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Early Start with Rahel Solomon

U.S. President Expresses Frustration With China's Xi; New 50 Percent Tariffs On Steel & Aluminum Imports Take Effect; Dozens Killed, Wounded Near Gaza Aid Site Over Three Days; Tehran Says It Will Not Bow To U.S. Pressure. Aired 5-5:30a ET

Aired June 04, 2025 - 05:00   ET

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

[05:00:26]

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 Wednesday, June 4th, 5:00 a.m. here in New York.

And straight ahead on EARLY START.

(BEGIN VIDEO CLIP)

REP. HAKEEM JEFFRIES (D-NY): Elon Musk and I agree with each other. The GOP tax scam is a disgusting abomination.

SEN. JOHN THUNE (R-SD): We obviously respect everything that Elon did with DOGE on this particular issue. We have a difference of opinion.

KAROLINE LEAVITT, WHITE HOUSE PRESS SECRETARY: This is One Big, Beautiful Bill, and he's sticking to it.

UNIDENTIFIED FEMALE: He actually tried to get a gun. Hed taken a concealed carry class. He learned to shoot. And then when he went to purchase this gun, he was denied because he is not a U.S. citizen.

UNIDENTIFIED FEMALE: The Department of Homeland Security and ICE are taking the family of suspected Boulder, Colorado terrorists into ICE custody.

UNIDENTIFIED MALE: Travis, if you're listening, this is your opportunity to turn yourself in. We're not going to go away. We're not going to rest, and we're going to make sure we find you.

(END VIDEO CLIP)

SOLOMON: As the trade war between the U.S. and China flares up again, President Donald Trump is expressing his frustration with his Chinese counterpart on social media, writing on Truth Social: I, like President Xi of China. Always have and always will. But he is very tough and extremely hard to make a deal with.

That remark came while most Americans were sleeping. White House officials have insisted in recent days that a call between the two presidents is imminent, but that conversation has yet to materialize. U.S. and Chinese negotiators agreed last month to a 90 day pause in tariff escalation. But since then, the two sides have taken some serious swipes at one another.

Meanwhile, new U.S. tariffs on steel and aluminum imports kicked in about five hours ago. As promised last week, President Trump pushed tariffs up to a punishing 50 percent, double what they were. Critics warn that the import taxes could lead to higher prices on everything from cars and appliances to electrical equipment and even groceries. But the struggling U.S. steel industry is applauding the latest broadside, and President Trump insists that the tariffs will boost manufacturing jobs.

Meanwhile, the White House has issued what it calls a friendly reminder to all countries that trade with the U.S. that their best trade proposals are due by the end of today.

CNN's Amy Kiley has the details on the deadline.

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LEAVITT: The president expects good deals, and we are on track for that.

AMY KILEY, CNN CORRESPONDENT (voice-over): The White House says it wants countries to submit their best offers for trade deals by today. That says the 90-day pause on so-called reciprocal tariffs is set to end July 9th. Some experts question whether the Trump administration can secure numerous trade agreements before then.

TORSTEN SLOK, FORMER CHIEF ECONOMIST & MANAGING DIRECTOR, DEUTSCHE BANK: Well, the challenge here is, of course, that it is not easy to just quickly make a trade deal. Trade deals are not only about the tariffs on goods, it's also about non-tariff barriers. It's also services. It's also all kinds of other things.

KILEY: Also today, President Donald Trump is doubling tariffs on steel and aluminum imports. That brings those duties to 50 percent. Trump says encouraging domestic production of those metals is a matter of national security. A trade group called the can manufacturers institute warns raising the tariff on steel could raise prices at grocery stores.

Another new trade warning is from the organization for economic cooperation and development. Its new outlook predicts a 1.2 percentage point slowdown in U.S. GDP growth this year, compared to last year. Plus, another dip down the road. It also forecasts a 0.4 percentage point hit globally for 2025.

ALVARO SANTOS PEREIRA, CHIEF ECONOMIST, OECD: It's quite important that countries get together, see what are their grievances against each other, and get an agreement to lower trade barriers.

KILEY: I'm Amy Kiley reporting.

