Economy

US food importer sues Trump over 50 percent tariffs on Canadian goods | Courts News

The lawsuit argues Trump bypassed Congress and misused a century-old law to impose sweeping tariffs on Canadian imports.

A US food importer is suing US President Donald Trump over his 50 percent tariffs on Canadian goods, arguing he lacks the legal authority to impose sweeping tariffs without congressional approval.

Gellert Global Group, a New Jersey-based company that imports Canadian cheese, filed the lawsuit on Tuesday in the US Court of International Trade in New York.

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The company says the tariffs are driving up its costs and disrupting its relationships with suppliers on both sides of the border. Between September 16 and October 11, Gellert had paid more than $520,000 in duties, according to the complaint.

“Gellert Global Group has spent generations building trusted relationships with suppliers, customers and partners across the food industry,” said Thomas Gellert, the company’s co-chief executive officer, in a press release. “These tariffs disrupt those relationships overnight and create costs and uncertainty that ripple through the entire supply chain.”

The lawsuit challenges Trump’s decision to use a Depression-era law to impose tariffs on a wide range of Canadian products, including dairy products, furniture, clothing and wine.

Trump first imposed the 50 percent tariffs over the summer, accusing Canada of discriminating against American-made cars, alcohol and dairy products. He expanded the measures in September, adding more products in response to Canadian retaliatory tariffs.

The lawsuit argues that the law doesn’t apply to the Canadian policies the Trump administration says are discriminatory, since two of them “arose in response to the president’s own tariffs, while the third involves Canadian dairy policy governed by the US-Mexico-Canada Agreement (USMCA)”.

It also questions why Canadian cheese is being taxed over disputes involving alcohol and cars.

“No president should have the power to pull a dormant statute off the shelf and use it to impose sweeping tariffs or import bans without the limits Congress required,” said Sara Albrecht, chairman and CEO of the Liberty Justice Center, a nonprofit legal organisation that filed the suit on Gellert’s behalf.

The White House did not immediately respond to a request for comment, according to the Reuters news agency.

At the centre of the case is Section 338 of the Smoot-Hawley Tariff Act of 1930, which allows the president to impose tariffs of up to 50 percent on imports from countries found to discriminate against American businesses.

The provision had never been used until Trump invoked it this year.

The lawsuit argues that newer laws passed by Congress since then, such as Section 301 of the Trade Act of 1974, require investigations, public comment and other safeguards that Gellert says the Trump administration has bypassed, and that these override Section 338.

“The administration cannot skip those protections by reaching for a 1930 statute that no president had ever used to impose a tariff,” said Jeffrey Schwab, the Liberty Justice Center’s senior counsel and director of litigation.

In addition, the lawsuit says that even if Trump is allowed to use the older law, he hasn’t met its requirements, including waiting 30 days before tariffs can be collected on new products added to the list.

The administration only waited seven days to start collecting tariffs on cheese in September, according to the lawsuit.

Gellert is asking the court to declare the tariffs illegal, stop them from being collected, and order refunds with interest for importers who have been impacted.

The lawsuit marks the fourth major legal challenge to Trump’s tariffs.

In February, the US Supreme Court struck down most of the tariffs he imposed in 2025, and a trade court later ruled against a temporary 10 percent global tariff. A separate challenge to tariffs imposed over alleged forced labour in international trade is still pending.

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Global Economy Struggles to Achieve Balance in Divided Times

As leaders gathered in Bangkok, discussions highlighted the fractures between economic winners and losers.

The global economy appears to be on a fragile foundation, and the finance ministers of Argentina, Greece, Nigeria, and Thailand agree that all economies should get their houses in order.

“Ideally, when you put your fiscal house in order, it shouldn’t be because of experience,” said Kyriakos Pierrakakis, the Minister of Economy and Finance for Greece and President of the Eurogroup, during a panel discussion that took place at the annual International Monetary Fund (IMF) and World Bank meetings in Bangkok. “It should be because of inspiration.”

Although the IMF projects global economic growth at 3.1% throughout 2026, its composition has changed.

The global economy is increasingly split between a handful of nations with AI-driven economies and those without. The IMF has upgraded AI-driven economies while it downgraded many fuel-importing nations and those affected by war. 

However, AI may be a curse and a blessing.

“The global economy’s dependence on AI investment enthusiasm creates a vulnerability, with risks of disappointment cycles, as per Amara’s Law, and the potential loss of human control over AI systems,” said fellow panelist Kristalina Georgieva, IMF Managing Director.

Exacerbating the situation are growing excessive export-import imbalances. Developing countries struggle to compete with export-oriented countries that have built their manufacturing base over decades. At the same time, developing economies struggle to compete for capital against an economy that takes in capital for productive use but leaves little for the rest of the world.

“The biggest source of imbalance comes from the two largest economies, China and the United States: China not having enough domestic consumption, exporting a lot, and the U.S. the opposite, not saving enough, having a high level of debt and deficit,” she said. 

Achieving Resiliency

It’s best for a country to put its fiscal house in order during periods of economic calm, but human nature tends to act only amid a crisis, said Georgieva. “Nonetheless, we have excellent examples of countries that have brought back fiscal discipline. They have taken the reforms, structural reforms that promote growth.”

The formula for building a resilient economy is discipline, transparency, and consistency, which, according to Olayemi Cardoso, Governor of the Central Bank of Nigeria, build credibility, said Cardoso, who spoke on the panel.

To address a persistent currency crisis and the loss of investor confidence, Nigeria eliminated its fuel subsidy in 2023 and, in June 2024, implemented multiple foreign exchange rates.

“These should have been done a long time ago, but they were not done,” he said.

The central bank also enacted an aggressive 800-basis-point (bp) increase in 2024, including a single 400-bp increase. As a result, the central bank brought inflation down by about 20 percentage points, to about 15%, and raised foreign reserves to their highest level in 18 years.

“Painful though they were, it brought back credibility because we were consistent in saying certain things and doing them,” said Cardoso.

In Argentina, the government eliminated its fiscal deficit, which was 5% of GDP, by cutting spending by 30% and growing the economy for the third consecutive year through increased exports. These measures helped bring inflation down to approximately 30% today from 211% in 2023.

“We have a fiscal surplus, a commercial surplus, and a current account surplus,” said panelist Luis Caputo, Argentina’s Minister of Economy. “The way we will continue in the following years will be by fulfilling our goal of reducing the weight of the state in the economy.”

Thailand aims to maintain macroeconomic stability amid an energy shock and a few years of supply-chain fragmentation. Even as part of the AI value chain, it has kept sovereign bond yields low. 

“Our government 10-year yield is around 2.3%, so much lower than the U.S. and Europe, thanks to fiscal discipline,” said Ekniti Nitithanprapas, Thailand’s Deputy Prime Minister and Finance Minister.

The Thai government has also made structural changes to turn these economic shocks into opportunities for low-income small and mid-sized enterprises by helping them adapt to current shocks and prepare for future ones.

It also expects to work more closely with its ASEAN partners to expand trade and investment opportunities to establish a resilient economy.

“For example, 22% of our trade is with ASEAN countries compared to 60% for the E.U.,” he said. “So, we could do more trade together.”

In Europe, the EU is working to close gaps in its pan-European reforms, which each member state must implement.

“Fragmentation in Europe is a strategic tax,” said Greece’s Pierrakakis. “The IMF has made a calculation that the barriers that exist in services or in manufacturing are equivalent to having a 40%-44% tariff for manufacturing.”

Shocks Happen

Even if countries can build a resilient economy, Argentina’s Caputo was skeptical that it would withstand future shocks.

“It looks like these shocks are going to take longer than anyone of us would have anticipated or hoped,” he said. “If that is the case, resilience by definition will have to last longer. And we don’t want to rely that much on that because resilience is there until it is not anymore.”

Caputo also noted that the whole world wouldn’t need to collapse to create a need for resilience. “Just one important country getting into trouble could probably generate systemic risk and affect us all.”

When questioned about France’s current economic distress, Greece’s Pierrakakis responded, “Well, I would say first we’re mindful, but we’re not alert. And we’re not alert in the sense that we know the fundamentals are there and they’re strong. If there’s one key word about Europe, it’s resilience.”

Rob Daly covers the economy and fintech. He can be reached at rdaly@gfmag.com

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Saudi Arabia cancels 2026 ‘Davos in the Desert’ amid Houthi attacks | Business and Economy News

Riyadh postpones flagship investment conference until 2027, orders government staff to work from home.

Saudi Arabia’s Future Investment Initiative (FII) conference has been postponed until next year, according to a statement on the official website, as deadly strikes by the Iran-backed Houthis against the kingdom continue.

The annual event was due to start next week on October 26 and run through October 29, with a date next year to be announced “very soon”, the statement released on Tuesday said.

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FII Institute chief executive officer Dr Maha Bint Mishari Al Saud said the decision “comes from a deep commitment to our partners, members, speakers and delegates”.

“Because this is our landmark tenth edition, we want to ensure it delivers the full scale, extraordinary quality, and unforgettable impact that our community has come to expect and truly deserves,” she said.

Informally dubbed “Davos in the Desert”, a nod to the World Economic Forum’s annual meeting in Switzerland, the state-backed conference showcases the kingdom’s ambitious investment plans in a bid to attract billions of dollars needed to fund its economic transformation away from hydrocarbons towards tourism, sport and technology.

Expected speakers included: Alphabet & Google’s president and chief information officer, Ruth Porat; Goldman Sachs Group chairman and CEO David Solomon; and BlackRock chairman and CEO Laurence Fink, according to the FII website.

