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    Majority of special education staff in US education department laid off – report

    The majority of staff in the education department handling special education has been laid off, according to multiple reports.Friday’s total of 466 layoffs across the education department also impacted the Office of Special Education and Rehabilitative Services, which oversees programs that support millions of children and adults with disabilities nationwide, according to sources speaking to various outlets.“Despite extensive efforts to minimize impact on employees and programs during the ongoing government shutdown, the continued lapse in funding has made it necessary to implement the RIF (reduction in force),” according to a letter issued to workers that CNN reviewed.The Guardian has contacted the education department for comment.One department employee told NPR: “This is decimating the office responsible for safeguarding the rights of infants, toddlers, children and youth with disabilities.”skip past newsletter promotionafter newsletter promotionSimilarly, the National Association of State Directors of Special Education said that if the layoffs are true, “there is significant risk that not only will federal funding lapse, but children with disabilities will be deprived” of free and proper education, K-12 Dive reports.Chad Rummel, executive director of the Council for Exceptional Children, told the outlet: “The rumored near elimination of the Office for Special Education Programs is absolutely devastating to the education of people with disabilities.”“Eliminating federal capacity to support Idea is harmful to people with disabilities, their families, and the professionals who serve them, and it runs counter to everything our members work toward every day,” Rummel added, referring to the Individuals with Disabilities Education Act which ensures a free and appropriate public education to eligible children with disabilities throughout the country.In March, the education department announced layoffs of 1,300 employees, or nearly 50% of the department’s workforce, which the education secretary Linda McMahon described as a “significant step toward restoring the greatness of the United States education system”. More

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    Republican and Democratic senators dig in heels over government shutdown

    Republican and Democratic senators Lindsey Graham and Mark Kelly have dug their heels in over the government shutdown – which is now approaching two weeks, with the former saying that the closure won’t push him to meet Democrats’ demands for a restoration of Obama-era healthcare subsidies.Graham said on NBC News’s Meet the Press on Sunday that he was in favor of the Senate voting to reopen the government and prepared to “have a rational discussion” with Democrats – but not with the government shut down.“I’m willing to vote to open the government up tomorrow,” Graham said. “To my Democratic friends: I am not going to vote to extend these subsidies.”Graham, speaking to Democrats, added: “It’s up to you. If you want to keep it shut down, fine. It’s not going to change how I approach healthcare.”The senator’s comments came as Vice-President JD Vance warned that permanent cuts to the federal workforce will only get “deeper” as the shutdown continues.Vance told Fox News’s Maria Bartiromo on Sunday Morning Futures that “the longer it goes on, Maria, the more significant they’re going to be. If you remember, we went nine days before announcing any significant layoffs.“The longer this goes on, the deeper the cuts are going to be,” Vance continued.More than 4,000 federal workers have so far been identified for job terminations. The Senate has voted multiple times over the last two weeks on a stopgap funding measure but not enough Democrats have joined the proposal to reach a 60-vote threshold.Graham’s comments may indicate a hardening approach to negotiations over healthcare subsidies with or without a functioning government.“The subsidies we’re talking about here,” Graham told NBC. “If the (Obama’s) Affordable Care Act is so affordable, why, every time I turn around, are we spending $350 billion to keep it afloat?”The dispute on the network continued with Arizona senator Mark Kelly, a Democrat, criticizing Republicans for refusing to negotiate with Democrats.“We need a real negotiation, and we need a fix. We need this corrected for the American people. This is for so many people – their healthcare is running towards a cliff, and if we don’t fix this, it’s going to go right over it,” Kelly told host Kristen Welker on Meet the Press.Against increasing pressure to reach a deal, with both sides weighing the political cost of a lack of a resolution, House speaker Mike Johnson said on Monday that Republicans had “probably a hundred different ideas about how to fix it but we can’t do that overnight”.He said Democrats’ demands for a resolution to the healthcare subsidies issue without lengthy discussions were “impossible and inappropriate”.“It’s not a deliverable and they know it,” Johnson said. “They chose that issue because they thought it would sell well to the public and it would show they were fighting Trump. It’s all a big facade and I’m so frustrated by it.” More

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    The populist playbook: Democratic US Senate candidate seeks to replicate Mamdani’s success

