More stories

  • in

    Donald Trump says rare earths dispute ‘settled’ after Xi Jinping meeting in South Korea – live updates

    In case you’re just joining us, here’s a rundown on what happened at the high-stakes talks between Donald Trump and Xi Jinping in South Korea.Trump said afterwards that Washington’s dispute with Beijing over the supply of rare earths had been settled, China would resume buying US soybeans and Washington would reduce its tariffs on China.Trump shook hands with Xi after their talks and boarded Air Force One to return to Washington, saying onboard that the meeting had been a “great success”.He told reporters the Chinese leader had agreed to work “very hard” to prevent the production of the synthetic opioid fentanyl – blamed for many American deaths – and in exchange the US would reduce fentanyl-linked tariffs from 20% to 10%, lowering the overall tariff burden from 57% to 47%.Trump also said he would visit China in April and that Xi would come to the US some time afterwards.In key developments:

    Xi said after the meeting that he and Trump had reached “consensus” on trade issues, Chinese state media reported. Xi said both sides should “finalise follow-up work as soon as possible, maintain and implement the consensus and provide tangible results to set minds at ease about the economies of China, the United States and the world”.

    Trump said they had agreed to work together on Ukraine, adding that the war “came up very strongly” as an issue. “We talked about it for a long time, and we’re both going to work together to see if we can get something.”

    Taiwan was not discussed at the meeting, Trump said. Earlier, both leaders ignored a question about the self-governing democracy, amid concern in Taipei that Trump may be willing to make concessions to Xi.

    Before the meeting at Gimhae airbase in Busan, South Korea – their first face-to-face meeting in six years – Trump and Xi shook hands in front of their countries’ flags and the US president said: “We’re going to have a very successful meeting.” He added: “He’s a tough negotiator – that’s not good,” before patting the Chinese leader on the back.

    Trump had suggested before the meeting – at which their delegations faced each other across a negotiating table – that it could last three or four hours. The two leaders parted after one hour and 40 minutes.

    Xi said China and the US should “stay on the right course” and “be partners and friends” and should “work together to accomplish more great and concrete things for the good of our two countries and the whole world”.

    The optimism in Busan was in stark contrast to the recent exchanges of aggressive rhetoric over trade that had threatened to set the US and Chinese on an economic collision course, with potentially disastrous consequences globally. China’s yuan retreated from a near one-year high against the dollar on Thursday after the meeting met expectations but gave investors few new reasons for trade optimism.

