Return to Transcripts main page
Early Start with Rahel Solomon
China Calls Claims Of U.S. Trade Talks "Fake News"; Trump Slams Russian Attack; Massive Crowds Mourn Pope's Passing; Fact-Checking Trump's Claims About Price Of Groceries & Gas. Aired 5-5:30a ET
Aired April 25, 2025 - 05:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[05:00:23]
RAHEL SOLOMON, CNN ANCHOR: Good morning. And welcome to our viewers joining us from the U.S. and all around the world.
I'm Rahel Solomon. It is Friday, April 25th, 5:00 a.m. here in New York.
And straight ahead on EARLY START:
(BEGIN VIDEO CLIP)
KIM BRUNHUBER, CNN ANCHOR: Beijing could be making its first concession in the ongoing trade war with the U.S.
UNIDENTIFIED FEMALE: I think both sides are playing a kind of game.
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We're in the midst of talking peace and missiles were fired, and I was not happy with it.
JOHN VAUSE, CNN ANCHOR: Special envoy Steve Witkoff is still scheduled to hold talks with Vladimir Putin in Moscow later Friday.
UNIDENTIFIED FEMALE: The preparations for the funeral have been underway.
UNIDENTIFIED FEMALE: I think this is close to his heart, so it's good that he's being buried here.
(END VIDEO CLIP)
SOLOMON: We begin this morning with a global trade war.
Import agencies in Shenzhen say that China appears to have quietly rolled back retaliatory tariffs of 125 percent on some semiconductors made in the U.S.
Now, Chinese authorities have not officially confirmed the exemptions, but they are speaking out against President Trump's repeated claims that talks are underway to resolve the trade war. The foreign ministry calling it fake news, and said again today that there have been no negotiations on tariffs. Trump has said that he is optimistic about a deal that will lower tariffs on China from the current 145 percent level.
Reporters asked him about the talks with Beijing on Thursday at the White House. Here's what he said.
(BEGIN VIDEO CLIP)
REPORTER: Can you clarify with whom the U.S. is speaking with China? They're saying it's fake news that trade talks are happening.
TRUMP: Well, they had a meeting this morning, so I can't tell you.
REPORTER: Who's they?
TRUMP: It doesn't matter who they is. We may reveal it later, but they had meetings this morning.
(END VIDEO CLIP)
SOLOMON: Meanwhile, U.S. Treasury Secretary Scott Bessent seated next to President Trump in the cabinet room, says that a trade deal with South Korea could come as soon as next week.
All right. Let's take a look at global markets. European markets are higher across the board. Let's call it 2/10 of a percent for the FTSE through about 7/10 of a percent for the CAC40, DAX up about 6/10 of a percent.
Let's take a look at Asian markets. See how they closed, mostly higher across the board with the exception of Shanghai. U
U.S. markets obviously open in a few hours. But let's see how futures are shaping up at this morning. Mostly flat for the Dow, but the S&P and the Nasdaq looking slightly better up about one third of a percent at this early hour.
Okay. Let's go to CNN's Hanako Montgomery, following developments from Tokyo.
Hanako, good morning to you.
So, what more do we know about any potential rollbacks of these tariffs in China? What are you hearing?
HANAKO MONTGOMERY, CNN CORRESPONDENT: Hi, Rahel. It's good to see you, too.
I mean, these rollbacks are very telling, given the fact that for months now, Beijing has exuded this air of confidence, of strength in its ability to withstand a brewing trade war with the United States.
Also, notably, it happened just a few days after the U.S. President Donald Trump hinted at a potential U-turn on his trade war with China. Here's what the U.S. president said on Tuesday in the Oval Office.
(BEGIN VIDEO CLIP)
TRUMP: A hundred and forty-five percent is very high, and it won't be that high.
It will come down substantially, but it won't be a zero.
(END VIDEO CLIP)
MONTGOMERY: Now, Rahel, this is a very significant shift in tone, given the fact that over the past few weeks, we've seen tensions really escalating between these two competing economies. But just as you said, China confirmed today that its not in talks with the U.S. about trade, about potentially making concessions on both sides.
Now, according to the experts that CNN has spoken to, Rahel, they say it's unlikely that China decided to really roll back these most recent retaliatory tariffs simply as a direct response to the U.S. president's most recent comments. They say that if that were the case, then China likely would have rolled back these tariffs in public. And also, China has not done that. China also has not responded to CNNs request for a comment.
But on the other hand, experts say that it suggests that microchips, specifically the item that these retaliatory tariffs were targeting, are essential to the Chinese economy or essential to China, and simply cannot be made at home or be sourced elsewhere.
Now, just for some context, I don't want to geek out too much here. Microchips, otherwise known as integrated circuits or semiconductors, are really essential to our everyday lives. They power everything from our phones, our computers, cars, medical devices, et cetera.
