Trump

Trump’s $4.9-trillion tax plan targets Medicaid to offset costs

House Republicans proposed sweeping tax breaks Monday in President Trump’s big priority bill, tallying at least $4.9 trillion in costs so far, partly paid for with cuts to Medicaid, food stamps and green energy programs used by millions of Americans.

The House Ways and Means Committee named its package “THE ONE, BIG, BEAUTIFUL BILL” in all capital letters, a nod to Trump himself. It seeks to extend the tax breaks approved during Trump’s first term — and boost the standard deduction, child tax credit and estate tax exemption — while adding new tax breaks on tipped wages, overtime pay, Social Security benefits and auto loans that Trump promised during his campaign for the White House.

There’s also a tripling of the state and local tax deduction, called SALT, from $10,000 up to $30,000 for couples, which certain high-tax state GOP lawmakers from New York and California already rejected as too meager. Private universities would be hit with a hefty new tax on their endowments, as much as 21%, as the Trump administration goes after the Ivy League and other campuses. And one unusual provision would terminate the tax-exempt status of groups the State Department says support “terrorists,” which civil society advocates warn is a way to potentially punish those at odds with the Trump administration.

Overall, the package is touching off the biggest political debate over taxes, spending and the nation’s priorities in nearly a decade. Not since 2017 has Congress wrestled with legislation as this, when Republicans approved the Trump tax cuts but also failed to repeal and replace the Affordable Care Act, or Obamacare. The cost assessments are only preliminary, and expected to soar.

“Republicans need to UNIFY,” Trump posted on social media before departing for a trip to the Middle East.

Trump said when he returns to Washington, “we will work together on any and all outstanding issues, but there shouldn’t be many — The Bill is GREAT. We have no alternative, WE MUST WIN!”

But one key Republican, Sen. Josh Hawley of Missouri, implored his party not to impair Medicaid, arguing that cutting healthcare to pay for tax breaks is both “morally wrong and politically suicidal.”

“If Republicans want to be a working-class party — if we want to be a majority party — we must ignore calls to cut Medicaid and start delivering on America’s promise for America’s working people,” Hawley wrote in the New York Times.

Late Monday, the House Agriculture Committee released its proposals — cutting $290 billion from federal nutrition programs, in part by shifting costs to the states and requiring able-bodied adults without dependents to fulfill work requirements until they are 64 years old, rather than 54, to qualify for food aid.

Round-the-clock work ahead

As Republicans race toward House Speaker Mike Johnson’s Memorial Day deadline to pass Trump’s big bill, they are preparing to flood the zone with round-the-clock public hearings starting Tuesday and stitch the various sections together in what will become a massive package.

The politics ahead are uncertain. The bipartisan Joint Committee on Taxation said Monday that tax breaks would reduce revenue by $4.9 trillion over the decade — and that was before Trump’s new tax breaks were included.

Texas Rep. Chip Roy, a member of the conservative House Freedom Caucus, warned the price tag could climb to $20 trillion, piling onto the deficits and debt.

“I sure hope House & Senate leadership are coming up with a backup plan,” Roy posted on social media, “…. because I’m not here to rack up an additional $20 trillion in debt over 10 years.”

House Republicans have been huddling behind closed doors, working out final provisions in the 389-page tax portion of the package.

The legislation proposes to boost the standard deduction many Americans use by $2,000, to $32,000 per household, and increase the child tax credit from $2,000 to $2,500 for four years. It adds a new requirement focused on preventing undocumented immigrants from benefiting from the credit even if the children are U.S. citizens, which the Center on Budget and Policy Priorities, a liberal think tank, estimates would affect 4.5 million children who are U.S. citizens or lawful residents.

It would also increase the estate tax exemption, which is now $14 million, to $15 million and index future increases to inflation.

As for the president’s promises, the legislation includes Trump’s “no taxes on tips” pledge, providing a deduction for those workers in service industry and other jobs that have traditionally relied on tips. It directs the Treasury secretary to issue guidance to avoid businesses gaming the system.

The package also provides tax relief for automobile shoppers with a temporary deduction of up to $10,000 on car loan interest, applying the benefit only for those vehicles where the final assembly occurred in the United States. The tax break would expire at the end of Trump’s term.

For seniors, there would be a bolstered $4,000 deduction on Social Security wages for those with adjusted incomes no higher than $75,000 for individuals and $150,000 for couples.

But one hard-fought provision, the deduction for state and local taxes known as SALT, appears to be a work in progress. The legislation proposes lifting the cap to $15,000 for single filers and $30,000 for couples, but with a reduction at higher incomes — about $200,000 for singles and $400,000 for couples.

“Still a hell no,” wrote Rep. Nick LaLota (R-N.Y.) on social media.

Battle over Medicaid, food aid

Meanwhile, dozens of House Republicans have told Johnson and GOP leaders they will not support cuts to Medicaid, which provides some 70 million Americans with healthcare, nor to green energy tax breaks that businesses back home have been relying on to invest in new wind, solar and renewable projects.

All told, 11 committees in the House have been compiling their sections of the package as Republicans seek at least $1.5 trillion in savings to help cover the cost of preserving the 2017 tax breaks, which are expiring at the end of the year.

The final section from the Agriculture Committee proposed cutting the Supplemental Nutrition and Assistance Program, known as SNAP, by expanding work requirements, limiting future expansions of the program and forcing states to shoulder more of the cost.

Along with new work requirements for older Americans, it would also require some parents of children older than 7 to work to qualify, down from 18 years old. Only areas with unemployment rates over 10% would be eligible for waivers.

Some Republicans have already balked at the increased costs to the states, which would be required to contribute at least 5% of the cost of SNAP allotments beginning in 2028.

At the same time, the legislation would invest $60 billion in new money for agriculture programs, sending aid to farmers.

On Sunday, House Republicans on the Energy and Commerce Committee unveiled the cost-saving centerpiece of the package, with at least $880 billion in cuts largely to Medicaid to help cover the cost of the tax breaks.

While Republicans insist they are simply rooting out “waste, fraud and abuse” to generate savings with new work and eligibility requirements, Democrats warn that millions of Americans will lose coverage. In the 15 years since Obamacare became law, Medicaid has only expanded as most states have tapped into federal funds.

A preliminary estimate from the nonpartisan Congressional Budget Office said the proposals would reduce the number of people with healthcare by 8.6 million.

To be eligible for Medicaid, there would be new “community engagement requirements” of at least 80 hours per month of work, education or service for able-bodied adults without dependents. People would also have to verify their eligibility to be in the program twice a year, rather than just once.

There are substantial cuts proposed for green energy programs and tax breaks, rolling back climate-change strategies from the Biden-era Inflation Reduction Act.

Mascaro and Freking write for the Associated Press. AP writers Amanda Seitz, Leah Askarinam and Mary Clare Jalonick contributed to this report.

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California sues over Trump policy tying transportation grants to immigration

California Atty. Gen. Rob Bonta filed two lawsuits on Tuesday challenging a Trump administration policy that would deny the state billions of dollars in transportation grants unless it follows the administration’s lead on immigration enforcement.

“Let’s be clear about what’s happening here,” Bonta said in a statement. “The President is threatening to yank funds to improve our roads, keep our planes in the air, prepare for emergencies, and protect against terrorist attacks if states do not fall in line with his demands.”

“He’s treating these funds, which have nothing to do with immigration enforcement and everything to do with the safety of our communities, as a bargaining chip,” Bonta added.

The lawsuits, filed with a coalition of states against the Departments of Transportation and Homeland Security, argue that imposing the new set of conditions across a broad range of grant programs exceeds the administration’s legal authority.

Last month, Trump signed an executive order aiming to identify and possibly cut off federal funds to so-called sanctuary cities and states, which limit collaboration between local law enforcement and immigration authorities.

“It’s quite simple,” said White House Press Secretary Karoline Leavitt in a briefing announcing the executive order. “Obey the law, respect the law, and don’t obstruct federal immigration officials and law enforcement officials when they are simply trying to remove public safety threats from our nation’s communities.”

Cities and states that find themselves on the Trump administration’s list could also face criminal and civil rights lawsuits, as well as charges for violating the Racketeer Influenced and Corrupt Organizations Act.

During Trump’s first term in 2018, California legislators passed a pioneering sanctuary law, the California Values Act.

California receives more than $15.7 billion in transportation grants annually to maintain roads, highways, railways, airways and bridges, Bonta’s office said. That includes $2 billion for transit systems, including buses, commuter rail, trolleys and ferries.

The state also receives $20.6 billion in yearly homeland security grants to prepare for and respond to terrorist attacks and other catastrophes. Those funds include emergency preparedness and cybersecurity grants.

But the coalition of states — California, Illinois, New Jersey and Rhode Island — argued that because such grant funding has no connection to immigration enforcement, the Trump administration cannot impose criteria that forces states to comply with its vision of enforcement.

“President Trump doesn’t have the authority to unlawfully coerce state and local governments into using their resources for federal immigration enforcement — and his latest attempt to bully them into doing so is blatantly illegal,” Bonta said.

This story will be updated.

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Trump’s agenda on Middle East trip: Lots of deals

The first time President Trump visited Riyadh in 2017, he posed with a ceremonial orb, took part in a traditional sword dance and secured an agreement by Saudi Arabia to purchase $350 billion in weaponry, the largest arms deal in U.S. history.

The sequel, coming eight years later — almost to the day — promises much the same in the way of pageantry and purchases, only more so.

Even before the trip, Saudi Crown Prince Mohammed bin Salman vowed he would invest about $600 billion over the four years of Trump’s presidency (Trump asked him to round it up to $1 trillion).

And although the orb will probably not make an appearance this time around, Trump is bringing with him a phalanx of business leaders for a Saudi-U.S. business summit Tuesday — the day he arrives — that will include BlackRock Chief Executive Larry Fink, OpenAI’s Sam Altman, Palantir Technologies’ Alex Karp, Tesla’s Elon Musk and Meta’s Mark Zuckerberg.

The heads of other major firms, including IBM, Boeing, Qualcomm and Alphabet, also will attend. White House artificial intelligence and crypto czar David Sacks, meanwhile, is already in Riyadh.