    Minutes before meeting Xi, Trump said in a social media post that he had ordered the Pentagon to start nuclear weapons testingat the same level of China and Russia. He did not respond to a reporter’s question about the decision as he and Xi began their summit.With Justin McCurry and agencies
    Donald Trump has used his Truth Social platform to declare the trade tensions with China are “very close to being resolved” as he urges US farmers to go out and buy “more land and bigger tractors” as Beijing ends its soya bean embargo.The US exports about £18bn worth of soya bean a year, half of which goes to China, but China stopped buying the product leaving Trump contemplating a multi-billion dollar bailout for farmers.Trump said on Truth Social:
    I had a truly great meeting with President Xi of China. There is enormous respect between our two Countries, and that will only be enhanced with what just took place.
    We agreed on many things, with others, even of high importance, being very close to resolved. I was extremely honored by the fact that President Xi authorized China to begin the purchase of massive amounts of Soybeans, Sorghum, and other Farm products.
    Our Farmers will be very happy! In fact, as I said once before during my first Administration, Farmers should immediately go out and buy more land and larger tractors.
    The deal covers Fentanyl, rare earths and critical minerals such as refined lithium used in electric vehicle car batteries – a sector in which China dominates the world.China has also agreed to liberalise the sale of magnets used in everything from dishwasher doors to car window openings, he said.It will also buy oil and gas from Alaska, Trump added.Donald Trump had first laid out his intention to pursue nuclear arms control efforts in February, saying he wanted to begin discussions with both Vladimir Putin and Xi Jinping about imposing limits on their arsenals, reports Reuters.Most major nuclear powers except North Korea stopped explosive nuclear testing in the 1990s. North Korea conducted its last nuclear test in 2017. Russia’s last confirmed test was in 1990, followed by the last US test in 1992, and by China’s in 1996.The reaction to Donald Trump’s announcement on nuclear testing was swift in the US also.Representative Dina Titus, a Democrat from Nevada, said on X:
    I’ll be introducing legislation to put a stop to this.
    Daryl Kimball, director of the Arms Control Association, said it would take the US at least 36 months to resume contained nuclear tests underground at the former test site in Nevada. Kimball said on X:
    Trump is misinformed and out of touch. The US has no technical, military, or political reason to resume nuclear explosive testing for the first time since 1992.
    Apart from providing technical data, a US test would be seen in Russia and China as a deliberate assertion of Washington’s strategic power. Russian president Vladimir Putin has repeatedly said that Russia will test if the US does.In August, Trump said he had discussed nuclear arms control with Putin and wanted China to get involved. Beijing responded by saying it was “unreasonable and unrealistic” to ask the country to join in nuclear disarmament negotiations with the two countries, since its arsenal was much smaller.Reuters has some reaction to Donald Trump’s post on Truth Social about the US defence department to immediately begin nuclear testing on a par with Russia and China’s testing (see 1.49am GMT)A senior Russian lawmaker said Trump’s decision would herald a new era of unpredictability and open confrontation, state news agency RIA reported, while China’s foreign ministry called for the US to abide by its commitment to a moratorium on nuclear testing and uphold the global strategic balance and stability.It was not immediately clear whether Trump was referring to nuclear-explosive testing, which would be carried out by the National Nuclear Security Administration (NNSA), or flight testing of nuclear-capable missiles. No nuclear power, other than North Korea, has carried out explosive testing in more than 25 years.Russian senator Vladimir Dzhabarov said on Thursday that US president Donald Trump should negotiate with Russia, rather than imposing sanctions on it, state news agency RIA cited him as saying.US president Donald Trump said on Thursday he has given South Korea approval to build a nuclear-powered submarine, a dramatic move that would admit Seoul to a small club of nations possessing such vessels.The submarine will be built in a Philadelphia shipyard, where South Korean firms have increased investment, Trump wrote on social media.Trump wrote on his Truth Social platform:I have given them approval to build a Nuclear Powered Submarine, rather than the old fashioned, and far less nimble, diesel powered Submarines that they have now.The US president, who met South Korean president Lee Jae Myung and other regional leaders during his visit, also said Seoul had agreed to buy vast quantities of US oil and gas.Trump and Lee finalised details of a fraught trade deal at a summit in South Korea on Wednesday. Lee had also been seeking US permission for South Korea to reprocess nuclear fuel.However, South Korea’s industry ministry said its officials had not been involved in any detailed discussions about building the submarines in Philadelphia.While South