(END VIDEOTAPE) SOLOMON: All right. Let's get an early look at how markets are reacting to the ramped up tariffs, and looking at pre-market here in the U.S. you can see the Dow, S&P and Nasdaq all I'd say fractionally higher just barely in the green. The S&P, the best among them right now up about one-tenth of a percent.

And out of the Asia Pacific where the major averages closed in positive territory, the Kospi meantime enjoying large gains after South Korea elected a new president. But taking a look at the other averages, Nikkei, Hang Seng and Shanghai also closing higher between about 4/10 of a percent to 8/10 of a percent for the Nikkei.

But back to South Korea, 60-year-old Lee Jae-myung took the oath of office just a few hours ago. The leader of the Liberal Democratic Party is pledging to revive South Korea's struggling economy.

[05:05:02]

He also hopes to help the country recover from months of political turmoil.

That is after his predecessor, Yoon Suk Yeol, briefly declared martial law last December. Yoon has since been impeached and faces insurrection charges, which he continues to deny.

The White House is now signaling that President Trump will be making the final decision on whether to slap additional sanctions on Russia. Trump met with the top-ranking Senate Republican on Monday at the about the Senate's bipartisan Russia sanctions resolution.

But as the Senate majority leader put it, Trump isn't quite there yet. The White House press secretary made clear Tuesday that the decision to sanction Russia further ultimately lies with the president.

(BEGIN VIDEO CLIP)

LEAVITT: He's willing to use sanctions if he needs them in the Senate, in the Capitol Hill. Understand that the president is the commander-in-chief and he's leading United States foreign policy, as he should.

(END VIDEO CLIP)

SOLOMON: Following the disappointing peace talks in Istanbul, the Ukrainian president is calling on his American counterpart to support tougher sanctions against Russia.

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VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): Russia remains fully committed to war, and they prove this commitment of theirs with both their strikes and their statements. All of this is the argument for new sanctions against Russia, tough sanctions.

(END VIDEO CLIP) SOLOMON: On Tuesday, a Ukrainian delegation arrived in Washington to discuss military aid and sanctions against Russia, with Trump's envoy for Ukraine. Zelenskyy said that the delegation is offering the U.S., quote, very concrete and mutually beneficial agreements.

And on Tuesday, Ukraine carried out yet another daring attack just days after striking military targets deep inside Russia. This time, Ukraine's security service says that it hit the Kerch Bridge, a key supply line for Moscow's troops connecting Russia to the occupied Crimean Peninsula. More than 1,000 kilograms of explosives were used to, quote, severely damage the underwater pillars supporting the bridge. Tuesday's attack marks the third time that Ukraine has targeted the bridge since the war began in 2002 -- 2022, excuse me.

And aid centers in Gaza are closed today. Coming up, we'll update you on the situation there. After three days of deadly incidents near distribution sites.

A little later, Elon Musk revealing his true feelings about President Trump's big, beautiful bill.

Plus, a manhunt is underway in Washington state for a father of three young girls accused of their kidnaping and murder. Authorities are warning residents to be on the lookout and alert for a man that they say could be dangerous. Those stories and more after a quick break.

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[05:12:01]

SOLOMON: Welcome back.

Israel's military is warning residents of Gaza against heading to aid centers today, calling them, quote, combat zones. The warning follows three days of deadly incidents near aid distribution centers. Dozens of Palestinians were killed and injured while trying to collect aid, and there are still conflicting reports about what exactly happened.

The Gaza Humanitarian Foundation says that it is closing its aid sites today for logistical preparations.

Let's get more now from CNN's Paula Hancocks. She joins us live this morning from Abu Dhabi. She's been following this story all week for us.

Paula, what more do we know about this?

PAULA HANCOCKS, CNN CORRESPONDENT: Well, Rahel, what it means is that there will be no aid coming from any of the four sites of GHF for Wednesday. Now, we know that there have been tens of thousands, if not hundreds of thousands of Palestinians traveling to different areas to try and get some of this aid. And this is really the main crux of the problem that the United Nations and other NGOs had warned about before this system went ahead.

The fact that there are only four sites, and the fact that that people have to travel such distances in an active war zone was going to inevitably put Palestinians at risk. And we've seen that that is exactly what happened. More than 60 Palestinians have been killed since Sunday, as they were on their way to one of these distribution sites, and hundreds more have been injured. Hospitals nearby have been inundated with patients.