Trump will then attend a summit with gulf leaders on Wednesday, travel to Qatar that same day and end the trip Thursday in the United Arab Emirates. There will be more gifts: The UAE has pledged $1.4 trillion in U.S. investment packages over the next decade.

“Trump is there to solidify a very close relationship,” said Ali Shihabi, a political and economic expert who is close to the Saudi government, adding that although he did not expect a breakthrough on security matters, the deals signed would nevertheless bring “economic ties and coordination to a very high level.”

Not to be outdone by its two regional competitors, Qatar is in discussions about the “possible transfer” of a luxury Boeing 747-8 to replace Air Force One.

Before departing on the current Air Force One, Trump found himself defending plans to accept the gift, which is thought to cost hundreds of millions of dollars. He dismissed those with concerns over the ethics and constitutionality of the gift as “stupid people,” suggesting he planned to proceed with it, a topic sure to fuel questions over his visit to Doha, the Qatari capital.

Trump also visited Saudi Arabia on the first international trip of his first term, breaking a presidential tradition of visiting U.S. allies and major trade partners such as the United Kingdom and European countries. That Trump chose the gulf region as his first destination, commentators say, reflects the Mideast’s growing centrality to the U.S. in terms of political and security partners. (Technically, this is not his first overseas trip since returning to the White House because he attended the recent funeral of Pope Francis.)

“The gulf nations succeeded in positioning themselves in a way that lets them play constructive roles in several issues,” said Hasan Alhasan, senior fellow for Middle East policy at the International Institute for Strategic Studies in Bahrain. He pointed out that Saudi Arabia has sponsored talks between Russia and Ukraine and was involved in peacemaking efforts in Sudan.

Qatar is a driving force in negotiations between Israel and Hamas and has helped to stabilize Syria. Oman, which is not on the itinerary but whose leader will take part in the summit, is hosting high-level talks between the U.S. and Iran.

“Trump is not tied to the protocols of other presidents. He sees an overlap in aims, whether political or commercial,” Alhasan said.

Israel is watching the visit with consternation on a host of fronts, expecting Trump to hear an earful from Arab governments on its continuing conflict with Hamas militants in Gaza and the role Israel is playing in the future of Syria. And Israeli officials are increasingly concerned that their voices will be drowned out as the Trump administration progresses in its negotiations with Iran over its nuclear program.

Any hint from Trump that he would tolerate the Iranians continuing with a civilian nuclear program will send reverberations throughout Washington, particularly on Capitol Hill, where Republicans have long opposed allowing Iran to continue any enrichment of uranium on its soil.

Trump also appears unconcerned with limits placed by his predecessors on what countries can receive from the U.S. He has reportedly revoked the AI diffusion rule, the U.S. policy intended to control the export of advanced semiconductor chips and AI, paving the way for gulf nations to ramp up their already considerable advanced chip holdings.

That’s especially true for the UAE, whose $1.4-trillion investment will be heavily weighted toward AI. Meanwhile, MGX, an investment fund based in the Emirati capital, Abu Dhabi, has pledged $100 billion in energy infrastructures and data centers in the U.S. to support AI.

At the same time, G42, another UAE-based AI firm, has divested from Chinese companies and partnered with Microsoft in an attempt to appease U.S. lawmakers.

There have also been reports that Trump will revive potential arms deals that were on the table from his first term but were never completed, including sales of F-35 fighter jets and Reaper drones to the UAE, and the co-production of advanced missiles with Saudi Arabia, said Prem Thakker, a partner with the global advisory firm DGA and a former official with the National Security Council under President Obama.

Another issue on the table could be nuclear power for Saudi Arabia. President Biden made supporting a civilian nuclear program for the kingdom contingent on Riyadh agreeing to a peace deal with Israel similar to the Abraham Accords, the normalization agreements forged with the UAE, Bahrain and others during Trump’s first term.

Under Trump, that condition appears to have been dropped, with negotiations that could potentially allow Saudi Arabia to capitalize on its uranium reserves and a domestic enrichment program.

“And this means that traditional nonproliferation concerns over Saudi Arabia have really subsided over the last few years,” Thakker said. “Twenty years ago no one in the U.S. would have contemplated such an agreement.”

The trip dovetails with a raft of investments involving the Trump Organization. Its real-estate development arm, which is led by Trump’s son Eric, has announced since last year construction projects across the gulf region, including a $2-billion golf course in Qatar, an 80-story hotel and residential tower in Dubai and two Trump towers in Saudi Arabia — one in Riyadh and one in Jeddah.

Though the deals appear gargantuan, experts say financial realities will cut them down to size. Many point out that Saudi Arabia’s investments during Trump’s first term did not reach the $450 billion he mentioned (the figure includes nonmilitary spending). Even the most generous of calculations would put the Saudi investments at less than $300 billion, experts say.

Though its investments in the U.S. are likely to increase during Trump’s second term, Riyadh has focused much of its spending on gigaprojects such as NEOM. And current oil prices sitting below the government’s break-even price of around $100 a barrel means that it will be running a deficit, said David Butter, a Middle East energy expert at Chatham House, a think tank in London.

He added that the Saudi government and its colossal sovereign fund, the Public Investment Fund, both of which own a part of Saudi oil giant Aramco, have not received performance-linked dividends for this year. The result, Butter said, is a looming financial crisis.

“The investment numbers are fantasy,” he said.

Bulos reported from Riyadh and Wilner from Washington.

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Jon Voight, Sylvester Stallone and entertainment groups lobby Trump for tax provisions

So-called Hollywood ambassadors Jon Voight and Sylvester Stallone joined with a coalition of entertainment industry groups for a letter delivered this week to President Trump urging him to support tax measures and a federal tax incentive that would help bring film and TV production back to the U.S.

The letter is signed by Voight, Stallone, all the major Hollywood unions and trade groups such as the Motion Picture Assn., the Producers Guild of America and the Independent Film & Television Alliance, indicating widespread support from the entertainment industry.

“Returning more production to the United States will require a national approach and broad-based policy solutions … as well as longer term initiatives such as implementing a federal film and television tax incentive,” the letter states.

In the letter, which was obtained by The Times, the groups say they support Trump’s proposal to create a new 15% corporate tax rate for domestic manufacturing activities that would use a provision from the old Section 199 of the federal tax code as a model.

Under the previous Section 199, which expired in 2017, film and TV productions that were made in the U.S. qualified as domestic manufacturing and were eligible for that tax deduction, the letter states.

The letter also asks Trump to extend Section 181 of the federal tax code and increase the caps on tax-deductible qualified film and TV production expenditures, as well as reinstating the ability to carry back losses, which the groups say would give production companies more financial stability.

The tax measures — particularly Sections 199 and 181 — are issues the entertainment industry has long advocated for, according to two people familiar with the matter who were not authorized to comment publicly. The letter itself came together over the weekend, they said. It was intended to present different measures that shared the same goal of increasing domestic production, one person said.

For the record:

3:09 p.m. May 12, 2025A previous version of this story stated Susan Sprung’s title as executive director. She is chief executive of the Producers Guild of America.

“Everything we can do to help producers mange their budgets is important,” said Susan Sprung, chief executive of the Producers Guild of America. “In an ideal world, we’d want a federal tax incentive, in addition to these tax provisions, but we want to advocate to make it as easy as possible to produce in the United States and make it as cost-effective as possible.”

Last week, Trump threw the entertainment industry into chaos after initially suggesting a 100% tariff on films made in other countries. Then, California Gov. Gavin Newsom jumped into the mix, calling for a $7.5-billion federal tax incentive to keep more productions in the U.S.

The proposals on the federal level come as states are upping their own film and TV tax credits to better compete against each other and other countries. Late last week, New York Gov. Kathy Hochul signed the state’s budget, which increased the cap for its film tax credit to $800 million a year, up from $700 million.

The expanded tax incentive program allocates $100 million for independent studios and gives additional incentives to companies that produce two or more projects in New York and commit to at least $100 million in qualified spending.

The program was also extended through 2036, which could help attract TV producers, who often want to know that their filming location is committed if they’re embarking on a series.

Production in New York has been slow, and the state needed this boost, said Michael Hackman, chief executive of Hackman Capital Partners, which owns two film and TV studio properties in the state, as well as several facilities in California. The increase from New York could also push California to increase its own film and TV tax credit program.

Last year, Newsom called to increase the annual amount allocated to California‘s film and TV tax credit program from $330 million to $750 million.

Two bills are currently going through the state legislature that would expand California’s incentive, including increasing the tax credit to cover up to 35% of qualified expenditures (or 40% in areas outside the Greater Los Angeles region), as well as expanding the types of productions that would be eligible for an incentive.

“We have the best infrastructure, the best talent, we have everything going for us,” Hackman said. “So if our state legislature can get more competitive with our tax credits, I think more productions will stay. But if they don’t, this will result in more productions continuing to leave the state and going to New York and to other locations.”

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Trump in the Middle East: How much are US-Gulf investments worth? | Donald Trump News

United States President Donald Trump has started his Middle East tour, arriving in Riyadh, Saudi Arabia, just after 10am, where he was greeted by Crown Prince Mohammed bin Salman (MBS).

During his three-day trip, he will also travel to Qatar and the United Arab Emirates (UAE), with a focus on securing economic agreements with three of the world’s wealthiest nations.

The trip will involve discussions on investment opportunities, and some experts say Trump may urge the Gulf countries to lower oil prices.

When will Trump be visiting each country?

Trump arrived in Riyadh, Saudi Arabia, on Tuesday just before 10am local time (07:00 GMT), where he was greeted by MBS. The same day, he is scheduled to attend a Saudi-US investment forum featuring leading companies such as BlackRock, Citigroup, Palantir, Qualcomm, and Alphabet.

On Wednesday, he is scheduled to take part in a Gulf summit in Riyadh, before travelling to Qatar later that day. He will conclude his trip in the UAE on Thursday, May 15.

INTERACTIVE-Trumps Gulf Middle East visiting schedule-MAY12-2025-1747112522

Trump’s first visit as president was to Saudi Arabia

During his first term, 2017 to 2021, Trump became the first US president to make the Middle East his first international destination, breaking with the longstanding tradition of visiting neighbouring North American countries first.