    During Vermont senator Bernie Sanders’s Fight the Oligarchy tour stop in Michigan, Democratic US Senate candidate Abdul El-Sayed hit on bold populist policies like Medicare For All and taxing the rich.But he drew among the loudest cheers from the crowd in Kalamazoo, when he bellowed his updated reversal of an Obama catchphrase that signified a new pugilistic tactic when dealing with Maga attacks. “When they go low, we don’t go high. We take them to the mud and choke them out,” he said.El-Sayed’s fiery speech and his populist campaign in Michigan’s Democratic primary for the Senate race comes on the heels of Zohran Mamdani’s stunning June win in New York City’s mayoral primary, which has generated momentum on the left-wing of the party.The Sanders-endorsed, anti-establishment El-Sayed, 40, follows a similar blueprint as Mamdani, and Michigan in some ways offers favorable terrain for the leftwing populist playbook. But at the same time a repeat of Mamdani’s success in the more conservative, upper midwest swing state is far from certain, and the race is viewed as a possible bellwether on leftists’ electability in statewide campaigns across the US.“This is a time when that call for new politics is resonating beyond the places one would expect it to resonate, like in the far reaches of Michigan’s rural communities,” said Yousef Rabhi, a former Michigan House Democratic floor leader who has endorsed El-Sayed. “Abdul and Mamdani are speaking to this moment.”Like Mamdani, El-Sayed eschews partisanship in favor of leftwing populist economic ideas, sharply criticizes Israel, and leans heavily on a sense of authenticity. In New York City, that formula resonated with younger people, activated disaffected voters and attracted support for Mamdani from across the political spectrum. Mamdani remains strongly ahead in the New York mayoral raceUsing that style in Michigan is a break from the moderate Democratic politics that for decades have dominated in the state, and which defeated El-Sayed in 2018 when he lost to now governor Gretchen Whitmer in a gubernatorial Democratic primary.But since then, El-Sayed has run health departments in Detroit and Wayne county, and touts accomplishments like helping to eliminate $700m in medical debt for local residents.The economic playing field has also shifted since 2018, and El-Sayed thinks his message is more likely to resonate now than seven years ago. “People now understand Donald Trump was not the cause, but the symptom,” he said during an interview with the Guardian at a Detroit coffee shop.Moreover, Democratic voters’ frustration with the party is near all time highs, and the left believes there is appetite for outsider candidates, populist economics and criticism of Israel’s war in Gaza. It has boosted El-Sayed, especially in a state that’s home to the uncommitted movement and large Arab-American and Muslim populations.But there are some crucial differences between El-Sayed’s and Mamdani’s races.El-Sayed’s opponents are not damaged like Mamdani’s main competitors, mayor Eric Adams and former New York governor Andrew Cuomo. In the August 2026 primary election, El-Sayed faces US congresswoman Haley Stevens, and state senator Mallory McMorrow. The latter is similarly young and critical of party leadership, and has styled herself as an outsider. But McMorrow largely shares the establishment’s economic policy positions and brought on political insiders, like controversial former Cuomo consultant Lis Smith.Educated, middle-class voters who wanted to vote for an outsider were key to Mamdani’s win. El-Sayed also needs those votes, but they may be split among him and McMorrow, even if the two candidates have substantially different policies and El-Sayed is more truly an outsider, said Josh Cohen, a progressive political analyst who writes the Ettingermentum newsletter.“The race is not the ideal feel and circumstance in the way that New York was for Mamdani,” Cohen said. An El-Sayed win would suggest voters are concerned with policy, he added. “It would be a very meaningful sign that people’s desire for a shift isn’t superficial.”Another key difference between McMorrow and El-Sayed lies in Israel policy. El-Sayed calls for an end to “blank check” military aid to Israel and other countries, and uses the term “genocide”. McMorrow, by contrast, has tried to walk a tightrope, calling for humanitarian relief while not using the term “genocide” until October.El-Sayed’s populist economic proposals include a ban on tax incentives for companies like Amazon, new taxes for billionaires, the elimination of medical debt and a strengthening of anti-monopoly laws to address corporate price gouging.Though those are leftist ideas, El-Sayed said he avoids the “left-right” label, which might help thread a needle in places like the rural, conservative upper peninsula. Financial pain and its cause are the same everywhere, El-Sayed added, so his focus is on the economic divide, not the cultural or political one.“It’s the divide between the people who have been locked out and those doing the locking out,” he said. He added that his solutions have broad appeal no matter what they are labeled, and that explains why some Trump voters surprisingly show up for “a guy named Abdul”.“They didn’t vote for Donald Trump out of a sense of hate for Muslims. They voted for him because of a sense of frustration with the way the system has locked them out,” El-Sayed said. Indeed, the Trump-to-Mamdani voter was a key piece of the story in New York City.But Mamdani also had built-in help from politically aligned groups who in recent years laid dow campaign and issue infrastructure that was key to his win. No such infrastructure to push these ideas exists in Michigan.Even if El-Sayed wins the primary, Republicans will try to make the general election about social wedge issues instead of economics, said Jared Abbott, a political scientist and director of the Center for Working Class Politics.Mamdani and El-Sayed have so far been “very disciplined” in focusing on the “working class’s bread and butter economic issues”, Abbott added, and that would be essential to his overcoming GOP general election attacks.A win in the general could have an outsize impact on national politics – just as the Squad members’ 2018 midterm wins reverberated into the presidential primary and Biden’s domestic policy, El-Sayed’s election in a swing state could help pull the 2028 presidential race and next president to the left.“It would be a massive proof of concept that progressives do not [currently] have,” Abbott said. More

