Economy

Advocates say new rules let Education Department to politically punish groups working on immigration, transgender care.

The United States Department of Education has finalised new rules that could bar nonprofits deemed to have undertaken work with a “substantial illegal purpose” from a special student loan forgiveness programme.

Those rules, finalised on Thursday, appear to single out certain organisations that do work in areas that President Donald Trump politically opposes, including immigration advocacy and transgender rights.

Under the new rules, set to take effect in July 2026, the education secretary has the power to exclude groups if they engage in activities like the “chemical castration” of children, using a politically charged term for gender-affirming healthcare, including puberty-delaying medication.

It also allows the education secretary to bar groups accused of supporting undocumented immigration or “terrorist” organisations.

The Trump administration has said its decisions “will not be made based on the political views or policy preferences of the organization”.

But advocates fear the move is the administration’s latest effort to target left-leaning and liberal organisations.

Trump has already threatened to crack down on several liberal nonprofits, which the White House has broadly accused of being part of “domestic terror networks”.

Thursday’s rules concern the Public Service Loan Forgiveness programme, created by an act of Congress in 2007.

In an effort to direct more graduates into public service jobs, the programme promises to cancel federal student loans for government employees and many nonprofit workers after they have made 10 years of payments.

Workers in the public sector, including teachers, medical professionals, firefighters, social service professionals and lawyers, are among those who can benefit.

In a statement, the Trump administration defended the updated rules, calling them a necessary bulwark to protect taxpayer funds.

The programme “was meant to support Americans who dedicate their careers to public service – not to subsidize organizations that violate the law, whether by harboring illegal immigrants or performing prohibited medical procedures that attempt to transition children away from their biological sex”, said Education Undersecretary Nicholas Kent.

Critics, however, have denounced the administration for using false claims of “terrorism” or criminal behaviour to silence opposing views and restrict civil liberties.

Michael Lukens, executive director of the Amica Center for Immigrant Rights, said the new rules weaponised loan forgiveness.

Lukens explained that many of the lawyers, social workers and paralegals who work at his organisation handle cases to stop deportations and other immigration litigation.

They count on public service loan forgiveness to take jobs that pay significantly less than the private sector, he said.

“All of a sudden, that’s going away,” Lukens told The Associated Press news agency. “The younger generation, I hope, will be able to wait this out for the next couple of years to see if it gets better, but if it doesn’t, we’re going to see a lot of people leave the field to go and work in a for-profit space.”

Organisations have raised concerns over the education secretary’s broad power to determine if a group should be barred. Short of a legal finding, the secretary can decide based on a “preponderance of the evidence” whether an employer is in violation.

The National Council of Nonprofits was among the associations criticising the change.

It said the rules would allow future administrations from any political party to change eligibility rules “based on their own priorities or ideology”.

New York City, United States – Sitting in a room of hundreds of Jewish New Yorkers, Zohran Mamdani received cheers and applause at the Erev Rosh Hashanah service of progressive Brooklyn synagogue Kolot Chayeinu on a Monday evening last month.

This was one of the Democratic mayoral nominee’s recent appearances at synagogues and events over the Jewish High Holy Days, and a visible step towards navigating a politically charged line: increasingly engaging the largest concentration of Jewish people in any metropolitan area in the United States, and holding firmly anti-Zionist views before the general election on November 4.

Historically, Mamdani has held a strong stance on the Israeli–Palestinian conflict, even founding a chapter of Students for Justice in Palestine during his undergraduate days at Bowdoin College. A little more than a decade later, as Mamdani’s name began to gain recognition, his longstanding unapologetically pro-Palestinian stance became a rallying force behind his platform as well as a point of criticism from opponents.

Mamdani received endorsements and canvassing support from progressive Jewish organisations like Bend the Arc, Jewish Voice for Peace (JVP) Action and Jews for Racial and Economic Justice (JFREJ), organisations that have each confronted Israel’s role in the war in Gaza through statements on their websites.

Simultaneously, he has sustained attacks from far-right activists, Jewish Democrats on Capitol Hill and Zionist activist groups for his firm support for the Boycott, Divestment and Sanctions (BDS) movement and refusal to call Israel a Jewish state.

But despite mixed responses, the polls are clear: Mamdani is leading among Jewish voters overall in a multiway race.

‘No group is a monolith’

In July, a publicly released research poll by Zenith Research found that Mamdani led with a 17-point lead among Jews and by Jewish subgroups. In the scenario of Mayor Eric Adams dropping from the race, Mamdani still dominated, 43-33.

“Me being Jewish, I understand that there are many cleavages within the Jewish community,” said Adam Carlson, founding partner of Zenith Research. “As a pollster, one of my big things is that no group is a monolith, and if you have a large enough sample size, you can break it out and glean some nuances … what we found was a better-than-expected result for Mamdani among Jewish voters in New York City.”

Beth Miller, political director of the political advocacy organisation Jewish Voice for Peace (JVP) Action and a member of Kolot Chayeinu, shared what it was like to witness a fraction of this support at the Erev Rosh Hashanah that Mamdani attended last month.

“He was basically swarmed at the end because people were so excited that he was there,” said Miller. “And that’s not because he’s a celebrity, it’s because people are excited about what we can all build together if he becomes mayor.”

JVP Action, a day-one endorser of Mamdani, represents one organisation among a growing group of Jewish supporters for Mamdani, like JFREJ, a group that has played a part in spearheading canvassing efforts among the diverse Jewish communities of NYC.

JFREJ’s electoral arm, The Jewish Vote, has supported Mamdani since he was first running for state assembly in 2020. Since then, JFREJ members and Mamdani have worked, canvassed and protested together.

Alicia Singham Goodwin, political director of JFREJ, has personally been arrested at protests alongside Mamdani.

“That’s the kind of thing that gives me faith in his commitments,” Goodwin told Al Jazeera regarding the arrests. “He’s willing to take on big risks for the things that matter.”

JFREJ has played a large role in spreading Mamdani’s message by knocking on doors and phone banking Jewish voters.

“We care about what our neighbours are worried about, excited and hopeful for — what they need for their families, and we’re ready to meet them there with our analysis of how the city needs to move to get to affordable housing, universal childcare, or to combat the real rise in anti-Semitism and hate violence,” said Goodwin. “We believe that Zohran is the strongest candidate for that, as well as for all the other issues we talk about.”

Courting the Jewish vote

While there is no doubt that the canvassing army of 50,000 volunteers has served Mamdani well, the mayoral hopeful has also been strategic in his pursuit of the Jewish vote.

“He has definitely modulated his rhetoric and has made a concerted effort to reach out to liberal congregations,” said Val Vinokur, professor of literary studies and director of the minor in Jewish culture at The New School. “This has made him more palatable to some progressive Zionists, much to the outrage of his anti-Zionist supporters.”

One example of Mamdani’s subdued rhetoric includes his response to continued backlash over the phrase “globalise the intifada”.

The phrase, used by pro-Palestinian activists, sparked tension between Mamdani and parts of the Jewish community. To some, it represents a call for solidarity with Palestinian resistance, while others view it as anti-Semitic and violent.

Mamdani resisted rejecting the phrase before the June election, but The New York Times reported that since then, he said he would “discourage” its use.

On the second anniversary of the Gaza war, Mamdani posted a four-paragraph statement on X where he acknowledged the atrocities of Hamas’s attack, and then called Israel’s response genocide and ended on a note of commitment to human rights.

