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Quest Means Business
Markets Surge After U.S., China Agree To Lower Tariffs; Zelenskyy: Ukraine Would Appreciate Trump At Talks With Russia; Sean "Diddy" Combs Trial Underway In New York; Hamas Releases Last Known Living American Hostage; Donald Trump Defends Qatar's Offer Of A Luxury Jumbo Jet. Aired 4- 4:45p ET
Aired May 12, 2025 - 16:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
[16:00:12]
PAULA NEWTON, CNN INTERNATIONAL HOST: You see it there, relief rally, pretty much the market started out as record highs and continues across all
three indices. Those are the markets and these are the main events.
A dramatic de-escalation. The U.S. and China both agreed to substantially lower tariffs.
The last known living American hostage in Gaza is released.
And testimony begins in the trial of Sean "Diddy" Combs.
Live from New York. It is Monday, May 12th. I am Paula Newton. Richard Quest will be here in a moment and this is QUEST MEANS BUSINESS.
And good evening to you on what is an extraordinary day for Wall Street. Is it the same for Main Street?
Successful trade talks between the U.S. and China unleashed a surge of optimism on wall street. The major Indices closed sharply higher. They
stayed at the tippy top, stayed there all day after the two sides agreed to temporarily, temporarily lower tariffs.
Treasury Secretary Scott Bessent described the talks with China as tough, but respectful. President Trump says he expects further discussions.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES OF AMERICA: The talks in Geneva were very friendly. The relationship is very good. We are not
looking to hurt China. China is being hurt very badly. They were closing up factories. They were having a lot of unrest, and they were very happy to be
able to do something with us, and the relationship is very, very good.
I will speak to President Xi maybe at the end of the week.
(END VIDEO CLIP)
NEWTON: To be clear, we did not hear a widespread unrest in China.
Now, today's d,tente nonetheless will help ease tensions that brought trade between the two countries to a near standstill. U.S. tariffs on China will
fall from 145 percent to 30 percent. Donald Trump's 20 percent fentanyl related tariffs and 10 percent baseline tariffs, that, of course, will
remain in place. Meantime, China will cut tariffs to 10 percent.
Beijing also agreed to suspend and cancel other non-tariff retaliation it had imposed since April 2nd.
Richard Quest thankfully joins me now.
Okay, Richard, we've had a full day to digest this. Give it to us -- the good, the bad, the ugly of this deal.
RICHARD QUEST, CNN INTERNATIONAL HOST: Well, the good, the very good, if you will, is that we are returning to something like the status quo ante.
This is clearly, obviously tremendously beneficial. As Scott Bessent said, both sides decided that decoupling their economies was not in either
interest. I guess we could have told him that before they started down this road. But anyway, there is never a wrong time to do the right thing, and so
now they have clearly rowed back. That's the good.
The middle bit, if you will, is the fact that they are going to have more talks. They are going to do more to see what they can do. The bad part is
actually nothing has really changed. We are just going back to where we were before. Don't for a second think there has been any real progress in
terms of the non-trade barriers, the non-tariff barriers, Paula.
And so this is, you know, the old joke about the celebrating the arsonist who calls the fire brigade. All they've done is row back from a very
dangerous position. That is welcome. Now let us see if they can actually get some sort of real deal.
But even so, 30 percent tariff is still very damaging to the U.S. economy.
NEWTON: Yes, and I think some people have suggested, look, when you're starting point was 145, the market had to cheer and of course executives
will be cheering as well. But I wonder your thoughts because, you know, I always say that trade deals need to be detailed and durable. We have
neither right now.
QUEST: Oh, and the good example of that is the somewhat trade deal that the U.S. has done with the U.K.
Now, besides the periphery, a bit of beef, a bit of this, a bit of that, some more cars, reduced tariffs. Yes they are, if you will, the periphery,
the bit that you can hang your hat on. But the real bit about the future, it is all about what we might do in the future, the negotiation, the
goodwill, the bona fide et cetera et cetera. And that's why they call it an economic prosperity deal and not a real trade agreement.