Smoke and flames rise from King Khalid Airport, after Yemen's Iran-backed Houthis said they attacked the airport, in Riyadh, Saudi Arabia, October 8, 2026, in this screengrab obtained from a social media video [Reuters]
Smoke and flames rise from King Khalid International after Yemen’s Houthis said they attacked the airport in Riyadh, Saudi Arabia, on October 8, 2026, in this screengrab obtained from a social media video [Reuters]

Fighting between a Saudi-led coalition supporting Yemen’s internationally recognised government and the Iran-aligned Houthis has escalated in recent weeks.

The Houthis, also known as Ansar Allah, have hit military, energy and civilian infrastructure across Saudi Arabia, including Riyadh’s international airport, killing at least 18 people and injuring hundreds more.

Government staff to work from home

Government agencies in the Saudi capital, Riyadh, have told employees to work from home, one worker and two consultants told the AFP news agency, as the city comes under repeated attack from the Houthis.

The Kingdom Centre, a 99‑storey tower in downtown Riyadh that houses the International Monetary Fund’s regional office, also requested workers stay away until further notice.

On Sunday, an employee of a government agency in the capital received a message saying, “It has been decided to implement remote work from Monday to Thursday this week”. The message added: “We ask everyone to continue their activities as normal.”

Companies based in the King Abdullah Financial District, which hosts offices of major United States firms, have also asked employees to work from home, according to other sources.

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Ex-OpenAI employee accused of planting device has Saudi backing: Prosecutor | Business and Economy News

US federal prosecutors allege the defendant was in frequent contact with unnamed member of royal family.

An ex-OpenAI engineer accused of planting a recording device in an executive conference room at the AI company appears to have received considerable support from the Saudi government, United States prosecutors have said in a court filing.

Federal prosecutors allege that the defendant, Abdulrahman Alfozan, 35, was in frequent communication with an unnamed member of the Saudi royal family and that a Saudi military official paid for a one-way plane ticket for Alfozan’s wife and young son to return to Saudi Arabia after his arrest, according to the court document, made public late on Sunday.

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Prosecutors made those allegations as they asked a federal judge to keep Alfozan in US custody to await trial, arguing he is a flight risk. Alfozan, a Saudi national and lawful permanent resident in the US, is scheduled to appear in federal court in San Francisco later on Monday.

The case has highlighted security challenges around sensitive AI research as companies and governments compete fiercely for an edge in the transformational technology.

“The defendant went to significant lengths to create customized, encrypted recording devices to secretly record highly sensitive meetings involving senior OpenAI personnel and executives, high-level business counterparts, and government officials, all while communicating with individuals of significance in Saudi Arabia and pursuing opportunities in — and making plans to travel to — Saudi Arabia,” prosecutors wrote in a detention memo.

The Saudi government media office did not immediately respond to a request for comment. A lawyer for Alfozan did not immediately respond to a request for comment.

The lawyer, William Pernik, previously asked for Alfozan to be released from custody, subject to conditions including location monitoring and surrendering his passport, and said Alfozan had spent the last 15 years in the US and had applied to become a citizen.

The lawyer said a planned trip by Alfozan to Saudi Arabia this month was booked before he was under investigation and was for “family and immigration reasons”, according to a court filing.

Investigation remains active

US prosecutors charged Alfozan last week with using an electronic device to intercept oral communications. Alfozan plugged a recording device into the back of a television in an executive conference room at one of OpenAI’s San Francisco buildings, according to a criminal complaint.

Meetings involving government officials took place in the conference room around the time the device was installed, according to the prosecutors’ detention memo.

Prosecutors said the investigation remains active and additional charges could be brought against Alfozan.

A member of the Saudi royal family sought to recruit Alfozan for an AI-focused role in Saudi Arabia, writing in one message, “Saudi needs you more then [sic] the US!” Alfozan replied, “100,” according to messages cited by prosecutors.

Before his arrest, Alfozan was scheduled to fly to Riyadh during a planned two-month parental leave. His wife told investigators that she and their son planned to move permanently to Saudi Arabia and that Alfozan eventually intended to join them, according to prosecutors.

In an Arabic-language interview on the Identity Capital podcast last month, Alfozan said that he visits Saudi Arabia three or four times a year, follows developments there and advises or mentors Saudi startups.

He said meeting Prince Mohammed bin Salman, then deputy crown prince, during a 2016 gathering with young Saudi tech workers in Silicon Valley persuaded him to learn at a top tech company before bringing those skills back home.

While Alfozan was working at Facebook, he and other Saudis in Silicon Valley formed a consulting initiative that linked Saudi public- and private-sector organisations with expertise in big data, the internet of things and machine learning.

OpenAI previously said it discovered the device on September 30 and referred the matter to the FBI.

Al Jazeera has reached out to the Saudi embassy for comment.

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Chuck Schumer urges FCC to block AI robocalls before elections | US Midterm Elections 2026 News

Chuck Schumer urges FCC to reject petition allowing AI robocalls ahead of key November midterm elections.

United States Senate Democratic leader Chuck Schumer of New York has urged the Federal Communications Commission (FCC) not to approve a petition by the conservative group Club for Growth to allow AI-generated robocalls ahead of the November midterm elections.

“Under this change, campaigns could use their opponents’ voice to send out a message that is, at best, disingenuous and, at worst, a blatant lie,” Schumer said on Monday.

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The petition was originally filed on August 31, and the public comment period began on September 4 and expires on Monday.

Earlier this month, Anna Gomez, the Democratic member of the FCC, urged her colleagues not to allow consideration of the petition brought by the national conservative fiscal policy organisation.

Her concerns echoed Schumer’s. “[If] the FCC allows a dark money group to flood Americans’ phones with AI-generated robocalls they never agreed to receive, it would bring chaos so close to Election Day,” commissioner Gomez told the Reuters news agency at the time.

There is precedent for the concerns being raised. In the 2024 presidential election, ahead of the New Hampshire primary, voters received an AI-generated version in the voice of President Joe Biden, the then Democratic incumbent, telling them not to vote. The FCC said that a political consultant working with longshot primary challenger Dean Phillips was responsible.

At the state level, Louisiana, Tennessee and Vermont passed laws this year requiring disclosures for AI-generated campaign phone calls. While robocalls have been used in political campaigns for years, FCC rules prohibit such calls to cellphones without prior consent, but the restrictions do not apply to landlines.

Club for Growth’s president, David McIntosh, in a statement earlier this month, said that the group is asking for “the FCC to treat First Amendment-protected political speech the same way it already treats wireless calls about package deliveries, bank accounts, and doctor’s appointments”.

“There is no one at the FCC that has expressed any interest in moving to an order on this or any of the petitions, and there are zero plans to do so. The FCC seeks comment on petitions that come in as a matter of normal procedure,” a spokesperson for the FCC told Al Jazeera.

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Democrats gain ground with AAPI adults as trust in Republicans fades, AP-NORC/AAPI Data poll finds

Asian Americans, Native Hawaiians and Pacific Islander adults have become more disillusioned with President Trump and Republicans as the Nov. 3 midterm elections approach, according to a new AP-NORC/AAPI Data poll, giving Democrats a substantial edge on major issues like the economy and health care.

The survey, which was conducted from Sept. 8-15 by AAPI Data and The Associated Press-NORC Center for Public Affairs Research, reveals that Trump’s standing on the economy has fallen among AAPI adults over the course of his second term.

About one-quarter of AAPI adults approve of the way Trump is handling his job as president overall. Only about 2 in 10 approve of his performance on the economy, which the vast majority of AAPI adults see as one of the most important issues for the upcoming election.

But although AAPI adults trust Democrats more than Republicans on a wide range of issues, views of the Democratic Party itself are still split.

Rebecca Larocco, a 45-year-old Korean American in Corning, Iowa, voted for Trump in 2016 and is leaning Republican in the midterm elections. She approves of his immigration policies but is unsure about Trump’s handling of the economy as the Iran war continues to compound gas prices.

“Where I’m at, it’s went up almost $1.50 (a gallon),” she said. “I didn’t expect to go into war at all, that has been definitely unexpected and I’m not sure… I’m just hoping they’ll do what they’re saying and get our economy back on track, get immigration and crime lowered.”

The economy is a top issue for AAPI adults

The economy remains top of mind for an overwhelming majority of the AAPI adult population when they consider the midterms. With the ongoing Iran war affecting gas prices and other costs staying elevated, Americans overall are deeply pessimistic about the state of the economy and see it as a high priority for the midterms. That includes AAPI adults — according to the poll, about 9 in 10 rank the economy as one of the most important issues for the upcoming election, and about 8 in 10 say this about the cost of living.

The economy, the cost of living and healthcare dwarf other issues for AAPI adults. About 7 in 10 AAPI adults say healthcare is one of the most important issues for the election, while only about half say this about foreign policy, crime, immigration, election fairness or climate change.

At the same time, Trump’s economic approval among AAPI adults has dropped about 10 percentage points over the course of the year, and there are other signs his popularity has waned with this group. In late 2024, just after the election, about 4 in 10 AAPI adults had a “somewhat” or “very” favorable view of Trump. That’s fallen to about 3 in 10 now.

“What the data show is that any gains that he made not only during the 2024 election — there was a bit of a honeymoon period that Trump enjoyed after the election before Inauguration Day — that has now largely disappeared,” said Karthick Ramakrishnan, founder and executive director of AAPI Data.

Len Takahashi, 57, of Universal City, Texas, describes himself as conservative but voted for Democrats in the last three presidential elections and for Republicans in midterm elections. For this midterm election, he is simply open to candidates who prioritize the economy.

“I would like policies that look in the best interest of the American public,” said Takahashi, who is Japanese American. “That could be bringing down spending, a balanced budget of U.S. spending, bringing down inflation, working towards a more stable economy and, lastly, just a better atmosphere between the far left and far right.”

AAPIs trust Democrats more on most issues but are not entirely sold on the party

Democrats have gained at Republicans’ expense since Trump returned to the White House when it comes to AAPI adults’ trust in handling many key issues.

