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From fighting disease to protecting the Amazon rainforest, USAID has big impact across the globe
The Trump administration’s decision to close the U.S. Agency for International Development has drawn widespread criticism from congressional Democrats and raised questions and concern about the influence billionaire ally Elon Musk wields over the federal government.
The United States is by far the world’s largest source of foreign assistance, although several European countries allocate a much bigger share of their budgets to aid. USAID funds projects in some 120 countries aimed at fighting epidemics, educating children, providing clean water and supporting other areas of development.
Here is a look at USAID’s impact around the world:
Protecting the Amazon rainforest and fighting cocaine in South America
USAID has been critical in providing humanitarian assistance in Colombia, conservation efforts in the Brazilian Amazon and coca eradication in Peru. Recent USAID money has also supported emergency humanitarian aid to more than 2.8 million Venezuelans who fled economic crisis.
In 2024 alone, the agency transferred some $45 million to the U.N. World Food Program, mostly to assist Venezuelans.
In Brazil, USAID’s largest initiative is the Partnership for the Conservation of Amazon Biodiversity, which focuses on conservation and improving livelihoods for Indigenous peoples and other rainforest communities.
Over in Peru, part of USAID’s $135 million funding in 2024 was dedicated to financing cocaine-production alternatives such as coffee and cacao. The humanitarian agency has been seeking to curb production of the drug since the early 1980s.
Disease response, girls’ education and free school lunches in Africa
Last year, the U.S. gave the sub-Saharan region more than $6.5 billion in humanitarian assistance. But since Trump’s announcement, HIV patients in Africa found locked doors at clinics funded by an acclaimed U.S. program that helped rein in the global AIDS epidemic.
Known as one of the world’s most successful foreign aid program, the President’s Emergency Plan for AIDS Relief, or PEPFAR, has been credited with saving more than 25 million lives, largely in Africa.
“The world is baffled,” said Aaron Motsoaledi, the health minister of South Africa, the country with the most people living with HIV, after the U.S. freeze on aid.
Motsoaledi says the U.S. funds nearly 20% of the $2.3 billion needed each year to run South Africa’s HIV/AIDS program through PEPFAR, and now the biggest response to a single disease in history is under threat.
The effects of halting U.S. aid are also rippling across sub-Saharan Africa. In Ghana, the Chemonics International development group said it's pulling logistics for programs in maternal and child health, malaria response and HIV.
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Education programs have been halted in Mali, a conflict-battered West African nation where USAID has become the country’s main humanitarian partner after others left following a 2021 coup. The U.S. aid agency supports about 40% of all humanitarian operations, according to Elmhedi Ag Wakina, president of the Platform of National Organizations Active in Humanitarian Affairs in Mali.
In civil-war-torn Sudan, which is grappling with cholera, malaria and measles, the aid freeze means 600,000 people will be at risk of catching and spreading those diseases, said an official who spoke on condition of anonymity because they were not authorized to speak publicly on the matter.
Hospitals in war-ravaged Syria
Doctors of the World Turkey says it has been forced to lay off 300 staff and shutter 12 field hospitals it runs across northern Syria, a region devastated by years of war and a huge 2023 earthquake. Hakan Bilgin, the organization’s president, said it relies on USAID for 60% of its funding and has had to cut its daily consultations from 5,000 to 500.
“As a medical organization providing life-saving services, you’re basically saying, ’Close all the clinics, stop all your doctors, and you’re not providing services to women, children, and the elderly," Bilgin said.
Bilgin said the impact on northern Syria, where millions rely on outside medical aid, could be catastrophic.
“Imagine that aid disappearing — not just for us, but for many other organizations that depended on USAID,” he said in the group’s Istanbul office, surrounded by half-unpacked boxes and worried colleagues. “The real impact is bigger than we can measure right now.”
Support for democracy and media in Myanmar
The freeze of foreign assistance from USAID include $39 million for rights, democracy, and media in Myanmar, whose military seized power from the elected government of Aung San Suu Kyi in 2021, a human rights group said Thursday.
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The group Human Rights Myanmar said the frozen funds “are vital for organizations challenging military rule and promoting democracy, which advance U.S. interests by upholding American values and countering China’s authoritarian influence.”
Myanmar’s military government is the most repressive in Southeast Asia, clamping down on free media, imprisoning thousands of nonviolent critics and political rivals and carrying out a brutal war against pro-democracy resistance forces, heedless of civilian casualties.
The freeze includes “$8 million for seven projects defending human rights; $30 million for nine initiatives promoting democracy; and $1 million for two programs supporting independent media,” it said.