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    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

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    Trump news at a glance: Insurrection Act on the cards, says Vance, as president touts peace in the Middle East

    The Trump administration is considering ways to invoke emergency powers, including utilising the Insurrection Act of 1807, which would allow president Donald Trump to deploy troops on US soil in the event of major unrest.Despite legal pushback, vice-president JD Vance has confirmed the White is seriously considering the idea. “The president’s looking at all of his options,” he told NBC’s News’s Meet the Press on Sunday, adding that “we are talking about this because crime has gotten out of control in our cities”.The acknowledgment came as president Trump boarded a plane for Jerusalem, where he is scheduled to speak at the Knesset and meet families of hostages set to be released from Gaza on Monday after helping to broker a major peace deal.The war, he proclaimed, “was over”, adding that relations in the Middle East would “normalize”.Here are the key stories:Trump ‘looking at all options’ amid threats to invoke Insurrection Act, Vance saysThe White House is talking about invoking the Insurrection Act that would allow the deployment of military troops on US soil to quell domestic unrest amid legal challenges over the moves, JD Vance confirmed on Sunday.Vance was asked on NBC News’s Meet the Press whether Donald Trump was seriously considering invoking the emergency power to deploy national guard forces and even the US military in domestic settings.Read the full storyTrump says ‘war is over’ in Gaza as Israel awaits release of hostagesThe war in Gaza has ended and the Middle East is going to “normalize”, Donald Trump said on Sunday as he flew to Israel, which was waiting for Hamas to release Israeli hostages as world leaders were gathering to discuss the next steps toward peace.“The war is over, you understand that,” Trump told reporters onboard Air Force One as he began a flight from Washington DC to Israel.Read the full storyChina warns US of retaliation over Trump’s 100% tariffs threatBeijing 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.Read the full storyTrump officials reportedly consider selling student loan debt to private investorsOfficials in the Trump administration are reportedly weighing the possibility of selling portions of the federal government’s $1.6tn student loan portfolio to private investors, which experts say could carry risks for both taxpayers and borrowers – potentially reshaping the student loan landscape in unpredictable ways.Read the full storyMaga figures back Bukele’s call for Trump to crack down on US judgesDonald Trump is not known for taking advice, especially from foreign leaders who often seek to flatter and compliment the US president, writes the Guardian’s Jason Wilson in this feature on the El Salvadorian leader’s thoughts on the US judiciary.El Salvador’s authoritarian leader Nayib Bukele has followed a different tack, he writes, by calling on the Trump administration to follow his example in impeaching “corrupt judges”.Read the full storyWhat else happened today:

    ‘Cavalier and aggressive’: why are border agents flooding into US cities? The Guardian’s Maanvi Singh has this piece on how border agents have become a key force in Trump’s migrant crackdown.
    Catching up? Here’s what happened on 11 October, 2025. More

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    Trump ‘looking at all options’ amid threats to invoke Insurrection Act, Vance says

