China’s been trying to ‘Trump-proof’ its economy amid his tariff threats, experts say
Chris Unger/Zuffa LLC via Getty Images
(WASHINGTON) — Key U.S. trading partners are better equipped now to deal with President-elect Donald Trump’s tariff threats than they were during his first administration, according to experts.
China has spent the last several years trying to “Trump-proof” its economy, reducing its reliance on U.S. trade. Exports from China to the U.S. fell 20% to $427 billion in 2023.
“China’s been trying to Trump-proof its economy for the last few years,” said Neil Thomas, a fellow for Chinese politics at the Asia Society Policy Institute’s Center for China Analysis. “We know from Trump’s first term that tariff threats are often used as an opening salvo for diplomatic negotiations, so I expect there’s going to be a lot of behind-the-scenes diplomacy.”
Trump on Monday announced he plans to impose a 10% additional tariff on Chinese imports, as well as 25% tariff on products coming from Canada and Mexico.
American markets, so far, are mostly shrugging off Trump’s latest tariff threat with stock indexes mixed.
But the Canadian dollar and Mexican peso fell against the U.S. dollar and socks of global carmakers also fell — suggesting investors are waiting to see if Trump makes good on his proposals.
China has shifted and diversified exports to other regions, including Europe and Latin America. It has also increased investments in manufacturing in Southeast Asia, Europe, and Latin America, according to Scott Kennedy, Chinese business and economics specialist at the Center for Strategic and International Studies in Washington.
The bigger concern for China is Trump’s campaign vow to slap 60% tariffs on Chinese imports. That tariff threat could still come.
Trump’s latest reason for imposing tariffs on China is the flow of fentanyl into the United States.
Beijing’s Ministry of Foreign Affairs pushed back on Trump’s claim that China hasn’t done enough to stop the flow of illicit drugs.
“China is willing to continue to carry out anti-drug cooperation with the United States on the basis of equality, mutual benefit and mutual respect,” it said. “The United States should cherish China’s goodwill and maintain the hard-won good situation of Sino-US anti-drug cooperation.”
Cooperation on fentanyl is one of the big wins from President Joe Biden’s diplomacy with Chinese leader Xi Jinping. According to one senior administration official, China has been “helpful” on curbing the flow of precursor chemicals and they’ve been abiding by their commitments.
“Trump wants to take credit for that win [on fentanyl cooperation], and he wants to get even more out of Beijing than Biden to show that his approach to diplomacy is superior,” Thomas said.
Thomas said given the fact that China is still struggling to revive its economy post-pandemic, it’s possible China could take further steps on fentanyl and impose the death penalty on a few major exporters.
Experts say Beijing will likely try to use Elon Musk and other American businesses with operations in China to try to persuade the Trump administration to moderate his policies on China.
In retaliation to the tariffs, Beijing could also revoke some of the preferential treatment that it gives Tesla.
(WASHINGTON) — The Supreme Court on Monday was divided over whether the Food and Drug Administration had unlawfully rejected millions of flavored e-cigarettes for approved sale in U.S. over concerns about nicotine addiction among young people.
During oral arguments in a case that could have a significant impact on public health, the justices grappled with tobacco industry claims that the government had given unclear and shifting requirements for new product applications and failed to provide proper notice to the companies.
“FDA switched its position on what studies were required” to show that the products have benefits to existing smokers that offset risks to youth, argued Eric Heyer, the attorney representing vape manufacturers Triton Distribution and Vapetasia, which are seeking a green light to market e-liquids such as “Jimmy the Juice Man Peachy Strawberry” and “Iced Pineapple Express.”
Federal law requires sellers of new nicotine products to provide regulators with scientific evidence to show that the products would promote public health, but the statute does not spell out specifically what evidence is necessary and sufficient. The FDA’s guidance on how to meet that requirement is at the center of the case.
“Their argument is that the guidance were actually a moving target, that either they weren’t clear or you changed the guidance as time went on,” said Justice Clarence Thomas, who appeared sympathetic to vape manufacturers.
