Category Archives: News

Worldwide news. News is information about current events. This may be provided through many different media: word of mouth, printing, postal systems, broadcasting, electronic communication, or through the testimony of observers and witnesses to events. News is sometimes called “hard news” to differentiate it from soft media

Trump’s Support Deeply Divided Along Partisan, Gender Lines

Despite his low popularity overall with the American people, President Donald Trump’s approval rating among Republicans is at an all-time high. Beyond partisan lines, there is also an increasing gap of support between genders. White House Correspondent Patsy Widakuswara has more.

Solid Job Gains Overshadowed by Threat of US-China Trade War

The opening shots have been fired in what some fear may be the start of a major trade war. China retaliating at midnight Friday with equivalent tariffs on U.S. goods after the U.S. followed through on its threat to raise tariffs on $34 billion worth of Chinese imports. All this as the U.S. job market posted solid gains last month. Mil Arcega has more.

Syrian Refugees in Jordanian Camp Recycle Mounds of Trash for Cash

Amid the very real hardships Syrian refugees face, little has been said about another major health and humanitarian issue: What to do with the massive accumulations of trash and waste. But one refugee camp in Jordan is doing something about it. With the help of an international nonprofit group, the residents of the Zaatari Refugee Camp launched a recycling program to eliminate the trash left by the tens of thousands of refugees who live there … and provide jobs. Arash Arabasadi reports.

How Trade Fight Impacts National Economies, Ordinary People

The political squabbling between China and the United States over trade and other issues affect the world’s two largest economies through a variety of mechanisms with unpredictable results. 

For example, prices of stock in both nations have been hurt as some shareholders sold their shares and other investors were reluctant to buy shares of companies that might be hurt by rising tariffs. These actions cut demand for certain stocks, making prices fall. Shareholders are part-owners of companies who hope to profit when the company prospers and grows. Rising tariff costs make growth less likely, and that hurts investor confidence.

World Trade Organization spokesman Dan Pruzin told Reuters that worries about trade are already being felt.

“Companies are hesitating to invest, markets are getting jittery, and some prices are rising,” he said, adding that further escalation could hurt “jobs and growth,” sending “economic shock waves” around the world. 

Confidence

Trade squabbles can hurt business confidence, because managers are less willing to take the risk of buying new machines, building new factories or hiring new workers. Less expansion means less demand for equipment, and a smaller workforce means fewer people have the money to rent apartments, buy food or finance a new car. Less demand for goods and services ripples through the economy and sparks less economic activity and less growth.

​Agriculture

U.S. farmers are another group feeling the effects of this trade dispute, as Beijing raises tariffs on U.S. soybeans. Higher tariffs raise food costs for Chinese consumers, so demand falls for U.S. farm products, a key American export. Anticipating slackening demand for U.S. soybeans, market prices dropped even before the tariffs were imposed. That means U.S. farmers can no longer afford to buy as many tractors and hire as many workers. Fewer workers mean fewer people with the money to buy products, which slows economic growth in farm states. 

Consumers

Meantime, new U.S. tariffs hit Chinese-made vehicles, aircraft, boats, engines, heavy equipment and many other industrial products. China’s Xinhua news agency said new U.S. tariffs are an effort to “bully” Beijing. The agency says the new tariffs violate international trade rules, and will hurt many companies and “ordinary consumers.” 

Experts say Washington tried to avoid tariffs on China that would directly raise costs to U.S. consumers. Economists say increasing taxes on products that help create consumer goods will still raise costs to consumers, fuel inflation and hurt demand. 

​Currency

PNC Bank Senior Economist Bill Adams, an expert on China’s economy, says one step China could take, but has not, would be to let its currency value drop. A weaker currency would mean Chinese-made products are cheaper and more competitive on international markets. Adams says China has taken steps recently to prop up the value of its currency. While a weaker currency helps exports, it can fuel inflation by raising the costs of imported products like oil or other raw materials needed by Chinese companies.

In the meantime, uncertainty fueled by trade disputes puts upward pressure on the value of the U.S. dollar, because investors see the United States as a safe haven in times of economic strife. But a stronger, more expensive dollar means U.S. products are more expensive for foreign customers, which hurts American exports and economic growth. 

All of this means it is hard to predict how this trade dispute will play out. Experts say it will depend in large measure on how many times the two sides raise tariffs in response to each other, how high the tariffs go, and how long the bickering lasts.

William Zarit, the chairman of the American Chamber of Commerce in China, writes that this is the biggest trade dispute between China and the United States in 40 years.

The two sides must work something out, Zarit says, because a “strong bilateral trade and investment relationship is too important to both countries for it to be mired in verbal and trade remedy attacks and counterattacks.”

He says a new agreement would “significantly benefit both economies.”

US Adds Solid 213,000 Jobs; Unemployment Up to 4%

U.S. employers kept up a brisk hiring pace in June by adding 213,000 jobs, a sign of confidence in the economy despite the start of a potentially punishing trade war with China.

The job growth wasn’t enough to keep the unemployment rate from rising from 3.8 percent to 4 percent, the government said Friday. But the jobless rate rose for an encouraging reason: More people felt it was a good time to begin looking for a job, though not all of them immediately found one.

The growing optimism that people can find work suggested that the 9-year old U.S. economic expansion — the second-longest on record — has the momentum to keep chugging along. Yet its path ahead is uncertain. Just hours before the monthly jobs report was released, the Trump administration imposed taxes on $34 billion in Chinese imports, and Beijing hit back with tariffs on the same amount of U.S. goods.

“The tariffs jumble things about what we should expect to see in the next few months,” said Cathy Barrera, chief economist at ZipRecruiter, the online jobs marketplace.

Some companies are likely to respond to the tariffs by putting their hiring plans on hold until the trade picture becomes clearer.

Major U.S. stock indexes were mostly higher in early trading Friday after the jobs report was issued, keeping the market on track for a weekly gain after two weeks of losses.

The June jobs data showed an economy that may be on the cusp of producing stronger pay growth, something that could be disrupted if additional tariffs are imposed. Trump has suggested that more than $500 billion worth of Chinese imports could be taxed in his drive to force Beijing to reform its trade policies, which he insists have unfairly victimized the United States.

Average hourly pay rose just 2.7 percent in June from 12 months earlier. That relatively modest increases means that, after adjusting for inflation, overall wages remain nearly flat. But the average was skewed downward in June because the influx of jobseekers was due mainly to those with only a high school education or less, who are generally paid lower wages,

The ranks of unemployed people seeking jobs jumped by 499,000 in June, which caused the unemployment rate to rise from its previous 18 year-low. With 93 straight months of job growth — a historical record — many employers have said they’re feeling pressure to raise wages. But significant pay gains have yet to emerge in the economic data.

Manufacturers added 36,000 jobs last month; the education and health sector added 54,000. But retailers shed 21,600 jobs, with the losses concentrated at general merchandise stores.

In its report Friday, the government revised up its estimate of job growth in May and April by a combined 37,000. Over the past three months, the economy has produced a robust average monthly job gain of 211,000.

The broader U.S. economy appears sturdy. Economists are forecasting that economic growth accelerated to an annual pace of roughly 4 percent during the April-June quarter, about double the previous quarter’s pace.

Signs of strength have helped bolster hiring despite the difficulty many employers say they’re having in finding enough qualified workers to fill jobs.

Manufacturers and services firms have said in recent surveys that their business is improving despite anxiety about the tariff showdown between the United States and China. Housing starts have climbed 11 percent so far this year. Retail sales jumped a strong 0.8 percent in May in a sign that consumers feel secure enough to spend.

Though economic growth appears to be solid, the gains have been spread unevenly. President Donald Trump’s tax cuts have provided a dose of stimulus this year, but the benefits have been tilted significantly toward wealthy individuals and corporations. Savings from the tax cuts enabled companies in the Standard & Poor’s 500 stock index to buy back a record number of shares in the first three months of 2018.

Yet the tax cuts have done little to generate substantial pay growth. Most economists say they still think the low unemployment rate will eventually force more employers to offer higher pay in order to fill jobs.

