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90,000 in Reno Urged to Evacuate as Wildfire Bears Down; Bessent Announces Sustained Financial Operation Against Iran; U.S.- Canada Trade War Reignites as Talks Collapse; Father of USS Lincoln Sailor in ICE Custody. Aired 2-2:30p ET

Aired August 24, 2026 - 14:00   ET

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

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[14:00:11]

BORIS SANCHEZ, CNN CO-ANCHOR OF "CNN NEWS CENTRAL": Economic escalation. The White House announcing new sanctions on Iran, calling it an "Economic D-Day." Will the latest move actually change the conflict?

Plus, a surprise meeting. A Democratic leader sitting down with one of the president's closest advisers, his son-in-law Jared Kushner. Could this lay the groundwork for cooperation after the midterms?

BRIANNA KEILAR, CNN CO-ANCHOR OF "CNN NEWS CENTRAL": And 90,000 people urged to leave their homes as the devastating hawk fire rages near Reno, Nevada. High winds could make the situation even worse this week.

We're following these major developing stories and many more, all coming in right here to "CNN News Central."

SANCHEZ: Breaking News to CNN. The U.S. laying out its plan to deliver a crippling economic blow to Iran. Just last hour, Treasury Secretary, Scott Bessent saying the aim is to tighten the noose around Tehran. Bessent warning world leaders that no one is above the reach of U.S. sanctions, adding that nations must now decide between America and Iran.

(BEGIN VIDEO CLIP)

SCOTT BESSENT, UNITED STATES TREASURY SECRETARY: Those who stand with the United States will reap the rewards of our partnership. Those who tether themselves to the Iranian regime should expect to share in the isolation of a withering regime.

(END VIDEO CLIP)

SANCHEZ: Let's go live to the White House with CNN's Kristen Holmes. Kristen, a lot of tough talk from the administration. Not that many specifics though coming from the Treasury Secretary.

KRISTEN HOLMES, CNN SENIOR WHITE HOUSE CORRESPONDENT: Yeah, Boris, and we don't even have a timeline on this other than Bessent saying that they were going to grow impatient and they were not going to wait forever when it came to this kind of economic strangulation, as you laid out.

Now this is all part of what we've been reporting, which is the shift in tactic when it comes to Iran from this administration. Less military, more economic kind of suffocation over time, and we're told that's likely the posture they're going to continue to take at least through the midterms as they try and bring Iran, at least get them back to the negotiating table or try to shake something loose in what's been a standoff here.

And as you noted, Bessent saying nobody was above this when asked specifically if this would include China. So that's something to take note of right there. This is what else he had to say.

(BEGIN VIDEO CLIP)

BESSENT: Teams from Treasury, State, and the U.S. Military are now meeting with their global counterparts to tell them that the United States expects action. Let me be clear, any entity that facilitates money laundering on behalf of Iran will be removed from the U.S. dollar system. The clock just started ticking.

(END VIDEO CLIP)

HOLMES: So a couple of things here. One, in order to make this work, the U.S. is really going to have to rally those allies, those Western allies, to get them on board with this. But the other part of this that has a lot of skeptics shaking their head is that the reality is Iran has been under these kind of strict international tariffs for years, and it has not moved the needle when it comes to negotiations on a nuclear platform or any kind of movement from Iran.

So whether or not this is different, that's what time is going to tell. And how this actually plays out, whether or not they can get these other countries on board, that is going to be crucial here to see if this actually does move the needle at all.

SANCHEZ: Kristen Holmes from the White House, thank you so much. Brianna?

KEILAR: The Trump administration is also turning up the economic pressure on one of America's closest allies, escalating a trade war with Canada. The U.S. has now imposed a 50 percent tariff on $20 billion in Canadian goods, hitting everything from dairy and paper products to alcohol. Canada is vowing to respond with dollar-for- dollar tariffs on a broad range of U.S. goods starting September 8th.

And today, President Trump is raising the stakes further, posting in part, quote, "On January 1, 2027, tariffs on all cars, trucks, both large and small, automotive parts and steel, will be increased to 50 percent. Build in the U.S. and there are zero tariffs. Canada will be treated like a state no longer."

Windsor, Ontario Mayor, Drew Dilkens is with us now to talk about this. Mayor, thanks for being with us. I'm sure that you were paying attention to Secretary Bessent earlier today. He just said the president would like Canada to come to the table and negotiate in good faith. He said that Prime Minister, Mark Carney rose to power on an anti-American, anti-Trump platform. And one has to ask, is he trying to benefit himself, the Liberal Party, or the Canadian people? What do you say to that?