In a March 2025 poll, AAPI adults were evenly divided over which political party would better handle the economy and immigration. Now, Democrats have a roughly 20-percentage-point advantage on both issues.

Meanwhile, around two-thirds of AAPI adults have a “somewhat” or “very” unfavorable view of the GOP. Only about one-quarter have a “somewhat” or “very” favorable view.

But while trust in the Democrats on specific issues has increased, AAPI adults are ambivalent about the party as a whole. About half, 48%, of AAPI adults have a “somewhat” or “very” unfavorable impression of the Democratic Party, while 44% have a “somewhat” or “very” favorable impression.

A separate AP-NORC survey of registered voters in September found, similarly, that while voters in general are deeply dissatisfied with Trump and the GOP, few think either party is capable of solving important problems.

Louise Rider, 40, is a Democrat living in Chicago. She believes Democrats are better than Republicans across all issues but says she’s unhappy with how the party has governed.

“I don’t think the Democrats are doing great, I think they need a lot of change as a party,” she said. “It’s kind of a helpless feeling, that nothing will get done with both parties unless there’s major changes.”

Some Republicans still stand behind Trump. James Finley, 74, of Lenox, Massachusetts, said Trump deserves some understanding because he cannot bring down high prices overnight. When it comes to Republicans in general, Finley is a little more critical.

“They’ve had the majority for a couple of years,” said Finley, whose ancestry includes Japanese heritage. “I think they could have done a little bit more or maybe a lot more in terms of passing certain things that I wanted to pass.”

Still, he sticks to the party line and because “all I ever hear from Democrats is to get Trump,” Finley said.

AAPIs concerned about fair midterm elections

As the election approaches, many AAPI adults are worried about problems with misinformation, legal challenges to the results, and voter suppression. About half of AAPI adults say it’s a “major problem” in U.S. elections that people who are eligible are not allowed to vote, while about two-thirds see foreign government attempts to influence results as a “major” problem.

Looking ahead to the November election, about half of AAPI adults are “extremely” or “very” concerned about fake or false information about the candidates, and about half also feel this way about legal challenges to the election results.

Finley is unsure if the voting process can be tightly monitored to prevent undocumented or unregistered people from attempting to vote.

But Takahashi, the conservative from Texas, is worried that Trump will try to manipulate the election.

He’s concerned, he said, that Trump would amplify claims of “fraud in the election system” should the midterms not go in his favor. “(He’ll) make that a point to distract the American public,” he said.

Tang, Jiang and Sanders write for the Associated Press. Tang reported from Phoenix and Jiang from New York. The poll of 1,023 U.S. adults who are Asian American, Native Hawaiian and Pacific Islander was conducted Sept. 8-15, using a sample drawn from NORC’s probability-based Amplify AAPI Panel, designed to be representative of the Asian American, Native Hawaiian and Pacific Islander population. The margin of sampling error for all respondents is ±4.7 percentage points. This poll is part of an ongoing project exploring the views of Asian Americans, Native Hawaiians and Pacific Islanders, which are usually not highlighted in other surveys because of small sample sizes and lack of linguistic representation.

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China’s economy grows 4.5 percent in Q3, beating forecasts | Business and Economy News

GDP growth picks up from Q2 amid AI-driven boom in exports.

China’s economy has grown faster than expected in the most recent quarter amid booming exports underpinned by artificial intelligence, according to official figures.

China’s gross domestic product (GDP) expanded 4.5 percent in the July-September period from the same quarter a year earlier, picking up from 4.3 percent growth in the second quarter and beating most analysts’ forecasts, figures released on Monday by the National Bureau of Statistics showed.

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During the first nine months of the year, GDP grew 4.6 percent year-on-year, according to the preliminary figures.

While China’s technology-related exports have surged during the AI boom, growth in the world’s second-largest economy has been dampened by weak domestic demand and a sagging property market.

China’s ruling Communist Party has set a GDP growth target of 4.5 to 5 percent for 2026, which would be among the slowest expansions in decades, excluding during the COVID-19 pandemic.

Chinese exports surged more than 16 percent in the first three quarters of the year to reach 23.19 billion yuan ($3.47bn), according to the official data, largely due to strong demand for semiconductors and other tech-related goods.

Retail sales, a key measure of domestic consumption, increased 1.1 percent year-on-year in September and 2.6 percent during the first nine months of 2026.

Industrial production, which measures output in sectors such as manufacturing and mining, rose 5.5 percent in September, taking growth in the first three quarters to 5.3 percent.

Investment in fixed assets, which covers spending on real estate, factories and machinery, edged up 0.7 percent last month but contracted 7.2 percent during the January-September period.

Zhiguo He, a finance professor at Stanford University’s Graduate School of Business who studies the Chinese economy, said that while China’s economy is on track to hit official targets, Beijing will be wary of the continuing reliance on export-driven growth.

“I expect Beijing is getting 4.5 percent as wanted,” He told Al Jazeera.

“A managed slow slowdown is the best Beijing can hope for,” he said.

“Real estate is still shrinking. This is what Beijing wanted and a good thing, and China’s households have been adapting their expectations based on this.”

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France protests live: Macron to address nation after protests | Emmanuel Macron News

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Why have France’s school protests become a wider political crisis? | Protests News

Protests are sweeping France as anger over conditions in schools meets frustration with high living costs and a government accused of doing little to address problems facing people.

About 550,000 people demonstrated nationwide on Saturday, according to the Interior Ministry. Most marched peacefully, while a small minority attacked buildings, looted shops and clashed with police, who fired tear gas and charged protesters.

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Prime Minister Sebastien Lecornu said 1,200 people were arrested and 150 police officers were injured. Behind the confrontations lies a political crisis, fuelled by anger at deteriorating services and overstretched household budgets, and compounded by a sense that France’s political institutions offer little hope of change.

Here is how school blockades became a nationwide movement – and what that means for President Emmanuel Macron.

How have the protests spread, what are protesters demanding?

The movement began last month in high schools in Paris’ working-class northern suburbs, where students protested against teacher shortages and poor facilities. School blockades and demonstrations later spread to cities including Bordeaux, Rennes, Nantes, Lyon, Lille and Marseille.

Saturday brought together students and trade unions, alongside supporters of the “yellow vest” movement that emerged in 2018 to challenge rising living costs and economic inequality.

Emile Chabal, a professor of contemporary history at the University of Edinburgh, told Al Jazeera the demonstrations were “the logical outcome of a series of protests” stretching back to the yellow vests.

That movement was driven by financial pressures and resentment at “the French presidential system”, he told Al Jazeera, alluding to a structure which often leads to the election of a centrist candidate, such as President Emmanuel Macron.

Saturday combined those longstanding grievances with students’ anger at deteriorating state schools. The yellow vests had demanded better public services.

Bringing students’ grievances together with wider social demands, therefore, represented “the worst possible outcome for the French government”, Chabal said.

Students’ immediate demands concern conditions in France’s lycees (public high schools), which generally educate pupils aged 15 to 18. They want smaller classes, enough teachers, better buildings and less exhausting timetables. Their complaints also reflect broader concerns about whether the state can provide the education and opportunities young people need.

But for workers, including school staff, the dispute also concerns wages and the resources available to deliver public services.

The school protests coincided with a nationwide public sector strike against the government’s budget plans. Bringing all these concerns together under one umbrella represented “the worst possible outcome for the French government”, Chabal said.

It comes as the proposed 2027 budget includes a 54 billion euro ($60.8bn) package of cost-cutting and tax measures, which the government says is necessary to reduce France’s deficit. The proposals include freezing the pay scale used to calculate civil servants’ basic salaries, which unions say would be the fourth consecutive annual freeze.

Donatella della Porta, a sociologist and political scientist, said students were inspiring wider mobilisation around inequality, cuts to public investment and democratic rights, with demands for social welfare spending rather than militarisation.

“They do not want to fight wars; they want a different future,” she told Al Jazeera.

She also linked the movement to young people’s mobilisation over Gaza, with Palestinian flags appearing at demonstrations across several European countries.

How has the government responded?

The government has focused its immediate response on public order, with President Macron saying those responsible for violence would be “prosecuted and punished”.

His comments came as a fire largely destroyed the historic town hall in the city of Limoges, while public buildings and shops were attacked elsewhere.

But those involved in violence represent only a small minority of the much larger mobilisation. Jean-Luc Melenchon, leader of the left-wing France Unbowed party, has accused the government of repressing school students and allowing the confrontation to intensify.

His argument reflects a wider political dispute about whether the government treats the protests chiefly as a security problem or addresses the grievances that have brought different groups together.

Experts say France’s problems extend beyond disagreement over individual budget measures and reflect deeper discontent. Emile Chabal, from the University of Edinburgh, said political paralysis since the 2024 parliamentary elections, which left no bloc with an outright majority, had created “an environment in which no political party or movement is able to channel social discontent”.

That fragmentation makes it difficult to build a durable agreement on spending, taxation or public services. It also leaves protesters questioning whether changing governments produces meaningful changes in policy.

The protests are also “a tough blow for Macron”, Chabal said, whose promises of youthful energy and a reformed, dynamic France have been undermined by “his inability to articulate his political project and his deeply unempathetic persona”.

Chabal added that the unrest included violence sometimes seen on the fringes of French demonstrations, with direct-action tactics associated with the yellow vests. Targets included shops and, more unusually, public buildings. He described the destruction of Limoges’ town hall as particularly significant because of its place in France’s civic history.

Other researchers emphasise the role of policing. Guya Accornero, a specialist in social movements at Lisbon’s University Institute, said previous confrontations had created lasting tensions between protesters and police.

During the current protests, a 15-year-old lost a hand to a police stun grenade, while a 14-year-old suffered a shattered jaw after being struck by a tear gas canister fired at close range, according to Human Rights Watch. The organisation condemned excessive force against children, saying the demonstrations had been overwhelmingly peaceful.

