Trump eases auto tariffs burden as Lutnick touts first foreign trade deal

Trump eases auto tariffs burden as Lutnick touts first foreign trade deal
US President Donald Trump delivers his 100th Day in office achievement speech at Macomb County Community College Sports Expo Center in Warren, Michigan, on April 29, 2025. (AFP)
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Updated 30 April 2025
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Trump eases auto tariffs burden as Lutnick touts first foreign trade deal

Trump eases auto tariffs burden as Lutnick touts first foreign trade deal

WASHINGTON/DETROIT: US President Donald Trump signed a pair of orders to soften the blow of his auto tariffs on Tuesday with a mix of credits and relief from other levies on materials, and his trade team touted its first deal with a foreign trading partner.
The developments helped eased some investor worries about the erratic trade policies of Trump as the president visited Michigan, a cradle of the US auto industry, just days before a fresh set of 25 percent import taxes was set to kick in on automotive components.
The trip, on the eve of his 100th day in office, came as Americans take an increasingly dim view of Trump’s economic stewardship, with indications his tariffs will weigh on growth and could drive up inflation and unemployment.
In his latest partial reversal of tariff policies, the Republican president agreed to give carmakers two years to boost the percentage of domestic components in vehicles assembled domestically.
It will allow them to offset tariffs for imported auto parts used in US-assembled vehicles equal to 3.75 percent of the total value of the Manufacturer’s Suggested Retail Price of vehicles they build in the US through April 2026, and 2.5 percent of US production through April 30, 2027.
Auto industry leaders had lobbied the administration furiously during the weeks since Trump first unveiled his 25 percent tariffs on imported vehicles and auto parts. The levies, aimed at forcing automakers to reshore manufacturing domestically, had threatened to scramble a North American automotive production network integrated across the US, Canada and Mexico.
It offers the industry a “little relief” as companies invest in more US production, Trump said as he left Washington for Michigan. “We just wanted to help them ... if they can’t get parts, we didn’t want to penalize them.”
The White House said the change will not affect the 25 percent tariffs imposed last month on the 8 million vehicles the United States imports annually.
Autos Drive America, a group representing Toyota Motor, Volkswagen, Hyundai and nine other foreign automakers, said Trump’s order provided some relief “but more must be done in order to turbocharge the US auto industry.”

MORE TARIFF UNCERTAINTY

Candace Laing, president of the Canadian Chamber of Commerce, said the tariff fix fell short of what companies in the deeply integrated North American industry needed.
“Only an end to tariffs provides real relief. Ongoing ups and downs perpetuate uncertainty, and uncertainty drives away business for both Canada and the U.S,” she said in a statement.
The uncertainty unleashed across the auto sector by Trump’s tariffs remained on full display Tuesday when GM pulled its annual forecast even as it reported strong quarterly sales and profit. In an unusual move, the carmaker also opted to delay a scheduled conference call with analysts until later in the week, after the details of tariff changes were known.
Meanwhile, US Commerce Secretary Howard Lutnick told CNBC he had reached a deal with one foreign power that should permanently ease the “reciprocal” tariffs Trump plans to impose. Lutnick declined to identify the country, saying the deal was pending local approvals.
“I have a deal done ... but I need to wait for their prime minister and their parliament to give its approval,” he said.
White House officials had no further comment on the country in question, but Trump struck an upbeat tone about a deal with India, telling reporters: “India is coming along great. I think we’ll have a deal with India.”
Lutnick’s comments helped further lift stock prices that had been battered by Trump’s moves to reshape global trade and force goods makers to shift production to the US. The benchmark S&P 500 Index closed 0.6 percent higher for a sixth day of gains, its longest streak of gains since November.

