Month: June 2018

Iran is studying ways to keep exporting oil and other measures to counter U.S. economic sanctions, state news agency IRNA reported Saturday. Since last month, when U.S. President Donald Trump pulled out of the nuclear deal that lifted most sanctions in 2015, the rial currency has dropped up to 40 percent in value, prompting protests by bazaar traders usually loyal to the Islamist rulers. Speaking after three days of those protests, supreme leader Ayatollah Ali Khamenei said the U.S. sanctions were aimed at turning Iranians against their government. Other protesters clashed with police late Saturday during a demonstration against shortages of drinking water. “They bring to bear economic pressure to separate the nation from the system … but six U.S. presidents before him [Trump] tried this and had to give up,” Khamenei said on his website Khamenei.ir. With the return of U.S. sanctions likely to make it increasingly difficult to access the global financial system, President Hassan Rouhani has met with the head of parliament and the judiciary to discuss countermeasures. “Various scenarios of threats to the Iranian economy by the U.S. government were examined and appropriate measures were taken to prepare for any probable U.S. sanctions, and to prevent their negative impact,” IRNA said. One such measure was seeking self-sufficiency in gasoline production, the report added. Looking for buyers The government and parliament have also set up a committee to study potential buyers of oil and ways of repatriating the income after U.S. sanctions take effect, Fereydoun Hassanvand, head of the parliament’s energy committee, was quoted as saying by IRNA. “Due to the possibility of U.S. sanctions against Iran, the committee will …

President Donald Trump said Saturday that he had received assurances from King Salman of Saudi Arabia that the kingdom will increase oil production, “maybe up to 2,000,000 barrels” in response to turmoil in Iran and Venezuela. Saudi Arabia acknowledged the call took place, but mentioned no production targets. Trump wrote on Twitter that he had asked the king in a phone call to boost oil production “to make up the difference…Prices to (sic) high! He has agreed!” A little over an hour later, the state-run Saudi Press Agency reported on the call, but offered few details. “During the call, the two leaders stressed the need to make efforts to maintain the stability of oil markets and the growth of the global economy,” the statement said. It added that there also was an understanding that oil-producing countries would need “to compensate for any potential shortage of supplies.” It did not elaborate. Oil prices have edged higher as the Trump administration has pushed allies to end all purchases of oil from Iran following the U.S. pulling out of the nuclear deal between Tehran and world powers. Prices also have risen with ongoing unrest in Venezuela and fighting in Libya over control of that country’s oil infrastructure. Last week, members of the Organization of the Petroleum Exporting Countries cartel led by Saudi Arabia and non-cartel members agreed to pump 1 million barrels more crude oil per day, a move that should help contain the recent rise in global energy prices. However, summer months …

Editor’s note: A look at the veracity of claims by political figures President Donald Trump has elevated his tax cuts to an act of biblical proportions, misleadingly claiming at a White House speech Friday that they triggered an “economic miracle.” Not quite. Also Friday, the president’s top economics aide, Larry Kudlow, appeared on the Fox Business Network to address one of the major problems with the tax cuts — that they’ll heap more than $1 trillion onto the national debt. Kudlow falsely countered that the budget deficit was falling because of growth generated by the tax cuts. The deficit is actually rising. A look at the statements and the fact: TRUMP: “Six months ago, we unleashed an economic miracle by signing the biggest tax cuts and reforms … the biggest tax cuts in American history.” THE FACTS: The president is exaggerating, if not being outright deceptive. Rather than achieving a miracle, his tax cuts have helped stoke additional growth in an economic expansion that was already approaching its 10th year. The additional growth is largely fueled by government borrowing, as the federal deficit rises because of the tax cut. The pace of growth is expected to taper off after next year, according to the Congressional Budget Office, the Federal Reserve and outside analysts. And while the $1.5 trillion worth of tax reductions over the next decade are substantial, they’re far from the largest in U.S. history as a share of the overall economy. The Trump tax cut ranks behind Ronald …

