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Donald Trump Says U.S. Will Hit Iran's Pickaxe Mountain "Pretty Soon"; Ukraine's Recent Military Leadership Shake-Ups Explained; Thousands In India Return To Protest After Police Crackdown; French Lawmakers Approve Ban For Children Under 15; Iran Launches Counterassault After New U.S. Strikes; Houthi Blockade Threatens Global Oil Crisis; U.S. Imposes New 25 Percent Tariffs on Brazil for Unfair Practices; U.S. Announces 50 Percent Tariffs on Certain Canadian Goods; U.S. Humanitarian Aid Flight Arrives in Cuba; Scorching Heat Fuels Europe Wildfires; Bertha Threatens Flooding, Gusty Winds Along Gulf Coast; Annual Fireworks Festival Lights Up Night Sky in Taiwan. Aired 2-3a ET
Aired July 22, 2026 - 02:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
[02:00:44]
ROSEMARY CHURCH, CNN ANCHOR: Hello and welcome to our viewers joining us from all around the world. I'm Rosemary Church.
Just ahead here on CNN NEWSROOM, tensions rise as the U.S. carries out yet another round of strikes on Iran. Tehran says a counter assault is underway.
A shakeup in Ukraine's military amid the ongoing war. President Zelenskyy sacks the country's top commander in chief following days of widespread protests.
Canadians voice frustration as President Trump threatens to slap 50 percent tariffs on the country. We will speak to an expert.
Plus, Outlander fans get a chance to own a piece of the show's history as iconic props and costumes go up for auction.
ANNOUNCER: Live from Atlanta, this is CNN NEWSROOM with Rosemary Church.
CHURCH: Thanks for joining us, and we begin with the war in Iran and the threat of it expanding across the region. U.S. Central Command announced the military completed its 11th consecutive night of strikes against Iran, and Iran's Revolutionary Guard Corps says it responded with a counterassault. President Donald Trump says the U.S. will be hitting Iran's Pickaxe Mountain, a suspected underground nuclear site, pretty soon.
But Iran is warning that a U.S. attack on its nuclear facilities would expand the war across the region. The U.S. Secretary of State says Iran is not serious about talks to end the war. But here's what President Trump had to say:
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: They want to desperately meet, and until they're ready to meet in a meaningful way, we have no interest.
We're not finished at all. But if we left right now, it would take them a long time-years, years-to rebuild.
(END VIDEO CLIP)
CHURCH: CNN's Kristen Holmes has more from the White House.
(BEGIN VIDEOTAPE)
KRISTEN HOLMES, CNN SENIOR WHITE HOUSE CORRESPONDENT: President Trump seems to remain fixated on this idea of striking Pickaxe Mountain in Iran. This is a suspected nuclear facility. Back in 2020, it was declared to the United Nations Atomic Energy Agency as a future facility that could make this nuclear fuel, and it's deep underground. It is a facility in which now we are hearing Israel has some intel that suggests Iran moved centrifuges as well as some of that highly enriched uranium deep underground into this facility.
Here is what President Trump said about it, as well as what the Secretary of Defense Pete Hegseth has said about whether or not the United States could actually reach that facility.
UNIDENTIFIED FEMALE: Do you believe that Iran has moved nuclear centrifuges into Pickaxe Mountain? And when you say we're not done yet, what is left to finish?
TRUMP: Well, I think that they may have -- we don't have it on record. All we do is read the fake news. You know, we see -- the news is so wrong so many times. So, you know, maybe this one they have right, but it's OK. It doesn't mean anything unless they have the material. You're talking about the centrifuges. Yes, it doesn't mean anything unless they have the material. They don't have. We follow the material. That's where the action is, and we'll be hitting that area very probably pretty soon. And there's not a thing they can do about it.
SEN. JOHN KENNEDY (R-LA): Do we have the ability to destroy whatever is underneath Pickaxe Mountain?
PETE HEGSETH, U.S. SECRETARY OF WAR: A lot of -- Senator, a lot of our capabilities are classified. But if anybody in the world can reach anything on this on God's given -- God's green earth, it's the United States military, the most powerful military in the world.
HOLMES: So, seemingly playing coy there, the Secretary of Defense. We should note this is the first time in the last 10 days that we have not seen an announcement from U.S. Central Command that they are continuing these strikes on Iran. We should also point out that Iran has said that if the U.S. does in fact target Pickaxe Mountain, they would view this as an expansion of the regional war.