My gut feeling is, Paula, that all these deals that they're going to do are going to be much of a muchness like this. There will be a couple of little
bells and trinkets that you can put on the tree that you can say, oh, look, that was a success, but have you actually addressed the non-tariff
barriers? And that is where you're going to see the market come into this, because at the first blush, of course, the market rallied nearly three
percent.
[16:05:12]
Obviously, it is phenomenal that the worst has been staved off. But longer term, have you actually improved the terms of trade? We are a long way from
that.
I know nobody wants to, you know, look, on a day like today, everybody wants to be hooray, blah, blah. But I am afraid it is not quite like that.
NEWTON: No. And look, as investors, you'll take it. But, Richard, you know the work that you've done in the last few months with executives and small
business people, those who run medium-sized businesses, it is statistically significant.
Youve spoken to so many. How do you think they will take this?
QUEST: With relief. The decoupling of the U.S.-China economic relationship was total, trade had ground to a halt. And now everybody is going to be
saying, can I live with 30 percent? Gosh, if I've been saying 30 percent two months ago, you'd have thought the world was about to end. Now
everybody is saying, well, I probably can live with 30 percent tariff. Why? Because my exporter will eat a bit of it, my importer will eat a bit of it,
and only a partial bit will be --
By the way, it is still inflationary, which is interesting for the Fed, will be passed on to the ultimate consumer. I think that Donald Trump wants
desperately to end up with a regime where tariffs remain. At what level we can argue about, but like with the general 10 percent tariff worldwide, he
loves tariffs. He has analogized them to family, love and friendship. Therefore, they are going to stay.
It is just a question as the old joke goes, at what price?
NEWTON: And the price is important, indeed, as Donald Trump continues to say he wants to generate that revenue as well from those tariffs, which, as
you said, Richard means at some level they will stay on.
Richard Quest, grateful. I am here for you this week. Feel free to, you know, pile in anytime you feel the need this week.
QUEST: Thank you.
NEWTON: Thanks so much. Appreciate it.
Well, Donald Trump says he may travel to Istanbul on Thursday for potential talks between Ukrainian President Volodymyr Zelenskyy and Russian President
Vladimir Putin.
President Zelenskyy said this weekend that he was open to meeting with his Russian counterpart. That's after Mr. Putin offered to hold talks in Turkey
this week.
Nick Paton Walsh is in Kyiv and obviously the question I have to ask you is where are we with this, Nick? I mean, President Zelenskyy again pointed out
just in the last few hours that there is no word from the Kremlin and no end to this fighting.
NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT: Yes. I mean, it is important that as I speak, I am not suddenly remarkably out of
date. It has been an extraordinary 48 hours here.
Cast our minds back to Saturday, where four major European powers stood alongside Ukraine's President Volodymyr Zelenskyy and demanded an
unconditional 30-day ceasefire that should have started at the previous midnight. We are now essentially an hour away from the most broad potential
window the Europeans could have asked the ceasefire to start in between, and the narrative has massively shifted, essentially thanks to the White
House to now towards Thursday and a meeting that seems to increasingly about the idea of putting Volodymyr Zelenskyy of Ukraine, Vladimir Putin of
Russia, and possibly even Donald Trump of the United States in exactly the same city, Istanbul.
That is a far-fetched idea, frankly, the men have an extraordinarily messy history. Zelenskyy, Putin clearly dislike each other from an excessive
distance. Zelenskyy and Trump have had a very public falling out recently, and a reconciliation. And Trump and Putin's relationship is phenomenally
complex and probably only understood probably decades from now. So the idea of that meeting going well, if indeed it happens, is complex.
We know now that the Russian Foreign Minister Lavrov and the Turkish Foreign Minister Fidan, have been talking, potentially setting this entire
thing up, but let's be careful. This is not some victory for diplomacy here. The Europeans and the Ukrainians set a deadline of the previous
midnight, or maybe this midnight, depending how you're counting it, for the ceasefire to come into effect.
