Wealthion Macro Bites – U.S. Threatens to Expel Sanctions Violators From the Dollar System

Treasury Secretary Bessent announced a new round of Iranian sanctions on Monday (Operation Economic Outcasts) and warned all countries doing business with Iran to sever all financial ties or face U.S. retaliation.  Bessent did not lay out specific timelines and when asked why the U.S. was not immediately imposing (secondary) sanctions on Iran’s trading partners, Bessent said he wanted to give countries reasonable time to comply, “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.”

And in the latest example of U.S. dollar weaponization, Bessent also warned that any person, bank or vessel that helps the Iranian regime move funds or evade financial restrictions will face expulsion from U.S. dollar markets, “Any entity that facilitates money laundering on behalf of Iran will be removed from the U.S. dollar system. The clock just started ticking.”

Canada will announce today retaliatory tariffs on U.S. imports after President Trump on Monday urged Canadian leaders to “fall in line” or face consequences “far WORSE” than existing tariffs.  Canadian Prime Minister Carney responded, “An attitude at the negotiation table that Canada is a subsidiary of the United States…is not something we’re going to accept.”  Trump also threatened new 50% tariffs on Canadian vehicles, auto parts and steel, while Carney said U.S. trade demands showed Washington wanted to “destroy our major industries,” including autos, steel and aluminum.

Canada Finance Minister François-Philippe Champagne is expected this morning to share details of government supports for Canadian businesses affected by Trump’s new tariffs.  Carney said Canada needs to move away from matching U.S. tariffs dollar for dollar and instead use more targeted retaliation aimed at protecting Canadian workers and businesses.

The U.S. Defense Industrial Base Consortium (Dept. of Defense) published a project solicitation announcement focused on four strategic metals (indium, manganese, magnesium, and titanium) as the U.S. seeks to leverage phased screening and fiscal incentives to drive the localization of critical mineral production.  Eligible projects include the entire industrial chain, from upstream mining and processing and refining to downstream alloy manufacturing and recycling.  The project submission deadline is 9/17.