General Motors Co warned on Friday that higher tariffs on imported vehicles under consideration by the Trump administration could cost jobs and lead to a “a smaller GM” while isolating U.S. businesses from the global market. The administration in May launched an investigation into whether imported vehicles pose a national security threat, and U.S. President Donald Trump has repeatedly threatened to impose a 20 percent vehicle import tariff. The largest U.S. automaker said in comments filed with the U.S. Commerce Department that overly broad tariffs could “lead to a smaller GM, a reduced presence at home and abroad for this iconic American company, and risk less — not more — U.S. jobs.” Higher tariffs could also hike vehicle prices and reduce sales, GM said. ​Less investment, fewer workers Its comments echoed those from two major U.S. auto trade groups Wednesday, when they warned that tariffs of up to 25 percent on imported vehicles would cost hundreds of thousands of auto jobs, dramatically raise prices on vehicles and threaten industry spending on self-driving cars. Even if automakers opted not to pass on higher costs “this could still lead to less investment, fewer jobs, and lower wages for our employees. The carry-on effect of less investment and a smaller workforce could delay breakthrough technologies,” GM said. GM operates 47 U.S. manufacturing facilities and employs about 110,000 people in the United States. It buys tens of billions of dollars worth of parts from U.S. suppliers every year, and has invested more than $22 …

Just days before the Trump administration’s tariffs on Chinese steel and aluminum imports are set to go into effect, trade analysts are watching for ripple effects across the automotive, manufacturing and technology sectors. VOA’s Elizabeth Cherneff has more from Washington. …

U.S. President Donald Trump said he expects a second tax overhaul to be unveiled in October or a bit earlier, and he is considering cutting the corporate tax rate to 20 percent from 21 percent. In an excerpt of a Fox Business Network interview to be broadcast Sunday, Trump said: “We’re doing a phase two. We’ll be doing it probably in October, maybe a little sooner than that.” “One of the things we’re thinking about is bringing the 21 percent down to 20, and for the most part the rest of it would go right to the middle class,” he said. In December, Trump signed the biggest overhaul of the U.S. tax code in 30 years, slashing the corporate tax rate to 21 percent from 35 percent and giving temporary tax relief to middle-class Americans. The sweeping bill passed the Republican-controlled Congress over the opposition of Democrats, who decried it as a giveaway to the wealthy that would add $1.5 trillion to the $20 trillion national debt. Republicans, hungry to revisit the tax issue ahead of a November midterm election showdown for control of Congress, are to unveil the outline of new tax legislation over the summer in the House of Representatives. But more tax cuts are unlikely to succeed in the closely divided Senate, where Democrats and conservative fiscal hawks could block such a measure. The nonpartisan Congressional Budget Office warned this week that more tax cuts would hasten the growth of an already rapidly rising federal debt. The …

U.S. President Donald Trump touted the Republican tax cut plan Friday, six months after he signed it into law, saying it was strengthening the U.S. economy and helping average Americans by increasing investment, jobs and wages. “It is my great honor to welcome you back to the White House to celebrate six months of new jobs, bigger paychecks and keeping more of your hard-earned money where it belongs: in your pocket or wherever else you want to spend it,” he said. A recent report by the nonpartisan Congressional Budget Office, however, projects a gloomy fiscal outlook in the U.S., which is experiencing rising debt under the Trump administration. The CBO report predicts the country’s debt burden will double in 30 years, exceeding even the U.S. debt load during World War II. The tax law, officially titled the Tax Cuts and Jobs Act, was the largest overhaul of the country’s complex tax laws in three decades. It cut the corporate tax rate, which was among the highest in the industrialized world, from 35 to 21 percent. It trimmed rates for millions of individual taxpayers as well, with the biggest cuts mostly benefiting the wealthiest earners, although some taxpayers saw bigger tax bills because of various changes in the tax regulations. The CBO report, which cautioned the high debt levels also increase chances of a fiscal crisis, projects the tax cuts could spur short-term economic growth, but it quickly would fall back to a long-term average of 1.9 percent. While most of …