This is coming at a time where President Trump, we know, is considering expanding that war. We've just sent over -- the United States has just sent over more military aircraft, including fighter jets, F-16s, F-35s, as well as those aerial refueling tankers. It is unclear right now still what the United States plan is moving ahead.
[02:05:00]
Kristen Holmes, CNN, the White House.
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CHURCH: The U.S. Defense Secretary and the Chairman of the Joint Chiefs of Staff testified before Congress, seeking billions of dollars in additional funding for the war with Iran. Here's how much Pete Hegseth says the war has cost so far.
(BEGIN VIDEO CLIP)
HEGSETH: Some of that number captures additional O&M millpay and other that would be anticipated through the fiscal year. So, some of that anticipates what costs would be going out in the future as well.
SEN. DICK DURBIN (D-IL): So, the new number you've given me is what?
HEGSETH: 37.5 billion.
(END VIDEO CLIP)
CHURCH: Hegseth also claims the U.S. has been in control of moving traffic in the Strait of Hormuz despite Iranian attacks, and says the military has helped guide up to 500 million barrels of oil through the vital waterway.
Joining me now from Washington D.C. is Colonel Cedric Leighton, CNN military analyst. Always good to have you with us.
COL. CEDRIC LEIGHTON (RET.), CNN MILITARY ANALYST: Oh, thanks so much, Rosemary. It's great to be with you once again.
CHURCH: Of course. So, Colonel, U.S. Defense Secretary Pete Hegseth came under intense questioning and criticism Tuesday when testifying before the Senate Appropriations Committee over a funding request for an additional $67 billion for the escalating war in Iran. Now he estimated the war has cost $37.5 billion so far. What's your assessment of his handling of this war?
LEIGHTON: Well, I think it's certainly problematic to be -- to be fair. And you know, Rosemary, one of the things about this is that it seems as if the administration did not have a plan. When you get into something like this, you want to make sure that you have the resources that you need in order to do that. Those resources in a military campaign include the right number of munitions, a plan that you have to use those munitions as efficiently as possible. The list of targets that you want to take care of, and they had probably had that part. But what they didn't seem to have is a way in which they could achieve
a desired end state, and they didn't even know, it seems, what that end state was supposed to be. So, I think it was ill-conceived, in spite of the fact that we've been training for an Iran scenario for decades.
But the way this has been executed has been flawless in some areas at the tactical level, but it has missed at the strategic level, and that is a huge issue.
CHURCH: And Hegseth says that the U.S. is in control, his words, in control of the Strait of Hormuz traffic, but admitted Iran retains the capability to attack ships. Does the U.S. actually have control of the Strait? And now, with Yemen's Houthis threatening to blockade Saudi shipping in the Red Sea, there's a risk of two energy checkpoints.
LEIGHTON: Yes, there certainly is a risk of having two checkpoints, toll areas, whatever you want to call them in these areas and these choke points that you know at the Bab-el-Mandeb and at the Strait of Hormuz, they could very much impact global commerce.
So, as far as the Strait of Hormuz is concerned, I would say there are parts of it that you know, on occasion, depending on the specific time, that are under some degree of U.S. control, but it's questionable and tenuous control, and the Iranians can change that any time they want, basically. And that, of course, is a problem not only for the military component but also for all the commercial ships that need to go in and out of the Persian Gulf.
CHURCH: Right. And at that same Senate hearing, Hegseth admitted that Russia and China have been helping Iran in the war, including targeting U.S. forces. How have they been aiding Iran, and why do you think President Trump is downplaying their involvement?
LEIGHTON: Yes, I think President Trump wants to have really good relationships with both President Xi of China, who's coming to Washington pretty soon, and of course President Putin of Russia.
So, it's wonderful to have good relationships, unless those good relationships lead you into a bad place. And in this particular case, I think we have to really be cognizant of the fact that Russia and China are actively aiding the Iranians when it comes to, for example, the manufacture of Shahed drones. There are components of those drones, although they're originally Iranian-made. There are components of those drones that come from Russia. There are also components that come from China, and that also applies to the missile program that the Iranians have.
