Economy

The most potent attack ad of Donald Trump’s comeback campaign seemingly ran on a loop during the final weeks before the 2024 election. Assailing rights for transgender people, its punch line indeed delivered a punch: “Kamala Harris is for they/them. President Trump is for you.”

2025: Promise broken. Back in office, the president has shown that the only pronouns he really recognizes are the first-person kind: me, myself and I.

A year into Trump 2.0, those self-regarding pronouns are now firmly affixed as the bywords of his presidency, on matters major and mundane. They might as well be mounted in gold in the Oval Office, in fonts so large as to not get lost amid all the bling he’s installed there. Asked in October just who was to be honored by Trump’s planned Arc de Triomph-like monument near Arlington Cemetery, the president was quick: “Me.”

To an extent that’s shocked even critics long convinced of his sociopathic narcissism, Trump has fashioned a government that’s of Trump, by Trump and for Trump. “I run the country and the world,” he boasted in April. Trump thinks “there’s nothing he can’t do. Nothing, zero, nothing,” his White House chief of staff, Susie Wiles, told Vanity Fair, as reported in two articles last month that signaled her own unease with Trump’s ongoing vengeance against his political enemies; his clemency for even the most violent rioters of Jan. 6, 2021; the pain of his erratic tariffs, too-cruel migrant roundups and tragic shutdown of USAID’s humanitarian aid; his stonewalling of the Jeffrey Epstein files that candidate Trump promised to release; and the foibles of his slavish Cabinet.

If Trump strutted as the center of the universe in 2025 — unchecked by advisors like Wiles or by a cowed Republican-controlled Congress, the Supreme Court and corporate chieftains — buckle up for 2026. It marks the 250th birthday of America’s independence, and our self-appointed master of ceremonies is focused on the festivities that he’ll star in not only on July 4th but all year long. One of his first acts as president was to create a White House task force with himself as chair, of course, to plan semiquincentennial events, ignoring an eight-year-old commission created by Congress for that purpose. Coming soon: A (possibly illegal) commemorative $1 coin with Trump’s image from the U.S. Mint.

Never mind that 2026 starts with a big spike in health insurance costs for tens of millions of Americans, including many Trump voters. The president who campaigned on bringing down the costs of living has stood in the way of a legislative remedy to the Dec. 31 expiration of healthcare premium subsidies, repeatedly mouthing his years-old promise that he’ll propose a cheaper alternative within weeks.

But here’s how 2026 will end: with midterm elections in November that loom as a referendum on whether the Trump Republican Party should keep control of Congress. The early betting is that no, it won’t. Especially after another year of Trump grandstanding, and his party’s genuflecting.

In good times, Trump’s garish self-regard might be tolerable to voters, even comical. But these aren’t good times, hardly the “golden age” Trump announced in his inaugural address last January — except for him and the wealthy hangers-on at his seemingly endless round of parties in the White House and at Mar-a-Lago. The Gatsby-themed Halloween party at Trump’s Florida resort was especially rich, pun intended, coming as it did hours before federal food aid for 42 million Americans expired amid a government shutdown he’d done nothing to avert.

Days later, voters gave a shellacking to Republicans in various states’ 2025 off-year elections, which is a good omen for the same result nationwide in 2026. There are other signs. On Tuesday, a new Gallup poll showed three out of four Americans were dissatisfied with “the way things are going in the United States.” Trump’s approval rating was just 36% in Gallup’s poll in early December, his lowest reading of the past year, and nearly equal to his all-time low after the Jan. 6 insurrection. Averages of various polls show Trump with negative ratings on his handling of immigration, the economy, trade and tariffs, and inflation — all issues that helped get him reelected.

But go ahead, Mr. President. Keep talking about how great you are. You’re a legend in your own time and mind.

Trump’s tone-deafness has become the great mystery of U.S. politics, for both parties, especially considering that he slammed President Biden for bragging about the economy’s post-pandemic recovery when Americans weren’t feeling it.

As Americans struggle to buy a home or to afford its upkeep, Trump has gilded the People’s House (see the New York Times’ recent 3-D recreation of the Oval Office for full, nauseating effect) and transformed the bathroom adjoining the Lincoln Bedroom in marble and gold. Having demolished the East Wing to make way for a gargantuan ballroom where Marie Antoinette would be at home, financed by favor-seeking billionaires and corporations, Trump told reporters on Tuesday that it would have to be bigger than he’d first planned because “we’re gonna do the inauguration” there.

What? The man who’s supposed to be leaving office on Jan. 20, 2029, is picking the new location for the next presidential inauguration? Hmmm.

Even before he’s been in office a year, Trump has put his brand on two Washington buildings, including the nation’s 60-year-old cultural center named by law as a memorial to an assassinated president. The Kennedy Center (no, I will not call it by Trump’s name) will have marble armrests; Trump took to social media on the day after Christmas to show off samples. Meanwhile, he’s refurbishing a royal jet from Qatar, a “palace in the sky.”

Trading on his power in unprecedented ways, Trump was a “crypto billionaire” by May, the Wall Street Journal reported, and in August the New Yorker estimated that he’d profited in office by at least $3.4 billion through crypto and licensing deals.

No, Trump is not for you. He’s for he/him.

Bluesky: @jackiecalmes
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The United States Department of the Treasury has issued a new round of sanctions aimed at isolating Venezuela’s oil industry, as part of President Donald Trump’s pressure campaign against the South American country.

The sanctions announced on Wednesday target four companies and their associated oil tankers, which are allegedly involved in transporting Venezuelan oil.

Trump has claimed that Venezuelan leader Nicolas Maduro leads a so-called “narco-terrorist” government that seeks to destabilise the US, a charge repeated in the latest sanctions announcements.

“Maduro’s regime increasingly depends on a shadow fleet of worldwide vessels to facilitate sanctionable activity, including sanctions evasion, and to generate revenue for its destabilizing operations,” the Treasury said on Wednesday.

Petroleum is Venezuela’s primary export, but the Trump administration has sought to cut the country off from its international markets.

Wednesday’s notice accuses four tankers – the Nord Star, the Rosalind, the Valiant and the Della – of helping Venezuela’s oil sector to circumvent existing sanctions, thereby providing the “financial resources that fuel Maduro’s illegitimate narco-terrorist regime”.

“President Trump has been clear: We will not allow the illegitimate Maduro regime to profit from exporting oil while it floods the United States with deadly drugs,” said Treasury Secretary Scott Bessent.

“The Treasury Department will continue to implement President Trump’s campaign of pressure on Maduro’s regime.”

Claims on Venezuelan oil

The sanctions come a day after Washington imposed sanctions on a separate Venezuelan company it says assembled drones designed by Iran.

In recent months, the Trump administration has cited several motives for ratcheting up pressure against Venezuela, ranging from immigration to Maduro’s contested election in 2024.

Trump, for instance, has framed the pressure campaign as a means of stemming the trade of illegal drugs, despite Venezuela exporting virtually none of the administration’s main target, fentanyl.

Critics have also accused Washington of seeking to topple Maduro’s government to take control of the country’s vast oil reserves.

Trump officials have fuelled those suspicions with remarks seeming to assert ownership over Venezuela’s oil.

On December 17, a day after Trump announced a “total and complete blockade” of sanctioned oil tankers entering and leaving Venezuela, his top adviser, Stephen Miller, claimed that the US “created the oil industry in Venezuela”.

He suggested that the oil was stolen from the US when Venezuela nationalised its petroleum industry, starting in 1976.

That process accelerated after the 1998 election of socialist President Hugo Chavez, who reasserted state control over Venezuela’s oil sector, ultimately leading to the seizure of foreign assets in 2007.

That “tyrannical expropriation” scheme, Miller alleged, “was the largest recorded theft of American wealth and property”.

Still, one major US oil company, Chevron, continues to operate in the country.

Trump has echoed Miller’s claims, writing online that the US “will not allow a Hostile Regime to take our Oil, Land, or any other Assets”.

He added that all of those assets “must be returned to the United States, IMMEDIATELY”.

Military build-up in the Caribbean

In recent months, the Trump administration has tightened its focus on Venezuela’s oil industry, taking a series of military actions against tankers.

On December 10, the administration seized its first tanker, the Skipper, followed by a second seizure 10 days later.

The US military has reportedly been pursuing a third tanker as it crosses the Atlantic Ocean.