Human Rights Myanmar, whose members are rights workers forced to act covertly inside the Southeast Asian nation, said that the freeze also “suspended $22 million for humanitarian aid, $36 million for agriculture, $22 million for health and $30 million for education.”
The civil war in Myanmar has caused a severe humanitarian crisis, especially affecting more than 3 million displaced people, according to U.N. estimates.
A busy shelter left without a doctor in Mexico
In the southern Mexican city of Villahermosa, the Peace Oasis of the Holy Spirit Amparito shelter is one of several beneficiaries of U.S. humanitarian assistance to those fleeing persecution, crisis or violence.
However, under the funding freeze, the charitable organization that runs the shelter had to cut its only doctor as well as a social worker and child psychologist. The shelter has since appealed to the Mexican government for alternate funding for programs managed by the United Nations to pay for flights and bus rides to Mexico’s border with Guatemala for migrants who want to return home.
“The crisis is only going to worsen,” the shelter said in a statement. “The most affected will be the population we serve.”
Wartime help in Ukraine
U.S. funding in Ukraine has helped to pay for fuel for evacuation vehicles, salaries for aid workers, legal and psychological support, and tickets to help evacuees reach safer locations.
That includes the cost of using a concert hall in eastern Ukraine as a temporary center for civilians fleeing the relentless Russian bombardment. That shelter is now in peril because 60% of the costs — equivalent of $7,000 a month to run — were being covered by the U.S.
Ukrainian President Volodymyr Zelenskyy says his government expects $300 million to $400 million in aid to be cut. Most of that was for the energy sector that has been targeted by Russia.
1 year ago
Trump withdraws US from UN human rights body, cuts Palestinian refugee funding
President Donald Trump announced Tuesday that the United States will withdraw from the top UN human rights body and will not resume funding for the UN agency helping Palestinian refugees.
The US left the Geneva-based Human Rights Council last year, and it stopped funding the agency assisting Palestinian refugees, known as UNRWA, after Israel accused it of harbouring Hamas militants who participated in the surprise October 7, 2023, attacks in southern Israel, which UNRWA denies.
Trump’s announcement came on the day he met with visiting Israeli Prime Minister Benjamin Netanyahu, whose country has long accused both the rights body and UNRWA of bias against Israel and antisemitism.
Trump's executive orders also call for a review of American involvement in the Paris-based UN Educational, Scientific and Cultural Organization, known as UNESCO, and a review of US funding for the United Nations in light of “the wild disparities in levels of funding among different countries.”
The United States, with the world's largest economy, pays 22% of the UN's regular operating budget, with China the second-largest contributor.
“I’ve always felt that the UN has tremendous potential,” Trump told reporters in the Oval Office. “It’s not living up to that potential right now. ... They've got to get their act together.”
He said the UN needs “to be fair to countries that deserve fairness,” adding that there are some countries, which he didn't name, that are “outliers, that are very bad and they're being almost preferred.”
Before Trump's announcement, UN spokesman Stephane Dujarric reiterated the Human Rights Council's importance and UNRWA's work in delivering “critical services to Palestinians.”
Trump also pulled the US out of the Human Rights Council in June 2018. His ambassador to the UN at the time, Nikki Haley, accused the council of “chronic bias against Israel” and pointed to what she said were human rights abusers among its members.
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President Joe Biden renewed support for the Human Rights Council, and the US won a seat on the 47-nation body in October 2021. But the Biden administration announced in late September that the United States would not seek a second consecutive term.
Trump's order on Tuesday has little concrete effect because the United States is already not a council member, said council spokesperson Pascal Sim.
But like all other UN member countries, the US automatically has informal observer status and will still have a seat in the council’s ornate round chamber at the U.N. complex in Geneva.
UNRWA was established by the UN General Assembly in 1949 to provide assistance for Palestinians who fled or were expelled from their homes before and during the 1948 Arab-Israeli war that followed Israel’s establishment, as well as for their descendants.
It provides aid, education, health care and other services to some 2.5 million Palestinians in Gaza, the occupied West Bank and East Jerusalem, as well as 3 million more in Syria, Jordan and Lebanon.
Before the October 7 Hamas attacks, UNRWA ran schools for Gaza's 650,000 children as well as health facilities, and helped deliver humanitarian aid. It has continued to provide health care and been key to the delivery of food and other aid to Palestinians during the war.
The first Trump administration suspended funding to UNRWA in 2018, but Biden restored it. The U.S. had been the biggest donor to the agency, providing it with $343 million in 2022 and $422 million in 2023.
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For years, Israel has accused UNRWA of anti-Israeli bias in its education materials, which the agency denies.