“It got s*** on from all sides,” said Carlson. “He made nobody happy, which in my mind, is kinda the correct way to go about it … Sometimes, pleasing nobody is the job of the mayor, and I think he’s learning that now. It’s like a microcosm of what he’s about to face as mayor, assuming he wins. Sometimes, you have to piss off everybody a little bit for compromises.”

Anti-Zionism and anti-Semitism

As Carlson’s Zenith Research poll reflected, the NYC Jewish community has a wide diversity of opinion about politics and positions on Israel and Palestine. The community most clearly differentiates along lines of age, and secular versus conservative practice, but as Jewish support for Mamdani increases, it is evident that these divides are not always so distinct.

“While it’s true that there are major trends that younger American Jews are more progressive and sympathetic to Palestinians, it’s also true that for as long as Zionism has existed, there have been anti-Zionist Jews,” said Miller. “I learned a lot from elders who were in their 70s, 80s and 90s who have been anti-Zionist since Israel was created because they never felt that what they wanted or needed was an ethnostate to represent them.”

Alternatively, Zionist groups like Betar worldwide are troubled by these trends within the Jewish community of New York.

“It’s heartbreaking to see members of the Jewish community support Zohran Mamdani, who openly opposes Zionism — the national liberation movement of the Jewish people,” said Oren Magnezy, spokesperson of Betar worldwide.

Jonathan Boyarin, American anthropologist and Mann professor of modern Jewish studies at Cornell University, wondered whether anti-Zionism has done much to help Palestinians, but distinguished the line that Mamdani is walking.

“It’s been said that there are two kinds of people who confuse anti-Zionism and anti-Semitism: Zionists and anti-Semites. I don’t think Zohran Mamdani belongs in either of those categories,” said Boyarin.

‘New political moment’

Ultimately, experts like Vinokur predict Mamdani will win, barring a scenario in which Republican nominee Curtis Sliwa drops out. Regardless, Vinokur expects Mamdani to secure the Jewish vote.

“He will win the Jewish vote despite and not because of his anti-Zionist background,” said Vinokur. “Younger Jewish voters are overwhelmingly liberal, have been galvanised by the dynamism of his campaign, and ultimately want to make the city a more livable, affordable, and equitable place.”

Mamdani’s message and campaign were celebrated at the JFREJ annual gala fundraiser, the Mazals. NYC Comptroller Brad Lander and Mamdani were honoured together during a night filled with music, ritual and tradition with more than 1,000 attendees.

“I would say it was probably the largest single gathering of Jews for Zohran,” said Goodwin. “They cement this new political moment that we’re in, where people like JFREJ members, movements like ours, are not fringe or aspirational, but we are popular among a majority of New Yorkers.”

The United States Federal Reserve has cut its benchmark interest rate by 25 basis points to 3.75 – 4.00 percent, amid signs of a slowing labour market and continued pressure on consumer prices.

The cut, announced on Wednesday, marks the US central bank’s second rate cut this year.

“Job gains have slowed this year, and the unemployment rate has edged up but remained low through August; more recent indicators are consistent with these developments. Inflation has moved up since earlier in the year and remains somewhat elevated,” the Fed said in a statement.

“Uncertainty about the economic outlook remains elevated.”

The cuts were largely in line with expectations. Earlier on Wednesday, CME Fed Watch — which tracks the likelihood of rate cuts — said there was a 97.8 percent probability of rate cuts.

After the September cut, economists had largely been expecting two additional rate cuts for the rest of this year. Goldman Sachs, Citigroup, HSBC, and Morgan Stanley, among others, forecast one more 25-basis-point reduction by year’s end following Wednesday’s cut. Bank of America Global Research is the only major firm that is not anticipating another 25-basis-point cut in 2025.

“The Fed has a challenging line to walk; lower interest rates to support labour markets and growth, or raise them to tamp down inflation. For now, they are taking a cautious approach tilted a bit towards the growth concerns,” Michael Klein, professor of international economic affairs at The Fletcher School at Tufts University in Massachusetts, told Al Jazeera.

Despite forecasts, Federal reserve chairman Jerome Powell isn’t necessarily inevitable.

“We haven’t made a decision about December,” Powell told reporters in a press conference.

“We remain well-positioned to respond in a timely way to potential economic developments.”

Government shutdown implications

The cuts come as economic data becomes increasingly scarce amid the ongoing government shutdown, now in its 29th day as of Wednesday, making it the second-longest in US history, behind the 35-day shutdown during the first presidency of Donald Trump in late 2018 and early 2019.

Because of the shutdown, the Department of Labor did not release the September jobs report, which was scheduled for October 3. The only major government economic data released this month was the Consumer Price Index (CPI), which tracks the cost of goods and services and is a key measure of inflation. The CPI rose 0.3 percent in September on a month-over-month basis to an inflation rate of 3 percent.

That data was released because the Social Security Administration required it to calculate cost-of-living adjustments for 2026. As a result, Social Security beneficiaries will receive a 2.8 percent increase in payments compared to 2025.

The shutdown, however, could have a bigger impact on next month’s central bank decision as the Labor Department is currently unable to compile the data needed for its November reports.

However, amid the limited government data, private trackers are showing a slowdown.

“We are not going to be able to have the detailed feel of things, but I think if there were a significant or material change in the economy one way or another, I think we would pick that up,” Powell said.

Consumer confidence lags

Consumer confidence fell to a six-month low, according to The Conference Board’s report that was released on Tuesday.

The data showed that lower-income earners – those making less than $75,000 a year – are less confident about the economy as fears of job scarcity loom. This comes only days after several large corporations announced waves of layoffs.

On Wednesday, Paramount cut 2,000 people from its workforce. On Tuesday, Amazon cut 14,000 corporate jobs. Last week, big box retailer Target cut 1,800 jobs. This, as furloughs and layoffs weigh on government workers. The US government is the nation’s largest employer.

Those making more than $200,000 annually remain fairly confident and are leading consumer spending that is keeping the economy afloat, according to The Conference Board.

Pressures both on consumer spending and the labour market are largely driven by tariffs weighing on consumers and businesses.

US markets are ticking up on the rate cut. The Nasdaq is up 0.5, the S&P 500 is up 0.1, and the Dow Jones Industrial Average is up by 0.26 as of 2pm in New York (18:00 GMT).

Gyeongju, South Korea – As US President Donald Trump and Chinese leader Xi Jinping prepare to meet for the first time since 2019, Washington and Beijing appear poised to reach a deal to lower the temperature of their fierce rivalry.

But while Trump and Xi are widely expected to de-escalate US-China tensions in South Korea on Thursday, expectations are modest for how far any agreement will go to resolve the myriad points of contention between the world’s two largest economies.

Many details of the expected deal that have been flagged in advance relate to avoiding future escalation, rather than rolling back the trade war that Trump launched during his first term and has dramatically expanded since returning to office this year.

Some of the proposed measures involve issues that have only arisen within the last few weeks, including China’s plan to impose strict export controls on rare earths from December 1.

Whatever Trump and Xi agree to on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, there is little doubt that Washington and Beijing will continue to butt heads as they jockey for influence in a rapidly shifting international order, according to analysts.

“I have modest expectations for this meeting,” said Deborah Elms, head of trade policy at the Hinrich Foundation in Singapore.

“I think, no matter what happens this week, we haven’t seen the end of economic tensions, tariff threats, export controls and restrictions, and the use of unusual levers like digital rules,” Elms told Al Jazeera.

Contours of a deal

While the exact parameters of any deal are still to be determined by Trump and Xi, the contours of an agreement have emerged in recent days.