WRONG ON EVERY PREDICTION

Trump and his team aim to strike 90 trade deals during a 90-day pause on his reciprocal tariffs announced earlier in April. His administration has repeatedly said it was negotiating bilateral trade deals with dozens of countries.
A chief Trump goal is to bring down a massive US goods trade deficit, which shot to a record in March on a surge of imports aimed at front-running the levies.
Trump’s aggressive trade stance has cascaded through the global economy since his return to office in January, and the 90-day pause was unveiled after fears of recession and inflation sent financial markets into a tailspin.
Easing the impact of auto levies is Trump’s latest move to show flexibility on tariffs which have sown turmoil in financial markets, created uncertainty for businesses and sparked fears of a sharp economic slowdown. A Reuters/Ipsos poll published Tuesday showed just 36 percent of respondents approve of his economic stewardship, the lowest level in his current term or in his 2017-2021 presidency.
Meanwhile, the US will release the first quarterly report on US gross domestic product during Trump’s term on Wednesday. It is expected to reflect a large drag from his tariffs, mostly from a record surge in imports as companies and consumers front-loaded purchases of foreign goods to try to beat the new levies. The economy is expected to have expanded at a 0.3 percent annualized rate from January through March, according to a Reuters poll of economists, down from 2.4 percent in the final three months of 2024.
American and global companies are increasingly sounding the alarm about the tariffs’ effects on their ability to plan.
UPS on Tuesday said it would cut 20,000 jobs to lower costs, while US ketchup maker Kraft Heinz and Swedish appliances maker Electrolux were among companies citing tariff headwinds.
About 40 companies worldwide have pulled or lowered their forward guidance in the first two weeks of first-quarter earnings season, a Reuters analysis showed.
“Every single prediction has been proved to be wrong,” Yannick Fierling, Electrolux CEO, told Reuters. “I’m surprised if people are claiming they have a view where tariffs are going.” 


US immigration authorities appear to have begun deporting migrants to South Sudan, attorneys say

US immigration authorities appear to have begun deporting migrants to South Sudan, attorneys say
Updated 5 sec ago
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US immigration authorities appear to have begun deporting migrants to South Sudan, attorneys say

US immigration authorities appear to have begun deporting migrants to South Sudan, attorneys say
  • South Sudan has suffered repeated waves of violence since gaining independence from Sudan in 2011

WASHINGTON: The Trump administration appears to have begun deporting people from Myanmar and Vietnam to South Sudan despite a court order restricting removals to other countries, attorneys for the migrants said in court documents.
Immigration authorities may have sent up to a dozen people from several countries to Africa, they told a judge.
Those removals would violate a court order saying people must get a “meaningful opportunity” to argue that sending them to a country outside their homeland would threaten their safety, attorneys said.
The apparent removal of one man from Myanmar was confirmed in an email from an immigration official in Texas, according to court documents. He was informed only in English, a language he does not speak well, and his attorneys learned of the plan hours before his deportation flight, they said.
A woman also reported that her husband from Vietnam and up to 10 other people were flown to Africa Tuesday morning, attorneys from the National Immigration Litigation Alliance wrote.
They asked Judge Brian E. Murphy for an emergency court order to prevent the deportations. Murphy, who was appointed by President Joe Biden, previously found that any plans to deport people to Libya without notice would “clearly” violate his ruling, which also applies to people who have otherwise exhausted their legal appeals. A hearing in the case is set for Wednesday.
The Department of Homeland Security and the White House did not immediately return messages seeking comment.
Some countries do not accept deportations from the United States, which has led the Trump administration to strike agreements with other countries, including Panama, to house them. The Trump administration has sent Venezuelans to a notorious prison in El Salvador under an 18th-century wartime law hotly contested in the courts.
South Sudan has suffered repeated waves of violence since gaining independence from Sudan in 2011 amid hopes it could use its large oil reserves to bring prosperity to a region long battered by poverty. Just weeks ago, the country’s top UN official warned that fighting between forces loyal to the president and a vice president threatened to spiral again into full-scale civil war.
The situation is “darkly reminiscent of the 2013 and 2016 conflicts, which took over 400,000 lives,” Nicholas Haysom, head of the almost 20,000-strong UN peacekeeping mission.
The US State Department’s annual report on South Sudan, published in April 2024, says “significant human rights issues” include arbitrary killings, disappearances, torture or inhumane treatment by security forces and extensive violence based on gender and sexual identity.
The US Homeland Security Department has given Temporary Protected Status to a small number of South Sudanese already living in the United States since the country was founded in 2011, shielding them from deportation because conditions were deemed unsafe for return. Secretary Kristi Noem recently extended those protections to November to allow for a more thorough review.