“Young people have been violently repressed also when using non-disruptive tactics,” she told Al Jazeera.

Who could benefit politically?

There is no clear answer from the experts who spoke to Al Jazeera. Paul Smith, an associate professor in French history and politics at the University of Nottingham, believes far-right leader Marine Le Pen stands to gain.

“I see only one beneficiary and that’s Le Pen,” he told Al Jazeera, suggesting the unrest could also damage Melenchon’s presidential prospects.

Chabal cautioned against assuming a far-right gain, but he said fear of disorder had historically benefited conservative or centrist parties in France, including after the 1968 protests.

Le Pen has not entirely dismissed the protesters’ grievances, describing them on X on Saturday as “legitimate social demands”, while claiming they had been “held hostage by the far left”.

The far-right may seek to reap the rewards of public discontent, but experts say it is more likely to channel that anger towards immigration and the scapegoating of migrants, rather than blaming the structures of neoliberalism and capitalism for the protesters’ woes, as Melenchon has suggested.

With a presidential election due in April 2027, candidates face competing pressures, demonstrating that they can restore order while convincing voters they will address the conditions behind the mobilisation.

The challenge, Chabal said, is how to create change in “an environment in which no political party or movement is able to channel social discontent”.

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Paris left reeling as student-led protests turn chaotic | Protests News

Paris, France – France is counting the cost of a day of unrest after hundreds of thousands of people took to the streets nationwide, in the largest mobilisation since protests over education reforms and the cost of living began last month.

At Place de la Republique, in the heart of the French capital, people on Sunday surveyed the previous day’s destruction in dismay: smashed windows, gutted buildings, looted shops.

“I find it unacceptable – absolutely unacceptable,” said Rabah, who has been living in Paris for more than 70 years. “Back in the day, we also demonstrated, but peacefully,” he said.

Staring at the burned skeleton of what used to be a newspaper stand, 56-year-old Claire was also shaken. “I love Paris so much, and seeing it like this makes me furious,” she said. “It’s absolutely appalling. I’m actually quite overcome with emotion.”

Nearby, the statue of Marianne, the symbol of the French Republic, was covered in graffiti. “Those who sow misery reap anger,” read one inscription.

A pedestrian walks past a damaged front window of a shop, in central Paris on October 18, 2026, a day after nationwide protests against the "high cost of living".
A pedestrian walks past a damaged front window of a shop, in central Paris [AFP]

The student-led protests began in mid-September, caused by grievances ranging from overcrowded classrooms and teacher shortages to systemic inequality and a lack of opportunity.

The movement quickly spilled out of the schoolyards and into the streets, tapping into broader social and economic anxieties.

On Saturday, these complaints converged in a mobilisation that saw a nationwide turnout of 550,000 people, according to authorities; unions and organisers put the estimate at 800,000.

But while the vast majority of demonstrators rallied peacefully, the scale of the violent unrest threatened to eclipse their message. In Paris, there was also heavy use of tear gas and stun grenades by the police, including before the start of the march, which set the tone for a tense day.

“I marched from the 10th arrondissement town hall to Place de Clichy. I was there from start to finish, and it was very peaceful – just all kinds of people, all of them nonviolent,” said Stephanie, a 23-year-old Parisian student.

“But once again, the violence was so spectacular that the actual message – the reasons behind the protesters’ grievances – was never conveyed,” she said.

Macron to address nation

French President Emmanuel Macron, whose second and final term ends next year, will give a televised address to the nation at 18:00 GMT on Sunday after meeting government ministers, his office announced.

Interior Minister Laurent Nunez said nearly 1,800 people had been arrested – almost half of them in Paris – and more than 500 police officers, gendarmes and firefighters had been injured in the unrest.

“Protesting is a fundamental right. Causing disorder through violence and in a concerted manner is not,” he said on Sunday.

During Saturday’s protest in Paris, Al Jazeera saw groups of black-clad, masked young men smashing shop windows with what appeared to be golf clubs before fleeing with bags of stolen goods.

In Marseille, France’s second-largest city, dozens of shops were looted and a group of people broke into the city hall before being forced out.

“Students and others have real claims they want to air which no one is listening to now because idiots are smashing everything,” said Benoit Payan, the city’s mayor.

In Limoges, footage showed flames engulfing the city hall as the fire spread through the historic building. Public buildings were also damaged in Bordeaux and other cities.

PARIS, FRANCE - OCTOBER 17: A protester holds a rock to throw at police as a kiosk burns during a demonstration near Place de la République, as the the Gilets Jaunes join students for a weekend of action on October 17, 2026 in Paris, France. The involvement of the Gilets Jaunes (Yellow Vests) with the ongoing French school blockades expands the scope of these demonstrations by linking localised student grievances to broader economic policies. Student unions originally initiated the movement to protest underfunding, deteriorating infrastructure, and acute teacher shortages across French high schools and universities. By joining the protests, the Gilets Jaunes introduce their established platform against austerity cuts, rising living costs, and surging fuel prices into the youth-led action. (Photo by Carl Court/Getty Images)
A protester holds a rock during the demonstration near Place de la Republique in Paris [Carl Court/Getty Images]

Police conduct has also come under scrutiny. France’s police inspectorate, the IGPN, had opened 36 investigations into alleged police violence since the high-school protests began, according to figures released by the Ministry of the Interior on October 13. The figure predates Saturday’s demonstrations.

Human rights lawyers have described some of their clients’ injuries as comparable to those seen in conflict zones. These include a minor who has lost his hand, another with his jaw smashed and a third pupil who lost sight in one eye.

“There is an increasingly systematic use of crowd-control measures that would normally be reserved for much more serious situations,” said Christophe Calvao, president of the Paris Young Lawyers’ Union. “This only serves to inflame tensions and make people even angrier.”

The government now faces the challenge of responding to widespread social discontent while trying to pass a budget aimed at bringing France’s public finances under control.

Prime Minister Sebastien Lecornu wants to reduce the country’s deficit through spending restraint and tax measures – a move that will likely deepen public anger. Cuts to France’s generous welfare system have traditionally faced strong public resistance.

All of this takes place in a highly toxic political environment as parties harden their positions ahead of next year’s presidential election.

Jean-Luc Melenchon, the leader of the left-wing France Unbowed party and potential presidential contender who has sought to appeal to young voters, accused the government of fuelling the unrest.

“In Paris, aberrant leadership has opened the door to chaos. Those in charge no longer know what to do; the rank and file are afraid and are running wild,” he said.

Lecornu hit back. “This is YOUR political responsibility,” said the prime minister on social media, accusing far-left groups of orchestrating the violence.

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Egypt’s Sisi seeks authorisation for defence assistance to Saudi Arabia | Abdel Fattah el-Sisi News

Egyptian president pledges ‘any measure’ to help defend Saudi Arabia ‘if it is requested of us’.

Egypt’s President Abdel Fattah el-Sisi has called for an emergency parliamentary session to authorise him to approve any requests from Saudi Arabia for defence assistance, if Riyadh were to ask.

Speaking at a graduation ceremony at the Egyptian Military Academy on Saturday, el-Sisi emphasised Cairo’s readiness to back the kingdom.

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Egypt will “carry out any measure to protect” Saudi Arabia “in accordance with the directives of His Majesty King Salman and the directives of the Crown Prince, Mohammed bin Salman”, he said.

“I know that this matter requires the approval of the Egyptian parliament, and I hope that parliament will convene in an emergency session to give us this authorisation, if it is requested of us,” he said.

“I am not speaking in order for us to fight anyone or attack anyone. I am speaking only for defence.”

Attacks on Saudi Arabia

The request follows a barrage of attacks on the kingdom from Yemen’s Iran-backed Houthis, including airports and oil facilities.

Recent Houthi strikes on Saudi Arabia have mainly targeted key infrastructure on the outskirts of the capital, Riyadh, but they appear to be edging closer to the city centre.

Houthi attacks on Riyadh’s King Khalid International Airport earlier this month killed 14 people and wounded more than 300. Houthi attacks have also been reported on other airports, including Dammam, Abha, Jazan and Najran.

Yemen’s Saudi-backed, internationally recognised government launched a full-scale military campaign against the Houthis this month to recapture territory seized by them.

El-Sisi had backed Saudi calls for secure and unhindered navigation in the Red Sea in a meeting with the Saudi Crown Prince, known as MBS, in Cairo last month.

A statement from the Egyptian presidency then said that “the security of Saudi Arabia and the Gulf states is an integral part of Egypt’s national security”.

Red Sea security

That meeting came just days after the Houthis seized Yemen’s Red Sea coast, gaining significant control over the Bab al-Mandeb strait, the southern gateway to the Suez Canal.

Saudi Arabia already has a defence pact with Pakistan and Turkiye, known as the Mecca Alliance for Defence, which was signed in August.

Earlier this month, the three countries agreed to activate “deterrence measures” under the pact and rapidly deploy forces to the Gulf kingdom to counter attacks by Yemen’s Houthis.

Analysts say Riyadh is looking for help to protect the kingdom and Red Sea shipping and that Egypt, whose Suez Canal revenue depends on the same traffic, is an obvious partner.

They say Egypt is eager to prevent Iran and its allies from imposing control over the region, especially over maritime traffic in the Red Sea, given the direct repercussions for the Suez Canal.

Saudi Arabia has accused Iran of encouraging Houthi attacks against the kingdom, a claim Tehran rejects. Iran has offered assistance to halt the conflict between the two sides.

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Solar power booms in Philippines as war on Iran spikes energy costs | Renewable Energy News

Manila, Philippines – Keith Cantera and his family have been thinking about having their own solar power grid at home for years. But spending up to $5,000 for solar panels was nothing to scoff at, so they put the idea on the back burner.

