: But when we we're talking about autos, for instance, that that is part of the -- that is part of the upset with Mexican -- with Chinese manufacturing of automobile parts being shipped to Mexico, then put in as part of this agreement and then shipped to the United States. It's a way to skirt all of the tariffs on Chinese manufacturing, on goods and services, especially agricultural products that we ship both north and south from middle of America.
[06:40:01]
Those shipments are -- we're being hurt with those shipments as well.
So, there are two sides to this argument. But where I agree with you is on the uncertainty. The problem -- you want some level of certainty with trade agreements. And now to bring this up again --
CORNISH: The only person who has benefited from the uncertainty is the president and the stock market right now. That's what we are seeing in the first (INAUDIBLE).
HAYS: As we talked about in the first bloc, where he's made bazillions of dollars.
CORNISH: So, I want to talk about something else that affects you.
For the first time ever, millions of people on Medicare can get weight loss drugs. Starting this week, certain Medicare enrollees will be able to get certain GLP-1 medications for, get this, $50 a month. Now, exactly how much the pilot program will cost, or how many people will sign up, that's unknown.
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DR. MEHMET OZ, ADMINISTRATOR, CENTERS FOR MEDICARE AND MEDICAID SERVICES: This opens access to GLP-1 medications to lots more people with Medicare to help you lose weight as part of a healthy lifestyle, and you're going to pay a much lower cost than you'd typically find in other places.
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CORNISH: All right, joining me now, my friend, Julie Rovner, chief Washington correspondent for Kaiser Health News.
I feel like this is something that really is going to be in group chats today. Who would be eligible under this pilot program, pilot, meaning the government isn't sure they want to be in the business of buying everybody their GLP-1s. But who would qualify?
JULIE ROVNER, CHIEF WASHINGTON CORRESPONDENT, KAISER HEALTH NEWS: That's right. Well, there are already people who are getting these drugs because they have -- they're not just overweight or obese, but they have other health problems that qualify them for the drug. So, those people, nothing changes. But there are somewhere in the neighborhood of three, four, five million Medicare beneficiaries who would like to take these drugs purely for weight loss. That's something that Medicare has banned since the beginning of its drug benefit in 2003. And for the first time, they will be able to get these drugs, as Dr. Oz says, for $50 a month. But it only goes for a year and a half. And we don't know what happens after the end of this pilot program. So, are these people going to get on these drugs, lose a lot of weight, and then be told, sorry, you're going to have to pay full freight or you're going to have to go off them and maybe gain all the weight back.
CORNISH: And we should say, to qualify, you have to have a BMI of 35 or higher for people who are checking their BMIs.
And right now we know, in terms of U.S. adults who are using GLP-1s, 76 percent of them right now are getting them from their doctor's office directly, right? Just 17 percent getting them from websites.
And I guess one of the things I'm trying to figure out is, because there are other health benefits to GLP-1s, which we're only really coming to understand now, could this bring down the cost of health care in a population of people that have a lot of health issues?
ROVNER: Well, that's exactly why both the Biden administration and now the Trump administration want to at least try this. We have all this sort of tantalizing research that suggests that GLP-1s do more than help people lose weight. They really can help with other underlying health problems, particularly health problems of the elderly, you know, propensity to heart attack and stroke and things that are really, really expensive. So, they're hoping that, you know, that these drugs really can help in the long run bring down Medicare costs. Although, you know, as we know with people who are aging, eventually something is going to get you. So, it's not going to be a huge money saver if people live 20 or 30 years longer and government has to continue to pay for them.
CORNISH: So, before I let you go, which drugs specifically would be covered? What formats?
ROVNER: So, the government basically did a deal with the two biggest makers of these drugs, Eli Lilly, Novo Nordisk. Each of them will offer both a pill version and an injection version. And I think in both cases, the injection versions work a little bit better but are a little bit more trouble. So, you know, up to individual people.
But again, you have to go through your doctor. You have to get prior authorization. It's not just for people with BMIs over 35. If you have a lower BMI, but you also have a potential health problem, you can also qualify. So, as they always say, talk to your doctor.
CORNISH: And will this affect insurance companies or are they just watching and waiting?
ROVNER: Right now they're just watching and waiting. This was supposed to start with insurance -- with the Medicare Part D plans, the prescription drug plans in Medicare. And they were worried about costs. So, they didn't sign up to do it. So, right now, the government has cut its own deal with the drug companies, which is why people will be able to get these drugs for $50 a month. But as we say, it only goes through the end of 2027.
CORNISH: OK. Well, Julie, thanks for explaining it. Appreciate it. Hope to have you back.
ROVNER: Thank you.
CORNISH: And it is now 44 minutes past the hour. This is your morning roundup.