MAYOR DREW DILKENS, WINDSOR, ONTARIO: Well, I go back to first principles. We negotiated with President Trump in his first term, the USMCA, which the president himself called in 2018, the best trade deal of all time. And that had tariff-free trade for goods made in Mexico, Canada or the United States.

[14:05:00]

Within that trade agreement, there are dispute resolution mechanisms that allow either country to be able to sort out any disputes that we have. But when President Trump was re-elected for the second time, he started hiving off steel, aluminum, autos, lumber, and a whole host of other goods and said, you know what, USMCA, we don't like it anymore, we're going to apply separate tariffs to these separate sectors.

And so this is not good for anyone. It's not good for business. It's not good for families on either side of the border. And I'm still hopeful that sensible minds will prevail, we'll be able to get back to the table and figure this out before it's too late.

KEILAR: I do wonder how you see this relationship, because Trump said this morning, we don't need Canada, they need us.

DILKENS: Well, listen, that's always an interesting comment for us to hear that, because the United States relies a whole lot on Canadian energy and oil, it relies a whole lot on potash that comes from Saskatchewan, and uranium, and a whole host of other goods.

And when I look at the auto industry, and I reflect, Brianna, on what we've created here between Canada and the United States, of course, Windsor, the auto capital of Canada, just a mile away is Detroit, the Motor City. We have created an integrated economy, an integrated supply chain that is unlike anywhere else in the world. And we built that together.

And so for perspective, the United States has applied a 10 percent tariff on cars from Great Britain, no parts from the U.S. or Canada are put in those cars. 15 percent tariff on goods and cars coming from South Korea or Japan, no U.S. or Canadian content goes in those vehicles. And so the expectation is that we're going to have a 15 percent tariff on autos coming from Canada.

When we actually built the supply chains together to the benefit of the industry, and ultimately the consumer who pays a low cost for vehicles, it makes no sense. But I get it, Donald Trump has an ego, he has to be the winner. We're willing to play the game, but any trade deal, any agreement has to work in the best interest of both countries.

It can't disadvantage one country and expect that country to fall on bent knee and agree to that.

KEILAR: Ontario's Premier, Doug Ford told the AP this morning that Ronald Reagan would be throwing up over Trump's trade moves. He threatened to cut off electricity and critical minerals. He said, you won't get a grain of sand out of Ontario. How do you see your city fitting into that? Would you help him implement those threats?

DILKENS: Well, listen, I don't want any of this to happen. And I think people in my city, they just want some certainty that they're going to have a job tomorrow, that there aren't going to be layoffs, that they'll continue to be able to pay the mortgage and put groceries on the table.

And I'm sure my friends in Michigan want the same darn thing. But today, they get in their F-150s and they're paying over $4 a gallon for gas. They go to their closest grocery store, they're paying an extraordinary amount for ground beef to make hamburgers this summer.

And I don't think in the middle of this affordability crisis that we're all working through, that adding more tariffs on top of the pain that's already been created makes sense for everyone. I want everyone to be able to succeed here. The trade agreement we have in place has proved to be successful for the benefit of people in all three countries.

We need to find a pathway back to the USMCA, which has worked, which has continued to work since the 1980s under the free trade agreement, and resolve any of the disputes that we have within that framework that Donald Trump created in his first term.

KEILAR: And he has actually just posted again here in the course of us speaking about Canada saying that "It needs to fall in line or consequences for Canada will be far worse." Obviously he's weighing in a lot when it comes to Canada here.

But I do want to ask you, last month, the Gordie Howe Bridge opened, which gives your city this connection to Detroit. A lot of focus on this. It's even open to pedestrians who can walk and bike across between these two countries. The president has threatened to block it from opening earlier this year in July.

He said his administration actually changed the terms of the deal so that the U.S. gets half the profits of it. Is that profit sharing that he describes happening?

DILKENS: Well listen, Canada paid for the entire cost of construction of the Gordie Howe Bridge, almost $6.5 billion, and our partner is the State of Michigan in that particular project. And so the agreement that was made sees 50 percent of the net proceeds going to some economic development fund in the state of Michigan.

But you know, we have, it's only been open for the better part of a month. There is no certainty on terms of traffic flows and shifts and no one really has a clear picture on the net proceeds at this point in time. But there was a cost to keep the bridge closed, a cost to open it. Obviously, opening it makes a lot more sense. There's a lot of excitement between Windsor and Detroit, and Canada and the U.S., with this particular bridge.

