Trump signs order to determine reciprocal tariffs on US trading partners
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(WASHINGTON) — President Donald Trump on Thursday signed an executive order calling on his administration to determine “the equivalent of a reciprocal tariff with respect to each foreign trading partner.”
“In other words, we’re going to customize the reciprocal tariff based on individual trading nations, and that will depend on their profile,” a senior administration official said on a call with reporters previewing the action.
This means the administration plans to impose tariffs on other countries that match the duties they impose on American products. The senior official says this allows the U.S. to “customize” the tariff to each trading partner based on their actions.
Trump previously announced tariffs on China, Mexico and Canada. While the 10% tariffs on China have been imposed, Trump paused the 25% tariffs on Canada and Mexico. Trump has also announced 25% tariffs on steel and aluminum that are expected to take effect next month.
Many economists warn tariffs will likely raise the prices of goods for consumers, worsening inflation that already rose faster than expected in January.
As for reciprocal tariffs, the administration official outlined five types of actions it will take into account in determining the reciprocal tariffs for trading partners.
They include tariffs imposed on U.S. products; unfair, discriminatory or extraterritorial taxes imposed by trading partners, including a Value Added Tax; cost to United States businesses, workers and consumers, including subsidies and burdens and regulatory requirements; exchange rates; as well as any other practice that USTR determines is an unfair limitation.
Key players in this action will include the commerce secretary and United States Trade Representative, in consultation with the treasury secretary and Homeland Security secretary. Trump has nominated Cantor Fitzgerald CEO Howard Lutnick to lead the Commerce Department and attorney Jamieson Greer to be the U.S. Trade Representative.
Officials stressed the benefit of addressing this on a case-by-case basis, saying it “it opens the door for each country to basically correct the unfair trade practices that they’re engaging in.” But they did not rule out also pursuing a flat, global tariff either given the “national emergence we have with respect to the trade deficit.”
Asked for a timeline for when these tariffs might be implemented, the administration official seemed to suggest it would happen on a rolling basis, starting first with countries that have the highest deficits with the US.
“I think this will be done in what I have called in the past, in Trump time, which is to say, very rapidly, should be a matter of weeks, in a few months, but not much longer than that. We move quickly here,” the official said.
The reciprocal tariffs could hit developing countries the hardest — including India, Brazil and Southeast Asian countries.
There are many outstanding questions about the implementation of such tariffs.
One question is how Trump may continue to use these tariffs as a starting point for negotiations with world leaders. Officials said they hoped that the move would spark discussions between nations, saying the president would be willing to bring down tariffs if other countries do as well.
(LOS ANGELES) — Much-anticipated rain could be headed to drought-stricken Southern California this weekend — but rainfall also brings the threat of landslides in the wake of Los Angeles County’s devastating fires.
Rain and mountain snow are expected in Southern California on Saturday and Sunday.
Rainfall rates are expected to be light, up to 1 inch over the course of the weekend.
But thunderstorms are possible; lightning could spark new fires and the thunderstorms would cause heavier rainfall.
Heavy rain over the vulnerable wildfire burn scars would be extremely dangerous because it could lead to landslides.
The extreme burn scars are the result of the Palisades and Eaton fires, which erupted on Jan. 7. The wildfires ripped across the LA communities of Pacific Palisades and Altadena, destroying neighborhoods, claiming more than two dozen lives and forcing more than 100,000 people to evacuate.
“We’ve never seen a burn scar in an urban area of this scope and magnitude,” LA City Council member Traci Park said Tuesday.
“I normally pray for rain. God knows, we generally need it,” Park said during a news conference. “But right now, let me point out the obvious: The burn scar of the Palisades Fire not only sits feet from the ocean itself, but already on hillsides that are already prone to slide, and which have already absorbed a tremendous amount of water from firefighting, broken pipes and melted pools.”
“Adding water to this mess and saturated, unstable hillsides is the last thing we need,” she continued. “But we already know at some point, it’s going to happen. And let me remind folks burn scars don’t absorb water at a normal rate. They simply add to the risk of floods, landslides and debris flow.”
LA Mayor Karen Bass issued an executive order on Tuesday to shore up the burn areas ahead of the rain.