Russia has basically brushed that aside, ignored it, proposed a meeting in Turkey on Thursday for any level of officials. Frankly, they weren't clear
who was supposed to be there. Zelenskyy tried to outstep them by saying, I will be there myself.
Trump seized upon that and seems of the various statements to have focused upon Zelenskyy having to attend, and now seems to think that both leaders,
Putin and Zelenskyy, will be there, according to his last comments. When asked if he puts sanctions in, like the European powers who originally came
up with the ceasefire proposal on Saturday demanded and suggested the U.S. would back, he sort of dodged the question and said he thinks everyone will
get on board with the idea of a ceasefire and a peace deal.
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A huge amount is resting on what could potentially happen in Turkey on Thursday. Most importantly, is Trump going to attend? Does he see any
political capital from that? He said he has so many meetings going on. Zelenskyy is trying to seize the initiative back by saying I will be there
waiting. We've heard nothing from Putin and ultimately I think many are looking at this as Putin being able to dictate terms.
It was the European terms on Saturday. It became Russian terms late Sunday, and now we are still essentially waiting to see if Putin will attend --
Paula.
NEWTON: Yes, again, the ball back in the Kremlin's court and we will wait to hear. Grateful for your reporting. Nick Paton Walsh for us in Kyiv.
Now we do return to our top story. The U.S.-China trade deal. Stock markets. Yes, they might be celebrating the news, but the uncertainty, as
we've been saying, remains high for so many businesses.
The chairman of bicycle company, Kent International recently spoke to Richard Quest. He told Richard they have already moved half of their supply
chain out of China, and the switching back and forth is not easy. Listen.
(BEGIN VIDEO CLIP)
ARNOLD KAMLER, CEO, KENT INTERNATIONAL: So we are hoping that they'll come to some kind of a compromise.
Look, we are trying to get out of China as soon as we can, but you can't just snap a finger and it is just -- it is not fair to business, our
business and many businesses to have to get out in two weeks, three weeks, four weeks. It is just not enough. It is just not enough time.
(END VIDEO CLIP)
NEWTON: And Kent International Chairman, Arnold Kamler joins me now. Thanks so much for being with us. We've had such great insight from you, really
just seeing it from the inside in terms of how you navigate all this tariff turmoil. What was your reaction when you heard this morning?
KAMLER: Well, it was really great news and we are very pleased, actually a little bit shocked that we'd heard 80 percent or something like that, and
what people don't know is that bicycles were kind of randomly selected, and so we've been paying an additional 25 percent to every other tariff that
you keep here in the numbers, whether it was 125 or 145 or now 30 percent, we still pay 25 percent on top of that plus import duty.
But this was really great news for us, and are really very pleased and a little bit shocked that President Trump agreed to let his negotiators come
to that kind of a number.
NEWTON: So what does it mean, though, in terms of the issue of what tariffs still remain? What does it mean for your business? We all know this is
extremely complex. Can you walk me through kind of what you've been dealing with in the inside, 30 percent tariffs plus what you're talking about is
sector tariffs on top of the 30 percent for you. That's still in place, right?
KAMLER: Yes, it is still a lot of money compared to what it was before. So now, we are paying -- we normally would pay I mean pre tariffs in 2018-
2019. We are paying 11.5 percent that we are still paying. But now, I mean we were paying -- we had unfortunately about 25 containers that were
shipped on feeder vessels that should have not been subject to this high tariff. But unfortunately, we have 25 containers that we are paying 181.47
percent on.
NEWTON: Wow.
KAMLER: And we tried to stop it, but we have no choice but to now pay that. So anyway, that's difficult.
But anyway, look, our business is large. We will be able to withstand that painfully and we are hoping that this is a sign of something very good to
come. I mean, look, with all the tough rhetoric coming from both sides, we are kind of interdependent on each other.
The U.S. needs the farm business for China -- from China a lot and we need we need the stuff from China that no one really wants to make in the United
States. Nobody wants to make five and ten and fifteen dollar widgets for health, and there's like so many items.