“That is their argument,” replied Biden administration lawyer Curtis Gannon, representing the FDA, adding, “But I think that the key point is that they knew from the statute that they needed to be making this comparison about what the benefits were with respect to existing smokers and weighing that against the potential costs with respect to nonsmokers and attracting youth.”
Justice Neil Gorusch suggested that the companies might not have been given “fair notice” of how they could comply with the law. “Wouldn’t due process require an opportunity for notice and a hearing?” he asked Gannon.
E-cigarettes and vapes, which deliver nicotine without some of the harmful effects of smoking, have been booming in popularity. Kid-friendly flavors, such as fruit, candy, mint, menthol and desserts, are not approved by the FDA and are on the market illegally.
While vaping among youth is declining, more than 1.6 million children use the products, according to the Centers for Disease Control and Prevention. Nearly 90% of them consume illicit flavored brands.
Manufacturers have acknowledged that their products may appeal to youth but insist that a “growing body of scientific evidence” shows that “flavors are crucial to getting adult smokers to make the switch and stay away from combustible cigarettes.”
A federal appeals court sided with the companies last year, saying the agency had acted arbitrarily. If the Supreme Court upholds that ruling, it could clear the way for broader marketing and sale of flavored nicotine products.
The Court’s three liberal justices all seemed to share the government’s view that FDA did not illegally move the goal posts during the process and that the companies simply lacked the evidence to win approval.
Since 2009, when Congress passed legislation aimed at curbing tobacco use among young people, the government has almost universally denied tobacco company requests to sell flavored nicotine e-liquids, citing risks of addiction among minors.
The FDA said the two companies in this case provided insufficient evidence that the benefits of their flavored e-products in helping tobacco smokers quit exceed the dangers of hooking children.
“I’m so totally confused,” Justice Sonia Sotomayor told Heyer. “What [FDA] said is what you provided wasn’t sufficient.”
Justice Ketanji Brown Jackson said she was “baffled” by Heyer’s argument because the FDA had explicitly articulated its standard.
“I guess I’m not really seeing what the surprise is here, or what the change is here,” said Justice Elena Kagan. “There’s just not a lot of mystery here about what FDA was doing. You might disagree with that, because you think that, in fact, the world of 40-year-olds really wants to do blueberry vaping, but you can’t say that FDA hasn’t told you all about what it’s thinking in this respect.”
Justice Brett Kavanaugh, who could be a critical vote in the case, signaled sympathy to the industry’s complaint about discretionary government regulation but suggested he wasn’t convinced FDA had acted unreasonably.
“If the agency says [your claims of benefits to adult smokers] that doesn’t outweigh the harm to youth, we’ve reviewed everything, we’re aware of everything, of course they’re aware of everything that’s out there, that’s kind of the end of it, isn’t it?” Kavanaugh asked.
Even if they lose the case, several justices noted, the vape manufacturers could reapply for approval with the FDA in a new application.
While the first Trump administration had taken a hard line against the marketing and sale of sweet and candy-flavored vapes, president-elect Donald Trump said during the campaign that he wants to “save” flavored vapes.
“We don’t know exactly what that’s going to look like,” said Heyer. But, he added, that his clients “can’t afford to wait that out.”
Nearly a quarter of high school students who use e-cigarettes consume illicit menthol-flavored varieties, according to the 2023 National Youth Tobacco Survey.
Josie Shapiro, the 2024 national youth ambassador for the Campaign for Tobacco-Free Kids who testified before Congress on the dangers of nicotine addiction, said illicit flavored vapes hooked her at age 14.
“I think that by marketing any sort of flavored product as bubble gum or any of the genres of candy, it’s going to catch the eyes of children,” Shapiro said. “I’m still addicted, and I’m still trying to fight my addiction. Honestly, the FDA needs to regulate all flavored tobaccos to flavor ‘tobacco’ products and get them off the market.”
Public health experts have credited the FDA’s restrictions on flavored nicotine products with helping to drive down the number of teenagers who vape gradually from an “epidemic” level just five years ago.
The case, Food and Drug Administration v. Wages and White Lion Investments, LLC, will be decided before the end of the Supreme Court’s term in June 2025.