Korea has a sophisticated shipbuilding industry, Trump did not spell out where the propulsion technology would come from for a nuclear-powered submarine, which only a handful of countries currently possess.One opposition lawmaker said on Thursday the Philadelphia shipyard does not have facilities to build submarines, reports Reuters.Asked about Trump’s submarine announcement, Hanwha Ocean, which owns the shipyard with another Hanwha affiliate, said it was ready to cooperate with both countries and provide support with advanced technology, but did not mention specifics.Defence minister Ahn Gyu-back told lawmakers that plans called for South Korea to build its own submarins and modular reactors, and receive a supply of enriched uranium fuel from the US.US president Donald Trump said on Thursday that China agreed to begin the process of purchasing US energy.Trump said in a Truth Social post:
    China also agreed that they will begin the process of purchasing American Energy. In fact, a very large scale transaction may take place concerning the purchase of Oil and Gas from the Great State of Alaska. Chris Wright, Doug Burgum, and our respective Energy teams will be meeting to see if such an Energy Deal can be worked out.
    Chinese state media reported shortly after the meeting that the US and China had reached a “consensus” on trade, but the language was a little vague.We’ve now had more information which confirms the consensus Xi referred to in the meeting was actually developed by the US and China trade negotiation teams which met last Sunday in Kuala Lumpur. After that meeting we were told they had developed a “framework” for trade deals, including the forthcoming sale of TikTok.A short time ago, China’s commerce ministry told reporters that consensus included:

    The US will remove the 10% fentanyl tariff on goods from mainland China, Hong Kong and Macao, and will extend its suspension of a 24% equitable tariff for another year. In return China will “adjust its countermeasures against the aforementioned US tariffs accordingly”. Both sides also agreed to extend certain tariff exclusions.

    The US will suspend its 50% penetration rule on export controls, and in return China will suspend its own export control measures – understood to be its ban on sales of rare earths to foreign countries for suspected dual-use purposes.

    The US will suspend for one year its Section 301 (harmful trade practises) investigations against China’s maritime, logistics, and shipbuilding industries for one year. In return China will suspend its related countermeasures.
    The ministry said the two sides also reached agreement on issues including fentanyl control, the expansion of agricultural trade, and “handling individual cases involving relevant companies”, which could refer to trade blacklists or investigations against US or American firms based in the other country.“Both sides further affirmed the outcomes of the Madrid trade consultations, with the US side making positive commitments in areas such as investment, and China agreeing to work with the US to properly resolve issues related to TikTok.”Additional research by Lillian YangChina’s defence ministry has said Beijing maintains an open attitude towards developing military relations with the US.Zhang Xiaogang, a spokesperson for the defence ministry, told a press briefing that China hopes the US will work with them to jointly build equal, just, peaceful and stable military ties.Oil prices have fallen slightly as investors digest the new trade deal between Trump and Xi.The two world leaders met in South Korea this morning, with Trump agreeing to reduce tariffs on China from 57% to 47% in a one-year deal, in exchange for Beijing resuming purchases of US soybeans, the continuation of rare earth exports and a crackdown on the trade of fentanyl.Brent crude futures dropped by 0.31% to $64.72 a barrel this morning, while US West Texas Intermediate crude futures dropped by 0.33% to $60.28.The drops suggest that some investors are sceptical that the new agreement marks an end to the trade war. But president Trump has said his discussions with Xi were “fantastic”, and emphasised their “great relationship”.You can follow more market reaction to the meeting in our business live blog:Earlier we reported that Donald Trump said he would visit China next year.A Chinese foreign ministry spokesperson has now confirmed that, saying the trip has been scheduled for April.In case you’re just joining us, here’s a rundown on what happened at the high-stakes talks between Donald Trump and Xi Jinping in South Korea.Trump said afterwards that Washington’s dispute with Beijing over the supply of rare earths had been settled, China would resume buying US soybeans and Washington would reduce its tariffs on China.Trump shook hands with Xi after their talks and boarded Air Force One to return to Washington, saying onboard that the meeting had been a “great success”.He told reporters the Chinese leader had agreed to work “very hard” to prevent the production of the synthetic opioid fentanyl – blamed for many American deaths – and in exchange the US would reduce fentanyl-linked tariffs from 20% to 10%, lowering the overall tariff burden from 57% to 47%.Trump also said he would visit China in April and that Xi would come to the US some time afterwards.In key developments:

