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Israel Says It Will Very Significant Targets in Tehran Today; ICE Arrests Mayoral Candidate and NYC Comptroller Brad Lander; Appeals Court Hearing on National Guard in California; Americans Cut Back Sharply on Spending Last Month Amid Tariffs; Supreme Court Unanimously Rules Against Time Limits on Combat-Related Disability Pay. Aired 1:30-2p ET

Aired June 17, 2025 - 13:30   ET

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

[13:30:00]

BRIANNA KEILAR, CNN HOST: We are following breaking news on this escalating conflict between Israel and Iran. President Trump is now calling for unconditional surrender from Iran. He's also issuing an ominous threat to Iran's supreme leader in social media -- sorry, in a social media post from the last hour.

Trump says that he knows where he's hiding and that he's an easy target, but also said, quote, We are not going to take him out, at least not for now.

CNN's Nick Paton Walsh is with us now. So, Nick, how are these threats likely to be received by Iran's leadership?

NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT: Yes, I mean, it is extraordinary, isn't it, in sort of one breath simultaneously saying we're not going to kill you for now, but then demanding the unconditional surrender, it seems, of Iran's leadership, if not Iran itself. I very much doubt that Iran's leaders are going to read that and feel that they have to suddenly, quote, turn themselves in and indeed how that would even function. I don't really know, given Tehran is simultaneously being told to evacuate by the Israeli government, echoed by President Trump as well.

I think it, again, focuses this particular moment as to exactly what sort of off-ramp does Iran try and find for itself here. We know that its foreign minister has been on the phone to the United Kingdom, Britain and -- sorry, United Kingdom, France and Germany in the past hours, potentially exploring diplomatic routes again, although keen to emphasize how Iran still wants retaliation for Israeli strikes.

But it's also clear and repeated by Donald Trump again today that Israel has air superiority in Iran at the moment. In fact, Donald Trump choosing to say the word we when he referred to that control of the skies.

So, we're at a point now where it looks like the United States is trying to sort of tease to some degree the possibility of it maybe getting more involved or becoming some sort of rhetorical play within this particular conflict, even though just a matter of days ago Trump was clear he didn't want Israel to attack Iran. But I think Iran now dealing with a very complex moment.

We've been looking at some reporting about how many potentially missiles it has left that could indeed reach Israel. They've slowed their tempo in the last days, only 30 fired overnight. Not many, if any, got through at all.

Some suggestions from experts that possibly Iran might have anything between 300 and 1,300 of the 2,000 or so that could reach Israel left. That puts it very much down to depleted stocks. That will leave them deeply anxious about their ability to have a deterrent going forward.

[13:35:00]

And so I think there's also now a remaining question about the enrichment program, the Fordow plant buried in a mountain, whether or not the United States assists Israel with its bunker buster bombs to hit that. A lot clearly in play here, but the United States significantly more involved rhetorically through these Trump posts than it has been in the past days.

Remarkable developments, just as Iran appears weakest.

KEILAR: Certainly. And Nick, Iran is now urging residents to stop using apps like WhatsApp and Telegram citing recent assassinations. Tell us about this warning.

WALSH: Yes, I mean, extraordinary to say to people essentially to stay clear of the two most popular social media and messaging apps in Iran. Now, many have been wondering exactly how it's been that Israel with such precision appears to have targeted many military leaders. It seems so in the pictures we've seen of apartment blocks hit in upscale parts of Tehran as they slept, hitting the rooms that they may well have been in.

Now, many would point towards cell phones potentially being how they got that kind of tracking perfected civilian casualties, too, I should point out during some of these strikes. But now a broader suggestion to stay off those apps is that also potentially part of the Iranian regime trying to find some way of preventing opposition organizing in the days ahead. Look, I think it's fair to say that inside the capital, Tehran, at least the focus is on trying to avoid or get away from Israeli airstrikes rather than change government, despite that becoming increasingly one of Israel's talking points.

But, yes, remarkable sign, frankly, of how penetrated Iran has been that its government is simply saying, stay off your key parts of the Internet to their population. A real sign, I think, of this critical moment for Iran as a regional power, even though that phrase, frankly, seems obsolete now -- Brianna.

