Tariff plan would hurt both the US and Mexico, Sheinbaum tells Trump

 Tariff plan would hurt both the US and Mexico, Sheinbaum tells Trump
Mexican President Claudia Sheinbaum speaks after reading a letter to be sent to US President-elect Donald Trump at National Palace in Mexico City on Nov. 26, 2024. (Presidencia de Mexico/Handout via REUTERS)
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Updated 28 November 2024
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Tariff plan would hurt both the US and Mexico, Sheinbaum tells Trump

 Tariff plan would hurt both the US and Mexico, Sheinbaum tells Trump
  • Mexico says Trump tariffs would kill 400,000 US jobs and drive up prices for US consumers
  • Sheinbaum also warned that Mexico would retaliate if Trump makes good his tariff plan

MEXICO CITY: Mexico’s president discussed migration and drug trafficking with US President-elect Donald Trump on Wednesday — two issues he had raised as justification for raising import tariffs on America’s southern neighbor.
Claudia Sheinbaum said she had had “an excellent conversation” with Trump, just hours after her economy minister warned that the cost to US companies of Trump’s tariffs would be “huge.”
“We discussed Mexico’s strategy regarding the phenomenon of migration,” Sheinbaum said on X, adding she had told Trump that caravans of migrants “are not arriving at the northern border because they are being attended to in Mexico.”

Earlier on Wednesday, Sheinbaum said  Mexico would retaliate if US President-elect Donald Trump followed through with his proposed 25 percent across-the-board tariff, a move her government warned could kill 400,000 US jobs and drive up prices for US consumers.
“If there are US tariffs, Mexico would also raise tariffs,” Sheinbaum said during a press conference, in her clearest statement yet that the country was preparing possible retaliatory trade measures against its top trade partner.

Mexican Economy Minister Marcelo Ebrard, speaking alongside Sheinbaum, called for more regional cooperation and integration instead of a war of retaliatory import taxes.
“It’s a shot in the foot,” Ebrard said of Trump’s proposed tariffs, which appear to violate the USMCA trade deal between Mexico, Canada and the US.

Discussion with Trump

In her talks with Trump later, she said they discussed “strengthening collaboration on security issues” as well as “the campaign we are conducting in the country to prevent the consumption of fentanyl.”
Trump on Monday said he would impose tariffs of 25 percent on Mexican and Canadian imports and 10 percent on goods from China.
“This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!” Trump wrote on his Truth Social page.
The Republican, who won an election in which illegal migration was a top issue, has vowed to declare a national emergency on border security and use the US military to carry out a mass deportation of undocumented migrants.
Mexican Economy Minister Marcelo Ebrard said Wednesday some “400,000 jobs will be lost” in the United States if Trump followed through on his threat. He cited a study based on figures from US carmakers that manufacture in Mexico.

Tariff impact

Ebrard said the tariffs would also hit US consumers hard, citing the US market for pickup trucks — most of which are manufactured in Mexico. The tariffs, the minister said, would add $3,000 to the cost of a new vehicle.
“The impact of this measure will chiefly be felt by consumers in the United States... That is why we say that it would be a shot in the foot,” Ebrard told reporters, speaking alongside Sheinbaum at her regular morning conference.

The proposed tariffs would hit the automotive sector’s top cross-border exporters especially hard, Ebrard added, namely Ford, General Motors and Stellantis.
Ebrard noted that 88 percent of pickup trucks sold in the US are made in Mexico and would see a price increase. These vehicles are popular in rural areas that overwhelmingly voted for Trump.
Mexico and China have been particularly vociferous in their opposition to Trump’s threats of a trade war from day one of his second presidential term, which begins on January 20.
Sheinbaum has declared the threats “unacceptable” and pointed out that Mexico’s drug cartels exist mainly to serve drug use in the United States.
China has warned that “no one will win a trade war.”
During his first term as president, Trump launched full-blown trade hostilities with Beijing, imposing significant tariffs on hundreds of billions of dollars of Chinese goods.
China responded with retaliatory tariffs on American products, particularly affecting US farmers.
The United States, Mexico and Canada are tied to a three-decade-old largely duty-free trade agreement, called the USMCA, that was renegotiated under Trump after he complained that US businesses, especially automakers, were losing out.