    Xi said after the meeting that he and Trump had reached “consensus” on trade issues, Chinese state media reported. Xi said both sides should “finalise follow-up work as soon as possible, maintain and implement the consensus and provide tangible results to set minds at ease about the economies of China, the United States and the world”.

    Trump said they had agreed to work together on Ukraine, adding that the war “came up very strongly” as an issue. “We talked about it for a long time, and we’re both going to work together to see if we can get something.”

    Taiwan was not discussed at the meeting, Trump said. Earlier, both leaders ignored a question about the self-governing democracy, amid concern in Taipei that Trump may be willing to make concessions to Xi.

    Before the meeting at Gimhae airbase in Busan, South Korea – their first face-to-face meeting in six years – Trump and Xi shook hands in front of their countries’ flags and the US president said: “We’re going to have a very successful meeting.” He added: “He’s a tough negotiator – that’s not good,” before patting the Chinese leader on the back.

    Trump had suggested before the meeting – at which their delegations faced each other across a negotiating table – that it could last three or four hours. The two leaders parted after one hour and 40 minutes.

    Xi said China and the US should “stay on the right course” and “be partners and friends” and should “work together to accomplish more great and concrete things for the good of our two countries and the whole world”.

    The optimism in Busan was in stark contrast to the recent exchanges of aggressive rhetoric over trade that had threatened to set the US and Chinese on an economic collision course, with potentially disastrous consequences globally. China’s yuan retreated from a near one-year high against the dollar on Thursday after the meeting met expectations but gave investors few new reasons for trade optimism.

    Minutes before meeting Xi, Trump said in a social media post that he had ordered the Pentagon to start nuclear weapons testingat the same level of China and Russia. He did not respond to a reporter’s question about the decision as he and Xi began their summit.With Justin McCurry and agencies
    On his Truth Social account before the meeting, Trump had described the Busan catch-up as the “G2”, a nod to the US and China being the world’s biggest economies and a play on the names of other formal multilateral groupings like the G7 and G20.Even though it’s not an official name, “G2” has been welcomed by some Chinese people online.“Clearly, the core of the global order is the US-China relationship”, said one popular post on Weibo.Another said:
    Americans’ attitudes are shifting quickly; they are gradually adapting to the idea that the US and China are starting to stand on equal footing, and the world is big enough to accommodate a G2.
    With Lillian Yang More

  • in

    Meta reports mixed financial results amid spree of AI hiring and spending

    Meta reported mixed financial results for the third quarter of 2025. The company brought in record quarterly revenue but reported a major tax bill that dampened earnings per share, the company announced on Wednesday. The financial results come as Meta ends a multibillion-dollar hiring spree focused on artificial intelligence talent.The tech giant earned $51.24bn in quarterly revenue, beating Wall Street’s expectations and the company’s own projections for third-quarter sales. However, it reported earnings per share (EPS) of $1.05, far below Wall Street expectations of $6.70 in EPS. The major drop was due to a one-time non-cash income tax charge of $15.93bn. The EPS would have been $7.25 without this one-time charge, the company said.The report, and the scheduled investor call, gives investors another opportunity to find out whether the company’s lavish spending on AI infrastructure is justified. The company projected full-year total expenses would be between $116 to $118bn, upping the lower end of the range from $114bn. The company also expects 2025 capital expenditures to be between $70 and $72bn, up from a previously projected range of $66 and $72bn. Meta said its fourth-quarter revenue would likely fall somewhere between $56 and $59bn.“We had a strong quarter for our business and our community,” said Mark Zuckerberg, Meta’s founder and CEO. “Meta Superintelligence Labs is off to a great start and we continue to lead the industry in AI glasses. If we deliver even a fraction of the opportunity ahead, then the next few years will be the most exciting period in our history.”Jesse Cohen, senior analyst at Investing.com, said the latest report reveals “the growing tension between the company’s massive AI infrastructure investments and investor expectations for near-term returns”.It’s the first financial update since Meta said it planned to lay off 600 staffers from its AI unit – the same unit the company went on a spending and hiring spree to restructure and fill with the top AI talent from other companies. The company said the layoffs were an effort to reduce the bloat within the company’s “super-intelligence” unit and brought the number of employees there down to just under 3,000.Investors will also likely be hearing more about the company’s latest move to fund and support the development of its network of data centers. Earlier this month, the company announced a new joint venture with Blue Owl Capital that would help the firms build and finance the new $27bn Hyperion data center campus in Louisiana, the biggest Meta is involved in developing.The company’s stock has been on a steady rise over the past six months. Its previous two earnings reports have beaten Wall Street expectations. The wider US stock market likewise reached record highs the week.Meta also launched its new Ray-Ban Display glasses last month, which feature a screen embedded in the lenses, and analysts are eager to hear sales figures. Meta’s original camera glasses, simply dubbed Meta Ray-Bans, proved to be a popular gadget. Both types of glasses have already prompted privacy concerns. While Meta has designed the glasses not to work if a light that notifies people that the glasses are recording is covered, a $60 modification can disable the light, 404 Media reported.“I suspect these glasses, in particular, will predominantly appeal to early ‘tech-curious’ adopters, and that scheduled demos will far outpace sales,” said Mike Proulx, Forrester VP, research director.On the advertising side, Meta lost its accreditation from the Media Rating Council, a non-profit that sets industry wide standards for brand safety, after the company decided to pull out of the organization’s annual audits. The accreditation signals to advertisers that the content on the platform that their ads may appear next to would not be harmful to their brand. Meta received the accreditation just four months before it was stripped.Analysts were optimistic that the loss of accreditation would not ultimately hurt Meta’s ability to attract advertisers.“While this may raise eyebrows among advertisers, it won’t deter them from investing in Meta due to its sheer audience reach and brand reliance,” Proulx said. “Brands will overlook potential brand safety risks as long as their Meta media investments continue to perform.” More