So, the Iranians do get a lot of help, a lot of material help, as well as technical help from both Russia and China, and it's something that's been badly kept secret for many years now.
CHURCH: And Colonel, suddenly we are hearing President Trump talk about Iran's Pickaxe Mountain, saying the U.S. will be hitting that mountain soon, and this after Israeli intelligence claimed Iran had moved some of its highly enriched uranium to that site, along with centrifuges. Why is Trump giving Iran a heads up on a potential target, one? And how significant is this mountain really and this Israeli intelligence?
[02:10:05]
LEIGHTON: Yes. So, this is a very interesting situation. You know, when it comes to President Trump talking about it in this way, he seems to be very confident that we would be able to not only put bombs on target, as we would say, over Pickaxe Mountain. That those bombs would actually successfully hit those targets.
It is certainly true that the Iranians would not be able to hit a B-2 bomber, which would be the vehicle of choice for the type of bomb that would be necessary to at least do some damage to Pickaxe Mountain.
But Pickaxe Mountain is a very unique place. It's built under basically a layer of granite. Its, you know, tunnels are, you know, 145 meters or more below ground.
So, any ordinance that we have that would be -- would find it very difficult to penetrate that kind of a you know a geologic mass there.
And so, because of that, it is going to be, I think, a very difficult target. And it is interesting that you know the Iranians have put allegedly put the highly enriched uranium and the centrifuges there, but it would be logical that they would do something like that because this facility does seem to be built for a nuclear program, and of course the Iranians have to move things from facilities like Natanz and Fordow and other facilities in order to protect that. Because I do believe that they do still intend to have some vestige of a nuclear weapons program, no matter what kind of agreements they reach with the U.S. or any other country.
CHURCH: And Colonel, in the midst of all of this, how does the war end? What does an off-ramp look like?
LEIGHTON: Well, I think that's very difficult to ascertain right now, Rosemary. But it certainly has to be something that would involve an opening of the Strait of Hormuz on a semi-permanent basis, and also some type of a guarantee that shipping could proceed.
As far as the nuclear program is concerned, that is something that the Iranians want to defer as far into the future as possible, because I think they really want to build a weapon, or at least be close to building a weapon, before they agree to any other type of limitation, such as they had under the JCPOA.
CHURCH: Colonel Cedric Leighton, thank you so much for joining us. Appreciate it and your analysis.
LEIGHTON: You bet, Rosemary. Thanks so much for having me.
CHURCH: Well, President Trump is telling his administration to allow the resumption of direct U.S. commercial flights to Lebanon. He met with Lebanese President Joseph Aoun at the White House on Tuesday. They discussed a deal for Israeli troops to withdraw from parts of southern Lebanon and efforts to disarm Hezbollah.
(BEGIN VIDEO CLIP)
TRUMP: We are going to solve a lot of problems. We've already solved some of them for Lebanon. As you know, there's a Hezbollah problem, but we've done some things that I think the world will take notice.
Again, it's been a very badly treated place and country, and we're going to have it properly treated and treated with respect that it deserves.
(END VIDEO CLIP)
CHURCH: The Israeli withdrawal may not be as easy as President Trump hopes. Israeli forces fired near Lebanese army units in southern Lebanon on Tuesday. The IDF says warning shots were fired into the air and no one was injured.
Separately, two Red Cross medics were injured when their ambulance hit a landmine in southern Lebanon.
Ukraine's president is responding to public anger over his firing of the country's defense minister, Mykhailo Fedorov was ousted last week. A move that sparked protests in Kyiv. Fedorov's reforms and innovations were often at odds with Ukraine's military establishment, but were very popular with troops and civilians, Volodymyr Zelenskyy says Fedorov will have a new role.
(BEGIN VIDEO CLIP)
VOLODYMYR ZELENSKYY, UKRAINIAN PRESIDENT (through translator): I offered Mykhailo Fedorov a prominent position in the government that would allow him to unify the technological component of our state and ensure its development.
(END VIDEO CLIP)
CHURCH: President Zelenskyy has also fired the country's top military chief and replaced him with a younger and very experienced commander. Nick Paton Walsh has details.
