Iran sanctions expansion, H-1B visas and Ukraine's Independence Day

Hi, I'm Tara Oaks in Liverpool, it's Tuesday, August 25th, today. Washington unveils a push for tighter economic pressure on Iran, warning countries to cut business ties. European leaders reiterate their support for Ukraine on the country's independence day, and why electric vehicle sales are soaring but not in the US. This is World News, bringing you everything you need to know from the front lines in 10 minutes, 7 days a week. Beginning today, the actions of Treasury and other agencies will tighten the news and block every potential source of revenue that funds the IRGC and the Evil Iranian regime. U.S. Treasury Secretary Scott Bessenth there unveiling an expansion of sanctions on Iran, targeting five sectors the U.S. says have helped keep the country's economy afloat despite years of sanctions. Digital assets, technology, gold, aviation, and shipping. The Trump administration is warning countries to cut business ties, or risk secondary sanctions on companies and entities that do business with Iran. No one should test our resolve. He didn't name any countries, or say when those penalties would take effect. The U.S. is slated for talks with China, the biggest buyer of Iranian oil next month. And as reporter David Lauder explains, it's unclear how far Washington is willing to go. So the Treasury has thus far refrained from using sort of what's the nuclear option, which is to sanction Chinese banks that have been eating transactions in oil or acquisition of technology that can be used in the soil and weapons production. It's unclear sort of how willing the administration is to go there, especially with President Trump and President Xi Jinping planning another summit meeting towards the end of September. Secretary Bessent said that by the end of this week there would be a major sanctions and announcements involving sanctions on a financial institution. But he also said that he did not want to sort of disrupt the global financial system. Iran, meanwhile, has threatened both a possible military response and further reduction in oil exports in retaliation. Economy Minister Ali Madanizadeh, saying Iran is fully prepared for the sanctions, dismissing them as a failure. Investors are assessing the impact of the expanded sanctions. But more, here's Mike Dolan, host of our system markets podcast, warning bid. So we finally got Bessent's plan, but there's very little market reaction to it today, mainly because something that was built in sort of apocalyptic language, it has to be said, as a detailed economic warfare against countries dealing with Iran, actually strangely lacking in any details. Now, it's more of a warning shot, so we still have to wait and see. He's giving countries time to prepare, and we do expect one major financial institution, he said, to be named by the end of the week. So we have to wait and see on that. Is it having an effect on Iran? Iran's currency has been weakening dramatically right through this war, but not directly in relation to this. Thanks, Mike. You can listen to Morning Baird wherever you get your podcasts. Canadian Prime Minister Mark Karmie says Canada is still open to a trade deal with the United States, but only if Washington comes to the table with what he calls the right attitude. But it has to be one that respects Canada's sovereignty, the respects are independence, that uses our complementary strengths to build something better. After negotiations collapsed last week, US President Donald Trump has threatened to raise tariffs on Canadian vehicles and auto parts to 50% from January 1st next year, threatening one of the world's most integrated auto supply chains, with US manufacturers heavily reliant on Canadian-made vehicles and parts. But what message does that send to the workers in Michigan and Ohio in Kentucky and Alabama, who rely on Canadian demand? As a Trump administration turns up the economic heat on Iran and Canada, it's also moving to lock in a steep fee on visas for skilled foreign workers, proposing a new rule to make permanent a fee of just over $100,000 a new HOMB visas. That fee was temporarily imposed last year, but a federal judge ruled it was illegal and blocked the government from collecting it. The administration is now appealing that ruling. Business groups say the fee undermines their ability to recruit top talent. The administration argues the visa program hurts American workers. HOMB applications found more than 25% last year compared to 2024. Meanwhile, the Supreme Court has handed Trump a win on one of his other plans, lifting a court order blocking an executive order, restricting the use of mail-in ballots ahead of November's midterms. But the fate of Trump's order remains uncertain, as a separate injunction blocking a key part of the plan remains in place. Diplomats from the UK and European Union joined Ukraine's President Bolodom Isolensky on Monday to mark the country's independence day. British Prime Minister Andy Burnham on his first foreign trip since taking office last month, ledging stronger military support for Ukraine. Meanwhile, Russia and Ukraine exchanged 10 people each in the latest prison swap. And while soldiers on the front line also marked the 35th anniversary of Ukraine's independence from the Soviet Union, for many, it was a day like any other in the grinding year. Police battalion officers in the Donetsk region shoot down a drone to the windows of a damaged residential building. Biberoptic cables draped the landscape, as air-raid sirens and thundering blasts echo in the distance. 127-year-old deputy commander, whose call sign is Aladdin, says independence day is not celebration, but rather a day of remembrance and reunification. Since it started the Iran War in February and the soaring gas prices that came with it, electric vehicle sales have soared across Europe. Last month, more than half of Renault's sales in the UK were EVs. Sales have been boosted by more affordable models from European and Chinese car makers, as well as government subsidies. Senior auto correspondent Nick Carey explains the recent shift. In 2022, when Russia invaded Ukraine, we had a more significant spike in fuel prices. But at that point, there weren't affordable EVs, there weren't subsidies, there weren't that many good models available. Charging infrastructure wasn't really in place, so people weren't ready for it. But I think now there are a lot more models available. The affordable model makes a big difference and charging infrastructure is much more ubiquitous than it was four years ago. So I think it's just a matter of right time, right place and the right products. But in the US, it's a different story. After the government killed a federal EV tax broke last year. The Trump administration has not been shy about the fact that it doesn't really believe in the transition to electric vehicles and has cut that subsidy and pushed back against charging infrastructure and a lot of the investments that were going into EVs. So all of us, there's just no incentive in the US to buy electric. You've seen the sales in the second quarter were up versus the first quarter, so there is more interest. But without the subsidy sales are still down 20% versus where they were a year ago. And while EVs are having a moment in Europe, Volkswagen's CEO is warning that Europe's largest auto maker is in crisis. In an internal memo, Oliver Blumer says the company's overhead costs are more than 30% higher in competitors. And the current profit margins aren't enough to fund new technologies or keep plants running long term. The German giant could cut another 50,000 jobs as it faces what could be its largest ever restructuring. Employees are criticising what they call disastrous communication from management as they worry about deeper cuts and plant closures. Target has apologised for a Halloween costume critic say evoked blackface and minstrel shows. The outfit sold as kids glows under blacklight circus clown Halloween costume prompted a backlash on social media and has now been pulled from shelves. Target saying in a statement that the costume is offensive and "we know we got this wrong". It's the latest optics head out for Target after a stretch of poor sales. 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