His trip to Saudi Arabia from May 20 to 22, 2017 – during which he attended the Riyadh Summit – was a calculated move to bolster defence ties and secure substantial arms deals.

During that trip, Trump also visited Israel and Palestine.

INTERACTIVE - Where did Donald Trump go in his first term-1747055157

While Trump did not go to Qatar or the UAE during his first term, he met Qatar’s Emir Sheikh Tamim bin Hamad Al Thani, Bahrain’s King Hamad bin Isa Al Khalifa and Egyptian President Abdel Fattah el-Sisi at the Riyadh Summit.

During the summit, Trump and Saudi King Salman bin Abdul Aziz Al Saud signed a $110bn arms deal, including missile defence systems, tanks, combat ships and cybersecurity technology, with the intent of buying $350bn worth of arms over 10 years.

A memorable moment from that 2017 trip to Saudi Arabia was during the inauguration of the Global Center for Combating Extremist Ideology in Riyadh. In a surreal photo op that quickly went viral, Trump stood alongside King Salman and President el-Sisi with their hands on a glowing orb.

Trump Sisi Salman globe
Left to right, Egyptian President Abdel Fattah el-Sisi, Saudi King Salman, US First Lady Melania Trump and President Donald Trump, at the new Global Center for Combating Extremist Ideology, in Riyadh on May 21, 2017 [Saudi Press Agency via AP]

What is the value of US-Gulf investments?

Sami al-Arian, director of the Center for Islam and Global Affairs at Istanbul Zaim University, told Al Jazeera that Trump has been very vocal about his objective in visiting the three Gulf states: investments.

Trump’s administration has reportedly discussed the possibility of expediting investments by Saudi Arabia, Qatar and the UAE before his trip to the region.

“He’s trying to get trillions of dollars out of these countries,” al-Arian told Al Jazeera.

“He’s already said that he’s hoping to get $1 trillion from Saudi Arabia in terms of arms sales and commercial deals,” he said.

US-Saudi investments

According to the latest data from the US Department of Commerce, the total stock of US foreign direct investment (FDI) in Saudi Arabia reached $11.3bn in 2023.

Conversely, Saudi Arabia’s FDI stock in the US stood at $9.6bn, mostly in transport, real estate, plastics, automotive, financial services and communications, according to the Commerce Department.

These figures are only FDI, not other investments, like portfolio investments or short-term financial flows.

US-Qatar investments

In 2023, the total stock of US FDI in Qatar was estimated at $2.5bn.

According to the US-Qatar Business Council, US companies that have facilitated FDIs in Qatar focused on the fields of energy, petrochemicals, construction, engineering, and communications technology.

Conversely, Qatari FDI stock in the US reached $3.3bn in 2023, with investments concentrated in financial services, energy and real estate.

US-UAE investments

In 2023, the total stock of US FDI in the UAE reached $16.1bn.

According to the Reuters news agency, in 2023, the main FDI drivers were manufacturing, finance and insurance, construction and wholesale and retail trade sectors.

Meanwhile, UAE FDI stock in the US totalled $35bn in 2023 – in financial services, transport, food and beverages, aerospace, and business services, according to the Commerce Department.

In March, UAE National Security Adviser Tahnoon bin Zayed Al Nahyan met Trump and committed $1.4 trillion in investments to the US over 10 years in sectors such as artificial intelligence, semiconductors, energy and manufacturing.

Weapons trade between the nations

The US is the biggest exporter of arms globally and a top supplier to Gulf countries.

Qatar and Saudi Arabia each accounted for 6.8 percent of the world’s total arms imports for 2020-24, making them the third and fourth largest importers globally.

The UAE is the 11th largest importer of arms, accounting for 2.6 percent of global imports for the same period.

Saudi Arabia is the main recipient of US arms, according to the Stockholm International Peace Research Institute (SIPRI). Between 2020 and 2024, Saudi Arabia received 12 percent of the US’s total arms exports.

About 74 percent of Saudi arms imports come from the US.

Trump is poised to offer Saudi Arabia an arms package worth more than $100bn during his trip, according to Reuters.

In the 2020-24 period, the US was the top supplier of arms to Qatar, accounting for 48 percent of its imports.

In March, the US Department of State approved a large weapons package to Qatar worth $2bn, which includes long-range maritime surveillance drones and hundreds of missiles and bombs.

In the same period, the US was also the top supplier of weapons to the UAE, accounting for 42 percent of the country’s arms imports.

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Investors cautious as Trump says China removing non-tariff trade barriers

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Speaking after the trade talks, US President Donald Trump told reporters at the White House on Monday: “China will also suspend and remove all of its non-monetary barriers. They’ve agreed to do that,” he said. “It’s going to take a while to paper it. You know, that’s not the easiest thing to paper,” he added.

In early April, China imposed rare earth export restrictions on the US as a major non-tariff countermeasure in response to Trump’s reciprocal tariffs. The export controls affected seven critical minerals, on which the US heavily relies. These minerals are essential components in the manufacture of electric vehicles and electronic devices.

Trump’s remarks suggest that whether China will suspend or remove its export controls on these key minerals will be a central term in the negotiations. The removal or suspension of the controls could further bolster optimism surrounding a de-escalation of trade tensions.

On Monday, the world’s two largest economies reached an agreement to pause tariffs for 90 days. The US will reduce tariffs on China to 30% from 145%, while China will lower import levies on US goods to 10% from 125%.

Stock market rally loses steam

The broad-based market rally showed signs of retreat during Tuesday’s Asian session, indicating investor caution over the progress of US-China negotiations. Although both sides agreed to establish a mechanism for further discussions following the weekend’s talks, no specific dates have yet been set for future meetings.

US stock futures declined, pointing to a lower open. As of 4:50 am CEST, the Dow Jones Industrial Average fell 0.25%, the S&P 500 dropped 0.38%, and the Nasdaq Composite slid 0.47%. By contrast, European major index futures were more resilient, with the Euro Stoxx 600 slipping 0.17%, the DAX flat, and the FTSE 100 falling 0.23%.

Markets are awaiting further details of the agreement, particularly regarding China’s non-tariff countermeasures. Investors are also concerned about whether a comprehensive trade deal can be secured between the two nations after the 90-day pause.

“The critical issue from here is solidifying trade deals and ensuring the reduced tariffs don’t lapse after 90 days,” wrote Kyle Rodda, a senior market analyst at Capital.com, Australia, in an email. He added that markets would also look to see whether the US can achieve trade deals with other partners. “The markets will also want to see the US maintain this momentum and nut out deals with its other trading partners. Should that happen, the recovery in equities and the dollar ought to continue,” he said.

Euro rebounds from month-low

The US dollar weakened slightly against other major G10 currencies during the early Asian session. The EUR/USD pair rebounded to above 1.11 after falling to as low as 1.1065 on Monday – its lowest since 10 April.

The euro was seen as a major haven asset in April as the trade war heightened fears of a global economic recession. The common currency surged against the greenback last month to its highest level since November 2021. However, the euro’s rally could reverse course if future US-China negotiations lead to further de-escalation of trade tensions.

Investors appear to be seeking bargains in US assets amid an easing of risk-off sentiment. Despite the trade war, the impact on the US economy is expected to remain limited thus far. The market sell-off has been driven more by deteriorating sentiment than by any materialised downturn.

Markets will also turn their attention to the US Consumer Price Index (CPI) for April, due for release on Wednesday. Sticky inflation may further drive up the dollar, thereby putting pressure on the euro. Markets expect the Federal Reserve to reduce interest rates twice this year in response to tariff-driven inflationary risks. Meanwhile, the European Central Bank is also expected to continue its rate-cutting cycle on economic grounds, albeit on a meeting-by-meeting basis.

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Trump orders drugmakers to lower prescription drug costs in 30 days

President Trump on Monday signed a sweeping executive order setting a 30-day deadline for drugmakers to lower the cost of prescription drugs in the U.S. or face new limits on what the government will pay.

The order calls on the Health and Human Services Department, led by Robert F. Kennedy Jr., to broker new price tags for drugs. If a deal is not reached, a new rule will kick in that will tie the price of what the U.S. pays for medications to lower prices paid by other countries.

“We’re going to equalize,” Trump said during a Monday morning news conference. “We’re all going to pay the same. We’re going to pay what Europe pays.”

It’s unclear what — if any — impact the Republican president’s executive order will have on millions of Americans who have private health insurance. The federal government has the most power to shape the price it pays for drugs covered by Medicare and Medicaid.

The federal government spends hundreds of billions of dollars on prescription drugs, injectables, transfusions and other medications every year through Medicare, which covers nearly 70 million older Americans. Medicaid, meanwhile, covers nearly 80 million poor and disabled people in the United States.

Ahead of the signing, the nation’s leading pharmaceutical lobby on Sunday pushed back against Trump’s plan, calling it a “bad deal” for American patients. Drugmakers have long argued that any threats to their profits could impact the research they do to develop new drugs.

“Importing foreign prices will cut billions of dollars from Medicare with no guarantee that it helps patients or improves their access to medicines,” Stephen J. Ubl, the president and chief executive of PhRMA, said in a statement. “It jeopardizes the hundreds of billions our member companies are planning to invest in America, making us more reliant on China for innovative medicines.”

Trump’s so-called most favored nation approach to Medicare drug pricing has been controversial since he first tried to implement it during his first term. He signed a similar executive order in the final weeks of his first presidential term, calling for the U.S. to only pay a lower price that other countries pay for some drugs — injectables or cancer drugs given through infusions — administered in a doctor’s office.

That narrow executive order faced hurdles, with a court order that blocked the rule from going into effect under President Biden’s administration. The pharmaceutical industry argued that Trump’s 2020 attempt would give foreign governments the “upper hand” in deciding the value of medicines in the United States.

Trump repeatedly defended pharmaceutical companies, instead blaming other countries for the high price Americans pay for drugs, during a wide-ranging speech at the White House on Monday. The president was flanked by Kennedy, Centers for Medicare and Medicaid Services administrator Dr. Mehmet Oz, Food and Drug Administration commissioner Dr. Marty Makary and National Institutes of Health director Dr. Jay Bhattacharya.

