FINANCIAL TIMES
-President Donald Trump has announced plans to double tariffs on steel and aluminum imports from 25% to 50% in a move to intensify his global trade war. The move comes as Trump outlined a $15B partnership between Nippon Steel and US Steel, promising to create a tariff "fence" around domestic metals production. The new levies will take effect from June 4. Trump has been targeting dumping by foreign importers, with a 25% levy on steel and aluminum imports in March. Pennsylvania was a key swing state for Trump in the 2016 presidential election. The Canadian steel industry, the largest source of US imports, criticized Trump's move, arguing that unwinding efficient, competitive, and reliable cross-border supply chains in steel and aluminum comes at a great cost to both countries.
-Europeans have long appreciated the collapse of Eurocentrism as a result of a global shift. They have always held reservations about American allies, but the sense of ideological disdain from the Trump administration is shocking. This is not just realpolitik, but a rightwing culture war with distinctively American roots. The Trump administration's rhetoric is more extreme, with France's rightwing leader, Jordan Bardella, cancelling his US Conservative Political Action Conference speech in protest at Steve Bannon's stage gesture. Structural shifts also contribute to the downturn in US-European relations. The EU has become a serious economic rival to Washington, with extensive powers in areas like health regulation, food safety, and data privacy. However, rivalry is not enough; enmity is also a factor. Trump's new administration has run with the message that the EU is a "foe," leading to fewer Europeans seeing the US as an ally.
-US defense secretary Pete Hegseth has warned that a Chinese military attack on Taiwan could be imminent, urging America's allies in the Indo-Pacific to increase defense spending as a deterrent. Hegseth emphasized China's desire to become a hegemonic power in Asia and warned that any attempt by Communist China to conquer Taiwan would result in devastating consequences for the Indo-Pacific and the world. While US intelligence officials and military officers have said President Xi Jinping has instructed the Chinese military to develop the capability to invade Taiwan by 2027, an attack is not imminent.
-Jamie Dimon, the CEO of JPMorgan Chase, has warned that the US bond market will crack due to the country's rising debt. He urged the Trump administration to place America on a more sustainable trajectory and warned regulators that the market would experience a crack. This warning highlights the growing unease on Wall Street about rising government debt levels and the potential increase in the federal deficit if Trump's "big, beautiful" budget bill is passed. The Congressional Budget Office projected that US debt as a share of GDP would exceed the 1940s era peak in coming years. Long-term US bonds have also come under pressure due to fiscal worries, with the 30-year Treasury yield trading at about 5% from just over 4% at the start of 2024. Rating agency Moody's stripped the US of its triple-A credit rating this month. The Treasury bond market has grown from around $5T in 2008 to $29T today due to government cuts and increased spending, particularly during the coronavirus pandemic.
-The UN has declared that Gaza's entire population is at risk of famine due to the implementation of a controversial US and Israeli-backed aid scheme using private companies. The warning comes as Hamas considers the latest Washington-backed ceasefire proposal, which includes expanded aid distribution through the UN but does not guarantee the militant group's key demand of permanently ending the war. The UN's humanitarian arm OCHA stated that it was nearly impossible to safely carry aid into the enclave due to security and bureaucratic obstacles. The resumption of some aid deliveries into Gaza after a two-month Israeli blockade has done little to ease starvation conditions, with new distribution hubs marked by chaos and almost no supplies reaching northern Gaza. At least 47 Palestinians were reportedly wounded by gunshots while seeking to collect food from a distribution hub on Tuesday. The Gaza Humanitarian Foundation, a US and Israeli-backed group aiming to take over food distribution in Gaza from the UN, denied that anyone had been injured and stated that it had distributed more than 2 million meals to Gazans over the last four days.
-Donald Trump has confirmed that Elon Musk is not leaving the US government, despite his role as head of the Department of Government Efficiency (Doge). Trump credited Musk with running the most sweeping government reform program in generations at the department. Musk's time as head of Doge came to an abrupt end this week after he criticized central parts of the Trump administration's policy agenda. He was also forced to focus on his companies after they suffered blowback over his ties to the Trump administration. Trump credited Musk with running the most sweeping and consequential government reform program in generations at the Department of Government Efficiency.