The attacks on the oil tankers come several months after the US began surging aircraft, warships and other military assets to the Caribbean region along Venezuela’s coast.

Since September 2, the US military has conducted dozens of bombing campaigns against alleged drug-smuggling boats in international waters in the Caribbean Sea and eastern Pacific, in what rights groups call extrajudicial killings.

More than 100 people have been killed, and the administration has offered scant legal justification for the attacks.

On Monday, Trump told reporters that the US had struck a “dock area” in Venezuela he claimed was used to load the alleged drug boats.

The dock bombing is believed to be the first of its kind on Venezuelan soil, though Trump has long threatened to begin attacking land-based targets.

While the administration has not officially revealed which agency was behind the dock strike, US media has widely reported it was conducted by the Central Intelligence Agency (CIA).

Settlement comes after US Federal Trade Commission accused the entertainment giant of unlawfully collecting children’s data.

Disney has agreed to pay $10m to settle allegations that it breached child privacy laws in the United States, authorities have said.

A federal court approved the settlement to resolve allegations brought by the US Federal Trade Commission, the Department of Justice said on Tuesday.

The order also requires Disney to operate its YouTube channel in accordance with data-protection rules and establish a programme to ensure future compliance.

Disney had agreed to settle the claims brought by the US antitrust watchdog in September.

The civil case stems from allegations that Disney collected children’s personal data without parental consent via its videos on YouTube.

Antitrust officials alleged that Disney had wrongly designated more than 300 YouTube videos, including content from The Incredibles, Toy Story, Frozen, and Mickey Mouse, as not being aimed at children.

YouTube requires content creators to designate videos as “Made for Kids” or “Not Made for Kids” to comply with the Children’s Online Privacy Protection Rule.

Under the rule, companies in the US are prohibited from collecting data from children below 13 without parental notification.

Other major companies that have paid settlements under the rule, which has been amended several times since its enactment in 2000, include Google and Microsoft.

Disney did not immediately respond to a request for comment.

“The Justice Department is firmly devoted to ensuring parents have a say in how their children’s information is collected and used,” Assistant Attorney General Brett A Shumate said in a statement.

“The Department will take swift action to root out any unlawful infringement on parents’ rights to protect their children’s privacy.”

Disney, which has its headquarters in Burbank, California, is one of the world’s largest entertainment companies, with revenue for the fiscal year 2025 reaching $94.4bn.

What comes next is a mystery, but I’d like to share a note of appreciation as 2025 fades into history.

If you came to Greater Los Angeles from Mexico, by way of Calexico, Feliz Navidad.

If you once lived in Syria, and settled in Hesperia, welcome.

If you were born in what once was Bombay, but raised a family in L.A., happy new year.

I’m spreading a bit of holiday cheer because for immigrants, on the whole, this has been a horrible year.

Under federal orders in 2025, Los Angeles and other cities have been invaded and workplaces raided.

Immigrants have been chased, protesters maced.

Livelihoods have been aborted, loved ones deported.

With all the put-downs and name-calling by the man at the top, you’d never guess his mother was an immigrant and his three wives have included two immigrants.

President Trump referred to Somalis as garbage, and he wondered why the U.S. can’t bring in more people from Scandinavia and fewer from “filthy, dirty and disgusting” countries.

Not to be outdone, Homeland Security chief Kristi Noem proposed a travel ban on countries that are “flooding our nation with killers, leeches and entitlement junkies.”

The president’s shtick is to rail mostly against those who are in the country without legal standing and particularly those with criminal records. But his tone and language don’t always make such distinctions.

The point is to divide, lay blame and raise suspicion, which is why legal residents — including Pasadena Mayor Victor Gordo — have told me they carry their passports at all times.

In fact, thousands of people with legal status have been booted out of the country, and millions more are at risk of the same fate.

In a more evolved political culture, it would be simpler to stipulate that there are costs and benefits to immigration, that it’s human nature to flee hardship in pursuit of better opportunities wherever they might be, and that it’s possible to enact laws that serve the needs of immigrants and the industries that rely on them.

But 2025 was the year in which the nation was led in another direction, and it was the year in which it became ever more comforting and even liberating to call California home.

The state is a deeply flawed enterprise, with its staggering gaps in wealth and income, its homelessness catastrophe, housing affordability crisis and racial divides. And California is not politically monolithic, no matter how blue. It’s got millions of Trump supporters, many of whom applauded the roundups.

But there’s an understanding, even in largely conservative regions, that immigrants with papers and without are a crucial part of the muscle and brainpower that help drive the world’s fourth-largest economy.

That’s why some of the state’s Republican lawmakers asked Trump to back off when he first sent masked posses on roundups, stifling the construction, agriculture and hospitality sectors of the economy.

When the raids began, I called a gardener I had written about years ago after he was shot in the chest during a robbery attempt. He had insisted on leaving the hospital emergency room and going back to work immediately, with the bullet still embedded in his chest. A client had hired him to complete a landscaping job by Christmas, as a present to his wife, and the gardener was determined to deliver.

When I checked in with the gardener in June, he told me he was lying low because even though he has a work permit, he didn’t feel safe because Trump had vowed to end temporary protected status for some immigrants.

“People look Latino, and they get arrested,” he told me.

He said his daughter, whom I’d met two decades ago when I delivered $2,000 donated to the family by readers, was going to demonstrate in his name. I met up with her at the “No Kings” rally in El Segundo, where she told me why she wanted to protest:

“To show my face for those who can’t speak and to say we’re not all criminals, we’re all sticking together, we have each other’s backs,” she said.

Mass deportations would rip a $275-million hole in the state’s economy, critically affecting agriculture and healthcare among other industries, according to a report from UC Merced and the Bay Area Council Economic Institute.

“Deportations tend to raise unemployment among U.S.-born and documented workers through reduced consumption and disruptions in complementary occupations,” says a UCLA Anderson report.

Californians understand these realities because they’re not hypothetical or theoretical — they’re a part of daily life and commerce. Nearly three-quarters of the state’s residents believe that immigrants benefit California “because of their hard work and job skills,” says the Public Policy Institute of California.

I’m a California native whose grandparents were from Spain and Italy, but the state has changed dramatically in my lifetime, and I don’t think I ever really saw it clearly or understood it until I was asked in 2009 to address the freshman convocation at Cal State Northridge. The demographics were similar to today’s — more than half Latino, 1 in 5 white, 10% Asian and 5% Black. And roughly two-thirds were first-generation college students.

I looked out on thousands of young people about to find their way and make their mark, and the students were flanked by a sprinkling of proud parents and grandparents, many of whose stories of sacrifice and yearning began in other countries.

That is part of the lifeblood of the state’s culture, cuisine, commerce and sense of possibility, and those students are now our teachers, nurses, physicians, engineers, entrepreneurs and tech whizzes.

If you left Taipei and settled in Monterey, said goodbye to Dubai and packed up for Ojai, traded Havana for Fontana or Morelia for Visalia, thank you.

And happy new year.

steve.lopez@latimes.com

Tehran, Iran – Iran’s currency has been registering new lows amid ongoing economic turmoil that is also reflected in a planned budget for next year that effectively shrinks public spending.

Each United States dollar was priced at about 1.36 million rials in the open market on Wednesday in Tehran, its highest rate ever, before the Iranian currency slightly regained ground on Thursday.

The embattled national currency has been rapidly declining over recent weeks as the US and its Western allies pile on their sanctions and diplomatic pressure, and the threat of another war with Israel lingers.

President Masoud Pezeshkian this week sent his administration’s finalised proposed budget to the hardline-dominated parliament for the upcoming Iranian calendar year, which starts in late March. The budget will then have to be greenlit by the 12-member Guardian Council before being ratified into law in the coming weeks.

The presented budget nominally grew by just over 5 percent compared with last year, but inflation currently stands at about 50 percent – indicating that the government envisions lower spending while managing a so-called “resistance economy” as it faces a massive budget crunch yet again.

But minimum wages are to be raised far below the inflation rate, too, at only 20 percent, meaning that Iranians are once more guaranteed to have far less spending power next year as the embattled national currency sinks.

At the same time, the budget says the government sees taxes rising by a massive 62 percent next year, as authorities try to gradually decrease dependence on oil revenues amid US efforts to drive down Iranian exports, which are carried by a shadow fleet of ships mostly to China.

At the current exchange rate, the whole budget is worth about $106bn, several times lower than the projected 2026 budgets of regional players like Turkiye, Saudi Arabia and Israel.