Many analysts regard Trump’s tariff threats as more of a negotiating tactic than trade policy.
“The lack of a clear link between this threat and questions related to trade suggests the new president plans to use tariffs as a negotiating strategy to achieve goals largely unrelated to trade,” said David Kohl, chief economist at Julius Baer.

Profit wiped out
Mexico’s automotive industry is the country’s most important manufacturing sector, exporting predominantly to the United States. It represents nearly 25 percent of all North American vehicle production.
Analysts at Barclays said they estimate the proposed tariffs “could wipe out effectively all profits” from the Detroit Three automakers.
“While it’s generally understood that a blanket 25 percent tariff on any vehicles or content from Mexico or Canada could be disruptive, investors under-appreciate how disruptive this could be,” they wrote in a note on Tuesday.
Brian Hughes, a spokesperson for Trump’s transition team, said the tariffs would protect US manufacturers and workers from “unfair practices of foreign companies and foreign markets.”
Hughes said Trump would implement policies to make life affordable and more prosperous for his country.
GM and Stellantis declined to comment. Ford did not comment on how the threatened tariffs would affect its business but said it manufactures more vehicles in the United States than most major automakers.
Mexico’s automotive industry group AMIA said it would prepare for any possibility and wait to see what formal actions are taken.
The Institute of International Finance, a trade group for the global financial services industry, warned Mexico-US relations would be challenging going forward.
“The imposition of tariffs, eventually leading to increased protectionism, and other policies affecting exchange rates and commodity prices could have significant implications for the region,” it said in a note.
The USMCA is up for review in 2026.
Katia Goya, director of international economics at Grupo Financiero Banorte, said it was likely the three USMCA countries would seek wholesale renegotiation of the pact rather than just rubber-stamp it to continue in its current form.
“The effect of a trade-conflict situation is that it will mean lower economic growth in the United States, higher unemployment and higher inflation,” Goya said.
Ebrard said USMCA trade amounted to $1.78 trillion in the first nine months of this year.
“We can fragment and divide with tariffs,” Ebrard said. “Mexico does not want conflicts and divisions, but to build a stronger region.”


Taliban delegation visits Japan in rare trip outside region

Updated 9 sec ago
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Taliban delegation visits Japan in rare trip outside region

Taliban delegation visits Japan in rare trip outside region
  • The Taliban government makes regular visits to neighboring and regional countries
KABUL: A Taliban government delegation was visiting Japan for the first time on Monday, in a rare diplomatic visit outside of the region.
The Afghan delegation left Kabul on Saturday, in a visit that local media said would last one week and included officials from the higher education, foreign affairs, and economy ministries.
“We seek dignified interaction with the world for a strong, united, advanced, prosperous, developed Afghanistan and to be an active member of the international community,” Latif Nazari, a deputy minister at the ministry of economy who is part of the delegation, tweeted on Saturday.
The Taliban government makes regular visits to neighboring and regional countries, including in Central Asia, Russia and China.
However, it has only officially visited Europe for diplomacy summits in Norway in 2022 and 2023.
Japan’s embassy in Kabul temporarily relocated to Qatar after the fall of the previous foreign-backed government and the takeover by the Taliban in 2021.
However, it has since reopened and resumed diplomatic and humanitarian activities in the country.

North Korea’s Kim makes rare visit to father’s tomb, says devoted to ‘sacred struggle’

North Korea’s Kim makes rare visit to father’s tomb, says devoted to ‘sacred struggle’
Updated 12 min 25 sec ago
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North Korea’s Kim makes rare visit to father’s tomb, says devoted to ‘sacred struggle’

North Korea’s Kim makes rare visit to father’s tomb, says devoted to ‘sacred struggle’
  • Kim Jong Il’s birthday, which falls on February 16, is widely celebrated as a major holiday in North Korea
  • The Kim dynasty that has ruled North Korea since its founding after World War Two