“This is to prevent additional damage to areas already ravished by fire, and also to protect our watershed, beaches and ocean from toxic runoff,” Bass said during the news conference. “The action plan I have directed our city Public Works bureaus to implement includes the installation of barriers, debris removal and diverting runoff from our stormwater system and into our sewer system where it can be treated.”
California Gov. Gavin Newsom announced Wednesday that he’s deploying specialized debris flow teams to Southern California ahead of the rain.
Among the state resources will be more than 400 California Conservation Corps members who’ll “be working on watershed protection at firestorm burn scar areas to place silt fencing, straw wattles, and compost socks to act as physical barriers to filter contaminants found in rainwater runoff,” the governor’s office said. “More Corpsmembers will be trained to augment capacity in the coming days.”
More than 80 California National Guard service members are also headed to the scene “with 2 dozers, 1 excavator, 1 loader, 4 dump trucks and other engineering assets to haul 527,000 cubic yards of materials in local debris basins,” the governor’s office said.
(WASHINGTON) — The U.S. Supreme Court temporarily delayed a court-mandated deadline requiring the Trump administration to pay nearly $2 billion to contracted aid organizations for work they already completed.
Chief Justice John Roberts, in an order Wednesday night, stayed a lower court order that the administration pay out $1.9 billion by midnight. In his order, Roberts asked the aid groups that sued the Trump administration to provide a response by noon Friday after which the court will decide its next steps.
Roberts’ order came after the Trump administration sought emergency intervention by the high court after a panel of federal appeals court judges denied the administration’s earlier request to push the deadline.
Acting Solicitor General Sarah Harris asked the justices to impose an administrative stay — freezing the status quo for a short time.
“What the government cannot do is pay arbitrarily determined demands on an arbitrary timeline of the district court’s choosing or according to extra-contractual rules that the court has devised,” Harris wrote in the emergency request, saying the deadline created “an untenable payment plan” at odds with the president’s obligations.
“The order appears to contemplate the immediate outlay of nearly $2 billion. And the government has no sure mechanism to recover wrongfully disbursed funds delivered to entities that claim to be near insolvency,” Harris said in the request.
In proceedings earlier Wednesday denying a request to stay his deadline, U.S. District Court Judge Amir Ali, a Biden-era appointee, balked at the government’s insistence that it couldn’t meet the midnight payout deadline and criticized the Trump administration for waiting until Tuesday to raise the argument that they lack the ability to restart the funding.
“This is not something that Defendants have previously raised in this Court, whether at the hearing or any time before filing their notice of appeal and seeking a stay pending appeal. That is so even though Plaintiffs’ motion to enforce explicitly proposed compliance on this time frame,” Ali wrote.
On Tuesday, Ali had ordered the Trump administration to dole out delayed payments that could total nearly $2 billion, according to a USAID official, to multiple nonprofit groups, determining the Trump administration violated the terms of a temporary restraining order issued two weeks ago regarding freezing foreign aid.
A top official with the United States Agency for International Development claimed that complying with Tuesday’s court order would require paying foreign aid groups nearly $2 billion, arguing the payments “cannot be accomplished” in the timeframe set by the court.
Lawyers with the Department of Justice asked Ali in a late-night filing on Tuesday to issue a stay of his order that requires the Trump administration to pay by Wednesday at 11:59 p.m. any outstanding debts to foreign aid groups for work completed prior to Feb. 13. The Trump administration initially tried to freeze the payments via an executive order before Judge Ali ordered the payments to resume two weeks ago.
DOJ lawyers argued that fulfilling the payments is not only technically impossible but would also prevent the Trump administration from ensuring the payments are “legitimate.”
“The order apparently requires the Government to expend taxpayer dollars without regard to any processes for ensuring that the expenses are legitimate—even though Executive Branch leadership harbors concerns about the possibility of waste and fraud and is in the process of developing revised payment processing systems to address those concerns,” DOJ attorney Indraneel Sur wrote in a late-night filing.
According to Peter Marocco, the deputy administrator of USAID and director of foreign assistance at the State Department, complying with the court order would require dispersing $1.5 billion between 2,000 payment requests at USAID and an additional $400 million in payments at the State Department.
Earlier this week, Judge Ali excoriated Trump administration attorneys during a lengthy hearing over its failure to pay the groups for work they conducted prior to President Trump’s Jan. 20 executive order, which froze all foreign aid for 90 days. Ali also signed an order to enforce a temporary restraining order he signed on Feb. 13, ruling the groups must be paid by 11:59 p.m. Wednesday.
