New U.S. Sanctions Aim to Isolate Iran

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Pierre Bienaimé (0:18)

President Trump escalates the trade dispute with Canada. Plus, the US is launching a new campaign to squeeze Iran called Operation Economic Outcast.

Brian Schwartz (0:28)

There's been all these talks about whether there's a deal or there's no deal and back and forth on this. And clearly the administration is getting frustrated with the lack of concrete results. So they've landed on this being the option.

Pierre Bienaimé (0:39)

And the Trump administration proposes a new six-figure fee for H-1B visas. It's Monday, August 24th. I'm Pierre Bienaimé for The Wall Street Journal, filling in for Alex Osala. This is the PM Edition of What's News, the top headlines and business stories that moved the world today.

We begin today's show with a run of news out of the Trump administration. The White House is proposing a new fee of about $100,000 for H-1B visas. That replaces an earlier plan to charge $100,000 for the visa. That one was struck down by the courts. The H-1B is a visa for high-skill foreign professionals. It's the main way for foreigners to work in the US and it's used a lot by the tech and finance sectors to hire top international graduates from US universities.

There's a 30-day period to submit comments on the proposal before it can take effect.

In the latest escalation of the trade conflict that erupted over the weekend, President Trump says the US will impose 50% tariffs on cars and trucks, car parts, and steel from Canada starting in January. US tariffs on Canadian autos now stand at 25%, with discounts for the US content in cars. The threat came after Canadian Prime Minister Mark Carney said his government would respond to a separate set of Trump's tariffs, with tariffs on US products. Trump imposed those new tariffs this weekend after last-minute talks over a deal fell apart. They're effective on about 5% of Canadian exports to the US. Carney said Canada would only return to negotiations with the US if the Americans showed up with a different approach.

Mark Carney (2:15)

An attitude at the negotiation table that Canada is a subsidiary of the United States, the Canadian industry is going to be disadvantaged relative to American industry. That we're going to set up terms so that over time Canadian industry is going to face constant headwinds.

That's not something we're going to accept.

Pierre Bienaimé (2:41)

The US is launching a new campaign to isolate the Iranian regime. Treasury Secretary Scott Bessent says America will go after countries and companies that do business with Iran.

Scott Bessent (2:51)

The United States Treasury has begun Operation Economic Outcast.

Pierre Bienaimé (2:56)

Operation Economic Outcast involves sanctioning more than 60 entities, individuals and vessels across the world that enable the regime to get nuclear and missile technology, make money from oil and carry out cyber operations.

Scott Bessent (3:09)

Economic engagement of any kind with this murderous regime will expose those responsible to the full reach of American power.

Pierre Bienaimé (3:18)

Covering this story is our White House economic policy reporter, Brian Schwartz.

Brian Schwartz (3:23)

The military campaign has only done so much against Iran. There's been all these talks about whether there's a deal or there's no deal and back and forth on this, and clearly the administration is getting frustrated with the lack of concrete results. So they've landed on this being the option. Iran has been saying that this is not going to really impact them, at least what was announced today. But from the US side, they are quite confident, it seemed, that this was going to make a significant impact on Iran.

Pierre Bienaimé (3:48)

Brian says it's notable that one country in particular wasn't mentioned today.

Brian Schwartz (3:52)

We don't really have a timeline as to when he's going to move ahead with anything bigger against various countries, potentially China. China is the top trading partner with Iran, a period full stop. If you're China, you have to really ask yourself, will the US go ahead and do what it's kind of edging around to say it might do? It goes back to that relationship President Trump wants to have with China's government.

Pierre Bienaimé (4:17)

Meanwhile, the Trump administration has maintained that big volumes of oil are getting through the Strait of Hormuz to the tune of eight or nine million barrels of oil a day.

That's less than half of what used to transit those waters, but still a sizable amount. Independent tanker watchers, however, which count ships and oil output, say they're only seeing a range of between two and six million barrels a day. Wall Street Journal foreign correspondent Yorgy Kanchev says that divergence could come down to a few different factors.