The Dictatorship

Allies seek to shield themselves from President Donald Trump’s tariffs

Published

5 months ago

February 4, 2026

Allies seek to shield themselves from President Donald Trump’s tariffs

WASHINGTON (AP) — Bullied and buffeted by President Donald Trump’s tariffs for the past year, America’s longstanding allies are desperately seeking ways to shield themselves from the president’s impulsive wrath.

U.S. trade partners are cutting deals among themselves —- sometimes discarding old differences to do so — in a push to diversify their economies away from a newly protectionist United States. Some European governments and institutions are reducing their use of U.S. digital services such as Zoom and Teams.

Central banks and global investors are dumping dollars and buying gold. Together, their actions could diminish U.S. influence and mean higher interest rates and prices for Americans already angry about the high cost of living.

Last summer and fall, Trump used the threat of punishing taxes on imports to strong-arm the European Union, Japan, South Korea and other trading partners into accepting lopsided trade deals and promising to make massive investments in the United States.

But a deal with Trump, they’ve discovered, is no deal at all.

The mercurial president repeatedly finds reasons to conjure new tariffs to impose on trading partners that thought they had already made enough concessions to satisfy him.

Just months after reaching his agreement with the EU, Trump threatened new tariffs on eight European countries for opposing his attempts to seize control of Greenland from Denmark – though he quickly backed down. And last month, he said he’d slap 100% tariffs on Canada for breaking with the United States by agreeing to reduce Canadian tariffs on Chinese electric vehicles.

“Our trading partners are discovering that the largely one-sided deals they concluded with the U.S. provide little protection,’’ said former U.S. trade negotiator Wendy Cutler, senior vice president at the Asia Society Policy Institute. “As a result, trade diversification efforts by our partners are on turbo charge, looking to reduce dependence on the U.S.’’

Trump supporters such as Paul Winfree, who was deputy director of the White House Domestic Policy Council during Trump’s first term, are wary of the relative decline in U.S. Treasury note holdings by foreign central banks and view the national debt as a vulnerability rivals would like to exploit.

Winfree, CEO of the Economic Policy Innovation Institute, a think tank, said that some of Trump’s advisers do not feel America has fully benefited from the dollar’s status as the world’s dominant currency.

“But the fact remains that every other country is jealous of our status, and many of our adversaries would love to challenge the U.S. dollar and Treasuries,” he said.

White House spokesman Kush Desai insists America’s standing on the global stage has not been diminished.

“President Trump remains committed to the strength and power of the U.S. Dollar as the world’s reserve currency,” he said.

India and the EU clinch a long-awaited deal

The most eye-opening deal so far has been the pact announced last week between the 27-country EU and India, the world’s fastest growing major economy. Negotiators had been at it for nearly two decades before they closed the agreement.

Likewise, an EU trade deal announced two weeks ago with the Mercosur nations of South America took a quarter century of negotiation. It will create a free-trade market of more than 700 million people.

“Some of these deals have been in the works for quite some time,’’ said Maurice Obstfeld, a senior fellow at the Peterson Institute for International Economics and former chief economist at the International Monetary Fund. “The pressure from Trump made them more eager to accelerate the process and reach agreement.’’

EU exporters were jubilant over the India deal. VDMA, a group of European machinery and plant engineering companies, welcomed lower Indian tariffs on machinery.

“The free trade agreement between India and the EU brings much needed oxygen to a world increasingly dominated by trade conflicts,” VDMA’s executive director, Thilo Brodtmann, said in a statement. “With this agreement, Europe is sending a clear signal in favor of rules-based trade and against the law of the jungle.”

‘We have all the cards’

On Monday, Trump went on social media to announce his own deal with India. The U.S., he posted, would reduce tariffs on Indian imports after India agreed to stop buying oil from Russia, which has used the sales to fund its four year war in Ukraine.

The president said that India would reduce its tariffs on American products to zero and buy $500 billion worth of American products. Trade lawyer Ryan Majerus, a partner at the King & Spalding and a trade official in the Biden administration and during Trump’s first term, said that businesses and legal analysts were awaiting official White House documents spelling out details of the deal.