Iran’s rent-distributing multi-tier exchange rate system is still at play, with the government proposing allocating a rate for customs duties, import valuation and budget accounting tables, and another closer to the open market rate used for oil revenue realisation.

An earlier subsidised exchange rate, which was far lower than the open market rate, has now been abandoned. Any excess cash resulting from this is expected to be doled out to low-income Iranians in the form of electronic coupons that can be used to buy essential items like food.

For the first time, the budget is drafted in new rials as four zeros are expected to be removed from the ailing national currency by the time the budget is operational for next year.

After years of back and forth, the parliament in October approved the government plan to lop off four zeros. The move is only cosmetic and will not help with the runaway inflation, but proponents argued it was necessary after years of currency devaluation.

Budget spells grim outlook

Several major factors have already been raising alarm over how bad the economic situation could become next year.

Iranians online reacted poorly to the fact that the government predicts wages will be far outpaced by inflation and tax collection. Others were concerned that eliminating the subsidised rate for essential goods could cause another price shock in the short term.

Many shared a video of Pezeshkian from last year running for president, when he said during a televised interview that the stark disparity between wage increases and inflation is a “grave injustice” being done to the Iranian people.

“Unfortunately, so long as we do not resolve the structural issues, we are making labourers and government workers poorer by the day while those with money get bigger and bigger,” Pezeshkian said at the time.

“This inflation is an additional tax on the poor and the disenfranchised.”

But successive governments have failed to eliminate budget deficits or rein in banks teetering on the brink of insolvency, therefore relying on the central bank to print more money to run the country and, in turn, exacerbate inflation.

Earlier in December, the government proceeded with increasing the price cap of petroleum despite repeated assurances it had no plans to that effect this year. The move has already led to increased transport costs, which will end up taking inflation higher.

There are now four price tiers for petroleum, with the cheapest and lowest quality that is available to most Iranians costing up to 50,000 rials per litre (about $1.19) and higher quality imported fuel delivered this week at 800,000 rials per litre ($19).

Hamid Pourmohammadi, who heads the Plan and Budget Organization of Iran, insisted that the government has devised a 20-point plan to be unveiled soon that will reduce pressure on the livelihoods of Iran’s 90 million population.

“The government is trying to adopt an active approach to address the economic challenges of the people, businesses and economists, so there is no perception of complacency in these economic conditions,” he said.

Ramallah, occupied West Bank – The Palestinian economy is undergoing a severe downturn, driven by Israel’s continued assault on Gaza, intensified restrictions on movement and trade in the occupied West Bank, and a sharp decline in both domestic and external financial resources.

As the Palestinian government struggles to manage an escalating fiscal crisis, official data and expert assessments warn that the economy is approaching a critical threshold – one that threatens the continuity of state institutions and their ability to meet even basic obligations.

A joint report by the Palestinian Central Bureau of Statistics (PCBS) and the Palestine Monetary Authority (PMA), published in the Palestinian Economic Monitor for 2025, found that the economy remained mired in deep recession throughout the year.

According to the report, gross domestic product (GDP) in Gaza contracted by 84 percent in 2025 compared with 2023, while GDP in the occupied West Bank declined by 13 percent over the period. Overall GDP levels remain far below their pre-war baseline, underscoring the fragility of any potential recovery and the economy’s inability to regain productive capacity under current conditions.

The report documented a near-total collapse of economic activity in Gaza, alongside sharp contractions across most sectors in the West Bank, despite a modest improvement compared with 2024. It also recorded a decline in trade volumes to and from Palestine compared with 2023, while unemployment in Gaza exceeded 77 percent during 2025.

Withheld revenues and mounting debt

Palestinian Economy Minister Mohammed al-Amour said Israeli authorities are withholding approximately $4.5bn in Palestinian clearance revenues, describing the move as a form of “collective punishment” that has severely undermined the Palestinian Authority’s (PA’s) ability to function.

“The total accumulated public debt reached $14.6bn by the end of November 2025, representing 106 percent of the 2024 gross domestic product,” al-Amour told Al Jazeera.

The minister said the debt includes $4.5bn owed to the International Monetary Fund, $3.4bn to the Palestinian banking sector, $2.5bn in salary arrears to public employees, $1.6bn owed to the private sector, $1.4bn in external debt, and $1.2bn in other financial obligations.

“These pressures have had a direct impact on the overall performance of the public budget,” al-Amour said, contributing to a widening deficit and sharply reduced capacity to cover operational spending and essential commitments.

All of that has led al-Amour to conclude that the Palestinian economy is undergoing “its most difficult period” since the establishment of the PA in 1994.

Official estimates show GDP contracted by 29 percent in the second quarter of 2025, compared with 2023, while GDP per capita fell by 32 percent over the period. These figures align with a recent report by the United Nations Conference on Trade and Development (UNCTAD), which concluded that the Palestinian economy has regressed to levels last seen 22 years ago.

In response, al-Amour said the government was implementing an “urgent package of measures”.

“The government is rolling out a series of actions that include strengthening the social protection system, supporting citizens’ resilience in Area C [of the West Bank], and backing small and medium-sized enterprises and productive sectors, particularly industry and agriculture,” al-Amour said.

Official data show a sharp drop across nearly all economic activities. Construction contracted by 41 percent, while both industry and agriculture declined by 29 percent each. Wholesale and retail trade fell by 24 percent.

The tourism sector has been among the hardest hit. Following the start of Israel’s genocidal war on Gaza in October 2023, the Ministry of Tourism reported daily losses exceeding $2m, as inbound tourism nearly collapsed. By the end of 2024, cumulative losses were estimated at approximately $1bn.

The Palestinian Economic Policy Research Institute (MAS), citing PCBS data, reported an 84.2 percent drop in hotel occupancy in the West Bank during the first half of 2024 compared with the same period a year earlier. Losses in accommodation and food services alone amounted to roughly $326m.

Despite the downturn, al-Amour said the Ministry of Economy is focusing on sustaining the private sector, substituting Israeli imports across seven key sectors, developing the digital and green economies, and improving the business environment. He noted that about 2,500 new companies continue to be registered each year.

Tourism collapsing

Samir Hazbun, a lecturer at al-Quds University and board member of the Palestinian Federation of Chambers of Commerce and Industry, said repeated crises have hollowed out the economy.

“Over the past five years, all economic sectors have entered successive crises, starting with the COVID-19 pandemic and followed by the war on Gaza,” Hazbun said. “Tourism, one of the most important sectors, has been especially affected, exhausting the local economy and weakening its ability to recover.”

Hazbun said preliminary estimates indicate tourism has suffered direct losses exceeding $1bn, alongside extensive indirect losses resulting from the paralysis of hotels, souvenir shops, travel agencies, tour guides and street vendors.

He added that hotel investments alone are estimated at $550m, with no financial returns for owners, forcing many workers out of the sector due to the absence of job security and safety nets.

Economic expert Haitham Daraghmeh described Palestinian debt as “accumulated debt that increases monthly”, owed to banks, suppliers, contractors, and the telecommunications and health sectors.

“The withholding of clearance revenues is no longer a temporary financial crisis; it has become a factor of complete economic paralysis,” he said.

With external aid frozen and domestic revenues at historic lows, Daraghmeh warned that the government was “no longer able to cover salaries or operational costs”.

“The government is operating like an ATM, with no real capacity for investment or economic stimulus,” Daraghmeh added.

Economic warnings

Daraghmeh said World Bank reports warn that continued failure to pay salaries and meet obligations could trigger comprehensive economic collapse. While some countries, including France and Saudi Arabia, have pledged support, he said none of that assistance has materialised.

He outlined three possible scenarios; the most likely is a continued gradual decline, driven by ongoing revenue withholding and shrinking resources. The second involves international intervention to prevent total collapse, particularly at a decisive political moment. The third scenario could see a conditional breakthrough, tied to European demands for financial reform, anticorruption measures, curriculum changes and elections.

Taken together, the data and expert assessments suggest the Palestinian economy is approaching a dangerous tipping point. Analysts warn that without an end to revenue withholding, renewed international financial support, and a shift in the political context, the economy risks sliding from prolonged crisis into outright collapse.

The question facing Palestinian officials and economists alike is how long the system can endure under siege-like conditions – and whether political and economic shifts will arrive in time to halt what many now describe as a slow and deliberate economic unravelling.