President Donald Trump is denying any immediate plan to withdraw the United States from the World Trade Organization (WTO). “We have been treated very badly by the WTO,” Trump said to reporters on Air Force One during a short Friday afternoon flight from Maryland to New Jersey. But asked if he intends to pull the United States from the only global international organization dealing with the rules of trade between nations, Trump replied, “Not at this point, but they have to treat us fairly.” The remarks come as Trump appears increasingly intent on confrontation, rather than cooperation, with the European Union, the Group of Seven (G-7) nations, the North Atlantic Treaty Organization and the WTO. He has repeatedly suggested the United States would be better off pursuing trade and strategic deals with nations one on one. “Rather than playing the U.S. president’s traditional role as leader of the free world, Trump looks like he is declaring war on the international rules-based order: undermining the G-7 and WTO, raising doubts about continued U.S. support for a strong NATO to counter Russia, and falsely declaring that the European Union was invented to take advantage of the United States,” Alexander Vershbow, a distinguished fellow at the Atlantic Council’s Scowcroft Center for Strategy and Security and a former NATO deputy secretary general, tells VOA News. Trump, in less than two weeks, heads to Europe for the annual NATO summit before separate meetings in Britain with Prime Minister Theresa May and then, in neutral Finland, …

After a sharp sell-off, China’s yuan and stock markets attempted a modest recovery Friday, yet investors were grappling with some of their worst losses in years as a bitter Sino-U.S. trade row threatened to ruffle the world’s second-biggest economy. The yuan was set for its biggest monthly fall on record. Chinese stocks, on a downward spiral since late January, were also poised for their largest monthly slide since January 2016. The downturn highlighted the anxiety among investors as Washington and Beijing showed no signs of backing down from their tariff dispute. The worry is that an extended selloff in stocks and the yuan could spark a bout of capital outflows, putting further strain on the economy and complicating policy making as authorities put up defenses against the trade battle with the United States. Down 3 percent in month The yuan has shed more than 3 percent of its value against the dollar in June, its biggest fall since the market exchange rate was unified in 1994. On Friday, it fell to its lowest since mid-November 2017, but pulled up to 6.6139 per dollar by 0600 GMT for a modest bounce of about 0.16 percent on the day. Offshore, where the yuan trades more freely, the unit was up by about a quarter of a percent, at 6.6224 per dollar. In equities, the benchmark CSI300 Index rebounded more than 2 percent, while the Shanghai Composite Index gained around 2 percent, though they were both down around 9 percent for the month. …

Minnesota regulators on Thursday approved Enbridge Energy’s proposal to replace its aging Line 3 oil pipeline across the northern part of the state. All five members of the Public Utilities Commission backed the project, though some cited heavy trepidation, and a narrow majority later approved the company’s preferred route despite opposition from American Indian tribes and climate change activists. In discussion before the vote, several commissioners cited the deteriorating condition of the existing line , which was built in the 1960s, as a major factor in their decision. “It’s irrefutable that that pipeline is an accident waiting to happen,” Commissioner Dan Lipschultz said ahead of the vote. “It feels like a gun to our head … All I can say is the gun is real and it’s loaded.” Some pipeline opponents reacted angrily when it became clear commissioners would approve the project. Tania Aubid, a member of the Mille Lacs Band of Ojibwe, stood and shouted, “You have just declared war on the Ojibwe!” Brent Murcia, of the group Youth Climate Intervenors, added: “We will not let this stand.” Opponents argue that the pipeline risks spills in pristine areas in northern Minnesota, including where American Indians harvest wild rice. Ojibwe Indians, or Anishinaabe, consider wild rice sacred and central to their culture. Winona LaDuke, founder of Honor the Earth, said opponents would use every regulatory means possible to stop the project — and threatened mass protests if necessary. “They have gotten their Standing Rock,” she said, referring to protests that …