See, the other thing, Paula, that people forget is it is not the Chinese government that's creating all this business in China. The Chinese people
are very clever. It is really a pleasure to work with them, and kind of impressive when you come up with a new idea, brand new idea, and watch how
fast they can work in development for you, instead of waiting three months or six months or nine months for a feasibility study.
Very often within a couple of days, they have prototypes to show you.
NEWTON: I mean, we hear you, but you know, what you're saying is not what President Trump wants to hear, right? He wants this onshoring. Now, you've
already said that you've changed some of your supply chains, right? Tried to divert away from China.
Will you continue to do that or will you just eat these tariffs assuming that they've now hit a bit of a floor?
KAMLER: No, we -- no, Paula, look, it is our goal and we think we will be out of China on bicycles completely by the end of this year. Should it
reverse and should there be something different, we can change? But we really don't see that happening at all.
[15:15:03]
And so we are, we are committed to leaving China, dealing with certain two or three countries mostly in Asia and although we are talking to some
people in Europe -- but the handwriting is on the wall.
So this is kind of confusing signals, but we are happy because this will help get us through the Christmas season and we are hoping that this 90-day
thing gets extended another 60 to 90 days. That would really allow us to do it, because right now with our other sources, we don't even have enough
product and we really can't pay this you know, 60 percent additional on everything, long term, but short term, at least it is a really good Band-
Aid for us.
NEWTON: I don't have a lot of time left, Arnold, but do you believe a lot of the price increases will have to be borne by the consumer at this point
in time? Prices will go up in the United States for your bicycles and more and more?
KAMLER: Yes, on certain products, no, for instance, but on bicycles, the profit margins are small. So, when we get a 20 percent or 30 percent
increase, we've got to raise our prices to our customers, and then our customers have to raise their prices. So this will definitely have an
impact on retail pricing.
NEWTON: Yes, and sobering news, even though at the last minute they did come up to this deal and it is in place for 90 days.
Arnold Kamler always grateful for the insight. Really appreciate it.
KAMLER: Thank you, Paula.
NEWTON: Now, the first witnesses have been called in the trial of Sean "Diddy" Combs. The music mogul is charged with racketeering, conspiracy,
sex trafficking and transporting prostitution. We will have the latest on that trial after the break.
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NEWTON: The first witnesses are taking the stand in the trial of Sean "Diddy" Combs. Combs is facing federal charges in New York for
racketeering, conspiracy, sex trafficking and transporting for prostitution. He has pleaded not guilty.
Now, the court heard earlier from an LAPD officer who responded to a 2016 distress call. The jury is now hearing from a second witness who alleges he
was paid to have sex with Combs watching.
Leigh Waldman is in New York for us and is covering this trial. Can you bring us right up-to-date? And we have to say some of the details of this,
some viewers may find disturbing.
LEIGH WALDMAN, CNN CORRESPONDENT: You're exactly right. There has been some extremely explicit details that have been shared inside of the court,
starting with those opening statements that we heard from both the prosecution and defense this morning.
[16:20:05]
The prosecution attorney, Emily Johnson, describing decades worth of alleged abuse, including savage beatings by Sean "Diddy" Combs to his ex-
girlfriend, Cassie Ventura, also describing what we are now referring to as freak offs. What he called freak offs were sexual encounters that Ventura
alleges lasted for days, where she was drugged and forced to have sex not only with Combs, but also with male escorts.
We also heard again from that security officer who worked at that hotel where that 2016 video showed Combs dragging and kicking Ventura. At the
time, he said that security officer, Officer Israel Flores said that he responded to that and that Combs had a "devilish stare" after this assault
took place.
He said he walked both of them to the room, and Ventura at that point said she would like to leave. Now, when that officer went back to the hotel room
to talk to Combs about the damages to the hotel, he says that Combs offered him a wad of cash in what he was interpreting as a bribe.
And you mentioned we also are hearing from a man who claims that he was paid to have sex with Cassie Ventura, all while Combs was watching, and
even directing.