Trump is banking on there being limits to other countries’ ability to pull away from the United States. America has the world’s biggest economy and consumer market. “We have all the cards,’’ Trump told Fox Business this month.

Countries like South Korea, dependent on America’s market and military protection, can’t afford to ignore Trump’s threats. On Monday, for example, the president said he was increasing tariffs on South Korea goods because the country’s legislature has been slow to approve the trade framework announced last year. On Tuesday, the country’s Finance Ministry responded by saying its chief, Koo Yun-cheol, would push lawmakers to quickly approve a bill to invest $350 billion as promised in the agreement.

“The U.S was trying to identify a counterpart that would find it difficult to refuse U.S. demands outright, given the depth of its economic and security ties,” said Cha Du Hyeogn, an analyst at South Korea’s Asan Institute for Policy Studies.

Or consider Canada, which sends 75% of its exports to its southern neighbor. “Canada and U.S. will always be tightly linked through international trade,” said Obstfeld, a professor at the University of California, Berkeley. “We’re talking about adjustments more or less on the margin.’’

But the world’s growing rejection of Trump’s policies is already having an impact, driving down the value of the dollar, long the currency of choice for global commerce, to its lowest level since 2022 last week versus several competing currencies.

Syracuse University political scientist Daniel McDowell, author of the book “Bucking the Buck: U.S. Financial Sanctions and the International Backlash against the Dollar,” sees a vibe shift under Trump: Foreign countries and investors want to reduce their exposure to the United States, which has moved from a source of security and stability to a driver of instability and unpredictability under Trump.

“Trump has shown that he is willing to use foreign countries’ economic dependence on the U.S. as leverage against them in negotiations,” McDowell said. “As global perceptions of the US are changing, it is only natural that investors — public and private alike — are reconsidering their relationship with the dollar.”

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Kurtenbach reported from Bangkok. Associated Press videographer Yong Jun Chang in Seoul and AP Business Writer Kelvin Chan in London contributed to this report.

The Dictatorship

Judge halts executive order seeking to create federal voter list…

Published

22 minutes ago

June 26, 2026

Blue Light Newsroom

Judge halts executive order seeking to create federal voter list…

BOSTON (AP) — A federal judge on Thursday halted President Donald Trump’s executive order that sought to create a federal voter list and limit who can receive a mail ballot.

U.S. District Court Judge Indira Talwani, who was nominated by Democratic President Barack Obama, sided with a coalition of nearly two dozen states that challenged the Republican president’s order in granting a summary judgment. Her ruling applies to this year’s midterm election cycle.

Plaintiffs argued in two lawsuitsboth filed in federal court in Boston, that Trump’s order should be found unconstitutional because the states and Congress, not the president, have the power to set election rules. The judge agreed, saying in her ruling that the provisions of Trump’s order seeking to create a federal list of eligible voters and using the U.S. Postal Service to determine who can receive a mail ballot are “legally void” because they “unconstitutionally violate the separation of powers.”

It was the second ruling in as many days against executive orders Trump has signed seeking oversight of the nation’s elections. A separate ruling Wednesday prohibited an executive order he had signed last year that would have required people to show documents proving their citizenship when registering to vote.

Order targeted mail voting, administration likely to appeal

Arizona Attorney General Kris Mayes, whose state was among the plaintiffs, celebrated the court’s decision.

“Millions of independents, Republicans and Democrats across Arizona have voted by mail for decades,” she said in a statement, noting that nearly 80% of ballots in the state are cast by that method.

Mayes, a Democrat, singled out military families, voters in the state’s rural expanses and Native Americans who cast ballots from tribal lands.

“Donald Trump’s executive order targeted all of these voters,” she said. “But today, the courts affirmed what the Constitution makes clear: States run their elections, not the President.”

