Trump Squeezes Iran, China and Canada at Once as Approval Slides

The United States has launched sweeping sanctions targeting countries doing business with Iran while simultaneously wielding tariff pressure against China and Canada. The moves are read as an attempt by President Donald Trump, who is grappling with falling approval ratings, to shift the political narrative by broadening his external trade and security fronts.

U.S. Treasury Secretary Scott Bessent unveiled a new sanctions program called "Operation Economic Pariah" on the 24th, saying it would block every economic option available to the Iranian regime. Under the program, third-country companies and individuals doing business with Iran in digital assets, gold, aviation and shipping now face sanctions, and more than 60 entities and vessels that helped with nuclear and missile development, cyberattacks and crude oil exports were newly added to the list. Crude oil brokerage networks and shadow fleets in the United Arab Emirates, China, Hong Kong, Singapore and Switzerland were also caught in the net.

Toward China, an additional 7.5% tariff is under consideration on the grounds of overproduction, ahead of a summit next month. Combined with a previously imposed 12.5% tariff related to forced labor, the total rate would rise to 20%, a step some say is aimed at circumventing the Federal Supreme Court's February ruling that the reciprocal tariffs were unconstitutional. As for Canada, Trump has signaled that he will raise tariffs on autos and steel to 50% starting in 2027, a move that carries a strong flavor of retaliation against Canadian Prime Minister Mark Carney's warning of counter-tariffs.

Questions remain about the effectiveness, however. Analysts say sanctions on Iran will struggle to gain traction unless China, the largest importer of Iranian crude, cooperates, and that the tariff conflict with Canada could instead become a burden on the U.S. automakers and consumers who have relied on North American supply chains.

Building Nuclear-Powered Ships to Check China, and Why K-Shipbuilding Is Summoned

The United States is teaming up with a British nuclear shipping company to build a fleet of merchant ships powered by small modular reactors (SMRs), opening the prospect of new orders for South Korea's shipbuilding industry. The move is read as an effort by Washington, seeking to check a China that is expanding its dominance in shipbuilding, to draw in South Korea's construction capabilities.

British nuclear shipping company CorePower announced on the 24th that it had signed a public-private agreement with the Maritime Administration under the U.S. Department of Transportation to develop nuclear-powered merchant ships. CorePower is a platform company that links reactor technology firms with large shipyards to cover the entire process from hull construction to reactor installation and operation. Through the agreement, it aims to establish an expedited licensing framework and safety standards and to begin building ships in 2028. It also plans to build a specialized shipyard in the United States dedicated to reactor installation, sea trials and inspections.

The two countries are seeking to widen the shipbuilding technology gap with China, given that nuclear-powered vessels hold an edge in speed and cargo capacity. Maritime Administrator Stephen Carmel, in an interview with the Financial Times (FT), said in effect that beating China would require changing the terms of competition in America's favor.

In particular, CorePower Chief Executive Mikal Bøe proposed a cooperation framework in which South Korea and Japan would handle conventional vessel construction while the United States would build up capabilities in nuclear integration and life-cycle management. CorePower has already attracted $200 million in investment from Japan's Mitsui, Mitsubishi and Sumitomo, and is jointly developing a molten salt reactor — a marine fourth-generation SMR — with HD Korea Shipbuilding & Offshore Engineering. As a result, the possibility of benefits flowing to the HD Hyundai Group, already in a cooperative relationship, is being raised.

H-1B Visa Fee Hits 140 Million Won, Blocking Korean Talent Dispatch?

The U.S. Department of Homeland Security has decided to press ahead with a plan to raise the fee for professional (H-1B) visas to more than 140 million won — 20 to 50 times the previous level — despite a court's finding that the move was unlawful. The burden on South Korean companies, which frequently dispatch highly skilled workers along with their U.S. investments, is also expected to grow.

According to Reuters and The Wall Street Journal (WSJ) on the 24th, the Department of Homeland Security published a new rule in the Federal Register imposing a charge of $103,265 (about 143 million won) on H-1B visa applicants. That marks a sharp jump from the previous fee of $2,000 to $5,000, and the scope of the charge would expand from overseas applicants to those applying within the United States. Exceptions, however, may apply to visa renewals or to workers at hospitals and universities facing labor shortages.

The H-1B visa is issued through a lottery for only 85,000 professionals in science, technology, engineering and mathematics each year. Among those approved in fiscal 2024, Indian nationals made up the largest share at 71.0%, followed by China at 11.7%, the Philippines at 1.3%, Canada at 1.1% and South Korea at 1.0%, or 3,983 people. The Department of Homeland Security plans to generate $8.8 billion (about 12 trillion won) in revenue through the measure and use it as operating funds for agencies such as Immigration and Customs Enforcement. The move is read as an intent to highlight a hardline immigration policy ahead of the November midterm elections while also reducing the fiscal deficit.