They mentioned using baby oil, which we know from that federal indictment, the officers responding alleged to have taken 1,000 bottles of baby oil and
other lubricant from Combs' home. Those were used in those sexual encounters with this man who says that he was paid to have sex with Ventura
on multiple occasions, lasting multiple years.
Now, inside of the courtroom, Combs' children and his mother are all there, showing support from him. Our reporters inside said that when some of these
more explicit details were shared inside the of the courtroom, Combs' daughters actually stood up and left the courtroom not wanting to hear
these details. They came back in and had to leave again because of some of the explicit nature of the details being shared inside of this courtroom
about these freak offs that the prosecution say have lasted for decades.
Now, the defense says that there was nothing illegal about what was happening because all parties were consensual. They said even though Combs
has an interesting sex life, that is not something that is a crime. They also addressed the domestic violence shown in that video, saying that it
was mutual on both sides of this and Combs is not on trial for domestic violence, and that domestic violence does not equal sex trafficking --
Paula.
NEWTON: We have all been grateful for that update as this trial continues in New York. Appreciate it.
Now returning to our global news agenda, U.S. President Donald Trump said he threatened to stop trading with India and Pakistan if they didn't reach
a ceasefire. The nations reached an uneasy truce this weekend after their most intense fighting in years.
CNN's Nic Robertson sat down with Pakistan's Foreign Minister, who told him more about how they struck this deal.
(BEGIN VIDEOTAPE)
MUHAMMAD ISHAQ DAR, PAKISTANI FOREIGN MINISTER: After these -- after having seen our escalation, rather counter escalation and -- in defense, I think
then certain capitals in, particularly U.S. realized it could be a really filthy next moves.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: And what did they say to you then?
DAR: No they all -- I had a call after, you know, Secretary Rubio talked to Mr. Jaishankar. He talked to me. It was around 8:15 on 10th of --
ROBERTSON: Saturday.
DAR: Tenth of --
ROBERTSON: Right after the counter strike.
DAR: Yes, and our operation had ended almost. And he said India is ready to stop it now.
ROBERTSON: Secretary Rubio said to you that India is ready to stop.
DAR: Yes. Would you be willing? I said, of course. I said, we give you our word. And if India does not restart, we would not do it.
ROBERTSON: And what was -- what did J.D. Vance or Secretary Rubio, what did they say to their Indian counterparts that caused India to say that they
were now ready for mediation?
DAR: I have no idea. But I think they were saying practically that -- they had seen what happened in the sky and the Air Force to Air Force and they
were seeing that now, having sent drones and having fired missiles. Now, we are now first time reacting after almost three days. So they could see how
serious, you know, the damage was on their side.
I am sure they would have realized that, you know, they had miscalculated.
ROBERTSON: And the -- and during this process, the United States gave you assurances about the process. What assurances did they give you?
DAR: Assurance was very simple that if we agreed to stop, obviously, I was told that he will reconfirm to the Indian side.
ROBERTSON: Secretary Rubio.
DAR: Secretary Rubio would reconfirm and that's exactly what happened.
ROBERTSON: And President Trump has said that he is willing now to continue to engage in this situation. How important to you is that?
DAR: Well, I think it is very important, it is -- the root cause of this regional instability and danger of you know, such incidents is actually
Jammu and Kashmir.
[16:25:08]
It is not us. It is internationally recognized.
ROBERTSON: Bottom line to resolve Kashmir, your dispute with India, you need the support of the United States and other countries. You can't do it
alone.
DAR: No. Well, we have -- we are always there available for composite dialogue, but it takes two to tango. We can't do it solo.
ROBERTSON: Where and when can we expect these talks between you and India over the issue of Kashmir, over the issue of water, over the issue of
terrorism -- when is that going to happen?
DAR: Well, I think it is in the interest of everybody to delay or to leave such issues beyond certain reasonable time, create further complications.
Nobody would be interested in creating complications, at least Pakistan is not.
We have established our equality. We have established our deterrence balance.
ROBERTSON: And right now, you remain with an existential issue that India has abrogated the terms of the Indus Water Treaty from 1960, denying you
the water, they say, from these three major rivers.
