Return to Transcripts main page

The Situation Room

Wildfires Hit Texas and Nevada; Iran Threatens Trump Son?; Canada Trade War Escalates. Aired 11-11:30a ET

Aired August 25, 2026 - 11:00   ET

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

[11:00:00]

(COMMERCIAL BREAK)

[11:00:09]

WOLF BLITZER, CNN HOST: Welcome to our viewers here in the United States and around the world. I'm Wolf Blitzer. Pamela Brown is on assignment. You're in THE SITUATION ROOM.

There's breaking news we're following right now, two big stories unfolding this hour. At any moment now, we will hear directly from Canadian leaders responding to this escalating trade war with the United States. President Trump's new tariffs have been met with anger, retaliation, and even more threats from this longtime U.S. ally and neighbor.

We're going to monitor that news conference and bring you the highlights. Stand by for that.

And breaking overnight, Iran is now threatening the life of Barron Trump, the president's youngest child. A video aired by Iranian state TV appears to offer $10 million, a bounty, showing locations where Barron Trump is known to spend time. We will discuss those new threats in just a few moments.

But, first, let's get the very latest of these latest tensions escalating with Canada.

CNN's Anna Stewart and our White House reporter, Kevin Liptak, they're joining us right now.

First of all, Kevin, what are you hearing about this renewed trade war?

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: Right.

And there's no signs this morning, Wolf, that President Trump is backing down at all. He is out on TRUTH Social. He's calling Canada entitled. He says that -- quote -- "I deal with many countries, and Canada is easily the most difficult and unreasonable," and he's even threatening to change the name of Lake Ontario to Lake America.

Obviously, Lake Ontario spans both the countries, the northern side in Canada, the southern side in New York state. He says that he's giving this -- quote -- "serious consideration," and he didn't expect to be -- quote -- "doing much business with Ontario any longer."

It all kind of has echoes of that executive order he signed early in his term to change the name of the Gulf of Mexico to the Gulf of America. Obviously, that's not recognized by any other countries, and it's almost certain that Canada wouldn't recognize a changed name -- a change in the name of Lake Ontario.

Now, yesterday, both the vice president, J.D. Vance, and the Treasury secretary, Scott Bessent, said that negotiations could potentially resume with Canada as each side threatens tariffs on the other.

But what the prime minister, Mark Carney, has said is that he will not resume discussions with the United States until the negotiating team changes their attitude, and he has accused the U.S. of making very last-minute demands in these talks, including changing some of the protections that Canada has in place for the French language and for French culture.

President Trump saying this morning that -- quote -- he would "never interfere" with Canadians speaking French and saying that Carney had been lying -- quote -- "in an attempt to gain political support, which he has totally lost from the people of Quebec."

And so no signs that any of this will be de-escalating any time soon. Remember, those retaliatory tariffs from Canada are set to take effect in early September -- Wolf.

BLITZER: Has there been any discussion, as far as you know, Kevin, at the White House about a possible conversation between the president of the United States and the premier -- prime minister of Canada, Mark Carney?

LIPTAK: Well, certainly, the two men were in touch last week as these trade talks were progressing. And the president at that point actually said that a deal was in hand, only to see all of that collapse at the last minute.

We don't know of any conversations between the two leaders planned for this week, and certainly President Trump's rhetoric has only gotten harsher and harsher against Carney, calling him entitled, saying that he was doing a poor job representing his country in these trade discussions,.

And certainly, conversely, from Carney, you have heard fairly intense rhetoric about President Trump, saying that he wanted Canada to act essentially as a subsidiary of the United States, and so the relationship between these two men certainly deteriorating to new lows.

No signs yet that they plan to speak. The question I think is whether we're sort of in the escalate-to-de-escalate phase of all of this, both sides levying threats in the hopes that it will prompt concessions from the other. But, at this point, it's only escalating. There's no de-escalating to be seen quite yet. BLITZER: Very worrisome, indeed.

All right, Kevin Liptak, thank you very much.

Kevin's at the White House.

I want to bring in CNN correspondent Anna Stewart right now.

Anna, as you know, the Canadian prime minister, Mark Carney, says talks can resume if, he says if the United States comes to the table with -- quote -- "the right attitude." Give us the latest. What are you hearing?

[11:05:03]

ANNA STEWART, CNN CORRESPONDENT: Well, we now have the retaliation from Canada, which, as promised, was going to be dollar-for-dollar retaliation on the 50 percent tariff from the U.S. on some $20 billion worth of goods.