US Secretary of the Treasury Scott Bessent said in media interviews this week that he expected China to defer its restrictions on rare earths and that Trump’s threatened 100 percent tariff on Chinese goods was “effectively off the table”.

Bessent said he also anticipated that the Chinese side would agree to increase purchases of US-grown soya beans, enhance cooperation with the US to halt the flow of chemicals used to manufacture fentanyl, and sign off on a finalised TikTok deal.

While heading off a further spiralling in US-China ties, a deal along these lines would leave intact a wide array of tariffs, sanctions and export controls that hinder trade and business between the sides.

Since Washington and Beijing reached a partial truce in their tit-for-tat tariff salvoes in May, the average US duty on Chinese goods has stood at more than 55 percent, while China’s average levy on US products has hovered at about 32 percent.

Washington has blacklisted hundreds of Chinese firms deemed to pose national security risks, and prohibited the export of advanced chips and key manufacturing equipment related to AI.

China has, in turn, added dozens of US companies to its “unreliable entity” list, launched antitrust investigations into Nvidia and Qualcomm, and restricted exports of more than a dozen rare earths and metallic elements, including gallium and dysprosium.

US-China trade has declined sharply since Trump re-entered the White House.

China’s exports to the US fell 27 percent in September, the sixth straight month of decline, even as outbound shipments rose overall amid expanding trade with Southeast Asia, Latin America, Europe and Africa.

China’s imports of US goods declined 16 percent, continuing a downward trend since April.

“The structural contradictions between China and the United States have not been resolved,” said Wang Wen, dean of the Chongyang Institute for Financial Studies at Renmin University of China in Beijing, predicting continuing friction and “even worse” relations between the superpowers in the future.

“Most importantly, China’s strength is increasing and will surpass that of the United States in the future,” Wang told Al Jazeera.

‘De-escalation unlikely’

Shan Guo, a partner with Shanghai-based Hutong Research, said he expects the “bulk” of the deal between Trump and Xi to be about avoiding escalation. “A fundamental de-escalation is unlikely given the political environment in the US,” Guo told Al Jazeera.

But with the US having no alternative to Chinese rare earths and minerals in the near-term, Washington and Beijing could put aside their differences for longer than past trade truces, Guo said.

“This means reduced downside risks in US-China relations for at least a year, or perhaps even longer,” he said.

Dennis Wilder, a professor at Georgetown University who worked on China at the CIA and the White House’s National Security Council, said that while he is optimistic the summit will produce “positive tactical results”, it will not mark the end of the trade war.

“A comprehensive trade deal is still not available,” Wilder told Al Jazeera.

“Bessent and his Chinese counterpart will continue negotiating in hopes of a more lasting agreement if and when President Trump visits China next year.”

Trump and Xi’s go-to language on the US-China relationship itself points to the gulf between the sides.

While Trump often complains about the US being “ripped off” by China, Xi has repeatedly called for their relations to be defined by “mutual respect” and “win-win cooperation”.

“The United States should treat China in a way that China considers respectful,” said Wang of Renmin University.

“They have to respect China, and if they don’t, then the United States will receive an equal response until they become able to respect others,” he added.

More air traffic controllers are calling in sick, often to work another job to pay for groceries and medicines.

United States air traffic controllers will miss their paycheques because of the ongoing government shutdown, raising concerns that mounting financial stress could take a toll on the already understaffed employees who guide thousands of flights each day.

Paycheques were due on Tuesday.

Flight delays are becoming more common across the country as more controllers call out sick because the Federal Aviation Administration (FAA) was already so short on controllers before the shutdown.

Transportation Secretary Sean Duffy and National Air Traffic Controllers Association President Nick Daniels have continued to emphasise the pressure that controllers are feeling. They say the problems are likely to only get worse the longer the shutdown continues.

Not only are controllers worrying about how to pay for their mortgages and groceries, but Daniels said some of them are also grappling with how to pay for the medicine needed to keep their children alive.

Duffy said he heard from one controller who had to tell his daughter she couldn’t join the travelling volleyball team she had earned a spot on because he couldn’t afford the cost during the shutdown.

“Air traffic controllers have to have 100 percent of focus 100 percent of the time,” Daniels said Tuesday at a news conference alongside Duffy at LaGuardia Airport in New York City. “And I’m watching air traffic controllers going to work. I’m getting the stories. They’re worried about paying for medicine for their daughter. I got a message from a controller that said, ‘I’m running out of money. And if she doesn’t get the medicine she needs, she dies. That’s the end.’”

The FAA restricts the number of flights landing and taking off at an airport anytime there is a shortage of controllers to ensure safety. Most of the time, that has meant delays — sometimes hours long — at airports like New Jersey’s Newark Liberty International Airport or Burbank Airport in California. But over the weekend, Los Angeles International Airport actually had to stop all flights for nearly two hours.

Controllers are planning to assemble outside at least 17 airports nationwide on Tuesday to hand out leaflets urging an end to the shutdown as soon as possible.

Money worries

The number of controllers calling in sick has increased during the shutdown – both because of their frustration with the situation and because controllers need the time off to work second jobs instead of continuing to work six days a week, as many of them routinely do. Duffy has said that controllers could be fired if they abuse their sick time, but the vast majority of them have continued to show up for work every day.

Air traffic controller Joe Segretto, who works at a regional radar facility that directs planes in and out of airports in the New York area, said morale is suffering as controllers worry more about money.

“The pressure is real,” Segretto said. “We have people trying to keep these planes safe. We have trainees — who are trying to learn a new job that is very fast-paced, very stressful, very complex — now having to worry about how they’re going to pay bills.”

Duffy said the shutdown is also making it harder for the government to reduce the longstanding shortage of about 3,000 controllers. He said that some students have dropped out of the air traffic controller academy in Oklahoma City, and younger controllers who are still training to do the job might abandon the career because they can’t afford to go without pay.

“This shutdown is making it harder for me to accomplish those goals,” Duffy said.

The longer the 27-day shutdown continues, the more pressure will continue to build on the US Congress to reach an agreement to reopen the government. During the 35-day shutdown in President Donald Trump’s first term, the disruptions to flights across the country contributed to the end of that disruption. But so far, Democrats and Republicans have shown little sign of reaching a deal to fund the government.

The deal removes a major constraint on raising capital for OpenAI, the maker of ChatGPT, and values the firm at $500bn.

Microsoft and OpenAI have reached a deal to allow the ChatGPT maker to restructure itself into a public-benefit corporation, valuing OpenAI at $500bn and giving it more freedom in its business operations.

The deal, unveiled on Tuesday, removes a major constraint on raising capital for OpenAI that has existed since 2019.

At the time, it had signed an agreement with Microsoft that gave the tech giant rights over much of OpenAI’s work in exchange for costly cloud computing services needed to carry it out. As its ChatGPT service exploded in popularity, those limitations had become a notable source of tension between the two companies.

Microsoft will still hold a stake of about $135bn, or 27 percent, in OpenAI Group PBC, which will be controlled by the OpenAI Foundation, a nonprofit, the companies said.

Microsoft, based in Redmond, Washington in the United States, has invested $13.8bn in OpenAI, with Tuesday’s deal implying that the firm had generated a return of nearly 10 times its investment.

Shares of Microsoft rose 2.5 percent, sending its market value above $4 trillion again.

The deal keeps the two firms intertwined until at least 2032, with a massive cloud computing contract and with Microsoft retaining some rights to OpenAI products and artificial intelligence (AI) models until then – even if OpenAI reaches artificial general intelligence (AGI), the point at which AI systems can match a well-educated human adult.