    The White House is talking about invoking the Insurrection Act that would allow the deployment of military troops on US soil to quell domestic unrest amid legal challenges over the moves, JD Vance confirmed on Sunday.Vance was asked on NBC News’s Meet the Press whether Donald Trump was seriously considering invoking the emergency power to deploy national guard forces and even the US military in domestic settings.“The president’s looking at all of his options,” he said, adding that “we are talking about this because crime has gotten out of control in our cities”.Trump’s attempts to use federal national guard forces in Democratic-run cities has faced challenges in the courts, most notably in Chicago in recent days.The vice-president’s ominous remarks came days after Trump referred to the Insurrection Act from the Oval Office, bluntly stating: “If I had to enact it, I would do that.” Military forces are forbidden from engaging in law enforcement duties on home soil.But under the Insurrection Act, which was signed in 1807, the president can deploy them domestically in cases of insurrection or rebellion, violence that is preventing the functioning of federal laws.The power was used during the 1960s civil rights movement during clashes over desegregation of the south but since then has been very rarely activated. The last time a president called on it was in 1992 when the governor of California requested military aid from George HW Bush in response to civil unrest in Los Angeles.In Sunday’s Meet the Press interview, Vance said Trump “hasn’t felt he needed to” invoke the Insurrection Act up to this point. But he confirmed that it was among the tactics being considered as the administration continues to be stymied in federal courts from deploying federalised national guard forces in Democratic-run cities.Federal courts have blocked the White House from using troops in Oregon and Illinois. On Thursday a federal judge prohibited the deployment of federalised national guard personnel in Chicago, admonishing the administration that she had “seen no credible evidence that there is a danger of a rebellion in the state of Illinois”.National guard troops have been sent into Illinois by the Trump administration from both Texas and California but under the temporary court order cannot be put out into the streets.Vance told NBC News that options such as the Insurrection Act were being considered because “there are places in Chicago where people are afraid to take their children … for fear of gun violence, for fear of gang drive-by shootings”.In a separate interview with This Week on ABC News, Vance said that Chicago had been given over to “lawlessness and gangs” and had a murder rate “that rivals the worst places in the third world”.In fact, violent crime has been falling at unprecedented rates in America’s biggest cities including Chicago over the past two years. Chicago is not in the top four large US cities with the highest murder rates – all of whom are in states controlled by Republicans.As Vance did the rounds of Sunday’s political talkshows, tension between the Trump administration and the Democratic states it is targeting exploded across TV screens. The vice-president was repeatedly asked by George Stephanopoulos on ABC News whether the Democratic governor of Illinois, JB Pritzker, had committed a crime that could see him being prosecuted by the Department of Justice as have several other of Trump’s “political enemies”.Vance skirted the question until he was pressed into saying: “He should suffer consequences. Whether he has violated a crime I would leave to the courts, but he has certainly violated his oath of office and that seems pretty criminal to me.”Pritzker responded to the veiled threat by accusing Vance of coming out with a “tidal wave of lies”. The governor told This Week that he was not intimidated by the prospect of prosecution as has befallen the former FBI director James Comey and the New York attorney general Letitia James, who have both been indicted in recent days.Pritzker said: “I am not afraid. Do I think he could do it? He might. But as I have said before, come and get me. I mean, you’re dead wrong, Mr President and Mr Vice-President, and I will stand up for the law and the constitution.”Raw emotions were widely on display across the TV studios as the federal government shutdown entered day 12. The Republican House speaker, Mike Johnson, told Fox News Sunday that the crisis had been orchestrated by Democratic leaders in Congress as a partisan move “so that they can prove to their Marxist base that they are willing to fight Trump”.He said that after eight attempts to reopen the government had all failed in votes in the Senate, the shutdown was causing “real pain for real people – and the Democrats don’t seem to care”.On the same program, the House minority leader, Hakeem Jeffries, denied that the Democratic stance was partisan. “We will sit down with anyone, any time, any place, go back to the White House, to have a bipartisan discussion about reopening the government,” he said.The Democrats’ aim, Jeffries added, was to “improve the quality of life of the American people and address the healthcare crisis that threatens tens of millions of people across the country”. More

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    ‘Cavalier and aggressive’: why are border agents flooding into US cities?