And before I get to sort of what is being targeted here, in the press release that's going along with this press conference, Canada says the U.S.-proposed new terms were not in Canada's best interest. It was asking too much of Canada and offering too little in return, was effectively a bad deal.

They go on to say: "Canada did not choose this trade conflict, but we need to respond to provide a level playing field to our businesses."

Now, what has been announced? Implemented from September 8, Canada is implementing a series of tariffs, 15, 25, and 50 percent, so not the blunt 50 percent that we had from the U.S. It will be targeting $20 billion worth of U.S. goods, so in that sense it is dollar-for-dollar tit for tat.

We will have 50 percent tariffs on imports from the U.S. of steel and aluminum, and that that level was at 25 percent, so that is doubling it. There will therefore be also a 25 percent tariff on all sorts of things I'm seeing here, appliances, dairy products, including cheese, fish, seafood.

In fact, Wolf, I will show you just how big the document of items is. It'll take me a while to get through all of this. Interesting that dairy is included there. President Trump has long railed against unfair trade practices when it comes to dairy, a triple-digit tariff from Canada on the import of U.S. dairy, but that is actually in a quota which the U.S. never hits.

Now they actually face a tariff on dairy. And on top of all of this, on top of all of this is announced a support package from Canada for Canadian businesses and workers. That's totaling $5.4 billion, and they say that's on top of what they already have, which is $18 billion to support businesses as a result of tariffs.

BLITZER: Anna Stewart is helping us appreciate the enormity of this crisis right now. Thank you very, very much.

Also, overnight, a very disturbing new threat from Iran. State TV in Iran aired a video that appears to place a $10 million bounty on the life of Barron Trump, the president's youngest child. The video even shows locations where the 20-year-old is known to spend time.

I don't want to even mention those locations. The Secret Service says it is aware of the threat, but won't comment for security reasons.

Joining us now is Leon Panetta. He was the defense secretary under President Obama. He was also the CIA director and formerly a member of Congress.

Mr. Secretary, thanks so much for joining us.

At any given time, the president and his family are among the best protected people in the world, but how concerning is this latest Iranian public threat and the apparent bounty on the life of 20-year- old Barron Trump?

LEON PANETTA, FORMER U.S. SECRETARY OF DEFENSE: Well, I think you have to take these kinds of threats very seriously, especially if they did it over Iranian TV.

It's crazy for them to even try something like that, because that would probably result without question in an all-out war. And so I think the United States is going to have to take that threat seriously, but I also think Iran needs to be aware of the consequences of doing anything like that. It's not -- it is definitely not in their interest.

BLITZER: Because the way that video on Iranian state TV aired, it seemed to suggest that perhaps a supporter of Iran, a supporter of terrorism in the United States should go out and try to kill Barron Trump and then get a $10 million reward for doing so. Is that the way you understood it as well?

PANETTA: Look, Wolf, the threats we have gotten from Iran are very similar, that the word goes out that individuals here in the United States might be the kind of terrorists who might attempt that kind of assassination, either on the president or the first family or others as well.

That's the kind of intelligence we have gotten in terms of Iran's threats. And so it's for that reason that you have to take these kinds of threats very seriously and not assume that it's just propaganda. Iran, from my experience, makes these kinds of threats. You have got to be prepared to deal with it, because that kind of craziness can be a reality when it comes to what they do.

BLITZER: And they dramatically have to beef up security for Barron Trump right now. I assume you agree, right?

[11:10:02]

PANETTA: Absolutely. Absolutely.

BLITZER: Let me also ask you, Mr. Secretary, about the current U.S. sanctions, the new sanctions on Iran and the threat to punish countries that continue to do business with the Iranian regime.

China is Iran's top export partner, and China is severely criticizing these latest news sanctions from the U.S. Is Washington headed for a collision course with Beijing?

PANETTA: Well, I think what's happening, Wolf, is that we have been in a stalemate in Iran. Both sides are running out of options as to what to do.

The United States has tried military action. That has not brought down the regime. It hasn't stopped them from firing missiles. It hasn't stopped them from closing the Straits of Hormuz. And on the nuclear issue, we're nowhere in terms of trying to decide who controls the enriched fuel and what happens in terms of some kind of inspection regime.

None of that is anywhere. And so the United States is now trying an economic approach, D-Day. But, on D-Day, when the United States landed, we had a lot of allies landing with us. That's not the case here on this economic D-Day.