WASHINGTON — As the increasingly troubled economy emerges as the trump issue of the 2008 political season, senior congressional Republicans said Wednesday they would put aside demands to make President Bush’s tax cuts permanent if that was what it took to get quick action on a stimulus package.

Democrats, meantime, signaled they too would consider compromises in the interest of fast action, such as reining in some social spending they might otherwise push for and accepting inclusion of business tax incentives in the bill.

“I think there is a way to come to an agreement,” House Minority Leader John A. Boehner (R-Ohio) said in an interview. “Not having an agreement is a lose-lose.”

The White House has not addressed the issue in detail, but Bush, who has been traveling in the Middle East, is scheduled to hold a conference call today with congressional leaders. To avoid a veto, they hope to get his nod in advance on the outlines of a plan that would probably include a $500 rebate check for taxpayers, extended unemployment benefits for the jobless, and incentives for businesses to expand and create jobs.

The president also has invited congressional leaders to the White House for a meeting Tuesday. And Federal Reserve Chairman Ben S. Bernanke is expected to add his voice to the support for stimulus when he testifies on the Hill today.

The sudden unanimity on the need for action, standing in sharp contrast with the ideological deadlock and partisan jockeying that have characterized Washington for more than a year, reflects a confluence of developments that threaten trouble for both parties.

On the political front, exit polls in Michigan’s GOP presidential primary Tuesday showed that economic anxiety outstripped all other issues on voters’ minds. Former Massachusetts Gov. Mitt Romney won in Michigan after setting aside conservative orthodoxy and vowing to play a highly active role as president to set the nation on the road to prosperity.

With presidential tests looming in Nevada, South Carolina, Florida and other states where economic distress is evident, candidates in both parties have ratcheted up their expressions of concern and rushed out their own stimulus proposals.

A stream of unwelcome economic data has added to politicians’ sense of urgency. The Labor Department announced Wednesday that consumer prices rose 4.1% last year — the fastest in 17 years — led by soaring gasoline costs and higher prices at the supermarket. Average wages, meantime, recorded a slight drop when adjusted for inflation. Earlier this month, the department reported unemployment had hit 5%, the highest rate in two years.

Economists consider the dual ills of rising inflation and rising unemployment to be the worst situation policymakers can face, because the cure for one — increasing fiscal spending or the money supply to spur job growth — can stimulate further price increases.

A member of the GOP rank-and-file, Rep. Lee Terry of Nebraska, expressed the feelings of both parties when he said: “People expect us to act.” If Democrats and Republicans can get together, he said, it will “let people know we can do something here.”

Perhaps the most striking illustration of how much these developments were changing the atmosphere on Capitol Hill was the readiness of Republicans to step back from their long insistence that Congress make the Bush tax cuts permanent. Such tax cuts have been central to GOP economic policy for more than two decades.

Now Republican leaders say they are ready to put off action.

“It’s impossible for me to believe that [permanent tax cuts] would be part of the agreement, as much as I would like to see that happen,” Boehner said.

Republican leaders met privately with House Speaker Nancy Pelosi (D-San Francisco) on Wednesday to discuss stimulus ideas — a meeting Boehner described as his first policy get-together with her since Democrats won control of Congress in November 2006.

While yielding on the Bush cuts, Republicans said they would insist that Democrats not include new taxes as part of the package and that they try to hold the reins on some social welfare spending.

House Minority Whip Roy Blunt (R-Mo.), who attended the meeting with Pelosi, revealed no details of the talks but said he and Boehner had “made clear that Republicans are interested in working toward an agreement on a short-term stimulus package.”

“But we were equally clear that hard-working middle-class families must not be burdened with new taxes or wasteful spending if any such plan has a chance of becoming law,” he said.

Democrats say they are mindful that the president wields a veto pen and that their Senate majority is thin. If they want to avoid the kind of extended tug-of-war they had with Bush over Iraq war funding last year, Democrats will have to get him and his Republican allies on board in advance.

“This will need an unusual level of bipartisanism,” said Jim Manley, staff director for Senate Majority Leader Harry Reid (D-Nev.).

Some Republicans acknowledged that the emerging shape of the stimulus legislation made it more likely that the president — who mentions the issue at every opportunity — would not get his tax cuts extended before he left office.

“If they don’t get it in the stimulus package, they are not likely to get the Bush tax extension this year,” said Bill Frenzel, a former Republican congressman from Minnesota and longtime member of the House Budget Committee who is now a guest scholar at the centrist Brookings Institution.

For their part, Democrats indicated that they were likely to set aside “pay-go” standards under which they have pledged to offset any new spending with revenue increases or cuts elsewhere. Keeping the economy growing and stemming job losses are higher priorities in the short term than worsening the federal budget deficit, they indicated.

There is “a growing consensus that this is not the time for pay-go, because you want to inject money into the economy,” said Sen. Charles E. Schumer (D-N.Y.), chairman of Congress’ joint economic committee.

Despite the new urgency, both parties see opportunities to score partisan points on the economy.

Democrats, including Schumer, say that to stimulate the economy, it makes the most sense to give money to people who need it the most and will spend it right away. For example, they favor extending unemployment benefits in hard-hit areas.

But Republicans, wary of expanding government entitlements even temporarily, favor tax incentives to businesses to help them create more jobs.

Conservatives angered over Democrats’ opposition to previous tax-cut proposals noted that new spending enlarges the federal deficit just the same as new tax cuts, which Democrats long have opposed.

“The Democrats have been preaching, ‘We can’t do anything to increase the deficit.’ Now it appears they’ve kind of thrown that by the wayside,” said Rep. Jeb Hensarling (R-Texas), leader of a group of House conservatives.

To get the Republican support they need to pass a bill, Democrats may need to give greater weight to tax incentives and less weight to social welfare spending than they might otherwise want.

Schumer said such compromises would be better than delay, in large part because economists say a stimulus package has to be enacted fast or it will have little effect.

“If this isn’t done in the first quarter — finished, signed, sealed and delivered and already going into effect — it may be too late,” he said.

Neither party looks forward to running for election in the fall with the economy in the dumps, but the prospect may be especially unwelcome for congressional Republicans.

“Bad economic times almost certainly work against the party of the president,” said Thomas Mann of the Brookings Institution, who studies the relationship between Congress and the White House. “For Bush to block it would make a drubbing only more likely for the Republican candidate for president.”

Fed Chairman Bernanke visited Pelosi in her office Monday to discuss a need for economic stimulus; he signaled last week that the central bank was increasingly worried about an economic downturn. Some analysts said his remarks suggest the Fed is going to make a bold, three-quarters-of-a-point interest rate cut at its next meeting on Jan. 30.

—

maura.reynolds@latimes.com

richard.simon@latimes.com

Times staff writer Noam N. Levey contributed to this report.

The United States has imposed visa bans on five Europeans, including a former European Union commissioner, accusing them of pressuring tech firms to censor and suppress “American viewpoints they oppose”.

In a statement on Tuesday, US Secretary of State Marco Rubio characterised the individuals as “radical activists” who had “advanced censorship crackdowns” by foreign states against “American speakers and American companies”.

“For far too long, ideologues in Europe have led organized efforts to coerce American platforms to punish American viewpoints they oppose,” he said on X.

“The Trump Administration will no longer tolerate these egregious acts of extraterritorial censorship,” he added.

The most prominent target was Thierry Breton, who served as the European commissioner for the internal market from 2019-2024.

Sarah Rogers, the undersecretary for public diplomacy, described the French businessman as the “mastermind” of the EU’s Digital Services Act (DSA), a landmark law intended to combat ​hateful speech, misinformation and disinformation on online platforms.

Rogers also accused Breton of using the DSA to threaten Elon Musk, the owner of X and a close ally of US President Donald Trump, ahead of an interview Musk conducted with Trump during last year’s presidential campaign.

‘Witch hunt’

Breton responded to the visa ban in a post on X, slamming it as a “witch hunt” and comparing the situation with the US’s McCarthy era, when officials were chased out of government for alleged ties to communism.

“To our American friends: Censorship isn’t where you think it is,” he added.

The others named by Rogers are: Imran Ahmed, chief executive of the Centre for Countering Digital Hate; Josephine Ballon and Anna-Lena von Hodenberg, leaders of HateAid, a German organisation, and Clare Melford, who runs the Global Disinformation Index (GDI).