The economy also faces a substantial threat from the Trump administration’s trade war with China and from other, ongoing trade disputes with U.S. allies, including Canada and Europe. Any escalation in the conflict with China could disrupt hiring as companies grapple with higher import prices and diminished demand for their exports. On Thursday, Trump floated the prospect of imposing tariffs on more than $500 billion in Chinese imports.

The Trump administration has also applied tariffs on steel and aluminum from allies like Canada and Mexico and has threatened to abandon the North American Free Trade Agreement with those two countries. Trump has also spoken about slapping tariffs on imported cars, trucks and auto parts, which General Motors has warned could hurt the U.S. auto industry and drive up car prices.

Automakers added 12,000 jobs in June, but the tariffs could weigh on that industry’s job growth in the coming months.

WTO Urges Nations to Ease Trade Tensions

The World Trade Organization is urging nations to resolve trade tensions, warning that restrictive trade measures would have a harmful impact on the global economy.

The group refuses to weigh in on what appears to be the start of a trade war between the United States and China, the world’s two biggest economies. China has reacted to Washington’s decision to slap 25 percent tariffs on $34 billion worth of Chinese goods by reciprocating in kind.

While the Geneva-based WTO will not comment on specific actions, the organization’s director-general, Roberto Azevedo, has sent out a series of tweets warning nations against giving in to protectionist impulses.

Azevedo says a new WTO monitoring report on trade measures enacted by the G-20 countries indicates a disturbing increase in trade restrictions by major economies. In his tweet, the WTO chief says recent developments show that more restrictive measures are on the way.

His spokesman, Dan Pruzin, says Azevedo fears the deterioration in trade relations may be worse than previously anticipated and is likely to have very serious consequences.

“The fallout from these measures is already being felt,” Pruzin said. “Companies are hesitating to invest, markets are getting jittery, some prices are rising. With further escalation, the effects would only grow in magnitude, hitting jobs and growth in the countries involved and sending economic shock waves around the world.” 

President Donald Trump has threatened that the United States might quit the WTO if it is not treated fairly.

“I will just say that no U.S. official in Geneva has given any indication in any of the meetings here in Geneva that the United States intends to withdraw from the WTO,” Pruzin told VOA.

WTO chief Azevedo is urging all parties to sit down and discuss ways of tackling the issues at the root of the growing trade tensions.

Trump Says He’s Narrowed Supreme Court Nominees to 2 or 3

President Donald Trump said Thursday he has narrowed down — to two or three — the list of contenders he’s considering to fill the vacancy for the Supreme Court seat held by retiring Justice Anthony Kennedy.

“I think I have it down to four people. And I think of the four people I have it down to three or two,” Trump told reporters aboard Air Force One.

The president, who was traveling to a campaign rally in Montana, has wrapped up the interview process and is moving closer to picking his court nominee amid intense jockeying from various factions seeking to influence the choice.

Trump’s current top contenders are federal appeals court judges Amy Coney Barrett, Brett Kavanaugh and Raymond Kethledge, said a person familiar with Trump’s thinking who was not authorized to speak publicly.

With customary fanfare, Trump plans to announce his selection Monday night. The administration is preparing roll-out plans for the leading contenders, and hopes to have a decision on the top one or two names in the next couple of days, so staff can conduct a deep-dive background ahead of the possible prime-time event, according to a senior administration official granted anonymity to discuss the plans.

But as the president builds suspense for his second court pick in two years — a nominee who could tip the balance toward conservatives and revisit landmark rulings on abortion access, gay marriage and other issues — momentum is also growing among GOP supporters and detractors of the top contenders.

Conservatives and some libertarian-leaning Republicans, including Sen. Rand Paul of Kentucky, have raised concerns about Kavanaugh, warning he could disappoint Republicans if his past decisions are a guide.

Paul and another Republican, Sen. Ted Cruz of Texas, are supporting fellow Sen. Mike Lee, R-Utah, who is not said to be under serious consideration by the White House but is the only lawmaker Trump has considered for the position.

To counter that, Kavanaugh’s allies have begun pushing back, reaching out to influential Republicans to ward off potential criticisms, according to one conservative who was the recipient of such outreach and spoke on condition of anonymity Thursday to discuss the situation.

The senior administration official, though, said the administration is feeling less heat than earlier in this week over the choices, particularly Kavanaugh, and believes the jockeying in general has calmed somewhat.

With the Senate narrowly divided, 51-49, in favor of Republicans, Trump’s announcement will launch a contentious confirmation process as Republicans seek to shift the court to the right and Democrats strive to block the effort. Any GOP defections could begin to doom a nominee.

Tapping into Trump’s understanding of the importance of the choice, Senate Minority Leader Chuck Schumer, D-N.Y., told the president this week that nominating someone hostile to abortion access, or the 2010 health care law, would tarnish his legacy.

Schumer told Trump that such a choice would be “cataclysmic” and create more division than the country has seen in years, according to a person familiar with the conversation who said Trump called Schumer on Tuesday.

The senator also told the president he could unify the country by nominating Merrick Garland, President Barack Obama’s choice for the Supreme Court who was blocked by Republicans in 2016.

Senate Majority Leader Mitch McConnell, R-Ky., said Thursday at an event in Louisville that he, too, has been talking to the president about the search and believes “the president will make a very high-quality appointment.”

McConnell acknowledged that his fellow Kentuckian, Judge Amul Thapar, is a finalist, but noted, “The competition at this level is pretty intense.”

Working closely with a White House team and consulting with lawmakers and outside advisers, Trump has spent the week deliberating on the choice. He conducted interviews Monday and Tuesday. He could still consider others in the mix. He’s still taking input, making calls to Capitol Hill, the official said.

Vice President Mike Pence also met with some of Trump’s contenders in recent days, according to a person familiar with the search process. The person did not specify which candidates Pence met with and spoke on condition of anonymity Wednesday to describe the private search process.

Trump is choosing his nominee from a list of 25 candidates vetted by conservative groups. Earlier in the week, he spoke with seven of them.

The president also spoke by phone with Lee, the senator from Utah, on Monday. The White House did not characterize that call as an interview, and Lee is not viewed as a top prospect.

But Lee has consistent support among conservative and libertarian activists, including some Republicans who worry about a nominee not upholding their principles and who say the Utah senator could bring more certainty.

More than two dozen conservatives, including Paul, wealthy GOP donor Rebekah Mercer and several tea party leaders, signed a letter backing Lee as having a “proven record.”

Cruz advocated for Lee on Thursday in a Fox News op-ed warning Trump not to repeat “mistakes” of past Republican presidents by picking a Supreme Court nominee who turns out to be insufficiently conservative.

Cruz said President George H.W. Bush’s selection of liberal David Souter was “one of the most consequential errors of his presidency.” He also pointed to former justices William Brennan, John Paul Stevens and Harry Blackmun, the latter of whom wrote the Roe v. Wade decision that established a woman’s right to abortion. All three were nominated by Republican presidents.

Lee, he said, would be a “sure thing.”

Paul, the Kentucky senator, has told colleagues he may not vote for Kavanaugh if the judge is nominated, citing Kavanaugh’s role during President George W. Bush’s administration on cases involving executive privilege and the disclosure of documents to Congress, said a person familiar with Paul’s conversations who spoke on condition of anonymity.

Some conservatives have pointed to Kethledge as a potential justice in the mold of Neil Gorsuch, Trump’s first Supreme Court nominee last year. Both Kethledge and Gorsuch once served Kennedy as law clerks, as did Kavanaugh. Kethledge, a Michigan Law graduate, would add academic diversity to a court steeped in the Ivy League.

Since Trump said his short list includes at least two women, speculation has focused on Barrett, a former law clerk to Justice Antonin Scalia and a longtime Notre Dame Law School professor who serves on the 7th U.S. Circuit Court of Appeals. Conservative groups rallied around Barrett after her confirmation hearing last year featured questioning from Democrats over how her Roman Catholic faith would affect her decisions.

Trump’s choice to replace Kennedy — a swing vote on the nine-member court — has the potential to remake the court for a generation as part of precedent-shattering decisions. Recognizing the stakes, many Democrats have lined up in opposition to any Trump pick.

