Return to Transcripts main page

Early Start with Rahel Solomon

Trump Wraps Asia Tour After Trade Talks With China's Xi Jinping; Illinois Deputy Convicted Of Murdering Sonya Massey; Blue Jays Wallop Dodgers 6-1 In Game Five, Lead Series 3-2. Aired 5:30-6a ET

Aired October 30, 2025 - 05:30   ET

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

[05:30:00]

BRIAN ABEL, CNN ANCHOR: Josh, thanks for being with us.

First, what stands out to you as the most significant of these agreements announced?

JOSH LIPSKY, SENIOR DIRECTOR, ATLANTIC COUNCIL'S GEOECONOMICS CENTER: Well, thanks, Brian.

The first thing I would say is I wouldn't describe it as much of a trade deal as a temporary trade truce if they can keep it. This is very limited in scope.

If you go back a few months there was talks that the Trump-Xi meeting could lead to something that was akin to the first term trade deal covering the range of issues between the two economies. That's not what we have here. We've had a series of escalations over the past three months on both sides and now you have both sides stepping back from those escalations but still at a higher tariff and more protectionist situation than they were back in January when President Trump came into office.

The soybean purchases are significant and that was a real pressure point for the administration. They were hearing it from farmers across the country. Now we'll have to see how much soybeans are actually being purchased because we're already well into the year here where we've lost a year of purchases that would have happened otherwise.

And then on the reverse side, the U.S. being willing to drop this entity rule -- this Commerce Department entity rule which triggered so much anger on the Chinese side. That's something the Chinese wanted.

So there's concessions all around but it's just important to point out we're still in a truce situation and not a deal because so many issues weren't covered in this negotiation.

ABEL: Yeah. The fine print will be a pretty big deal here.

What about rare earth minerals because we've heard a lot of conversation about this? President Trump seems to want to make a deal with just about every country on rare earth minerals, at least in the last -- you know, since the start of his second term. So how significant is that deal?

LIPSKY: It's incredibly significant, and what's important to understand is both sides put out their most significant economic weapons. So we used tariffs and China responded with rare earths. That's not something that happened in the first trade wars in the first Trump term.

And this really created pressure back in the United States. In May and June you saw there were Ford Motor factories that couldn't operate at capacity because of the lack of rare earths. We didn't realize quite how acutely the dependency would materialize and China leveraged that.

So now both sides are putting these weapons on hold. China is saying for a year we won't levy the rare earths but it's still in the background. Meanwhile, we're going to reduce some of the tariff rates -- not all -- but we know those can scale back up quickly.

And so that's why I call it a temporary trade truce. This is fragile. If anything goes wrong -- if there's a misinterpretation in the coming months we go right back to where we were both on the rare earth restrictions and the higher tariff rates.

ABEL: And in a trade truce it implies there was a trade war, at least a de facto one, between these two countries.

How has that impacted both economies to this point, and how quickly could these agreements change them?

LIPSKY: Yeah, it was a trade war. When two sides have 145 and 125 percent, respectively, tariffs on each other that's a trade war by any definition, and it was felt all around. We were at a point going into the summer here in the U.S. where there could have been empty store shelves because of the high tariff rates. And similarly in China they were losing tens of thousands of jobs by the week in southern China in the manufacturing zone.

Now the effects are mitigated because the tariff rates are lower now and China is now going to have the same tariff rate as most of its Asian neighbors. So now, from a competitive perspective, China is right where it wants to be even though it has higher tariffs than it was before.

For a consumer in the United States it's going to mean some higher prices. Not the higher prices you would have seen in a 100 percent tariff rate but a little bit here and there -- a couple more dollars on each thing -- and you're already seeing that pass through. We had the Fed meeting yesterday. Chair Powell talked about the inflationary impact of tariffs.

So you feel the pain, but you feel it on more a rolling basis than a kind of acute shock we were looking at in the spring and summer.

ABEL: And Josh, another flashpoint between these two countries has been social media -- the TikTok app. China now saying the TikTok issue will be sorted out.

What's your read on what that means?

LIPSKY: Yeah. Well, we've been hearing the TikTok issue will be sorted out now since the beginning of the second Trump administration. The devil is in the details here. We have to understand from the Chinese side what they mean by that and what the U.S. is willing to agree to. We don't have any concrete information coming out of the summit so far and maybe we'll get it in the coming hours.

But it seems to me given they were meeting for a little less than two hours that TikTok wasn't actually a focus of these conversations, so I think that remains to be settled for another day.

ABEL: All right, and we will just see when that day arrives.

Josh Lipsky for us. Josh, thank you.

LIPSKY: Thanks.

ABEL: Still to come, how the markets are reacting to both the Trump-Xi summit and the U.S. Federal Reserve rate cuts.

(COMMERCIAL)

[05:39:23]

ABEL: Welcome back to EARLY START.

This is your business breakout checking some of today's business headlines, including the U.S. Federal Reserve has lowered interest rates for the second time this year as it tries to keep unemployment from surging.

The Fed voted for another quarter-point rate cut on Wednesday putting the lending rate between 3.75 and four percent, the lowest level in three years. It's the first time the Fed has set monetary policy without the benefit of an entire month of government employment data, which was unavailable because of the government shutdown.