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NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT (voice-over): A generational shift: the younger Ukrainians doing the fighting now run by a general nearer their age. 43-year-old Mykhailo Drapatyi. Out, Oleksandr Sirsky, aged 60, who for years met the Soviet brutality of Russia with similar resolve and ruthlessness, nicknamed the Butcher. He became the face of the relentless, ugly toll of the war on frontline troops, sending people to die as something a wartime general has to do, along with always be winning to stay popular.
[02:15:04]
And while Sirsky had notched up enough small victories, they did not save him from modernity. His wartime resume begins with the defense of Kyiv, where thousands of locals bolstered the city's rout of the Russians. The Kharkiv counteroffensive in late 2022 saw Russia collapse, a startling reversal exposing poor command and supply lines, for which Sirsky is credited.
UNIDENTIFIED MALE (through translator): We need to end the enemy units in front of you. You've proved you can do it.
WALSH: But his rivalry with his boss, then Commander Valerii Zaluzhnyi, many analysts have said, led Sirsky to push a focus on the city of Bakhmut during the next summer, and leave the main push of the counteroffensive, Ukraine's main chance to break Russia's road to Crimea with a flood of new Western equipment to falter.
Zaluzhnyi lost his job months later to Sirsky, who swiftly needed a win after so many slow losses, including Bakhmut. The response was daring and stunning, if not strategically sound in the long run. The first invasion of Russia since the Nazis, Kursk.
UNIDENTIFIED MALE (through translator): Over the past 24 hours, our military has moved forward to one to three kilometer un specific directions.
WALSH (voice-over): A major embarrassment for Putin and a turn in the narrative until Ukraine slowly left the next year. Ultimately, the war changed around Ukraine and Sirsky. As a younger generation found tech could compensate for a lack of brute force and people.
Mykhailo Fedorov, the disruptor in chief and new minister of defense, leading the use of drones early to hit deep inside Russia. I.T. data open tenders for equipment transparency questioning everything, and robots and more robots. Nothing could be further from the Sirsky way of war.
But it began to work and gained popularity, the major metric in Zelenskyy's decision making. Fedorov too popular it seemed when he openly clashed with Sirsky, leaving the older general, whose failings and frailty had been the talk of Kyiv for months, suddenly the victor when Zelenskyy edged out a rising star.
That was until rare Kyiv protests switched to focus on Sirsky, leaving Zelenskyy with another popularity crisis, his own, and in need of a new military commander, a bizarrely open and fickle back and forth.
Democracy in wartime, some say, or the president ditching losers, or out with the old and in with the new, and whatever just happened, they too have to keep winning.
(END VIDEOTAPE)
CHURCH: Britain's brand new prime minister says his government will act fast to give voters the economic relief they're craving. Andy Burnham met with his new cabinet on his second day in the job. He's promising to cut taxes on energy bills. It's the first of several early moves signaling his desire to ease Britain's cost of living crisis.
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ANDY BURNHAM, BRITISH PARLIAMENT MEMBER-ELECT: We need to every day think. Well, what can we do just to take that little bit of pressure off people's shoulders, just to give them that little extra sense that help is coming, so that they can have that bit of bit of hope that things are getting better, and that's the mission that we've got to set ourselves together.
(END VIDEO CLIP)
CHURCH: The new prime minister is also promising to end homelessness in the U.K.
A youth-led movement in India is showing no signs of stopping, even after violent clashes with police. We'll have the latest in a live report.
Plus, French lawmakers vote to ban social media for children under 15. We'll hear from students about how they feel about those changes.
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[02:23:23]
CHURCH: Welcome back, everyone. Protesters in India are vowing to keep pushing for action despite a police crackdown. Thousands of supporters of the so-called Cockroach Janta Party were back out in New Delhi Tuesday, demanding the resignation of India's education minister. The youth-led movement has grown amid anger over recent exam paper leaks.
But demonstrators did not march on Parliament, fearing more clashes with police. Dozens were reportedly injured in the crackdown on Monday.
And CNN's Rhea Mogul joins us now live from Hong Kong. Good to see you, Ria. So, what is the latest on the protests in New Delhi?
RHEA MOGUL, CNN SOUTH ASIA REPORTER: Rosemary, the mood in New Delhi is definitely one of anger, but it's also one of determination. Thousands of protesters have gathered and reclaimed their main protest site in the heart of New Delhi after police dismantled it earlier this week. And many protesters that we've spoken with have said that they're not leaving until India's education minister resigns.