Now, we've heard from. GHF itself saying that today the sites would be closed, that they are going to work on logistical preparations to deal with the sheer number of people. And we've heard from the Israeli military as well, saying that they're going to make preparations on the access routes to the center.

Now, there is one area this al-Alam roundabout just west of Rafah, and this is where many of these incidents have taken place. It's about a kilometer away from the distribution site itself, but it is where we have seen the majority of the loss of life, of desperate Palestinians trying to get close, to get aid.

Now we also know that later today, we are expecting the U.N. Security Council to vote on a resolution. This is a resolution that's been brought by a Slovenian diplomat, and they are calling for a ceasefire in Gaza.

Now, this has happened before. The last time it happened was back in November and the U.S. vetoed the resolution at that point and could well do exactly the same today. But what we do know of the draft text that CNN has seen, that it, quote, demands an immediate, unconditional and permanent ceasefire in Gaza, respected by all parties.

It also calls for the immediate and unconditional lifting of restrictions to get as much humanitarian aid into Gaza as possible, as conditions are famine-like in many areas, following that 11-week blockade of all aid by Israel.

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And then there is also the unconditional and immediate call for the release of all hostages. So, this is a resolution that will come to the United Nations Security Council later this Wednesday. But it does -- it does depend on all five permanent members not vetoing. And as we have seen a number of times in the past, the United States does veto these resolutions -- Rahel.

SOLOMON: Okay. Well, Paula, keep us posted on how that shapes up this time.

Back to the ground there. I mean, what's been done in terms of communicating this pause, is it clear that people in Gaza know that this pause exists, or do you think people will still show up to these aid distribution sites despite this closure?

HANCOCKS: Well, it's a good question, Rahel, because it really goes to the crux of the problem, or at least one of the problems, the fact that communicating with a country that is at war is very problematic. We know that GHF has a Facebook page that it posts these -- these notices on there that that relies on people having internet access and having a charged phone or laptop, of course.

And then you have the Israeli military that sometimes drops fliers saying that these are areas you have to evacuate from, or these are areas that are military no go zones at this point. And bear in mind, this is a desperately hungry population. There have been repeated warnings from the United Nations, from the NGOs, the humanitarian aid groups on the ground that this is a population pushing ever closer towards famine.

So, it is possible that we will see people coming closer to the distribution centers today to try and see if there is any chance of getting aid. There has been some trickle getting through to the other groups, the, the un, for example, UNICEF says that since May 19th, they've had about two dozen trucks that have been collected from the Kerem Shalom crossing inside Gaza with therapeutic food, with vaccines, ability to disinfect water.

But that is a fraction of what they actually need. So this is what the humanitarian aid groups, the U.N. is calling for at this point. Open the crossings into Gaza, allow a huge amount of humanitarian aid to get in, but certainly from the U.S. and the Israeli point of view, the focus is very much on this, this controversial aid distribution sites -- Rahel.

SOLOMON: Paula Hancocks reporting for us this morning in Abu Dhabi -- Paula, thank you.

Still ahead for us, the U.S. says that it is putting on a maximum pressure campaign in nuclear talks with Iran. But Iran accuses the U.S. of constantly moving the goal post. We'll hear what Iranian leaders have to say, coming up next.

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[05:22:43]

SOLOMON: Welcome back.

Iranian leaders say that their country will not yield to the Trump administration's demands that it dismantles its nuclear program. In a speech hours ago, the country's supreme leader said that the U.S. proposal undermines Iran's sovereignty, and the Iranian president says that he will, quote, not compromise on our scientific expert and nuclear rights in any way. The U.S. is pushing for a new nuclear deal with Iran, a deal which Tehran is now calling incoherent and disjointed.

Still, a U.S. State Department spokesperson says that the White House is not backing down on its demands.

(BEGIN VIDEO CLIP)

TAMMY BRUCE, U.S. STATE DEPARTMENT SPOKESMAN: The fact is, President Trump tweeted that there is going to be no uranium enrichment. The maximum pressure campaign on Iran remains in full force.

