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Mexico says it will impose retaliatory tariffs on US with details coming Sunday
U.S. Court News |
2025/03/06 06:11
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Mexico’s president said Tuesday the country will respond to the 25% tariffs imposed by the United States with retaliatory tariffs on U.S. goods, with details to come.
Mexico will announce the targeted products and other measures Sunday at an event in Mexico City’s central plaza, a delay that suggests Mexico hopes to de-escalate the trade war set off by U.S. President Donald Trump.
President Claudia Sheinbaum said the government is “going to wait” because she had planted to speak to Trump this week. Mexico’s government has said since January it had a plan ready for this scenario.
“There is no motive or reason, nor justification that supports this decision that will affect our people and our nations,” Sheinbaum added.
China and Canada responded immediately with measures Tuesday.
Hours later, after stock markets took a hit, U.S. Secretary of Commerce Howard Lutnick said in a video posted to X that he was on the phone “all day” with Mexican and Canadian authorities.
“It’s not going to be a pause. None of that pause stuff,” he said. “Somewhere in the middle will likely be the outcome.”
Some 80% of Mexico’s exports go to the United States, part of more than $800 billion in trade between the countries last year.
Sheinbaum called “offensive, defamatory and without support” the White House allegations that Mexican drug traffickers persist because of “an intolerable relationship” with the Mexican government. Trump has said he’s targeting Mexico to force it to crack down on migrants and drugs entering the U.S.
She listed the achievements of her young administration against Mexico’s drug cartels, including seizing more than a ton of fentanyl and dismantling 329 methamphetamine labs. She also noted that Mexico sent the U.S. 29 drug cartel figures it requested last week.
“It’s inconceivable that they don’t think about the damage this is going to cause to United States citizens and businesses,” Sheinbaum said. “No one wins with this decision.”
Mexico’s president also noted that Trump on Monday said he respected her, and she said she respected him as well: “The thing is finding a way to collaborate, of coordinating without subordinating anyone for the benefit of our people.”
Trade experts expressed doubt over how long Trump’s tariffs would last, saying they would boost prices for American consumers including Trump’s base.
“It is going to do nothing to help with the food inflation in the U.S.,” said Timothy Wise, an expert on agricultural trade between Mexico and the U.S. “I don’t see it as sustainable. I don’t find it plausible that corporate folks who surround Trump are going to sit back and allow him to destroy their foreign markets.”
Gabriela Siller, economic analyst with Mexican financial group Banco Base, said in the short term, the tariffs could boost inflation, disrupt economic trade flows and slow economic growth for both countries.
But as she watched the gradually falling Mexican peso, she also noted “the exchange rate and volatility have not skyrocketed, as the market speculates that the U.S. government could withdraw the tariffs soon.”
Mexico has the most to potentially lose in a trade war with the U.S., and economists say extended tariffs would plunge Mexico’s economy into a recession. |
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Defense secretary defends Pentagon firings, says more dismals may come
U.S. Court News |
2025/02/23 10:13
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Defense Secretary Pete Hegseth insists President Donald Trump ’s abrupt firing of the nation’s senior military officer amid a wave of dismissals at the Pentagon wasn’t unusual, brushing aside outcry that the new administration is openly seeking to inject politics into the military. He also suggested more firings could come.
“Nothing about this is unprecedented,” Hegseth told “Fox News Sunday” about Air Force Gen. CQ Brown Jr. being removed Friday night as chairman of the Joint Chiefs of Staff. “The president deserves to pick his key national security advisory team.”
Hegseth said “there are lots of presidents who made changes” citing former commanders in chief from Franklin D. Roosevelt to George H.W. Bush to Barack Obama, who the defense secretary said “fired or dismissed hundreds” of military officials.
Months into his first term, Obama relieved Army Gen. David McKiernan as the commander of U.S. forces in Afghanistan. Trump, however, vowed while running for his second term to eradicate “woke” ideologies from the military and moving swiftly to dismiss so many top leaders means keeping a campaign promise.