SEOUL: North Korean leader Kim Jong Un has paid his respect at a family mausoleum to mark the birthday of his late father and former leader Kim Jong Il, state media KCNA said on Monday, pledging to continue the “sacred struggle” for prosperity and security.
Kim Jong Il’s birthday, which falls on February 16, is widely celebrated as a major holiday in North Korea, called the Day of the Shining Star.
But it was the first time in four years that the young Kim visited the Kumsusan Palace of Sun in the capital Pyongyang, which houses the embalmed bodies of his father and grandfather, for the anniversary.
Accompanied by Kim Yo Jong, his sister and a senior ruling Workers’ Party official, among other aides, Kim Jong Un paid homage “in the humblest reverence,” KCNA said.
“He expressed his solemn will to devote himself to the sacred struggle for the eternal prosperity of the country, the security of the people and the promotion of their well-being,” it said.
The Kim dynasty that has ruled North Korea since its founding after World War Two and has sought to strengthen their grip on power by building cults of personality around them, though Kim Jong Un has shown signs of increasingly trying to stand more on his own feet without relying on his predecessors.
In another dispatch, KCNA said Kim attended a groundbreaking ceremony on Sunday for the final phase of his pet project to build 50,000 new homes in Pyongyang.
The ambitious initiative was launched in 2021 as part of Kim’s five-year plan to boost the economy, and designed to distribute at least 10,000 new apartments in Pyongyang each year, though some analysts have questioned its feasibility amid international sanctions and economic woes.
Photos and a video released by KCNA showed Kim receiving thunderous applause from thousands of people many wearing protective helmets attending the ceremony, against a backdrop showing images of modern apartments and high-rises.
Koo Byoung-sam, a spokesperson for South Korea’s unification ministry handling inter-Korean affairs, said North Korea appears to be focusing on producing tangible outcomes by mobilizing manpower and material where they can relatively easily make progress, such as housing construction.
During the ceremony, Kim lauded construction workers and officials for achieving nearly 400 percent progress last year compared to 2020, and pledged another plan to continue expanding the city.
The project would “usher in a new era of prosperity of Pyongyang in which the ideal streets of the people to be proud of in the world are built every year,” KCNA said.


Trump attends the Daytona 500 and says the spirit of NASCAR will ‘fuel America’s Golden Age’

Trump attends the Daytona 500 and says the spirit of NASCAR will ‘fuel America’s Golden Age’
Updated 17 February 2025
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Trump attends the Daytona 500 and says the spirit of NASCAR will ‘fuel America’s Golden Age’

Trump attends the Daytona 500 and says the spirit of NASCAR will ‘fuel America’s Golden Age’
  • “Daytona 500 is a timeless tribute to the speed, strength and unyielding spirit that make America great,” Trump said in a message on Sunday
  • During his Jan. 20 inaugural address, Trump said that “the golden age of America begins right now”

WEST PALM BEACH, Florida: Donald Trump, attending Sunday’s Daytona 500, for the second time as president, called the opening event of the NASCAR series a unifying event that possesses a spirit that will “fuel America’s Golden Age” — which he has said would happen under his leadership.
In a presidential message released as he flew to Daytona Beach, Florida, Trump said the Daytona 500 brings together people from all walks of life in a “shared passion for speed, adrenaline and the thrill of the race.”
“From the roar of the engines on the track to the echo of ‘The Star-Spangled Banner’ soaring through the stands, the Daytona 500 is a timeless tribute to the speed, strength and unyielding spirit that make America great,” Trump said. “That spirit is what will fuel America’s Golden Age, and if we harness it, the future is truly ours.”
Trump said in his Jan. 20 inaugural address that “the golden age of America begins right now.”
Air Force One buzzed the Daytona International Speedway before it landed. Trump traveled from West Palm Beach, Florida, airport with several guests, including his son Eric, his wife, grandson Luke, Transportation Secretary Sean Duffy and Interior Secretary Doug Burgum and his wife, Kathryn, the White House said. Several members of Congress are traveled with Trump.
His motorcade arrived at the speedway by driving onto a portion of the track. Trump’s limousine later led drivers on two ceremonial laps and he went on the radio to urge them to have fun and be safe.
“This is your favorite president. I’m a big fan. I am a really big fan of you people. How you do this I don’t know, but I just want you to be safe,” Trump said. “You’re talented people and you’re great people and great Americans. Have a good day, have a lot of fun and I’ll see you later.”
Trump was at the race in 2020 while running for a second term. He was given the honor of being grand marshal of NASCAR’s biggest and most prestigious event of the year and delivered the command for drivers to start their engines. Air Force One did a flyover and his limousine drove on the speedway back then, too.
Sunday’s race got underway in front of a sold-out crowd but was halted about an hour later after eight laps because of heavy rain that was expected to cause a lengthy delay. The sport’s fans are seen as leaning conservative and many in the stands on Sunday wore red caps that said “MAGA” for Trump’s “Make America Great Again” slogan. Trump, who watched the race from a suite, also wore a MAGA cap.
Trump, a sports fan, left the race during the rain delay but slightly ahead of when he was scheduled to depart. He is an avid golfer and attends college football games and UFC matches.
Last weekend, the Republican made history as the first sitting president to attend the Super Bowl.