AP AUDIO: Federal judge halts Trump’s election executive order seeking to create a federal voter list

AP Washington correspondent Sagar Meghani reports President Trump has suffered a legal setback for a second straight day in his bid to get oversight of the nation’s elections.

The White House stood by Trump’s executive order and indicated the administration would appeal the ruling. The order, said spokeswoman Abigail Jackson, “lawfully protects our elections, and we are confident that we will ultimately prevail in its implementation.”

The administration, in its motions to dismiss the lawsuits challenging the order, argued that the motions were premature and that plaintiffs lacked the legal basis to bring their claim based on the Administrative Procedure Act, which governs how federal agencies develop and issue regulations.

But in an interim order before Thursday’s ruling, Talwani said the motions pertaining to this year’s election cycle were relevant: “In light of the EO’s specific deadlines over the next three months, and the reality that elections will be occurring throughout this period with the November 3, 2026 midterm occurring in just five months, postponing judicial review is impracticable and may inflict significant hardship on Plaintiffs,” she wrote. That order denied the Trump administration’s motion to dismiss the challenges.

Executive order sought to give Postal Service a central role in elections

Trump’s executive order, the second one aimed at elections during his second term, comes as he continues to raise the specter of widespread voting by noncitizens as a reason to change election rules. But states already have detailed processes aimed at keeping their voter rolls accurate, and voting by noncitizens has been shown to be rare. It also is a felony that can be punishable by deportation.

Trump issued his second order in March after a bill he supported to overhaul voting stalled in Congress. The order would have had the federal government — through the director of U.S. Citizenship and Immigration Services and the commissioner of the Social Security Administration — create a “state citizenship list” of eligible voters. It then directed the U.S. Postal Service to deliver mail ballots only to those on the list.

Election officials argued that it was ripe for abuse and could cause chaos.

The Postal Service has published a proposed rule required by Trump’s executive order in the Federal Register. Among other things, the rule would not apply to primary elections or overseas ballots.

Postal Service workers have pushed back against the order, saying they are not equipped to determine who is eligible to vote in each state. After Trump issued his order last spring, the National Rural Letter Carriers’ Association said forcing its members into such a role “risks politicizing one of the nation’s most trusted public institutions.”

Maine Secretary of State Shenna Bellows, a Democrat whose state was among the plaintiffs, said the executive order illustrated how Trump was attempting to “abuse power in previously unthinkable ways” to interfere in elections.

She said it “strains credulity” to think the U.S. Postal Service could set up a workable system for pre-screening individual voters to determine whether they would be allowed to vote by mail, adding that it would be “a shocking violation of American constitutional rights.”

The Postal Service did not immediately respond Thursday to requests for comment.

Trump’s second election executive order faces multiple legal challenges

The lawsuit seeking summary judgment was filed by Democratic attorneys general representing 22 states and the District of Columbia. Also signing on were attorneys representing Democratic Gov. Josh Shapiro of Pennsylvania, which has a Republican attorney general.

The states also told the court that the move imposes a costly burden on election officials to comply and would spread fear about the possibility of prosecution. Stephen Pezzi, a lawyer for the Trump administration, had argued that no one would be prosecuted for violating the order.

The other lawsuit filed in Talwani’s court was by the League of Women Voters and other voting rights groups, which have sought a preliminary injunction against the executive order.

In yet another lawsuit filed against the executive order, a federal judge in Washington, D.C., in May agreed with the Trump administration that it was too early to block the order because it had yet to be implemented. That lawsuit was brought by Democratic and civil rights groups, which have appealed.

Since his 2020 presidential election loss to Democrat Joe BidenTrump has groundlessly claimed mail voting is rife with fraud and has launched a federal investigation into that year’s vote, even though repeated audits and investigationsincluding ones run by Republicansfound it was free of widespread fraud. Trump also has said he wants to “take over” election administration in Democratic areas.

___

Barrow reported from Atlanta and Hanna from Topeka, Kansas.