DAR: The National Security Committee of Pakistan declared that if this treaty is tampered, if the water is diverted, if water is stopped, we will
treat it as an act of war.
ROBERTSON: So we have a ceasefire today. The water issue is outstanding. And if it isn't resolved, you're saying composite dialogue. You're saying
if it isn't resolved through composite dialogue, then this amounts to an act of war.
So you're saying ultimately if it is not resolved, you'll go back to war?
DAR: Well, you see in the nation movements, there are certain you know, times when you have to take some very serious decisions, as we did on ninth
night. Now, let us look forward positively. We want to take the whole process forward in an honorable way, with dignity for both sides and
resolve through a composite dialogue the issues which will give on a long term basis, this region, peace and security.
(END VIDEOTAPE)
NEWTON: Our thanks to Nic Robertson there.
Now, Donald Trump is defending Qatar's offer of a $400 million gift. We will tell you about the luxury jet and the legal concerns about accepting
it. That's when we come back.
(COMMERCIAL BREAK)
[16:30:26]
NEWTON: The last known living U.S. citizen held hostage in Gaza has now been released. 21-year-old Edan Alexander is now back in Israel after being
handed over to the Red Cross earlier today.
And look at this here. You can see him being reunited with his family, it's his mom. Alexander's release comes one day before President Trump begins
his tour of the Middle East. What a reunion that is.
Jeremy Diamond reports from hostage square in Tel Aviv.
JEREMY DIAMOND, CNN WHITE HOUSE CORRESPONDENT: Well, Edan Alexander has now been reunited with his family at the Re'im military base just outside of
the Gaza Strip, following more than 19 months of captivity, Alexander spoke on the phone with his mother while he was in those Red Cross vehicles on
the way to that base before they were actually able to embrace, we've actually just seen some of the footage of that moment. It was actually
Steve Witkoff, President Trump's Special Envoy, who gets the call with Edan on the other line, and he then passes the phone to Edan Alexander's mother,
who obviously erupts in joy and asks her son how she is doing. And she tells him, we are out. This is over. It is finally over.
Obviously, very emotional scenes are playing out. As we speak right now, as Edan Alexander, the Israeli soldier who is also an American citizen, is
enjoying his first moments of freedom alongside his family.
Earlier, we saw a photo that was released showing Edan Alexander standing on his own two feet alongside a Red Cross official and several masked Hamas
gunman at the moment of his release, and just the fact that he was able to stand on his own two feet, that he didn't have any kind of visible injuries
to his face or his upper body, was a good signal for his family.
Now, of course, the question is, what this means for the remaining 58 hostages still in Gaza, and indeed, President Trump and U.S. officials have
made clear that they expect that this good will gesture from Hamas to release, Edan Alexander right now, without getting anything in return, will
hopefully lead to negotiations, successful negotiations, they hope, to release the remaining hostages and ultimately, as President Trump said, end
this brutal war in Gaza.
NEWTON: Our thanks to Jeremy Diamond there.
Now, Hamas announced its intention to release Alexander on Sunday, saying it made the decision after several days of talks directly with the United
States. Hamas leader Mahmoud al-Mardawi says that the militant group negotiated directly with the U.S. President Trump's Middle East envoy,
Steve Witkoff. Meanwhile, he says the talks were indirect.
Firas Maksad is the Middle East and North Africa Managing Director at the Eurasia Group. We already have a lot of confusion on this, but I want to
talk to you about the implications of dealing directly with Hamas. I mean, Hamas claims this is a good will gesture, that you know, they didn't get
anything in return. What do you think is the truth?
FIRAS MAKSAD, MANAGING DIRECTOR, MIDDLE EAST AND NORTH AFRICA, EURASIA GROUP: Well, I mean, I think that's largely true, but that said, Hamas is
certainly hoping to win President Trump over at the expense of Israeli Prime Minister Bibi Netanyahu.