We are still watching what's happening in Venezuela with rescue efforts continuing. But the death toll has risen to nearly 2,300 after last week's earthquakes. You've got one pathologist telling CNN the government is undercounting the number of dead.
[06:45:04]
The quake struck more than a week ago. Crews, however, are still finding survivors in the rubble. They're trying to, as you can see here, save a man they found buried beneath the rubble of a shopping mall parking lot. And rescuers are using a hose to try to give him food and fluids.
And one week after choosing not to retry disgraced movie executive Harvey Weinstein, Manhattan D.A. Alvin Bragg is calling on lawmakers to help survivors of sexual assault get justice.
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ALVIN BRAGG, MANHATTAN DISTRICT ATTORNEY: One positive development is that the courage of survivors who have the power to come forward, given who he was at that time, I think that laid groundwork for other survivors to come forward. And that is, I would say, positive. But there's no winners here.
(END VIDEO CLIP)
CORNISH: Weinstein's conviction on rape and sexual assault charges, well, that was overturned in 2024. A New York appeals court ruled testimony from witnesses who said he used his Hollywood influence to take advantage of them was, quote, "erroneously admitted."
And in an effort to reduce food waste, a new law banning "sell by" labels on food takes effect in California today. That means foods sold in the state must now use one of two standardized labels. So, it's either got to say "best if used by" for peak quality or "use by" for product safety. The "sell by" was intended to be used for retailers to help them determine how long to keep food on the shelves but it can be confusing for consumers who throw out food that is still safe to consume. A bipartisan bill that would establish uniform food labels nationwide is actually pending in Congress.
And next on CNN THIS MORNING, Trump wants the 250th birthday of the country to be a legacy defining centerpiece for him. Or will it be just a blip on the historical radar?
Later on CNN, an update in the search for Nancy Guthrie. Why the FBI believes some of the ransom notes may have just been extortion attempts and not even legitimate.
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[06:51:15]
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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: By the way, on July 4th, it's going to be approximately 107 degrees out. And I'm going to go and I'm going to make a really long speech just to show that I can do anything.
(END VIDEO CLIP)
CORNISH: President Trump promising the most unforgettable birthday party any nation has ever celebrated. So far, the Great American State Fair, however, has arguably been a bust. Sources tell CNN there's a lot of angst in the White House over those small crowd sizes. Still, the president is making America's 250th birthday celebration a legacy defining centerpiece of his second term, comparing himself to the nation's 26th president, Theodore Roosevelt.
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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Theodore Roosevelt reminds us all that to be a great nation and to be a free nation we must have courage. Without courage, you have nothing. As T.R. once put it, freedom is not a gift that lasts long in the hands of cowards. How about that? Doesn't last long in the hands of cowards. What a great statement.
(END VIDEO CLIP)
CORNISH: It is. And the group chat is back.
I just want to play -- I actually wasn't sure we were going to do this story this week because I was like, it's really hot. Maybe people aren't going to this Great American Fair because it's really hot.
I'll play -- I'll play for you just what they're saying on the internets, the people who have gone to the fair to try and have a good time down on the National Mall.
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UNIDENTIFIED FEMALE: When I got inside, I felt like I was just aimlessly roaming. I didn't know what was going on. There was no schedule. Something needed to be scheduled like every hour. Show me like what was happening today. A big sign. Like a, you are here and here's where all the things are.
UNIDENTIFIED MALE: How did we have 250 years to plan the Great American State Fair and ended up with this hot mess? Forewarning, if you're a D.C. local and this was your Fourth of July plan, I'd plan something else.
UNIDENTIFIED MALE: Wow, I just got back from Donald Trump's Great American State Fair and it was incredible. There were so many people there. I couldn't believe it. I don't think I've ever seen that many people in one place at once.
(END VIDEO CLIP)
CORNISH: The internet is undefeated, but we know this White House cares about crowd size.
DUBKE: Yes.
CORNISH: It's a thing.
DUBKE: Was that -- that was sarcasm, right?
CORNISH: That was sarcasm.
DUBKE: OK. I just wanted to --
CORNISH: Yes.
DUBKE: Look, this is a great concept. I, as a -- as a kid, I snuck into the Erie County Fair, which is larger than most state fairs. And this is my shout out to western New York again. But state fairs are awesome. I didn't see any rides. I didn't see any animals. I didn't see --
CORNISH: There was a Ferris Wheel.
HAYS: It stopped -- it like stopped at one point because the generator broke.
DUBKE: OK, what -- all right.
CORNISH: Meghan.
DUBKE: I didn't see -- where are the animals? Where are the --
HAYS: There was a rodeo at one point.
DUBKE: Where's the 4-H? I mean this actually really could have been a great, very cool concept.
HAYS: A cool concept.