One group aligned with Democrats began running ads Thursday in the home states of Sens. Susan Collins, R-Maine, and Lisa Murkowski, R-Alaska, urging them to hold firm in their support of access to abortion services.

Likely Impact of US-China Trade War: Prices Up, Growth Down

The world’s two biggest economies have fired the opening shots in a trade war that could have wide-ranging consequences for consumers, workers, companies, investors and political leaders.

The United States slapped a 25 percent tax on $34 billion worth of Chinese imports starting Friday, and China is retaliating with taxes on an equal amount of U.S. products, including soybeans, pork and electric cars.

The United States accuses China of using predatory tactics in a push to supplant U.S. technological dominance. The tactics include forcing American companies to hand over technology in exchange for access to the Chinese market, as well as outright cyber-theft. Trump’s tariffs are meant to pressure Beijing to reform its trade policies.

Though the first exchange of tariffs is unlikely to inflict much economic harm on either nation, the damage could soon escalate. President Donald Trump, who has boasted that winning a trade war will be easy, said Thursday that he’s prepared to impose tariffs on up to $550 billion in Chinese imports — a figure that exceeds the $506 billion in goods that China actually shipped to the United States last year.

Escalating tariffs would likely raise prices for consumers, inflate costs for companies that rely on imported parts, rattle financial markets, cause some layoffs and slow business investment as executives wait to see whether the Trump administration can reach a truce with Beijing. The damage would threaten to undo many of the economic benefits of last year’s tax cuts.

A full-fledged trade war, economists at Bank of America Merrill Lynch and elsewhere warn, risks tipping the U.S. economy into recession.

And those caught in the initial line of fire — U.S. farmers facing tariffs on their exports to China, for instance — are already hunkered down and fearing the worst. The price of U.S. soybeans has plunged 17 percent over the past month on fears that Chinese tariffs will cut off American farmers from a market that buys about 60 percent of their soybean exports.

“For soybean producers like me this is a direct financial hit,” Brent Bible, a soy and corn producer in Romney, Indiana, said in a statement from the advocacy group Farmers for Free Trade. “This is money out of my pocket. These tariffs could mean the difference between a profit and a loss for an entire year’s worth of work out in the field, and that’s only in the near term.”

Even before the first shots were fired, the prospect of a trade war was worrying investors. The Dow Jones industrial average has shed nearly 1,000 points since June 11.

The Chinese currency, the yuan, has dropped 3.5 percent against the U.S. dollar over the past month, giving Chinese companies a price edge over their U.S. competition. The drop might reflect a deliberate devaluation by the Chinese government to signal Beijing’s “displeasure over the state of trade negotiations,” according to a report Thursday from the Institute of International Finance, a banking trade group.

The Trump administration sought to limit the impact of the tariffs on U.S. households by targeting Chinese industrial goods, not consumer products, for the first round of tariffs. But that step drives up costs for U.S. companies that rely on Chinese-made machinery or components and may force them to pass them along to their business customers, and eventually to consumers.

If you like Chick-fil-A sandwiches, for instance, you may feel the impact of the tariffs. Charlie Souhrada, a vice president of the North American Food Equipment Manufacturers, says the duties could raise the cost of a pressure cooker made by one of its members, Henny Penny. Chick-fil-A uses the cooker for its sandwiches. The administration has placed “these import taxes squarely on the shoulders of manufacturers and by extension consumers,” Souhrada said.

The Federal Reserve is already picking up signs that the threat of a trade war is causing businesses to rethink investment plans. In the minutes from its June 12-13 meeting, the Fed’s policymaking committee noted: “Contacts in some districts indicated that plans for capital spending had been scaled back or postponed as a result of uncertainty over trade policy,”

And if Trump extends the tariffs to $550 billion in Chinese imports, there’s no way consumers could avoid being caught in the crossfire: The taxes would have to hit consumer products like televisions and cellphones.

Consider what happened to the price of washing machines that were subjected to a separate series of Trump tariffs in January. Over the past year, their price has surged more than 8 percent, compared with a slight drop in overall appliance prices.

Even the first round of tariffs means that “American consumers are one step closer to feeling the full effects of a trade war,” said Matthew Shay, president of the National Retail Federation.

“These tariffs will do nothing to protect U.S. jobs, but they will undermine the benefits of tax reform and drive up prices for a wide range of products as diverse as tool sets, batteries, remote controls, flash drives and thermostats,” Shay said. “And students could pay more for the mini-refrigerator they need in their dorm room as they head back to college this fall… a strategy based on unilateral tariffs is the wrong approach, and it has to stop.”

US Army Discharging Immigrant Recruits, Reservists

Some immigrant U.S. Army reservists and recruits who enlisted in the military with a promised path to citizenship are being abruptly discharged, the Associated Press has learned.

The AP was unable to quantify how many men and women who enlisted through the special recruitment program have been booted from the Army, but immigration attorneys say they know of more than 40 who have been discharged or whose status has become questionable, jeopardizing their futures.

“It was my dream to serve in the military,” said reservist Lucas Calixto, a Brazilian immigrant who filed a lawsuit against the Army last week. “Since this country has been so good to me, I thought it was the least I could do to give back to my adopted country and serve in the United States military.”

Some of the service members say they were not told why they were being discharged. Others said the Army told them they are security risks because they have relatives abroad or because the Defense Department had not completed background checks on them.

Spokespeople for the Pentagon and the Army said that, because of the pending litigation, they were unable to explain the discharges or respond to questions about whether there have been policy changes in any of the military branches.

Legal status required

Eligible recruits are required to have legal status in the U.S., such as a student visa, before enlisting. More than 5,000 immigrants were recruited into the program in 2016, and an estimated 10,000 are serving. Most go the Army, but some also go to the other military branches.

To become citizens, the service members need an honorable service designation, which can come after just a few days at boot camp. But the recently discharged service members said their basic training was delayed, so they can’t be naturalized.

Margaret Stock, an Alaska-based immigration attorney and a retired Army Reserve lieutenant colonel who helped create the immigrant recruitment program, said she’s been inundated by recruits who have been abruptly discharged.

All had signed enlistment contracts and taken an Army oath, Stock said. Many were reservists who had been attending unit drills, receiving pay and undergoing training, while others had been in a “delayed entry” program, she said.

“Immigrants have been serving in the Army since 1775,” Stock said. “We wouldn’t have won the revolution without immigrants. And we’re not going to win the global war on terrorism today without immigrants.”

Stock said the service members she’s heard from had been told the Defense Department had not put them through extensive background checks, which include CIA, FBI and National Intelligence Agency screenings and counterintelligence interviews. Therefore, by default, they do not meet the background check requirement.

Devastated by discharge

The AP interviewed Calixto and recruits from Pakistan and Iran, all of whom said they were devastated by their unexpected discharges.

In hopes of undoing the discharge, Calixto filed a lawsuit in Washington last week alleging the Defense Department hadn’t given him a chance to defend himself or appeal. He said he was given no specific grounds other than “personnel security.”

Calixto, who lives in Massachusetts and came to the U.S. when he was 12, said in an email interview arranged through his attorney that he joined the Army out of patriotism.

A Pakistani

The Pakistani service member who spoke to the AP said he learned in a phone call a few weeks ago that his military career was over.

“There were so many tears in my eyes that my hands couldn’t move fast enough to wipe them away,” he said. “I was devastated, because I love the U.S. and was so honored to be able to serve this great country.”

He asked that his name be withheld because he fears he might be forced to return to Pakistan, where he could face danger as a former U.S. Army enlistee.

Portions of the 22-year-old’s military file reviewed by the AP said he was so deeply loyal to the U.S. that his relationships with his family and fiancee in Pakistan would not make him a security threat. Nonetheless, the documents show the Army cited those foreign ties as a concern.

An Iranian

An Iranian citizen who came to the U.S. for a graduate degree in engineering told the AP that he enlisted in the program hoping to gain medical training. He said he had felt proud that he was “pursuing everything legally and living an honorable life.”

In recent weeks, he said, he learned that he’d been discharged.