[05:40:00]

YouTube will offer voluntary buyouts to its employees in the U.S. who wish to leave as part of a restructuring plan. It's also part of a broader reshuffle to focus the company on AI. While a plan doesn't involve mandatory staff cuts it comes amid wider layoffs in the tech industry, as well as concerns that AI will replace human jobs.

And NVIDIA says it's teaming up with Nokia and T-Mobile to build 6G cell towers. NVIDIA says the companies will build AI into cell towers to create faster and more powerful connections for smartphones and a range of AI devices. On Wednesday, NVIDIA became the first public company to reach a valuation of $5 trillion.

And for a closer look now at the global markets let's cross on over to CNN's Kristie Lu Stout live in Hong Kong. And Kristie, President Trump met with President Xi of China after the Fed cut rates. For global investors it is quite a day. How are the Asian markets responding? KRISTIE LU STOUT, CNN ANCHOR AND CORRESPONDENT: Yeah. Well, investors

here in Asia kind of looked past the U.S. Federal Reserve rate cut and also the caution that was expressed about more rate cuts to come and really zeroed in on that consequential meeting that took place earlier today in South Korea between U.S. President Donald Trump and Chinese leader Xi Jinping.

And U.S. President Trump had very positive assessments about the meeting. He said on a scale between zero and 10 he gives the meeting a 12. The Chinese much more measured in their reaction to the meeting, saying that "A consensus was reached on important trade and economic issues."

But if we look at how Asian investors responded -- let's bring up the market data for you -- it ended the day mixed. Investors in the markets here veering between negative and positive territory. The NIKKEI and KOSPI, some slight gains there but the Hang Seng closed lower. The Shanghai Composite, which reached record highs five days ago, also ended the day lower.

And if we show you what U.S. futures look like -- we've been monitoring that as well. We saw earlier green arrows. Now it's all red. So all signaling a lower open when Wall Street opens later this morning.

Look, investors had already priced in an expected thaw in the relationship as a result of this highly anticipated meeting between Donald Trump and Xi Jinping. After the meeting we heard from Donald Trump. He said that a deal has been made, that could be signed, that will be renegotiated a year from now. He also said that tariffs on Chinese goods would be lowered to 47 percent.

But analysts are saying it's not quite a deal; it is a truce. But to get to this handshake that we saw earlier today -- to get to this truce, a lot of work was happening behind the scenes. Top U.S. and Chinese trade negotiators untangling a host of contentious issues -- and if you need a reminder, we do have a list. Let's bring it up to you. And those issues include fentanyl. Including China's export curbs on rare earth minerals. Including China's purchase of U.S. soybeans, as well as a deal on TikTok.

And let's go through these issues one-by-one because after his talks with Xi, Trump says that he is reducing fentanyl-related tariffs to 10 percent. On the issue of rare earths China confirms it is suspending its latest rare earth export curbs. On soybeans, Trump says "large amounts" of U.S. soybeans will be purchased. And on TikTok China says this. It will "properly address issues over the app."

Look, Trump may be touting a deal here, but investors want more details.

I spoke to Fred Neumann of HSBC. He is the chief economist Asia based here in Hong Kong. And this is what he told me. Let's bring up his words. He said, "The one more concrete takeaway is the potential 10 percentage point cut in fentanyl related tariffs, which is a win for Xi. But investors are cautious because details are needed." And that's why we're seeing the caution in the markets right now. The devil is in the details. But Neumann adds this -- that overall, this last week was a good step. A good step for U.S. relations with China and U.S. relations with Asia.

Back to you, Brian.

ABEL: Kristie Lu Stout breaking down everything that we know so far in this agreement from Hong Kong. Kristie Lu, thank you.

STOUT: Thank you.

ABEL: Still ahead, the verdict in the case where a 911 call for help led to a woman's death. That story up next.

(COMMERCIAL)

[05:48:35]

ABEL: Welcome back. I'm Brian Abel. Here are some stories we are watching today.

Donald Trump is headed back to the U.S. after wrapping up a tour of Asia, and most recently a very important with Chinese leader Xi Jinping. The U.S. president says they reached a trade deal that could be signed soon. It's the first time the leaders have met face-to-face since President Trump's first term.

Hurricane Melissa making its way out of the Bahamas now and heading toward Bermuda, now at category 2 strength. It has already left a trail of destruction across the Caribbean, hammering Jamaica, Cuba, and other islands. Melissa is responsible for at least 30 deaths in the region.

A group of Republican and Democratic senators are working together on a possible path to end the weekslong government shutdown. Their push comes as the food assistance program known as SNAP is set to lapse on Saturday if no deal is reached. The group is also trying to resolve the impasse on health care subsidies.

The Trump administration has extended the deployment orders for the National Guard troops here in Washington, D.C. through at least February. That's according to people familiar with the orders. The deployment orders to the nation's capital had been expected to lapse at the end of November.

The mobilization has currently also been the subject of a legal battle. Washington, D.C.'s attorney general has requested that a judge order the removal of the troops.