Hegeseth and Trump have made no secret about focusing on pushing aside military officers who have supported diversity, equity and inclusion in the ranks. The administration says its is on better fortifying a lethal fighting force.
Brown was just the second Black general to serve as chairman. His 16 months in the post were consumed with the war in Ukraine and the expanded conflict in the Middle East. Trump in 2020 nominated Brown as Air Force’s chief of staff.
Trump wants to replace Brown Air Force Lt. Gen. Dan “Razin” Caine, who retired in December. It is unclear what recalling Caine to active-duty service will require. The position requires Caine to be confirmed by the Senate.
Hegseth said Friday’s dismissals affected six three- and four-star generals and were “a reflection of the president wanting the right people around him to execute the national security approach we want to take.”
He called Brown “honorable” but said he is “not the right man for the moment,” without citing specific deficiencies. After the 2020 murder of George Floyd, Brown in a video spoke of his experience as a Black pilot, apparently making him fodder for the Trump administration’s wars against inclusion initiatives in the military.
Of Caine, the Defense secretary said that Trump “respects leaders who untie the hands of war fighters in a very dangerous world.”
Retired Gen. George Casey, commander of U.S. and multinational forces in Iraq from 2004 to 2007 under Republican President George W. Bush, called the firings “extremely destabilizing.” He also noted that the Trump administration can change Pentagon policy without changing personnel, but added, that what happened is “”within the president’s prerogative.”
“That’s his prerogative,” Casey told ABC’s “This Week.” “He is the commander in chief of the armed forces.”
Still, Sen. Jack Reed of Rhode Island, the ranking Democrat on the Senate Armed Services Committee told ABC that the firings were “completely unjustified” and that “apparently, what Trump and Hegseth are trying to do is to politicize the Department of Defense.”
Hegseth was also asked on Fox News about officials potentially compiling lists of more defense officials they plan to fire. He said there was no list but suggested that more dismissals could indeed be coming.
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What changes to the CHIPS act could mean for AI growth and consumers
U.S. Court News |
2025/02/15 10:16
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Even as he’s vowed to push the United States ahead in artificial intelligence research, President Donald Trump’s threats to alter federal government contracts with chipmakers and slap new tariffs on the semiconductor industry may put new speed bumps in front of the tech industry.
Since taking office, Trump has said he would place tariffs on foreign production of computer chips and semiconductors in order to return chip manufacturing to the U.S. The president and Republican lawmakers have also threatened to end the CHIPS and Science Act, a sweeping Biden administration-era law that also sought to boost domestic production.
But economic experts have warned that Trump’s dual-pronged approach could slow, or potentially harm, the administration’s goal of ensuring that the U.S. maintains a competitive edge in artificial intelligence research.
Saikat Chaudhuri, an expert on corporate growth and innovation at U.C. Berkeley’s Haas School of Business, called Trump’s derision of the CHIPS Act surprising because one of the biggest bottlenecks for the advancement of AI has been chip production. Most countries, Chaudhuri said, are trying to encourage chip production and the import of chips at favorable rates.
“We have seen what the shortage has done in everything from AI to even cars,” he said. “In the pandemic, cars had to do with fewer or less powerful chips in order to just deal with the supply constraints.”
The Biden administration helped shepherd in the law following supply disruptions that occurred after the start of the COVID-19 pandemic ? when a shortage of chips stalled factory assembly lines and fueled inflation ? threatened to plunge the U.S. economy into recession. When pushing for the investment, lawmakers also said they were concerned about efforts by China to control Taiwan, which accounts for more than 90% of advanced computer chip production.
As of August 2024, the CHIPS and Science Act had provided $30 billion in support for 23 projects in 15 states that would add 115,000 manufacturing and construction jobs, according to the Commerce Department. That funding helped to draw in private capital and would enable the U.S. to produce 30% of the world’s most advanced computer chips, up from 0% when the Biden-Harris administration succeeded Trump’s first term.