Israel alleged that 19 of UNRWA’s 13,000 staff in Gaza participated in the Hamas attacks. They were terminated pending a UN investigation, which found nine may have been involved.
In response, 18 governments froze funding to the agency, but all have since restored support except the United States. Legislation ratifying the US decision halted any American funding to UNRWA until March 2025, and Trump’s action Tuesday means it will not be restored.
1 year ago
Trump invites Modi to White House next week, says official
U.S. President Donald Trump has invited Indian Prime Minister Narendra Modi to visit the White House next week, a White House official confirmed.
The invitation came just hours after a U.S. military plane departed with deported migrants bound for India.
During a conversation on January 27, Trump and Modi discussed immigration, with the U.S. president emphasizing the need for India to purchase more American security equipment and ensure fair bilateral trade.
As a key U.S. partner in countering China’s influence, India aims to strengthen trade ties with Washington while seeking easier access to skilled worker visas.
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Besides, India hopes to avoid potential tariffs, which Trump has previously threatened due to what he calls India's high import duties on American goods.
The United States is India's largest trading partner, with bilateral trade exceeding $118 billion in 2023/24. India recorded a $32 billion trade surplus during this period.
1 year ago
Joe Biden signs with talent agency to shape post-presidency career
Former US President Joe Biden has signed with a Los Angeles talent agency, marking a move in shaping his career after the presidency.
This signing reconnects him with Creative Artists Agency (CAA), which represented him from 2017 to 2020, reports BBC.
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"President Biden is one of America's most respected and influential voices in both national and global matters," said Richard Lovett, co-chair of CAA, in a statement.
He added, "His lifelong dedication to public service embodies unity, optimism, dignity, and possibility. We are deeply honored to partner with him once again."
The agency also has connections with former President Barack Obama and former First Lady Michelle Obama, it said.
At 82, Biden has been relatively quiet about his future plans following his five-decade public service career. However, when leaving the White House in January, he reassured supporters, saying, "We're leaving office, we're not leaving the fight."
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Only two weeks after departing office, there is no clear sign of a new book or project on the horizon.
During his previous tenure with the agency, he released his memoir, “Promise Me, Dad: A Year of Hope, Hardship, and Purpose” in 2017, added the report.
The memoir, which detailed the loss of his eldest son, Beau, became a New York Times number one bestseller and spurred his American Promise book tour, widely viewed as a precursor to his 2020 presidential campaign.
While maintaining a relatively low profile, the former president has been seen around his Delaware home and continues to keep in touch with former aides and associates. He also recently became a great-grandfather with the birth of his granddaughter Naomi's son, the report also said.
Although CAA is typically associated with major movie stars and A-list celebrities, the agency also works with politicians and social advocacy groups.
The Obamas have partnered with CAA through their production company, Higher Ground, which has produced award-winning films and television shows, including the Oscar-winning documentary “American Factory”.
1 year ago
El Salvador offers to take in US deportees, Rubio says
US Secretary of State Marco Rubio announced late on Monday that El Salvador’s president has agreed to accept deportees from the U.S., regardless of nationality, including violent American criminals currently incarcerated in the U.S, reports AP.
President Nayib Bukele “has agreed to the most unprecedented, extraordinary migratory agreement anywhere in the world,” Rubio stated after several hours of discussions with Bukele at his lakeside residence outside San Salvador.
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“We can send them, and he will place them in his prisons,” Rubio said of migrants of all nationalities detained in the U.S. “He has also offered to do the same for dangerous criminals serving sentences in the U.S., even if they are U.S. citizens or legal residents.”
Rubio was in El Salvador to urge its government to take further action in response to President Donald Trump's demands for tougher immigration measures.
Bukele confirmed the offer on X, saying that El Salvador had “offered the United States of America the opportunity to outsource part of its prison system.” He clarified that the country would only accept “convicted criminals” and would charge a fee that would be “relatively low for the U.S. but significant for us, making our entire prison system sustainable.”
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After Rubio’s comments, a U.S. official mentioned that the Trump administration currently has no plans to deport American citizens, though the offer from Bukele was seen as significant. Deporting U.S. citizens would face considerable legal obstacles.
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The U.S. State Department describes El Salvador’s overcrowded prisons as “harsh and dangerous,” noting that many facilities suffer from inadequate sanitation, water, ventilation, temperature control, and lighting.
Rubio had just witnessed a U.S.-funded deportation flight carrying 43 migrants from Panama to Colombia. This followed a stern warning from Rubio to Panama that unless it took immediate action to remove Chinese influence at the Panama Canal, the U.S. would intervene.
Migration was the primary focus during Rubio's five-nation Central American tour, which also includes Costa Rica, Guatemala, and the Dominican Republic. His visit coincides with significant political turmoil in Washington over the future of the U.S. government’s main foreign development agency.