Simplified corporate structure

With more than 700 million weekly users as of September, ChatGPT has exploded in popularity to become the face of AI for many consumers after OpenAI’s founding as a nonprofit AI safety group.

As the company grew, the Microsoft deal constrained OpenAI’s ability to raise funds from outside investors and secure computing contracts as the crush of ChatGPT users and its research into new models caused its computing needs to skyrocket.

“OpenAI has completed its recapitalization, simplifying its corporate structure,” Bret Taylor, the OpenAI Foundation’s board chair, said in a blog post. “The nonprofit remains in control of the for-profit, and now has a direct path to major resources before AGI arrives.”

Microsoft’s previous 2019 agreement had many provisions that rested on when OpenAI reached that point, and the new deal requires an independent panel to verify OpenAI’s claims it has reached AGI.

“OpenAI still faces ongoing scrutiny around transparency, data usage, and safety oversight. But overall, this structure should provide a clearer path forward for innovation and accountability,” said Adam Sarhan, CEO of 50 Park Investments.

Gil Luria, head of technology research at DA Davidson, said the deal “resolves the longstanding issue of OpenAI being organized as a not-for-profit [organisation] and settles the ownership rights of the technology vis-a-vis Microsoft. The new structure should provide more clarity on OpenAI’s investment path, thus facilitating further fundraising.”

Microsoft also said that it has secured a deal with OpenAI where the ChatGPT maker will purchase $250bn of Microsoft Azure cloud computing services. In exchange, Microsoft will no longer have a right of first refusal to provide computing services to OpenAI.

Microsoft also said that it will not have any rights to hardware produced by OpenAI. In March, OpenAI bought longtime Apple design chief Jony Ive’s startup io Products in a $6.5bn deal.

Officials signal that trade deal is close as Trump and Xi prepare to meet for the first time since 2019.

Kuala Lumpur, Malaysia – The United States and China have hailed the outcome of trade talks in Malaysia, raising expectations that Donald Trump and Xi Jinping will seal a deal to de-escalate their trade war at their first meeting since 2019.

US and Chinese officials on Sunday said the sides had made significant progress towards a deal as they wrapped a weekend of negotiations on the sidelines of the ASEAN summit in Kuala Lumpur.

Trump and Xi are set to meet on Thursday on the sidelines of the APEC summit in Gyeongju, South Korea, marking their first face-to-face talks since the US president returned to the White House and embarked on a radical shake-up of global trade.

US Secretary of the Treasury Scott Bessent told reporters in Kuala Lumpur that the sides had come up with a “framework” for Trump and Xi to discuss in South Korea.

Bessent said in a subsequent interview with NBC News that he expected the sides to reach a deal that would defer China’s threatened export controls on rare earths and avoid a 100 percent tariff that Trump has threatened to impose on Chinese goods.

Bessent also said in an interview with ABC News that Beijing had agreed to make “substantial” purchases of US agricultural products, which the treasury secretary said would make US soya bean farmers “feel very good”.

Chinese Vice Premier He Lifeng, Beijing’s top trade negotiator, said the sides had reached “a basic consensus” on “arrangements to address each side’s concerns”.

He said they agreed to “finalise specific details” and “proceed with domestic approval processes”, according to a readout from China’s Ministry of Commerce.

Asian stock markets surged on Monday on hopes of easing US-China tensions.

Japan’s Nikkei 225 and South Korea’s KOSPI both hit record highs, with the benchmark indexes up about 2.1 percent and 2.3 percent, respectively, shortly after midday, local time.

Hong Kong’s Hang Seng also saw strong gains, rising about 0.85 percent.

After attending the ASEAN summit, Trump on Monday departed for Japan, where he will meet newly sworn-in Japanese Prime Minister Sanae Takaichi.

The US president is scheduled to then travel on to South Korea on Wednesday.

While Trump has imposed significant tariffs on almost all US trade partners, he has threatened to hit China with higher levies than anywhere else.

Countries have been anxiously anticipating a breakthrough in the tensions, hoping Washington and Beijing can avoid a full-blown trade war that could do catastrophic damage to the global economy.

In a major escalation in US-China tensions earlier this month, Beijing announced that it would require companies everywhere to acquire a licence to export rare-earth magnets and some semiconductor materials that contain even trace amounts of minerals sourced from China or are produced using Chinese technology.

The proposed rules, which are set to take effect on December 1, have raised fears of substantial disruption to global supply chains.

Rare earths, a group of 17 minerals including holmium, cerium and dysprosium, are critical to the manufacture of countless high-tech products, including smartphones, electric cars and fighter jets.

Trump responded to Beijing’s move by threatening to impose a 100 percent tariff on Chinese goods from November 1.

Analysts have cast the tit-for-tat moves as efforts by the Chinese and US sides to gain leverage in their negotiations ahead of the Trump-Xi summit.

US president says Ontario government’s anti-tariff ad featuring Ronald Reagan needed to be taken down ‘immediately’.

Donald Trump has announced an additional 10-percent tariff on Canada, as the United States president continues to slam his country’s northern neighbour over a contentious anti-tariff advertisement featuring former President Ronald Reagan.

In a social media post on Saturday, Trump said the ad “was to be taken down, IMMEDIATELY, but [Canada] let it run last night during the World Series, knowing that it was a FRAUD”.

“Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10% over and above what they are paying now,” he said.

The advertisement, produced by the Canadian province of Ontario, features a 1980s speech by Reagan in which the former Republican leader had warned against the ramifications that high tariffs on foreign imports could have on the US economy.

The US government suspended trade talks with Canada this week over the ad, accusing the Ontario provincial government of misrepresenting Reagan’s position and seeking to influence a looming US Supreme Court ruling on Trump’s tariffs policy.

On Friday, Ontario Premier Doug Ford announced that, after consulting with Canadian Prime Minister Mark Carney, the province would “pause its US advertising campaign effective Monday so that trade talks can resume”.

“Our intention was always to initiate a conversation about the kind of economy that Americans want to build and the impact of tariffs on workers and businesses. We’ve achieved our goal, having reached US audiences at the highest levels,” Ford wrote on X.

“I’ve directed my team to keep putting our message in front of Americans over the weekend so that we can air our commercial during the first two World Series games.”

The Canadian government did not immediately comment on Trump’s announcement of additional tariffs on Saturday.

It is unclear whether the ad will run during the second World Series game between the Toronto Blue Jays and the Los Angeles Dodgers, which is set for 8pm local time in Toronto on Saturday (00:00 GMT Sunday).

Since taking office in January, Trump has unveiled sweeping tariffs against a number of countries including Canada, straining relations with the US’s longtime ally.

More to come…

If the United States federal government shutdown continues, millions of low-income Americans could lose access to a monthly benefit that pays for food.

About 42 million people receive money through the Supplemental Nutrition Assistance Program (SNAP), sometimes called food stamps. The Department of Agriculture told states in an October 10 letter that if the shutdown continues, the programme would run out of money to pay for benefits in November.

President Donald Trump’s Republican administration is blaming the Democrats with Agriculture Secretary Brooke Rollins repeating a false healthcare talking point on October 16 on X: “Democrats are putting free health care for illegal aliens and their political agenda ahead of food security for American families. Shameful.”

The government shutdown stems from disagreements between Democrats – who want Congress, as part of approving federal funding, to extend expiring enhanced subsidies for the Affordable Care Act (ACA), through which uninsured Americans can buy health insurance – and Republicans, who want to extend federal funding first before negotiating over whether or how to extend the ACA subsidies.