KEILAR: Yes, and as so many people are trying to escape the capital, we see the highways there just packed with cars heading out of town. Nick Paton Walsh, thank you very much for the reporting.

And soon, a pivotal hearing is set to take place over whether members of California's National Guard can remain under President Trump's command in that state. We're going to show you what to expect from the hearing next.

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BORIS SANCHEZ, CNN HOST: Breaking news into CNN. New York City Comptroller and mayoral candidate Brad Lander was just arrested by immigration officers inside a Manhattan court. Here's video of the incident.

CNN's Gloria Pazmino joins us now with more on this. So, Gloria, walk us through what happened.

GLORIA PAZMINO, CNN CORRESPONDENT: Yes, Boris, and what you're seeing there is the inside of immigration court down in a federal plaza in lower Manhattan here in New York City. And over the last few days, the comptroller, Brad Lander, has been inside of that building observing as ICE officers have been detaining undocumented migrants or asylum seekers who have been going to court for their court appointments.

We've seen a significant uptick of this kind of practice, and not just here in New York City, but across many other courts around the country where migrants are being detained following their immigration appearances in court.

Now, it looks like in the video and from people I've been speaking with, Brad Lander was in the building observing the ICE officers. There came a point where a man was coming out of court. They were officers there that were going to be arresting that man. Brad Lander then stood next to the man, held onto his arm. And that is when you see immigration officers move in to arrest the man and Brad Lander, who appears to be blocking the officers from arresting this migrant that had been at the court appointment.

His office has put out a statement saying that that's what happened, that he was trying to escort this person out of the courtroom and the officers moved in to arrest him.

Another thing that you can very clearly hear and see in the video is Brad Lander multiple times asking the officers to see a judicial warrant for the arrest of this other person that they're trying to take into custody. We've heard so much in the last few weeks, discussion and people talking about the fact that many people are being taken into custody without this warrant. So you can see Brad Lander asking for it.

One thing, Boris, that is also important to mention here is that Brad Lander is not just a city's comptroller, but he is also a candidate for mayor. There's a very crowded primary race taking place in just a matter of days.

And this is certain to bring a lot of attention to Brad Lander, who has not been doing so well in the polls. It also comes, as we have seen, these other incidents of federal officers taking members of Congress and other elected representatives into custody as they try to conduct some sort of oversight of what immigration officers have been doing around the country -- Boris.

SANCHEZ: Gloria Pazmino, thanks so much for that update -- Brianna.

KEILAR: Here in a few hours, the legal face-off over thousands of National Guard members in California will go before a federal appeals court. This case pits California Governor Gavin Newsom against President Trump. A three-judge panel will weigh a lower court's decision that sided with Newsom and gave him back control of the National Guard troops in his state.

The president had sent the Guard to the L.A. area without Newsom's approval to respond to protests against immigration raids.

CNN chief legal affairs correspondent Paula Reid is joining us now with details on this. Paula, this appeals court paused the order to return control of the Guard to California, then called the hearing today.

What should we expect out of this?

[13:45:00]

PAULA REID, CNN LEGAL AFFAIRS CORRESPONDENT: This is going to be really interesting because this ruling was a bit of a surprise. Remember, this all comes out of this lawsuit that was filed by the Democratic Governor Gavin Newsom against President Trump and Secretary Hegseth over the president calling these National Guard troops into federal service in response to the protests in L.A.

So, what was a big surprise, though, is when Judge Breyer, the brother of retired Justice Stephen Breyer, ruled that, in fact, Trump unlawfully federalized the Guard because he did not follow the legal requirements.

They were especially focused on a procedural requirement that the president needs to go through the governor's office to do this. So, he ruled that of the (INAUDIBLE). Oh, well, let's put a pause on that.

And now this three-judge panel, two Trump (INAUDIBLE) will hear (INAUDIBLE) -- procedure that the president followed. And also, do they agree with Judge Breyer that this was not a, quote, rebellion, and instead that this was First Amendment-protected protesting?

Look, Brianna, I'm going to make one prediction. No matter what happens with this appeals court panel, I have a feeling we will likely be making another trip to the Supreme Court over this question, really, no matter which way it goes.