  • in

    Haitians helped boost Springfield’s economy – now they’re fleeing in fear of Trump

    Every morning, Alicia Mercado makes the 50-minute drive from her home in Columbus to Springfield, where she runs the Adasa Latin Market store. She opened the business next to a Haitian restaurant in 2023, having spotted a gap in the market for Caribbean and Latin foods – the neighborhood’s Haitian population was booming at the time.But over the past year, she says her business, which includes an international money transfer kiosk, has taken a major hit.“About 80 to 90% of our customers were Haitians; now that’s down to about 60% over the past six months,” she says. “No more people are moving to Springfield.”Mercado’s experiences are being echoed around the city of 58,000 people that garnered international attention last year when Donald Trump falsely claimed during a presidential debate that immigrants were eating people’s pets.Until the end of last year, Springfield was something of a surprise economic juggernaut.A report from the Federal Reserve Bank of Cleveland found that it ranked second among all Ohio cities for job growth since the pandemic.New housing projects, worth hundreds of millions of dollars, are among the biggest investments the city has ever made.That growth was partly fueled by the availability of manufacturing and blue-collar jobs that were eagerly filled by the more than 15,000 Haitian immigrants who had moved to the city over the past eight years, fueling businesses such as Mercado’s.Local companies got cheap, reliable labor, while Haitian workers received stable income, health insurance and a safe place to live. Many bought homes and invested their hard-earned income into improving the city’s housing stock that, in turn, padded the city’s tax coffers. For the most part, it was a win for all involved.But since then, the city’s economic fortunes have spiraled.Springfield businesses, big and small, are struggling in the aftermath of thousands of Haitians fleeing the town after the Trump administration’s termination of the humanitarian parole program for citizens of several countries, including Haiti, in June. On top of that, the government has ended temporary protected status, affecting the immigration status of more than half a million Haitians, which comes into effect on or before 5 February 2026.The Department of Homeland Security says conditions in Haiti have improved to allow US-based Haitians to return. However, violence prompted Haiti’s government in August to issue a state of emergency in parts of the country. The US Department of State currently has a level four “do not travel” advisory for Haiti.The consequences of these moves are being keenly felt in places such as Springfield.Since January, when the Trump administration took office, the percentage of manufacturing jobs in Springfield has been falling by double digits as the civilian labor force also declines, something thought to be partly fueled by Haitians leaving the city due to fear of the administration’s anti-immigrant rhetoric.At Topre America, an automotive parts manufacturing company north-east of downtown Springfield, dozens of jobs that Haitians had once filled – forklift drivers, supervisors and stackers – have remained unfilled on the company’s employment webpage for months.Unemployment has ticked up slightly in the city – but still at a rate twice the state’s increase – in the 12 months since Trump’s racist comments.In a city where income tax makes up the majority of municipal funding, the loss of thousands of Haitian workers means fewer dollars for public services for all residents.“Our tax revenue, which is the backbone of our general fund, has flattened. After years of strong growth post-pandemic, the rebound is behind us,” Springfield’s city finance director, Katie Eviston, reported at a city commission public meeting in June.Previous estimates had tracked that 2025 would see a 3.5% increase in income tax funds for the city. By June, that anticipated growth, however, had been wiped out in what Eviston said was a “level of decline [that] hasn’t occurred since the early days of the Covid shutdown”.Moreover, the city faces a worrying $4.25m financial hole due to the cancellation of a host of Biden-era programs and grants by the Trump administration.Springfield and its businesses aren’t alone in dealing with the fallout of the Trump administration’s immigration policies.Experts say it has consequences for businesses and companies right across the country. In June, the Association of Equipment Manufacturers (AEM) said that ending visas for international workers would leave 85,000 jobs unfilled.“Stripping [immigrants’] ability to work and threatening them with removal is not just a human cost; it is an economic one,” an AEM executive wrote in the Washington Examiner.Small communities in Indiana, Pennsylvania and elsewhere in Ohio that enjoyed an economic rebound in the aftermath of the pandemic are also experiencing depressed purchasing power due to White House-fueled job cuts.“Trump’s immigration policy slowed inflows. Suddenly, more firms have seen their immigrant worker supplies decline, forcing them to pay more to attract native workers, thereby placing upward pressure on inflation,” says Mark Muro, a senior fellow at the Brookings Metro thinktank.“This, combined with Trump’s tariffs, has created serious upward price pressure along with the rise in labor costs – not a great combination for many US producers in the heartland.”Without the ability to work, many Haitians are leaving the US.According to the Immigration and Refugee Board of Canada, more than 26,000 Haitians sought asylum there in the first six months of 2025, many of whom are thought to have fled the US. By contrast, just 21,756 claims were made for all of 2024.Many Haitians in Springfield, however, are stuck in place, without jobs and with bills mounting up.“A lot of people have work problems – we have lost half our customers,” says Youdins Solon, who helps out at his family’s Keket Bongou Caribbean restaurant in south-east Springfield. Solon moved to Springfield last March, having lived in Florida for 18 months prior. But by the summer, he lost his job at a local Amazon distribution center when his immigration status was revoked. He says he is one of hundreds who have been laid off.“I’m lucky because I have my family here, but for a lot of people, they moved [out of Springfield] because they were afraid of the situation.”But for those who have staked their businesses on a thriving immigrant community in Springfield, it’s not easy to pack up and leave.“We order Haitian food from companies in Florida and Chicago every two weeks,” says Mercado, “but now, that’s greatly reduced.” More