SNAP is a federal programme operated by state agencies. Participants receive an average individual monthly benefit of about $190 or $356 per household. Recipients may use the benefits to buy fruit, vegetables, meat, dairy products, bread and other foods. The majority of SNAP households live in poverty.

Lawmakers and social media users have made several statements about SNAP with varying degrees of accuracy about the shutdown and the Republican tax and spending law that Trump signed in July. Here’s a closer look:

Social media posts say food stamps will disappear on November 1

Many social media posts have said food stamps are going away as soon as November 1.

“Let that sink in – just in time for the cold season and the month of giving thanks,” one Instagram post said.

That could happen for millions of people. But it might not happen for all of them, and it could happen throughout the month of November because the monthly date when people receive their benefits varies by state.

The Trump administration could use SNAP’s contingency fund to pay for nearly two-thirds of a full month of benefits, or it could transfer other Agriculture Department funds, according to the Center on Budget and Policy Priorities, a liberal think tank. The administration has said it has found funding to continue the Women, Infants and Children programme, another food programme for low-income families.

According to an Agriculture Department funding lapse plan, SNAP “shall continue operations during a lapse in appropriations, subject to the availability of funding”.

An Agriculture Department letter told states to hold off on steps that would lead to people receiving their November benefits. Federal regulations require that reductions be made in a way that higher-income recipients lose more benefits than the lowest-income recipients.

We asked administration officials for more detail but received no response to our questions.

Many state officials – including in Illinois, New York, North Carolina, Texas and Wisconsin – said that if the shutdown continues, participants might not or will not receive benefits in November. A spokesperson for the Florida Department of Children and Families told PolitiFact that if the shutdown continues into November, benefits will not be issued.

California Governor Gavin Newsom said on Wednesday that he will deploy the National Guard and California Volunteers, a state agency, to support food banks and provide $80m in state money.

“Empty cupboards and stomachs are not abstract outcomes,” Wisconsin Governor Tony Evers told Rollins in a Wednesday letter. “They are the very real and near consequences of the dysfunction in Washington. These are also consequences you can prevent today.”

Meanwhile, food banks across the country have taken a hit from other Trump administration policies. ProPublica reported on October 3 that earlier in the year, the administration cut $500m in deliveries through the Emergency Food Assistance Program, which provides food to state distribution agencies.

So what have key lawmakers said on this issue and how true are their claims?

‘We are not cutting’ SNAP

– Mike Johnson, speaker of the US House of Representatives, on the TV programme Face the Nation on May 25

This is false.

Johnson spoke after the House passed a Republican-backed bill known at the time as the One Big Beautiful Bill, which included many of Trump’s policy priorities.

The Congressional Budget Office (CBO), the nonpartisan number-crunching arm of Congress, estimated in May that 3.2 million fewer people per month on average would receive SNAP benefits over the next nine years based on the bill’s changes to work requirements and restrictions on states’ ability to waive the work requirements in areas with high unemployment.

A more recent August CBO analysis estimated the changes would reduce participation in SNAP by roughly 2.4 million people.

‘Nearly 25 cents of every $1 spent via SNAP goes to farmers and ranchers’

– Wisconsin state Representative Francesca Hong in a June 12 X post

This is true.

In a series of X posts, Hong said it wouldn’t be only families receiving food aid that would be hurt by the legislation.

A chart published this year by the Agriculture Department’s Economic Research Service showed that in 2023, farm establishments made 24.3 cents of every dollar spent on food at home, including at grocery stores and supermarkets.

‘About 20 percent of households with veterans rely upon’ SNAP

– House Democratic leader Hakeem Jeffries at a May 8 news conference

This is mostly false.

An April 2 study found that 8 percent of veterans rely on SNAP benefits. No state had a share higher than 14 percent. Studies with data from a few years earlier showed rates from 4.9 percent to 6.6 percent.

Louis Jacobson, Staff Writer Loreben Tuquero and Milwaukee Journal Sentinel reporter Madeline Heim contributed to this article.

South Africa, Nigeria, Mozambique, Burkina Faso removed from Financial Action Task Force’s financial crimes list.

A global money-laundering watchdog has taken South Africa, Nigeria, Mozambique and Burkina Faso off its “grey list” of countries subjected to increased monitoring.

The Financial Action Task Force’s (FATF), a financial crimes watchdog based in France, on Friday said it was removing the four countries after “successful on-site visits” that showed “positive progress” in addressing shortcomings within agreed timeframes.

The FATF maintains “grey” and “black” lists for countries it has identified as not meeting its standards. It considers grey list countries to be those with “strategic deficiencies” in their anti-money laundering regimes, but which are nonetheless working with the organisation to address them.

FATF President Elisa de Anda Madrazo called the removal of the four “a positive story for the continent of Africa”.

South Africa revamped its tools to detect money laundering and terrorist financing, she said, while Nigeria created better coordination between agencies, Mozambique increased its financial intelligence sharing, and Burkina Faso improved its oversight of financial institutions.

Nigeria and South Africa were added to the list in 2023, preceded by Mozambique in 2022 and Burkina Faso in 2021.

Officials from the four countries – which will no longer be subject to increased monitoring by the organisation – welcomed the decision.

Nigerian President Bola Ahmed Tinubu said the delisting marked a “major milestone in Nigeria’s journey towards economic reform, institutional integrity and global credibility”, while the country’s Financial Intelligence Unit separately said it had “worked resolutely through a 19-point action plan” to demonstrate its commitment to improvements.

Edward Kieswetter, commissioner of the South African Revenue Service, also cheered the update but said, “Removing the designation of grey listing is not a finish line but a milestone on a long-term journey toward building a robust and resilient financial ecosystem.”

Leaders in Mozambique and Burkina Faso did not immediately comment, though Mozambican officials had signalled for several months that they were optimistic about being removed.

In July, Finance Minister Carla Louveira said Mozambique was “not simply working to get off the grey list, but working so that in the fight against money laundering and terrorist financing, when the FATF makes its assessment in 2030, it will find a completely different situation from the one detected in 2021,” MZ News reported at the time.

More than 200 countries around the world have pledged to follow the standards of the FATF, which reviews their efforts to combat money laundering, as well as terrorist and weapons financing.

The FATF’s black or “high-risk” list consists of Iran, Myanmar and North Korea.

The probe comes as the US government seeks additional leverage against Beijing amid escalating trade tensions.

The United States has launched an investigation into whether China is out of compliance with a 2020 trade deal they struck together, as trade tensions ratchet up between the world’s two largest economies.

US Trade Representative Jamieson Greer announced the investigation on Friday, as President Donald Trump travels to Asia to meet with his Chinese counterpart, Xi Jinping. China denies that it has failed to abide by the deal.

“China has scrupulously fulfilled its obligations in the Phase One Economic and Trade Agreement,” a spokesperson for the Chinese embassy in Washington said in a social media post.

The probe into unfair trade practices could grant President Trump greater authority to impose more tariffs on China, which he has hit with massive trade duties during his second term in office.

“The administration seems to be looking for new sources of leverage to use against Beijing, while adding another pressure point to get China to buy more US soybeans as well as other goods,” Wendy Cutler, a former US trade negotiator who is now vice president at the Asia Society Policy Institute, told The Associated Press news agency.

The “Phase One” deal came at the end of Trump’s first term in office in 2020, when the US imposed a series of tariffs on China in the name of bringing greater “balance” to their commercial exchange.

