Return to Transcripts main page

CNN Newsroom

CNN International: U.S. Threatens Sanctions On Iran's Trading Partners; Inside Trump's Tariffs And Canada's Plans To Reciprocate; London's Support For Ukraine Heightens Tensions With Russia. Aired 4- 4:30a ET

Aired August 25, 2026 - 04:00   ET

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

(COMMERCIAL BREAK)

[04:00:48]

POLO SANDOVAL, CNN CORRESPONDENT: Hi everybody, welcome. I'm Polo Sandoval live in New York and here's what's ahead here on CNN Newsroom. The Trump administration threatened sanctions on countries that refused to cut ties with Iran. But Iranian leaders remain defiant despite facing economic hardship at home.

Plus, deported to a place they've never even heard of. CNN speaks with migrants who were sent to a country that the U.S. State Department urges people not to visit.

And FIFA president Gianni Infantino clinging to power in the face of controversy. An African soccer legend speaks to CNN in his defense.

UNIDENTIFIED MALE: Live from New York, this is CNN Newsroom with Polo Sandoval.

SANDOVAL: The White House's so-called economic D-Day against Iran turned out to be, "A warning shot for its trading partners." On Monday, the U.S. Treasury Secretary threatened new sanctions on countries refusing to cut economic ties with Tehran. Secretary Scott Bessent did not name any country specifically, but experts are telling CNN that China, India, Turkey, Iraq, the United Arab Emirates, that they all could be the most at risk for U.S. action.

But Tehran's top negotiator dismissed the announcement as a bluster and says Washington is not in a position to limit Iran's economic relations. CNN's Kevin Liptak had this question for the secretary.

(BEGIN VIDEO CLIP)

KEVIN LIPTAK, CNN SENIOR WHITE HOUSE REPORTER: You described this as an economic D-Day, but D-Day wasn't a threat of an invasion and the U.S. didn't give a timeline to Germany. So why not impose the sanctions today?

SCOTT BESSENT, U.S. TREASURY SECRETARY: Well, we are giving everyone the opportunity to remedy bad behavior. Why would I want to blow up the global financial system? We believe that it is important to level set and give people a cure period, but they should know that that will move very quickly and that we are serious.

(END VIDEO CLIP)

SANDOVAL: CNN's Nada Bashir joined me now live from London. Nada, it's great to see you again. So you just heard the Treasury Secretary there saying that he considers this an opportunity for nations to remedy what he described as bad behavior. I mean, from the looks of it, though, it doesn't seem that Tehran is anxious to take up said opportunity.

NADA BASHIR, CNN REPORTER: That is certainly the messaging and rhetoric that we have been hearing from Iranian officials in response to this announcement from the Trump administration. Of course, as you mentioned, Polo, this threat of further measures taken against countries cooperating economically with Iran, of course, will impact nations that do have close ties, but also nations that have close ties with the United States, particularly talking about, for example, the Gulf nations, the United Arab Emirates, and there is a concern there, given the immense pressure that we have seen being put on the Trump administration by the likes of Gulf nations, like the UAE, on the U.S., to try to come to some sort of mediated resolution to bring an end to the hostilities which have spread far beyond Iran's borders but have impacted Gulf nations, of course, domestically as well, and we have seen that impact on the ground firsthand.

But, of course, as you mentioned, Iran has maintained quite a defiant tone in response to this, describing this as a bluster from the Trump administration, but also suggesting that the Iranian regime has been preparing for such measures for some time now, and, of course, this is a country that is no stranger to U.S. sanctions. We have seen the impact of U.S. sanctions for decades now on Iran. It has managed to circumvent these sanctions somehow by cooperating with nations that are, of course, friendly to Iran, and that is exactly where the Trump administration will be hoping these sanctions will target and hurt Iran the most.

But, as you mentioned, we have heard from Iran's parliamentary speaker describing this as simply not effective in terms of its impact on those economic partners that they have long maintained. Take a listen to these remarks from Iran's finance minister.

(BEGIN VIDEO CLIP)

ALI MADANIZADEH, IRANIAN FINANCE MINISTER (through translator): They have made every effort during this period. They have tried to test the resolve of the Iranian people and the country's officials, and they have failed every time, apparently. They have now decided to try another failure. We have long been expecting these days, and we're well aware of the plans they had. The government has a two-year plan and is fully prepared and has been prepared for these developments.