-Diplomats predict that without increased pressure from Israel's ally, the US, which has proposed a ceasefire in Gaza, Netanyahu's government is unlikely to change course. The veteran prime minister and his allies have been defiant, vowing to continue fighting until Hamas is destroyed and discussing the displacement of Gaza's population. This has raised suspicions that they have no intention of permanently ending the war but are focused on making the strip uninhabitable. The real question is whether Donald Trump finds Netanyahu's behavior interferes with his own priorities. The Trump administration has stressed the notion of 'no daylight' between the US and Israel, but whether this adds up to serious leverage and real-world consequences remains to be seen.
-US embassies have been ordered to suspend visa approval processes for foreign students pending further social media screening. Secretary of State Marco Rubio has pledged to revoke Chinese student visas, particularly those studying in critical fields or linked to the Communist party. This move is part of measures against foreign academia and students, which analysts believe is eroding America's reputation as a safe destination for overseas study. Many are considering backup plans in other countries, as the US is no longer an ideal place for scientific research. Analysts warn that allowing xenophobic sentiments to go unchecked could lead to large-scale anti-Chinese incidents.
-US stocks experienced their biggest monthly rally since late 2023 in May, with the S&P 500 rising 6.2% and the Nasdaq Composite climbing 9.6%. The rallies were driven by the Magnificent Seven tech stocks, including Meta, Tesla, and Nvidia, which reported a 70% surge in quarterly revenue. Financials and industrials also climbed close to record highs. Stocks initially started rising on April 9, when President Trump announced a 90-day pause to his tariffs on most of the country's major trading partners. The US and UK announced a trade deal in early May, and a move by the US and China to cut tariffs for at least 90 days further boosted Wall Street equities. The sentiment remains optimistic and unafraid, as stocks continue to rise despite the ongoing pressure on US Treasuries and the dollar.
-Gerry Adams, former leader of Ireland's Sinn Féin party, has won a defamation lawsuit against the BBC, claiming it damaged his reputation as a peacemaker. The jury awarded Adams €100,000 in damages over a 2016 documentary and online article that claimed he sanctioned the murder of Denis Donaldson, a British MI5 agent in 2006. Adams had sought €200,000 in damages and denied all involvement. The victory was a significant victory for Adams, who has always denied being a member of the IRA, which fought to end British rule of Northern Ireland during the Troubles. Adams, president of Sinn Féin from 1983 to 2018, is a respected figure in the republican movement but is also criticized for his closeness to the IRA, including carrying paramilitary coffins at their funerals. BBC Northern Ireland director Adam Smyth expressed disappointment with the verdict, stating it could hinder freedom of expression.
NEW YORK TIMES
-The Trump administration's actions, including denying visas, expelring foreign students, and reducing research spending, are raising concerns among US scientists. They warn that the US's global supremacy in fields such as health, biology, and physical sciences may be coming to an end. David W. Hogg, a professor of physics and data science at New York University, warns that if things continue as they are, American science may be ruined. The administration has made rapid research cuts and curtailed foreign student presence. For example, the administration has blocked international students from attending Harvard, terminated or paused over $3B in research grants, and laid off over 2,000 people at Johns Hopkins University after losing $800M in government grants. The National Science Foundation, the world's leading funding agency in the physical sciences, has been issuing financing for new grants at its slowest rate since at least 1990.
-President Trump is expressing independence from external constraints on judicial nominations, aiming for loyalists who align with his agenda and criticizing the conservative legal network that influenced his selection of judges. Trump criticized the Federalist Society for their negative advice on numerous judicial nominations. The Justice Department undercut the traditional role of the American Bar Association in vetting judicial nominees earlier this week. Trump recently picked a loyalist without deep ties to the conservative legal movement for a life-tenured appeals court seat.
-China is reportedly stealing scientific expertise from the US to benefit Chinese companies and markets. National security officials claim this activity occurs in both business and college settings. To counter this threat, federal agents have been providing classified briefings to college officials and warnings to colleges. However, these efforts have led to controversy and distrust between educators and investigators. In 2018, F.B.I. director Christopher A. Wray criticized some college administrators for their naivety towards the danger posed by Chinese students, teachers, and researchers. The Justice Department initiated the China Initiative in 2018 to combat trade secret theft.