He did, however, threaten the companies with federal investigations into their practices and opening up the U.S. drug market to bring in more imported medications from other countries.

“The pharmaceutical companies make most of their profits from America,” Trump said. “That’s not a good thing.”

Trump has played up the announcement, saying it will save taxpayers big money. He boasted in one post that his plan could save “TRILLIONS OF DOLLARS.”

“Our Country will finally be treated fairly, and our citizens Healthcare Costs will be reduced by numbers never even thought of before,” Trump said in another post ahead of Monday’s announcement.

The White House did not release an analysis of how much money his order would save or which drugs would be affected.

Oz, speaking on Monday, said that he and the agency’s other top leaders would be meeting with drug company executives over the next 30 days to offer new prices on drugs that are based off what other countries pay.

The Health and Human Services Department has the most authority to change the prices of drugs covered by Medicare and Medicaid because it can set regulations. Even still, the agency’s power to do so is limited. Congress just approved in 2022 a new law that allows Medicare to negotiate the price it pays for a handful of prescription drugs starting in 2026. Prior to the law, Medicare paid what the drug companies charged. Drug companies unsuccessfully sued over the implementation of the law.

The price that millions of Americans covered by private insurance pay for drugs is even harder for the agency to manipulate.

The U.S. routinely outspends other nations on drug prices, compared with other large and wealthy countries, a problem that has long drawn the ire of both major political parties, but a lasting fix has never cleared Congress.

Trump came into his first term accusing pharmaceutical companies of “getting away with murder” and complaining that other countries whose governments set drug prices were taking advantage of Americans.

On Sunday, Trump took aim at the industry again, writing that the “Pharmaceutical/Drug Companies would say, for years, that it was Research and Development Costs, and that all of these costs were, and would be, for no reason whatsoever, borne by the ‘suckers’ of America, ALONE.”

Referring to drug companies’ powerful lobbying efforts, he said that campaign contributions “can do wonders, but not with me, and not with the Republican Party.”

“We are going to do the right thing,” he wrote.

Seitz and Kim write for the Associated Press. AP writer Will Weissert contributed to this report.

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Trump administration welcomes 59 white South Africans as refugees to the US | Donald Trump News

Move comes as US administration largely closes refugee admissions from countries experiencing widespread violence and poverty.

A group of 59 white Afrikaners from South Africa has arrived in the United States as part of a refugee programme set up by the administration of US President Donald Trump to offer sanctuary from what Trump has depicted as racial discrimination against white people.

In a press conference on Monday, Trump mirrored the claims of a myth popular on the far right that white people in South Africa have been subjected to systematic violence since the end of white minority rule in that country.

“It’s a genocide that’s taking place,” Trump told reporters at the White House, a claim that has drawn criticism from government officials, news media, and even some Afrikaners themselves.

The move comes as the Trump administration blocks nearly all refugee admissions from non-white countries and leans into rhetoric about an “invasion” of immigrants from poor countries.

While people fleeing widespread violence and persecution in countries such as Haiti and Afghanistan have found a closed door, Al Jazeera correspondent Patty Culhane says that the Trump administration “has made a priority of getting these people [white South Africans] into the United States and paying for them to get here”.

‘Wrong end of the stick’

The South African government has called Trump’s claims that Afrikaners face persecution “completely false”, noting that they have remained among the richest and “most economically privileged” groups, even after the end of the apartheid system that upheld white minority control of the political, economic, and military resources of the country and denied basic rights to the Black South African majority.

South African whites still own about three-quarters of all private land in the country, and have about 20 times the wealth of the Black majority, according to the international academic journal the Review of Political Economy.

“We think that the American government has got the wrong end of the stick here, but we’ll continue talking to them,” South African President Cyril Ramaphosa, himself a veteran of the struggle to end apartheid, said on Monday.

Tensions between the Trump administration and the government of South Africa have been high, with the US expelling South Africa’s ambassador over previous criticism of Trump and at odds with the African nation’s prominent position in a case before the International Court of Justice accusing US ally Israel of genocide in Gaza.

The Trump administration offered in February to resettle Afrikaners, descendants of Dutch settlers in South Africa, stating that they face discrimination and violence against Afrikaner farmers.

“I want you all to know that you are really welcome here and that we respect what you have had to deal with these last few years,” Deputy Secretary of State Christopher Landau told the group of Afrikaners who arrived in the US on Monday. “We respect the long tradition of your people and what you have accomplished over the years.”

Bill Frelick, refugee policy director with Human Rights Watch, said the fast-track process of bringing Afrikaners into the US was unprecedented.

“These are people who were not living in refugee camps; who hadn’t fled their country. They were the group that was most associated with the oppression of the Black majority through apartheid,” said Frelick. “It’s not like these are among the most vulnerable refugees of the world.”

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Trump signs executive order to bring down prescription drug prices | Donald Trump News

President makes push to bring down drug prices that have long been a source of financial strain for US patients.

United States President Donald Trump has signed an executive order that he says will bring down the price of prescription drugs in the US by as much as 90 percent.

In an announcement on Monday, Trump said drug companies who have been “profiteering” will have to bring prices down but laid the blame for high prices primarily on foreign countries.

“We’re going to equalise,” Trump said during a news conference. “We’re all going to pay the same. We’re going to pay what Europe pays.”

People in the US have long been an outlier when it comes to the prices they pay for numerous types of life-saving medication, often paying several times more than their peers in other rich countries for nearly identical drugs.

That phenomenon is often attributed to the substantial economic and political influence that the pharmaceutical industry wields in the US.

The high cost of medical drugs has been a source of popular discontent in the US for years, and Trump accused the pharmaceutical industry of “getting away with murder” in 2017.

But in his remarks on Monday, the US leader also seemed to say that US pharmaceutical companies were not ultimately to blame for the difference in prices. Trump instead framed those high prices in the familiar terms of a trade imbalance with partners such as the European Union and said the US has been “subsidising” lower drug prices in other nations.

That perspective seems to align with the framing of the pharmaceutical industry itself. The industry’s most powerful lobbying arm stated the cause of high prices for US consumers is “foreign countries not paying their fair share”.

Senator Bernie Sanders, a left-wing politician who has railed against the high prices paid by US patients for years, said Trump’s order wrongly blames foreign countries rather than US companies for those prices.

“I agree with President Trump: it is an outrage that the American people pay, by far, the highest prices in the world for prescription drugs,” Sanders said in a statement.

“But let’s be clear: the problem is not that the price of prescription drugs is too low in Europe and Canada. The problem is that the extraordinarily greedy pharmaceutical industry made over $100bn in profits last year by ripping off the American people.”

A fact sheet shared by the White House said the administration will “communicate price targets to pharmaceutical manufacturers to establish that America, the largest purchaser and funder of prescription drugs in the world, gets the best deal”.

Trump and Robert F Kennedy Jr
Health and Human Services Secretary Robert F Kennedy Jr speaks after President Donald Trump signed an executive order on drug prices at the White House in Washington, DC, on May 12, 2025 [Mark Schiefelbein/AP Photo]

The stock prices of US drugmakers ticked upwards after the announcement. Experts have cast doubt on Trump’s optimistic assertion that drug prices would drop quickly and substantially.

“It really does seem the plan is to ask manufacturers to voluntarily lower their prices to some point which is not known,” Rachel Sachs, a health law expert at Washington University in St Louis, Missouri, told The Associated Press news agency.

“If they do not lower their prices to the desired point, HHS [the Department of Health and Human Services] shall take other actions with a very long timeline, some of which could potentially, years in the future, lower drug prices.”

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Why trade truce with China may not be enough to stop shortages

China and the United States retreated from an emerging economic crisis on Monday, agreeing to drastically reduce tariffs on one another for the next 90 days as they continue to negotiate a more permanent trade deal, providing welcome news for investors and retailers who increasingly feared a breakthrough was out of reach.

The temporary truce will see the United States lower tariffs on Chinese imports to 30% from 145%, and China reduce its import duties on U.S. goods to 10% from 125%, starting Wednesday. Wall Street rejoiced at the announcement of a deal, with the Dow Jones industrial average, the Standard & Poor’s 500 and the Nasdaq all up more than 2%.

Trump referred to the development as a “total reset with China.” But the end result of the provisional agreement is a return to tariff rates that were in place before the president launched a global trade war on April 2, in what he called “Liberation Day” — a move that brought the largest decline in commercial shipping traffic since the COVID-19 pandemic and prompted financial institutions to warn of an imminent recession.

Supply shortages and price increases on Chinese products may still hit American consumers in the coming weeks, a lingering effect of weeks of uncertainty, experts said. Many retailers have already increased their prices. And shipping costs are expected to skyrocket as manufacturers and wholesalers attempt to make up for lost time. The 90-day deadline for a more lasting trade deal could fuel further market volatility in the coming weeks.

Trump’s Treasury secretary, Scott Bessent, who led the negotiations with Beijing, also secured a commitment from China to cut non-tariff barriers it had put in place after April 2, including certain import restrictions and blacklisting of U.S. companies.

“It de-escalates trade tensions and reduces the probability of a stagflation,” said Sung Won Sohn, a former commissioner at the Port of Los Angeles, referring to a phenomenon feared the world over by economists: a combination of slow economic growth, high inflation and increasing unemployment. “But this is a temporary truce. A tough road is ahead of us.”

Over the next three months, the Trump administration says it intends to develop a “mechanism” that will “rebalance” the U.S. trade relationship with China — a task that has eluded presidents for decades. Trump hopes to change Beijing’s policy of providing government subsidies to state-owned enterprises and to reduce a $400-billion U.S. trade deficit with China, both tall orders in such a short time frame.

“Supply chains have been disrupted and there are a lot fewer ships sailing the ocean,” Sohn added. “Supplies in stores won’t be as plentiful as it used to be. During the back-to-school season, for example, there will be shortages, stockouts and higher prices. If the negotiation progresses well, there will be more merchandise at retail stores for back-to-school and Christmas.”