It all changed this year when the United States-Israel war on Iran rattled global energy markets and sent electricity prices soaring. From paying a monthly bill of about $150 before the war began in late February, Cantera said his family went to forking out as much as $220.

Eight months later, they are having solar panels installed on their rooftop.

“The cost is about the same as paying our electric bills for three or four years based on the current rate,” Cantera said. “But in the fifth year, we’ll have recovered our investment, and electricity will essentially be free.”

Cantera is one of a growing number of Filipino homeowners turning to solar power in a country that had Southeast Asia’s highest electricity costs even before the war. They were comparable only to Singapore, where the average income is more than 10 times higher.

A report by the energy think tank Ember estimated that rooftop panels had nearly doubled in the Philippines since early 2025.

And in the first months of the war from March to May, the rush for solar power led to $407m in panel imports, according to government trade data from China, where most panels are manufactured. The Philippines became the biggest single overseas market for that period. Only the Netherlands bought more, but it redistributes them to the rest of Europe.

Lexus Grepo, CEO of the solar power supplier Solarmaxx, can attest to the boom.

“There is a 30-day wait because solar panel shipments can’t keep up,” Grepo said. “In March, we had 40 projects, which was almost triple our monthly clientele. Since then, we have been setting up 25 to 30 systems a month.”

Grepo does not expect demand to slow down even if tensions in the Middle East ease and shipping routes for energy supplies reopen.

“I think people now realise that the world is an unpredictable place, so they have to be ready for any eventuality. Filipinos now see that they don’t necessarily have to be at the mercy of the global energy market.”

The Philippines, one of the few countries in the region where electricity is not subsidised, relies on imported coal and gas for more than 70 percent of its power mix. The value of its currency, the peso, which has slid to a record low of more than 63 to the US dollar, is making these imports even costlier.

In late March, President Ferdinand Marcos Jr declared a national energy emergency in response to the war ⁠and what he described as the “imminent danger” posed to the national energy supply. Still, electricity rates have continued to increase.

The shift to solar is also partly driven by anger at electric companies that have come under scrutiny for charging customers for so-called system losses, which include illegal connections.

Cantera said learning about having to pay for someone else’s electricity consumption was the last straw.

“Who would agree to paying for something that you did not use? It’s not like the money we spend for electricity just fell from heaven,” he added.

But while the soaring demand is real, the upfront cost of a solar power system is still too high for most Filipinos. The government in March launched a new initiative offering loans for residential rooftop installations, but these are available only to public sector workers.

What officials hope can bring power rates down for the majority of people are the dozens of renewable energy projects in the pipeline, including a 3,500-hectare (8,650-acre) solar farm north of the capital, Manila, that is projected to be the largest in the world. When fully operational, the project is expected to generate 850 megawatts of electricity for 2.4 million households.

But some consumers said such projects could take years to complete, leaving them with ballooning electricity bills unless they take action themselves.

“It’s just so unpredictable nowadays. You have the impending El Nino weather pattern. There’s still war, the continuing fuel price hikes and so much more,” Cantera said. “So why not utilise a natural resource?”

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Meta employees say Lula’s accounts restricted in Brazil election: Report | Social Media News

The messages, reported by a Brazilian daily, say the platform recommended Bolsonaro’s profile and his WhatsApp channel.

Employees at Meta have acknowledged in internal communications that the Instagram accounts of Brazilian President Luiz Inacio Lula da Silva were negatively affected by restrictions during the country’s election, media reports say.

The messages, reported on Friday by Brazilian daily Folha de S Paulo, also acknowledged the platform recommended the profile of Lula challenger Senator Flavio Bolsonaro, as well as his WhatsApp channel. Folha, the Sao Paulo-based paper, cited messages it had reviewed.

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Meta told the Reuters news agency that the technical issues cited in the report were already public and the conversations it referenced related solely to the severity of the issues, not political interference.

“Any suggestion that Meta favors one side is false,” it added in a statement.

Lula, the left-wing incumbent, will face right-wing challenger Bolsonaro in a presidential runoff on October 25, following a stronger-than-expected performance by the senator in the first-round vote earlier this month.

Friday’s report came on the heels of a Brazilian court ruling on Thursday that ordered Meta to immediately adopt measures to provide equal treatment of the two candidates ahead of the runoff.

The ruling by a judge in Brazil’s top electoral court was made shortly after Lula filed a complaint that accused the tech giant – which owns Instagram, Facebook and WhatsApp – of using biased algorithms and AI restrictions to favour opposition candidate Bolsonaro ahead of the election.

Justice Marco Aurelio Bellizze ruled that Meta cannot reduce the distribution of political content, restrict searches or remove posts in a way that creates an imbalance between Lula and Bolsonaro. His ruling also orders the company to ensure its artificial intelligence tool applies identical criteria to both candidacies.

Bellizze said in his ruling that Meta must pay a fine of 500,000 reais ($98,700) per day if it fails to comply.

According to Lula’s party, some of his posts appeared without a share button and had reduced reach. Options for reactions, sharing, audio or accelerated speed were also missing.

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Why is China buying up gold? | Explainer News

China is increasing its gold reserves in a bid to reduce its dependence on US dollar assets and protect against financial and geopolitical risks, analysts say, while households are turning to the precious metal amid uncertainty over the domestic economy.

The People’s Bank of China reported buying gold for a 23rd consecutive month in September, when the country’s central bank also made its largest monthly purchase in nearly three years. The sustained buying points to a longer-term effort to spread risk associated with its vast reserves, experts say.

Among concerns is high US debt and Western governments’ freezing of assets, which has highlighted the inherent risk in holding money overseas, particularly for emerging market and Global South economies. Gold bought and stored domestically offers protection against that risk because access does not depend on the will of another government.

But central bank buying and household demand for gold in China have different drivers. While Beijing is managing its financial exposure, private investors are seeking somewhere to preserve their savings. Here is what we know.

How much gold has China bought?

China’s central bank added approximately 23 tonnes of gold in September, bringing its reported holdings to about 2,410 tonnes, according to the World Gold Council. That was its largest monthly purchase since October 2023. Gold accounted for 8.5 percent of China’s total official reserves at the end of September, compared with 5.5 percent at the end of 2024.

Reserves are assets central banks hold to ensure they can meet international payments and respond to financial disruption. They usually include foreign currencies, foreign government debt and gold.

Private demand for gold within China has also risen, with purchases of gold bars and coins 28.4 percent higher in the first half of 2026 than during the same period last year, according to the China Gold Association. The buying of gold has continued amid falling prices, with gold down around 8.5 percent over the month.

The World Gold Council attributed the decline in gold prices partly to a stronger dollar and higher returns on US government debt. With interest rates going up in an attempt to curb inflation, these investments are attractive for buyers as they pay interest, making them more attractive to private investors than gold, which does not.

Why is China buying more gold?

A key objective is to reduce dependence on US government debt, known as Treasuries, according to Thu Lan Nguyen, head of commodity research at Commerzbank in Frankfurt.

China holds substantial reserves in dollar-based assets and, therefore, buying gold reduces its exposure to decisions taken in Washington. “China’s gold purchases are part of a broader effort to make its reserves more resilient,” Nguyen told Al Jazeera.

The freezing by Western countries of roughly $300bn in Russian Central Bank overseas assets following Moscow’s invasion of Ukraine in 2022 demonstrated how reserves held abroad can quickly become inaccessible.

The concern for China may be that a future confrontation with Washington could expose some of its overseas assets to similar restrictions. “Gold held domestically has a crucial advantage in this respect: it does not represent a claim on another country and is therefore much less exposed to sanctions or asset freezes,” Nguyen said.

“I would interpret it primarily as risk management,” she added, pointing to increased geopolitical tensions and economic and fiscal risks.

America’s rising debt, which hit $40 trillion for the first time in history earlier this year, adds another source of uncertainty. In February, the US Congressional Budget Office projected that federal debt held by the public would rise from 101 percent of the size of the US economy in 2026 to 120 percent in 2036. That provides context for concerns about Washington’s ability to repay that debt going forward should an economic crash occur. Much of this debt is held by China. Gold, therefore, offers a less volatile and risky asset to hold.

Chinese households have different motivations for buying gold. When confidence in other investments weakens, gold can become more attractive as a way to hold savings. “Strong demand for gold can partly reflect a search for alternative stores of value,” Nguyen said.

The World Gold Council has identified weak Chinese share markets as one factor supporting domestic demand for gold, while its property market is burdened by heavy borrowing and overbuilding, contributing to a fall in housing prices, making it a poorer investment.

What this means for the US dollar

Analysts warned that China’s increased buying of gold does not signal an imminent end to the dollar’s global dominance. “I would be cautious about describing this as a major shift away from the dollar,” Nguyen said. “The dollar remains by far the dominant global reserve currency.”

But a gradual shift could still matter if China and other central banks put more of their new reserves into gold, buying fewer US assets than they normally would. That could weaken one source of demand for US government debt. But the effect would depend on how widely and quickly the shift developed.

“The key point is, therefore, that this is likely to be a slow diversification process rather than a sudden abandonment of the dollar,” Nguyen said. She added that the consequences for the US economy would remain limited unless the trend broadened and accelerated substantially.

Central banks also need readily available foreign currency to support international payments and the dollar remains central to those transactions. So gold can provide financial protection, but it cannot directly replace all the functions of dollar reserves.

Who else is buying gold?

China is part of a wider trend, particularly among central banks in emerging economies, Nguyen said.

“The trend is particularly visible among emerging market central banks,” Nguyen said. “But sanctions are only part of the story.”

Poland has also become a more prominent buyer. Its central bank purchased 31 tonnes in the first quarter of 2026 and another eight tonnes in July, according to the World Gold Council.

Large holdings do not necessarily indicate recent purchases. India, for example, confirmed in June that its physical gold stock remained unchanged at about 880.5 tonnes. India’s gold reserves have changed little since mid-2025, according to the World Gold Council. It bought about four tonnes in 2025, down from 73 tonnes in 2024.