Everybody who's dealing with the Middle East senses that there is now a gap that has opened up between the Israeli prime minister and the American
president, whether it is on Iran and Trump's decision to negotiate directly with Iran, despite what Bibi thinks, whether it's on Yemen, where the
Israelis were completely caught flat footed and by surprise that a ceasefire was declared, or here, where now for a number of weeks, we've
known that there is a channel between the United States and Hamas that was put on hold for a while. I think President Trump wanted to give Prime
Minister Netanyahu some rope, some time to get things -- to get to a ceasefire in Gaza.
But since Netanyahu is not interested in a ceasefire for his own domestic political purposes, it seems now that the United States and Hamas have
decided to move forward.
NEWTON: How does this complicate the release of the other hostages? It is incredibly disquieting, as you know, for so many of the families to hear
that the U.S. was able to negotiate for the release of one of their own, and yet the rest of the hostages are still just languishing there.
MAKSAD: Absolutely, certainly piles the pressure domestically on the Israeli prime minister to get the Israeli hostages out.
Now, Israel has been very clear in underscoring that the only path forward for this is what is so called the Witkoff plan, the plan originally put
forward by the envoy of President Trump, in which, in fact, a number of Israeli hostages would be released in return for a ceasefire.
[16:35:02]
Hamas, on the other hand, very eager to get to a total end of conflict here, very much undermined by the -- by about a year and a half of war,
something that the Israeli prime minister is not just willing to put on offer just yet.
NEWTON: You know, we must mention now, though, the people of Gaza as well. The Israeli military has prevented food, medicine, other aid from entering
Gaza. Now it is more than two months, and on it goes. I want you to listen to President Trump here, insisting that he wants to try and help the people
of Gaza.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We're going to help the people of Gaza get some food. People are starving, and we're going to help
them get some food. A lot of people are making it very, very bad. What do you -- if you look, Hamas is making it impossible, because they're taking
everything that's brought in, but we're going to help the people of Gaza because they're being treated very badly by Hamas.
(END VIDEO CLIP)
NEWTON: Yes, that was a week ago. Do you believe that there's anything on the table here in the works that will help get some kind of a deal going so
that aid returns to Gaza at least, at least that?
MAKSAD: I really do think so, Paula. Listen, this is a president that is interested in positive headlines and deals. He's about to take a landmark
visit, the first foreign visit for his current term, to the Middle East, to these Arab countries, Saudi Arabia, Qatar, the UAE. Qatar being a key
negotiator here.
I think what we can expect is some forward movement on aid access to Palestinians who are on the verge of starvation. The president clearly very
sensitive to that.
I think what we'll be missing, though, is getting back to a total cease fire and an end of conflict. That's something that the president has wanted
from day one. It has alluded him. It is key in linchpin to getting to a normalization between Saudi Arabia on one hand and Israel on the other a
priority for this president, that I don't expect we will see any time soon, but humanitarian access and aid, that is in the offing.
NEWTON: You believe it's in the offing within days, weeks? I mean, look, if a larger deal is impossible, also complicated, of course, by domestic
Israeli politics, do you believe it is on his agenda? I mean, it's front of mind at this point?
MAKSAD: Very much so. And I think we all got to keep an eye on his third or second stop, I should say, of this regional tour where he will be in Qatar,
a key mediator. And in fact, I believe that the Israeli negotiators have already been dispatched to Qatar.
So, this announcement, the release of the American hostage, can create some momentum and can put some pressure on the Israeli prime minister to move
on, at least on terms of humanitarian access, if not a temporary ceasefire.
NEWTON: I don't have a lot of time left. But do you believe there was a lot of compromise here on the part of the Trump administration to go into the
Middle East in this sense, they don't have a deal even with Israel that they wanted months ago?
MAKSAD: You know what, Paula, I don't think that that's where President Trump's head is. I think he's very much focused on the commercial aspect of
going to the Middle East. I would dub this the trillion dollar tour. He has promises of all kinds of MOUs and duels from Saudi Arabia, Qatar, UAE, that
will be pivotal for the U.S. economy, but also in his interest, in the interest of those around him.