“It’s terrible because I put my life in the line for this country, but I feel like I’m being treated like trash,” he said. “If I am not eligible to become a U.S. citizen, I am really scared to return to my country.”

He spoke on condition of anonymity because of those fears.

It’s unclear how the service members’ discharges could affect their status as legal immigrants.

In a statement, the Defense Department said: “All service members (i.e. contracted recruits, active duty, Guard and Reserve) and those with an honorable discharge are protected from deportation.”

However, immigration attorneys told the AP that many immigrants let go in recent weeks were an “uncharacterized discharge,” neither dishonorable nor honorable.

Special recruitment program

The service members affected by the recent discharges all enlisted in recent years under a special program aimed at bringing medical specialists and fluent speakers of 44 sought-after languages into the military. The idea, according to the Defense Department, was to “recognize their contribution and sacrifice.”

President George W. Bush ordered “expedited naturalization” for immigrant soldiers in 2002 in an effort to swell military ranks. Seven years later the Military Accessions Vital to the National Interest program, known as MAVNI, became an official recruiting program.

Many service members recruited through the program have proven to be exemplary. In 2012, then-Sgt. Saral K. Shrestha, originally from Nepal, was named U.S. Army Soldier of the Year.

In general, the immigrant recruits have been more cost-effective, outperforming their fellow soldiers in the areas of attrition, performance, education and promotions, according to a recently released review by the RAND Corporation, a nonprofit research institution.

Condo to Chick-Fil-A, Some of the Allegations Against Pruitt

Environmental Protection Agency Administrator Scott Pruitt was the target of numerous federal ethics investigations. Allegations included the eyebrow-raising — looking to obtain a used mattress from the Trump International Hotel — and graver ones, such as accounts that he used his office to try to drum up high-dollar business opportunities for his wife.

Some of the key allegations:

THE USED MATTRESS: Pruitt directed his then-aide, Millan Hupp, to call the Trump International Hotel in Washington about buying a used mattress, Hupp told staffers of a House oversight committee, which is investigating the EPA chief. Hupp also apartment-hunted for her then-boss. Staffers also reported being asked to pick up dry cleaning, find a particular lotion and help arrange personal travel for Pruitt and his family. Federal ethics codes bar staffers from conducting personal errands for bosses.

​CHICK-FIL-A: Pruitt directed Hupp’s sister, Sydney, who also worked for him at EPA, to reach out to a senior executive at Chick-fil-A about a “business opportunity” on Pruitt’s behalf. Pruitt was interested in acquiring a franchise for the chicken restaurant for his wife. Pruitt laughed off a reporter’s questions about the matter, saying, “We love Chick-fil-A.” Federal ethics codes prohibit officials from using their office for personal gain.

SECURITY: Pruitt and the EPA cited the risk of attacks by people opposed to his policies to explain unusual and costly security decisions, including premium-class flights for Pruitt and a bodyguard and a $43,000 soundproof booth for private phone calls. He also demanded 24-hour-a-day protection by armed officers, resulting in a swollen 20-member security detail that blew through overtime budgets and racked up expenses of more than $3 million.

DC CONDO: Pruitt’s job had appeared in jeopardy since the end of March, when ABC News first reported that he leased a Capitol Hill condo last year for just $50 a night. It was co-owned by the wife of a veteran fossil fuels lobbyist whose firm had sought regulatory rollbacks from EPA. Mocking, hand-made posters soon appeared taped to telephone poles around Washington, showing a picture of a grinning Pruitt offering housing at bargain rates.

TRAVEL: Pruitt’s tenure at EPA of less than two years included trips to Italy, France and Morocco, flying premium class and moving with an entourage of EPA staffers and guards. Repeated weekend trips home to Tulsa on taxpayer-bought flights earned Pruitt negative press coverage.

California Senators Reach Agreement on Net Neutrality Bill

Key California lawmakers said Thursday they’ve reached an agreement on legislation to enshrine net neutrality provisions in state law after the Federal Communications Commission dumped rules requiring an equal playing field on the internet.

California’s bill is one of the nation’s most aggressive efforts to continue net neutrality, and the deal comes after a bitter fight among Democrats over how far the state should go.

Democratic Sen. Scott Wiener, who repudiated his own legislation when major pieces were removed two weeks ago, said those provisions have been restored under his agreement with Democratic Assemblyman Miguel Santiago.

“We need to ensure the internet is an open field where everyone has access, the companies that are providing internet access are not picking winners and losers,” Wiener told reporters at a Capitol news conference.

Santiago came under fire from net neutrality advocates around the country when the Assembly committee he leads stripped key provisions from the legislation — a decision that drew rebukes from members of Congress, including House Minority Leader Nancy Pelosi. 

Santiago became the subject of online memes and a flood of calls to his office accusing the Los Angeles lawmaker of selling out to internet providers, citing his contributions from AT&T.

Santiago portrayed net neutrality as crucial to the future of the progressive movement and called on other liberal states to follow suit.

“There’s a lot of blue states in the country,” Santiago said. “We expect them to stand up and join us in this fight and pass measures that are equally as strong.”

Internet companies say it’s not practical for them to comply with state-by-state internet regulations and warn that Wiener’s bill would discourage the rollout of new technology in California.

“For decades, California has benefited from American innovation and investment, but SB 822 is a flawed and consumer unfriendly approach,” CTIA, a wireless industry lobbying group, said in a statement. 

The FCC last year repealed Obama-era regulations that prevented internet companies from speeding up or slowing down the delivery of certain content. Net neutrality advocates worry that, without net neutrality rules, internet providers would be free to block political content, slow down websites from their competitors or drive consumers to their own content.

The debate in California is being closely watched by net neutrality advocates around the country, who are looking to the state to pass sweeping net neutrality provisions that could drive momentum in other states.

Wiener said the key provisions removed from his bill were restored. One would require data to be treated equally at the point where it enters an internet company’s network, not just within the company’s own infrastructure.

The other bans a practice known as “zero rating,” in which internet or cellphone providers exempt certain data from a monthly cap. Critics of the practice say zero rating encourages low monthly data caps and cuts off vast swaths of the internet for people who can’t afford higher data allotments. 

He declined to release the new bill language until lawmakers return in August from a summer break.

Under the agreement, Wiener’s bill will be linked to separate legislation by Democratic Sen. Kevin de Leon to prohibit state contracting with companies that don’t abide by net neutrality provisions.

Acting EPA Chief Expected to Carry Out Deregulation

President Donald Trump says he has “no doubt” the new acting chief of the Environmental Protection Agency, Andrew Wheeler, will continue with “our great and lasting EPA agenda.”

But environmentalists and some Democrats are already saying they are afraid that’s exactly what he will do — keep Scott Pruitt’s policy of deregulation.

The Ohio-born Wheeler is a former lawyer and longtime coal industry lobbyist.

He is also a former chief of staff for Oklahoma Republican Senator James Inhofe — one of the country’s most vocal deniers of climate change.

In addition, Wheeler is a critic of those who say human activity is causing the Earth to get warmer.

“We have to restore public trust in the EPA and let the agency fulfill its mission rather than gut the laws that keep our families safe,” Sierra Club Executive Director Michael Brune said.

But a former Wheeler colleague turned oil and gas lobbyist, Matthew Dempsey, told The New York Times that Wheeler is well-qualified to at least temporarily take over the EPA.

“Andrew is one of the most well-known, well-respected policy professionals in Washington on energy and environment. He knows everybody,” Dempsey said.

Wheeler will officially take over the agency Monday as Trump considers whom he will nominate as his next EPA chief. The job is a Cabinet position, and the nominee must receive Senate approval.

Keith Gaby, a spokesman for the Environmental Defense Fund, said the desire for clean air and clean water transcends politics, and he told VOA that Trump might have a hard time filling the slot.

“I doubt that President Trump is going to get a new EPA administrator confirmed,” Gaby said. “His policies on the environment are among his least popular. He’s not a very popular president, but he’s less popular on environmental issues.”

Trump could nominate Wheeler, but he has said he would not be interested in running the department permanently. 