French Minister for Europe and Foreign Affairs Jean-Noel Barrot “strongly” condemned the visa restrictions, stating that the EU “cannot let the rules governing their digital space be imposed by others upon them”. He stressed that the DSA was “democratically adopted in Europe” and that “it has absolutely no extraterritorial reach and in no way affects the United States”.

Ballon and von Holdenberg of HateAid described the visa bans as an attempt to obstruct the enforcement of European law on US corporations operating in Europe.

“We will not be ‌intimidated by a government that uses accusations of censorship to silence those who stand ⁠up for human rights and freedom of expression,” they said in a statement.

A spokesperson for the GDI also called the US action “immoral, unlawful, and un-American”, as well as “an authoritarian attack on free speech and an egregious act of government censorship”.

The punitive measures follow the Trump administration’s publishing of a National Security Strategy, which accused European leaders of censoring free speech and suppressing opposition to immigration policies that it said risk “civilisational erasure” for the continent.

The DSA in particular has emerged as a flashpoint in US-EU relations, with US conservatives decrying it as a weapon of censorship against right-wing thought in Europe and beyond, an accusation Brussels denies.

The legislation requires major platforms to explain content-moderation decisions, provide transparency for users and grant researchers access to study issues such as children’s exposure to dangerous content.

Tensions escalated further this month after the EU fined Musk’s X for violating DSA rules on transparency in advertising and its methods for ensuring users were verified and actual people.

Washington last week signalled that key European businesses – including Accenture, DHL, Mistral, Siemens and Spotify – could be targeted in response.

The US has also attacked the United Kingdom’s Online Safety Act, which imposes similar content moderation requirements on major social media platforms.

The White House last week suspended the implementation of a tech cooperation deal with the UK, saying it was in opposition to the UK’s tech rules.

Borrowers to receive wage garnishment notices starting January 7, Department of Education confirms.

The administration of United States President Donald Trump says it will begin garnishing wages from some borrowers who have defaulted on their student loans, marking the first time the federal government has taken such action since the onset of the COVID-19 pandemic.

Affected borrowers will begin receiving notices on January 7, a Department of Education spokesperson told Al Jazeera on Tuesday.

The policy is expected to initially impact about 1,000 borrowers, and the number is to grow over time.

“The notices will increase in scale on a month-to-month basis,” the spokesperson said.

Al Jazeera asked the department for clarification on how borrowers were selected for the first round of garnishments, how many additional people may be affected and the rationale behind those decisions.

The agency did not clarify but said collections are “conducted only after student and parent borrowers have been provided sufficient notice and opportunity to repay their loans”.

Under federal law, the government may garnish up to 15 percent of a borrower’s take-home pay as long as the individual is left with at least 30 times the federal minimum wage per week. The federal minimum wage is currently $7.25 an hour, a rate that has remained unchanged since July 2009.

About one in six American adults holds student loan debt, which totals about $1.6 trillion. As of April, more than 5 million borrowers had not made a payment in at least a year, according to the Education Department.

The garnishments are planned as economic pressure mounts for many Americans amid rising prices and a cooling labour market. According to consulting firm Challenger, Gray & Christmas, more than 1.1 million people lost their jobs in 2025 as job growth slowed. Federal data also showed mixed employment trends in recent months with job losses reported in October followed by modest gains in November.

In the months of October and November, the unemployment rate increased to 4.6 percent, the highest since 2021, according to the US Department of Labor’s Bureau of Labor Statistics.

“Families are being forced to choose between paying their bills and putting food on the table. The Trump administration’s decision to begin garnishing wages takes even that meagre choice away from student loan borrowers who are living on the brink,” Julie Margetta Morgan, former deputy undersecretary at the Education Department under former President Joe Biden, told Al Jazeera.

“Instead of solving the affordability crisis that’s leaving Americans unable to pay their student loans, the president is further punishing families and forcing them to forgo the very basics.”

In addition to wages, the federal government has the authority to garnish income from tax refunds, Social Security benefits and certain disability payments.

New York City, United States – Since the recent termination of the nearly decade-old trade rule called “de minimis,” United States consumers and businesses have been exposed to slower shipping, destroyed packages and steep tariff fees on international goods – foreshadowing what could make for a chaotic holiday shopping season.

For major international carrier UPS, navigating the latest regulatory changes has proved more fraught than for its competitors FedEx and DHL.

Matthew Wasserbach, brokerage manager for Express Customs Clearance in New York, a firm that assists importers with documentation, tariff classifications, valuation, and other federal requirements, has witnessed the fallout as UPS customers seek his firm’s assistance to clear packages entering the US.

“Over the last few months, we’ve been seeing a lot of UPS shipments, in particular, becoming stuck and being lost or disposed of … This all stems from the ending of the de minimis,” said Wasserbach. “Their [UPS’s] whole business model changed once the de minimis was ended. And they just didn’t have the capacity to do the clearance … a lot of people are expecting to receive international packages, and they’re just never gonna get them.”

UPS did not respond to Al Jazeera’s request for comment.

Suspending tariff exemptions

Since 2016, the de minimis trade exemption determined that packages worth $800 or less were not subject to taxes and tariffs. According to US Customs and Border Protection (CBP), the number of shipments entering the US claiming the exemption increased by more than 600 percent from 139 million shipments in 2015 to more than one billion in 2023.

In August, this all changed. President Donald Trump signed an executive order suspending de minimis treatment for all countries, spiralling US imports into a new landscape of paperwork and processes, subject to duties and tariffs based on their place of origin.

Just a month after de minimis ended, while shipping products with UPS, Tezumi Tea, an online Japanese tea and teaware company that sells its products online and through meetups in New York City, fell victim to the tariff backlog at US customs. Tezumi lost roughly 150kg (330lbs) of matcha, totalling about $13,000.

“We responded by increasing buffers in our supply planning across the dozen farms that we partner with,” said Ryan Snowden, a cofounder of Tezumi. “Even with those adjustments, the loss had a severe effect on a number of our cafe customers who suddenly needed to switch to another matcha blend.”

Now, UPS is no longer accepting shipments from Japan, and Tezumi has switched to shipping supplies through alternate carriers such as DHL and FedEx.

Disposing shipments

Wasserbach has witnessed similar instances of UPS losing imports.

“When a UPS package goes uncleared, it’s just basically sitting in a UPS facility, uncleared for a certain period of time,” said Wasserbach. “Then UPS indicates in their tracking that they’re disposing of the shipments without making, really, any effort, from what I’ve seen, to contact either the sender or the receiver, to get information they need to do to get the clearance.”

Wasserbach shared email chains with Al Jazeera from UPS customers who looped in his firm to their customs clearance UPS debacles.

In one exchange, UPS customer Stephan Niznik responded to a notice from the UPS Alternate Broker Team that their packages had been “destroyed”.

“The tracking says on multiple instances that UPS attempted to contact the sender (me), but this is false; aside from a request for more information on September 5 (which I responded to immediately), UPS never attempted to contact me,” wrote Niznik. “It is absolutely disgraceful that my package was mishandled – clothes and children’s toys were destroyed at the hands of UPS.”

In another email chain, UPS told customer Chenying Li that their package was released following an email from Express Customs Clearance stating that the shipment was cleared.

A week later, Li’s package was still showing as “Pending Release”, and when they asked for an update on the shipment, UPS responded, “At this time we are unable to provide an ETA,  as volume is currently backed up and awaiting delivery due to the De Minimis impact.”

‘Impose additional pressure’

In addition to the customs backlog, Virginia Tech associate professor David Bieri says cost prevention may provide one explanation for UPS choosing to dispose of packages rejected by US customs rather than return the shipments to senders.

“All these additional rules and regulations impose additional pressure on already relatively tight margins for these companies – UPS, FedEx, DHL and so forth,” said Bieri. “They need to make money, and sometimes it’s easier not to fulfil a service than to take on the additional cost of customs clearance and making sure that it gets to its final destination.”

Bieri added that UPS resorting to package disposal may indicate that they believe themselves to be in “a sufficiently strong monopolistic position that they can do such horrible practice – unilateral nonfulfillment of contract”.

Wasserbach told Al Jazeera that “with FedEx and DHL shipments, we aren’t seeing these problems”.

When asked whether FedEx has disposed of packages stuck in customs, a spokesperson wrote, “If paperwork is not complete and/or rejected by US Customs and Border Protection, FedEx actively works with senders to update paperwork to resubmit to CBP or return shipments to senders. In some cases, shippers can request that packages be disposed of if they would prefer not to pay to return to sender. In those rare cases, recipients are notified at the direction of the shipper. This is not a common practice. We remain business as usual.”