(END VIDEO CLIP)

[04:05:27]

BASHIR: Now, this plan and response are suggested by the finance minister. He went on to say it would not be purely defensive, that Iran would defend itself against any further action taken by the United States, be that militarily or be that, of course, economically, as we are now learning, and has warned, of course, that the Iranian regime may continue to use the Strait of Hormuz as a bargaining chip in this response to the U.S. and the Trump administration, namely by cutting off the flow of oil supplies through the Strait of Hormuz, which will, of course, not only have an impact on the United States, but have a global impact, and that is something that has been a central focal point of all discussions and negotiations up to this point, and, of course, it is something that is being felt globally.

But we have also heard from Iran's security chief threatening not only to take these measures, but also saying that Iran is looking at also mediation options still, that there is still some option for dialogue. We know, of course, in the last few days that Pakistani mediators and officials have been meeting with their Iranian counterparts. They have described those talks and discussions as positive, as seeing some progress. Whether this latest threat from the Trump administration is a push to get all sides on the negotiating table to come to some sort of final resolution, or whether this will indeed wreak economic havoc on Iran, that, of course, all remains to be seen.

SANDOVAL: All right. Let's see if we can tackle some of those questions next. Nada Bashir, as always, grateful for your reporting live from London. Thank you.

Let's stay in London and go now to Negah Angha. She is a visiting fellow at King's College and also former senior advisor at the U.S. State Department and National Security Council. Negha, it's great to see you again. Thanks for coming back.

NEGAH ANGHA, VISITING FELLOW, KING'S COLLEGE LONDON: Good morning. Thanks for having me.

SANDOVAL: So how do the sweeping sanctions that were announced by the U.S. on Monday compare to previous economic pressure that we've seen applied against Iran? In your assessment, is what we heard from the U.S. Treasury Secretary on Monday any different?

ANGHA: Look, it was a significant announcement. I mean, the branding was a little bit more dramatic than what was actually announced. But what essentially Treasury has done, it's expanded its secondary sanctions exposure across what it had already sanctioned within the shipping, aviation, technology, gold and digital assets industry. And essentially what it's done is it's essentially given a warning to all of those institutions.

Essentially it's stopped short of its real test, which is penalizing the major third country financial institutions that enable Iranian trade. But essentially it's saying, look, you have what Bessent called a cure period. You have a time to unwind a lot of your efforts before Washington takes action. So it is actually tackling the secondary component. It is tightening those enforcements. It will have an impact on Iran's economic standing. So I would say this is, you know, partly coercion, partly deterrence. You know, essentially Washington's saying and warning institutions over the course of this week to really unwind their exposure right now. But, you know, whether this is D-Day or not is really going to matter whether the administration, you know, follows through with a lot of these institutions that genuinely matter. You know, will they go after Chinese banks or whatnot?

SANDOVAL: Yes. It certainly was a significant announcement, as you said. And what I found interesting also from the Treasury Secretary is that he did not name any specific countries. The first thing that comes to mind certainly is China as one of the big trading partners of Iran. When it comes to the Trump White House, do you consider this or do you expect this to be an administration that is willing to be tough on China when it comes to Iran?

ANGHA: Look, I mean, China is the hinge of this entire policy. I mean, I think Beijing is going to reject the sanctions sort of politically. But, you know, there is the Chinese financial institutions, and they're going to make their own commercial calculations, right? A large Chinese bank with substantial dollar exposure is going to face a very different exposure than those smaller refineries or intermediaries with a little American financial system.

[04:09:59]

You know, I think, you know, I don't see necessarily on China's end, I don't necessarily see them fully cooperating or fully being defiant. I think also the broader issue is the fact that, you know, President Xi is visiting the United States and is meeting with President Trump. I'm not sure Washington is willing to, you know, prioritize Iran over a lot of other agenda items it has with China.

But we're going to have to see sort of what transpires over the next couple of weeks. You know, to be quite frank, I think, you know, the U.S. is essentially using, you know, this sort of, you know, what Bessent called kind of this economic warfare as an alternative to any large-scale combat for now. And they're just going to keep at this sort of economic pressure for the next couple of months.

SANDOVAL: Negah, how does Iran, you think, stand to benefit from this latest stalemate in negotiations? We're, what, now six months into this conflict and really an uncertain road ahead, especially after this threat from the Treasury Department.

ANGHA: Yes, absolutely. I think the key thing is, you know, Iran doesn't necessarily have to retaliate economically with the United States. It can continue to put pressure on the Gulf States. It can continue to put pressure in the Strait of Hormuz. It can continue to threaten or, you know, detain shipping, et cetera. All of the tactics that they've been using until now. I mean, the reality is Tehran has learned how to operate under such economic pressure over the last 47 years.

So, of course, you know, the losers in all this is the Iranian citizens who are going to continue to feel the economic pressure and the impact. But the reality is, is that, you know, Tehran essentially does have a vote in whether or not it wants to respond and come to the negotiating table with the United States based on this economic pressure or if they're going to want to continue with the same tactics and put pressure on, say, the world's energy system.