Life in Trump’s Cabinet: Perks, Pestering, Power, Putdowns

Commerce Secretary Wilbur Ross came in for an Oval Office tongue-lashing after he used a mundane soup can as a TV prop. Defense Secretary Jim Mattis got overruled by President Donald Trump’s announcement that a new “Space Force” is in the offing. Environmental Protection Agency head Scott Pruitt, who resigned Thursday, caught a sharp admonition from Trump to “knock it off” after his ethics problems dominated cable television.

Welcome to the Trump Cabinet, where broad opportunities to reshape the government and advance a conservative agenda come with everyday doses of presidential adulation, humiliation, perks and pestering. Sometimes all at roughly the same time. 

Members of the president’s Cabinet have a measure of prestige and power. They can streak across the skies in Air Force One with Trump, act unilaterally to roll back regulations not to their liking and set policies with far-reaching implications for millions of Americans. But they also can quickly find themselves in a harsh spotlight when an administration policy comes under question.

With the issue of migrant children separated from their families dominating headlines, Health and Human Services Secretary Alex Azar was so determined to get a better handle on the 12,000 migrant children under his department’s care that he was up until 1 a.m. one night last week personally poring through cases in the operations center of the bunker-like HHS building at the foot of Capitol Hill.

The Cabinet members are lashed to a mercurial president who has been known to quickly sour on those working for him and who doesn’t shy from subjecting subordinates — many of them formerly powerful figures in their own rights — to withering public humiliation. Think Attorney General Jeff Sessions, a former senator who was labeled “beleaguered” early on by presidential tweet and who has since been repeatedly subjected to public criticism.

Trump’s Cabinet, a collection of corporate heavyweights, decorated generals and influential conservatives, has been beset by regular bouts of turnover and scandal. A Cabinet member’s standing with Trump — who’s up, who’s down; who’s relevant, who’s not — is closely tied to how that person or their issue is playing in the press, especially on cable TV.

Over the last 16 months, that dynamic has resulted in a Cabinet with varying tiers of influence with the president. Though all 24 Cabinet members, including the vice president, can have the president’s ear at times, some have been able to consistently influence Trump behind the scenes and mostly retained his respect. Others have fended off — so far — a swarm of accusations of ethical violations and moved steadily forward enacting the president’s agenda. A third group has largely flown under the radar, their names out of the headlines and their jobs seemingly secure.

Trump, like many modern presidents, has consolidated power in the West Wing and largely judges his Cabinet members by how well they reflect upon him, according to nearly two dozen administration officials, outside advisers and lawmakers. Most of those interviewed for this account spoke on condition of anonymity because they were not authorized to talk publicly about private discussions.

The powerful

One key measure of the effectiveness of Cabinet members has been their ability to manage up to the president — and manage their disappointment when he ignores their counsel.

Mike Pompeo, first as Trump’s CIA director and now as his secretary of state, has seemingly cracked that code.

During a classified briefing on economic assistance for one African nation, the then-CIA director whipped out an annotated map, pointing out where U.S. troops were located and showing how aid contributed to their counterterrorism mission. One official in the room said Pompeo presented the map as though he had worked it up the night before, rather than as something produced by his teams of analysts, earning brownie points and a sympathetic response from the president.

Pompeo’s stock with the president ran deep as an early supporter. But as CIA director, he worked with the national security team to try to steer the unconventional president toward more conventional approaches. Their personal relationship grew as Pompeo attended nearly every presidential daily intelligence briefing he could — always bringing visual aids.

His predecessor as secretary of state, Rex Tillerson, never clicked with the president and often voiced his objections in a passive-aggressive manner that infuriated the president, delivering retorts like “if you say so” and “you know best, sir,” according to the official. Tillerson was fired in March, months after word leaked that he had reportedly privately referred to Trump as “a moron.”

Other officials have also remained in close orbit around Trump, in part by lavishing frequent praise on the president both publicly and privately. Trump has remained fond of hard-charging Budget Director Mick Mulvaney, praising his combative briefings with the press. Treasury Secretary Steven Mnuchin and Ross, despite his mocked TV appearance, also have largely remained in Trump’s good graces. The president attended Mnuchin’s Washington wedding last year and the treasury secretary has become a regular on the Sunday talk shows.

Administration officials believe the Cabinet member who has been most successful in managing Trump has been Mattis. The retired Marine general, thought of as a warrior monk for his academic mindset, is soft-spoken in his interactions with the president — often passing up the chance to speak in meetings — but his advice carries outsized weight.

Mattis is a frequent guest at White House lunches and dinners, a sign of his elevated status. He frames his suggestions to the president in terms of his expertise, and when Trump is leaning in a different direction calmly makes his case. White House officials have noticed that Trump sometimes later repeats historical military anecdotes that Mattis related to him — evidence the president was really listening.

But even Mattis has seen his influence wane in recent weeks — he opposed the Space Force plan before Trump announced it — as the president has grown less tolerant of dissenting viewpoints in the Oval Office.

The embattled

Winding down a presidential monologue extolling the EPA for rolling back regulations and shrinking staff, Trump turned to Pruitt across the Oval Office to discuss one other matter.

“Knock it off,” Trump said at the end of the April meeting.

With that terse yet mild reprimand, Pruitt retained his job despite the long run of bad headlines he’s generated for a series of questionable ethical moves. The incidents number more than a dozen, including renting a lobbyist’s Capitol Hill home at below-market rate, spending millions on security and travel, and using government staff to try to get his wife a fast-food chicken franchise.

Congressional Democrats, some influential Republicans and even much of the West Wing, including chief of staff John Kelly, urged Trump to fire Pruitt. The president refused, believing that Pruitt’s effectiveness on the job outweighed his personal transgressions. However, Trump on Thursday accepted Pruitt’s resignation.

Pruitt is far from alone in drawing scrutiny for possible ethical violations. Ryan Zinke, the interior secretary, was accused of spending tens of thousands of dollars on office renovations and private flights. David Shulkin was fired from his post as veterans affairs secretary amid a mutiny from his own staff after an internal review found ethics violations related to his trip to Europe with his wife last summer.

Trump berated his first health and human services secretary, Tom Price, for a series of misstatements last year that the president felt was complicating the administration’s push to repeal President Barack Obama’s health care law, according to a former administration official. Price was later fired amid his own ethical scandal involving spending hundreds of thousands in taxpayer dollars on private travel.

All told, Trump has had more turnover of Cabinet-level positions than any president at this point in their tenure in the last 100 years.

But what has angered Trump more than the substance of the scandals are the bad images they produced, according to four White House officials and outside advisers. The president has complained to confidants that more members of his Cabinet “weren’t good on TV.” He fumed to one ally in the spring, at the height of the ethical questions surrounding Pruitt, Zinke and Housing and Urban Development head Ben Carson, that he was only seeing his Cabinet on TV for scandals and not for fulfilling campaign promises.

Trump has also complained that he wants to see more of them on cable television defending his administration and showcasing his accomplishments. In recent months, the White House has pushed Cabinet members to make more public shows of support: They were encouraged to tweet about Trump’s 500th day in office; were asked to stop by an opioid exhibit on the Mall; and were urged to show up at the annual congressional baseball game.

Zinke may have gone a bit overboard. He showcased his support for Trump by tweeting out a photo of himself in late June wearing socks with Trump’s face and the slogan “Make America Great Again.” He later deleted it after outside groups complained he was violating federal law by endorsing a political slogan.

Transportation Secretary Elaine Chao, for her part, had an angry exchange with protesters outside a Washington restaurant while defending her husband — Senate Majority Leader Mitch McConnell — and the president’s policy of separating migrant families at the border.

“Why don’t you leave my husband alone?” she demanded.

White House press secretary Sarah Sanders plays down reports of tension between Trump and his Cabinet, saying the president typically talks to at least one member a day and now has a better sense of “what he wants and what his expectations are” from them.

“The president likes to engage,” Sanders said. “He likes to talk to his team. He likes to get their feedback. He likes to throw out ideas.”

The quiet ones

Every Wednesday at 7 a.m., up to a dozen Cabinet members leave their staffs behind and quietly gather, often at the mammoth Department of Agriculture building just south of the National Mall.