A U.S. delegation traveled to Kenya on Thursday to attend the inaugural economic summit of the American Chamber of Commerce, Kenya. About 500 delegates, including Kenyan President Uhuru Kenyatta and Gilbert Kaplan, U.S. undersecretary of commerce for international trade, other high-ranking government officials from both nations and representatives from nearly 30 major U.S. corporations, gathered at the summit, which was aimed at creating partnerships between the two nations’ public and private sectors in order to foster economic growth.  The Kenyan agenda was centered on advancing Kenyatta’s “Big Four” priorities — universal health care, manufacturing, food security and affordable housing — that he set out after his re-election to a second term last year. American companies in attendance were looking for opportunities to expand and to increase trade and investment in Africa. Kaplan told VOA that increasing business and economic development in Africa would benefit many Americans, which aligns with the promises of President Donald Trump’s “Make America Great Again” agenda.  “If we can export more and do more transactions here, do more investment here, that’s going to be incredibly helpful for the United States, for the people back home, because we’ll be making profitable ventures, and that will naturally help,” he said. But the U.S. delegation also had a strong message for Kenya: Real, meaningful economic growth can’t happen unless Kenya commits to fighting corruption. ​’It’s got to stop’ “Corruption is undermining Kenya’s future,” said Robert Godec, U.S. ambassador to Kenya. “It’s clearly a major problem for the country. We welcome President Kenyatta’s commitment …

Importers of Iranian oil are facing pressure from the United States to find another energy source or be hit with sanctions. The Trump administration is threatening other countries, including close allies such as South Korea, with the sanctions if they don’t cut off Iranian imports by early November, essentially erecting a global blockade around the world’s sixth-biggest petroleum producer. South Korea accounted for 14 percent of Iran’s oil exports last year, according to the U.S. Energy Department. China is the largest importer of Iranian oil with 24 percent, followed by India with 18 percent. Turkey stood at 9 percent, and Italy at 7 percent. A State Department official told reporters this week that the “vast majority” of countries will comply with the U.S. request. A group from the State Department and the National Security Council is delivering the president’s message in Europe. The official added that the group had not yet visited China or India. President Donald Trump announced in May that he would pull the United States out of a 2015 agreement over Iran’s nuclear program, and would re-impose sanctions on Tehran. Previously, the administration said only that other countries should make a “significant reduction” in imports of Iranian crude to avoid U.S. sanctions. European allies will reluctantly go along to avoid sanctions on their companies that do business in the U.S., said Jim Krane, an energy and geopolitics expert at Rice University. However, China, India and Turkey might be less likely to fully cut off Iranian imports, he …

President Donald Trump was highlighting his economic policies Thursday by taking part in the ceremonial ground-breaking for a $10 billion Foxconn factory complex that may bring thousands of jobs to a state he barely carried in the 2016 presidential election. But Trump’s celebration comes amid less-rosy economic news, with Harley-Davidson’s announcement it’s moving some motorcycle production overseas to avoid European Union tariffs that are a product of Trump’s escalating trade dispute with long-standing U.S. allies. The president was irked by the Milwaukee-based company’s announcement this week and tweeted about it for three straight days, writing that any shift in production “will be the beginning of the end” for the iconic American manufacturer and even threatening retaliatory taxes. Trump’s presence in Wisconsin was the subject of protests both in Milwaukee, where he spent a rare weeknight away from the White House, and in Mount Pleasant, where final preparations were under way for the ground-breaking. Chants of “Hey, hey, Ho, ho. Donald Trump has got to go” were heard near the Pfister Hotel, where Trump overnighted and attended a pair of closed-door campaign events before heading to the groundbreaking and tour of an existing Foxconn facility. Gov. Scott Walker and House Speaker Paul Ryan, R-Wis., were among those joining the president at the fundraisers.  About 50 people walked from a downtown park to as close as they could get to the roped-off hotel, hoping Trump hears their calls to reunite migrant families separated at the U.S.-Mexico border after the president decide to …