    Border patrol officers have become ubiquitous footsoldiers in Donald Trump’s mass deportation plan, and lawyers and human rights advocates worry that the agency is expanding its aggressive tactics into cities far from its conventional range.Led by Gregory Bovino, a particularly hardline Customs and Border Protection (CBP) sector chief from southern California, border patrol agents have become a daily presence in several major cities across the US.Earlier this month in Chicago’s Southwest Side, a border patrol shot a woman multiple times amid protests against the Trump administration’s militarized immigration raids in the city.This summer in Los Angeles, border agents on horseback swept through a public park downtown – riding alongside national guard troops and other agents in military vehicles. In southern California, videos of border patrol agents pinning down and beating 48-year-old landscaper ​​Narciso Barranco went viral.Agents have also made arrests in California’s agricultural Central Valley and at New York immigration courthouses. They have set up immigration checkpoints in Washington DC.Lawyers and human rights advocates say the agents, who are trained to block illegal entries, drug smugglers and human traffickers at the country’s borders, may be ill-suited to conduct civil immigration enforcement in urban communities.“The border patrol is certainly quite cavalier, and has been very aggressive historically as it goes about its enforcement responsibilities,” said César Cuauhtémoc García Hernández, a law professor at Ohio State University. They tend to do their work in rural places and isolated parts of the United States. And they generally are not trained in community interactions and policing.”View image in fullscreenUntil recently, the agency usually worked close to the southern US border – especially along the south-western border – though the department has long had the authority to conduct patrols more inland.Under a 1946 statute, Border Patrol agents have the ability to conduct warrantless searches within a “reasonable distance” – or up to 100 miles – from any international boundaries. Those boundaries include international land borders as well as coastlines – so in effect, their range encapsulates most US major cities – including LA, New York and Washington DC. Chicago falls within this 100-mile zone, because the Great Lakes are considered a maritime boundary.Nearly two-thirds of the US population lives within the zone.Still, García Hernández said, until recently, it was highly uncommon to see border patrol agents stray far from the south-western border.But now illegal border crossings are at a historic low, and the administration has deployed thousands of military personnel to the southern border, freeing up the Border Patrol, he said – ready and available as force multipliers in the administration’s deportation mission. The department currently has about 19,000 agents. Customs and Border Protection (CBP), which encompasses the Border Patrol, is about 60,000 strong – making it the largest law enforcement agency in the country.Immigration and Customs Enforcement (Ice), meanwhile, has about 5,500 immigration enforcement officers, plus an additional 7,000 agents tasked with investigating cross-border criminal activities. Though the agency is making a massive push to hire 10,000 more agents, that process is expected to take some time.It’s unclear exactly how many Border Patrol agents have joined up with Ice and other federal agents in raids targeting Chicago, Los Angeles and other big cities.DHS did not immediately respond to the Guardian’s query.As border agents stray away from their original mission, legal experts have raised concerns that they are bringing along with them a culture of combative enforcement. “CBP has a history of problematic treatment of people, in my opinion, perhaps worse than any other law enforcement agency,” said Deborah Anthony, a professor of legal studies at University of Illinois Springfield with an expertise in constitutional law and the legality of Border Patrol operations.The Border Patrol has long had “more leeway” with the US constitution’s fourth amendment’s protections against random and arbitrary stops and searches, Anthony said. They are able to set up checkpoints and, in some cases, roving patrols, she said – but these authorities are limited by law.Agents cannot pull people over without “reasonable suspicion” of an immigration violation, or search homes or vehicles without a warrant or probable cause.In recent deployments, however, agents appear to be flouting these restrictions. Earlier this month, Border Patrol agents, along with other federal agents, conducted a military-style immigration raid of an apartment complex in Chicago. Video evidence showed agents indiscriminately bursting through front doors.“All the evidence suggests there were egregious violations of rights, both in the treatment of people, in the lack of a warrant, in the breaking down of people’s doors, in what seems to be almost indiscriminate targeting of almost everyone in the building,” Anthony said.View image in fullscreenImmigrant advocates have had limited success in opposing this type of indiscriminate enforcement. In a January operation that took place shortly before Trump took office, plainclothes border agents poured into California’s Central Valley region, conducting random stops along the highway. In response, the ACLU sued the Border Patrol on behalf of the United Farm Workers union – and a federal district court found that the operation violated the fourth amendment.And in June a federal lawsuit from advocacy groups accused the Border Patrol, Ice and other agencies of violating rights by profiling street vendors, car-wash workers, day laborers and others, and making arrests without adequate cause – resulting in a temporary restriction against such enforcement in California and parts of the west coast.But proving such fourth amendment violations can be a big burden on advocates, said Anthony. And Border Patrol has a long history of aggressive enforcement tactics.“There’s evidence of everything from legal and constitutional violations to physical and sexual abuse and mistreatment, and very little recourse or accountability,” Anthony said. “Internal discipline within [the] Border Patrol is very problematic and that has been systematically the case for a long time now.”A 2023 report by the Washington Office on Latin America (Wola) and the Kino Border Initiative (KBI), migrant rights advocacy groups, detailed persistent human rights abuses without accountability within the agency. More

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    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