The Trump administration has focused on stopping people from migrating to the U.S., working with regional countries to enhance immigration enforcement and accept deportees from the U.S.
The arrangement Rubio described, in which El Salvador accepts foreign nationals detained in the U.S. for immigration violations, is a “safe third country” agreement. Officials suggested this could be an option for Venezuelan gang members convicted of crimes in the U.S., but Rubio stated that Bukele's offer applied to detainees of any nationality.
Rubio further explained that Bukele had also proposed accepting and incarcerating U.S. citizens or legal residents convicted of violent crimes.
Human rights advocates have expressed concern that El Salvador lacks a consistent policy for asylum seekers and refugees and warned that the agreement might extend beyond violent criminals.
Manuel Flores, secretary-general of the leftist opposition party, the Farabundo Martí National Liberation Front, criticized the “safe third country” plan, calling it a signal that the region is merely Washington’s “backyard to dump the garbage.”
After meeting with Bukele, Rubio signed a memorandum with his Salvadoran counterpart to advance U.S.-El Salvador civil nuclear cooperation, potentially leading to a more formal agreement on nuclear power and medicine.
The deportation flight Rubio witnessed was carrying migrants detained by Panamanian authorities after illegally crossing the Darien Gap from Colombia. The State Department views such deportations as a deterrent, with the U.S. having provided Panama nearly $2.7 million for flights and tickets since the agreement to fund them.
Rubio was present as the flight departed, which was taking 32 men and 11 women back to Colombia. It’s uncommon for a Secretary of State to witness such law enforcement operations, especially in front of cameras.
“Mass migration is one of the great tragedies of the modern era,” Rubio said afterward. “It impacts countries worldwide. We recognize that many of those who seek mass migration are often victims themselves, and it harms everyone.”
This deportation flight coincided with Trump’s threats to penalize countries that do not accept deportation flights from the U.S. He briefly imposed sanctions on Colombia last week after it initially refused two flights, while Panama has been more cooperative, accepting flights of third-country deportees.
Rubio's visit occurs during a freeze in U.S. foreign assistance and stop-work orders halting U.S.-funded programs targeting illegal migration and crime in Central America. The State Department confirmed that Rubio had approved waivers for certain critical programs in the countries he’s visiting, though details were not immediately available.
While Rubio was abroad, U.S. Agency for International Development (USAID) staff were instructed to stay away from the agency’s Washington headquarters following Musk’s announcement that Trump had agreed to shut it down.
Thousands of USAID employees have been laid off, and many programs have been discontinued. Rubio told reporters in San Salvador that he was now the acting administrator of USAID but had delegated day-to-day operations.
This restructuring means that USAID is no longer an independent agency and will now be run by the State Department, a move likely to be challenged in court.
Rubio noted that although some USAID programs would continue, the reorganization was necessary because the agency had become unaccountable to both the executive branch and Congress.
Regarding his recent discussion with Panama’s president on the Panama Canal, Rubio expressed hope that the Panamanians would heed his and Trump’s warnings about China. The issue remains sensitive in Panama, which agreed to withdraw from a Chinese infrastructure initiative but has resisted calls for the U.S. to regain control of the canal.
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“I understand that it’s a delicate issue in Panama,” Rubio told reporters in San Salvador. “We don’t want to have a hostile and negative relationship with Panama. I don’t think we do. We had a frank and respectful conversation, and I hope it will yield results.”
Back in Washington, Trump was more forceful, stating: "China’s involvement with the Panama Canal won’t last for long, and that’s how it must be."
“We either want it back, or we’ll take very strong actions, or we’ll take it back,” Trump declared. “And China will be dealt with.”
1 year ago
Protesters against deportations block major Los Angeles freeway
Thousands of people in Southern California protested against the mass deportations planned by President Donald Trump on Sunday, including in downtown Los Angeles, where demonstrators blocked a major freeway for several hours, reports AP>
The protesters assembled in the morning at LA's historic Olvera Street, which has ties to Spanish and Mexican heritage, before marching to City Hall. They called for immigration reform and carried banners with messages such as "Nobody is illegal.
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By the afternoon, the marchers had blocked all lanes of U.S. 101, causing significant traffic congestion in both directions and on surface streets. The protesters sat down in the lanes, while a line of California Highway Patrol officers observed. It took over five hours for the freeway to fully reopen, according to CHP Lt. Matt Gutierrez.
Both the CHP and the Los Angeles Police Department reported no arrests.