The reality is that China nor any of the countries that Iran has traded with are part of this approach. And, for that reason, it becomes very hollow, unless you can get other countries, particularly China, involved in making sure that we do everything to isolate Iran.

So, I do not see this as being a very successful move until they're able to get that kind of cooperation, and I don't see that coming from China in particular.

BLITZER: And on that specific issue, if China is not held to account, Mr. Secretary, will Iran's other major trading partners, such as India and Turkey, for example, be as likely to sever ties?

PANETTA: I think all of them are going to be very cautious before they take action here.

Frankly, the United States, prior to making this kind of announcement, should have lined up these countries to support isolating Iran. They didn't do that. In the press conference yesterday, the secretary is kind of hopefully praying that these other countries will come in and support this initiative.

That's not a good way to conduct business. You have got to lay that groundwork. You have got to build those allies into the package. They have got to be committed to doing this. Otherwise, as I said, you can say you're going to conduct a D-Day approach on the economy, but the reality is, nobody's going to show up.

And that means that, frankly, we're going to continue right now in this forever war. That's the likely outcome of all of these actions that we're seeing now. BLITZER: We just learned in the last few minutes that the CIA

director, John Ratcliffe, secretly traveled to Moscow overnight to meet with top Russian officials. It comes as negotiations to try to end the war between Russia and Ukraine have stalled, and just after the treasury secretary, Scott Bessent, announced a strategy to isolate Iran from the rest of the world.

Would Russia, you think, support any of this?

PANETTA: Well, my experience is that the axis that involves Russia, China, and North Korea and Iran is very tight. They're all supporting one another. They have provided drones. They provided weapons. They provided fighters to one another.

And so I appreciate the fact that we're going to Russia, but the secretary didn't mention Russia, and he really didn't even mention China by name in terms of the kind of difficulties that we're going to run into unless that we get their cooperation.

I think it's a long shot. I think the -- our adversaries are going to continue to work together, and I'm not sure we're going to make any progress going directly to Russia until the United States makes very clear that we are going to provide weapons to Ukraine to defend itself.

If we send that message, they will pay attention. But just to simply send the CIA director there on a hope and a prayer is not going to do it.

[11:15:03]

BLITZER: Leon Panetta, as always, thank you so much for your expertise. Appreciate it very, very much.

PANETTA: Good to be with you.

BLITZER: And still ahead: Fire crews in Texas and Nevada, they are racing right now to try to get fast-moving wildfires under control, as the weather there threatens to work against them.

And Indiana's governor now calling for an investigation with people in the largely black city of Gary, Indiana, still without power two weeks after storms knocked it out.

Lots going on. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

[11:20:01]

BLITZER: Happening now: A wildfire in North Texas explodes overnight and burns at a pace equal to 35 football fields per minute. It's one of two major blazes during a flash drought in the region. Extreme heat today, up to 107 degrees, could make containing those fires much harder. You can see the massive cloud of thick smoke and intense flames over

the grasslands in Palo Pinto County, just west of the Dallas-Fort Worth area. As of this morning, it was just 5 percent contained, and people were being told to be ready to evacuate. About an hour south of there, another wildfire has forced some evacuations.

No injuries have been reported in either fire, at least not yet. Let's hope it stays that way.

Happening now, firefighters are also gaining ground in Nevada. They have now contained about a third of the fast-moving wildfire near Reno. Thousands of people are still under evacuation orders, but some have returned home. New satellite images show the aftermath of the fire. The first image shows Reno last Tuesday, followed by the burnt hillside just five days later.

Officials say seven people have been injured, including three first responders, and dozens of homes have been destroyed.

CNN correspondent Marybel Gonzalez is in Reno for us.

Marybel, what are you seeing this morning? And tell us why you're wearing that mask.

MARYBEL GONZALEZ, CNN CORRESPONDENT: Yes, hi, Wolf.

Well, I can tell you that while firefighters are definitely making headway in this fire, the threat still remains, and you can certainly see why. We're at an evacuation zone. Thousands of people are still not able to return, and these zones are being strictly enforced by checkpoints that are guarded by members of the National Guard and other law enforcement agents.

Now, I'm wearing this mask today because, as you know, with wildfires, especially those affecting urban areas, the homes that are destroyed -- and we know that at least 32 homes have been destroyed in this fire -- everything else is also incinerated along with it. That means every chemical, appliance inside of those homes.

And so while it may not be very smoky here, all of those particles are in the air, and it definitely poses a harm to residents and all of us who are in this area.