-The American Civil Liberties Union (ACLU) has requested a federal appeals court to prevent President Trump from using the Alien Enemies Act to deport Venezuelans accused of being gang members to a prison in El Salvador. The request is an opening salvo in a legal battle over Trump's aggressive deportation agenda. The case, which emerged from a Texas lawsuit, is set to become the first of its kind to receive a full hearing by the Supreme Court. The ACLU has been filing lawsuits to stop Trump from deporting Venezuelans accused of being members of the Tren de Aragua street gang.
-A federal investigator requested information about a 32-year-old woman, Leqaa Kordia, who was arrested during a pro-Palestinian protest at Columbia University and detained for overstaying her visa. The police provided her birth date, address, and a sealed arrest report. However, federal prosecutors presented only a $1,000 MoneyGram transfer to her relatives in Gaza. The judge, Tara Naselow-Nahas, ordered Kordia to be released on a $20,000 bond, but she remains at the Prairieland Detention Facility in Texas.
-The Centers for Disease Control and Prevention has updated its policy on Covid shots for children, stating that they will remain on the schedule for healthy children aged 6 months to 17 years old, but with a new condition of "shared decision-making" between the child and their caregiver. The vaccines will also be available to 38M low-income children who rely on the Vaccines for Children program. This move has caused concern among pediatricians and public health experts, who fear the policy could lead to insurers and government programs reducing or dropping vaccine coverage.
-The Trump administration has terminated a $258M program aimed at developing HIV vaccines, affecting the research efforts of Duke University and Scripps Research Institute. The program, which was collaborating with other research partners, was instrumental in the search for a vaccine. The work was applicable to various treatments for other illnesses, including Covid drugs, snake antivenom, and autoimmune diseases. The elimination of the program is the latest in a series of cuts to HIV-related initiatives, particularly in prevention. The N.I.H. also paused funding for a clinical trial of an HIV vaccine made by Moderna.
-The Trump administration and Congress are attempting to hinder the growth of electric vehicles by imposing a new tax and favoring oil and gasoline. Electric vehicles, like their predecessors in the 1900s, faced challenges in market acceptance and were often seen as less convenient than internal combustion engines. In 2023, President Trump defended electric cars, stating they were good for towing companies and could not be used in New Hampshire.
-North Korea, facing economic challenges due to sanctions, natural disasters, and the coronavirus pandemic, has found a solution to its military issues by partnering with Russia. In exchange, Moscow has revived a Cold War-era treaty of mutual defense and cooperation, providing North Korea with resources and technologies to modernize its military. South Korean officials and analysts warn that the growing military cooperation between Russia and North Korea could threaten the delicate military balance around the Korean Peninsula. The disintegration of the old Soviet bloc created a gap between North and South Korea in conventional weapons abilities, leading North Korea to focus on developing nuclear warheads and missiles.
NEW YORK POST
-Sen. Josh Hawley has revealed that a former President Joe Biden was so disoriented at the White House that he would "get lost in his closet." Hawley argued that the Democratic cover-up of Biden's mental decline is one of the biggest scandals in presidential history. The Missouri Republican claimed that the whistleblower was assigned to Biden and that he spoke to numerous Secret Service agents while investigating the assassination attempts against President Trump. Hawley's disclosure of the whistleblower's claim comes amid multiple congressional investigations into Biden's cognitive abilities and the role his staff played in running the country. House Oversight Committee Chairman James Comer is probing the possible use of an autopen by Biden's subordinates to sign off on White House directives and pardons without the president's knowledge. Comer has requested testimony from Dr. Kevin O'Connor, the White House physician during the Biden administration, as part of the probe.
-Anthropic CEO Dario Amodei has warned that artificial intelligence (AI) could eliminate half of all entry-level, white-collar jobs within the next five years. Amodei argued that politicians and businesses are not prepared for the potential spike in unemployment rates AI could cause. AI is becoming better at almost all intellectual tasks, and society will collectively grapple with it. Companies like Anthropic are building technology that could boost unemployment in America as high as 20% by 2030. AI can work nearly seven hours a day and has the skills typically required of entry-level corporate workers. Amodei urged US politicians to consider implementing a tax on AI labs, stating that the broader public and politicians are not fully aware of the situation. He acknowledged that it would not be in his economic interest to do so.