The Dictatorship

California voters to decide billionaire tax measure in November

Published

12 hours ago

June 26, 2026

Blue Light Newsroom

California voters to decide billionaire tax measure in November

Jun. 25, 2026, 10:25 PM EDT

California voters will consider a controversial proposal in November to temporarily raise taxes on billionaires after the labor union backing the measure announced Thursday it would forge ahead despite pressure from critics to withdraw it.

The proposal, backed by the Service Employees International Union Healthcare Workers West, would impose a one-time 5% tax on individuals whose net worth exceeds $1 billion and who were living in the state as of Jan. 1, 2026. The goal is to generate $100 billion in revenue, mainly to fund the state’s Medicaid system after federal cuts.

“I am all in on this,” union President Dave Regan said on a Zoom call, adding that opponents of the proposal are “totally out of touch.”

Democratic Gov. Gavin Newsom and many traditional allies of the union oppose the measure. They argue it is a temporary fix for an ongoing problem and that it would push the ultrawealthy to leave the state, taking the money they would contribute in income taxes with them. Newsom, who is considering a presidential run as he prepares to leave office in January, has generally opposed tax increases during his time as governor.

A coalition of healthcare, education and housing groups — including the California Medical Association and California School Boards Association — banded together last week to fight the tax.

“The dangerous wealth tax directly threatens vital funding for education and schools, healthcare and clinics, public safety, and infrastructure projects by making California’s revenue even more volatile,” the coalition said in a statement.

Brian Brokaw, a Newsom political adviser who is leading a political committee opposing the tax, said it would “make California’s biggest challenges worse.”

“Driving away the state’s sustainable tax base for a one-time grab is bad policy and an even worse deal for 40 million Californians who will be left holding the bag,” he said in a statement.

Under the proposal, the state would spend the money generated from the tax over multiple years. The nonpartisan Legislative Analyst’s Office estimates that the proposal would generate tens of billions of dollars in the first few years, but that income tax revenues would subsequently decline by hundreds of millions of dollars annually.

Many of the Silicon Valley tech moguls who oppose the measure have already moved their assets to other states or threatened to do so to avoid the possible tax. They have also spent millions to try to defeat it.

Since the proposal was announced in October, Google co-founder Sergey Brin has donated $82 million to a political committee called Building a Better California that backs a variety of initiatives designed to blunt the billionaire tax proposal. It has raised more than $118 million, counting Brin’s contributions, from fewer than a dozen donors.

California relies on its top 1% of earnersfor nearly half of its personal income tax revenue.

The union offered to scale back its proposal last week, asking Newsom to back a 2% tax on billionaires instead. But the governor’s office said the lower rate didn’t change his stance.

The proposed tax may have piqued the interest of many Democrats because it comes at a time when they are particularly concerned about affordability, income inequality and federal cutbacks to government programs, said Martin Gilens, a political science professor at the University of California, Los Angeles.

“There’s kind of a perfect storm that sort of bolsters preexisting inclinations to be sympathetic to the idea of raising taxes on the well-to-do,” he said.

But there’s a catch. Support for ballot initiatives often declines as the election nears, and if the measure passes, it’s likely to face legal challenges, Gilens said.

The Dictatorship

Flattery, secrecy and chaos: Bill Pulte’s first week as intel chief

Published

12 hours ago

June 26, 2026

Blue Light Newsroom

Flattery, secrecy and chaos: Bill Pulte’s first week as intel chief

Jun. 25, 2026, 7:15 PM EDT

Since taking office one week ago, Bill Pulte, the acting director of national intelligence, has busied himself on social media posting flattering photos of President Donald Trump, trivia about a former counterintelligence agent and praising his current staff.

What the Trump loyalist with no intelligence experience has not done is address the public about his plans, or calm the unease and confusion inside the Office of the Director of National Intelligence, which is being described by top officials as “chaotic” amid firings of senior personnel with threats of more to come.

One image posted to the official X account of the Office of the Director of National Intelligence, apparently artificial intelligence-generated, features Trump raising a clenched fist in the air with two B-2 stealth bombers in the sky behind him. Another is an image of the president, his fist clenched, glowering as he stands behind the Oval Office’s Resolute Desk.