In that agreement, Beijing agreed to buy more US agricultural and manufacturing goods.

A Federal Register notice (PDF) from the Office of the US Trade Representative alleges that China has not followed up on that promise or others related to intellectual property protections, forced technology transfers or financial services.

September, for instance, marked the first month since 2018 that China imported no soya beans from US farmers.

“The initiation of this investigation underscores the Trump Administration’s resolve to hold China to its Phase One Agreement commitments, protect American farmers, ranchers, workers, and innovators, and establish a more reciprocal trade relationship with China for the benefit of the American people,” Greer said in a statement.

A new round of US-China trade talks is set to take place on Saturday, and discussions will focus on China’s restrictions on the export of rare earth metals, essential for many US tech products.

Last year, Reliance Industries Ltd signed a deal with Russian major Rosneft to import nearly 500,000 barrels per day.

India’s top importer of Russian oil, the conglomerate Reliance Industries Ltd, says it will abide by Western sanctions, ending several days of speculation about how the company will manage new measures targeting Russia’s two largest oil companies.

Reliance “will be adapting the refinery operations to meet the compliance requirements”, a company spokesperson said in a statement on Friday, while maintaining its relationships with suppliers.

“Whenever there is any guidance from the Indian Government in this respect, as always, we will be complying fully,” the statement added.

On Wednesday, the United States Treasury Office of Foreign Assets Control (OFAC) designated Russian majors Rosneft and Lukoil for the first time as President Donald Trump becomes increasingly frustrated with Russia’s unremitting war on Ukraine.

US Secretary of the Treasury Scott Bessent said the move was the result of Russian President Vladimir Putin’s “refusal to end this senseless war” and encouraged allies to adhere to the new sanctions.

The following day, the European Union adopted its 19th package of measures against Russia, which includes a full transaction ban on Rosneft. The EU has previously said that, starting January 21, it will not receive fuel imports from refineries that received or processed Russian oil 60 days prior to shipping.

Reliance, chaired by billionaire businessman Mukesh Ambani, operates the world’s biggest refining complex in western Gujarat. The company has purchased roughly half of the 1.7-1.8 million barrels per day (bpd) of discounted Russian crude shipped to India, the news agency Press Trust of India reported this week.

In 2024, Reliance signed a 10-year deal with Rosneft to buy nearly 500,000 bpd, Reuters reported at the time. It also buys Russian oil from intermediaries.

Reliance did not offer details on how, exactly, it planned to navigate the sanctions – nor the fate of the 2024 Rosneft agreement – but emphasised it would comply with European import requirements.

“Reliance is confident its time-tested, diversified crude sourcing strategy will continue to ensure stability and reliability in its refinery operations for meeting the domestic and export requirements, including to Europe,” the company spokesperson said.

The sanctions also arrive as India navigates the fallout from Trump’s tariffs on Indian exports, which rose to 50 percent starting in August as a penalty for importing Russian oil. China and India are the world’s largest importers of Russian crude.

Trump has claimed multiple times over the past month that India has agreed to stop buying Russian oil as part of a broader trade deal, an assertion the Indian government has not confirmed.

Neither India’s Ministry of External Affairs nor oil ministries have responded since the sanctions were announced on Wednesday.

Oct. 24 (UPI) — Japan’s new Prime Minister Sanae Takaichi delivered her first policy speech to the parliament Friday, focusing on economic security and boosting defense spending.

Takaichi, 64, became prime minister on Tuesday and is the first woman to lead Japan. She is the leader of the Liberal Democratic Party, which is conservative and nationalist.

She plans to pursue aggressive fiscal spending to revitalize Japan’s economy and boost defense spending to address security challenges, she said in her speech Friday, Kyodo reported.

“Wage growth outpacing inflation is necessary, but simply leaving the burden to business will only make it harder for them,” The Japan Times reported Takaichi said. She said her government will soon create an economic stimulus package backed by a supplementary budget.

Takaichi said her administration will tackle rising costs of living as a “top priority,” and said she will raise defense spending to 2% of the gross domestic product by March, two years ahead of target.

“I will turn (people’s) anxieties about the present and future into hope and build a strong economy,” Takaichi said. “We need to proactively promote the fundamental strengthening of our nation’s defense capabilities” to deal with “various changes in the security environment,” Takaichi said.

She said she will abolish the provisional gasoline tax rate, which was a campaign promise, to help reduce inflation. The prime minister said she would do it during the current session, which goes through Dec. 17. That tax has been in place since 1974.

Lifting the nontaxable income level from $6,700 to $10,473 this year is another plan she put forward to boost the economy.

Addressing another campaign promise, she said the government will begin discussions on creating a second capital to be a backup in a crisis. This was a pet project of the JIP, the far right political party with which she and the LDP formed a coalition. Called the Osaka Metropolis Plan, its goal is to reduce the concentration of power in Tokyo, Japan Wire said.

Kuala Lumpur, Malaysia – When US President Donald Trump lands in Malaysia for Southeast Asia’s headline summit this weekend, he will be delivering Malaysian Prime Minister Anwar Ibrahim a diplomatic coup.

US presidents rarely visit Malaysia, a multiracial nation of 35 million people sandwiched between Thailand and Singapore, which for decades has maintained a policy of not picking sides in rivalries between great powers.

Trump is just the third US leader to travel to the Southeast Asian country, which is hosting a Sunday-to-Tuesday summit for the Association of Southeast Asian Nations (ASEAN), following visits by former US Presidents Barack Obama and Lyndon B Johnson.

After skipping ASEAN summits in 2018, 2019 and 2020, Trump, whose disdain for multilateralism is renowned, will be attending the gathering of Southeast Asian nations for just the second time.

The US president will be joined by a host of high-profile leaders from non-ASEAN countries, including Japanese Prime Minister Sanae Takaichi, Brazilian President Luiz Inacio Lula da Silva, and South African President Cyril Ramaphosa.

Opting not to attend are Indian Prime Minister Narendra Modi, Russian President Vladimir Putin, and Chinese President Xi Jinping, who Trump is expected to meet in South Korea at next week’s Asia-Pacific Economic Cooperation (APEC) summit.

Trump’s visit, in many ways, is emblematic of the delicate balancing act that Anwar’s government has sought to maintain as Malaysia navigates the headwinds of the heated rivalry between the US and China.

Malaysia is deeply entwined with both the US and Chinese economies.

The US, which has a large footprint in Malaysia’s tech and oil and gas industries, was the Southeast Asian country’s top foreign investor and third-biggest trading partner in 2024.

China, a major purchaser of Malaysian electronics and palm oil, the same year took the top spot in trade and was third for investment.

But Malaysia’s efforts to walk a fine line between Washington and Beijing have become increasingly fraught as the superpowers roll out tit-for-tat tariffs and export controls while butting heads over regional flashpoints such as Taiwan and the South China Sea.

“Optimally, Malaysia wants to productively engage both China and the US on a variety of issues,” said Thomas Daniel, an analyst at the Institute of Strategic & International Studies in Kuala Lumpur.

“It is in our interest,” Daniel told Al Jazeera.

Anwar has cast Trump’s visit as a chance to bolster economic ties, champion regional peace and stability, and elevate ASEAN’s standing on the international stage.

Anwar has also pledged to use the rare opportunity for face time with Trump to constructively raise points of difference between Washington and Kuala Lumpur, particularly the Palestinian cause.