[05:05:03]
It's hard to imagine a world without microchips. Thats how essential they are.
But crucially, China actually lags behind other global leaders when it comes to making microchips. Thats why its sourcing them from the United States. It's sourcing them from other countries, and which is why many experts that CNN has spoken to believe that potentially these retaliatory tariffs are meant to really help the Chinese economy and, of course, aid the country's tech industry -- Rahel.
SOLOMON: Okay, so a lot to watch there to see for -- for more clarification, hopefully.
Hanako Montgomery in Tokyo -- Hanako, thank you.
President Donald Trump's special envoy is expected to arrive in Moscow today. The latest effort to get Russian President Vladimir Putin to agree to a ceasefire in Ukraine. This would be Steve Witkoff second meeting this month with Putin and his fourth trip to Russia overall.
Meanwhile, Ukraine reports new Russian strikes this morning. Officials say that those strikes killed at least eight people across the country. On Thursday, Russia carried out its deadliest attack on Ukraine's capital in months, at least 12 people were killed and 90 others were wounded. And air raid sirens blared for six hours during those strikes on Kyiv.
Afterward, emergency services searched for victims who might be trapped in the rubble of a collapsed home.
Fred Pleitgen has more now from Moscow.
(BEGIN VIDEOTAPE)
FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice- over): It was one of the most brutal aerial blitzes since the start of the war. First responders frantically continue the search for possible survivors. Dozens confirmed killed or wounded, Kyiv says.
I don't see strong pressure on Russia nor new sanctions packages against the aggression of the Russian federation, he said.
President Trump reacting, saying he's not happy about the strikes.
TRUMP: I didn't like last night. I wasn't happy with it. And we're in the midst of talking peace and missiles were fired. And I was not happy with it.
PLEITGEN: But Russian state TV in full breaking news mode, claiming the strikes targeted military infrastructure in locations across Ukraine. These videos show the unsuccessful attempts of Ukrainian air defense to shoot down Russian missiles, the anchor says at the moment there is no specific information about which objects in Kyiv were the target.
The attacks come just hours before President Trump's special negotiator, Steve Witkoff, is expected back in Moscow for another possible meeting with Vladimir Putin.
Witkoff recently telling Tucker Carlson he trusts Russia's leader.
TUCKER CARLSON, TV HOST: What did you think of him?
STEVE WITKOFF, U.S. SPECIAL ENVOY: I liked him. I thought he was straight up with me.
In the second visit that I had, you know, it got personal. The president, President Putin, had commissioned a beautiful, portrait of President Trump from the leading Russian artist and actually gave it to me and asked me to take it home to President Trump, which I brought home and delivered to him.
PLEITGEN: CNN recently got an exclusive look at that portrait from the Russian artist the Kremlin commissioned to paint it.
He said he was told it could help improve U.S.-Russia relations, as Moscow remains firmly in control of the pace of negotiations towards a possible ceasefire with Ukraine.
The Kremlin saying they want a peace agreement but on Russia's terms.
We and President Putin are in favor of achieving peace while ensuring the interests of our country, the Kremlin spokesman says this is a mandatory condition.
And a senior senator in Moscow tells me Russia's leadership will not be pressured into a deal.
Trump has threatened massive sanctions if this doesn't work out.
ANDREY KLIMOV, RUSSIAN SENATOR: Sanctions cannot change Russian national interests and our possibility to follow our interests. It is not possible.
PLEITGEN: And the Russians believe they have a good chance to get their way, both on the battlefield and at the negotiating table.
Fred Pleitgen, CNN, Moscow.
(END VIDEOTAPE)
SOLOMON: Mourners from all over the world are pouring into Vatican City to say goodbye to Pope Francis.
Coming up, we'll have the latest details on his funeral plans.
Plus, President Trump says that he is keeping his campaign promise to lower the cost of eggs and other grocery products. But do the facts actually back him up? We will check his claims after the break. We also get the latest read on consumer sentiment today. We will have a preview right here on EARLY START.
(COMMERCIAL BREAK)
[05:14:17]
SOLOMON: The Vatican says that nearly 130,000 people have gathered to pay their respects to Pope Francis before his funeral tomorrow. His body has been lying in state at saint peters basilica since Wednesday. As we look at these live pictures there of the really huge crowds as they continue to pour in today, its doors reopened for the third and final time before the pope's coffin is closed. And in a break with tradition, he will be buried at the Basilica of Saint Mary Maggiore.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE (through translator): I think he chose a place that is appropriate for his person. I think as Pope Francis was.
In my opinion, because he was unique in everything. He was special.
[05:15:00]
And therefore, this choice of the Basilica of the Madonna is special.