(Washington, D.C.) — With less than a week before the 2024 presidential election, the infrastructure has “never been more secure,” according to the head of the federal agency tasked with America’s cyber defense.
Jen Easterly, the director of the Cybersecurity and Infrastructure Security Agency (CISA), told ABC News’ Chief Justice Correspondent Pierre Thomas that she has “incredible confidence” in the security of the election.
“I understand why some Americans have questions, because they’ve been subjected for years to a fire hose of disinformation, and it has undermined confidence in the election systems and in our democratic institutions, but I have spent so much time on the ground over the past three plus years with state and local election officials who are on the front lines of running and managing and defending election infrastructure, and I can tell you, I have incredible confidence that our election infrastructure has never been more secure,” Easterly said during an interview at CISA headquarters.
“Election officials have never been better prepared to deliver safe and secure and free and fair elections for the people,” she said.
For example, she said that 97% of registered voters will cast a ballot in jurisdictions where they’ll get a paper record that they themselves can verify, which is “incredibly important,” she said.
Voting machines are not connected to the internet and that is a “great source of protection.”
That disinformation is being amplified by foreign adversaries, according to Easterly, who pointed to various examples of disinformation already being debunked — such as a fake video of ballots being destroyed in Bucks County, Pennsylvania.
She said foreign adversaries have two goals: to undermine American confidence in the election and sow discord in the country.
“Within a day, the federal government used our tools, our forensic analysis, to affirm that it was a fake video, that it was a Russian manufactured video,” she said. “So at the end of the day, we are going to lean very far forward when we see inaccurate information that could undermine Americans trust in elections.”
CISA is also responsible for advising election officials on the physical security of their election.
“As a retired Army officer, as a combat veteran who has been in very dangerous places where we’ve had flak jackets and, you know, we’ve been behind layers of security, it is disconcerting to me, as an American, to see election offices with bulletproof glass and panic buttons and barbed wire fences,” Easterly said. “That’s not the way it should be in America, and we know that these threats, harassment, bullying, swatting, threats of violence to election officials and their families, election officials of both parties largely stemming from unfounded claims that the 2020 election was rigged.”
She said election workers are not “faceless bureaucrats,” but rather friends and neighbors.
“They’re not doing it for pay or for glory. They’re doing it because they believe in our democracy, and they deserve respect, they deserve gratitude, and they deserve to be safe,” she said,
The director said recent incidents such as the ballot boxes being set on fire in Oregon and Washington and the denial of service attack against the Georgia Secretary of State’s office are expected to happen but voters should be assured there is no impact on their elections.
“What Americans should understand is these incidents will not impact the security or integrity of votes being cast or those votes being counted as cast. And election officials have trained for this, they’ve exercised for it, they’ve prepared for this – all manner of scenarios, whether it’s ballots that need to be replaced or cyber security threats that need to be dealt with, or for criminal activity like fraudulent registrations that need to be investigated And the perpetrators held criminally accountable. Election officials are prepared for this. They’re ready for this to meet this moment.”
(GEORGIA) — Gabriel Sterling, the Chief Operations Officer of Georgia’s office of Secretary of State, noted in a statement on X that early votes cast Wednesday set a record for a second day.
“So, with the rest of today and absentees we could get close to 600,000 votes cast in Georgia. We continue on the record-setting pace and we are thankful for our election workers at the counties and our voters,” he said.
On the previous day, 312,206 people cast an early vote, shattering the 136,000 votes cast in the first day of early voting in 2002, according to state election data.
Sterling said earlier in the day that the 500,000 votes cast mark represented 10% of the turnout in the 2020 election.
As of Wednesday night, 33,359 absentee ballots have been returned and 33,150 of those ballots were accepted, according to the secretary of state’s office.
Georgia is seen as a crucial swing state for the presidential race, with both former President Donald Trump and Vice President Kamala Harris have been actively campaigning throughout neighborhoods in the state.
Voting rights advocates have been pushing voters to choose the early voting option due to concerns about new rules including one that makes it harder to cast a provisional ballot on Election Day if a voter is sent to the wrong polling place. Georgia voters can choose any early voting election site in their county, according to state law.
Early voting in Georgia will continue until Nov. 1.
