Trump Threatens Iran ‘Economic D-Day’; Treasury Bond Fix JPMorgan Warning

**SPEAKER_1** (0:02)
Bloomberg Audio Studios, Podcasts, Radio, News.

**Nathan Hager** (0:10)
Good morning, I'm Nathan Hager.

**Karen Moskow** (0:11)
And I'm Karen Moskow. Here are the stories we're following today.

**Nathan Hager** (0:15)
Karen, we begin with the latest effort to bring the Iran War to an end. President Trump has announced plans for an economic D-Day against Tehran, writing on social media, quote, this will be economic warfare and isolation on an unprecedented scale. The president says the plan could include more sanctions.

**Donald Trump** (0:32)
Well, we have things that we could sanction. We have very draconian sanctions and we'll see what happens. Right now, the strait is open.

**Nathan Hager** (0:41)
President Trump spoke to reporters at the White House. Bloomberg Middle East correspondent Abirabu Omar has more from Dubai.

**Abir Abul Omar** (0:48)
We don't know exactly what President Trump says when he says economic D-Day or when he says that Iran is going to face the most pain when it comes to these economic measures that are going to be taken against it. Because he didn't clarify much beyond that truth social post that he had about that promise, essentially. What we know for the time being is that it could be some kind of further sanctions. And again, Iranian oil is sanctioned. China, the biggest buyer of that oil, of course, if it is targeted, that could bring up the conversation about retaliatory tariffs or even bigger kind of tensions between China and the United States.

**Nathan Hager** (1:22)
Bloomberg's Abir Abul Omar reports President Trump is demanding all countries stop providing any economic lifeline to Iran. The president's plan got a boost yesterday when the United Arab Emirates cut its economic ties to Tehran.

**Karen Moskow** (1:34)
Nathan, while President Trump is putting pressure on Iran, he's looking to boost relations with North Korea.

**Donald Trump** (1:39)
I can't let Iran have a nuclear weapon. And I know Kim Jong Un very well, and he's going to be fine.

**Karen Moskow** (1:47)
And the president says he hopes to have a meeting with North Korea's leader this fall and that Kim has responded to that request. But Kim's powerful sister, Kim Yo-jong, says there's been no direct communication and the US quote, hostile policies against her country haven't changed. President Trump says North Korea has 57 nuclear weapons, but South Korea puts that number at anywhere from 80 to 120 And this morning, Japan's Yonhap News Agency reports North Korea fired around 10 short-range ballistic missiles. Japan's Coast Guard has confirmed at least one projectile fired outside its economic zone.

**Nathan Hager** (2:24)
And there are new developments this morning, Karen. In the war in Ukraine, at least 12 people were killed, dozens more wounded in a Russian missile attack targeting Kiev. Ukraine's military says Russia launched more than 40 ballistic and cruise missiles, as well as 168 drones overnight. Ukrainian President Volodymyr Zelensky says as long as his country does not have enough anti-ballistic defense, Russia will not consider peace seriously.

**Karen Moskow** (2:49)
Nathan, Canada and the US have moved closer to finalizing a trade agreement. Bloomberg News has learned the Trump administration is poised to reduce tariffs on automobiles imported from Canada to 15% from 25% as part of a broader deal that would see the US neighbor drop retaliatory trade measures. Here is US Trade Representative Jameson Greer.

**Jameson Greer** (3:09)
We feel confident that we've reached an agreement that will not only continue to protect American workers, American jobs, American supply chains, but really strengthen the more American economy.

**Karen Moskow** (3:20)
US Trade Representative Jameson Greer, the tariffs on about $20 billion worth of Canadian imports have been postponed until midnight Saturday.

**Nathan Hager** (3:28)
Now, Karen, a Bloomberg News exclusive, China is closing the gap with the United States in the race to develop artificial intelligence. A Bloomberg analysis suggests by several key metrics Chinese AI models are even taking the lead. Bloomberg Asia Tech Managing Editor Edwin Chan says it's about more than just lower costs.

**Edwin Chan** (3:47)
When it comes to the Kimi K3, as well as a plethora of other AI models that were released around the same time, including ZAI's GLM and Alibaba's Quinn, they demonstrated that the gap in performance also was rapidly closing. And I think that was what really triggered this year's debate in the US about whether Washington should do more to try and curb that ascent and I think it encouraged within China a domestic push to promote more open weight models, to push adoption rapidly while we have the momentum.

**Nathan Hager** (4:23)
In Bloomberg's Edwin Chan adds that the Trump administration could face backlash from American businesses in any attempt to rein in adoption of Chinese AI models.