UNIDENTIFIED FEMALE: I think it's good for him because he feels at home here. He stopped here before and after every trip that he took overseas. So I think this is close to his heart. So, it's good that he's being buried here.
(END VIDEO CLIP)
SOLOMON: The Vatican says that 50 heads of state and ten reigning monarchs will attend the popes funeral, and security will be tied with more than 2,000 police officers deployed, including sharpshooters and special forces.
All right. Joining us now to discuss is Katie McGrady, CNN Vatican analyst, and host of the Katie McGrady show, on SiriusXM's the Catholic Channel. The channel is operated by the Archdiocese of New York.
Katie, great to have you this morning.
More than 100,000 people, as we just pointed out there, have already appeared at the basilica to visit the pope's body. I imagine millions will be tuning in to see his funeral. What can we expect to see tomorrow?
KATIE MCGRADY, CNN VATICAN ANALYST: S the funeral officially begins at 10:00 in the morning, Rome time. They'll most likely begin the movement of his coffin outside into St. Peter's Square, probably around 930, Rome time. And of course, coverage here on CNN will be bringing it to you.
One of the things I think were going to expect to see are not just large crowds of the faithful, but as you mentioned, so many heads of state from around the world gathering, and it'll be interesting to see specifically where they're seated when you're looking at St. Peter's Basilica, the mass will be outside.
Well, of course, have cardinals and bishops and concelebrating priests, the heads of state actually won't be in the front. It will be all of the other cardinals and the priests. And so, it's really only at a papal funeral that the dignitaries are very much second to the leadership of the church in terms of where they're located. And then the funeral itself will be a funeral mass, not all that different than a funeral mass you'd go to for someone you love, that you're close to, with some distinct moments of prayer. Of course, for the pontiff.
SOLOMON: Yeah, I was just looking at my list of just some of the heads of state that will be appearing. French President Macron and British Prime Minister Keir Starmer, outgoing German chancellor Olaf Scholz, Ukrainian President Zelenskyy, American President Donald Trump and the list goes on and on and on. So, it -- some might say after, of course, being a funeral for the president or for the Pope will also be a bit of a diplomatic event.
Katie, talk to me about, you know, Pope Francis will be the first pope in over a century to be buried outside of the Vatican. This is by request. He wanted to be buried at the basilica of Saint Mary Maggiore.
Why there? What made that so significant for him?
MCGRADY: St. Mary Maggiore, which is about a 50-minute walk from St. Peter's. If you're just taking your time, about a ten-minute drive was one of the most frequently visited places that Pope Francis went to. In fact, it was one of the first places he went after he was elected 12 years ago.
So, he would go and place flowers at an icon, the Salus Populi Romani. Folks might remember back in 2020, when Pope Francis did the Urbi et Orbi during COVID, he actually brought that icon from St. Mary Maggiore to the Vatican so people could see it on the steps of St. Peter's. Its beloved to him.
And so his grave will be in between two chapels, the Sforza Chapel and the chapel where the Salus Populi Romani hangs on the wall above the altar. And so, he'll be closest to the place that he was closest to.
I think it's also important that the bishop of Rome, its one of the titles of the pontiff of the pope. He'll be buried in the city of Rome, not just Vatican City. And I think that's an indication that Pope Francis very much loved that title and wanted to be close to the Roman people.
We were told yesterday that the procession of his coffin from St. Peter's Basilica to St. Mary Maggiore. The coffin will be received by the poor and the needy. Those are the last people that will be with him before he is interred, and I think that's hugely significant.
St. Mary Maggiore is at a part of the city where you often see the homeless and the needy and beggars in that area. It's a very city basilica. So, it's quite important that he's going to be there.
SOLOMON: Yeah. Our understanding from the Vatican is that the group of poor, needy, as you just pointed out, will be on the steps into the basilica as people pay their respects. Now, Katie, for a long time, papal observers, we sort of have already touched on some of the ways this funeral will be different. Talk to me a little bit more about that. I mean, how different will it be or will it still sort of be sort of -- for those who have watched previous funerals before, largely, largely the same.
What do you think?
MCGRADY: So, the biggest change that Pope Francis made is actually what were seeing right now. In the past, the pope's body has been on kind of its known as the bier. So, it's like this platform. He hasn't been in his coffin.
Pope Francis wanted to be placed in his coffin almost right away, so as mourners are coming by, they can see his face. That was really the big change. You can't see his whole body. The funeral, in terms of the mass, the prayers, even I think the homily, those are things that we can expect.
[05:20:07]
And then at the end, when they process out with the coffin, as far as we know, we have not seen a procession of a papal coffin outside of Vatican City in living memory. I'm trying to do the historical research of if we've ever seen something like that, that's going to be the biggest thing to watch as they are bringing that coffin through the streets.