After the deal concluded in Geneva, Bessent said he would draw inspiration in the upcoming talks from a preliminary agreement negotiated with Beijing at the end of the first Trump administration called Phase One, which included new rules governing the exchange of intellectual property, technology transfer and financial services. Bessent claimed that deal was not enforced by the Biden administration.

But the Treasury secretary acknowledged that the upcoming talks would be difficult. “Neither side wants a decoupling,” he said.

“I don’t think anything’s going to be easy, because this has been going on for a long time,” Bessent told CNBC.

Before departing for an official visit to the Middle East, Trump said he expected to speak with Chinese President Xi Jinping and praised the agreement as a temporary step toward a permanent deal. The truce, Trump added, does not include tariffs on cars, steel and aluminum.

He also spoke with Apple Chief Executive Tim Cook shortly after announcing the deal, Trump said.

“The relationship is very good. We’re not looking to hurt China — China was being hurt very badly,” the president told reporters at the White House. “They were very happy to be able to do something with us.”

Trump said that pharmaceuticals may also be exempt from tariff reductions with China going forward, speaking at a signing ceremony for an executive order aimed at lowering drug prices.

The majority of the world’s pharmaceuticals are manufactured in China and India. But Trump reserved his harshest critique at the event for the European Union, which produces several high-profile drugs, including Ozempic and Wegovy, weight loss medications that Trump said are heavily overpriced in the United States.

“The European Union is in many ways nastier than China,” Trump said, adding: “We’ve just started with them.”

“We have all the cards,” he said. “They treated us very unfairly.”

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Is Trump abandoning Israel? Not really | Israel-Palestine conflict

United States President Donald Trump descends on Tuesday on the Middle East for a regional tour that will begin in Saudi Arabia and include stops in the United Arab Emirates and Qatar. It is a business trip in every sense of the term, involving potentially trillions of dollars in investment and trade deals.

The UAE, for example, has already pledged $1.4 trillion in investments to the US over 10 years in sectors ranging from artificial intelligence and energy to mining and aluminium production. Saudi Arabia, for its part, has committed to investing $600bn in the US over the next four years. According to the Reuters news agency, Trump will also be offering the kingdom an arms package to the tune of $100bn.

Meanwhile, in keeping with the president’s solid history of nepotism and self-enrichment, it just so happens that the Trump Organization is currently presiding over real estate projects and other business ventures in all three Gulf countries he is slated to visit.

And yet one country is conspicuously absent from the regional itinerary despite being the US’s longstanding BFF in the Middle East: Israel, the nation that has for the past 19 months been perpetrating genocide in the Gaza Strip with the help of gobs of US money and weaponry. The official Palestinian death toll stands at nearly 53,000 and counting.

Although the genocide kicked off on the watch of his predecessor President Joe Biden, Trump was quick to embrace mass slaughter as well, announcing not long after reassuming office that he was “sending Israel everything it needs to finish the job” in Gaza. It appears, however, that Israel is taking a bit too long for the US president’s liking – particularly now that Israeli Prime Minister Benjamin Netanyahu has prescribed an intensified offensive against an enclave that has already been largely reduced to rubble.

The issue, of course, is not that Trump cares if Palestinian children and adults continue to be massacred and starved to death while Israel takes its sweet time “finishing the job”. Rather, the ongoing genocide is simply hampering his vision of the “Riviera of the Middle East” that will supposedly spring forth from the ruins of Gaza, the creation of which he has outlined as follows: “The US will take over the Gaza Strip, and we will do a job with it too. We’ll own it.”

So while war may be good for business – just ask the arms industry – it seems that too much war can ultimately be a counterproductive investment, at least from a Trumpian real estate perspective.

In the run-up to Trump’s Middle Eastern expedition, reports increasingly circulated of tensions between the US president and the Israeli prime minister – and not just on the Gaza front. On Sunday, NBC News noted that Netanyahu had been “blindsided – and infuriated – this past week by Trump’s announcement that the US was halting its military campaign against the Iranian-backed Houthis in Yemen”.

Even more annoying to the Israeli premier, apparently, is Trump’s refusal to endorse military strikes on Iran. Plus, the US has reportedly discarded the demand that Saudi Arabia normalise relations with Israel as a condition for US support for the kingdom’s civilian nuclear programme.

What, then, does the strained Trump-Netanyahu rapport mean for the ever-so-sacred “special relationship” between the US and Israel? According to an article published by the Israeli outlet Ynetnews: “Despite the tensions, Israeli officials insist behind-the-scenes coordination with the Trump administration remains close, with no real policy rift.”

The dispatch goes on to assure readers that US Ambassador to Israel Mike Huckabee has “denied rumors that Trump might announce support for a Palestinian state during the visit” to the three Gulf nations. Of course, it’s not quite clear what sort of “Palestinian state” could ever be promoted by the man proposing US ownership of the Gaza Strip and expulsion of the native Palestinian population.

Although Israel may be sidelined on this trip, that doesn’t mean it won’t continue to serve a key function in general US malevolence. Just last month, Israeli National Security Minister Itamar Ben-Gvir – source of the idea that there is “no reason for a gram of food or aid to enter Gaza” – was hosted by Republican officials at Trump’s Mar-a-Lago resort in Florida. After a dinner held in his honour, Ben-Gvir boasted that Republicans had “expressed support for my very clear position on how to act in Gaza and that the food and aid depots should be bombed”.

Flashy trillion-dollar Gulf deals aside, rest assured that the Trump administration remains as committed as ever to capitalising on Israeli atrocities.

The views expressed in this article are the author’s own and do not necessarily reflect Al Jazeera’s editorial stance.

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Attacks on LGBTQ+ rights at forefront of California’s governor’s race

In a ballroom packed with more than 1,000 people raising money for LGBTQ+ youths, veteran California legislative leader Toni Atkins didn’t mince words: To be a gay or transgender teenager right now, she said, must feel like “a rug has been pulled from beneath your feet.”

In her fiery speech at the annual Harvey Milk Diversity Breakfast, Atkins, who is running for California governor, said President Trump and other Republicans are working to “legislate our trans siblings out of public life.”

“These aren’t just political stunts: These are acts that put lives in danger and strip away basic human dignity,” Atkins said. “So hear me, as I say: Trans people belong. Trans youth deserve love, joy and our protection.”

Atkins’ speech, which drew rousing applause, offered a glimpse of how Trump’s efforts to undermine California’s liberal values — including support for transgender Americans — will be at the heart of the state’s 2026 campaign for governor.

In his first 100 days, Trump issued executive orders banning trans women from women’s sports and barring the federal government from recognizing genders other than male or female.

Trump is also pushing to ban transgender Americans from the U.S. military, writing in an executive order that transgender identity is a “falsehood” inconsistent with the “humility and selflessness required of a service member.” The Supreme Court cleared the way last week for that ban to take effect.

“Cruelty, and an attempt to humiliate, seems to be the point of what they are doing,” said Lisa Middleton, a transgender woman and former mayor of Palm Springs.

The LGBTQ+ community has become a political force in shaping statewide policy and campaigns.

Other top Democrats running to replace Gov. Gavin Newsom have also voiced strong support for LGBTQ+ rights, including Lt. Gov. Eleni Kounalakis, former Orange County Rep. Katie Porter, former U.S. Secretary of Health and Human Services Xavier Becerra, former Los Angeles Mayor Antonio Villaraigosa, former Controller Betty Yee and Supt. of Public Instruction Tony Thurmond.

About 2.8 million lesbian, gay, bisexual and transgender people live in California, more than in any other state, and Californians overwhelmingly support laws that protect the LGBTQ+ community, according to the Public Policy Institute of California.

Last year, California voters overwhelming passed a ballot measure to enshrine the right to same-sex marriage into the state Constitution. A proposed ballot initiative that would have limited transgender youth medical care and required schools to notify parents about their child’s gender identity failed to get enough signatures to qualify for the November ballot.

Polling by the Los Angeles Times last year found that more than 3 in 4 Americans see issues related to transgender and nonbinary people — which affect a fraction of the American population — as a distraction from more pressing policy matters.

“It is a trap that conservatives are utilizing to distract from the real issues at hand,” said Evan Low, a former California Assembly member and the new president of the LGBTQ+ Victory Fund.

Atkins, a former state Senate president pro tempore, former Assembly speaker and the only gay major candidate in the governor’s race, said in an interview that she’s “mindful that as a woman and as a member of the gay community, what I do matters.” She said she supported the bill passed by the California Legislature a decade ago that allows students to play on sports teams that match their gender identity.

“This administration is using that as a weapon and politicizing it,” Atkins said. “That’s just cruel.”

An Associated Press poll found in early May that Trump’s handling of transgender issues is more popular with Americans than his job performance overall. And polling done in January by the New York Times found that nearly 80% of Americans, including more than two-thirds of Democrats, opposed the idea of trans women competing in women’s sports.

“The Democrats, who are trying to find their voice on so many things right now, don’t know how to handle it,” said Hank Plante, a political journalist and former fellow at the USC Center for the Political Future who lives in Palm Springs with his husband. “They want to be true to their base and to their principles of equal rights. But at the same time, it’s a loser politically when you start talking about nonconforming gender issues and young people.”

One of the Trump campaign’s most bruising attack ads last fall showed a clip of former Vice President Kamala Harris saying she would support gender-transition surgery for inmates in California’s prisons, then concluded with: “Kamala is for they/them. President Trump is for you.”

“She didn’t even react to it, which was even more devastating,” Newsom said on a recent episode of his podcast. “Brutal. It was a great ad.”

On the same episode, Newsom told conservative commentator Charlie Kirk that it was “deeply unfair” for transgender girls to play on girls’ sports teams. Newsom previously supported a California law signed by former Gov. Jerry Brown that allowed trans students to compete in sports and use bathrooms based on their gender preference.

The uproar that followed Newsom’s comments underscored the complexities Democrats face on the issue, with some Democrats alleging that Newsom strategically abandoned a vulnerable group of people to prepare for a future presidential run.

Assemblymember Christopher M. Ward (D-San Diego), the chair of the California Legislative LGBTQ Caucus, said the governor’s remarks left him “profoundly sickened and frustrated.”