 


Trump selects concept for $175 billion ‘Golden Dome’ missile defense system

Trump selects concept for $175 billion ‘Golden Dome’ missile defense system
Updated 23 min 54 sec ago
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Trump selects concept for $175 billion ‘Golden Dome’ missile defense system

Trump selects concept for $175 billion ‘Golden Dome’ missile defense system
  • Golden Dome is envisioned to include ground- and space-based capabilities that are able to detect and stop missiles at all four major stages of a potential attack

WASHINGTON: President Donald Trump has announced the concept he wants for his future Golden Dome missile defense program — a multilayered, $175 billion system that for the first time will put US weapons in space.
Speaking Tuesday from the Oval Office, Trump said he expects the system will be “fully operational before the end of my term,” which ends in 2029, and have the capability of intercepting missiles “even if they are launched from space.”
It’s likelier that the complex system may have some initial capability by that point, a US official familiar with the program said.
Trump, seated next to a poster showing the continental US painted gold and with artistic depictions of missile interceptions, also announced that Gen. Michael Guetlein, who currently serves as the vice chief of space operations, will be responsible for overseeing Golden Dome’s progress.
Golden Dome is envisioned to include ground- and space-based capabilities that are able to detect and stop missiles at all four major stages of a potential attack: detecting and destroying them before a launch, intercepting them in their earliest stage of flight, stopping them midcourse in the air, or halting them in the final minutes as they descend toward a target.
For the last several months, Pentagon planners have been developing options — which the US official described as medium, high and “extra high” choices, based on their cost — that include space-based interceptors. The official spoke on condition of anonymity to detail plans that have not been made public.
The difference in the three versions is largely based on how many satellites and sensors — and for the first time, space-based interceptors — would be purchased.
The Congressional Budget Office estimated this month that just the space-based components of the Golden Dome could cost as much as $542 billion over the next 20 years. Trump has requested an initial $25 billion for the program in his proposed tax break bill now moving through Congress.
The Pentagon has warned for years that the newest missiles developed by China and Russia are so advanced that updated countermeasures are necessary. Golden Dome’s added satellites and interceptors — where the bulk of the program’s cost is — would be focused on stopping those advanced missiles early on or in the middle of their flight.
The space-based weapons envisioned for Golden Dome “represent new and emerging requirements for missions that have never before been accomplished by military space organizations,” Gen. Chance Saltzman, head of the US Space Force, told lawmakers at a hearing Tuesday.
China and Russia have put offensive weapons in space, such as satellites with abilities to disable critical US satellites, which can make the US vulnerable to attack.
Last year, the US said Russia was developing a space-based nuclear weapon that could loiter in space for long durations, then release a burst that would take out satellites around it.
Trump said Tuesday that he had not yet spoken to Russian President Vladimir Putin about the Golden Dome program, “but at the right time, we will,” he told reporters at the White House.
There is no money for the project yet, and Golden Dome overall is “still in the conceptual stage,” newly confirmed Air Force Secretary Troy Meink told senators during a hearing Tuesday.
While the president picked the concept he wanted, the Pentagon is still developing the requirements that Golden Dome will need to meet — which is not the way new systems are normally developed.
The Pentagon and US Northern Command are still drafting what is known as an initial capabilities document, the US official said. That is how Northern Command, which is responsible for homeland defense, identifies what it will need the system to do.
The US already has many missile defense capabilities, such as the Patriot missile batteries that the US has provided to Ukraine to defend against incoming missiles as well as an array of satellites in orbit to detect missile launches. Some of those existing systems will be incorporated into Golden Dome.
Trump directed the Pentagon to pursue the space-based interceptors in an executive order during the first week of his presidency.

 


Immigrant rights advocates claim US violated court order by deporting migrants to South Sudan

Immigrant rights advocates claim US violated court order by deporting migrants to South Sudan
Updated 20 May 2025
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Immigrant rights advocates claim US violated court order by deporting migrants to South Sudan

Immigrant rights advocates claim US violated court order by deporting migrants to South Sudan
  • The advocates made the request in a motion directed to a federal judge in Boston

BOSTON: Immigrant rights advocates accused the Trump administration on Tuesday of deporting around a dozen migrants from countries including Myanmar and Vietnam to South Sudan in violation of a court order and asked a judge to order their return.

The advocates made the request in a motion directed to a federal judge in Boston who had barred the Trump administration from swiftly deporting migrants to countries other than their own without first hearing any concerns they had that they might be tortured or persecuted if sent there.