Now, this show of defiance comes after clashes between police and protesters, in which police crackdown on protesters using tear gas and batons, and this anger has really moved from what started as an online movement into something that has spilled into the streets and is attracting thousands of people, and political opponents have also capitalized on that anger.
Just yesterday, India's main political opponent Rahul Gandhi, who's the leader of India's main political party, the Congress, said that he wanted Modi to resign, and he staged a sit-in outside Modi's house, and he called for Modi's resignation.
[02:25:05]
And he was briefly detained by police during that resignation. So, really, what began as something that was a joke has turned into something much larger and is turning into much -- into a much bigger political story.
CHURCH: And Rhea, how is the government there responding so far?
MOGUL: Well, Prime Minister Modi hasn't directly responded to the to the protesters, but he has delivered a message via a senior official yesterday, in which he said that his government is going to ensure that paper leaks don't happen again and that the youth of the country are important to his administration.
What's interesting, though, is that Modi doesn't typically respond to criticism or big protest movements. But analysts that are watching this very closely say that Modi or any Indian government, for that matter, cannot afford to lose the support of India's youth, which is one of the largest in the world. So, we'll be watching this very closely to see whether the government chooses to respond and how they choose to reply to the protesters' demands.
CHURCH: Rhea Mogul, many thanks for that live report. Appreciate it.
Well, France is the first E.U. country to ban the use of social media for children under 15. Lawmakers overwhelmingly approved a bill Tuesday that would restrict access for children and establish new rules for social media advertising. CNN's Melissa Bell has details from Paris.
(BEGIN VIDEOTAPE)
MELISSA BELL, CNN SENIOR INTERNATIONAL CORRESPONDENT: France has become the first E.U. country to ban social media for under 15s, following in the footsteps of Australia, who banned social media for under 16s, and the United Kingdom, which had announced a similar project for children there.
The idea is that children under 15 will, from September 1st, no longer be able to set up any accounts on social media, and from January 2027, any existing accounts will be discontinued.
The idea was one of the ones that Emmanuel Macron had announced would be one of his flagship measures for his second term. It's expected to take effect from September. We had a chance to speak to some schoolchildren at the International School here in Paris about what they thought.
UNIDENTIFIED MALE: I use certain apps to see what people are doing, to see where they've been and what the kind of things that they're doing are.
BELL: So, do you think you're going to miss it?
UNIDENTIFIED MALE: Yes, I think I would, yes. UNIDENTIFIED MALE: With social media, people often compare themselves with other people, and that's just unhealthy, and it's bad for people's mental health.
UNIDENTIFIED MALE: I'll probably have a little bit more free time, which I might be able to spend with friends, which I think is, you know, a little bit better than on social media. But I think I won't be able to do, like I like gaming, and I like social media. Like, I like doing those things. So, it's a little bit sad not to be able to, like, share my accomplishments or not to be able to, like, update, get updates as quickly on things, you know.
BELL: Other European countries like Spain, Greece and Denmark are also looking at similar legislation. And E.U.-wide, there is the possibility there may be a block-wide ban at some point. Ursula von der Leyen has set up a panel to look into the question of how better to protect children online.
Melissa Bell, CNN, Paris.
(END VIDEOTAPE)
CHURCH: An Australian judge has dismissed a defamation case against actress Rebel Wilson. The case was brought by actress Charlotte McKinney's, the star of Wilson's directorial debut, a movie musical called "The Deb." She claims Wilson posted misinformation on social media about alleged sexual harassment by one of the film's producers. McKinney's further claimed the incident had damaged her career prospects and made her the subject of abuse, hatred, and ridicule online.
Still to come, details on the massive new tariffs President Trump has announced on Canada and how it could reignite a new trade war.
Plus, help is arriving in Havana. We will have details on the Trump administration's $100 million program to ease the economic hardships of the Cuban people. Back with that and more in just a moment.
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[02:33:41]
CHURCH: Welcome back, everyone. Iran's Revolutionary Guard Corps says they have launched a counter-assault to punish the U.S. Now, this comes after U.S. CENTCOM announced its forces completed an 11th consecutive night of strikes against the country. Iranian state media reported air defenses in the capital, Tehran, were activated. They also reported explosions in several other cities across the country.