Final cost of delivery at your doorstep

But FedEx and DHL are encountering some of the same challenges as UPS. Since August, when de minimis ended and small packages were suddenly subject to taxes and tariffs, anyone who ordered from abroad was susceptible to unexpected fees on imported goods.

Without de minimis protecting packages worth $800 and less from import fees, the consumer essentially becomes the importer.

“You might order something you find a bargain abroad, and you don’t pay attention to where things are shipped from … and it might be shipped from China, and you might be in for a rude awakening once that thing arrives at your door,” said Beiri. “You paid the price and thought that this was it. But your deliverer is saying, no, actually, we’re passing that cost on to you. Because you’re acting as the importer.”

These fees could cost equal to or more than the item you ordered itself. “You’ve got to pay extra attention to small prints,” said Beiri.

With looming costs and lost packages on the horizon, Beiri says shoppers will likely make “substitution questions” – are you renovating or are you going on vacation? Are you splashing on Christmas gifts, or are you treating yourself to dining out?

“I think these are interesting times of having to make choices and asking yourself what can we do given that we have an affordability crisis, rent, insurance, making ends meet,” said Beiri. “That’s what’s currently going on.”

In order to better handle evolving trade policy, Wasserbach says that UPS will likely aim to hire a massive number of entry writers to assist with necessary documentation for legal transportation of goods across international borders. However, now that it is the busiest time of year in terms of delivering people their Christmas shopping, Wasserbach doubts an influx of hiring could make much of a difference, given the amount of training required.

The company’s revenue has already taken a hit on account of Trump’s policies. Tariffs on China and the elimination of the de minimis rule saw imports from China, UPS’s most profitable route, drop reportedly 35 percent earlier this year.

“I would assume it’s gonna get better next year,” said Wasserbach. “But as for solving this problem before Christmas, I don’t think that that’s gonna happen.”

ALLENTOWN, Pa. — When Idalia Bisbal moved to this Pennsylvania city synonymous with America’s working class, she hoped for a cheaper, easier life than the one she was leaving behind in her hometown of New York City.

About three years later, she is deeply disappointed.

“It’s worse than ever,” said the 67-year-old retiree, who relies on Social Security, when asked about the economy. “The prices are high. Everything is going up. You can’t afford food because you can’t afford rent. Utilities are too high. Gas is too expensive. Everything is too expensive.”

Bisbal was sipping an afternoon coffee at the Hamilton Family Restaurant not long after Vice President JD Vance rallied Republicans in a nearby suburb. In the Trump administration’s second high-profile trip to Pennsylvania in a week, Vance acknowledged the affordability crisis, blamed it on the Biden administration and insisted better times were ahead. He later served food to men experiencing homelessness in Allentown.

The visit, on top of several recent speeches from President Trump, reflects an increasingly urgent White House effort to respond to the economic anxiety voiced by people across the country. Those worries are a vulnerability for Republicans in competitive congressional districts like the one that includes Allentown, which could decide control of the U.S. House in next year’s midterms.

But in confronting the challenge, there are risks of appearing out of touch.

Only 31% of U.S. adults now approve of how Trump is handling the economy, down from 40% in March, according to a poll from the Associated Press-NORC Center for Public Affairs Research. Yet Trump has called affordability concerns a “hoax” and gave the economy under his administration a grade of “A+++++.” Vance reiterated that assessment during his rally, prompting Bisbal to scoff.

“In his world,” Bisbal, a self-described “straight-up Democrat,” responded. “In the rich man’s world. In our world, trust me, it’s not an ‘A.’ To me, it’s an ‘F,’ ‘F,’ ‘F,’ ‘F,’ ‘F,’ ‘F.’”

Agreement that prices are too high

With a population of roughly 125,000 people, Allentown anchors the Lehigh Valley, which is Pennsylvania’s third-largest metro area. In a dozen interviews last week with local officials, business leaders and residents of both parties, there was agreement on one thing: Prices are too high. Some pointed to gas prices while others said they felt the shock more at the grocery store or in their cost of healthcare or housing.

Few shared Trump’s unbridled boosterism about the economy.

Tony Iannelli, the president and CEO of the Greater Lehigh Valley Chamber of Commerce, called Trump’s grade a “stretch,” saying that “we have a strong economy but I think it’s not yet gone to the next stage of what I would call robust.”

Tom Groves, who started a health and benefits consulting firm more than two decades ago, said the economy was at a “B+,” as he blamed the Affordable Care Act, widely known as Obamacare, for contributing to higher health costs, and he noted stock and labor market volatility.

Joe Vichot, the chairman of the Lehigh County Republican Committee, referred to Trump’s grade as a “colloquialism.”

Far removed from Washington’s political theater, there was little consensus on who was responsible for the high prices or what should be done about it. There was, however, an acute sense of exhaustion at the seemingly endless political combat.

Pat Gallagher was finishing lunch a few booths down from Bisbal as she recalled meeting her late husband when they both worked at Bethlehem Steel, the manufacturing giant that closed in 2003.

Now retired, Gallagher too relies on Social Security benefits, and she lives with her daughter, which helps keep costs down. She said she noticed the rising price of groceries and was becoming exasperated with the political climate.

“I get so frustrated with hearing about the politics,” she said.

A front-row seat to politics

That feeling is understandable in a place that often gets a front-row seat to the national debate, whether it wants the view or not. Singer Billy Joel’s 1982 song “Allentown” helped elevate the city into the national consciousness, articulating simultaneous feelings of disillusionment and hope as factories closed.

In the decades since, Pennsylvania has become a must-win state in presidential politics and the backdrop for innumerable visits from candidates and the media. Trump and his Democratic rival in 2024, Kamala Harris, made several campaign swings through Allentown, with the then-vice president visiting the city on the eve of the election.

“Every race here, all the time,” Allentown’s mayor, Democrat Matt Tuerk, recalled of the frenzied race last year.

The pace of those visits — and the attention they garnered — has not faded from many minds. Some businesses and residents declined to talk last week when approached with questions about the economy or politics, recalling blowback from speaking in the past.

But as attention shifts to next year’s midterms, Allentown cannot escape its place as a political battleground.

Trump’s win last year helped lift other Republicans, such U.S. Rep. Ryan Mackenzie, to victory. Mackenzie, who unseated a three-term Democrat, is now one of the most vulnerable Republicans in Congress. To win again, he must turn out the Republicans who voted in 2024 — many of whom were likely more energized by Trump’s candidacy — while appealing to independents.

Mackenzie’s balancing act was on display when he spoke to the party faithful Tuesday, bemoaning the “failures of Bidenomics” before Vance took the stage at the rally. A day later, the congressman was back in Washington, where he joined three other House Republicans to rebel against the party’s leadership and force a vote on extending Obamacare subsidies that expire at the end of the year.

Vichot, the local GOP chairman, called Mackenzie an “underdog” in his reelection bid and said the healthcare move was a signal to voters that he is “compassionate for the people who need those services.”

A swing to Trump in 2024

Lehigh County, home to Allentown and the most populous county in the congressional district, swung toward Trump last year. Harris’ nearly 2.7-percentage-point win in the county was the tightest margin for a Democratic presidential candidate since 2004. But Democrats are feeling confident after a strong performance in this fall’s elections, when they handily won a race for county executive.

Retaking the congressional seat is now a top priority for Democrats. Gov. Josh Shapiro, a Democrat who faces reelection next year and is a potential presidential contender in 2028, endorsed firefighter union head Bob Brooks last week in the May primary.

Democrats are just a few seats shy of regaining the House majority, and the first midterm after a presidential election historically favors the party that’s out of power. If the focus remains on the economy, Democrats are happy.

The Uline supplies distribution factory where Vance spoke, owned by a family that has made large donations to GOP causes, is a few miles from the Mack Trucks facility where staff was cut by about 200 employees this year. The company said that decision was driven in part by tariffs imposed by Trump. Shapiro eagerly pointed that out in responding to Vance’s visit.

But the image of Allentown as a purely manufacturing town is outdated. The downtown core is dotted by row homes, trendy hotels and a modern arena that is home to the Lehigh Valley Phantoms hockey team and hosts concerts by major artists. In recent years, Latinos have become a majority of the city’s population, driven by gains in the Puerto Rican, Mexican and Dominican communities.