So, I think that's the primary reason. But he's also focused on getting some geopolitical wins there if you can, including on Gaza.
NEWTON: And we wait to hear about more news breaking. None more important at this hour than aid to Gazans and the release of more hostages. Firas
Maksad, thank you so much. Really grateful to you.
Now, as was just mentioning, President Trump is on his way to the Middle East, and you can see U.S. President Trump boarding Air Force One right
there. He'll visit Saudi Arabia, Qatar and the UAE too, as we were just discussing, right? Sign those lucrative business deals, Donald Trump is
defending Qatar's offer, meantime of a luxury jumbo jet to serve as Air Force One.
The White House says it's looking into the details of accepting the Boeing 747. The plane, it's worth $400 million which raises substantial legal and
ethical questions. Mr. Trump, though, says it would be stupid to refuse it.
(BEGIN VIDEO CLIP)
TRUMP: They said we would like to do something, and if we can get a 747 as a contribution to our Defense Department to use during a couple of years
while they're building the other ones. I think that was a very nice gesture.
Now, I could be a stupid person and say, oh, no, we don't want a free plane. We give free things out. We'll take one too.
(END VIDEO CLIP)
NEWTON: We'll take one too. Tom Foreman is in Washington, D.C. for us. OK, you just heard him, right, Tom? For the president, this is simple, and
maybe a lot of Americans would see it that way too. It's a free plane, take it.
Certainly, though, critics point out not just that it's unethical, maybe pay to play, clearly a risk there, but it's also impractical, right?
TOM FOREMAN, CNN CORRESPONDENT: It's impractical and it's -- I mean, if you even slightly read the laws of the United States, it looks like it's very
plainly against the law.
Yes, it's impractical. Because, look, this is a country that the U.S. may see as an ally, but also has been allied with Hamas, the U.S. sees it as a
terror group, so there are security experts here who are saying, look, you're going to have to dismantle the whole plane to begin with anyway, and
go over every square inch and then put it all back together to make sure that there are not security failures involved. There are not tracking
devices involved. They're not listening devices. There's nothing involved here.
[16:40:24]
Because, remember, Air Force One is built to be a flying command center in a time of some sort of disaster or need in this country, and in that sense,
it has to be completely secure, Paula.
NEWTON: Which is why it's taking so long, right? I mean, at issue here is Boeing that, quite frankly, literally and figuratively, has not delivered.
FOREMAN: Yes, I don't know all the -- all the details of why it's so slow. And this is the kind of slowdown that, yes, very frustrating in Trump
world, where he wants to say, let's just do it. Let's just do it this way. We'll sort it out later on.
But that's the kind of thing that leads to your Pentagon chief having phone calls on Signal, you know, having chats on Signal to get intercepted,
instead of following the protocols for safety.
So, this is the kind of thing that it totally fits into the Donald Trump world. You look at his private life, you look at his campaign life, you
look at his first presidency. He is very transactional about very many things.
And when he was questioned about this, say, well, what if this country wants something from you? He just kind of shrugs it off and he says, well,
we've done a lot of nice things for them. I think this is just them showing their appreciation.
I think there are an awful lot of intelligence officers and diplomats who would say that is not how this works. These are not your friends. This is
another nation. They don't have to be your enemies, but you can't go taking gigantic gifts like this from them and think that it's just from the
goodness of their hearts.
NEWTON: Yes, the White House says it is still trying to work this out in terms of rules or regulations. And Tom, you know as well as I do, some
Trump supporters will see absolutely nothing wrong with this, so we'll wait to hear more news on that.
FOREMAN: Well, if they read the Constitution, it's right there. It says very clearly, you can't do this, and nobody who works for you can do this.
NEWTON: Perhaps a rereading of that at the White House would be in order at this hour.
FOREMAN: I think they would have a copy or two.
NEWTON: Tom Foreman for us. Thank you. Appreciate it.
And that is QUEST MEANS BUSINESS. Up next, "CONNECTING AFRICA."
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(CONNECTING AFRICA)
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