Despite China’s sustained buying, its reserves remain far smaller than those of the United States. Its holdings of about 2,300 tonnes at the end of 2025 amounted to less than one-third of the US stockpile of approximately 8,133 tonnes.

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China-North Korea border bridge may do little to spur trade, experts say | International Trade News

As China and North Korea cut the ribbon on New Yalu River Bridge this week, officials described the new border crossing in momentous terms.

Chinese Premier Li Qiang said the 3km (1.9-mile) bridge, which links China’s Dandong and North Korea’s Sinuiju, would “vigorously promote” trade and “strengthen emotional bonds”.

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North Korean Premier Pak Thae-song expressed his belief that the crossing would “accelerate the advance for the prosperity of the two countries” and “add fresh vigour” to their economic cooperation.

Analysts on China-North Korea ties are much more circumspect.

While the bridge is a concrete symbol of China and North Korea’s efforts to revitalise relations that have waned from their Cold War-era peak, the prospects for trade are hindered by obstacles ranging from international sanctions to a North Korean leadership that prioritises security above all else, experts say.

“It reflects China’s renewed effort to strengthen its relationship with North Korea at a time of changing regional alignments,” Phillip Park, a professor at the University of North Korean Studies in Seoul, South Korea, told Al Jazeera.

“But whether this leads to substantially deeper economic integration, greater North Korean dependence, or a significant shift in Pyongyang’s strategic orientation remains an open question.

“The bridge could facilitate trade and logistics, but it does not remove international sanctions,” Park added.

A Chinese maritime patrol vessel travels along the Yalu River as trucks adorned with Chinese flags cross the newly opened New Yalu River Bridge into North Korea’s Sinuiju from China’s Dandong New Zone, as seen from Dandong, Liaoning province, China, on October 15, 2026
A Chinese maritime patrol vessel travels along the Yalu River as trucks adorned with Chinese flags cross the newly opened New Yalu River Bridge into North Korea’s Sinuiju from China’s Dandong New Zone, as seen from Dandong, Liaoning province, China, on October 15, 2026 [Florence Lo/Reuters]

China, whose troops fought alongside Pyongyang in the 1950-53 Korean War, has long been North Korea’s most crucial economic benefactor.

China accounts for as much as 95 percent of official trade with the secretive country, which is among the world’s most diplomatically and economically isolated states.

Before the four-lane New Yalu River Bridge officially opened on Thursday, road and rail freight between Dandong and Sinuiju, the main route for China-North Korea trade, travelled exclusively via the ageing Sino-Korean Friendship Bridge.

Opened in 1943, the bridge, which has a single-lane road and a rail track, can only carry vehicles weighing a maximum of 20 tonnes.

Jae-woo Joo, a professor of Chinese foreign policy at Kyung Hee University in Seoul, said the new bridge could “tremendously” boost trade between the sides, including the transfer of components banned under sanctions against Pyongyang’s nuclear and missile programmes.

“It is therefore really significant to open this bridge with China,” Joo told Al Jazeera.

After coming under strain from North Korea’s nuclear weapons tests in the mid-2000s, Beijing-Pyongyang ties have warmed under Chinese President Xi Jinping and North Korean leader Kim Jong Un.

At Xi and Kim’s most recent meeting in June, their seventh summit since 2018, the leaders pledged to enhance cooperation in areas spanning trade, defence, agriculture, law, science and technology.

Analysts have, in part, cast Beijing’s deepening engagement with Pyongyang as a response to the latter’s growing ties with Moscow, which have included the deployment of thousands of North Korean troops to the front lines of Russia’s war in Ukraine.

Last month, North Korean and Russian officials opened the first road bridge linking their countries across the Tumen River.

Chinese President Xi Jinping walks with North Korean leader Kim Jong Un, right, to a reception following a military parade to commemorate the 80th anniversary of Japan’s World War II surrender held in front of Tiananmen Gate in Beijing, China, on September 3, 2025
Chinese President Xi Jinping walks with North Korean leader Kim Jong Un, right, to a reception following a military parade to commemorate the 80th anniversary of Japan’s World War II surrender held in front of Tiananmen Gate in Beijing, China, on September 3, 2025 [Mahesh Kumar/AP]

North Korea and China’s two-way trade grew 25 percent in 2025 to reach $2.74bn, according to figures from China’s General Administration of Customs.

Bilateral trade has continued to grow in 2026, jumping nearly 20 percent to reach $1.5bn in the first half of the year, putting it on track to reach its highest volumes since the COVID-19 pandemic.

But while growing, trade remains relatively minuscule in the context of global commerce.

With China’s overall trade hitting $6.36 trillion in 2025, North Korea’s contribution to the total was a little more than 0.04 percent.

Official trade between the neighbours also remains substantially below its 2010s heyday.

Trade hovered around $5-6bn throughout much of the decade, peaking at $6.45bn in 2013.

Economists have offered explanations for the slowdown that range from tightened sanctions to China’s waning reliance on imports amid its efforts to boost economic self-reliance.

Christopher Green, a senior consultant for the Korean Peninsula at International Crisis Group, said the new border crossing’s significance should not be overstated, considering that China-North Korea trade “is fundamentally driven by politics”.

“Lack of cross-border transit routes is not the main obstacle,” Green told Al Jazeera.

“If the bridge opening signifies a political desire on both sides to give political cover to rising trade volumes, then a boost to trade should follow,” Green said, describing ties up until now as “steady-as-she-goes” economic engagement.

“Time will tell. But the key is the politics of national security, not economics.”

Vehicles drive through a new bridge linking China and North Korea as it opened in North Phyongan province, North Korea, on October 15, 2026
Vehicles drive through a new bridge linking China and North Korea as it opened in North Phyongan province, North Korea, on October 15, 2026 [Cha Song Ho/AP]

As much as officials have hailed the New Yalu River Bridge as a reflection of Chinese-North Korean cooperation, the project had a long and torturous road to completion.

Construction began in 2011 and was finished on the Chinese side in 2014.

But North Korean authorities only completed roads and customs facilities on their side of the river this year following repeated pauses in construction amid tensions with Beijing.

“The 12-year delay certainly suggests that economic cooperation is more conditional than the language of friendship might imply,” Marco Mari, a PhD researcher at Bocconi University in Italy who studies China-North Korea economic ties, told Al Jazeera.

“The bridge can facilitate supplies and economic activity, while Russian support gives North Korea alternatives that diminish Beijing’s leverage,” Mari added.

“This does not necessarily imply broader economic reform or a comparable improvement in ordinary people’s lives.”

Chinese Premier Li Qiang, on screen, makes a speech through video conference as a new bridge linking China and North Korea opens in North Phyongan province, North Korea, Thursday, October 15, 2026
Chinese Premier Li Qiang, on screen, makes a speech through video conference as a new bridge linking China and North Korea opens in North Phyongan province, North Korea, Thursday, October 15, 2026 [Jon Chol Jin/AP]

Weiqi Zhang, an associate professor at Suffolk University who studies relations between North Korea and China, said the history of China-North Korea economic ties is littered with abortive projects, such as the Hwanggumpyong Special Economic Zone, a North Korean-Chinese development near Dandong.

“There were cases, like the Hwanggumpyong Special Economic Zone – established by China and North Korea – where China built infrastructure on its side, but North Korea didn’t even pave the road on their side,” Zhang told Al Jazeera.

“One reason is that, unlike its neighbours, North Korean government doesn’t really pay much attention to trade for economic development,” Zhang said.

“International trade is used by North Korea more like a foreign policy tool.”

With China wishing to demonstrate its “indispensability” as a trade partner and North Korea eager to strengthen their economic ties, trade is likely to grow, said Edward Howell, a lecturer in international Relations at the University of Oxford.

Even so, economic engagement will be subject to political considerations, Howell said.

“North Korea will obviously want to avoid facing any Chinese influence to change its economic model, but Pyongyang will want to reap the economic benefits of trade with its principal economic benefactor,” Howell told Al Jazeera.

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Norway wealth fund urged to ease nuclear arms ban after Gaza investment row | News

Review prompted by Gaza action calls for Norway’s sovereign wealth fund to lift ethical risk limitations on its investments.

A government-appointed committee has called for Norway’s sovereign wealth fund to lift limitations on its investments based on ethical risks, including those regarding nuclear weapons and Israel’s genocidal war on Gaza.

In a report released on Thursday, the committee said the world’s largest sovereign wealth fund, which controls assets totalling nearly $2.3 trillion, should be allowed to invest in companies that produce nuclear weapons. With reference to Gaza, it also called for the fund to refrain from involvement in diplomatic issues.

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Led by former Central Bank Governor Svein Gjedrem, the committee recommended easing the fund’s investment conditions as part of a broader overhaul that would give its manager, the central bank, greater discretion over how it addresses ethical risks.

The review was prompted in part by controversy over the fund’s disinvestment last year from United States construction giant Caterpillar. The fund said the move was prompted by Caterpillar’s purported involvement in rights violations perpetrated by Israel amid its genocidal war on Gaza and in the occupied West Bank. Washington has since pressured Oslo over the move.

“Parts of the rationale for the appointment of the Committee was the Fund’s management related to the war in Gaza,” the committee commissioned by the government said. In the report, it argued that decisions regarding “another state’s conduct” should not be made by the fund but “reserved for the ordinary diplomatic channels of the Norwegian authorities”.

The unanimous recommendations of the committee in the report, which was submitted to the Ministry of Finance, also called for a review of the fund’s exclusion of investment in companies involved in the production of nuclear weapons.

Citing Norway’s reliance on NATO’s nuclear deterrent and a worsening security environment, the report suggested that investments in companies based in the US, United Kingdom and France that are involved in the production of nuclear weapons should be allowed.