But Riverside County Sheriff Chad Bianco, one of the best-known Republicans running for governor, said he agreed with Newsom — and, if elected, would sign an executive order banning “boys competing in girls’ sports.”

Ron deHarte, the first gay Mexican American mayor of Palm Springs, warned in his speech at the Harvey Milk Diversity Breakfast that the LGBTQ+ community and its allies will “march with greater fervor — we will do more than ever before.”

“If you are a member of the military — transgender or not — if you are willing to fight for me, then I must be willing to fight for you,” deHarte told the crowd.

In an interview, deHarte said that elected officials are now facing an ethical test over whether to speak out against Trump administration policies that they see as hurting their communities, at the risk of losing federal funding.

He said all eyes are on Maine, where the Trump administration stopped all federal education funding after Gov. Janet Mills, a Democrat, refused to comply with Trump’s directive to ban trans girls from girls’ sports.

“It’s a challenging line to walk,” deHarte said. “You have to make sure you have not only the right moral standing, but the right legal standing too.”

Since Trump’s inauguration, federal officials have targeted California over laws aimed at protecting trans students.

The U.S. Department of Education is investigating the California Interscholastic Federation, which oversees sports at more than 1,500 high schools, and the California Department of Education over a law that bars schools from automatically notifying families about issues related to students’ gender identities.

Gay and trans high school students right now are experiencing fear that is “like being a little more closeted,” said Delana Martin-Marshall, 38, an art teacher at A.B. Miller High School in Fontana.

She and her wife, a physical education teacher at the school, drove a dozen students from the school’s gay-straight alliance in two vans to the Harvey Milk Diversity Breakfast.

“Students are really scared,” she said. “Scared of being themselves.”

There’s little that state-level officials can do to reverse decisions from the White House on issues like military eligibility and passports, but the state can still be a refuge for gay and trans students, attendees said, including shoring up funding and legal protections for gender nonconforming students and for gay couples.

“The state has to prepare for what’s coming,” Plante said. He pointed to Justice Clarence Thomas’ concurring opinion when the Supreme Court overturned Roe vs. Wade, which said that the court “should reconsider” past rulings codifying Americans’ rights to contraception, same-sex relationships and same-sex marriage.

Christopher Martinez, 32, attended the Harvey Milk Diversity Breakfast with fellow students from College of the Desert who said they hope the next governor will focus on the day-to-day issues that affect transgender and gay college students, including the rising cost of living and housing insecurity.

“Everything is getting really expensive,” Martinez said.



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‘Beacon of freedom’ dims as U.S. initiatives that promote democracy abroad wither under Trump

Growing up in the Soviet Union, Pedro Spivakovsky-Gonzalez’s father and grandparents would listen to Voice of America with their ears pressed to the radio, trying to catch words through the government’s radio jamming.

The U.S.-funded news service was instrumental in helping them understand what was happening on the other side of the Iron Curtain, before they moved to the United States in the 1970s.

“It was a window into another world,” Spivakovsky-Gonzalez said. “They looked to it as a sort of a beacon of freedom. They were able to imagine a different world from the one they were living in.”

When Spivakovsky-Gonzalez and his family heard of President Trump’s attempts to dismantle the U.S. Agency for Global Media — which oversees VOA, Radio Free Europe and Radio Free Asia — he said it was a “gut punch.”

The first months of the second Trump administration have delivered blow after blow to American efforts to promote democracy abroad and pierce the information wall of authoritarian governments through programs that had been sustained over decades by presidents of both political parties.

The new administration has decimated the Agency for Global Media, restructured the State Department to eliminate a global democracy office and gutted the U.S. Agency for International Development, which just last year launched an initiative to try to halt the backsliding of democracy across the globe. In all, the moves represent a retrenchment from the U.S. role in spreading democracy beyond its borders.

Experts say the moves will create a vacuum for promoting freedom and representative government, and could accelerate what many see as antidemocratic trends around the world.

“The United States has historically been the leading power in spreading democracy globally. Despite different administrations, that has remained the case — until now,” said Staffan Lindberg, a political science professor at the University of Gothenburg in Sweden.

‘Pillar of American foreign policy’

David Salvo, managing director for the Alliance for Securing Democracy at the German Marshall Fund, said promoting democracy abroad has been “a pillar of American foreign policy in the last 50 years” as a means of ensuring more stable, peaceful relationships with other countries, reducing the threat of conflict and war, and fostering economic cooperation.

Yet among President Trump’s early actions was targeting democracy programs through the State Department and USAID, which had launched a new global democracy initiative at the end of the Biden administration. The Treasury Department halted funding to the National Endowment for Democracy, and Secretary of State Marco Rubio said in April he would shut a State Department office that had a mission to build “more democratic, secure, stable, and just societies.”

Funding cuts have hit the National Democratic Institute, the International Foundation for Electoral Systems and U.S. nonprofits that have worked for decades “to inject resources into environments so that civil society and democratic actors can try to effect change for the better,” including through bolstering unstable democracies against autocrats, Salvo said.

Whether global democracy programs are worth funding was central to a hearing Thursday by a U.S. House Foreign Affairs subcommittee, as Rep. Maria Elvira Salazar (R-Fla.) repeatedly asked how to “ensure our return on investment is really high.”

About 1.2% of the federal budget went to foreign aid in the 2023 fiscal year, according to the Pew Research Center.

“I understand the committee is interested in how we can improve … and get back to basics,” Tom Malinowski, a former Democratic congressman from New Jersey and assistant secretary of State for democracy, human rights and labor under President Obama, told lawmakers. “The problem is the administration is eliminating the basics right now.”

Uzra Zeya, who leads the international nonprofit Human Rights First after serving in the Biden State Department, said it was “heartbreaking and alarming” to watch the U.S. essentially dismantle its democracy and human rights programs.

“The potential long-term impacts are devastating for U.S. national security and prosperity,” she said.

Diminishing the messaging pipelines

For more than 80 years, VOA and its related outlets have delivered news across the world, including to more than 427 million people every week in 49 languages, according to a 2024 internal report. The broadcaster began during World War II to provide Germans with news, even as Nazi officials attempted to jam its signals. The Soviet Union and China attempted to silence its broadcasts during the Cold War. Iranian and North Korean governments have also tried to block access to VOA for decades.

But the most successful attempt to silence VOA has been through its own government. It was in effect shut down in March through a Trump executive order.

Lisa Brakel, a 66-year-old retired librarian in Temperance, Mich., said VOA was a “mainstay” when she was a music teacher in Kuwait in the 1980s. She and her colleagues would listen together in the apartment complex where the American teachers were housed, to stay up to date with news from home.

When she learned the news about the VOA funding cuts, “I thought, ‘No, they can’t shut this down. Too many people depend on that,’” Brakel said. “As a librarian, any cuts to free access to information deeply concern me.”

Emboldening U.S. rivals

The broadcaster’s future remains in flux after a federal appellate court paused a ruling that would have reversed its dismantling. This was just a day after journalists were told they would soon return to work after being off the air for almost two months. Even if they are allowed back, it’s unclear that the mission would be the same.

Last week, the Trump administration agreed to use the feed of One American News, or OAN — a far-right, ardently pro-Trump media network known for propagating conspiracy theories — on VOA and other services.

In Asia, dismantling Radio Free Asia would mean losing the world’s only independent Uyghur language news service, closing the Asia Fact Check Lab as it reports on misinformation from the Chinese Community Party, and curbing access to information in countries such as China, North Korea and Myanmar that lack free and independent media, the broadcaster’s president, Bay Fang, said in a statement.

“Their invaluable work is part of RFA’s responsibility to uphold the truth so that dictators and despots don’t have the last word,” Fang wrote in May in the New York Times.

Experts who monitor global democracy said the information gap created by the administration will embolden U.S. competitors such as Russia and China, which already are ramping up their efforts to shape public opinion.

Barbara Wejnert, a political sociologist at the University at Buffalo who studies global democracies, said diplomatic efforts through U.S. broadcasters and democracy nonprofits helped precipitate a “rapid increase in democratizing countries” in the late 20th century.

“Especially today when the truth is distorted and people don’t trust governments, spreading the notion of freedom and democracy through media is even more vital,” she said.

Fernando writes for the Associated Press.

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Trump visits Saudi Arabia, Qatar, UAE: What to know | Donald Trump News

United States President Donald Trump will undertake a three-day tour of the Gulf for his first state visit since retaking office in January.

The trip begins in Saudi Arabia, followed by Qatar and the United Arab Emirates.

It marks Trump’s second foreign visit as president after he attended Pope Francis’s funeral in Rome in April.

Here is what to know about the trip and what is on the agenda:

When and where is Trump visiting?

Trump will fly out of the US on Monday and start his trip in the Saudi capital, Riyadh, on Tuesday.

He is expected to attend a Gulf summit in the city on Wednesday, visit Qatar later that day and conclude his visit in the UAE on Thursday.

Saudi Arabia was the first country Trump visited during his first term as well, breaking the tradition of US presidents starting with the United Kingdom, Canada or Mexico.

INTERACTIVE-Trumps Gulf Middle East visiting schedule-MAY12-2025-1747057791
(Al Jazeera)

What is on Trump’s agenda?

His objectives are securing major economic deals and making diplomatic progress on issues that impact the region, including a Gaza ceasefire and stalled Saudi-Israel normalisation talks.

The focus on economic deals comes as the US recorded a drop in its economic output in the first quarter, its first in three years.

On Wednesday, Trump said he will also decide during his trip how the US refers to the “Persian Gulf”.

US media reported that he may decide to refer to the body of water as the Arabian Gulf or the Gulf of Arabia.

Saudi Arabia: Normalisation, business deals and weapons

Trump’s Middle East envoy Steve Witkoff said the president wants to expand the Abraham Accords, under which the UAE and Bahrain recognised Israel during Trump’s first term, to include Saudi Arabia.

Talks were reportedly under way on Saudi Arabia joining the accords, but after Israel began its war on Gaza in October 2023, Saudi Crown Prince Mohammed bin Salman (MBS) paused those discussions.