Elsewhere, hundreds of people gathered in Riverside, where drivers honked and cheered in support of the demonstrators waving flags at an intersection, as reported by the Southern California News Group.
In San Diego, hundreds rallied near the city's convention centre on Sunday.
Meanwhile, in Texas, demonstrators held protests in downtown Dallas against recent arrests by U.S. Immigration and Customs Enforcement. Dallas police estimated around 1,600 people attended the two rallies.
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Marchers carried both Mexican and American flags, with speakers voicing their anger at Trump's rhetoric and his administration's actions to increase deportations. One sign read, “Immigrants Make America Great.”
1 year ago
Americans could feel 'some pain' from trade war: Trump
President Donald Trump said Sunday that Americans could feel “some pain” from the emerging trade war triggered by his tariffs against Canada, Mexico and China, and claimed that Canada would “cease to exist” without its trade surplus with the United States.
The trade penalties that Trump signed Saturday at his Florida resort caused a mix of panic, anger and uncertainty, and threatened to rupture a decades-old partnership on trade in North America while further straining relations with China.
Trump on Sunday night returned from Florida and threatened to impose steeper tariffs elsewhere, telling reporters that the import taxes will “definitely happen” with the European Union and possibly with the United Kingdom as well.
He brushed aside retaliatory measures from Canada, saying, “If they want to play the game, I don’t mind. We can play the game all they want." Trump said he plans to speak with his Canadian and Mexican counterparts on Monday.
By following through on his tariffs campaign pledge, Trump may also have simultaneously broken his promise to voters in last year's election that his administration could quickly reduce inflation. That means the same frustration he is facing from other nations might also spread domestically to consumers and businesses.
“WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!),” Trump said in a social media post. “BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.”
His administration has not said what specific improvements would need to be seen in stopping illegal immigration and the smuggling of fentanyl to merit the removal of the tariffs that Trump imposed under the legal justification of an economic emergency. But Trump, speaking to reporters after Air Force One, landed said that the trade imbalances with Canada and Mexico would also need to be erased as a condition for lifting the tariffs.
The president also tried to clarify his post about the possible inflation, saying on Sunday: “We may have in the short term, a little pain, and people understand that. But long term, the United States has been ripped off by virtually every country in the world.”
Canada imposes retaliatory tariffs on US, sparking trade war
The tariffs are set to launch Tuesday and triggered confusion as Canada's U.S. ambassador, Kirsten Hillman, told ABC News that her country was perplexed by the move because “we view ourselves as your neighbor, your closest friend, your ally.”
In his Truth Social post, Trump took particular aim at Canada, which responded with retaliatory measures. Trump is placing a 25% tariff on Canadian goods, with a 10% tax on oil, natural gas and electricity. Canada is imposing 25% tariffs, more than $155 billion Canadian (US$105 billion), on U.S. products, including alcohol and fruit.
Despite Trump’s assertions that the U.S. does not need Canada, one-quarter of the oil that America consumes per day is from its ally to the north. He reiterated his false claim that America subsidizes Canada by running a trade imbalance, a reflection in part of Canada exporting energy to the U.S.
Trump contended that without that surplus, "Canada ceases to exist as a viable Country. Harsh but true! Therefore, Canada should become our Cherished 51st State. Much lower taxes, and far better military protection for the people of Canada — AND NO TARIFFS!”
Prime Minister Justin Trudeau is encouraging Canadians to buy more Canadian goods, and says Trump's moves will only cause pain across North America. More than 75% of Canada's exports go to the U.S. Canada will first target alcohol, cosmetics and paper products; a second round later will include passenger vehicles, trucks, steel and aluminum products, certain fruits and vegetables, beef, pork, dairy products and more.
Canada is the largest export market for 36 states and Mexico is the largest trading partner of the U.S.
Mexico's president, Claudia Sheinbaum, also announced new tariffs and suggested the U.S. should do more within its own borders to address drug addiction. She and Trudeau spoke after Trump's announcement and agreed “to enhance the strong bilateral relations” between Canada and Mexico, according to the prime minister's office.
The Chinese government said it would take steps to defend its economic interests and intends to file a lawsuit with the World Trade Organization.
For Trump, the open question is whether inflation could be a political pressure point that would cause him to back down. As a candidate, Trump repeatedly hammered Democrats over the inflation under President Joe Biden that resulted from supply chain issues during the coronavirus pandemic, the Biden administration’s own spending to spur the recovery and Russia's invasion of Ukraine.
Trump said his previous four years as president had low inflation, so the public should expect the same if he came back to the White House. But he also said specifically that higher inflation would stagger the U.S. as a nation, a position from which he now appears to be retreating with the promise of even more tariffs to come.