SOLOMON: Yeah. Really fascinating. Katie McGrady in Washington, appreciate you being here this morning. Thank you.
MCGRADY: Thanks so much.
SOLOMON: And join CNN for the funeral of Pope Francis on Saturday. Our special coverage begins at 8:00 a.m. in Rome, 7:00 a.m. in London and 2:00 a.m. here on the U.S. East Coast.
All right. Still ahead for us, President Trump's trade war taking its toll on consumer sentiment. Coming up, we will speak with the senior economist at the Bank of America institute about how people are spending their money or holding back. We'll get into it when we come back.
(COMMERCIAL BREAK)
[05:25:28]
SOLOMON: Welcome back.
U.S. President Donald Trump has been bragging that prices for everything from gas to eggs and other grocery items are going down, but those numbers are not even close to being accurate.
CNN's Daniel Dale looks more closely at his claims.
(BEGIN VIDEOTAPE)
DANIEL DALE, CNN SENIOR REPORTER: Gas, eggs and groceries. President Trump has been lying about the price of all of them. Trump has been trying to play down widespread concerns that his tariffs will fuel inflation. And listen to what he said this week and last week about gas prices.
TRUMP: Energy just hit $1.98 in a couple of states. It's way down.
You have gasoline that hit $1.98 yesterday in a couple of states.
Gasoline yesterday in three states hit $1.98 a gallon.
DALE: This $1.98 figure is fiction. On the days the president specified, he was talking about April 16th and 17th, zero states had an average gas price even close to $1.98, the lowest state average each day, according to AAA was $2.70.
Now, it's true the president didn't say he was talking about average prices. So, you might think, well, maybe he meant there were a bunch of individual gas stations selling $1.98 gas. That isn't true either.
A GasBuddy, a company that tracks tens of thousands of stations nationwide, told me it found zero stations anywhere in the country, selling at even close to $1.98 on either day. In fact, the lowest price it found at any station was $2.19.
Now, let's listen to two false claims Trump made this past week about the price of eggs.
TRUMP: We just had a big easter egg hunt at the White House. Thousands and thousands of eggs. And the price was down 87 percent.
As you know, the cost of eggs has come down like 93, 94 percent since we took office. And they're pretty much normally priced now.
DALE: The price of eggs isn't down even close to 93 percent or 94 percent, or even 87 percent. Since Trump returned to office in January.
Let's look at the prices consumers are actually paying. Now, we only have this data through March, but the March data was bad. It showed the national average price for a dozen eggs hit a record high about $6.23, and that was up 26 percent from January.
It is very possible that these retail egg prices have come down in April. We'll see when those numbers come out next month. But anybody who has shopped for groceries this month can tell you they're certainly not down 93 percent from Trump's inauguration day, because if they were down that much, eggs were currently be selling for less than $0.38 a dozen. They clearly are not.
Now, the White House has been pointing to wholesale egg prices. Those prices are way down since Trump's inauguration, about 52 percent. Thats big. But again, those aren't the prices actually paid by consumers. And of course, 52 percent isn't 87 or 93 percent.
Now, finally, the president has said repeatedly over the past two weeks that grocery prices in general have come down. He said, way down in a social media post on Thursday. That's wrong, too. Grocery prices are up under Trump. In March, average grocery prices jumped about 0.5 percent compared to February. That was the biggest month-to-month increase since the fall of 2022, and average march grocery prices were also up about 2.4 percent since the previous March. Thats the biggest year to year jump since the summer of 2023.
Now, we don't yet have the April grocery data yet, but in early April, of course, Trump imposed near-global 10 percent tariffs that are certain to further raise the price of a bunch of grocery items.
Daniel Dale, CNN, Washington.
(END VIDEOTAPE)
SOLOMON: Later this morning, well find out how much those stubbornly high prices are weighing on consumer sentiment. The University of Michigan will release its final April report in just a few hours, and preliminary results show that Americans are worried about a recession, with feelings about the economy down more than 30 percentage points since December. Expectations for inflation have also risen to the highest level since 1981, and for the fifth straight month, consumers say that they think unemployment will get worse. The University of Michigan says that sentiment is worsening across all age and income brackets, and regardless of political affiliation.
Joining me now live from London is David Tinsley, senior economist at the Bank of America Institute.
David, great to have you this morning, as we were just sort of touching on there, we've seen sentiment weaken, we've seen confidence weakened, but that hasn't really shown up in the hard data.
What do you see in the Bank of America data about how people are spending?
DAVID TINSLEY, SENIOR ECONOMIST, BANK OF AMERICA INSTITUTE: Yeah. So in the Bank of America data, the Bank of America Institute data, we look at the 69 million customers of the bank and look at their spending trends. What we saw is that March was good. I think everybody knows that March spending was pretty solid.
But even in the first three weeks of April, so through to April.
