China tariff begins today after Mexico, Canada tariffs averted – National & International News – TUE 4Feb2025

 

 

China tariff begins today after Mexico, China tariffs averted.

Over 90% of US airport control towers are understaffed.

Musk, Trump stir international turmoil with USAID shutdown.

 

China tariff begins today after Mexico, Canada tariffs averted

Starting today, a further 10% tariff on goods from China will be implemented on top of already existing tariffs. The White House characterizes this as a response to China’s failure to halt the flow of precursor chemicals for fentanyl. These chemicals are brought from China and processed in labs in the Americas to make fentanyl. 

China says it has taken wide-ranging steps to crack down on the production of these precursor chemicals and their export at the behest of the Biden administration. 

A 10% tariff on Chinese goods will affect a wide range of consumer products in the US, including furniture, toys, appliances, electronic items, and clothing. China has also threatened retaliatory tariffs should US tariffs go into effect. The tariffs will also apply to products purchased by Americans from popular Chinese retailers like Temu and Shein after the Trump administration ended a tariff exemption for Chinese products valued under $800.

China has already countered by placing a 15% tariff on US coal and liquefied natural gas. Other US products including crude oil, farm equipment, and vehicles will be hit with a 10% tariff. Possibly even more damaging will be new export controls on rare earth minerals. China is a key global source of rare earths that are necessary to create certain types of batteries, computer chips and other instruments the US needs to fuel its tech boom.

The Chinese government appears to be open to talks with President Trump to find an off ramp. White House press Secretary Karoline Leavitt says that President Trump and President Xi Jinping will hold their first talks since Trump’s inauguration sometime this week. 

Mexico, Canada tariffs temporarily averted

A potential trade war with two of America’s neighbors and biggest trading partners was temporarily averted with last minute deals. Both Mexican president Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau reached agreements with President Trump, delaying the implementation of tariffs for at least 30 days. For now, these accords have held off on punishing tariffs and retaliatory tariffs that would have caused businesses and consumers in all three countries to suffer.

Canada and Mexico will each further militarize their borders by sending thousands of troops to patrol for illegal migration into the US. Trump, in return, assured Mexico’s Sheinbaum that his administration word do more to halt the flow of US guns into Mexico, something both Sheinbaum and she previous Mexican President have long called for.

Both Mexico and Canada have also made commitments on trying to slow the flow of fentanyl into the US. Less than 1% of the fentanyl entering the US comes from Canada. Nevertheless, our northern neighbor will appoint a “Fentanyl czar”. 

Most of the fentanyl in the US comes from Mexico, not through illegal immigration but through official checkpoints and border crossing. About 80% of those caught with fentanyl at border checkpoints were US citizens. This makes it unlikely that further militarization of the border will be effective in halting the flow of fentanyl into the US.

Over 90% of US airport control towers are understaffed 

A CBS analysis of data from the Federal Aviation administration shows that 90% of US air traffic control towers are understaffed. The standards for staffing are set by a working group that includes representation from the FAA and the flight controllers’ union. Nationwide, there is a shortage of about 3,000 air traffic controllers.

Last Wednesday, an American eagle jet collided with an Army Blackhawk helicopter near Reagan Washington National airport (call sign DCA) in Washington DC. In that incident, 64 passengers and crew on the jet and the three soldiers in the helicopter were killed. 

Shortly after that tragedy, it came to light that one air traffic controller at DCA was performing the job of two people, monitoring helicopter traffic in the area as well as regional flights coming into and out of the airport. At this point, there is nothing to suggest that the DCA air traffic controller is at fault for the incident. While the investigation is still in its preliminary stages, as of right now, the current focus seems to be on the actions of the helicopter pilot.

Just two days later, a small medevac plane carrying a sick 5-year-old child and five people accompanying her crashed into a residential neighborhood in North Philadelphia. That crash killed all six people on the plane, one person on the ground, and seriously injured 22 others.

 

Musk, Trump stir international turmoil with USAID shutdown

President Trump and Elon Musk have shutdown the US Agency for International Development (USAID), the independent agency responsible for funding humanitarian and security programs overseas. The plan is to shut down the organization and re-establish a similar program under the authority of the US State Department. Newly-appointed Secretary of State Marco Rubio says the shutdown will enable a program-by-program assessment of what projects are being funded overseas and whether they make “America safer, stronger or more prosperous”.

Legally speaking, Trump does not have the authority to unilaterally shut down the agency without approval from Congress. Regardless, many Capitol Hill Republicans are backing the move. Senate Democrats are not happy and are holding up some of Trump’s State Department nominees as a result. 

USAID spent about $40 billion on overseas programs in fiscal year 2022. Total foreign aid makes up less than 1% of the US operating budget, though polling shows Americans are likely to overestimate it at over 30%.

Why it matters

President Kennedy set up USAID at the height of the Cold War as a means of countering the international influence of the Soviet Union. The agency has seen been a key source of America’s “soft power” abroad. This helps to not only maintain internal stability in vulnerable economies throughout the world, it boosts America’s image abroad and helps to maintain friendly and stable relationships with recipient countries. The aid flowing out also helps to employ tens of thousands of aid workers abroad and provides vital services to poverty-stricken populations, including nutritional aid, education and medical care. USAID, in short, is one of the US’s most powerful propaganda tools, and has provided enormous benefits in our foreign relations at a bargain price.

While the Soviet Union is long gone, other rival power centers such as China have been working on growing their international influence. China’s “Belt and Road” initiative has invested billions across the world, but especially in Africa, funding education and infrastructure projects. In return, China gets favorable treatment for its firms operating internationally.

USAID cuts will have an impact in many regions of the world, but Sub-Saharan Africa will likely be most gravely affected. This region is as rich in resources, including oil and rare earth minerals, as it is troubled. Currently, millions are displaced due to an over two-year-long civil war in Sudan. Conflict has also recently arisen in the mineral-rich Democratic Republic of Congo.

Without USAID to turn to, this creates an opening for China to become a key benefactor in this region and thus reap the rewards.