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The U.S. president did not offer details Sunday about when he would impose tariffs elsewhere, but he said they would be coming “pretty soon” for the EU, which is also composed of U.S. allies.
Larry Summers, treasury secretary in the Clinton administration, said the tariffs were a "self-inflicted wound to the American economy."
He told CNN's “Inside Politics” that “on the playground or in international relations, bullying is not an enduringly winning strategy. And that’s what this is.” And the ultimate winner, Summers suggested, would be Chinese leader Xi Jinping because “we’ve moved to drive some of our closest allies into his arms” and “we're legitimating everything he’s doing by violating all the international norms that we set up.”
Outside analyses make clear that Trump's tariffs would hurt the voters that he intended to help, meaning that he might ultimately need to find a resolution.
An analysis by the Budget Lab at Yale shows that if the tariffs were to continue, an average U.S. household would lose roughly $1,245 in income this year, in what would be the overall equivalent of a more than $1.4 trillion tax increase over the next 10 years.
Trump imposes tariffs on Canada, Mexico and China, spurring prospect of inflation and trade conflict
Goldman Sachs, in a Sunday analyst note, stressed that the tariffs go into effect on Tuesday, which means they're likely to proceed “though a last-minute compromise cannot be completely ruled out.”
The investment bank concluded that because of the possible economic damage and possible conditions for removal “we think it is more likely that the tariffs will be temporary but the outlook is unclear.”
1 year ago
Trump imposes tariffs on Canada, Mexico and China, spurring prospect of inflation and trade conflict
President Donald Trump on Saturday signed an order to impose stiff tariffs on imports from Mexico, Canada and China — fulfilling one of his post-campaign commitments to voters that threatened to spark higher inflation and disrupt businesses across North America as the countries vowed harsh measures in response.
Mexico's president immediately ordered retaliatory tariffs and Canada's prime minister said it was “prepared” to quickly respond. Trump’s order includes a mechanism to escalate the rates if the countries retaliate against the U.S.
The decision throws the global economy and Trump's own political mandate to combat inflation into possible turmoil, though the Republican president posted on social media that it was necessary “to protect Americans.”
The tariffs risk an economic standoff with America's two largest trading partners in Mexico and Canada, upending a decades-old trade relationship with the possibility of harsh reprisals by those two nations. The tariffs also if sustained could cause inflation to significantly worsen, possibly eroding voters' trust that Trump could as promised lower the prices of groceries, gasoline, housing, autos and other goods.
Trump declared an economic emergency in order to place duties of 10% on all imports from China and 25% on imports from Mexico and Canada. But energy imported from Canada, including oil, natural gas and electricity, would be taxed at a 10% rate.
The tariffs would go into effect on Tuesday, setting a showdown in North America that could potentially sabotage economic growth. A new analysis by the Budget Lab at Yale laid out the possible damage to the U.S. economy, saying the average U.S. household would lose the equivalent of $1,170 in income from the taxes. Economic growth would slow and inflation would worsen — and the situation could be worse if Canada, Mexico and China retaliate.
Responding on X, Mexican President Claudia Sheinbaum said she had instructed her economy secretary to implement a response that includes retaliatory tariffs and other measures in defense of Mexico’s interests.
"We categorically reject the White House’s slander that the Mexican government has alliances with criminal organizations, as well as any intention of meddling in our territory,” Sheinbaum wrote.
“If the United States government and its agencies wanted to address the serious fentanyl consumption in their country, they could fight the sale of drugs on the streets of their major cities, which they don’t do and the laundering of money that this illegal activity generates that has done so much harm to its population.”
Canadian Prime Minister Justin Trudeau on Saturday said that Canada is ready to address the tariffs the U.S. government announced. On a message on his X account, he was to talk to Sheinbaum about the U.S. administration decision, and later he will speak to Canadians.
“We did not want this, but Canada is prepared,” he said.
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Meanwhile, the Premier of Canadian province of British Columbia, David Eby, called on residents to stop buying liquor from U.S. “red” states and remove American alcohol brands from government store shelves as a response to the tariffs.
In a televised message, Eby deemed the Trump’s administration decision as “a declaration of economic war against a trusted ally and friend” and that he will stand up for his citizens and all Canadians in general.
“Effective today, I have directed B.C. liquor sales to immediately stop buying American liquor from red states,” he said. “Liquor store employees will be removing the most popular of these brands from government store shelves.”
A senior U.S. administration official, insisting on anonymity to brief reporters, said the lower rate on energy reflected a desire to minimize any disruptive increases on the price of gasoline or utilities. That's a sign White House officials understand the gamble they're taking on inflation. Price spikes under former President Joe Biden led to voter frustration that helped to return Trump to the White House last year.