China defended its trade practices Thursday as being beneficial to the world as it tries to ease pressure from the United States and Europe to abandon what they consider to be Beijing’s protectionist policies. China’s rapid economic growth “has brought great opportunities to trading partners all over the world,” Vice Commerce Minister Wang Shouwen said at a Beijing news conference. Wang unveiled a report highlighting reforms China has taken since joining the World Trade Organization in 2001.He said Beijing has “carried out every promise” since joining the WTO. Wang’s defense of China’s business practices come amid threats of a trade war with the United States and arguments by Europe and Washington that China limits access to emerging industries and steals or forces other countries to hand over technology. Trump’s threat of tariff increases on Chinese goods worth up to $450 billion reflects fears that China’s actions are a threat to America’s technological leadership.Germany and other countries have complained that Beijing prohibits purchases of Chinese assets while Chinese companies engage in a worldwide spending spree. The dispute with Trump has allowed China, which has the world’s second largest economy, to position itself as a defender of free trade.When asked about possible U.S. plans to limit Chinese investment in its technology sectors, Wang said, “We hope countries concerned can do the right thing and adopt policies that support free trade and investment.” The U.S. and other trading partners maintain China’s emergence in the smartphone, solar and other technology sectors means it should …

Jared Kushner’s family company is suing a New Jersey city, alleging it forced the delay of a major twin-tower project due to “political animus” toward President Donald Trump. The federal lawsuit filed Wednesday by the Kushner Cos. claims Jersey City and the city’s redevelopment agency “put politics over principle” when they broke a contract with developers over the planned One Journal Square project, according to a report in the Jersey Journal. Trump is a Republican. Jersey City Mayor Steven Fulop, a defendant in the suit, is a Democrat. The Kushner Cos. previously threatened a lawsuit in April after the Jersey City Redevelopment Agency said developers were in default because they missed a deadline to begin construction on the project. Fulop dismissed the lawsuit, saying it amounts to “hearsay nonsense.” He said “it’s not like the Kushners have a great deal of credibility in anything they say” and that “they will do anything to manipulate a situation.” The lawsuit is seeking to stop the city from ending the project’s contract and declare the notice of default null and void. It calls the default threat a “transparent pretext to enhance Fulop’s status among the electorate of the city.” Joseph Fiorenzo, the company’s lawyer, said the “outrageous conduct” of city officials “strikes at the very heart of our economic system which has, as its foundation, the freedom of people to organize their affairs by entering into contracts. This is the glue that holds our economic system together.” The suit also names the city …

Apple Inc and Samsung Electronics Co Ltd on Wednesday settled a seven-year patent dispute over Apple’s allegations that Samsung violated its patents by “slavishly” copying the design of the iPhone. Terms of the settlement, filed in the U.S. District Court for the Northern District of California, were not available. In May, a U.S. jury awarded Apple $539 million, after Samsung had previously paid Apple $399 million to compensate for patent infringement. Samsung would need to make an additional payment to Apple of nearly $140 million if the verdict was upheld. How much, if anything, Samsung must now pay Apple under Wednesday’s settlement could not immediately be learned. An Apple spokesman declined to comment on the terms of the settlement but said Apple “cares deeply about design” and that “this case has always been about more than money.” A Samsung spokeswoman declined to comment. Apple and Samsung are rivals for the title of world’s largest smartphone maker, and the dollar sums involved in the decision are unlikely to have an impact on either’s bottom line. But the case has had a lasting impact on U.S. patent law. After a loss at trial, Samsung appealed to the U.S. Supreme Court. In December 2016, the court sided unanimously with Samsung’s argument that a patent violator does not have to hand over the entire profit it made from stolen designs if those designs covered only certain portions of a product but not the entire object. But when the case went back to lower court …