Meantime, several Gulf countries reported intercepting aerial attacks on Tuesday. CNN's Nic Robertson has the latest.
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Sirens also in Erbil, in the Kurdish region of Iraq, in the north of Iraq there, reported to be around the U.S. consulate there. So those are the sort of active spots right now. Earlier in the day, it was Jordan, incoming missiles, three of them intercepted there by the Jordanian military.
Interesting listening to President Trump earlier mentioning the fallen soldiers in Jordan who died as a result of Iranian strike at the early part of the weekend indicating that if it had been U.S. operators on the air defense system there, perhaps the situation would have been different. But as far as the sort of Houthis are concerned, the president brushing off a little bit of his concern, and I think the read in the region here is sort of similar at the moment.
[02:35:00]
And as much as the Houthis have said that they will block Saudi oil shipments going through the Red Sea at Bab al-Mandab -- the Houthis, of course, a proxy of the Iranians -- but they have yet to actually fire a military assessment I'm getting at the Houthi military disposition is that they are ready, but they haven't actually committed acts against Saudi vessels.
Of course, the threat itself is strong, but the Houthis being a proxy of Iran, Iran wanting to drive up as quickly as possible the price of oil, shutting down the Red Sea route for Saudi oil at Bab al-Mandab would inevitably increase the rate at which the oil price is already increasing. And that the president is sort of saying isn't happening right now, but he clearly has a plan if it does.
CHURCH: The New York Times and Wall Street Journal are reporting the Trump administration signed off on a civilian nuclear deal with Saudi Arabia. It could be announced in the day ahead. Any deal to give Saudi Arabia nuclear technology would be seen as controversial, with Israel long opposed to the idea.
CNN previously reported that the U.S. tentatively agreed to let Saudi Arabia enrich uranium without safeguards to prevent nuclear weapons development.
Well, in the last few hours, new U.S. tariffs have taken effect on thousands of Brazilian imports. Officials announced the 25 percent tariffs last week after claiming some Brazilian policies have harmed American interests. Some of the items affected include beef, coffee, aircraft parts, and more.
Officials say they're open to negotiations with Brazil on the matter, and it comes as Canada faces new 50 percent tariffs. They're set to take effect in less than 30 days, but Canada's prime minister is already taking steps.
(BEGIN VIDEO CLIP)
MARK CARNEY, CANADIAN PRIME MINISTER: We will look at all options in terms of how we would respond if they do come into effect. That's part of what we'll be discussing with premiers. Also in parallel, as I just said, that I'd spoken with the president, we agreed to intensify discussions. We'll begin that right away, and this is part of the negotiation. So the first objective is to get a comprehensive agreement that benefits, obviously, both countries.
(END VIDEO CLIP)
CHURCH: Canadians are already expressing their frustration over the new tariffs. Here's what business owners in Toronto had to say about the expected changes.
(BEGIN VIDEO CLIP)
FLORENZO ARCADY, HOCKEY STORE OWNER: No one likes tariffs. I mean, it's counterproductive. I mean, when it becomes counterproductive, it does affect manufacturing. It does affect a lot of industry.
REGINA MOLEVA, BUSINESS OWNER: Ten years ago, I would feel that Canada and U.S. friends, right, they support each other economically and politically even. But now, of course, it's like the situation is way worse now.
(END VIDEO CLIP)
CHURCH: Joining me now to discuss this is Carlo Dade. He is the Director of International Policy and the new North America Initiative at the University of Calgary School of Public Policy. Appreciate you joining us.
So U.S.-Canadian relations are being tested yet again after U.S. President, Donald Trump unveiled these plans to impose 50 percent tariffs on a range of Canadian goods Monday in retaliation for what he described as discriminatory treatment of American-made cars, alcohol and dairy products. What will be the likely impact of these tariffs on Canadians, particularly in various provinces, if they end up going into effect on August 19th?
CARLO DADE, DIRECTOR OF INTERNATIONAL POLICY, SCHOOL OF PUBLIC POLICY, UNIVERSITY OF CALGARY: Oh, correct. The big question is if they will go into effect. But even if they don't, the continued uncertainty, the ramping up of uncertainty will have continued damage on Canadian economy, foreign investor confidence, and the general political mood in Canada.