And I think if you look at this bridge as a model of what we've created between our two countries, this bridge will be there more than a hundred years. It'll be a symbol of good friendship that we're not enjoying today, but in times to come, in the next few years, I think we're going to be back to a time where this bridge, certainly the symbolism of it, makes a whole lot more sense for our two countries.

[14:10:10]

KEILAR: Yeah, the U.S.-Canada relationship has been long and stable, right? And I wonder as you are watching what is happening here, these latest salvos in this U.S.-Canada trade fight, how do you see the long-term impact of all of that even once the president is no longer in power?

DILKENS: There's definitely going --- it's definitely going to require a period of healing for Canadians. You know that the most difficult thing for us I think, Brianna, out of the gate was when the president threatened to make Canada the 51st state.

And when you say it the first time perhaps you can laugh it off, but it was the doubling down and certainly continuing to reinforce that. At the same time, he was looking at Greenland and threatening to take over Greenland. And so Canadians were certainly, you know, the hair on the back of our neck was standing up at that particular comment and some of the actions the president has taken.

What he's doing on the economic front though just makes no sense. It makes no sense, forget about Canada, it makes no sense for the United States. We have always and long said that a tariff to Canada is simply a tax to U.S. consumers and that is playing out.

And the analogy I used with the F-150 and the price of gas and the price of groceries, it is going to get worse. If Canada is forced to retaliate on September 8th and if the U.S. certainly, you know, adds a 50 percent tariff on all goods regardless of whether they're CUSMA or USMCA compliant on January 1st, there will be widespread and massive layoffs in Canada, in the United States, in Mexico as well. And it will serve to no one's benefit to get to that point in time.

So we need bright minds to prevail here to get us back to the table and finding an agreement that works for both parties. We want to create Fortress North America where we're collaborating with the United States and Mexico, finding a way to build more parts and more goods in North America, on our continent to create more jobs. That's in our economic best interest and I'm hopeful we'll be able to get back there one day soon.

KEILAR: Mayor Drew Dilkens, thank you so much for being with us.

DILKENS: Thanks for having me.

KEILAR: Still to come, a wildfire is raging out of control near Reno, Nevada as it threatens tens of thousands of residents there. Ahead, the battle to contain the Hawk Fire. Then later, while U.S. troops serve their country, some of their loved ones are being detained or deported. We have the details about one family's plea to keep their father at home. That and much more coming up on "CNN News Central."

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[14:17:13]

SANCHEZ: A fast-moving wildfire just outside Reno, Nevada is still raging out of control and threatening tens of thousands of residents. Firefighters have been battling the Hawk Fire since Saturday. It is right now zero percent contained and some 90,000 have been urged to flee their homes.

Dry, hot weather and gusty winds are only adding to challenges for firefighters. Let's get more now from CNN Meteorologist, Derek Van Dam. Derek, what are conditions like in the region right now?

DEREK VAN DAM, AMS METEOROLOGIST: Well, we just got an update from some of the authorities on the ground there. They were able to kind of hold the front line from this fire, the explosive growth that took place over the weekend. So this is a glimmer of good hope. But there are difficult conditions ahead and this really is an all hands on deck type of an effort. Not only on the ground, but from the air as well.

This is the National Guard, the Nevada National Guard being called in with the helicopters dropping fire retardant water on the front lines this weekend. This is when it really exploded and just imagine this moment looking up and over the hillside. There's a community below and seeing a wildfire approaching your home, your business, your area.

That is scary. That's why there's over 90,000 people that are currently asked to evacuate. There are several dozens of active large wildfires across the western U.S. But the one we're focusing on right now here is the Hawk Fire because of its proximity to, well, let's say populated areas.

So just to put it into geographic perspective, here's downtown Reno. The ignition point, which started on Saturday, is about five miles to the northwest of the actual city center. But look at the acreage that it's burned so far. That's about 15,000 acres and this has encroached and hopped over highways, also into residential neighborhoods, burning some structures.

Now the wind is forecast to tighten or at least increase through the next couple of days and it's because of this pressure squeeze between an approaching low pressure system and the heat dome that's still translating across the southern U.S. that's pushing the air between these two immovable objects like if you're in a city center, the air pushing between buildings gets faster.

Well, that's what we could expect to see here on the ground as it funnels through the canyons and the mountains across the western U.S., specifically into the Reno area, could gust anywhere from 20 to upwards of 30 miles per hour, especially as we head into Wednesday, Thursday, and Friday of this week.