“The through-line is autonomy: avoid entanglement, maximise options, and extract benefits from both poles without becoming anyone’s proxy,” Awang Azman Awang Pawi, a professor at the University of Malaya, told Al Jazeera.

During Trump’s visit, US tariffs on Malaysia, currently set at 19 percent, and China’s mooted export controls on rare earths are expected to be high on the agenda.

For Malaysia, the priority is preserving “rules-based” trade that allows for countries to deepen economic ties despite their political differences, said Mohd Ramlan Mohd Arshad, a senior lecturer at the MARA University of Technology in Shah Alam, near Kuala Lumpur.

A prolonged economic cold war between the US and China is the “worst thing” that could happen to Malaysia, Arshad told Al Jazeera.

Trump, who has made no secret of his ambitions for the Nobel Peace Prize, is also expected to witness the signing of a peace accord between Thailand and Cambodia, which engaged in a brief border conflict in July that left at least 38 people dead.

For Anwar, who has led a multiracial coalition of parties with diverse and competing interests since 2022, the balancing act also involves political considerations at home.

US support for Israel’s war in Gaza has been a bone of contention in Muslim-majority Malaysia, where the plight of Palestinians has inspired frequent public protests.

In the run-up to the summit, critics have demanded that Anwar rescind Trump’s invitation over his role in supporting the war, which a United Nations commission of inquiry last month determined to constitute genocide.

“A person like Trump, no matter how powerful, should not be welcomed in Malaysia,” former Prime Minister Mahathir Mohamad, Anwar’s former mentor-turned-nemesis, said in a video message last month.

Defending the invitation, Anwar has stressed his view of diplomacy as “practical work” for advancing his country’s interests “in an imperfect world”.

“It demands balance, discipline, and the courage to stay the course even when the ground shifts beneath us,” he told a conference in Kuala Lumpur earlier this month.

As a small power, Malaysia has always put pragmatism at the centre of its foreign policy, said Sharifah Munirah Alatas, an international relations lecturer at the National University of Malaysia.

“Anwar and Malaysia cannot afford to do otherwise,” Alatas told Al Jazeera.

“And given the current highly unpredictable Sino-American tension induced by the Trump 2.0 era, ASEAN will remain actively non-aligned, without taking sides.”

Awang Azman, the University of Malaya professor, said that while Trump’s visit will elevate Malaysia and ASEAN’s profile by itself, the true test of the summit’s success will be tangible outcomes on issues such as the Thailand-Cambodia conflict and trade.

“It’s not just a photo op if a ceasefire accord and concrete trade language land on paper,” Awang Azman said.

“If either track stalls, the visit is still symbolically significant – given the rarity of US presidential trips to Malaysia – but the narrative will revert to optics over outcomes.”

Petro, however, did acknowledge that a disruption in the two countries’ military cooperation could have serious consequences.

Colombia’s President Gustavo Petro has indicated that a suspension of aid from the United States would mean little to his country, but that changes to military funding could have an effect.

“What happens if they take away aid? In my opinion, nothing,” Petro told journalists on Thursday, adding that aid funding often moved through US agencies and employed Americans.

But a cut to military cooperation would matter, he added.

“Now, in military aid, we would have some problems,” Petro said, adding that the loss of US helicopters would have the gravest impact.

US President Donald Trump had threatened over the weekend to raise tariffs on Colombia and said on Wednesday that all funding to the country has been halted.

Colombia was once among the largest recipients of US aid in the Western Hemisphere, but the flow of money was suddenly curtailed this year by the shuttering of USAID, the government’s humanitarian assistance arm. Military cooperation has continued.

The Trump administration has already “decertified” Colombia’s efforts to fight drug trafficking, paving the way for potential further cuts, but some US military personnel remain in Colombia, and the two countries continue to share intelligence.

Petro has objected to the US military’s strikes against vessels in the Caribbean, which have killed dozens of people and inflamed tensions in the region. Many legal experts and human rights activists have also condemned the actions.

Trump has responded by calling Petro an “illegal drug leader” and a “bad guy” – language Petro’s government says is offensive.

Petro has recalled his government’s ambassador from Washington, DC, but he nevertheless met with the US’s charge d’affaires in Bogota late on Sunday.

Although Trump has not announced any additional tariffs on top of the 10-percent rate already assessed on Colombian goods, he said on Wednesday he may take serious action against the country.

Petro said Trump is unlikely to put tariffs on oil and coal exports, which represent 60 percent of Colombia’s exports to the US, while the effect of tariffs on other industries could be mitigated by seeking alternative markets.

An increase in tariffs would flip a long-established US policy stance that free trade can make legitimate exports more attractive than drug trafficking, and analysts say more duties could eventually bolster drug trafficking.

Although his government has struggled to take control of major hubs for rebel and criminal activity, Petro said it has made record seizures of 2,800 metric tonnes of cocaine in three years, partly through increased efforts at Pacific ports where container ships are used for smuggling.

He also repeated an accusation that Trump’s actions are intended to boost the far right in Colombia in next year’s legislative and presidential elections.

EU leaders had hoped to agree on a plan to fund a loan of 140 billion euros to bolster Ukraine.

Leaders across the European Union have agreed to help Ukraine fund its fight against Russia’s invasion, but stopped short of approving a plan that would draw from frozen Russian assets to do so, after Belgium raised objections.

EU leaders met in Brussels on Thursday to discuss Ukraine’s “pressing financial needs” for the next two years. Many leaders had hoped the talks would clear the way for a so-called “reparation loan”, which would use frozen Russian assets held by the Belgian financial institution Euroclear to fund a loan of 140 billion euros ($163.3bn) for Ukraine.

The EU froze about 200 billion euros ($232.4bn) of Russian central bank assets after the country launched its full-scale invasion of Ukraine in 2022. In order to use the assets to fund Ukraine’s war effort, the European Commission, the EU’s executive, has floated a complex financial manoeuvre that involves the EU borrowing matured funds from Euroclear.

That money would then, in turn, be loaned to Ukraine, on the understanding that Kyiv would only repay the loan if Russia pays reparations.

The scheme would be “fully guaranteed” by the EU’s 27 member states – who would have to ensure repayment themselves to Euroclear if they eventually decided Russia could reclaim the assets without paying reparations. Belgium, the home of Euroclear, objected to this plan on Thursday, with Prime Minister Bart De Wever calling its legality into question.

Russia has described the idea as an illegal seizure of property and warned of retaliation.

Following Thursday’s political wrangling, a text approved by all the leaders – except Hungary’s Prime Minister Viktor Orban – was watered down from previous drafts to call for “options for financial support based on an assessment of Ukraine’s financing needs.” Those options will be presented to European leaders at their next summit in December.

“Russia’s assets should remain immobilised until Russia ceases its war of aggression against Ukraine and compensates it for the damage caused by its war,” the declaration added.

Earlier, Ukrainian President Volodymyr Zelenskyy, a guest at the summit, had urged a quick passage of the plan for the loan.

“Anyone who delays the decision on the full use of frozen Russian assets is not only limiting our defence, but also slowing down the EU’s own progress,” he told the EU leaders, saying Kyiv would use a significant part of the funds to buy European weapons.

Earlier, the EU adopted a new round of sweeping sanctions against Russian energy exports on Thursday, as well, banning liquefied natural gas imports.

The move followed United States President Donald Trump’s announcement on Wednesday that Russia’s two biggest oil companies would face US sanctions.

Russian President Vladimir Putin on Thursday struck a defiant tone over the sanctions, saying they were an “unfriendly act”, and that Russia would not bend under pressure.