In Ukraine, a potential arms-for-minerals deal inspires hope and skepticism

In Ukraine, a potential arms-for-minerals deal inspires hope and skepticism
Updated 17 February 2025
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In Ukraine, a potential arms-for-minerals deal inspires hope and skepticism

In Ukraine, a potential arms-for-minerals deal inspires hope and skepticism
  • Ukraine has vast reserves of ilmenite — a key element used to produce titanium — along the country’s embattled east
  • Much of it, as with all of Ukraine’s critical minerals industry, is underdeveloped because of war as well as onerous state policies

KIROVOHRAD REGION, Ukraine: The mineral ilmenite is extracted from mounds of sand deep in the earth and refined using a method that summons the force of gravity, resulting in a substance that glimmers like a moonlit sky.
Ukraine boasts vast reserves of ilmenite — a key element used to produce titanium — in the heavy mineral sands that stretch for miles along the country’s embattled east.
Much of it, as with all of Ukraine’s critical minerals industry, is underdeveloped because of war as well as onerous state policies.
That is poised to change if US President Donald Trump’s administration agrees to a deal with Ukraine to exchange critical minerals for continued American military aid.
In the central region of Kirovohrad, the ilmenite open-pit mine is a canyon of precious deposits that its owner is keen to develop with US companies. But many unknowns stand in the way of turning these riches into profit: cost, licensing terms and whether such a deal will be underpinned by security guarantees.
Ukrainian President Volodymyr Zelensky said Saturday at the Munich Security Conference that he did not permit his ministers to sign a mineral resource agreement with the US because the current version is not “ready to protect us, our interests.”
Ukrainian businessmen with knowledge of the minerals industry also privately expressed skepticism about whether a deal is viable. The capital-intensive industry is unlikely to yield results in years, if not decades, as geological data is either limited or classified. Many question what conditions American companies are willing to risk to build up the industry and whether existing Ukrainian policies that have so far deterred local businessmen will accommodate foreign investors.
“The main thing we can gain is certain security guarantees obtained through economic means, so that someone stronger than us has an interest in protecting us,” said Andriy Brodsky, CEO of Velta, a leading titanium mining company in Ukraine.
The question of security guarantees
A deal, which would essentially barter one resource for another, could help strengthen Kyiv’s relationship with the Trump administration.
The United States is a major consumer of critical raw earth minerals such as lithium and gallium, two elements that Ukraine has in proven reserves. Trump has specifically mentioned rare earth elements, but these are not well researched, industry experts told The Associated Press.
Titanium, used in aerospace, defense and industry, is also high in demand and the US is a leading importer of ilmenite. Sourcing the minerals from Ukraine would reduce future reliance on Russia and China.
In exchange, Kyiv would continue to receive a steady stream of American weaponry that offers leverage against Moscow and without which Ukraine cannot ward off future Russian aggression in the event of a ceasefire.
The question of security guarantees is a sticking point for companies, Ukrainian businessmen and analysts said. A senior Ukrainian official, speaking anonymously to describe private conversations, told the AP that US companies expressed interest in investing but needed to ensure their billions will be safeguarded in the event of renewed conflict. But once invested in Ukraine, the presence of American business interests alone might act as a guarantee, Brodsky said.
“If this process starts, it will continue,” Brodsky said. “Once the investment figures exceed hundreds of billions, the Americans, a highly pragmatic people, will protect their profits earned on Ukrainian soil. They will defend their interests against Russia, China, Korea, Iran and anyone else. They will protect what they consider theirs.”
Growing American interest
Brodsky, who just returned from a trip to Washington and New York, said the conversation among US businesses is changing in Kyiv’s favor.
“A lot of people in very serious and wealthy offices are saying that now, we — our country and my company — are in the right place and doing exactly what needs to be done at this moment,” he said.
Velta has worked with American partners for many years. Brodsky has begun negotiating with companies he believes could be a partner in the event of a deal.
Ukraine has never been attractive to foreign investors because of prohibitive government policies — not offering incentives to attract foreigners, for instance. Brodsky believes that international companies will need to pair up with local partners to flourish.
American companies have several ways to enter the market, explained Ksenia Orynchak, director of the National Association of Extractive Industries of Ukraine, but would require traversing “certain circles of hell” in Ukraine’s bureaucracy. Teaming up with an existing Ukrainian license owner is possibly the most straightforward.
She said more exploration is needed in the field and hinted existing data may have been acquired through ulterior motives. Under the Soviet system, geologists stood to gain if they claimed to have found large reserves.
“Someone did it so that Moscow would praise Ukrainian geologists or Soviet geologists,” she said.
She advises American investors to lower existing thresholds for exploration because bidding can take place in areas where reserves are only presumed, not proven.
“I believe, and so does the expert community, that this is not right. In fact, we are selling a pig in a poke,” she said.
A historically untapped sector
At the extraction site, the air is dense with ilmenite dust. When the afternoon sun’s rays pierce the darkened space, they sparkle and dance in the air. The soot covers the faces of workers who spend hours inside every day extracting the precious material from sand.
The gravity separation method removes unwanted elements in the ore and water separated from the mineral rains down through metal-lined floors. Workers are used to getting wet and don’t bat an eye. Titanium is developed from the purified ilmenite at a different facility.
Velta began in the form of an expired license for geological exploration and a business plan for $7 million when Brodsky acquired the company. It would be eight years and many millions more invested before he could even think about production capacity.
The deal also does not factor in a crucial element that could prove challenging later: The position of Ukrainian people themselves. According to the Constitution, the subsoil where extraction would take place belongs to Ukraine.
“I am very afraid that they (Ukrainian people) already had disapproving reviews, that everything is being given away. Who allowed him? He had no right? And so on,” Orynchak said.
Those sensitivities were echoed among workers at the Velta mine. Speaking anonymously to voice his true thoughts, one said: “If you have a vegetable garden in your home, do you invite a foreigner to take it?”
The high risk often is a key reason that some Ukrainian businessmen privately express skepticism about the deal.
When one businessman of a major group of companies heard about the arms-for-minerals deal, his first impression was: “This is just hot air,” he said, speaking on condition of anonymity to speak freely about his thoughts. “This is a very capital intensive industry. Just to take ground from an open pit will cost you billions. Not millions, billions.”