There, they dive into Bible study. Energy Secretary Rick Perry, Agriculture Secretary Sonny Perdue, Education Secretary Betsy DeVos and Carson are among the regular attendees, and at times they are joined by Vice President Mike Pence and others.

The members rarely speak about the sessions, reflecting the low-key, keep-their-heads-down approach most have taken to their positions. Some have had boomlets of bad press — Carson over a $31,000 dining set ordered for his office, DeVos for a disastrous television interview in which she had trouble with basic facts about her department — but they have mostly avoided the devastating headlines and cable chyrons generated by the likes of Pruitt and Price.

Perry has told allies that he wants to stay in his lane and build relationships on Capitol Hill while frequently turning up in the West Wing — including popping up at key events, like Pompeo’s swearing-in — to get valuable face time with the president. The former Texas governor, who turned down a chance to succeed Shulkin at the VA, has taken pride in his lower profile, joking about how he doesn’t get bad press like some of his colleagues.

While many of the Cabinet members are collegial, there have been moments of strain between agencies. During the onslaught of heartbreaking images from the border as migrant families were separated, a quiet turf battle emerged among the Justice, Homeland Security and Health and Human Services departments. Homeland Security head Kirstjen Nielsen, who had been on shaky ground with Trump for an increase of border crossings, later became the public face of the policy and was heckled at a Mexican restaurant.

Trump likes to take Cabinet secretaries along with him on Air Force One trips — in part to defray the costs for the White House, according to a former administration official. Past administrations, including Obama’s, used the same tactic.

The White House tries to hold Cabinet meetings every two weeks — the beginnings are open to the press — to foster better interaction, aides have said, but also to project the feel of a corporate boardroom with Trump presiding as America’s CEO and overseeing the nation’s business.

Those sessions, held more frequently than under Obama, have become a signature image of the Trump White House. Cabinet members, accomplished individuals in their own rights, take turns around a table praising the president in a manner reminiscent of “Dear Leader” sessions in authoritarian nations.

Chao in June 2017 said, “I want to thank you for getting this country moving again, and also working again.”

Price: “I can’t thank you enough for the privilege that you’ve given me, and the leadership you’ve shown.”

Mnuchin: “It’s been a great honor traveling with you around the country for the past year, and an even greater honor to be serving you on your Cabinet.”

Trump returned the favor last month at the Federal Emergency Management Agency, turning a meeting on the upcoming hurricane season into a storm of compliments.

To Chao: “All you do is produce. You do it in a very quiet way and so effective and so incredible.”

To Azar: “Alex, I’m very proud of what you’ve done. We’re going to have a great health care bill planned.”

To Carson: “What you’re doing is great, Ben. That’s really inspirational. More than just brick and mortar.”

On it went, as Trump went around the room to shower all of the present Cabinet members with praise. All but one, that is.

“Thank you, Jeff. Thank you very much,” is all Trump said to his attorney general.

The attorney general

About a half-dozen members of Trump’s inner circle, including then-chief of staff Reince Priebus, then-chief strategist Steve Bannon and senior adviser Jared Kushner, were hurriedly summoned to the Oval Office on a chilly Friday afternoon in March 2017. Once they were inside, Trump erupted.

The day before, Sessions had announced his recusal from the Russia probe, blindsiding the president. Trump screamed at the staffers, according to one person with direct knowledge of the conversation, demanding to know how Sessions could be so “disloyal” while musing that he should fire the attorney general, who had been one of his earliest and most loyal supporters.

From that moment forward, Sessions became a singular figure in Trump’s Cabinet. No Cabinet member in recent memory has been the target of so many broadsides from his own boss yet has still managed to hang onto his job.

In an onslaught of tweets and interviews, Trump has tormented Sessions publicly, while in private often refusing even to speak his name, sometimes just referring to him simply as “one of my attorneys.” He unloads to confidants whenever Sessions appears on the TV in his private West Wing kitchen or his office on Air Force One. And he has accused the Justice Department of conspiring against him.

But to his deep frustration, Trump has been restrained from firing Sessions, for at least as long as special counsel Robert Mueller’s probe continues. The attorney general has support from conservatives and Republican senators, and Trump’s confidants, including attorney Rudy Giuliani, believe that dismissing Sessions would upend the special counsel’s investigation.

Sessions, for his part, has largely been silent in the face of Trump’s attacks, his defense limited to a statement defending the department’s “integrity and honor” and a highly visible dinner with his two top lieutenants in February that was interpreted by some as a sign of a solidarity pact in case the president moved to fire one, or all, of them.

The attorney general has told allies that the post is his dream job and he aims to keep pushing his agenda, including a hawkish immigration stance, even if it means coming under fire from the White House. Earlier this year, to mark the one-year anniversary of his confirmation, his senior aides gave him a gift: a bulletproof vest emblazoned with his name.

Kenya’s Digital Taxi Services Paralyzed, Strike Enters 4th Day

Drivers of Kenya’s digital taxis shut down operations Monday in protest of what they term as exploitative corporate practices. They say the firms are charging low rates to their clients, yet imposing high commissions on the drivers, leading them to work longer hours with little pay.

The Digital Taxi Association of Kenya, representing more than 2,000 digital taxi drivers, is in the fourth day of a protest that has seen drivers switch off their services, stalling transportation in the country.

The drivers say client charges have reduced over time as more digital taxi apps enter the market, but their commissions to the taxi firms have remained the same.

The drivers are demanding a review of their rates and working conditions. Through their association, they want the digital taxi services to double their client rates and reduce driver commissions to the companies so they can earn decent wages.

“The fare itself, it has been very low from the word go,” said Anthony Maina, an Uber driver in Kenya. “The percentage after they get their commission, we get very little returns.”

The main digital taxi services in Kenya are the American brand Uber and Estonian Taxify, as well as at least three others.

Uber charges a 25 percent commission on each ride, while apps like Taxify charge 15 percent. The drivers want rates at least doubled per kilometer, and commissions slashed to 10 percent.

Kenya Digital Taxi Services Director David Muteru is calling on Kenya’s Ministry of Transport to resolve the issue.

“All these things are happening where we have government agencies who can [take care of all these things] without having pressure from us,” Muteru said. “It is not our wish to come here and start demonstrating. Our demand is that we must have regulations. [The pricing] is very skewed in favor of the app companies to the detriment of drivers.”

Maina says Uber reduced the maximum working hours from 18 to 12 in an effort to better the working conditions, but drivers overwork to earn more to meet expenses.

“We cannot afford daily maintenance, he said. “An example, each and every day you have to fuel the vehicle, you have to wash the car, and if you happen to be in the city center, you have to pay the city council. All those expenses, when you put them together and maybe you do not own the vehicle yourself, you have to pay the partner and you know fuel has been going up every day and they are not adjusting their commission or fare. So that has been a big problem for us.”

Earlier in the week, Uber drivers in South Africa also went on strike to protest the 25 percent fee charged by Uber.

Digital Taxi Association representatives in Kenya are in negotiations with the taxi firms and Kenya’s Ministry of Transport as their strike continues.

Illegal Cigarette Trade Costing S. Africa $510 mln a Year

South Africa has become one of the biggest markets for illegal cigarette sales and is losing out on 7 billion rand ($514 million) a year in potential tax revenue, a report funded by a tobacco industry group said on Thursday.

The study carried out by Ipsos found illegal cigarette trade spiked between 2014 and 2017 after a probe into the underground industry was dropped by the South African Revenue Service (SARS) under suspended commissioner Tom Moyane.

Moyane, an ally of former President Jacob Zuma, is the main focus of an ongoing SARS commission of inquiry over allegations of widespread corruption at the tax agency under his watch. He denies any wrongdoing.

Former head of enforcement at SARS, Gene Ravele, told the inquiry last week the decision to drop the investigation into illegal tobacco trade was intended to let it continue.

“After I left [in 2015], there was no inspections at cigarette factories. It was planned,” said Ravele.

A packet of cigarettes should incur a minimum tax of 17.85 rand ($1.31), yet packs are sold on the black market for as little as 5 rand as manufacturers dodge official sales channels to avoid paying tax, the Ipsos study found.