For decades, China powered spectacular growth through exports, infrastructure and cheap credit. But that old model is running out of steam, even as it hits a record trade surplus with the world this year.

The property sector is drowning in debt, confidence is fading, and consumers are holding back. Now, Beijing faces its toughest test yet: how to keep the world’s second-largest economy growing without relying much on the engines that once drove it.

A new five-year plan promises “high-quality growth” built on technology and self-reliance. But trade tensions with the United States could make the climb even steeper.

Washington has announced new sanctions against Russia’s two largest oil companies, Rosneft and Lukoil, in an effort to pressure Moscow to agree to a peace deal in Ukraine. This marks the first time the current Trump administration has imposed direct sanctions on Russia.

Speaking alongside Nato Secretary-General Mark Rutte in the Oval Office on Wednesday, US President Donald Trump said he hoped the sanctions would not need to be in place for long, but expressed growing frustration with stalled truce negotiations.

“Every time I speak to Vladimir [Putin], I have good conversations and then they don’t go anywhere. They just don’t go anywhere,” Trump said, shortly after a planned in-person meeting with his Russian counterpart, Vladimir Putin, in Budapest was cancelled.

Trump’s move is designed to cut off vital oil revenues, which help fund Russia’s ongoing war efforts. Earlier on Wednesday, Russia unleashed a new bombardment on Ukraine’s capital, Kyiv, killing at least seven people, including children.

US Treasury Secretary Scott Bessent said the new sanctions were necessary because of “Putin’s refusal to end this senseless war”. He said that Rosneft and Lukoil fund the Kremlin’s “war machine”.

How have Rosneft and Lukoil been sanctioned?

The new measures will freeze assets owned by Rosneft and Lukoil in the US, and bar US entities from engaging in business with them. Thirty subsidiaries owned by Rosneft and Lukoil have also been sanctioned.

Rosneft, which is controlled by the Kremlin, is Russia’s second-largest company in terms of revenue, behind natural gas giant Gazprom. Lukoil is Russia’s third-largest company and its biggest non-state enterprise.

Between them, the two groups export 3.1 million barrels of oil per day, or 70 percent of Russia’s overseas crude oil sales. Rosneft alone is responsible for nearly half of Russia’s oil production, which in all makes up 6 percent of global output.

In recent years, both companies have been hit by rolling European sanctions and reduced oil prices. In September, Rosneft reported a 68 percent year-on-year drop in net income for the first half of 2025. Lukoil posted an almost 27 percent fall in profits for 2024.

Meanwhile, last week, the United Kingdom unveiled sanctions on the two oil majors. Elsewhere, the European Union looks set to announce its 19th package of penalties on Moscow later today, including a ban on imports of Russian liquefied natural gas.

How much impact will these sanctions have?

In 2022, Russian oil groups (including Rosneft and Lukoil) were able to offset some of the effects of sanctions by pivoting exports from Europe to Asia, and also using a “shadow fleet” of hard-to-detect tankers with no ties to Western financial or insurance groups.

China and India quickly replaced the EU as Russia’s biggest oil consumers. Last year, China imported a record 109 million tonnes of Russian crude, representing almost 20 percent of its total energy imports. India imported 88 million tonnes of Russian oil in 2024.

In both cases, these are orders of magnitude higher than before 2022, when Western countries started to tighten their sanctions regime on Russia. At the end of 2021, China imported roughly 79.6 million tonnes of Russian crude. India imported just 0.42 million tonnes.

Trump has repeatedly urged Beijing and New Delhi to halt Russian energy purchases. In August, he levied an additional 25 percent trade tariff on India because of its continued purchase of discounted Russian oil. He has so far demurred from a similar move against China.

However, Trump’s new sanctions are likely to place pressure on foreign financial groups which do business with Rosneft and Lukoil, including the banking intermediaries which facilitate sales of Russian oil in China and India.

“Engaging in certain transactions involving the persons designated today may risk the imposition of secondary sanctions on participating foreign financial institutions,” the US Treasury Department’s press release on Wednesday’s sanctions says.

As a result, the new restrictions may force buyers to shift to alternative suppliers or pay higher prices. Though India and China may not be the direct targets of these latest restrictions, their oil supply chains and trading costs are likely to come under increased pressure.

“The big thing here is the secondary sanctions,” Felipe Pohlmann Gonzaga, a Switzerland-based commodity trader, told Al Jazeera. “Any bank that facilitates Russian oil sales and with exposure to the US financial system could be subject.”

However, he added, “I don’t think this will be the driver in ending the war, as Russia will continue selling oil. There are always people out there willing to take the risk to beat sanctions.

“These latest restrictions will make Chinese and Indian players more reluctant to buy Russian oil – many won’t want to lose access to the American financial system. [But] it won’t stop it completely.”

According to Bloomberg, several senior refinery executives in India – who asked not to be named due to the sensitivity of the issue – said the restrictions would make it impossible for oil purchases to continue.

On Wednesday, Trump said that he would raise concerns about China’s continued purchases of Russian oil during his talk with President Xi Jinping at the 2025 Asia-Pacific Economic Cooperation summit in South Korea next week.

Have oil prices been affected?

Oil prices rallied after Trump announced US sanctions. Brent – the international crude oil benchmark – rose nearly 4 percent to $65 a barrel on Thursday. The US Benchmark, West Texas Intermediate, jumped more than 5 percent to nearly $60 per barrel.

Pohlmann Gonzaga, however, predicted that the “market will correct from this 5 percent over-jump. You have to recall that sentiment in energy markets is still negative due to the gloomy [global] economic backdrop.”

The figure amounts to roughly $111,000 of debt for every person in the US, think tank says.

The United States national debt has topped $38 trillion, as the gap between government spending and revenues in the world’s largest economy expands at a rapid pace.

The US Department of the Treasury included the staggering figure in its latest report on the nation’s finances, with the debt standing at $38,019,813 as of Tuesday.

The figure amounts to roughly $111,000 of debt for every person in the US, and is equivalent to the value of the economies of China, India, Japan, Germany and the United Kingdom combined, according to the Peter G Peterson Foundation, a Washington, DC-based think tank.

The milestone comes a little over two months after debt in the US surpassed $37 trillion in mid-August. The debt stood at $36 trillion in November 2024, and $35 trillion that July.

Michael A Peterson, CEO of the Peter G Peterson Foundation, said US lawmakers were failing to live up to their “basic fiscal duties”.

“Adding trillion after trillion to the debt and budgeting-by-crisis is no way for a great nation like America to run its finances,” Peterson said in a statement.

“Instead of letting the debt clock tick higher and higher, lawmakers should take advantage of the many responsible reforms that would put our nation on a stronger path for the future.”

In May, Moody’s ratings downgraded the US government’s credit rating from Aaa to Aa1, citing the failure of successive administrations to “reverse the trend of large annual fiscal deficits and growing interest costs”.

The move followed similar downgrades by rating agencies Fitch and Standard & Poor’s in 2011 and 2023, respectively.

While there is debate among economists about how much debt the US can take on before triggering a financial crisis, there is widespread agreement that the current trajectory is unsustainable.

In a 2023 analysis, economists at the Penn Wharton Budget Model estimated that financial markets would not tolerate US debt levels above 200 percent of gross domestic product (GDP).

The nonpartisan Congressional Budget Office has estimated that the debt could reach 200 percent of GDP by 2047, in part due to sweeping tax cuts included in US President Donald Trump’s One Big Beautiful Bill Act.