DUBKE: And, unfortunately, it seems like it didn't get brought off in that way.
CORNISH: But it's again on the list --
DUBKE: No demolition derby.
CORNISH: On the list of cell phones, this one is high because there was an organization that was planning 250 events. It was bipartisan. It was approved by Congress. They had been planning. And then the Trump folks came in and said, no, we have our own group. And it's been this.
DUBKE: Yes. But they also got funded. The other group got funded.
CORNISH: Yes.
DUBKE: What is there -- what are they -- where's the counter state fair then?
CORNISH: Well, I do --
HAYS: So, where are they going to have it?
DUBKE: When?
HAYS: Like where -- but where are you going to have it.
CORNISH: Yes.
DUBKE: Well, I --
HAYS: The park service is run by the president --
DUBKE: Right.
HAYS: Like, the president has --
CORNISH: Say that again. The park service -- HAYS: Is run by the president. That's something -- the Department of Interior. There you have it.
DUBKE: Yes.
HAYS: So, it's a -- it's an executive branch function.
But also, this is more about the corruption. They came in. They had their own organization. People are sponsoring it. More money going to them. And the execution here on something that could have been incredible is just so terrible. There's no one there. There's no food. There's no rides. There was no semblance of a state fair. And it's just really unfortunate because our country -- like, everyone deserves better here.
DUBKE: Did they have a fried stick of butter?
HAYS: I did not see that.
DUBKE: No. And that makes me sad.
CORNISH: Not even -- they couldn't even afford butter.
[06:55:02]
DUBKE: That makes me sad that they didn't have that.
CORNISH: It doesn't make me sad.
DUBKE: I am.
CORNISH: I think what it is, is I -- look, positive, you can now see Ludacris, I think one of my producers told me, in Ohio, OK. Like other places are going to have really great 250 events. My family is going to be up in Plymouth, Massachusetts. Calls itself America's hometown. There's going to be awesome parades and everything there.
DUBKE: I'm very excited about that.
CORNISH: It is disappointing that in the nation's capital what we've got is a green reflecting pool with barbed wire --
DUBKE: See, now you're just going to the negatives.
CORNISH: The generator out on the Ferris Wheel.
DUBKE: I understand that.
CORNISH: It's hot as heck and there's not even fried butter, as you mentioned.
HAYS: And the fireworks are getting pushed back to 11 p.m. because he wants to give a speech for 45 minutes --
DUBKE: Except --
HAYS: And the weather's going to be so terrible you won't be able to see from anyplace (ph).
DUBKE: As anyone who has ever gone --
CORNISH: He's not in charge of the weather, OK? Let me do that.
HAYS: No. But -- no. But you won't be able to do that. And so it's like --
DUBKE: No.
CORNISH: But the point is, it didn't have to be this way.
HAYS: That's right.
DUBKE: But as somebody who's gone to the fireworks on The Mall in past years, one of the great things for me was, you have our fire -- the fireworks on the National Mall. But then every community around, the fireworks are going off.
CORNISH: Yes.
DUBKE: So, when the president's talking about this long speech, he's going to be ringed by fireworks by all these small communities, from Fairfax, to Maryland, to all over. I don't know how he's going to get his speech off. I don't think they're thinking this through.
HAYS: But also --
CORNISH: I mean I grew up in Boston, like, seeing the symphony and the fireworks on the esplanade (ph)
DUBKE: Yes.
CORNISH: I care -- I like love July 4th, I can tell you.
DUBKE: Yes.
CORNISH: And as an immigrant, I love July 4th. I think that everybody feels like, why do the vibes have to be off on something that should have been politically neutral? And now the events, that Freedom 250 has made, and I'm saying Freedom 250 --
DUBKE: I know, you're drawing your line there.
CORNISH: I draw a line by congressionally approved versus not. I like that line because it's like my tax dollars and who represents me, is like, it didn't have to be this way. You didn't have to have a moment where Martina McBride, of all people, has to be like, you know what, I'm out. This is too political.
DUBKE: But to your larger point, I think once you get outside the beltway, where America is going to be celebrating this, in small towns across the country, I mean, if you want a call-out, leave Washington --
CORNISH: Yes. Of course. DUBKE: Don't go through DCA, though --
CORNISH: It sounds --
DUBKE: Because it will be shut down. But we --
CORNISH: Yes, because airspace is shut down.
DUBKE: The airspace will be shut down. But leave Washington.
CORNISH: It doesn't feel the tiniest bit defeatist to you to just say, welp, states, it's your turn because we couldn't do it.
DUBKE: No, no, I -- laboratories of democracy.
HAYS: But I think that --
CORNISH: Oh, great. Well.