The administration promised tens of billions of dollars to support the construction of U.S. chip foundries and reduce reliance on Asian suppliers, which Washington sees as a security weakness. In August, the Commerce Department pledged to provide up to $6.6 billion so that Taiwan Semiconductor Manufacturing Co. could expand the facilities it is already building in Arizona and better ensure that the most advanced microchips are produced domestically for the first time.
But Trump has said he believes that companies entering into those contracts with the federal government, such as TSMC, “didn’t need money” in order to prioritize chipmaking in the U.S.
“They needed an incentive. And the incentive is going to be they’re not going to want to pay at 25, 50 or even 100% tax,” Trump said. TSMC held board meetings for the first time in the U.S. last week. Trump has signaled that if companies want to avoid tariffs they have to build their plants in the U.S. ? without help from the government. Taiwan also dispatched two senior economic affairs officials to Washington to meet with the Trump administration in a bid to potentially fend off a 100% tariff Trump has threatened to impose on chips.
If the Trump administration does levy tariffs, Chaudhuri said, one immediate concern is that prices of goods that use semiconductors and chips will rise because the higher costs associated with tariffs are typically passed to consumers.
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Steve Bannon pleads guilty and avoids jail time in border wall fraud case
U.S. Court News |
2025/02/13 20:15
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Steve Bannon pleaded guilty on Tuesday to defrauding donors to a private effort to build a wall on the U.S. southern border, ending a case the conservative strategist decried as a “political persecution.”
Spared from jail as part of a plea deal, he left court saying he “felt like a million bucks.”
Bannon, a longtime ally of President Donald Trump, pleaded guilty in state court in Manhattan to one count of scheme to defraud, a low-level felony. The case involved We Build the Wall, a non-profit that Bannon himself once suspected was a scam.
Bannon, 71, must stay out of trouble for three years to avoid additional punishment, including possible jail time. He also can’t raise money or serve as an officer or director for charities in New York and can’t use, sell, or possess any data gathered from border wall donors. Bannon had been scheduled to go to trial March 4.
His lawyer, Arthur Aidala, said Bannon wanted to “put up a fight,” but opted to plead guilty after weighing how a jury in heavily Democratic Manhattan might judge him. Under the deal, prosecutors agreed to drop money laundering and conspiracy charges against him.
Bannon’s plea deal came just days after U.S. Attorney General Pam Bondi ordered the Justice Department to investigate what Trump called the “ weaponization of prosecutorial power.”
Outside court, Bannon urged Bondi to immediately open criminal investigations into Manhattan District Attorney Alvin Bragg, whose office prosecuted him, and New York Attorney General Letitia James, who sued Trump over his business practices and is leading legal challenges to his administration’s policies. Both are Democrats.
Bragg “can call a grand jury at any time” and “set up criminal charges on the most bogus efforts,” Bannon said. He called James the “queen of lawfare” and warned that Trump and his allies “ought to be worried about this out-of-control city.”
Bragg and James’ office didn’t immediately respond to Bannon’s comments.
Bragg took up the case and charged Bannon with state offenses after Trump cut a federal prosecution short with a pardon in the final hours of his first term in 2021. Presidential pardons apply only to federal crimes, not state offenses.
Bannon was charged with falsely promising donors, including some in New York, that all money given to We Build the Wall would go toward erecting a wall along the U.S.-Mexico border. Instead, prosecutors alleged the money was used to enrich Bannon and others involved in the project.
The campaign, launched in 2018 after Trump fired Bannon as his chief strategist, quickly raised over $20 million and privately built a few miles of fencing along the border. It soon ran into trouble with the International Boundary and Water Commission, came under federal investigation and drew criticism from Trump, the Republican whose policy the charity was founded to support. |
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