Canadian warship in Taiwan Strait ‘undermines peace’, says China

Canadian warship in Taiwan Strait ‘undermines peace’, says China
Updated 17 February 2025
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Canadian warship in Taiwan Strait ‘undermines peace’, says China

Canadian warship in Taiwan Strait ‘undermines peace’, says China
  • The US and its allies regularly pass through the 180-km strait to reinforce its status as an international waterway, angering China
  • Beijing views aiwan as a renegade province and claims jurisdiction over the body of water that separates the island from the Chinese mainland

BEIJING: A Canadian warship passing through the Taiwan Strait “undermines peace” in the sensitive waterway, China’s military said Monday.
Beijing views self-ruled Taiwan as a renegade province and claims jurisdiction over the body of water that separates the island from the Chinese mainland.
The Canadian vessel passed through the strait on Sunday and was the first to do so this year, Taiwan’s foreign ministry said, coming days after two US ships made the passage.
Canada’s actions “deliberately stir up trouble and undermine peace and stability across the Taiwan Strait,” Li Xi, a spokesperson for the Eastern Theater Command of the Chinese People’s Liberation Army (PLA), said in a statement.

The army had dispatched its naval and air forces to monitor and guard the passage of the ship, Li said, adding that the troops will “resolutely counter all threats and provocations.”
The United States and its allies regularly pass through the 180-kilometer (112-mile) strait to reinforce its status as an international waterway, angering China.
A US destroyer and an ocean survey ship traveled through the strait starting on February 10, drawing criticism from China’s military, which said it sent the “wrong signal and increased security risks.”
Washington’s latest passage through the strait was the first since US President Donald Trump took office in January.
Taiwan’s defense ministry, meanwhile, said it recorded 41 Chinese aircraft and nine warships near the island in the 24 hours to 6:00 am on Monday.
Beijing has never ruled Taiwan, but it claims the democratic island as part of its territory and has threatened to bring it under its control by force.