“Plaintiffs submitted evidence that defendants have not lifted the suspension or freeze of funds as the [temporary restraining order] required. Defendants have not rebutted that evidence, and when asked today, defendants were not able to provide any specific examples of unfreezing funds pursuant to the Court’s TRO,” Judge Ali said after a two-hour hearing today.
Lawyers with the Department of Justice acknowledged that the Trump administration ignored the temporary restraining order, which prohibited them from freezing foreign aid funds since the order was issued. Instead, they argued that they should not be required to pay back the money because of “sovereign immunity.”
During an extended exchange with Ali, a DOJ lawyer struggled to answer basic questions about the Trump administration’s compliance with the temporary restraining order, which prevented the administration from freezing funds.
“I’m not sure why I can’t get a straight answer from you on this. Are you aware of an unfreezing of the disbursement of funds for those contracts and agreements that were frozen before February 13?” Ali asked. “Are you aware of steps taken to actually release those funds?”
“I’m not in a position to answer that,” DOJ attorney Indraneel Sur said.
“We’re 12 days in and you’re here representing the government…and you can’t answer me whether any funds that you’ve kind of acknowledged or covered by the court’s order have been unfrozen?” Judge Ali responded.
“All I can do, really, is say that the preparations are underway for the joint status report on compliance,” Sur said.
At one portion of the lengthy court hearing, Sur attempted to offer a legal justification for the Trump administration’s noncompliance, prompting a stern response from the judge about his order, the terms of which he said were “clear as day.”
“The purpose of this hearing is to understand and to hear arguments on the motion to enforce TRO. It is not an opportunity to re-litigate the TRO,” Ali said.
A lawyer representing the nonprofits who brought the case argued that the lack of a response from the Trump administration amounts to defiance of the court order.
“What the court’s colloquy with the government has revealed is that the government has done nothing to make the flow of payments happen,” he said. “As far as we are aware, there’s been zero directives from the agency with respect to the unfreezing of funds.”
(WASHINGTON) — A federal judge on Friday will consider issuing a temporary restraining order to block the dismantling of the United States Agency for International Development, the embattled agency that handles foreign aid, disaster relief and international development programs.
Two foreign service unions are suing the federal government as the Trump administration attempts to reduce USAID’s workforce from 14,000 to only 300 employees.
The American Foreign Service Organization and the American Federation of Government Employees filed the lawsuit in D.C. federal court Thursday, alleging that President Donald Trump engaged in a series of “unconstitutional and illegal actions” to systematically destroy USAID.
“These actions have generated a global humanitarian crisis by abruptly halting the crucial work of USAID employees, grantees, and contractors. They have cost thousands of American jobs. And they have imperiled U.S. national security interests,” the lawsuit said.
The plaintiffs said Trump has unilaterally attempted to reduce the agency without congressional authorization, arguing that Congress is the only entity with the authority to dismantle USAID.
The lawsuit reads like a timeline of the last two weeks, laying out each step that formed the groundwork to break USAID, beginning with Trump’s first day in office. Shortly after Trump froze foreign aid via an executive order on his first day, he began to target USAID by ordering his State Department to begin issuing stop work orders, the lawsuit said.
“USAID grantees and contractors reeled as they were — without any notice or process — constrained from carrying out their work alleviating poverty, disease, and humanitarian crises,” the lawsuit said.
Next came the layoffs, the lawsuit alleges, with thousands of contractors and employees of USAID losing their jobs, leading medical clinics, soup kitchens, and refugee assistance programs across the world to be brought “to an immediate halt.”
“The humanitarian consequences of defendants’ actions have already been catastrophic,” the lawsuit said.
The lawsuit alleges the Department of Government Efficiency and Elon Musk — who boasted about “feeding USAID into the woodchipper” — made the final move to gut the agency, locking thousands of employees out of their computers and accessing classified material improperly.
While each step to dismantle the organization differed, the lawsuit alleged that they were unified by one thing: “Not a single one of defendants’ actions to dismantle USAID were taken pursuant to congressional authorization.”
The plaintiffs have asked the court to declare Trump’s actions unlawful and issue an order requiring the Trump administration to “cease actions to shut down USAID’s operations in a manner not authorized by Congress.”