The order signed by Trump contained no mechanism for granting exceptions, the official said, a possible blow to homebuilders who rely on Canadian lumber as well as farmers, automakers and other industries.
The Trump administration put the tariffs in place to force the three countries to stop the spread and manufacturing of fentanyl, in addition to pressuring Canada and Mexico to limit any illegal immigration into the United States.
The official did not provide specific benchmarks that could be met to lift the new tariffs, saying only that the best measure would be fewer Americans dying from fentanyl addiction.
The order would also allow for tariffs on Canadian imports of less than $800. Imports below that sum are currently able to cross into the United States without customs and duties.
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“It doesn’t make much economic sense,’’ said William Reinsch, senior adviser at the Center for Strategic and International Studies and a former U.S. trade official. “Historically, most of our tariffs on raw materials have been low because we want to get cheaper materials so our manufacturers will be competitive ... Now, what’s he talking about? He’s talking about tariffs on raw materials. I don’t get the economics of it.’’
The Republican president is making a major political bet that his actions will not significantly worsen inflation, cause financial aftershocks that could destabilize the worldwide economy or provoke a voter backlash. AP VoteCast, an extensive survey of the electorate in last year's election, found that the U.S. was split on support for tariffs.
With the tariffs, Trump is honoring promises that are at the core of his economic and national security philosophy. But the announcement showed his seriousness around the issue as some Trump allies had played down the threat of higher import taxes as mere negotiating tactics.
The president is preparing more import taxes in a sign that tariffs will be an ongoing part of his second term. On Friday, he mentioned imported computer chips, steel, oil and natural gas, as well as against copper, pharmaceutical drugs and imports from the European Union — moves that could essentially pit the U.S. against much of the global economy.
It is unclear how the tariffs could affect the business investments that Trump said would happen because of his plans to cut corporate tax rates and remove regulations. Tariffs tend to raise prices for consumers and businesses by making it more expensive to bring in foreign goods.
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Many voters turned to Trump in the November election on the belief that he could better handle the inflation that spiked under Biden. But inflation expectations are creeping upward in the University of Michigan's index of consumer sentiment as respondents expect prices to rise by 3.3%. That would be higher than the actual 2.9% annual inflation rate in December's consumer price index.
Trump has said that the government should raise more of its revenues from tariffs, as it did before the income tax became part of the Constitution in 1913. He claims, despite economic evidence to the contrary, that the U.S. was at its wealthiest in the 1890s under President William McKinley.
“We were the richest country in the world,” Trump said Friday. “We were a tariff country.”
Trudeau has told Canadians that they could be facing difficult times ahead, but that Ottawa was prepared to respond with retaliatory tariffs if needed and that the U.S. penalties would be self-sabotaging.
Trudeau said Canada is addressing Trump’s calls on border security by implementing a CDN$1.3 billion (US$900 million) border plan that includes helicopters, new canine teams and imaging tools.
Trump still has to get a budget, tax cuts and an increase to the government’s legal borrowing authority through Congress. The outcome of his tariff plans could strengthen his hand or weaken it.
Democrats were quick to say that any inflation going forward was the result of Trump, who is about to start his third week back as president.
Trump takes executive actions on energy, inflation, and tariffs on first day
“You’re worried about grocery prices. Don’s raising prices with his tariffs," Senate Democratic Leader Chuck Schumer of New York posted on X. "You’re worried about tomato prices. Wait till Trump’s Mexico tariffs raise your tomato prices. … You’re worried about car prices. Wait till Trump’s Canada tariffs raise your car prices,” he wrote in a series of posts.
1 year ago
USAID website goes offline in Trump administration's 2-week-old freeze on foreign aid worldwide
The website of the U.S. Agency for International Development went offline without explanation Saturday as thousands of furloughs, layoffs and program shutdowns continued in President Donald Trump's freeze on U.S.-funded foreign aid and development worldwide.
Congressional Democrats battled the Trump administration increasingly openly, expressing concern that Trump may be headed toward ending USAID as an independent agency and absorbing it into the State Department. Democrats say Trump has no legal authority to eliminate a congressionally funded independent agency, and that the work of USAID is vital to national security.
Trump and congressional Republicans say much of foreign aid and development programs is wasteful. They single out programs they say advance liberal social agendas.
The fear of even tougher administration action against USAID comes two weeks into the administration's shutdown of billions of dollars of the United States' humanitarian, development and security assistance.
The U.S. is the world's largest donor of humanitarian aid by far. It spends less than 1% of its budget on foreign assistance, a smaller share overall than some other countries.