  • in

    Trump says all trade negotiations with Canada ‘terminated’ over an anti-tariff advertising campaign – US politics live

    Hello and welcome to the US politics live blog. I am Tom Ambrose and I will be bringing you all the latest news lines over the next few hours.We start with the news that president Donald Trump said on Thursday all trade talks with Canada were terminated following what he called a fraudulent advertisement from Canada in which former and late US president Ronald Reagan spoke negatively about tariffs.“Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” Trump wrote on Truth Social.The Thursday night post on Trump’s social media site came after Canadian prime minister Mark Carney said he aims to double his country’s exports to countries outside the US because of the threat posed by Trump’s tariffs.Trump posted: “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is fake, featuring Ronald Reagan speaking negatively about tariffs.”The president wrote: “They only did this to interfere with the decision of the US supreme court, and other courts”. He added: “Tariffs are very important to the national security, and economy, of the USA. Based on their egregious behaviour, all trade negotiations with Canada are hereby terminated.”Carney’s office didn’t immediately respond to a request for comment Thursday night. The prime minister was set to leave on Friday morning for a summit in Asia, while Trump is set to do the same on Friday evening.Earlier on Thursday, the Ronald Reagan Presidential Foundation + Institute posted on X that the ad created by the government of Ontario “misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987.” It added that Ontario did not receive foundation permission “to use and edit the remarks”.The foundation said it is “reviewing legal options in this matter” and invited the public to watch the unedited video of Reagan’s address.Read our full story here:In other developments:

    The federal government remains shut down.

    Donald Trump canceled plans for a federal deployment to San Francisco at the request of two billionaire supporters, but he reiterated threats to Chicago.

    Trump said that he does not plan to ask Congress to declare war on Venezuela, ahead of possible strikes targeting suspected drug cartels as “we’re just gonna kill people”.

    Trump said an unnamed “friend” had just sent him “a check for $130m” to be used to pay military salaries during the government shutdown.

    A federal judge in Texas on Thursday dismissed a lawsuit filed by a Republican congressman who argued that California’s redistricting proposal would cause him personal injury and should be blocked.

    Trump claimed his militarized war on drugs was a huge improvement over the Biden administration’s effort, but a government database shows drug seizures are down from 2022.

    The White House has revealed that major companies in the tech, defense and crypto industries are helping Trump fund his $300m ballroom at the White House, where work is under way to demolish the entire East Wing.

    Top House Democrats have accused Donald Trump of orchestrating an illegal scheme to pay himself $230m in taxpayer money, demanding he immediately abandon claims they say violate the constitution.
    Donald Trump canceled plans for a deployment of federal troops to San Francisco that had sparked widespread condemnation from California leaders and sent protesters flooding into the streets.The Bay Area region had been on edge after reports emerged on Wednesday that the Trump administration was poised to send more than 100 Customs and Border Protection (CBP) and other federal agents to the US Coast Guard base in Alameda, a city in the East Bay, as part of a large-scale immigration-enforcement plan. By early Thursday morning, hundreds of protesters had gathered outside the Coast Guard base, holding signs with slogans such as “No ICE or Troops in the Bay!”.But just hours later, the president said he would not move forward with a “surge” of federal forces in the area after speaking with the mayor, Daniel Lurie, and Silicon Valley leaders including Marc Benioff, the Salesforce CEO who recently apologized for saying Trump should send national guard troops, and Jensen Huang, the chief executive of Nvidia.Lurie said he spoke with the president on Wednesday night, and that Trump told him he would call off the deployment.“In that conversation, the president told me clearly that he was calling off any plans for a federal deployment in San Francisco. Kristi Noem, the homeland security secretary, reaffirmed that direction in our conversation this morning,” Lurie said in a statement.Trump confirmed the conversation on his Truth Social platform, saying: “I spoke to Mayor Lurie last night and he asked, very nicely, that I give him a chance to see if he can turn it around.”Hello and welcome to the US politics live blog. I am Tom Ambrose and I will be bringing you all the latest news lines over the next few hours.We start with the news that president Donald Trump said on Thursday all trade talks with Canada were terminated following what he called a fraudulent advertisement from Canada in which former and late US president Ronald Reagan spoke negatively about tariffs.“Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED,” Trump wrote on Truth Social.The Thursday night post on Trump’s social media site came after Canadian prime minister Mark Carney said he aims to double his country’s exports to countries outside the US because of the threat posed by Trump’s tariffs.Trump posted: “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is fake, featuring Ronald Reagan speaking negatively about tariffs.”The president wrote: “They only did this to interfere with the decision of the US supreme court, and other courts”. He added: “Tariffs are very important to the national security, and economy, of the USA. Based on their egregious behaviour, all trade negotiations with Canada are hereby terminated.”Carney’s office didn’t immediately respond to a request for comment Thursday night. The prime minister was set to leave on Friday morning for a summit in Asia, while Trump is set to do the same on Friday evening.Earlier on Thursday, the Ronald Reagan Presidential Foundation + Institute posted on X that the ad created by the government of Ontario “misrepresents the ‘Presidential Radio Address to the Nation on Free and Fair Trade’ dated April 25, 1987.” It added that Ontario did not receive foundation permission “to use and edit the remarks”.The foundation said it is “reviewing legal options in this matter” and invited the public to watch the unedited video of Reagan’s address.Read our full story here:In other developments:

    The federal government remains shut down.

    Donald Trump canceled plans for a federal deployment to San Francisco at the request of two billionaire supporters, but he reiterated threats to Chicago.

    Trump said that he does not plan to ask Congress to declare war on Venezuela, ahead of possible strikes targeting suspected drug cartels as “we’re just gonna kill people”.

    Trump said an unnamed “friend” had just sent him “a check for $130m” to be used to pay military salaries during the government shutdown.

    A federal judge in Texas on Thursday dismissed a lawsuit filed by a Republican congressman who argued that California’s redistricting proposal would cause him personal injury and should be blocked.

    Trump claimed his militarized war on drugs was a huge improvement over the Biden administration’s effort, but a government database shows drug seizures are down from 2022.

    The White House has revealed that major companies in the tech, defense and crypto industries are helping Trump fund his $300m ballroom at the White House, where work is under way to demolish the entire East Wing.

    Top House Democrats have accused Donald Trump of orchestrating an illegal scheme to pay himself $230m in taxpayer money, demanding he immediately abandon claims they say violate the constitution. More

  • in

    RFK Jr railed against ultra-processed foods. Trump’s policies encourage their production

    As health secretary, Robert F Kennedy Jr has repeatedly blamed industrially manufactured food products for the country’s chronic illness and obesity crises, and urged Americans to limit their consumption of foods with added sugar, salt, fat, dyes and preservatives.Amid a slew of controversial and unbacked public health claims, his stance on ultra-processed foods is one of his least polarizing. More than 65% of Americans say they are in favor of reforming processed foods to remove added sugars and added dyes, according to a January Associated Press and National Opinion Research Center poll.Yet while RFK Jr touts the importance of eliminating ultra-processed foods from the US diet, nutrition experts say several of the Trump administration policies, including massive subsidies to corn and soy farms, undermine that goal.“Maha leadership is really failing on their promise to fight chronic disease, and they’re betraying the members of the public who put their trust in them to address this very real problem that Americans are really concerned about,” said Aviva Musicus, an assistant professor of nutrition at the Harvard School of Public Health.In September, Kennedy’s health and human services department released the “Make America Healthy Again” strategy report, billing it as a roadmap to improve children’s health. The report named highly processed foods as a leading driver behind the rising rates of chronic disease in children and outlined more than 120 recommendations, including educational campaigns to promote new, forthcoming dietary guidelines; advancing policies to restrict food dye additives; and potential revisions to nutrition information rule-making.The report has been criticized by nutrition and public health experts, however, for its focus on voluntary action over meaningful regulation of food and chemical companies. It suggests tracking Americans’ exposure to chemicals and pesticides, but does not impose any limitations on pesticide use, for example. Despite poor diet being named as a harm to children’s health, it does not suggest regulating the majority of additives in ultra-processed foods (UPFs).It instead proposes developing a government-wide definition to “support potential future research and policy activity”. The plan also recommends the exploration of “potential industry guidelines”, to limit the marketing of unhealthy food to children. Some advocates say that the report’s goals clash with the Trump administration’s cuts to the Supplemental Nutrition Assistance Program (Snap), Medicaid and scientific funding, all of which are essential to public health.“When it comes to food, Maha doesn’t seem particularly interested in regulation, despite talking about the need to protect consumers from industry influence and the harms the industry is creating,” Musicus said.A spokesperson for the Department of Health and Human Services, wrote in a statement to the Guardian: “The MAHA Strategy is a comprehensive plan with more than 120 initiatives designed to reverse the failed policies that have fueled America’s childhood chronic disease epidemic. It represents the most ambitious reform agenda in modern history – realigning our food and health systems, transforming education, and unleashing science to safeguard America’s children and families.”She added: “HHS is committed to serving the American people, not special interests, by delivering radical transparency and upholding gold-standard science.”Ultra-processed foods are industrially altered food products that include processed additives to improve taste, convenience and shelf life. Making up as much as 73% of the US food supply, UPFs have been linked to a number of health risks including cardiovascular disease, type 2 diabetes, cancer, digestive and microbiome issues, and adverse mental health.Many of the additives in UPFs, such as high-fructose corn syrup, corn starch, dextrose, soy lecithin and maltodextrin, are derivatives of corn and soy, two commodity crops that receive millions in agricultural subsidies. Trump’s reconciliation bill, signed into law in July, increases spending on these subsidies by $52bn over the next 10 years, according to an analysis by the Environmental Working Group. (Subsidy payments increased even as programs like Snap, which in 2024 provided food and nutrition assistance to 41 million Americans, faced significant cuts.)Subsidies for corn and soy “have definitely contributed”, to the proliferation of UPFs, said Ben Lilliston, the director of rural strategies and climate change at the Institute for Agriculture and Trade Policy. The consumption of high-fructose corn syrup, for example, increased 1,000% between 1970 and 1990.“Our farm policy is designed for farmers to overproduce corn and soy, and encourage them to do that,” Lilliston said. Decades of huge subsidies for commodity crops led to an excess amount of corn and soy, which eventually were used to produce the additives in ultra-processed foods like corn syrup and soy lecithin, he added.“It’s hard to find a processed food, if you look at the ingredients, that doesn’t have corn and soy in there. It’s incredibly cheap – below the cost of production – there’s so much of it, and there’s access to so much of it,” Lilliston said. Today, ultra-processed foods make up more than half of the calories in the American diet, according to data from the Centers for Disease Control and Prevention.Soy and corn – most of which is converted to animal feed, ethanol fuel, and byproducts used in UPFs – make up more than half of the country’s cropland. The farms that grow fruits and vegetables (known as specialty crops), are typically smaller and are not eligible for the majority of subsidies. But, these “are the types of farms that will be providing healthy foods, fruits, and vegetables on plates across the US”, said Jared Hayes, a senior policy analyst at the Environmental Working Group.Before joining Trump’s cabinet, RFK Jr himself blamed agricultural subsidies for America’s addiction to ultra-processed foods. In a 2024 interview, RFK Jr said the US obesity epidemic was being driven by food “poisoned” by “heavily subsidized” commodity crop derivatives. In a 2024 op-ed in the Wall Street Journal, Kennedy listed several steps Trump could take to “Make America Healthy Again,” and among them was reforming crop subsidies.“They make corn, soybeans and wheat artificially cheap, so those crops end up in many processed forms,” he wrote, adding: “Our subsidy program is so backward that less than 2% of farm subsidies go to fruits and vegetables.”The first Maha assessment report, released in May, blamed the food manufacturing industry for rising rates of chronic illness. After its publication, more than 250 food and agriculture groups, including the American Soybean Association and the National Corn Growers Association signed a letter claiming it included “erroneous representations” about food and agriculture and called for “formal inclusion of food and agriculture representatives in the commission’s processes moving forward”.But in the follow-up report, there was little mention of the food industry’s role in children’s health, nor were there suggested pathways to regulate what ingredients companies put in their products. While ultra-processed foods were mentioned 40 times in the initial report, the second, strategy report mentioned the term just twice.“Kennedy has framed himself as an anti-corporate hero, while at the same time utilized the age-old tactic of becoming buddies with the very industries that he purports he wants to change or regulate,” said Rebecca Wolf, the food policy lead at Food and Water Watch.“There’s anti-corporate rhetoric, but at the same time an inability and an unwillingness to actually take on corporate power,” Wolf said. “We’ve just [been] keeping a really close eye on the difference between narrative and policy, and what I’ve seen right now are policies that will not protect people, but in fact, further threaten their health.”To truly build a healthier US diet, Musicus says the Trump administration, in addition to regulating UPFs, should not be cutting the very programs that make nutritious food and healthcare more accessible to low-income families and individuals.“We’ve seen the federal government cut Snap benefits, write off millions of Americans from their health insurance coverage, slashed programs to help farmers bring local foods into schools, eviscerate government funding for research on nutrition and health and threaten access to life-saving vaccines,” Musicus said, adding that RFK Jr had simultaneously failed to impose meaningful regulation on the food industry.“As a result, the net public health impact of this administration has been negative, despite the fact that they’re constantly talking about improving Americans’ health,” she said. More

  • in

    Markets rebound amid latest US-China tariff spat as traders look to possible ‘Taco trade’