The proposals also extended to reshaping the role of the fund’s independent ethics watchdog, allowing some assessments of potential investments to remain confidential.

‘Pandora’s box’

The report has already provoked a backlash in Norway, with opposition politicians slamming the potential changes. Meanwhile, analysts suggested that weakening ethics considerations could have a wide impact.

“If the Norwegian sovereign wealth fund – often considered a global gold standard – changes its posture towards nuclear weapons, it will open Pandora’s box for many global investors to follow suit,” Lawrence Loh, director of the Centre for Governance and Sustainability at the National University of Singapore Business School, told Al Jazeera.

The committee framed the proposed change as an obligation to protect Norway’s national security, citing the country’s dependence on its allies’ nuclear umbrella.

“The global security situation has changed. Norway is building up its defence capabilities, and the protection provided by NATO’s nuclear umbrella has become increasingly important. The companies that would be reincluded produce weapons that Norway needs for its own defence”, the report argued.

Gareth Evans, former Australian foreign minister, told Al Jazeera the report was “an encouraging initiative in a world that has become alarmingly complacent about the risks of nuclear war, with every major nuclear arms control agreement dead, dying or on life support, and the longstanding taboo against threat or use eroding”.

Amid US President Donald Trump’s shake-up of NATO, European countries are increasingly looking to join France’s nuclear deterrent umbrella.

Trump said on Thursday that Washington is holding talks with Russia and China aimed at denuclearising the countries with the biggest stockpiles of nuclear weapons.

However, Loh warned that shifting the Norwegian fund’s investment conditions could encourage investment by others in nuclear companies “in scenarios different from the Norwegian’s condition of the invested companies being based in allied, nuclear-armed NATO countries”.

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Argentine students protest on campus over Milei’s austerity | Education News

Judge fines government for failing to fund universities as protests over Milei’s cuts turn violent.

“This cannot go on!” students shout during an assembly in the middle of the central hall of the University of Buenos Aires Exact and Natural Sciences building.

It is part of Argentina’s prestigious public university system.

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The faculty’s central hall is covered with dozens of banners protesting President Javier Milei’s spending cuts. Students have called an assembly to announce the occupation of the university, a traditional form of protest in Argentina meant to raise public awareness and pressure the government.

They say they will take over the building for a day. Many students and professors here are concerned about the impact of Milei’s austerity policies on public universities and say the future of free higher education is at risk.

Students gather in protest at a university in Buenos Aires
Students gather in protest at a university in Buenos Aires [Lagmi Chavez/Al Jazeera]

“Our best professors are leaving en masse. With salaries that cannot cover their basic needs, they are leaving for private universities,” Emiliano Gato, a physics student who is part of the group, told Al Jazeera.

“I dream of doing research and teaching at the public University of Buenos Aires. It’s a prestigious school. But now, with this austerity plan, I don’t know what will happen.”

Public universities in Argentina have become a major battleground of Milei’s austerity plan. Students and professors are protesting the lack of funding and the erosion of salaries, which they say is a major threat to the country’s public education.

Milei is implementing one of the harshest austerity plans in Argentina’s history.

Since taking office in 2023, he has laid off thousands of state employees, shut down ministries, reduced subsidies and cut government-funded programmes. The measures were meant to fight high inflation, which was a major problem in Argentina. Almost three years later, inflation has fallen to around 2 percent a month. Milei says his plan is going well.

“Argentina is growing at a remarkable pace. We have now recorded 27 consecutive months of sustained growth, and today the country is expanding at four times its historical rate. This growth is being felt across almost every sector of the economy,” said Milei during a recent visit to Washington.

Ripple effects

But not everyone agrees. His plan is also having a profound impact on public education, welfare plans for people with disabilities, pensioners and others who depend on state support. The opposition has tried to block many of Milei’s reforms.

Last year, Congress overturned presidential vetoes and approved two laws, one increasing funding for public universities and another declaring a disability emergency. But Milei’s government has refused to implement them, arguing that Congress failed to identify how they would be financed.

A federal judge has now begun fining the government 100,000 pesos (around $70) a day for failing to implement parts of the financing law, which requires Milei’s government to restore university salaries and student scholarships lost to inflation, regularly update budgets and provide funding for research, hospitals and infrastructure.

And that’s why thousands of people took to the streets on Thursday to demand that the government implement it. All around Buenos Aires, long columns of people blocked the centre of the city as they called for a general strike. Although the protest was meant to be peaceful, it soon turned violent. Police fired tear gas and rubber bullets as protesters threw rocks.

The plaza in front of Congress resembled a battleground. At least 25 people were detained, and several others were injured, including members of the security forces.

Maria Teresa de Jesus is a professor in the University of Buenos Aires chemistry department. She says she makes around $700 a month and it has become difficult to make ends meet. “I have come to this protest as a last resort. I am professor. I love teaching, doing research. I shouldn’t be here,” she told Al Jazeera. “Public education is crucial in this country, to make education accessible to all. And the government is ignoring it.”

Many in Argentina continue to support Milei’s economic plan. They are hoping the government’s plan to exploit the country’s vast natural resources will pay off and translate into more jobs, higher wages and improved living standards.

But many others have stopped believing and are prepared to raise the stakes. They accuse Milei’s government of protecting the interests of a privileged few while asking the rest of the country to bear the cost of his economic plan.

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Two Syrian pipelines damaged amid spate of attacks on energy infrastructure | Oil and Gas News

Fuel theft cited in Baniyas-Homs leak as gas export line in Hasakah catches fire.

Two pipelines carrying gas and oil products were damaged in separate incidents in Syria, state media reported, the latest disruptions to the country’s energy infrastructure following a series of suspected sabotage attacks.

The state-owned Syrian Petroleum Company announced the damage on Thursday, according to the Syrian Arab News Agency (SANA). The incidents add to a number of attacks on Syria’s oil and gas network in recent months, as the government tries to revive its energy sector.

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An explosion struck the Jbessa gas pipeline in southern Hasakah province in the late afternoon, hours after damage to a pipeline transporting oil products from the coastal city of Baniyas to Homs caused a fuel leak.

The company said the gas pipeline had been targeted in a “sabotage attack”, according to SANA.

Neither SANA nor the company named a suspect or group responsible for the attacks.

Repairs under way

Oday al-Satouf, head of the company’s media office, told SANA that a hole was found in the Baniyas-Homs pipeline in the Hadida area, west of Homs. Crews isolated the affected stretch and secured the surrounding area, he said, closing valves on either side of the damaged section. Repairs have begun, while other teams monitor the area for safety. State media said the leak was believed to be linked to an attempted fuel theft.

Al-Satouf said gas would continue to reach power stations through alternative arrangements, and that domestic gas supplies were unaffected, according to SANA.

A man fills a container with petroleum for heating at home in Suwayda, Syria
A man fills a container with petroleum for heating at home in Suwayda, Syria [File: Elke Scholiers/Getty Images]

A string of incidents

More than a week ago, the company said an oil pipeline near Tal Hamis in the northeastern province of Hasakah was damaged in a sabotage attack. It added that authorities had arrested those responsible.

In late September, a fire broke out on a gas pipeline between al-Shoula and Deir Az Zor in the east, halting gas flows from the Jbessa plant to power stations, SANA reported. Hisham al-Saleh, a gas sector official at the company, said gas pressure in the area fell as crews worked to extinguish the blaze.

Syria has been working to restore its energy infrastructure and increase domestic oil production. That includes resuming operations at oil fields in Hasakah to supply refineries in Homs and Baniyas. In January, the petroleum company announced plans to transport crude from recently recovered fields to the two refineries as part of efforts to revive the sector.

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Iraq devalues dinar to ease cash crunch, leaving traders in limbo | Business and Economy News

Baghdad, Iraq – Sitting anxiously in his small office in Jameela market, one of Baghdad’s main wholesale markets, food trader Hamza al-Rudayni is waiting to see what the coming days will bring.

A decision by the Iraqi government to devalue the country’s currency, the dinar, against the US dollar has left traders like him facing sudden losses and uncertainty over the prices they should charge for their goods.

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“I don’t know what to do,” al-Rudayni told Al Jazeera after the devaluation reduced the dollar value of his dinar holdings, leaving him with less money to purchase imported goods.

“All I know is I woke up a few days ago to discover that I had lost 25 million Iraqi dinars (roughly $16,500 at the new exchange rate) because of this decision, while larger merchants lost billions,” he said.

Al-Rudayni entered the wholesale trade market last year after losing his previous job at a private Iraqi bank that he says was sanctioned by the United States Treasury. He sold his car and used his savings to start trading with a larger merchant before recently launching his own business.

With exchange-rate fluctuations making prices unpredictable, al-Rudayni said he and many other traders have chosen to suspend buying and selling until the situation stabilises.

“Market activity has ground to a halt,” al-Rudayni said. “Traders buy goods in dollars but sell them in dinars, as regulations prohibit them from selling in dollars.”

That is the root of the problem for traders: A weaker dinar means they have to pay more in local currency for goods imported in dollars, while making it harder to determine the right price they should charge customers for goods they already have in stock.

Why devalue?

On October 7, the Iraqi government introduced a new official exchange rate against the US dollar, in an attempt to ease a financial crisis triggered by the US-Israeli war on Iran and the  disruption of oil exports through the Strait of Hormuz.

Before the war, Iraq exported around 3.5 million barrels of oil per day through the Strait of Hormuz, accounting for 90 percent of Iraq’s government revenue.

The Central Bank of Iraq decision set the rate at 1,520 dinars per US dollar for cash sales to the public. It was previously set at 1,320 dinars per dollar.

Devaluing the Iraqi dinar by almost 15 percent against the dollar allows the government to receive more local currency for every dollar of oil revenue it converts, helping it cover public spending, including government employee salaries.