In another post, Pulte, who was expected to gut the workforce of the National Counterterrorism Center, instead declared the staff there “true professionals and American patriots” after he said he spent time with them, adding “it is a privilege to work beside them.”

And in an apparent attempt at levity, Pulte reposted a message reminding Americans that Tuesday was “National Typewriter Day” and informing them of the role that a former Army counterintelligence agent played.

“Fun CI fact,” the post reads. “Former Army CI Special Agent Leroy Anderson composed ‘The Typewriter’ on October 9, 1950.”

But Pulte’s arrival has sparked anxiety and fear among the office’s workforce, three former U.S. intelligence officials told MS NOW, granted anonymity to address a sensitive topic.

They said that a half dozen political appointees were removed from their posts and several dozen staffers were sent back to their home intelligence agencies. Beyond that, little else is known about Pulte’s plans.

Rep. Jim Himes, D-Conn., the top Democrat on the House Intelligence Committee, told MS NOW that his requests for more information from the office, known by the acronym ODNI, have been rebuffed.

“I’ve been calling over there all day and can’t get my calls returned,” said Himes.

He later said, “I spoke directly to their office of congressional affairs. They said they had nothing for me.”

“It seems like it’s totally chaotic at the Office of the Director of National Intelligence,” Sen. Mark Warner, D-Va., the ranking Democrat on the Senate Intelligence Committee, said on a podcast Wednesday. “There was word that there was going to be firings and then he said he changed his mind. We don’t know.”

Marc Polymeropoulos, a former senior CIA official and now an MS NOW contributor, said that staff in the intelligence community do not know what to think.

“Everyone is in the same boat and unsure of what is going on,” he said. “That said, there is no love lost for the DNI, as many believe that there is redundancy that does need to be cut.”

The other former U.S. intelligence officials said they agree that the Office of the Director of National Intelligence is in need of reform. The agency was created after a lack of information sharing among U.S. intelligence agencies played a role in the failure to stop the Sept. 11, 2001, attacks. ODNI’s mission is to ensure that the country’s now 18 different intelligence agencies share information with one another.

But the former intelligence officials said Pulte is patently unqualified to design or carry out those reforms.

“As with many things Trump alights upon, there is a sliver of truth here but he goes about addressing it in the worst possible way,” a former senior U.S. intelligence official told MS NOW, granted anonymity over concerns of retaliation. “But mass firings without any kind of sense of what you are trying to accomplish is addressing it in the most ham-handed way.”

That former official, as well as Warner and Himes, have said they fear that Pulte’s mission is to use his position as the nation’s top intelligence official to help Trump interfere in the midterm elections in November.

Pulte, who simultaneously serves as the Trump administration’s top federal housing official as head of the Federal Housing Finance Agency, used government mortgage information to file several criminal referrals against Democrats whom Trump considered enemies, including Sen. Adam Schiff of California and New York State Attorney General Letitia James. None of Pulte’s referrals have resulted in criminal convictions.

One fear expressed by Warner and some former intelligence officials is that Pulte may try to falsely claim that his office has found evidence that foreign governments are secretly funding Democratic candidates.

One way he could do that, they say, is by falsely claiming foreign actors have hacked U.S. voting machines and altered vote totals in favor of Democrats. And Pulte and FBI agents could seize voting machines, ballots and election records in November — as Gabbard did in Fulton County, Georgia, last year at Trump’s behest — as part of voter fraud investigations that please the president.

“I have to tell you, I was extraordinarily concerned about the former director of national intelligence, Tulsi Gabbard, interfering in our election,” Warner told NPR earlier this month. “The concerns I had with Tulsi Gabbard now, upon reflection, look small versus the concerns I have with Bill Pulte.”

David Rohde is the senior national security reporter for MS NOW and a two-time winner of the Pulitzer Prize for International Reporting. Previously he was the senior executive editor for national security and law for NBC News.