Saudi officials have said they won’t move forward unless there is real progress towards a two-state solution for Palestine, leading to speculation that Trump may propose a US-backed framework to end the war and revive normalisation efforts during this visit.

In a shift from past US policy, the Trump administration has uncoupled discussions on a Saudi nuclear agreement and normalisation with Israel, which US President Joe Biden’s administration had held as a condition for nuclear cooperation.

Riyadh wants US help building a civilian nuclear programme, which Israel has raised concerns about and had wanted it tied to normalisation.

Trump’s main focus will be economic partnerships as he meets with MBS and attends a Saudi-US investment forum. He wants to secure a $1 trillion Saudi investment in US industries, expanding on a $600bn pledge made by the crown prince earlier this year.

Saudi Arabia is also expected to announce more than $100bn in US arms purchases, including missiles, radar systems and transport aircraft.

Other key issues include reviving a scaled-down US-Saudi defence pact.

trump and mbs
Trump meets MBS during his first term as US President [File: Jonathan Ernst/Reuters]

UAE: Investment in the US and cooperation on tech goals

In the UAE, Trump is to meet with President Mohammed bin Zayed Al Nahyan to discuss investment opportunities in sectors such as artificial intelligence, semiconductors, energy and manufacturing.

In March, the UAE announced a $1.4 trillion investment plan for those sectors in the US over the next decade.

Meanwhile, Trump is expected to lift Biden-era export restrictions on advanced technology as the UAE seeks US microchips and artificial intelligence technology to support its goal of becoming a global AI leader by 2031.

Qatar: Military cooperation, regional security and Syria

In Qatar, where the largest US military base in the Middle East is located, Trump’s agenda includes meetings with the emir, Sheikh Tamim bin Hamad Al Thani, to discuss military cooperation and regional security.

Doha, which has close ties with Syria’s new president, Ahmed al-Sharaa, may also seek Trump’s support in easing sanctions on Syria.

As a key partner in regional mediation, Qatar is also expected to discuss Gaza ceasefire efforts with Trump.

trump and emir
Trump meets Qatar’s Emir at the White House in 2019 [Kevin Lamarque/Reuters]

Why is Israel not on the itinerary?

Trump’s decision to skip Israel during this tour comes amid heightened tensions in Gaza, where Israel’s military has intensified its operations after breaking a ceasefire on March 18.

“Nothing good can come out of a visit to Israel at the moment,” a US official told the Axios news website.

Since it broke the ceasefire, Israel has continued extensive air strikes on Gaza while voicing concerns over what it sees as a decline in US support.

Recent reports from US and Israeli media also suggest growing tensions between Trump and Israeli Prime Minister Benjamin Netanyahu as the Trump administration signals it may act independently on Middle East policy without waiting for the Israeli leader.

Israeli political commentator Ori Goldberg told Al Jazeera: “At the moment, Israel is at odds with [Trump’s] overall goal, promising continuous fire.

“I think the mistrust between Trump and Netanyahu has been quite extensive for some time.”

How are countries responding to this visit?

In the lead-up to Trump’s visit, Saudi Arabia, Qatar and the UAE pledged significant investments in the US, signalling an interest in deepening economic ties.

However, Trump’s trip also follows resistance in the region over his proposal for the US to redevelop Gaza and relocate its residents to other Arab countries.

In a meeting of Arab leaders in Riyadh in February, officials from countries including Egypt, Qatar, the UAE and Kuwait rejected Trump’s plan, emphasising the need for Palestinian self-determination and regional stability.

 

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Ex-UK home secretary: Trump unlikely to yield peace between Ukraine, Russia | Russia-Ukraine war News

Former British Home Secretary Charles Clarke has expressed little faith that United States President Donald Trump’s “combination of bullying and flattering” will produce a lasting ceasefire in Ukraine.

Trump, on April 17, presented Russia and Ukraine with a “final” ceasefire offer, which forces Kyiv to legally cede Crimea to Moscow, without offering it security guarantees.

“My picture from the outset, which is essentially pessimistic, is that Trump wanted his big moment and in the same way as with North Korea, he thought he could [coax Russia] into a situation,” said Clarke.

Trump had similarly tried to force North Korea into nuclear disarmament in 2019.

“I don’t myself see how [Ukrainian President Volodymyr] Zelenskyy or Ukraine as a whole could ever concede de jure control of Crimea to Russia. They could concede de facto control, but Trump didn’t seem to take that distinction,” Clarke said.

“He’s shaken things up, but I think he’s been obviously far too credulous to [Russian President Vladimir] Putin and to Russia in the whole process.”

Clarke spoke to Al Jazeera on the sidelines of the 16th Conference on Baltic Studies in Europe, hosted recently by Cambridge University’s Centre for Geopolitics, which Clarke co-directs with Brendan Simms, a professor of European geopolitics.

Can Europe face Russia?

The prospect of a possible ceasefire is rarely out of the headlines.

Over the weekend, Putin said Russia would engage in direct talks with Ukraine “without preconditions” – a rare offer throughout the conflict – after European leaders met Zelenskyy in Kyiv to call for a 30-day truce.

Ukraine and Europe have presented a ceasefire document, which, unlike Trump’s plan, makes no territorial concessions to Russia three years after it invaded Ukraine. The question is whether they are willing and able to back it with continued military effort if Russia and the US reject it.

“The scenario of a complete American withdrawal may be overly bleak right now, but it’s definitely a possibility,” said Simms.

Should Europe then offer Ukraine an independent security guarantee?

“I do think we should do that, but I think we should only do it if we are genuinely committed to going the full mile with Ukraine,” said Simms.

“I could quite easily see, for instance, a discourse in a country like Germany, which would say something like, ‘Well, it’s awful what’s happening in Ukraine, Trump is awful, [but] no we’re not going to do anything to help Ukraine, and we are going to use Trump as an excuse to walk away from supporting Ukraine’,” Simms said. “That is very much a discourse you’re beginning to hear in German public opinion.”

INTERACTIVE-WHO CONTROLS WHAT IN UKRAINE-1746606043

Both Clarke and Simms believed the Russian army’s ability to win an uncontestable military victory in Ukraine has been overestimated thanks to narratives touted by the Kremlin.

“There’s been far too much belief that the Russians have got an effective military and economic machine,” said Clarke, citing the Russian failure to take Kyiv in 2022 and losing control of the Black Sea to an adversary without a navy.

Russia’s territorial gains in Ukraine have slowed down dramatically, two separate analyses found last month.

The Ministry of Defence of the United Kingdom estimated that Russian forces seized 143sq km (55sq miles) of Ukrainian land in March, compared with 196sq km (75sq miles) in February and 326sq km (125sq miles) in January.

The Institute for the Study of War, a Washington, DC-based think tank, spotted the same trend, estimating Russian gains of 203sq km (78sq miles) in March, 354sq km (136sq miles) in February and 427sq km (165sq miles) in January.

This pattern of diminishing returns had started in 2024, a year when Russia wrested away just 4,168sq km (1,610sq miles) of fields and abandoned villages – equivalent to 0.69 percent of Ukraine, the ISW determined in January.

Those meagre gains came at the cost of 430,790 soldiers, the equivalent of 36 Russian motorised rifle divisions, outnumbering Russia’s losses in 2022 and 2023 combined, said Ukraine’s Ministry of Defence.

As Russia prepared to celebrate the 80th anniversary of victory in World War II, its losses in Ukraine were approaching the one million mark, Ukraine’s Defence Ministry said.

Al Jazeera is unable to independently verify casualty tolls.

“They do have weight of numbers on their side, but weight of numbers only counts if you’ve got willing fighters,” said Clarke. “And there’s a great deal of evidence that there’s real problems for the Russian leadership in terms of the attitude of Russian troops and Russian positions.”

While Europe could ultimately step up defence industrial capacity, Clarke cautioned that Europe would nonetheless struggle to replace US intelligence, political coherence and command and control.

A European force for the Baltic

These issues have recently come to the fore, as Europe grappled with the possibility of fielding a peacekeeping ground force in Ukraine.

Simms argued in favour of creating it, but against deploying it in Ukraine as a peacekeeping force.

One reason is that European militaries are not trained for the drone warfare now being developed in Ukraine and will not be effective, he said.

“The other consideration is that the Ukrainian army is our most effective ally. If we deploy forces as part of a peace deal, which will end the war in Ukraine by definition and take the Ukrainians out of the conflict, we will end up in a situation where our mobile force, our only deployable force, the preponderance of it will be fixed in Ukraine. Vladimir Putin will no longer be fixed in Ukraine. He can pivot to face the Baltic states in the high north, and the Ukrainians will no longer be in the field. So that will be almost like … a self-inflicted wound.”

A European mobile force should keep its powder dry for deployment wherever Putin strikes next, said Simms, most likely in the Baltic states, while Europe helps Ukraine in long-range fires – drones and missiles – and provides air cover.

Russia’s psyops: Nuclear blackmail

Clarke said it is “absolutely possible” that Europe and Kyiv can win the war without Washington’s support, but warned of a “high risk strategy” should Ukraine “hold on so long that Russia would fall over”.

Europe and Ukraine could win if Europe overcame its fear of nuclear blackmail, said Simms.

Putin threatened the use of nuclear weapons from the outset, he said, but did not use them when Ukraine claimed back 20,000sq km (7,720sq miles) of its territory in September 2022, nor when Ukraine counter-invaded Russia in August 2024.

An injured woman sits near her house, which was damaged by a Russian airstrike
An injured woman near her house, damaged by a Russian air attack, in a Kyiv neighbourhood, Ukraine, April 24, 2025 [Evgeniy Maloletka/AP Photo]

Yet fear of nuclear retaliation prevented Germany from giving Ukraine its 500km-range (310-mile) Taurus missile, which carries a 450kg warhead and impacts at high speed, devastating its targets.

“It’s not at all clear that if a power station in Moscow were destroyed by a Taurus, that [Putin] would use nuclear weapons. In fact, I think it is unlikely,” said Simms.