I think the reality is, is that, you know, President Trump, you know, he himself still faces those very three kind of unattractive choices, whether it's, you know, escalating militarily, accepting some sort of compromise that leaves Iran with some sort of nuclear or maritime leverage or continue with this sort of attritional phase and hope, you know, whether it's Iran's economy deteriorates faster than the cost of rise for Washington.

But Iran is also gambling with the idea that they're going to continue and absorbing all of these, you know, financial or military impacts that they're receiving. So we'll have to see. It's unclear what the exit strategy is right now.

SANDOVAL: Not just absorbing the impact, as you know, Negah, but also trickling it down to Iranian civilians as well, likely to be the ones who will certainly suffer from this long term. Negah Angha, as always, thank you so much for your perspective. Have a good Tuesday.

ANGHA: Thanks for having me.

SANDOVAL: Of course.

Well, President Trump is escalating his trade war with Canada with promises of more economic pain. On Monday, he warned that if Canadian leaders do not, in his words, fall in line, then the consequences would be far worse. The U.S. President is now threatening to double tariffs on Canadian cars and car parts to 50 percent. And that's on top of the 50 percent tariffs that he placed on many Canadian goods over the weekend after negotiations fell apart.

Canada blaming the collapse on U.S. officials, demanding last minute and what they describe as unfair trade terms. Prime Minister Mark Carney now promising to match Trump's levies dollar for dollar. But he says his country is willing to return to trade talks, but only if the Trump administration has, "the right attitude."

(BEGIN VIDEO CLIP)

MARK CARNEY, CANADIAN PRIME MINISTER: There is a mutually beneficial deal possible here, but it has to be one that respects Canada's sovereignty, that respects our independence, that uses our complementary strengths to build something better, not tear apart for short term gain. That's the offer.

(END VIDEO CLIP)

SANDOVAL: Canadian leaders, including Ontario Premier Doug Ford, says that they're not bowing to Donald Trump's insults and personal attacks. The President called Canada, "One of the worst nations in the world to deal with." And he accused the country of ripping off the United States. Well, Ford did not mince words in his response. (BEGIN VIDEO CLIP)

DOUG FORD, ONTARIO, CANADA PREMIER: No, something I've been in this game a lot longer than he has. I got skin on me like an alligator. And you think an insult from him hurts me? Well, bring it on, buddy. I'm ready. Bring it on. You know something? I've dealt with guys like you my whole life. And guess what? You all become losers because you're a loser.

[04:15:08]

UNIDENTIFIED FEMALE: Are you worried when you hit back that way that you are making Ontarians and Canadians vulnerable because he is such an unpredictable figure?

FORD: We have two choices, Siobhan. We either roll back and let him take over our country, watch the steel sector bleed out, watch the auto sector bleed out, the auto part manufacturers bleed out, all the manufacturers bleed out. That's his game. But we aren't going to play his game.

(END VIDEO CLIP)

SANDOVAL: CNN's Matt Egan breaks down the latest tensions between the U.S. and Canada and what it could mean for both countries' economies.

MATT EGAN, CNN SENIOR REPORTER: The U.S. and Canada have long had one of the closest trading relationships in the world. But that relationship right now is clearly in crisis. And this is a trade war that could end up leaving consumers in both countries stuck in the crossfire if it leads to job loss and higher prices.

Now, the 50 percent tariffs that were imposed by the Trump administration in recent days, they are impacting a wide range of imports from Canada, including everything from milk and honey to dog leashes, gloves, smartphones, hockey sticks, fishing rods, Christmas ornaments, wigs, false beards. I could go on and on. Also, alcoholic beverages facing tariffs as well. That includes beer, wine, whiskey and vodka.

Now, these 50 percent tariffs, they are going to be paid first by businesses. And we know that these businesses, they often pass along at least some of the import taxes to all of us as consumers in the form of higher prices. Sometimes they're able to absorb at least some of the impact of the tariffs. However, it's going to be a lot harder to eat the tariffs right now because the Iran war has already lifted energy and transportation costs significantly for businesses.

Now, what's also telling is what was not tariffed, because my reading of the documents that have been put out from the administration in recent days, some of the items that the U.S. really relies on from Canada, they are not facing the 50 percent tariff. That includes oil, electricity, potash, maple syrup and fully finished automobiles. And that does seem to be an acknowledgement of the fact that if those items were tariffed, then you could see an even bigger hit to prices. Now, all told, we're talking about $20 billion of goods that are imported from Canada that are being tariffed. That's a lot. But it's also a very big trading relationship. So this makes up just about 5 percent of total imports from Canada. Now, Ottawa is clearly not taking this lying down. Canadian Prime Minister Mark Carney, he is vowing dollar for dollar retaliation.