The tariffs are having different impacts across different regions and sectors of the Canadian economy because the Americans have moved from the blanket IEEPA tariffs or International Emergency Economic Powers Act tariffs where everything was potentially tariffed to now targeting only specific sectors and products, and because not every Canadian province produces all those or copper or wind turbines, which have all been targeted, the impacts have really varied by province.
[02:40:00]
Ontario has 58 percent of everything it exports covered by Section 232 tariffs and you add a small additional increment from the new Section 338 tariffs. But other provinces, here in Alberta, it's only 4.5 percent of what we export to the U.S. that's been impacted and there really is little, if any, addition from the new tariffs. So, the impact really varies by province, and even within province, by communities. CHURCH: Yeah, which is an incredible situation, isn't it? Of course, these tariffs come, or the threat of these tariffs come as Canadian wildfires have increased tensions between the two allies and neighbors. How much do you think those fires have to do with these threatened tariffs?
DADE: I think the tariffs are political. The wildfire issue, in the way the administration is using it, is political theatre. Obviously, the real damage is in terms of air quality, the environment in northern Canada. But no, the wildfires are in part of the vast, vast areas of Canada that have no roads, no populations, that are impossible to reach. So there's really nothing that the Canadian government, or I think any government, could do.
So the Americans are taking advantage of this as yet another part of the deal, leveraging in terms of negotiations.
CHURCH: And Canadian --
(CROSSTALK)
DADE: (Inaudible).
CHURCH: Canadian Prime Minister Mark Carney said that he and President Trump spoke Tuesday and agreed to intensify trade negotiations. But he also warned that Ottawa would consider all options if these proposed tariffs proceed. What might that mean in terms of retaliatory tariffs on the U.S.?
DADE: Well, hopefully it doesn't mean retaliatory tariffs. The Americans are inflicting great damage on the U.S. economy and U.S. consumers, businesses that rely on inputs from Canada. Retaliatory tariffs from Canada would only have Canada replicating that damage in Canada on Canadian businesses.
Look, if someone's digging their own grave, you don't fight them for the shovel. And that's the switch we need in Canada, moving from ego and emotion to logic and reason. It's difficult and it's been a major challenge for us.
CHURCH: And just very quickly, how likely is it, do you think, that President Trump will go ahead with these tariffs or just use them as leverage? We've seen that play out before, haven't we?
DADE: Yes, (inaudible) continued leverage. Everything with the Americans these days is a search for leverage, from manipulating leaks to the media, to announcements of tariffs. Everything is about leverage.
Canada is one of only two countries that have stood up to the U.S. trade policies and tariff threats and pressures, China being the other one. The administration can make an example out of Canada that it can't do with China. So we're catching the short end of the stick.
But other countries are facing the same challenge. Jordan today just caved on a new trade deal with the U.S. where they've taken higher tariffs. So what you're seeing happening in Canada could potentially happen to any other country.
CHURCH: All right, we'll see what happens, of course. Carlo Dade, many thanks for joining us. Appreciate it.
DADE: Certainly.
CHURCH: Well, the first of several humanitarian aid flights from the U.S. has arrived in Cuba. The plane brought hygiene kits and prepackaged food for up to 700 Cuban families. They will be delivered by the charity, Catholic Relief Services. The Trump administration has pledged to deliver $100 million in assistance to the island nation. A U.S. oil blockade and decades of government corruption and mismanagement have resulted in economic hardship and repeated blackouts.
The government of Guyana says that 41 bodies have been recovered from a ferry that capsized about 11 kilometers from shore. At least 77 people have been rescued, while 61 remain unaccounted for. Search and rescue operations are ongoing.
Authorities say an inaccurate passenger manifest made it more difficult to determine how many people were on board when the ferry sank on Saturday. The captain and at least one other crew member are in police custody after authorities say they tested positive for marijuana.
Southern Europe is sweltering under its third scorching heat wave of the summer and the soaring temperatures are creating habit for crews battling wildfires in several countries.
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We'll have details for you on the other side of the break. Stay with us.
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CHURCH: A scorching heat wave is searing parts of Europe and fueling wildfires from Spain to Algeria. In southern France, Provence is seeing its biggest wildfires of the summer with more than 1,700 hectares burned in the past day. Hundreds of firefighters are working to keep the flames from spreading further.