Now, as I mentioned, there are checkpoints that are being strictly enforced. Residents are not allowed to come into this area with a vehicle. They're only allowed in if they walk to their neighborhoods. And you can certainly see why. Just take a look at the mountains behind us. You can see those burn scars there. You can see the damage and just the widespread effect of all of this.

Right below that mountain is where you will find neighborhoods that have either been -- homes that have been destroyed or severely damaged. And we spoke to one family who returned yesterday to see how their home was holding up. They were lucky that it was not burned down, but other neighbors did not have that same fate. Let's take a listen. (BEGIN VIDEO CLIP)

JESSE TAYLOR, RESIDENT OF RENO, NEVADA: Ten minutes later after he called me of it being at the water tower, it had made it to our neighbor's house. And he said: "The neighbor's house is on fire, and I can't breathe anymore. I got to go."

And so that's when we just left. Or he left. I couldn't even make it in because of all the traffic.

(END VIDEO CLIP)

GONZALEZ: Now, we're certainly not in the clear just yet. One thing officials are keeping a close eye on are areas just like this one that is covered with brush and lots of vegetation. If that wind picks up, and because of the dry conditions, this is what could potentially reignite the fire or spread it even further.

Now, as far as the cause of the fire, that is still under investigation. Officials say it is human-caused. However, they have not said what exactly ignited it and whether or not this was done intentionally -- Wolf.

BLITZER: All right, Marybel Gonzalez, thank you very much. Stay safe over there and keep wearing that mask.

Weather conditions are also making the job much harder for firefighters in both Nevada and Texas. They're dealing with wind gusts up to 40 miles an hour, extreme heat, and low humidity.

Let's check in with our meteorologist Derek Van Dam. He's over at the CNN Weather Center.

Derek, how long will these conditions, sadly, last?

DEREK VAN DAM, AMS METEOROLOGIST: Unfortunately, Wolf, the conditions could get worse before they get better across Nevada and parts of West Texas. Obviously, the damage has already been done just outside of Reno.

And I want to show you the burn scar here from the Hawk Fire and what the winds do through a course of a 24-hour cycle. At nighttime, we often see the winds relax and into the early morning hours. But, by the afternoon, we get the daytime heating from the sun that helps mix out the atmosphere a little bit, and then the winds start to pick up.

Coming out of the southwesterly direction, there's a couple of large- scale patterns that will influence the weather going forward too, increasing the winds as we head into the second half of this workweek more consistently. So this is that narrow window of time that firefighters have on the ground to get a hold of that leading edge in the front line.

[11:25:00]

They're making some serious progress. The containment numbers, we all like to see that, but the weather is really working against them, because we talk about the relative humidity. That's how much moisture is available in the atmosphere. When you start seeing it drop below 20 percent, below 10 percent, that's danger zone, right?

That is basically zapping out all the moisture from the vegetation. You saw it on our live shot a moment ago just how dry the brush was on the ground. So, geographical reference, there's dozens of fires over the Western U.S. There's the Hawk Fire near Reno, but here's the Ross Fire across Texas, just west of Dallas-Fort Worth.

No rain in this forecast, and, of course, we have got our ongoing drought plaguing much of the western two-thirds of the country. On top of that, we have what's called a rapid-onset drought with the outlook here from the Climate Prediction Center encompassing much of Central Texas, where they are under an intense heat wave, a heat dome that has lasted for weeks, and it continues in this forecast.

This is a look at the Ross Fire guided by the strong southerly winds. Again, here's Dallas, and you can see the burn scar associated with that just running with the direction of the wind coming from the south, and that is going to change directions here over the coming days. So that could complicate matters on the ground when we start to see conditions just like this -- Wolf.

BLITZER: Our meteorologist Derek Van Dam, thank you for that update.

Also happening now: day 14 without electricity. This morning, about 2,000 people in Gary, Indiana, are in the dark two weeks after a very powerful storm knocked out their power. The local utility company said more than 370,000 customers initially lost power and estimates that everyone should have it restored later today.

But the backlash has already begun. The Indiana governor, Mike Braun, has called for an investigation into the utility company. He says it failed to deliver adequate solutions.

And the popular food critic Keith Lee held a brief event for the community on Monday to support people who've been struggling, struggling big time after the storm.

Up next: Did the U.S. Supreme Court just make it harder to cast ballots by mail? What the justices' latest ruling means for the millions of American voters who mail -- who mail it in.

(COMMERCIAL BREAK)