Three-quarters of all South Africa’s informal vendors — totaling 100,000 — sell illegal cigarettes in an industry that was worth 15 billion rand ($1.10 billion) over the last three years, the report said.

“Independent superettes, corner cafes and general dealers are the key channels for ultra-cheap brands, with hawkers providing a key entry point, mainly through the loose cigarette sales,” Ipsos head of measurement Zibusiso Ngulube said. “These manufacturers are perfectly primed to continue to grow at a fast rate.”

The study was funded by The Tobacco Institute of Southern Africa, which includes arms of global manufacturers like Philip Morris International, Alliance One and British American Tobacco.

Merkel Would Back Cutting EU Tariffs on US Car Imports

German Chancellor Angela Merkel said on Thursday she would back lowering European Union tariffs on U.S. car imports, responding to an offer from Washington to abandon threatened levies on European cars in return for concessions.

“When we want to negotiate tariffs, on cars for example, we need a common European position and we are still working on it,” Merkel said.

U.S. President Donald Trump threatened last month to impose a 20-percent import tariff on all EU-assembled vehicles, which could upend the industry’s current business model for selling cars in the United States.

According to an industry source, the U.S. ambassador to Germany told German car bosses from BMW, Daimler and Volkswagen at a meeting on Wednesday that Trump could abandon such threats if the EU scrapped duties on U.S. cars imported into the bloc.

Merkel said any move to cut tariffs on U.S. vehicles would require reductions on those imported from other countries to conform with World Trade Organization rules.

“I would be ready to support negotiations on reducing tariffs, but we would not be able to do this only with the U.S.,” she said.

German automotive trade body VDA said any suggestions about mutually removing tariffs and other trade barriers were positive signals.

“But it is clear that the negotiations are exclusively being held at a political level,” it said in a statement.

Current U.S. import tariff rates on cars are 2.5 percent and on trucks 25 percent. The EU has a 10 percent levy on car imports from the United States.

Trump hit the EU, Canada and Mexico with tariffs of 25 percent on steel and 10 percent on aluminum at the start of June, ending exemptions that had been in place since March.

The EU executive responded by imposing its own import duties of 25 percent on a range of U.S. goods, including steel and aluminum products, farm produce such as sweetcorn and peanuts, bourbon, jeans and motor-bikes.

Trump’s protectionist trade policies, which also target Chinese imports, have raised fears of a full-blown and protracted trade war that threatens to damage the world economy.

 

 

 

Investors Nervous Ahead of July 6 Deadline for US Tariffs Against China

Trade rhetoric is spilling into the real world of jobs and consumer goods. The United States is set to impose tariffs on $34 billion worth of goods from China on July 6. Beijing is fighting back with its own $34 billion of tariffs on American goods. As VOA’s Arash Arabasadi reports, investors are understandably on edge.

US Justice Ginsburg Gets Israeli Achievement Award

A prestigious Jewish organization gave its first lifetime achievement award Wednesday to U.S. Supreme Court Justice Ruth Bader Ginsburg.

The Genesis Prize Foundation cited what it calls Ginsburg’s “groundbreaking legal work in the field of civil liberties and women’s rights” when it announced late last year she would be the recipient.

“I am a judge, born and raised and proud of being a Jew. The demand for justice, for peace, for enlightenment runs thorough the entirety of Jewish tradition and Jewish history,” Ginsburg said in her acceptance speech in Tel Aviv. 

She said she hopes to have the “strength and courage to remain steadfast in service to that demand” as she continues serving on the United States’ highest court.

Former President Bill Clinton, who appointed Ginsburg in 1993, sent a congratulatory letter, saying he is proud to have named her to the court.

“Your groundbreaking legal work has pioneered civil liberties and women’s rights in the United States,” Clinton wrote.

A group of wealthy Russian-Jewish businessmen, working with the Israeli government, established the Genesis Foundation in 2013 to honor Jews who have made major contributions to humanity.

It comes with a $1 million prize.

Past recipients have been former New York City Mayor Michael Bloomberg, actor Michael Douglas, classical violinist Itzhak Perlman, British sculptor Anish Kapoor and actress Natalie Portman.

Portman created a controversy last year when she refused to attend the ceremony, saying she did not want to look like she was endorsing the policies of Prime Minister Benjamin Netanyahu.

Ginsburg is the first recipient of the foundation’s lifetime achievement award.

Students Object to University Role in Movie on Trump

A book about an alleged prophecy describing Donald Trump’s win as U.S. president is being produced as a movie by Liberty University, but students at the Christian college are pushing back on the film.

The production, in which Liberty University students are technicians, editors and set decorators for class credit, tells the story of Mark Taylor, a retired firefighter from Orlando, Florida. Taylor said in 2011 God told him Trump would become president of the United States. Trump won the election in 2016.

“This movie could reflect very poorly on all Liberty students and Liberty University as a whole,” states an online petition called “Cancel the Liberty University Film Programs Heretical Film Project,” created by Liberty students.

The author’s “claims to have received prophecies directly from God … do not align with the Bible’s message,” states the petition signed by more than 2,000 respondents.

Liberty University, in Lynchburg, Virginia, partnered with Christian filmmaker Rick Eldridge, owner of Reel Works Studio in Charlotte, N.C., to produce the book, which was published in July 2017. 

Liberty University staff contends that this has been an excellent learning experience for students in cinematic arts at the university.

“We think this feature-length work experience is unique to our department among film schools,” said Stephan Schultze, Liberty professor of cinematic arts and director of the film. “This distinction gives our students a skill set that makes them ready for the workforce upon graduating.”

Movie production experience

Students agree they have gained hands-on experience working on the movie production. But some said they object to the alleged prophecy and the message.

In their online petition, they cited a later interpretation of the Bible, 1 John 4:1, that suggests believers “test the spirits to see whether they are from God, because many false prophets have gone out into the world.”

“We should be very wary of modern-day prophets,” the petition says. “Mark Taylor has claimed God told him that electing Trump will save the world, which is unbiblical at best and heretical at worst.”

“Liberty’s mission statement and purpose is to be a light on a hill and to train champions for Christ,” the petition continues. “Openly supporting both a ‘modern-day prophet’ and Trump as a school does not convey this mission.”

Liberty University President Jerry Falwell Jr. is an outspoken Trump supporter and was appointed to the Trump Task Force for Higher Education in 2017.

Schultze said the Liberty students who worked on the film served in positions that usually go to people with at least five years of experience in the film industry.

The Liberty students pushed back, saying they were “of the distasteful opinion that the producer had only come to Liberty to make his film because he could get free student labor that would significantly lower the cost of making the film,” according to a source who asked to remain anonymous. “Many of us felt used at times, which was another reason why we petitioned against the film in the first place.”

Students were given other options to working on the prophecy film, but those were of lesser experience, the source said. Well into the making of the film, students said, “it became clear … after the initial script reading and the many rewrites … the film did have a political agenda, which we were against.”

Biopic-style film

Schultze said the film is a biopic that “chronicles real-life events, following a fireman [Taylor] suffering from PTSD who believes he has heard a message from God, that Donald Trump will be the next president.” He did not respond directly to whether he thought the film was heretical but said he would “advise people to watch the movie first.”

“I think the film will be well-received, and people will be inspired to know that our students have created a narrative film whose quality is strong enough to warrant a national theatrical release on more than 1,200 screens,” he said.

“This is been a great experience for students, and I believe it will provide them with the edge they need for employment upon graduating,” Schultze added.

He said that Liberty University did not receive or pay any fees in exchange for the movie being produced there. He said there was a “cost benefit to student involvement,” but there was also “a risk to engage newly skilled labor still in a steep learning curve. It all evens out in the end because additional shooting days are required for the teaching process to take place on set. Our students’ education is a huge benefactor in the process.”

Students contested that the experience had enhanced their learning.

“Many do not want this movie on their resume and some are even considering … dropping out,” the student petition said.

Eldridge of Reel Works said he wants the film’s message to resonate with its viewers.