“But he has achieved through his rhetoric and through, I think, a misunderstanding of the nature of deterrence, a chilling effect on the West, which has cost the Ukrainians dear and has wasted three years that we had to sort this out – before Donald Trump appeared on the scene.”

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Trump administration and Democrats near deal for more coronavirus aid to small businesses

The Trump administration and congressional Democrats expressed optimism Sunday that more than $450 billion in loans and aid to Americans most affected by the coronavirus outbreak will be enacted this week, providing a measure of financial help as the U.S. death toll passes 40,000.

The bulk of the money is aimed at helping small-business owners, many of them pushed to collapse by the weeks-long shutdown of bars, restaurants, shops and other businesses in much of the country.

The package would also earmark $25 billion for coronavirus testing, which has become a major point of contention between President Trump and the nation’s governors, and $75 billion for beleaguered hospitals, Treasury Secretary Steven T. Mnuchin said Sunday.

After negotiations over the weekend with Mnuchin, House Speaker Nancy Pelosi (D-San Francisco) and Senate Minority Leader Charles E. Schumer (D-N.Y.) both agreed that a deal was close. The Senate could vote as soon as Monday, and House members were told the chamber could meet Wednesday for a recorded vote.

The two sides were still struggling to reconcile differences over whether to add aid to states and municipalities, which Democrats said would provide a lifeline for first responders and workers such as bus drivers who are in close contact with the public.

The deal would swiftly replenish a loan program run by the Small Business Administration that is already essentially tapped out three weeks after it passed as part of a broader $2-trillion rescue package.

Mnuchin said the Paycheck Protection Program would receive about $300 billion. The deal also would add $60 billion to a separate emergency loan program for small businesses that also is out of money, Schumer said. Some of the loans would be specifically targeted to rural and minority-owned businesses.

“I think we’re making a lot of progress,” Mnuchin, who has handled the White House negotiations with congressional leaders, told CNN’s “State of the Union.” Mnuchin said he had “multiple conversations all weekend” with House and Senate leaders of both parties.

“I think we’re very close to a deal today,” he said, “and I’m hopeful that we can get that done.”

Schumer said on the same program that the two sides had “a few more issues to deal with,” but he pronounced himself “very, very hopeful” about an imminent agreement.

Pelosi, appearing on ABC’s “This Week,” agreed that they were “very close” to finalizing a deal.

The Senate plans to hold a brief session Monday afternoon, during which the Republican and Democratic leaders could pass the deal if no single senator objects. The House is slated to hold a similar brief session Tuesday.

Pelosi, who has accused Trump of failing as a leader during the pandemic, said on “Fox News Sunday” that he “deserves an F” for his response to the crisis but that bipartisan efforts to help Americans must move quickly ahead.

Since taking effect last month, the Payroll Protection Program has approved almost 1.7 million taxpayer-backed loans to small businesses, mostly to help keep paying employees. The flood of applications has nearly exhausted the $349 billion available, with thousands of small businesses still in urgent need of help.

Hospitals across the country have been hit hard not only by the wave of patients with COVID-19, the disease caused by the coronavirus, but also by emergency steps such as putting off elective surgeries, which for most are a consistent source of cash flow. The $75 billion earmarked for them is meant to ease that shortfall.

Along with the hospital funding, Democrats have pushed hard for the $25 billion for coronavirus testing, which public health authorities say is crucial to determine how severe the outbreak remains, and who should be isolated, before stay-at-home restrictions are lifted.

On Thursday, three days after Trump had asserted “total” authority to reopen states, he did an abrupt about-face and announced that the governors — not the federal government — should assume responsibility for testing and deciding when it was safe for people to return to work and schools.

Schumer said on CNN that there “ought to be one person” ensuring a “national focus and effort on testing,” instead of a 50-state patchwork approach.

Democrats have sought an additional $150 billion for cities and states suffering a huge loss of tax revenues even as they spend heavily to cope with the crisis, but Republicans have opposed using federal funds to fill local and state budget shortfalls.

“The president is willing to consider that in the next bill but wants to get this over the finish line with a focus on small businesses, hospitals and testing,” Mnuchin said.

Pelosi and other Democrats have portrayed the requested state and local aid as meant to support those on the pandemic’s front lines.

“Our lives and well-being are threatened if health care, police, EMS, teachers and other essential workers are let go,” the House speaker wrote in a letter to colleagues Saturday. “These vital workers need our help now.”

Even those who support more state and local funding acknowledged that might be a losing battle for now.

The Republican head of the National Governors Assn., Maryland’s Larry Hogan, said on CNN that state and municipal aid is “desperately needed” but that perhaps it would have to wait.

“Look, we do not want to hold up funding to these small businesses,” he said.

The president of the U.S. Chamber of Commerce, Suzanne Clark, called the latest proposal “a good start” but said lawmakers must move quickly.

“We know that the small businesses out there are really hurting,” she said on CBS’ “Face the Nation.” ”And every hour and day that goes by without this assistance is really hurting them.”

Mnuchin was asked on CNN if the delivery of $1,200 checks to individual Americans, part of the previous aid package, was delayed because Trump wanted to put his name on them. In the end, his name appears in the memo line but not as a signature on the checks.

Critics said either move suggested that the funds were somehow Trump’s personal largesse rather than the disbursement of taxpayer-supplied federal funds.

Mnuchin said that it would have been permissible to use the president’s signature rather than that of a Treasury official, but that the idea was dropped because it would have caused a delay. In any event, he said, the notion didn’t originate with Trump.

“That was my idea,” Mnuchin said. “He is the president, and I think it’s a terrific symbol to the American public.”

Times staff writer Jennifer Haberkorn contributed to this report.

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Trump fires U.S.’ top copyright official

May 12 (UPI) — The Trump administration fired the United States’ top copyright official over the weekend, following the dismissal of the librarian of Congress late last week.

Rep. Joe Morelle, the ranking Democrat on the Committee on House Administration, confirmed in a statement that Shira Perlmutter was let go Saturday as the director of the U.S. Copyright Office and Register of Copyrights.

Politico was the first to report on Perlmutter’s firing.

“Donald Trump’s termination of Register of Copyrights Shira Perlmutter is a brazen, unprecedented power grab with no legal basis,” Morelle, D-N.Y., said.

“Register Perlmutter is a patriot, and her tenure has propelled the Copyright Office into the 21st century by comprehensively modernizing its operations and setting global standards on the intersection of AI and intellectual property.”

Perlmutter’s firing came two days after the administration fired Carla Hayden, the first woman and first Black person to serve as the librarian of Congress, who oversees the register of Copyrights.

A day before she was let go, Perlmutter’s office released a long-awaited report on the use of copyrighted works and artificial intelligence, an industry that Elon Musk, a financial backer of President Donald Trump’s and head of the Department of Government Efficiency, is highly involved in.

The report raises questions and concerns about the use of copyrighted material and intellectual property to train generative AI systems.

Last month, Jack Dorsey, a co-founder of the social media platform formerly known as Twitter, now X, called for the erasure of all intellectual property law, meaning removing protections such as patents and copyrights, from such works.

“I agree,” Musk, who bought Twitter and renamed it X, said in response.

Morelle, in his statement, said it was no coincidence that Perlmutter was fired “less than a day after she refused to rubber-stamp Elon Musk’s efforts to mine troves of copyrighted works to train AI models.”

Musk owns artificial intelligence company xAI.

The American Federation of Musicians expressed its appreciation to Perlmutter in a statement on Sunday, saying she had “served the American people with unrivaled expertise for decades.”

“Her unlawful firing will gravely harm the entire copyright community,” the world’s largest organization of professional musicians said. “She understood what we all know to be true: human creativity and authorship are the foundation of copyright law — and for that, it appears, she lost her job.”

Hayden appointed Perlmutter to the register of copyrights and director of the U.S. Copyright Office in October 2020, according to her official biography.

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Trump to sign executive order to tie U.S. drug prices to other countries

May 12 (UPI) — U.S. President Donald Trump on Sunday night said he will sign an executive order to reduce drug prices in the United States by between 30% and 80% with the aim of equalizing global prices.

No details of the executive order, which Trump said he’d sign Monday morning, were released, and it was not immediately clear how exactly the order would work.

He made the announcement in a post to his Truth Social platform, calling the executive order “one of the most consequential … in our Country’s history.”

“Prescription Drug and Pharmaceutical prices will be REDUCED, almost immediately, by 30% to 80%. They will rise throughout the World in order to equalize and, for the first time in many years, bring FAIRNESS TO AMERICA!”

In the statement, Trump said he would be instituting a “MOST FAVORED NATION’S POLICY whereby the United States will pay the same price as the Nation that pays the lowest price.”

He said the executive order would be signed 9 a.m. EDT Monday at the White House.

Trump had tried during his first term to institute a Most Favored Nation policy via executive order to tie U.S. prescription drug prices for Medicare to the world’s cheapest price tags but was met with successful legal challenges from the pharmaceutical industry.

PhRMA, a pharmaceutical trade group, criticized the original version of the plan from Trump’s first term as “bad policy,” stating it will limit seniors’ access to existing medicine and hamper development of new drugs.

Dr. Houman David Hemmati, a California physician and critic of California’ s Democratic governor, Gavin Newsom, said the policy is “a strong step toward fairness” but does present risks.

On X, he said it could limit patient access to drugs in those countries where the drugs’ prices are cheapest, as drug makers might pull out of those markets. It could also affect development, especially of generic drugs, which could also be pulled from shelves.

“A generic priced very low abroad might disappear if the U.S. demands that price, impacting access to essentials like insulin,” he said, adding that countries reliant on low prices might face drug access issues, and the United States might see delays in new drug launches.

According to a January 2024 report from the Health and Human Services’ Office of the Assistant Secretary for Planning and Evaluation, the prices across all drugs in the United States were at least 2.78 times higher than in comparison countries and at least 3.22 times as high for brand drugs.

In his Sunday night statement, Trump said that with his new policy, “Our Country will finally be treated fairly and our citizens Healthcare Costs will be reduced by numbers never even thought of before.”

He said the United States will save trillions of dollars.

In April, Trump signed an executive order directing the Department of Health and Human Services to standardize Medicare payments to reduce the price of prescription drugs.

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