Good morning. The U.S. will apply additional scrutiny to imports of steel, lithium and copper under the law blocking imports made with forced labor in China, the Department of Homeland Security said, in the first major public action by the Trump administration using its authority under the Uyghur Forced Labor Prevention Act.

• What should companies do? The sectors, along with caustic soda and jujubes, have been added to a list of high-priority sectors for enforcement, which means U.S. businesses dealing with products in those sectors should pay extra attention to their supply chains, the federal Forced Labor Enforcement Task Force said Tuesday.
   
• Background: Under the UFLPA, which went into effect in 2022, the U.S. blocked most imports with ties to China’s Xinjiang region over concerns the Uyghur people and other minority groups are being exploited as forced laborers. China denies the allegations of human rights violations.
   
• Impact of the law: The law has forced businesses to pore over their supply chains for possible links to Xinjiang or risk having imports turned away at the border. From the law’s implementation in June 2022 through the end of July, U.S. Customs and Border Protection detained shipments worth $3.7 billion, according to CBP data.

U.S. pushes out D-Day for three Mexican institutions.

The U.S. has for a second time pushed out a deadline to cut off three Mexico-based financial institutions from the U.S. financial system over money-laundering concerns, Risk Journal's Richard Vanderford reports.

The U.S. Treasury Department on Tuesday said transmissions to and from the three institutions—commercial banks CIBanco and Intercam and brokerage firm Vector—would now be prohibited as of Oct. 20. FinCEN previously extended the deadline for its order to Sept. 4.

Background. The Treasury Department’s Financial Crimes Enforcement Network in June identified the three institutions as money-laundering conduits for the drug trade. FinCEN said banks and other institutions under its jurisdiction must stop transacting with the three.

• The Federal Reserve’s top banking supervisor is calling for a fundamental shift in the way regulators approach emerging technologies, signaling a more aggressive embrace of cryptocurrency, blockchain, and artificial intelligence in the traditional banking system.
   
• The U.S. director of national intelligence said the U.K. agreed to withdraw a request to access encrypted data from Apple’s U.S. users.
   
• Large companies across England and Wales will soon face the risk of a new type of white-collar infraction if they violate legislation requiring them to invest more heavily in their compliance programs, reports Risk Journal. 
   
• Italy’s Mediobanca said it received approval from the European Central Bank to pursue an acquisition of smaller peer Banca Generali.
   
• Alphabet’s Google has offered to change terms and conditions for developers using its Play Store in a bid to stave off a potential fine under European Union tech rules.
   
• For decades, the Federal Communications Commission has operated a strict cap on the number of households one company is allowed to reach through the television stations it owns. But the deal announced Tuesday that would see Nexstar Media Group Inc. acquire Tegna Inc.for $6.2 billion in cash would create a company that would blow past that cap — if the transaction is allowed by the FCC.

India and China mend ties amid Trump tariff threats.

In a visit to India this week, China’s top diplomat said the two Asian nations should deepen cooperation amid international threats to free trade, a sign that President Trump’s trade war could accelerate a thaw in the frosty relationship between Beijing and New Delhi.

Context. Both countries have faced hefty tariff threats from Trump over their trade policies, with India singled out in recent weeks for its large-scale purchases of Russian oil.

Oregon man accused of operating one of most powerful attack ‘botnets’ ever seen.

Federal prosecutors have charged a 22-year-old Oregon man with operating a vast network of hacked devices that has been blamed for knocking Elon Musk’s X social-media site offline earlier this year.

The network, known as Rapper Bot, was operated by Ethan Foltz of Eugene, Ore., the prosecutors said Tuesday. Foltz couldn’t immediately be reached for comment. He faces a maximum of 10 years in prison on a charge of abetting computer intrusions, the Justice Department said in a news release.

• President Trump signaled on Tuesday that the U.S. is prepared to use air power to support a European security force in Ukraine but ruled out deploying American ground troops.
   
• Hamas has accepted a temporary cease-fire proposal, instead of an offer that required them to release the hostages and hand the enclave to an international force in exchange for a permanent end to the war in Gaza, Arab mediators said.
   
• Union leaders for Air Canada’s flight attendants said members would return to work after a deal was reached to end a three-day strike that grounded hundreds of flights, affecting around 500,000 customers.

• SoftBank’s $2 billion investment in Intel offers the challenged chip maker a lifeline—and makes the Japanese conglomerate a private-sector champion in the Trump administration’s effort to revive a onetime American chip giant.
   
• A Republican-led House committee said it plans to publicly release some files it receives from the Justice Department related to Jeffrey Epstein, as controversy over the convicted sex offender continues to divide the GOP.
   
• The Trump administration plans to scrutinize social media for "anti-American ideologies" when deciding to grant visa or green-card applications.

Follow us on X at @WSJRisk. Send tips to our reporters Max Fillion at max.fillion@dowjones.com, Mengqi Sun at mengqi.sun@wsj.com and Richard Vanderford at richard.vanderford@wsj.com.

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