“We hope that they will be inspired by all that is great about our country,”  Eldridge said of the audience in an email to VOA. “All the while we hope that they will be entertained by the story and the many voices who will speak during our reflective conversations after the dramatic story.”

Woman Climbs Statue of Liberty in Standoff With Police

The Statue of Liberty, a powerful symbol of US freedom and long a beacon to immigrants, was shut down Wednesday on Independence Day as a woman refused to leave its base in a lengthy standoff with police.

New York police assisted U.S. Park Police in removing the woman from the monument.

Local media first reported that demonstrators opposed to President Donald Trump’s immigration policy protested there and that the woman was among the demonstrators.

But Rise and Resist NYC, which organized the protest, said the woman was not affiliated with the group.

At least seven people were arrested earlier for hanging a banner from the base of the statue that read “Abolish ICE,” referring to U.S. Immigration and Customs Enforcement, the agency at the forefront of the immigration debate. 

US Offers German Automakers Solution to Trade Spat, Report Says

United States Ambassador to Germany Richard Grenell reportedly told German auto makers Wednesday the U.S. would back off threats of tariffs on European car imports in exchange for the European Union’s elimination of duties on U.S. cars.

The German newspaper Handelsblatt reported Grenell told BMW, Daimler and Volkswagen executives of the proposal during a meeting Wednesday at the embassy in Berlin.

Daimler and Volkswagen declined to comment and BMW was not immediately available for comment, the report said.

The reported proposal comes after the European Union warned U.S. President Donald Trump last Friday the potential indirect costs of imposing tariffs on cars could amount to $294 billion.

The EU report, submitted to the U.S. Commerce Department, maintained the tariffs would disrupt cross-border supply chains in the automotive industry. The report said the tariffs could possibly trigger higher U.S. industrial costs, raise consumer prices, hurt exports and cost jobs.  

The World Trade Organization said Wednesday trade barriers being set by world economic powers could jeopardize the global economic recovery.

“This continued escalation poses a serious threat to growth and recovery in all countries, and we are beginning to see this reflected in some forward-looking indicators,” WTO Director General Roberto Azevendo said.

Azevendo did not expound on his remarks, but the WTO’s quarter trade outlook indicator in May suggested trade growth in the second quarter would decelerate.

 

Europe Could Suffer Collateral Damage in US-China Trade War

European businesses are unsettled as they watch the U.S. and China collide over trade. And for good reason: the nascent global trade war could represent the biggest single threat to the economic upswing that has helped the region get past its financial crisis.

In theory, some European companies could benefit, jumping into market niches if Chinese businesses are kept out of the U.S. market. But that would only be a few companies or sectors.

When your entire economy is heavily dependent on trade, an overall slowdown in global commerce caused by tit-for-tat import taxes provokes fear and undermines confidence.

And that’s just what’s happening in Europe. By one measure, business confidence has fallen in six of the past seven months in Germany, where exports are almost half of annual economic output.

“It’s worth all our efforts to defuse this conflict, so it doesn’t become a war,” German Chancellor Angela Merkel said Wednesday.

The U.S. is due to put tariffs on $34 billion worth of Chinese goods on Friday. The Chinese will respond with tariffs on an equivalent value of U.S. products such as soybeans, seafood and crude oil.

Amid all this, Europe has its own trade dispute with the U.S. After the U.S. put tariffs on steel and aluminum from many allies, including the European Union, the 28-country bloc responded with import taxes on some $3.25 billion of U.S. goods. The Trump administration is also studying the option of putting tariffs on cars, which would significantly escalate the confrontation.

The head of the EU’s executive, Jean-Claude Juncker, will head to Washington in late July to try to personally persuade Trump against further measures targeting Europe.

The disputes over trade threaten to spoil the good times for Europe’s economy.

Growth last year was the strongest in a decade, since before the global financial crisis. While that has eased in recent quarters, the economy is still strong enough to create jobs. The number of unemployed fell by 125,000 in May, leaving unemployment in the 19 countries that use the euro at 8.4 percent, the lowest since 2008 and down from a high of 12.1 percent in 2013.

“Trade tensions stoked by U.S. President Donald Trump are clouding the economic outlook in Europe,” wrote analysts at Berenberg bank in London. They rated the trade risk ahead of troubles from Italy’s heavy debt load or faster than expected interest rate increases from the U.S. Federal Reserve.

Many European companies would suffer because they both produce and sell goods in the U.S. and China, the world’s biggest economies.

For example, tariffs that China is expected to impose Friday on U.S.-made autos would hit German carmakers Daimler and BMW since they both make vehicles in the United States and export them to China.

Daimler has already lowered its outlook for profits, citing higher than expected costs from the new tariffs. BMW warned in a letter to Commerce Secretary Wilbur Ross on Friday that tariffs would make it harder for it to sell in China the vehicles it builds at its factory in Spartanburg, South Carolina, “potentially leading to a strongly reduced export volumes and negative effects on investment and employment in the United States.”

Last year, BMW exported 272,000 vehicles from the Spartanburg plant, more than half its total production. Of those, 81,000 — worth $2.37 billion — went to China. BMW says its exports reduced the U.S. trade deficit by around $1 billion.

By themselves, the tariffs that take effect Friday won’t immediately have a dramatic impact on global trade. The fear is that retaliation will spiral, hitting the total amount of global commerce.

Even if the overall effect is to harm growth, there could be benefits for some European companies and sectors. Economists Alicia Garcia Herrero and Jianwei Xu at the French bank Natixis say that European makers of cars, aircraft, chemicals, computer chips and factory machinery could in theory snare market share by substituting for Chinese or American products in the two markets. But that’s only if Europe’s own trade dispute with the U.S. does not escalate — a big if.

Europe is waiting to see whether the Trump administration will go ahead separately with tariffs on auto imports. European companies like BMW, Daimler’s Mercedes-Benz, Volkswagen’s Porsche and Audi divisions, and Fiat Chrysler send $46.6 billion worth of vehicles every year to the U.S. Some 13.3 million people, or 6.1 percent of the employed population of the EU, work in the automotive sector, according to the European Automobile Manufacturers Association.

“Europe cannot win anything” on an overall basis “for one obvious reason: we are net exporters,” said Garcia Herrero, chief economist for Asia Pacific at Natixis and a senior fellow at European research institute Bruegel. “But we should not understate the view that some sectors could get something out of a U.S.-China trade war.”

Amid the brewing conflict, China has sought to get Europe on its side, putting on a diplomatic charm offensive during visits by Merkel and French Prime Minister Edouard Philippe. The EU and China agreed last month to deepen commercial ties and support trade rules. But the EU remains a close, longtime ally of the U.S. on a range of issues, despite the current tensions with the Trump administration.

One negative outcome for Europe, Herrero said, would be if Trump can push the Chinese into a trade agreement aimed at reducing the U.S. trade deficit. The additional U.S. goods to China could come at the expense of European competitors.

“If China concedes to the U.S. proposed agreement, the whole situation faced by the EU would be much tougher,” she and Xu wrote in a research note. “For China to massively reduce its trade surplus with the U.S., it has to in some way substitute its imports away from the EU to the U.S., which would have a significant negative impact on the EU producers.”

US Celebrates Independence Day

The United States is celebrating its Independence Day on Wednesday.

Americans will mark the 242nd anniversary of the split from Britain with the customary day full of picnics, parades and fireworks displays across the country.

U.S. President Donald Trump and his wife, Melania, are hosting a picnic for military families at the White House.

The July 4th holiday includes a traditional reading of the Declaration of Independence on the steps of the National Archives in Washington. Inside the building, the original document is prominently displayed along with the Constitution and the Bill of Rights for the public to see.

Shortly after the reading, a parade attended by thousands of people begins in front of the building on Constitution Avenue and stretches 10 blocks to the west, ending just after passing between the White House and a monument to the first U.S. president, George Washington.

Washington D.C. will also feature a concert at the U.S. Capitol with performances from The Beach Boys, Chita Rivera, Andy Grammer, The Temptations, CeCe Winans and the National Symphony Orchestra, among others.

The celebration wraps up with a huge fireworks show after sunset.