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An out-of-control wildfire has now been burning in central Spain for a week. It's scorched more than 29,000 hectares of land and forced some 1,200 people to evacuate their homes. And with temperatures expected to top 40 degrees Celsius for the next few days, there's little relief in sight.
Flooding in Chile has killed at least 10 people and left more than 100,000 isolated. A powerful storm front submerged the coastal city of La Serena after days of heavy rain. The floodwaters have destroyed or severely damaged many homes and roads, cutting off communities from life-saving resources. Officials are trying to get emergency aid to the hardest-hit areas.
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JOSE ANTONIO KAST, CHILEAN PRESIDENT (through translator): The main priority is to restore connectivity so that we can go and assist those fellow citizens who are isolated. Connectivity is essential to be able to deliver aid, including food and drinking water, as the situation being experienced in (inaudible) and Huasco is a complex one.
The air bridge is operating, but we have faced the weather difficulties that you have been able to see. However, it will be reinforced.
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CHURCH: The government has declared a state of emergency in the affected region. Dozens of people are missing and at least 20 are dead after flash flooding in northeastern Afghanistan. That is according to the Taliban-run government, which expects the death toll to rise. Parts of the country are more prone to dangerous floods due to drought and the impact of climate change.
Tropical storm Bertha is slowly moving toward the central Gulf Coast of the U.S. It is expected to bring thunderstorms, gusty winds and coastal flooding to parts of Florida, Alabama, Mississippi and Louisiana. The storm intensified on Tuesday, but its unorganized structure will keep much of its heaviest rain and strongest winds offshore.
Bertha will most likely make landfall or graze the coast of southeast Louisiana by Wednesday evening as a weak tropical storm. It's forecast to track toward the upper Texas coast while weakening to a tropical depression later this week.
Well, after more than a decade, "Outlander" fans are saying goodbye to the hit TV show and its time-traveling storylines, but they can take a piece of the show's history with them into the future. For a price, of course, we'll explain.
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CHURCH: Welcome back, everyone. Well, for eight seasons, the hit TV show "Outlander" followed characters around the globe and through hundreds of years of time travel, and soon fans will have the chance to own their very own piece of the show's history, as some of Outlander's most recognizable props and costumes will soon hit the auction block in London.
Our Lynda Kinkade has details.
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CAITRIONA BALFE AS CLAIRE FRASER, "OUTLANDER": I know all of this because -- because I'm from the future.
LYNDA KINKADE, CNN ANCHOR (voice-over): The time-traveling TV series "Outlander" has come to a close but fans still have a chance to own a piece of the hit show. Props, costumes and set pieces from "Outlander:" are set to go on auction at the London auction house, Bonhams.
The show ran for eight seasons after its premiere in 2014 and took fans around the world from the Scottish Highlands to America. Many iconic costumes from major scenes in the show will go under the hammer with estimated some items will go for several thousand dollars.
MADELEINE CATER, BONHAMS HEAD OF SALES: There's such a big range from all of the tartan from the early Scottish Highlander episodes through to Paris, which was amazing sort of sumptuous, luxurious costumes through into America. I think the red dress that Claire wears in Season II is going to be a fan favorite.
I think a lot of Jamie's costumes, particularly the tartan costume and the kilt that he wears in the Battle of Culloden against his arch nemesis, Black Jack. I think that's really going to see some competitive bidding and I think people are just really excited to own a part of this show.
KINKADE (voice-over): The auction has some experience when it comes to auctioning U.K. production memorabilia. Bonhams has previously auctioned off props and costumes from "The Crown" and "Downton Abbey."
CATER: We're really seeing that these long shows build such an audience and it makes people really invested in it and I think for a lot of people, they have a real connection and emotional connection to it now in that history and that story, so we think maybe some private museums, some individual collectors. It's going to be a really interesting to see where it all ends up.
KINKADE (voice-over): The live auction takes place on August 5th.
Lynda Kinkade, CNN.
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CHURCH: Love that show. Well, an annual fireworks display has been lighting up the night sky in Taiwan. This year, the Penghu International Fireworks Festival was accompanied by a drone show. The crowds also enjoyed the local food and art markets. This is the 24th year of the festival, which runs until late August.
I want to thank you so much for your company this hour. I'm Rosemary Church. "CNN Newsroom" with Polo Sandoval is next.
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