    European stock markets have edged higher and cryptocurrencies rebounded amid signs that a new front in the US-China trade war may not be a severe as first feared.Tensions between Washington and Beijing escalated again on Friday and over the weekend, as Donald Trump threatened to impose additional US tariffs of 100% on China starting next month.The US president accused the country of “very hostile” moves to restrict exports of rare-earth minerals needed for American industry. Beijing said it would retaliate if Trump does not back down.However, Trump and senior US officials opened a door to a possible deal with China on Sunday. The president wrote on Truth Social: “Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!”The comments have offered some comfort for investors in Europe, with stocks opening mostly higher on Monday. The UK’s blue-chip FTSE 100 index rose by 0.2% in early trading, while markets in France, Spain, Germany were all up by about 0.5%.Most big cryptocurrencies rebounded after a deep sell-off over the weekend. Bitcoin edged up by 0.3% to more than $115,000, after falling below $105,000 on Friday. Ether had dropped to less than $3,500 but rebounded to about $4,100.Richard Hunter, of the broker Interactive Investor, said investors were hoping for a “Taco trade”, which is the idea that markets rally because “Trump Always Chickens Out” (Taco) of aggressive tariff decisions.“The president’s propensity to shoot from the hip unsettles the investment environment, even though some are already speculating that the Taco trade is alive and well,” he said.However, a heightened sense of uncertainty is pushing investors to gold, which is considered a safe haven asset. Its spot price hit another new high on Monday, rising to as high as $4,078.5 an ounce.Derren Nathan, of the broker Hargreaves Lansdown, noted that US stock futures suggested that there could be “at least a partial rebound” when the market opens later on Monday.“Traders may be banking on a similar pattern where American indexes entered a six-month period of almost unbroken growth helped by a string of trade deals, and growing hopes of a soft-landing for the US economy,” he said.skip past newsletter promotionafter newsletter promotionShares in Anglo-Swedish pharmaceutical firm AstraZeneca – which made a deal with Trump to lower drug prices and avoid tariffs over the weekend – initially rose on Monday morning, before falling back by 0.4%.Fears were still running high in Asia, with main markets tumbling on Monday. Hong Kong’s Hang Seng index dropped by 2.3%, while the Taiwanese market fell by 1.4% and the Thai exchange declined by 2%. In mainland China, the Shenzhen exchange fell by 1.4% and the Shanghai market slipped 0.4%.On Monday, Chinese foreign ministry spokesperson Lin Jian urged the US to promptly correct its “wrong practices” and said it would act to safeguard its interests.Despite the trade tensions, Chinese exports bounced back in September, topping forecasts as it diversified its markets.Chinese exports rose by 8.3% year on year last month, according to official customs data. This was the fastest growth since March, and beat a 6% increase forecast by economists polled by Reuters. It comes after a 4.4% increase in August. More

  • in

    China warns US of retaliation over Trump’s 100% tariffs threat

    Beijing has told the US it will retaliate if Donald Trump fails to back down on his threat to impose 100% tariffs on Chinese imports as investors brace for another bout of trade war turmoil.China’s commerce ministry blamed Washington for raising trade tensions between the two countries after Trump announced on Friday that he would impose the additional tariffs on China’s exports to the US, along with new controls on critical software, by 1 November.“Wilful threats of high tariffs are not the right way to get along with China,” a spokesperson for the commerce ministry said on Sunday, according to the state news agency Xinhua. “China’s position on the trade war is consistent. We do not want it, but we are not afraid of it.“If the United States insists on going the wrong way, China will surely take resolute measures to protect its legitimate rights and interests.”Trump and senior US administration officials opened a door to a China trade deal on Sunday as market futures showed another US stock market drop.“Don’t worry about China, it will all be fine! Highly respected President Xi just had a bad moment. He doesn’t want Depression for his country, and neither do I. The U.S.A. wants to help China, not hurt it!!!” Trump wrote on Truth Social.The message came after JD Vance called on Beijing to “choose the path of reason” in the latest spiralling trade fight between the world’s two leading economies that has shaken stock markets.Dow futures showed a drop of 887 points ahead of the stock markets’ open on Monday. The index dropped sharply lower on Friday after reignited fears of a trade war with China when threatened to impose 100% tariffs on Chinese imports after China said it would restrict rare earth exports. The Dow fell 879 points, or 1.9%.“It’s going to be a delicate dance, and a lot of it is going to depend on how the Chinese respond,” Vance said on Fox News’s Sunday Morning Futures. “If they respond in a highly aggressive manner, I guarantee you, the president of the United States has far more cards than the People’s Republic of China. If, however, they’re willing to be reasonable,” he said, then the US would, too.The US president shocked the financial markets on Friday when he accused China of “very hostile” moves to restrict exports of rare-earth materials needed by US industry.It prompted heavy falls on Wall Street, where about $2tn (£1.5tn) was wiped off the value of the US stocks.China insisted on Sunday that its latest export controls on rare earths such as holmium, erbium, thulium, europium and ytterbium were legitimate.“China’s export controls are not export bans,” said the commerce ministry spokesperson. “All applications of compliant export for civil use can get approval, so that relevant businesses have no need to worry.”skip past newsletter promotionafter newsletter promotionThe measures were introduced after Washington added a number of Chinese firms to its export control list in a crackdown on the use of foreign affiliates to circumvent export curbs on chipmaking equipment and other goods and technology.The UK’s FTSE 100 share index fell almost 1% on Friday as Trump’s threat sparked a late selloff. The futures market indicates there could be further losses in London and New York on Monday, although there could also be relief that Beijing has not yet retaliated.Bitcoin, which had tumbled 8% after Trump’s post on Truth Social, rose by 4% on Sunday after China refrained from retaliating.Trump’s tariff threat was “a rather unwelcome development for financial markets” as investors had “by and large moved on from the trade and tariff story”, said Michael Brown, a senior research strategist at the brokerage firm Pepperstone.“Chiefly, the question that every man and his dog are attempting to answer is whether this is a credible threat, that the Trump admin might follow through on, or whether this is another example of the ‘escalate to de-escalate’ strategy that Trump used so frequently earlier in the year.“A strategy where outlandish and ridiculous tariff figures are threatened, in an attempt to focus minds, extract concessions from the other party, and ultimately come to agreement faster than otherwise might’ve been possible.” More