KEILAR: All right, we need a frequent punch card, right? That's what we need at this point.

REID: I'd love that. I would definitely be an MVP.

KEILAR: You especially, Paula.

All right, coming up, consumers turning cautious. Americans cut back sharply on spending last month. Up next, what this slowdown could signal for the rest of the economy.

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SANCHEZ: The impact of President Trump's trade war is starting to seep into American spending habits. After a buying frenzy earlier this year to try to beat the administration's stiff tax on imports, consumers are now pulling back on their purchases, setting off a potential economic slowdown. The U.S. Commerce Department says that retail sales fell by .9 percent last month, the steepest monthly drop since January, worse than what many economists had predicted.

Let's crunch the numbers with CNN business and politics correspondent Vanessa Yurkevich. So Vanessa, what is driving this decline?

VANESSA YURKEVICH, CNN BUSINESS AND POLITICS CORRESPONDENT: Yes, Boris, this is a shopping spree, pre-tariff hangover. And this is also price pressures starting to seep into the economy and to U.S. consumers. Consumer spending, retail sales is something we look at very closely because it is the biggest driver of economic expansion here in the U.S.

So retail sales, as you mentioned, a steep drop, .9 percent, down .9 percent in May. And now the second consecutive month of falling retail sales because April was actually revised down .1 percent. It was initially up .1 percent. And then if you look at this over the last several months or so, you can see in March this big spike there on your screen, retail sales exploding 1.4 percent. This was Americans trying to get ahead of the tariffs that were coming in April and May. And then look at your screen. Look at what happened there in April and now May, a significant decline in how people were spending.

Now, certain sectors did pick up this month. You had sporting goods and furniture, people doing a little bit of spending there, maybe taking some relief in the fact that the tariffs on China were brought down to 30 percent instead of 145 percent. But look at electronics, .6 percent decline. Also, cars and car parts down 3.5 percent. That was the biggest drop that we saw. And that is why retail sales came in so low in the month of May, because, Boris, essentially, if you bought a car in March, you're probably not buying another car in the month of May.

And then on your screen, there was food and beverage, people going out to eat, essentially that dropped .9 percent. That has been a category where people usually have been spending.

But if you notice going out to eat, going out to bars, that's discretionary spending, right? You don't have to do that. You do that if you want to. And the fact that folks are starting to pull back there is something to keep an eye on, because one industry analyst told me, Boris, that these tariffs have had more bark than bite so far.

But it's interesting just to see how these spending habits are changing with consumers in this latest report. And, of course, Boris, we've got to pay attention to the summer, because July and August, those are when those pauses are up on the 90-day reciprocal tariffs and then on the pause with China. If those tariff rates start to increase, you might see a very different picture in these retail sales as consumers continue to feel price pressures, Boris, and maybe pull back even more.

SANCHEZ: Vanessa Yurkevich, thank you so much for that outlook -- Brianna.

KEILAR: This week on Home Front, after a unanimous decision by the Supreme Court, thousands of disabled veterans may soon be eligible for thousands of dollars in retroactive pay. This is the result of a class-action suit over what's called retroactive combat-related special compensation, which is awarded to some service members who have to retire because of a service-related medical condition. The plaintiff in this case is Marine Corps veteran Simon Soto, who medically retired in 2006 after developing post-traumatic stress disorder.

[13:55:00]

The VA later awarded Soto disability compensation for his condition, and then in 2016, he applied for combat-related special compensation and was approved, but the military only granted him six years of back pay, citing a six-year statute of limitations on claims that requires veterans to file claims within six years of receiving their VA disability rating.

Well, lawyers from the National Veterans Legal Services Program, the nonprofit that helped file the lawsuit on Soto's behalf, successfully argued the limit was inconsistent and unsupported by current law. Justice Clarence Thomas wrote in the court's decision, the statute clearly authorizes the secretary concerned to determine claimant's eligibility according to specific criteria, and those criteria say nothing about time limits. The NVLSP says at least 9,000 service members could benefit from this ruling.

And still ahead, the Department of Homeland Security reversing course on its guidance on limiting immigration raids at farms, hotels, and restaurants. We have CNN's new reporting ahead.

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