(END VIDEO CLIP)

SOLOMON: Okay, let's get to CNN's Fred Pleitgen, who joins us live this morning from Berlin.

Fred, great to see you.

After weeks of nuclear talks between the U.S. and Iran, there is still no definitive agreement. What seems to be the missing ingredient here to seal any sort of deal?

FREDERIK PLEITGEN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, uranium seems to be the missing ingredient. And what exactly to do with it? One of the things that we heard today, and it was really interesting to hear that speech from Ayatollah Ali Khamenei, who's, of course, the supreme leader of Iran and the final authority on anything that happens in Iran, including whether or not there's going to be some sort of nuclear agreement with the United States, where he called the leadership of the United States both rude and arrogant.

And I think one of the things that we sort of focused on, on that speech is that he said that enrichment of uranium, enrichment done by Iran, that that is key to Iran's nuclear program. That is something that Iran has sacrificed a lot for, and certainly something that the Iranians are not going to back down from.

He said that he believes that that is the reason why, as he put it, the enemies of Iran, of course, meaning the United States were trying to get Iran to stop that enrichment. But he also said that the U.S. can't do anything about it, meaning enrichment, that the Iranians were going to continue enrichment. That, of course, on the face of it, seems to be pretty clear words towards the Trump administration, towards the United States, that the Iranians are not going to go for any agreement that would not allow Iran to have its own domestically produced centrifuges.

And also, the enrichment that is done with those. That's, of course, a technology that the Iranians have been developing for a very long period of time. And also one that the United States fears could give Iran a path to a nuclear weapon, even though the Iranians have consistently said that they are not seeking a nuclear weapon.

[05:25:09]

And so we had President Trump a couple of days ago tweeting that under any sort of agreement, there would not be any enrichment done by the Iranians. What we've learned is that in that proposal that was put forward by the Trump administration, that they seem to be seeking some sort of consortium where the U.S. might actually invest in Iran's nuclear -- civilian nuclear sector and other countries would be involved as well, Middle Eastern countries and also the International Atomic Energy Agency.

But what we've been hearing consistently from the Iranians is that they say that enrichment needs to stay in Iran. It needs to be in Iran, in Iran, it needs to be Iranian. And it's not something that they are going to be willing to back down from. That certainly seems to be maybe not the missing ingredient, but definitely the ingredient that the two sides seem to have a lot of trouble coming to terms with.

SOLOMON: Yeah. And clearly its a very important issue for both sides. So, it's hard to sort of see where things go from here to that point.

Fred, last week, Trump said that they were close to a solution. Our reporting suggests that, according to sources familiar with the talks, that momentum appears to be fading.

So, are the next round of talks set? I mean, what happens now?

PLEITGEN: Yeah. I don't think that the next round of talks are set. I think that both sides believe that the talks will continue in some way, shape or form, even though its not clear when those talks are going to happen and how those talks are going to happen.

First of all, you're absolutely right that that issue of uranium enrichment is definitely the key one and the most difficult one. And we have heard from some folks in Iran, Iranian officials who have said that they're highly disappointed in the proposal that was put forward by the United States, and specifically when it pertains to enrichment.

And, of course, the U.S. has said that for their part, at least, the Trump administration has said that they believe that there should be no enrichment. However, what we've heard from Iran's foreign minister, who's been on a trip in the Middle East, is that the Iranians are going to respond to the U.S. proposal within the next couple of days, and that then they were going to see how things move forward from there.

So, certainly, it does not appear as though the nuclear talks that are going on, the negotiations process is anywhere near dead, or that the two sides are going to say that they're going to discontinue that process. It just seems as though that that issue of uranium enrichment, Iranian uranium enrichment, is definitely one where the two sides are having a lot of problems finding to one another and finding especially wording where both sides can say, look, we got what we wanted out of this, and we can move forward towards a deal, Rahel.

SOLOMON: Okay, a lot to watch here. Fred Pleitgen live for us here in Berlin -- Fred, thank you.

Still ahead for us, a jump in job openings for April takes economists by surprise. But not all the news is good for the U.S. labor market. We'll explain.

Plus, the family of the man charged in a violent attack in Colorado over the weekend gets taken into ICE custody. Those details straight ahead.

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