“This is a place of rapid change,” said Tuerk, the city’s first Latino mayor. “It’s constantly changing ,and I think over the next three years until that next presidential election, we’re going to see a lot more change. It’s going to be an interesting ride.”

Sloan writes for the Associated Press.

BREAKINGBREAKING,

The incident marks the second time in recent weeks that the US has seized an oil tanker near Venezuela.

The United States has seized an oil tanker off the coast of Venezuela in international waters, according to officials quoted by international news agencies.

The incident comes just days after US President Donald Trump announced a “blockade” of all sanctioned oil tankers entering and leaving Venezuela.

This also marks the second time in recent weeks that the US has seized a tanker near Venezuela and comes amid a large US military build-up in the region as President Donald Trump continues to ramp up pressure on Venezuelan President Nicolas Maduro.

Three officials, who were speaking to the Reuters news agency on the condition of anonymity, did not say where the operation was taking place but added the Coast Guard was in the lead.

Two officials, speaking to The Associated Press news agency, also confirmed the operations. The action was described as a “consented boarding”, with the tanker stopping voluntarily and allowing US forces to board it, one official said.

Al Jazeera’s Heide Zhou-Castro said that there was no official confirmation from the US authorities on the operation.

“We are still waiting for confirmation from the White House and Pentagon on the details, including which ship, where it was located, and whether or not this ship was beneath the US sanctions,” she said.

More soon…

European farmers are protesting against the EU-Mercosur deal.

That is as signing has been postponed until January, due to disagreements in Europe.

The European-South American deal, planned for more than 25 years, would create the world’s largest free-trade zone.

So, why is there division?

Presenter: Folly Bah Thibault

Guests:

Pieter Cleppe – Editor-in-chief at BrusselsReport.eu
Ciaran Mullooly – Member of the European Parliament for the Independent Ireland group
Gustavo Ribeiro – Founder and editor-in-chief of the Brazilian Report online newspaper

The Delaware Supreme Court rules in favour of Musk and his $56bn compensation package.

Elon Musk’s 2018 pay package from Tesla, once worth $56bn, has been restored by the Delaware Supreme Court, in the United States, two years after a lower court struck down the compensation deal as “unfathomable”.

Friday’s ruling overturns a decision that had prompted a furious backlash from Musk and damaged Delaware’s business-friendly reputation.

The pay package was by far the largest ever, until Tesla shareholders approved a new, even larger pay plan of nearly $1 trillion in November.

The ruling means that Musk can finally get paid for his work since 2018, when he transformed Tesla from a struggling startup to one of the world’s most valuable companies.

The 2018 pay deal provided Musk options to acquire about 304 million Tesla shares at a deeply discounted price if the company hit various milestones, which it did.

Tesla estimated in 2018 that the plan was potentially worth $56bn, although given the rise in the stock price, the value ballooned to about $120bn by early November. The options represent approximately 9 percent of Tesla’s outstanding stock.

Musk never collected his stock options because, soon after shareholders approved the 2018 compensation, the board was sued by Richard Tornetta, an investor with just nine Tesla shares.

In 2024, after a five-day trial, Delaware Judge Kathaleen McCormick concluded that Tesla’s directors were conflicted and key facts were hidden from shareholders when they voted to approve the plan. She ordered that the 2018 plan be rescinded.

Musk accused Delaware judges of being activists, hostile to tech founders, and he urged businesses to follow Tesla and reincorporate elsewhere.

Dropbox, Roblox, The Trade Desk and Coinbase were among the handful of large companies that moved their legal homes to Nevada or Texas. However, Delaware remains by far the most popular legal home for US public companies.

Tesla’s board has warned that Musk, the world’s richest person who also leads the SpaceX rocket venture and the artificial intelligence startup xAI, could leave the electric car company if he does not get the pay he wants and an increase in his voting power.

In November, shareholders approved a new pay package that could be worth $878bn if Tesla meets targets for self-driving vehicles, a robotaxi network and sales of humanoid robots.

Tesla has taken steps to reduce the risk that a shareholder could tie up the 2025 package in the courts.

The Austin-based company is now incorporated in Texas, which allows Tesla to require that any investor or group of investors must own 3 percent of the company stock before suing for an alleged corporate law violation. A stake of that size would be worth about $30bn, and Musk is the only individual with that much stock.

United States President Donald Trump announced new agreements aimed at lowering prescription drug prices.

On Friday, alongside leaders from Bristol Myers Squibb, Gilead Sciences, and Merck, among other leading pharma giants, the president announced deals that would cut prices on their medications to match that of the developed nation with the lowest price.

“Starting next year, American drug prices will come down fast and furious and will soon be some of the lowest in the developed world,” Trump said.

“This is the biggest thing having to do with drugs in the history of the purchase of drugs.”

Under the deals, each drugmaker will cut prices on some of the drugs sold to the Medicaid programme for low-income people, senior administration officials said, promising “massive savings” on widely used medicines without giving specific figures.

“We were subsidising the entire world. We’re not doing it anymore,” Trump said at a White House news conference, flanked by nine pharma executives.

Mehmet Oz, the director of the Centres for Medicare and Medicaid Service, said Regeneron, Johnson & Johnson, and AbbVie would visit the White House after the holidays for the launch of the government’s TrumpRx website.

US patients currently pay by far the most for prescription medicines, often nearly three times more than in other developed nations, and Trump has been pressuring drugmakers to lower their prices to what patients pay elsewhere.

The details of each deal were not immediately available, but officials said they included agreements to cut cash-pay direct-to-consumer prices of select drugs sold potentially through the TrumpRx.gov website, to launch drugs in the US at prices equal to – not lower than – those in other wealthy nations and to increase manufacturing. In return, companies can receive a three-year exemption from any tariffs.

Drug prices fall

Merck said it will sell its diabetes drugs Januvia, Janumet and Janumet XR – set to face generic competition next year – directly to US consumers at about 70 percent off list prices. If approved, its experimental cholesterol drug enlicitide will also be offered through direct-to-consumer channels.

Enlicitide is one of two Merck drugs expected to receive a speedy review under the FDA’s new, fast-track pathway, the Reuters news agency has previously reported.

Amgen said it will expand its direct-to-patient programme to include migraine drug Aimovig and rheumatoid arthritis medicine Amjevita, offering both at $299 a month – nearly 60 percent and 80 percent below current US list prices.

In July, Trump sent letters to leaders of 17 major pharmaceutical companies, outlining how they should provide so-called most-favoured -nation prices to the US government’s Medicaid health programme for low-income people, and guarantee that new drugs will not be launched at prices above those in other high-income countries.

So far, five companies have struck deals with the administration to rein in prices. They are Pfizer, Eli Lilly, AstraZeneca, Novo Nordisk and EMD Serono, the US division of Germany’s Merck.

A portion of revenues from each company’s foreign sales will also be remitted to the US to offset costs, officials said.

The companies pledged together to invest more than $150bn in the US for R&D and manufacturing, according to officials, although it was unclear whether that included earlier commitments. Several also agreed to donate drug ingredients to the US strategic reserve.

Trump has long focused on the disparity between drug prices in the US and other wealthy countries, which have government-run health systems that negotiate price discounts.

The spectre of tighter price controls by the US government initially spooked investors, but the terms of the deals announced so far have calmed many of those fears.

Analysts have noted that Medicaid, which accounts for only approximately 10 percent of US drug spending, already benefits from substantial price discounts, exceeding 80 percent in some cases.

The holidays have arrived once again. You know, that annual festival of goodwill, compulsory spending and the dawning realization that Santa and Satan are anagrams.

Even in the best of years, Americans stagger through this season feeling financially woozy. This year, however, the picture is bleaker. And a growing number of Americans are feeling Grinchy.

Unemployment is at a four-year high, with Heather Long, chief economist at Navy Federal Credit Union, declaring, “The U.S. economy is in a hiring recession.” And a new PBS News/NPR/Marist poll finds that 70% of Americans say “the cost of living in the area where they live is not very affordable or not affordable at all.”

Is help on the way? Not likely. Affordable Care Act subsidies are expiring, and — despite efforts to force a vote in the House — it’s highly likely that nothing will be done about this before the end of the year. This translates to ballooning health insurance bills for millions of Americans. I will be among those hit with a higher monthly premium, which gives me standing to complain.