[05:50:00]

The pay for Guard members has also been in jeopardy as part of this -- of this ongoing government shutdown.

And Trump said in August that the troops were mobilized to help fight crime but so far Guard members have largely been tasked with beautification efforts, they say, such as cleaning up parks and picking up trash. They've also been seen roaming around tourists in busy spots like metro stations.

A top U.S. border patrol official will be on the hotseat today over his agency's tactics in the Chicago area. Border patrol commander Gregory Bovino is expected to sit for a deposition that could last several hours. It is part of a lawsuit claiming federal agents have shot pepper balls and tear gas at demonstrators and placed unlawful restrictions on journalists. Bovino is the face of Operation Midway Blitz, the Trump administration's immigration enforcement effort in Chicago.

And staying in Illinois now, a jury has found an Illinois sheriff's deputy guilty of second-degree murder in the shooting of Sonya Massey, a Black woman who had called 911 to report a suspected prowler. Sonya Massey's mother speaking out after the verdict.

(BEGIN VIDEO CLIP)

DONNA RAYMOND, SONYA MASSEY'S MOTHER: Anybody who saw the video and thinks that it was partly Sonya's fault is inhumane. And for them to not get the life -- and Sonya got life and death. And he should be under the jail (PH). I can't wait till he goes to hell. I'm sorry.

(END VIDEO CLIP)

ABEL: CNN's Whitney Wild is following this story from Chicago.

(BEGIN VIDEOTAPE)

WHITNEY WILD, CNN LAW ENFORCEMENT CORRESPONDENT: Sean Grayson, the former Sangamon County deputy, was convicted of second-degree murder. This was not necessarily the outcome that the state's attorney's office was looking for. They had first charged him with first-degree murder. That would have carried a sentence of between 45 years to up to life behind bars. Instead, he now faces between four and 20 years in prison. He could serve substantially less than either one of those sentences if his behavior behind bars is good.

This case started July 6, 2024, when Grayson and another deputy responded to a 911 call about a potential prowler at Sonya Massey's home. The body-worn camera from that incident was critical and it showed the moments leading up to the shooting as well as what happened afterward.

That body-worn camera was played during the trial. It was played again during closing statements. And upon seeing that body-worn camera there was one juror -- one woman who actually began crying during the closing statements from the state's attorney's office as they were watching that body-worn camera.

That piece of evidence -- while we can never know exactly what it was that sealed this verdict for the jury, that piece of evidence was crucial to this case. Moving forward, the question is always in cases like this what is the

impact? How are officials going to make sure something like this never happens again? How will the person's death change things in the future?

Here in Illinois officials worked very quickly to pass a law in her honor. The Sonya Massey bill requires more stringent vetting of potential law enforcement officers. That's because through the course of this investigation it became clear that Sean Grayson had a checkered past.

For example, he was discharged from the Army with serious misconduct. He had been arrested for DUIs twice. He had also had problematic reviews and other challenges as he was in other law enforcement agencies prior to working in Sangamon County.

So the question had been if there had been more stringent vetting of his background would he have ever been hired? This bill seeks to try to answer that question. The intention of the Sonya Massey bill, again, is to make sure there is more stringent vetting of potential law enforcement officers. Illinois officials say it is the first-of- its-kind in the nation, and they hope it will be a framework for other states.

Whitney Wild, CNN, Chicago.

(END VIDEOTAPE)

ABEL: And no trick needed. Coming up this Halloween, Mega Millions has a monster of a treat available for players. That story and more still to come.

(COMMERCIAL)

[05:58:28]

ABEL: Someone could win a frightening amount of money this Halloween. The Mega Millions jackpot now worth $754 million, and the next drawing is this Friday. So to win, you must choose all six numbers drawn. Mega Millions has held six drawings on Halloween previously and no one has ever won on the spooky night. If you end up becoming the first, you could also choose that one-time payout of just under $353 million.

It is pumpkin season, but you won't find many quite like this one. Joe Adkins, known as "Pumpkin Joe" -- he grew and carved this 2,000 pound pumpkin in Illinois. His secret, he carves the surface of his giant pumpkins instead of hollowing them out, so his creations actually last longer. Now he's won multiple state prizes for his gargantuan gourds, and he uses his winnings to buy pumpkin seeds and candy bars for all of the trick-or-treaters on Halloween. Pretty cool.

Finally, the Blue Jays have seized a one-game lead in the best of seven World Series. Toronto trouncing L.A. 6-1 at Dodger Stadium. The Blue Jays' bats -- they were a buzzing with back-to-back solo homers in the first inning. That left L.A. fans, as you can imagine, stunned. And rookie pitcher Trey Yesavage making a real name for himself

despite being in the majors for barely a month. Can you believe that? From that to the World Series. He held the Dodgers to just one run and wrapped up a dozen strikeouts, including five in a row.

[06:00:05]

The series now heads back to Toronto for game six on Friday and the Blue Jays are just one win away from their first title in 32 years. Welcome to the majors, kid.

Thank you for joining us here on EARLY START. I'm Brian Abel in Washington, D.C. "CNN THIS MORNING WITH AUDIE CORNISH" starts right now.