So this is unfortunately a dire situation for in terms of new fire growth or additional fire spread, especially as we head into the critical moments of this fire, which are happening right now. The relative humidity values aren't dropping where we need them to be, and so we're going to see a very difficult and challenging next few days for the firefighters with no rain in store for this forecast.

Boris, it is just downright hot and this heat dome is adding to the misery here across the south.

[14:20:00]

SANCHEZ: Derek Van Dam, thank you so much for that updated story to keep an eye on.

Still to come, a father detained by ICE facing possible deportation, his son in anguish, hoping to see his father, but he's at sea, serving on the USS Lincoln. Their story is straight ahead.

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KEILAR: The father of a U.S. sailor currently deployed to the Middle East aboard the overextended USS Lincoln was arrested by U.S. Border Patrol.

[14:25:00]

The Department of Homeland Security says Luis Manuel Aviles is now in ICE custody as the government seeks to deport him. His wife says he's from Nicaragua and has been in the U.S. for 19 years and works as a handyman in Key West, Florida. She also says he has a permit to work in the U.S.

CNN's Priscilla Alvarez is following the story. Priscilla, what more have you learned about this particular arrest?

PRISCILLA ALVAREZ, CNN CORRESPONDENT: Well, in this case, it has been a huge surprise for the family of Luis Manuel Aviles, particularly his son who, as you mentioned, is deployed at the USS Lincoln. And he had written on Facebook his feelings about this as someone who has been working 12-hour shifts every day for 250 days, had been looking forward to coming home to his father. And his mother says that his father similarly was looking forward to that. Now his dad is detained.

Let me just read you a part of his Facebook post where he says, "This is heartbreaking for me. I don't know how I can mentally continue working 12-plus hour days knowing that my dad is somewhere possibly treated like a criminal." That's Joshua Aviles, again, deployed with the USS Lincoln.

Now, his father, as we know, according to his wife, had a work permit, had been in the U.S. for 19 years and is from Nicaragua. And it was during driving his car from the mechanic that he was detained. Now, when asked about his detention, the Department of Homeland Security said that, quote, "Having a family member in the military is not a free pass to violate our nation's laws."

Now, what I will tell you, Brianna, is we have to look at this within context and also historically. Typically, the federal government has not gone and targeted the immediate family members of active military members because of concerns of military preparedness. Look at Joshua Aviles and the way that he is distraught over this as someone who is deployed. Unless, of course, there is a reason, there is a criminal record, there's some other reason behind the arrest.

So this has already been a trend that's been happening. And this adds to that. And there is a concern held among veterans, held among Democratic lawmakers, among others, about the decision by a department to target someone like Luis Manuel Aviles.

There are also some avenues for the immediate family members of military members to get immigration relief. But that, of course, is dependent on their circumstances. So we don't know all of that here beyond the fact that he was legally working in the U.S. and is now held in ICE detention.

KEILAR: It appears there are some concerns within the Trump administration itself. I mean, we understand the DHS Secretary, Markwayne Mullin, has in some cases, it appears, intervened because this is so highly unusual, right?

ALVAREZ: Yeah. And according to the Associated Press, who documented some of these incidents, because there is not government accounting of these arrests and their ties to the military, Secretary Markwayne Mullin has gotten involved in some cases to release some of these families. In other cases, that's not true, however. In fact, some have self-deported or been deported.

KEILAR: It speaks to a change in how these family members are being treated and also how the administration may be treating certain work status or other kinds of status that may have actually protected people from staying in the country before.

ALVAREZ: You're noting the fact that, number one, there have been people who've always been in this gray area that the federal government knows about, but they're in a process or they're legally working in the U.S. because we know about them. And again, they're applying for some sort of relief. So we're not going to arrest them because we know about them.

If something happens, then we will. But otherwise, we won't. This administration, however, is going after them. And a work permit is not a legal status to be in the United States. It does, however, allow you to work here while you try to obtain that. And for the families of military members, and something that even Joshua mentioned in other families, they anticipate that because of their service, they can get some relief for their parents who may be here undocumented or trying to get relief.

And that is becoming much more challenging. And in fact, we're seeing the opposite happen. And so a lot of these categories of people who otherwise we knew about, we being the U.S. government, but decided not to take action because they were in some other pathway, are now deciding to. And that can affect a family, but it can also affect, according to some, the military preparedness of the country.

KEILAR: Yeah. Priscilla, thank you so much for the great reporting. We appreciate it.

Still to come, the U.S. threatening an economic D-Day aimed at countries tied to Iran. What could the new sanctions look like? And what might the consequences be?

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