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EU has the resources to respond to Trump's tariff threats, French central bank chief says
The European Union has the resources to respond to president Donald Trump’s threats to levy more tariffs on the European Union, French central bank governor and European Central Bank (ECB) board member François Villeroy de Galhau said on Friday.
According to Reuters, he added that he wanted to see the escalations in a possible spiraling trade war cease. Villeroy de Galhau added that Trump’s view of the economy is a “losing” view.
The Trump administration has called on the Pentagon to provide military options to ensure the country has full access to the Panama canal, two US officials told Reuters on Thursday.
Donald Trump has said repeatedly he wants to “take back” the Panama canal, which is located at the narrowest part of the isthmus between North and South America and is considered one of the world’s most strategically important waterways, but he has not offered specifics about how he would do so, or if military action might be required.
One US official, who spoke on the condition of anonymity, said a document, described as interim national security guidance by the new administration, asked the military to look at options to ensure “unfettered” access to the Panama canal.
A second official said the US military had a wide array of potential options to guarantee access, including ensuring a close partnership with Panama’s military.
The Pentagon last published a national defense strategy in 2022, laying out the priorities for the military. An interim document sets out broad policy guidance, much like Trump’s executive orders and public remarks, before a more considered policy document like a formal NDS.
The Pentagon did not immediately respond to a request for comment.
BMW said it does not expect newly imposed US tariffs to remain in place until the end of the year, adding that if the situation changed, so would its outlook, reports Reuters.
BMW forecast a 5-7% earnings margin for its automotive segment in 2025, but that calculation was based on the assumption that the tariffs imposed so far would remain in place until the end of the year, which the carmaker does not expect to be the case, executives Oliver Zipse and Walter Mertl said. “If the situation changes, we will need to adjust the outlook,” chief financial officer Mertl added.
This week on the Guardian’s Politics Weekly America, Jonathan Freedland speaks to Heather Boushey, an economist and former adviser to Joe Biden, about what Donald Trump’s long game is with his trade war, and how voters will view his handling of the economy should there be a “Trumpcession”. You can listen to the podcast at the link below:
Here’s a little more on the comments to reporters by congresswoman Alexandria Ocasio-Cortez. According to a post on X by Kadia Goba, political reporter at Semafor, Ocasio-Cortez said:
There are members of Congress who have won Trump held districts in some of the most difficult territories in the United States; who walked the plank and took innumerable risks in order to defend the American people … just to see some Senate Democrats even consider acquiescing to Elon Musk. I think it is a huge slap in the face, and I think that there’s a wide sense of betrayal.”
Schumer decision to vote for Republican funding bill a betrayal and ‘huge slap in the face’, says AOC
The Senate finds itself on Friday in a familiar position, working to avoid a partial government shutdown with just hours to spare as Democrats confront two painful options: allowing passage of a bill they believe gives president Donald Trump vast discretion on spending decisions or voting no and letting a funding lapse ensue.
Senate Democratic leader Chuck Schumer gave members of his caucus days to vent their frustration about the options before them, but late on Thursday made clear he will not allow a government shutdown. His move gives Democrats room to side with Republicans and allow the continuing resolution, often described as a CR, to come up for a vote as soon as Friday, reports the Associated Press. Congresswoman Alexandria Ocasio-Cortez told reporters that Senator Chuck Schumer’s statement was “a huge slap in the face, and I think that there’s a wide sense of betrayal.”
A procedural vote on Friday will provide a first test of whether the package has the 60 votes needed to advance, before final voting likely later in the day. At least eight Democrats will need to join with Republicans to move the funding package forward.
“While the CR still is very bad, the potential for a shutdown has consequences for America that are much, much worse,” Schumer said.
Senate majority leader John Thune and others used their floor time on Thursday to make the case that any blame for a shutdown would fall squarely on Democrats.
Schumer said Trump would seize more power during a shutdown, because it would give the administration the ability to deem whole agencies, programmess and personnel non-essential, furloughing staff with no promise they would ever be rehired.
“A shutdown would give Donald Trump the keys to the city, the state and the country,” Schumer said.
More on that in a moment, but first, here are some other key developments:
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Senator Chuck Schumer, the Democratic minority leader in the Senate, said that he will vote to allow the deeply partisan Republican spending bill become law because a government shutdown would do more harm.
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Congresswoman Alexandria Ocasio-Cortez told reporters that Senator Chuck Schumer’s statement was “a huge slap in the face, and I think that there’s a wide sense of betrayal.”
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Stocks plunged again after Trump’s threat to impose a 200% tariff “on all wines, Champagnes, and alcoholic products” from European Union countries if the trading bloc makes good on its threat to retaliate for steel and aluminum tariffs announced by the US president by adding a 50% tariff on American products, including Kentucky bourbon.
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In a letter sent to the president of Columbia University and the co-chairs of its board of trustees on Thursday, the Trump administration’s antisemitism taskforce demanded nine specific changes to university policies and structures before negotiations over federal funding would begin.
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Columbia announced the same day it received the letter that it had complied with item one on the list of demands: expelling and suspending pro-Palestinian student protesters who occupied a campus building last year or took part in a Gaza Solidarity encampment.
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Representative Raúl Grijalva died after a long battle with cancer, his office announced on Thursday. His seat will remain vacant until at least September.
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In 1996 a federal judge found the legal provision now being used to target Mahmoud Khalil unconstitutional. She was Donald Trump’s sister.
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The Trump administration has appealed to the supreme court to uphold the president’s executive order curtailing birthright citizenship.
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The US Postal Service will reduce its staff by 10,000 through early retirements, and has signed an agreement with Elon Musk’s department of government efficiency (Doge) to streamline its operations, postmaster general Louis DeJoy announced.