Administration officials had no comment Saturday when asked about concerns expressed by lawmakers and others that Trump may be planning to end USAID's separate status..
President John F. Kennedy created the organization at the height of the Cold War to counter Soviet influence. USAID today is at the center of U.S. challenges to the growing influence of China, which has a successful “Belt and Road” foreign aid program of its own.
Congress passed the Foreign Assistance Act in 1961, and Kennedy signed that law and an executive order establishing USAID as an independent agency.
USAID staffers spent Friday and Saturday in chat groups monitoring its fate, giving updates on whether the agency's flag and signs were still up outside agency headquarters in Washington. As of late Saturday afternoon, they were.
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In a post on X, Democratic Sen. Chris Murphy said presidents cannot eliminate congressionally appropriated federal agencies by executive order, and said Trump was poised to “double down on a constitutional crisis.”
“That’s what a despot — who wants to steal the taxpayers’ money to enrich his billionaire cabal — does,” Murphy said.
Billionaire Elon Musk, advising Trump in a campaign to whittle down the federal government in the name of efficiency, endorsed posts on his X site calling for dissolving USAID.
“Live by executive order, die by executive order,” Musk tweeted in reference to USAID.
Trump placed an unprecedented 90-day freeze on foreign assistance on his first day in office Jan. 20. The order, a tougher-than-expected interpretation of Trump’s freeze order on Jan. 24 drafted by Peter Marocco, a returning political appointee from Trump’s first term, shut down thousands of programs around the world and forced the furloughs or layoffs of many thousands.
Secretary of State Marco Rubio has since moved to keep more kinds of strictly life-saving emergency programs going during the freeze. Aid groups say confusion surrounding what programs are still allowed to operate is contributing to paralysis in global aid organizations.
Rubio, in his first public comments on the matter, said Thursday that USAID’s programs were being reviewed to eliminate any that are not in the U.S. national interest, but he said nothing about eliminating it as an agency.
The shutdown of U.S.-funded programs during the 90-day review meant the U.S. was “getting a lot more cooperation” from recipients of humanitarian, development and security assistance, Rubio said.
Republicans and Democrats long have fought over the agency, arguing whether humanitarian and development aid protects the U.S. by helping stabilize partner countries and economies or is a waste of money. Republicans typically push to give State more control of USAID’s policy and funds. Democrats typically build USAID autonomy and authority.
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A version of that battle played out in Trump’s first term, when Trump tried to cut the budget for foreign operations by a third.
When Congress refused, the Trump administration used freezes and other tactics to cut the flow of funds already appropriated by Congress for foreign programs. The General Accounting Office later ruled that it violated a law known as the Impoundment Control Act.
1 year ago
Robert Santos resigns as US Census Bureau director
Robert Santos, who emphasized inclusivity and outreach to overlooked communities, has resigned as director of the U.S. Census Bureau, midway through his five-year term and in the midst of planning for the 2030 census, which will determine political power and federal funding nationwide for another decade to come.
Santos, who was appointed by former Democratic President Joe Biden, said in a letter Thursday evening that he had made the decision “after deep reflection.” Santos was sworn in as the bureau's 26th director, and its first Hispanic leader, in 2022.
His departure clears the way for Republican President Donald Trump to reshape the agency's leadership as his allies in Congress and among GOP state attorneys general renew efforts to exclude people in the U.S. illegally from the numbers used to divvy up congressional seats and Electoral College votes among states.
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A Republican redistricting expert wrote that using citizen voting-age population instead of the total population for the purpose of redrawing congressional and legislative districts could be advantageous to Republicans and non-Hispanic whites. The census numbers also guide the distribution of $2.8 trillion in federal dollars to the states for roads, health care and other programs.
Civil rights groups on Friday urged Trump to appoint an impartial leader to head the nation's largest statistical agency.
“The integrity of the U.S. Census Bureau must remain above partisan influence, ensuring that data collection and reporting continue to serve the American people with accuracy, transparency, and fairness,” The Leadership Conference on Civil and Human Rights said in a statement.
During his term, Santos emphasized restoring trust to the Census Bureau following Trump's first term. Many census-watchers felt Trump's administration tried to politicize the 2020 census by installing large numbers of political appointees at the agency and through failed efforts to keep people in the U.S. illegally from being counted for apportionment.
Five years on, Brexit’s full impact still unfolding
The Fourteenth Amendment says that “the whole number of persons in each state” should be counted for the numbers used for apportionment.
Before joining the Census Bureau, Santos was a vice president and chief methodologist at the Urban Institute and had spent four decades in survey research, statistical design and analysis and executive-level management. The Texas native said in his letter that he planned to spend time with his family in retirement.
1 year ago