Maritime security under threat from ‘emerging dangers,’ UN chief warns

Maritime security under threat from ‘emerging dangers,’ UN chief warns
Updated 20 May 2025
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Maritime security under threat from ‘emerging dangers,’ UN chief warns

Maritime security under threat from ‘emerging dangers,’ UN chief warns
  • Houthi Red Sea campaign ‘increased tensions in an already volatile region’
  • Antonio Guterres calls for three-point plan to address challenges

NEW YORK CITY: UN Secretary-General Antonio Guterres warned of rising threats to global maritime transport at a high-level Security Council meeting on Tuesday.

It follows almost two years of turmoil in the Red Sea, a vital shipping lane connecting global trade via the Suez Canal.

Yemen’s Houthi militia launched a campaign in late 2023 to prevent Israel-linked shipping from transiting the Red Sea, claiming to act in solidarity with Palestinians in Gaza.

The US responded with Operation Prosperity Guardian, a military campaign to target Houthi launch sites and infrastructure.

The EU contributed with EUNAVFOR Aspides, while Israel later responded to Houthi attacks with extensive strikes on Sanaa, Yemen’s capital, and the Houthi-controlled port city of Hodeidah.

Tuesday’s Security Council meeting was chaired by Kyriakos Mitsotakis, the Greek prime minister.

Guterres told the meeting: “Without maritime security, there can be no global security.

“From time immemorial, maritime routes have bound the world together. They have long been the primary means for the trade and transport of not only people, goods and commodities, but also cultures and ideas.”

However, maritime spaces are “increasingly under strain” from traditional threats and “emerging dangers,” Guterres added.

He highlighted contested boundaries, the depletion of natural resources, conflict and crime as key issues affecting maritime security.

The first quarter of 2025 saw a “sharp upward reversal” in reported piracy and armed robbery at sea, Guterres said.

He highlighted the Houthi Red Sea campaign, warning it had “disrupted global trade and increased tensions in an already volatile region.”

Earlier this month, the US reached a ceasefire deal with the Houthis following mediation by Oman.

However, the militia and Israel continue to trade strikes.

Guterres called for three measures to improve global maritime security: Respect for international law; efforts to address the root causes of maritime insecurity; and partnerships involving “everyone with a stake in maritime spaces.”

The international legal framework for maritime security “is only as strong as states’ commitment” to its implementation, he said.

Globally, more must be done “to reduce the likelihood that desperate people will turn to crime and other activities that threaten maritime security,” he added.

Guterres said: “We must involve everyone with a stake in maritime spaces. From coastal communities to governments and regional groups. To shipping companies, flag registries, the fishing and extraction industries, insurers and port operators.

“Let’s take action to support and secure maritime spaces, and the communities and people counting on them.”


Indonesian gig drivers protest demanding lower app fees

Indonesian gig drivers protest demanding lower app fees
Updated 20 May 2025
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Indonesian gig drivers protest demanding lower app fees

Indonesian gig drivers protest demanding lower app fees
  • Motorbike and scooter drivers who form the backbone of Indonesia’s sprawling gig economy earn up to 150,000 rupiah ($10) a day

JAKARTA: Thousands of drivers from ride-hailing and food delivery apps protested in Indonesia on Tuesday, demanding a 10-percent cap on commission fees.

Hundreds of drivers gathered in the streets of the capital Jakarta, driving their motorbikes and waving flags.

Thousands more in Indonesia’s second-largest city of Surabaya drove to the offices of ride-hailing apps GoJek and Grab, before rallying in front of the governor’s office, an AFP journalist saw.

“Many of our friends got into accidents on the road, died on the road because they have to chase their income,” Raden Igun Wicaksono, chairman of the driver’s union Garda Indonesia, told AFP.

“It’s about lives, not about business calculation.”

Drivers are also demanding the end of discounted fare programs and calling on lawmakers to meet with the drivers’ association and app companies.

Motorbike and scooter drivers who form the backbone of Indonesia’s sprawling gig economy earn up to 150,000 rupiah ($10) a day, but costs including app commissions and fuel eat into their income.

Gojek — which alongside Singapore’s Grab is among Asia’s most valuable startups — said it was committed to “supporting the long-term welfare of our driver partners.” 

But lowering its 20-percent commission fee, which complied with regulations, was “not a viable solution,” according to Ade Mulya, head of public policy for Gojek’s parent company GoTo.