President Trump, meanwhile, remains firmly committed to policies that will exacerbate the rising cost of getting by. Trump’s tariffs — unless blocked by the Supreme Court — will continue to raise prices. And when it comes to his immigration crackdown, Trump is apparently unmoved by the tiresome fact that when you “disappear” workers, prices tend to go up.

Taken together, the Trump agenda amounts to an ambitious effort to raise the cost of living without the benefit of improved living standards. But if your money comes from crypto or Wall Street investments, you’re doing better than ever!

For the rest of us, the only good news is this: Unlike every other Trump scandal, most voters actually seem to care about what’s happening to their pocketbooks.

Politico recently found that erstwhile Trump voters backed Democrats in the 2025 governor’s races in New Jersey and Virginia for the simple reason that things cost too much.

And Axios reports on a North Carolina focus group in which “11 of the 14 participants, all of whom backed Trump last November, said they now disapprove of his job performance. And 12 of the 14 say they’re more worried about the economy now than they were in January.”

Apparently, inflation is the ultimate reality check — which is horrible news for Republicans.

Trump’s great talent has always been the audacity to employ a “fake it ‘till you make it” con act to project just enough certainty to persuade the rest of us.

His latest (attempted) Jedi mind trick involves claiming prices are “coming down tremendously,” which is not supported by data or the lived experience of anyone who shops.

He also says inflation is “essentially gone,” which is true only if you define “gone” as “slowed its increase.”

Trump may dismiss the affordability crisis as a “hoax” and a “con job,” but voters persist in believing the grocery scanner.

In response, Trump has taken to warning us that falling prices could cause “deflation,” which he now says is even worse than inflation. He’s not wrong about the economic theory, but it hardly seems worth worrying about given that prices are not falling.

Apparently, economic subtlety is something you acquire only after winning the White House.

Naturally, Trump wants to blame Joe Biden, the guy who staggered out of office 11 months ago. And yes, pandemic disruptions and massive stimulus spending helped fuel inflation. But voters elected Trump to fix the problem, which he promised to do “on Day One.”

Lacking tangible results, Trump is reverting to what has always worked for him: the assumption that — if he confidently repeats it enough times — his version of reality will triumph over math.

The difficulty now is that positive thinking doesn’t swipe at the register.

You can lie about the size of your inauguration crowd — no normal person can measure it and nobody cares. But you cannot tell people standing in line at the grocery store that prices are falling when they are actively handing over more money.

Pretending everything is fine goes over even worse when a billionaire president throws Gatsby-themed parties, renovates the Lincoln Bedroom and builds a huge new ballroom at the White House. The optics are horrible, and there’s no doubt they are helping fuel the political backlash.

But the main problem is the main problem.

At the end of the day, the one thing voters really care about is their pocketbooks. No amount of spin or “manifesting” an alternate reality will change that.

Matt K. Lewis is the author of “Filthy Rich Politicians” and “Too Dumb to Fail.”

The FTC had accused the grocery delivery giant of charging fees to consumers after promising ‘free delivery’.

Instacart has agreed to pay $60m in refunds to settle allegations brought by the United States Federal Trade Commission (FTC) that the online grocery delivery platform deceived consumers about its membership programme and free delivery offers.

According to court documents filed in San Francisco on Thursday, Instacart’s offer of “free delivery” for first orders was illusory because shoppers were charged other fees, the FTC alleged.

The agency also accused Instacart of failing to adequately notify shoppers that their free trials of its Instacart+ subscription service would convert to paid memberships and of misleading consumers about its refund policy.

“The FTC is focused on monitoring online delivery services to ensure that competitors are transparently competing on price and delivery terms,” said Christopher Mufarrige, who leads the FTC’s consumer protection work.

An Instacart spokesperson said the company flatly denies any allegations of wrongdoing, but that the settlement allows the company to focus on shoppers and retailers.

“We provide straightforward marketing, transparent pricing and fees, clear terms, easy cancellation, and generous refund policies — all in full compliance with the law and exceeding industry norms,” the spokesperson said.

The shopping platform is currently under scrutiny after a recent study by nonprofit groups found that individual shoppers simultaneously received different prices for the same items at the same stores.

The FTC is investigating the company and has demanded information about Instacart’s Eversight pricing tool, the news agency Reuters reported on Wednesday.

Instacart has said that retailers are responsible for setting prices, and that pricing tests run through Eversight are random and not based on user data.

Lindsay Owens, the executive director of the Groundwork Collaborative, an economic think tank, criticised the grocery platform for using artificial intelligence (AI) to tweak its prices.

“At a time when families are being squeezed by the highest grocery costs in a generation, Instacart chose to run AI experiments that are quietly driving prices higher,” Owens said in written remarks provided to Al Jazeera.

She also called on the administration of US President Donald Trump to take action to prevent such price manipulation from continuing into the future.

“While the FTC’s investigation is welcome news, it must be followed with meaningful action that ends these exploitative pricing schemes and protects consumers,” Owens said. “Instacart must face consequences for their algorithmic price gouging, not just a slap on the wrist.”

On Wall Street, Instacart’s stock is taking a hit on the heels of the settlement, finishing out the day down 1.5 percent.

BP has tapped Woodside Energy’s Meg O’Neill as its next CEO, its first external hire for the post in more than a century and the first woman to lead a top-five oil major as the firm pivots back to fossil fuels.

O’Neill, an Exxon veteran, will take over in April following the abrupt departure of Murray Auchincloss, the second CEO change in just over two years as the British oil major strives to improve its profitability and share performance, which for years has lagged competitors like Exxon.

The company embarked on a major strategy shift earlier this year, slashing billions in planned renewable energy initiatives and shifting its focus back to traditional oil and gas. BP has pledged to divest $20bn in assets by 2027, including its Castrol lubricants unit, and reduce debt and costs.

“Progress has been made in recent years, but increased rigour and diligence are required to make the necessary transformative changes to maximise value for our shareholders,” new BP Chair Albert Manifold said in a statement.

When Manifold took up his post in October, he emphasised the need for a deeper reshaping of BP’s portfolio to increase profitability and faced pressure from activist investor Elliott Investment Management, one of BP’s largest shareholders, which called for him to urgently address the company’s shortcomings.

Elliott saw the change of CEO as a sign of BP’s willingness to act swiftly to deliver cost cuts and divestments, a person familiar with the situation said.

An external change

O’Neill, a 55-year-old American from Boulder, Colorado, and the first openly gay woman to helm a FTSE 100 company, headed Woodside since 2021, having previously spent 23 years at Exxon.

Under O’Neill’s leadership, Woodside merged with BHP Group’s petroleum arm to create a top 10 global independent oil and gas producer valued at $40bn and doubled Woodside’s oil and gas production.

The acquisition took the company to the US, where it embarked on a major Louisiana liquefied natural gas project, which it is progressing in an LNG market braced for oversupply.

BP spent more than 40 percent of its $16.2bn investment budget in the United States last year and plans to boost its US output to 1 million barrels of oil equivalent per day by the end of the decade.

Markets react

Woodside shares fell as much as 2.9 percent after news of O’Neill’s departure. At BP, shares were up 0.3 percent, compared with a broader index of European energy companies.

Like BP, Woodside shares have underperformed rivals. In absolute terms, though, the stock has risen about 10 percent during O’Neill’s tenure.

BP’s executive vice president, Carol Howle, will serve as interim CEO. Auchincloss, 55, will step down on Thursday and serve in an advisory role until December 2026.

BP said O’Neill’s appointment was part of its long-term succession planning, though it had not publicly announced a search process.

Auchincloss became CEO in 2024, taking over from Bernard Looney, who was fired after lying to the board about personal relationships with colleagues.

After an ill-fated foray into renewables under Looney, BP has promised to increase profitability and cut costs while re-routing spending to focus on oil and gas, launching a review in August of how best to develop and monetise oil and gas production assets.

During BP’s third-quarter earnings call last month, the company did not give an update on the closely watched sale process for its Castrol lubricants unit, the centrepiece of its $20bn asset-sale drive to slash its debt pile.

“We question whether this is set to change BP’s thinking once again on key strategic initiatives – should they defer the sale of Castrol? We think yes. Should they cut the buyback to zero and repair the balance sheet further? We think yes,” said RBC analyst Biraj Borkhataria.

Woodside said in a separate statement that O’Neill was leaving immediately, and it had appointed executive Liz Westcott as acting CEO, while intending to announce a permanent appointment in the first quarter of 2026.