HAYS: But I think people are tired of Donald Trump's chaos and tired of all of this -- the antics anyways. And so I think that people have turned to their communities writ large the last year anyway. So, I think --
CORNISH: Yes. Or to the Taylor Swift wedding.
HAYS: And so I think people are paying attention to what's going on in their communities. They'll enjoy their own parades and their own fireworks. And that's what's so great about our country.
CORNISH: You're right.
DUBKE: Well, I --
CORNISH: And maybe that is a good thing for celebration of colonial independence.
HAYS: We're resilient. We're resilient.
CORNISH: Shout out to the colonies.
DUBKE: Meghan's right, Donald Trump, community builder.
CORNISH: OK. Great.
HAYS: Oh, OK. Yes. That's --
CORNISH: Is that what's in your group chat? We're doing group chats next.
HAYS: So, in my group chat is McDonald's in honor of America's 250, has brought back the fried apple pie.
CORNISH: Oh, my God, you are the second person in the group chat to bring up this fried apple creation.
HAYS: Oh, really?
DUBKE: Yes.
HAYS: No, it's -- they got rid of it. They got rid of it in 1992. It's now back.
DUBKE: Slow burns.
HAYS: And it is also so delicious.
DUBKE: Yes.
HAYS: But, you know, I love fast food almost as much as I love Bravo. So, that is why I'm talking about McDonald's fried apple pie. It is so good. I had it last night.
CORNISH: Shout out. I hope, I hope you can get spawn con (ph) of that. I hope the next time you come here you just have like an arm full of breakfast for us.
HAYS: I should have -- I should have brought you one. I'm sorry.
CORNISH: Yes. OK. Go on.
DUBKE: They are very good. And they burn. They burn. You got to wait. Wait.
HAYS: Yes, they're warm.
DUBKE: For those that haven't had these as children, wait to eat the fried apple pie.
CORNISH: We do not need pro tips. They sell them to you. Go on.
DUBKE: No, I -- but it hurts. It's like the coffee. It burns you.
HAYS: Yes.
DUBKE: Anyway, so --
CORNISH: Well, that's good anyway. Now we have to apologize to McDonald's instead of thanking them. Go on.
DUBKE: So, I tried to think of a public policy thing to tie this next -- my group chat into.
CORNISH: Oh, exciting.
DUBKE: Which is, there's a Norwegian study out that in Norway they have given eighth graders tablets. So, nobody's reading books anymore. And what they've found is that the retention level of the students is subpar to the rest of students in Europe because they're not reading books. And the reason I bring that up is because I was told that I had to watch "Off Campus."
HAYS: Yes. DUBKE: I was told by you that I had to watch "Off Campus."
HAYS: Yes, "Off Campus." Not on an airplane. Not on an airplane.
CORNISH: The college romance streaming right now on Amazon.
DUBKE: But not on an -- yes, but not on -- but not on an airplane, where I binge watch most of my stuff --
CORNISH: No, not on an airplane.
DUBKE: Because it's a little risque and I'd have to put my screen down.
CORNISH: Right.
DUBKE: So, I started to watch it, and it became -- I had to turn it off halfway through.
CORNISH: Too hot for Dubke.
DUBKE: It was too hot for me. It was -- it was --
HAYS: The prude of the group chat.
DUBKE: So what -- so what I realized was, this had to be a series of books because it was so ridiculous. And it was.
HAYS: Yes.
DUBKE: And it had to be by a Canadian author because there was a hockey fetish in it.
CORNISH: There's eight books, I've learned.
DUBKE: Yes. I have one.
HAYS: Yes.
DUBKE: This is the book. This is -- this is the deal. This is the beginning of the series.
HAYS: Can I borrow it? I'll read it.
DUBKE: Oh, no, you don't have to borrow it.
CORNISH: You'll just read the steamy parts.
[07:00:01]
DUBKE: This is my gift to you.
HAYS: Oh, thank you.
CORNISH: Oh.
DUBKE: So, this is summer reading for you.
CORNISH: It is.
HAYS: OK. This is number one?
DUBKE: Because -- this is number one.
HAYS: Awesome.
DUBKE: I want you to start at the beginning. But I want you to take that to the beach.
CORNISH: Mike, all I've learned is not to send you like an eggplant emoji or something like that in the group chat.
DUBKE: No. No. Well --
CORNISH: It seems like you were puzzled -- you were puzzled by a lot of the modern detailed.
HAYS: Now I have a book club.
DUBKE: I am not puzzled. I am not puzzled.
HAYS: Group chat book club.
DUBKE: Book club. Yes, group chat book club.
CORNISH: The Dubke Hays book club.
DUBKE: We just started it.
HAYS: Yes.
CORNISH: We got it. Coming to Norway soon.
HAYS: Thank you. That's so sweet.
CORNISH: Thank you for waking up with us. I'm Audie Cornish.