Starting on September 8th, he's targeting a variety of U.S. sectors, including steel, dairy, appliances, agricultural equipment, paper and electronics. This is a big deal because Canada is the number one foreign buyer in many U.S. states. And the risk is if those American made goods are now facing steep Canadian tariffs, then there could be a loss of demand, a loss of demand that causes some U.S. employers to let go of American workers.

SANDOVAL: Matt Egan, thank you.

[04:18:24]

And there is so much more to come here on CNN Newsroom, including the U.K.'s plans to grant Ukraine some access to secret cruise missile technology. Still ahead, an update on what emerged during the British prime minister's visit to Kyiv.

(COMMERCIAL BREAK)

SANDOVAL: The city of Paris showing solidarity with Ukraine on its 35th Independence Day. Crowds gathered here around the Eiffel Tower on Monday night. Watching as blue and yellow lights illuminated that famous landmark. Many in attendance carried flags and flowers in support of that anniversary.

And Ukraine is also marking its own independence by deepening its alliance with the Coalition of the Willing. Leaders, including the British Prime Minister, gathered in Kyiv. Promising to boost Ukraine's air defenses and begin full-scale military exercises in October.

(BEGIN VIDEO CLIP)

ANDY BURNHAM, BRITISH PRIME MINISTER: I am determined that we will work together to deliver the support you need, Mr. President, stronger than ever. That means not just air defense, but stopping Russia launching their missiles in the first place. With sanctions that cut off their military supply chain.

(END VIDEO CLIP)

SANDOVAL: Prime Minister Burnham there. He also co-chaired the meeting in Kyiv as part of his first overseas visit since taking office last month. While there, he also announced that the U.K. is granting Ukraine access to classified storm shadow cruise missile technology. CNN's Nic Robertson reports on the deepening tensions between London and Moscow.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: This comes at a time, and we'll think back to the day, the 20th of July, not so long ago, when Andy Burnham was stepping over the threshold in Downing Street becoming Prime Minister. That was the day a Russian naval frigate in the English Channel fired warning shots near a pensioner couple who were sailing their yacht in the area. The very next day, the Russian ambassador to the U.K. withdrew from the country.

And there's been a sort of a drumbeat coming from Russian officials warning Britain of consequences of supporting Ukraine. And Burnham here on his first overseas trip, remembering his first international leader to host in London was President Zelenskyy of Ukraine, going to Ukraine to make very, very clear he's not going to be intimidated by Putin. He sees the way to bring the war to an end in Ukraine, to put economic pressure and military pressure on Russia.

These missile components that he's giving the blueprints for, they're designed to have longer range, highly accurate cruise missiles that can bust through bunkers, tear through ammunition depots, pushing Russia effectively further away from the front lines in the war of Ukraine.

[04:25:07]

So this is an effort combined with the Europeans. And that was the point of having this Coalition of the Willing conference call there while he was in Kyiv today as well.

SANDOVAL: Our thanks to Nic Robertson for that report.

Now to the mayor of a town in Haiti that says dozens of people have been killed in a gang raid near the capital of Port-au-Prince. The violence happened in Kenscoff, a town that has been frequented by gang attacks over the past few years. Well, the office of Haiti's prime minister condemned what it called a heinous attack and said security forces were on high alert. But residents say that they feel abandoned by their own government.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE (through translator): We live in humiliation. They have nothing for us. They do nothing for us. The blood of the population does not stop flowing in Kenscoff. The prime minister has to say something for the people in Kenscoff now. We cannot take it anymore.

(END VIDEO CLIP)

SANDOVAL: Well, Human Rights Watch now sounding the alarm over illegal armed groups in Colombia. A new report showing that the recruitment of children by illegal factions has quadrupled in recent years. It says guerrilla groups often take advantage of poverty, social exclusion, and lack of education. Some are even using social media to glorify life within the ranks, contacting children through chat forums and messaging services. Human Rights Watch says that it may not be too late to rescue the more than 1,500 minors recruited since 2021.

(BEGIN VIDEO CLIP) JUANITA GOEBERTUS, DIRECTOR, HUMAN RIGHTS WATCH AMERICAS (through translator): I think it is also a wake-up call about what those boys and those girls have already lost and what it will mean to try to give them back the ability to have a life project, to rebuild that process and that life project.

(END VIDEO CLIP)

SANDOVAL: And there is much more still ahead here on CNN Newsroom, including deported to one of the most dangerous countries in the world. CNN travels to the Central African Republic and speaks with several migrants who had never heard of the country before being sent there by the United States.

(COMMERCIAL BREAK)