“It is my decision and I am responsible for it,” Iraqi Prime Minister Ali al-Zaidi said during a meeting with parliamentary leaders on Thursday.

“I was facing three challenging options to cover salaries and other mandatory expenditures,” al-Zaidi added. “The first is to cut salaries by 35 percent … the second is to pay the salaries every 45 days … while the third is to resort to foreign loans.”

Al-Zaidi, a former banker, also said that his government had inherited public debt exceeding 208 trillion Iraqi dinars ($139bn at the new rate) when it took office in May. He said the government needed approximately 10 trillion dinars ($6.7bn) each month to cover salaries and other essential expenditure.

A shortage of liquidity

The crisis in the Strait of Hormuz had caused a severe financial squeeze for the Iraqi government.

Although the situation has eased somewhat in recent weeks after Iraq’s oil exports partially recovered, they have yet to return to their pre-war levels.

Mudher Mohammed Salih, the Iraqi prime minister’s financial adviser, said in August that the Central Bank of Iraq’s foreign currency reserves had declined from $106bn to approximately $80bn.

To make up for the loss of revenue, the Iraqi government has also turned to borrowing from domestic banks to cover salaries and other expenses.

A Finance Ministry official told Al Jazeera that ensuring salaries were paid on time remained the government’s main priority, describing this issue as a matter of domestic economic stability.

“Our hands are tied regarding the revenue and how to maintain enough money to ensure that we can pay the salaries,” the official, who asked to remain anonymous because he was not authorised to speak publicly, said.

Economists have warned that while adjusting the exchange rate could ease some immediate fiscal pressures, it would not address the deeper weaknesses in Iraq’s economy.

“Nothing in economics is sacred, including the exchange rate,” said Nabil al-Marsoumi, professor of economics at Al Maaqal University in Basra. “It can be adjusted, but only after all other options have been exhausted.”

“In any case, the exchange rate shouldn’t be used as a cover-up for failures in the state’s economic and fiscal policies,” he added.

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G20 finance ministers, central bankers gather amid fallout from Iran war | Business and Economy News

The G20 finance ministers and central bank governors are gathering in Bangkok, Thailand, on Thursday amid an uncertain global outlook shaped by the US-Israel war on Iran.

The meetings are being held in conjunction with the annual meetings of the International Monetary Fund (IMF) and the World Bank, taking place in the Thai capital from October 12 to October 18.

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Here are some of the key details about the meetings:

What are the G20, the IMF and the World Bank?

The G20 is an economic forum comprising 19 large economies, including the United States, China, the United Kingdom, Australia, Brazil, India, Japan, Indonesia and Saudi Arabia, as well as the European Union and the African Union.

The grouping has an annually rotating presidency, currently held by the US.

Together, the G20 countries account for about 85 percent of global gross domestic product (GDP) and three-quarters of global trade.

The G20 was established in 1999 as a forum for finance ministers and central bank governors to address shared economic concerns in the wake of the Asian Financial Crisis, before expanding into a broader forum for national leaders.

The IMF, based in Washington, DC, is an international financial institution that promotes international cooperation on monetary policy, trade and economic growth.

Its membership includes all but a handful of the world’s sovereign states, including North Korea, Cuba, the Vatican City and Monaco.

The World Bank, also based in Washington, DC, primarily serves as a provider of loans and grants to developing countries. It has 189 member countries.

The IMF and the World Bank were created at the 1944 Bretton Woods conference in the US, convened by the Allied Powers to establish the contours of the post-World War II international financial order.

Who will be attending the meetings?

Most finance ministers and central bank governors of the G20 will be in Bangkok, along with IMF Managing Director Kristalina Georgieva and World Bank Group President Ajay Banga.

US Treasury Secretary Scott Bessent will be a notable absence from the gatherings, as the top economic official of the world’s biggest economy and G20 chair.

US officials have cited “domestic engagements” for Bessent’s decision to skip the events, at which Washington will be represented by Deputy Secretary Francis Brooke and Undersecretary for International Affairs Erin Browne.

The G20 meeting, one of several gatherings of the group’s finance ministers each year, will help shape the agenda for the headline leaders’ summit in Miami, Florida, taking place on December 14-15.

What is on the agenda?

The economic fallout from the US-Israel war on Iran is expected to dominate discussions.

Attacks across the Middle East have upended economic activity across the region, while disruption to shipping in the Strait of Hormuz has driven a surge in energy prices worldwide.

Crude oil prices have exceeded $100 a barrel for much of the past eight months, placing a strain on government coffers and household budgets, particularly in the Gulf region and the rest of Asia.

In advance of the meeting, Australia’s Treasurer Jim Chalmers MP said he would use the discussions to call for an end to the conflicts in the Middle East and the reopening of the Strait of Hormuz “because that’s what the global economy desperately needs”.

“The war in the Middle East is having a devastating economic impact and is pushing up fuel prices, inflation and interest rates around the world,” Chalmers said in a statement.

Other issues likely to feature on the agenda include the ballooning debt levels of many countries, which exceed 100 percent of GDP in the US, Canada, Japan, Italy and France.

In a speech on Wednesday, Georgieva warned that mounting debt posed a threat to the global economy and that there was no “magic” formula that would allow governments to avoid tax hikes or spending cuts.

G20 members will also bring more specific individual concerns to the table based on their economic and geopolitical priorities.

The US, for example, has repeatedly expressed concern about “global imbalances”, a veiled reference to China’s state-driven industrial model that has allowed Chinese exporters to flood overseas markets with cheap goods.

US President Donald Trump has long claimed that China’s large trade surplus, which stood at a cumulative $938bn in September, proves that international trade is stacked against US manufacturers.

In a statement addressed to the IMF on Wednesday, Bessent called for action to address mismatched trade balances.

“This especially includes strengthening its analysis and engagement on the role non-market policies and practices and exchange rates play in driving external imbalances,” Bessent said.

“Policymakers around the world are having difficult discussions about how to sustain market-based systems amid distortionary policies from some economies that skew competition and hurt employment.”

Divisions and competing interests cloud the prospects for coordination, however.

At the last meeting of G20 finance ministers in Asheville, North Carolina, US, held on August 31 and September 1, member countries failed to issue a joint communique after China objected to language to do with trade.

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Argentina’s Milei backs Trump for US midterms, calls vote crucial for West | Donald Trump News

The President’s ally says conservatives “cannot give an inch” in Latin America as he accepts an award in Washington.

Argentine President Javier Milei has urged his ally, US President Donald Trump, to come out of the United States midterm elections in a stronger position, calling the vote important for the West as a whole.

Milei made the appeal on Wednesday at a Hispanic Heritage gala in Washington, where a Hispanic association gave him an award, ahead of November’s vote.

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Conservatives, he said, “cannot give an inch in our reconquest of the hemisphere”, according to Agence France-Presse (AFP).

Milei flew into the US capital on Wednesday for meetings with investors and the gala. He is due to address the US Chamber of Commerce on Thursday.

Argentina’s President Javier Milei attends the Hispanic Heritage Gala in Washington, DC, on October 14, 2026
Argentina’s President Javier Milei attends the Hispanic Heritage Gala in Washington, DC, on October 14, 2026 [Alex Wroblewski/AFP]

Milei’s lifeline

Trump firmly backed Milei a year ago, when his government also faced crucial legislative elections. He has called Milei his “favorite president”.

That backing, together with a currency swap agreement with the US Treasury, helped Milei to success in those polls, analysts have argued.

The centrepiece of the package, announced by Treasury Secretary Scott Bessent, was a $20bn swap with Argentina’s central bank, in which the US exchanged dollars for pesos. The swap came shortly after Milei’s party lost a key provincial election.

Trump made clear at the time that the support hinged on a Milei victory. “I’m with this man because his philosophy is correct,” he said ahead of a White House lunch with the Argentine leader. “If he wins, we’re staying with him. And if he doesn’t win, we’re gone.”

Trump also warned that the US would not be “generous” if Milei lost. The remarks unsettled Argentine markets, with the main stock index giving up earlier gains and falling about 2 percent, The Associated Press reported.

The package drew criticism in the US. Democratic lawmakers accused Trump of prioritising a foreign bailout while the US government was shut down.

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Tehran municipality accused of ‘overstep’ after launching welfare projects | Government News

Tehran municipality has launched a series of welfare initiatives to help residents cope with soaring living costs, but the measures have raised questions about their financing and effectiveness, as well as whether the local authority is taking on responsibilities better handled by Iran’s national government.

The local authority has launched four projects it says are aimed at protecting citizens, including a housing project, freezes on the prices of 12 basic goods, and a maternity package.

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Questions have been raised about how they will be funded and whether the municipality is overstepping its traditional functions.

In Iran, municipalities are responsible for local services and urban management, while the national government oversees broader economic policy, including efforts to control inflation.

Iranian law does give municipalities some responsibilites beyond conventional urban services, but Article 55 of Iran’s Municipal Law does call for municipalities to provide for public food markets, make certain essential goods more affordable, and provide social welfare facilities and low-cost housing.

The dispute is therefore less about whether Tehran municipality can provide the services, and more about their scale and financing.

The municipality’s price-freezing initiative, dubbed the “Zero Inflation” project, has been the most controversial. It comes as year-on-year inflation reached nearly 90 percent last month, while annual food inflation hit 108.8 percent.

Doubts have been raised about how the project will be funded and its effectiveness. Others believe that the measures could fuel inequality between the capital and other cities.

They are viewed as steps to address the huge economic challenges faced by Tehran residents, worsened since the United States and Israel launched a war on Iran on February 28.

Tehran Mayor Alireza Zakani said the municipality had recently guaranteed prices ranging between 5 percent and 50 percent below market rates for the next six months.

Yousef Akandeh, a political activist, told Al Jazeera that freezing the prices of some goods or providing free services will not reduce inflation to zero alone.

“Even if we assume that the Tehran municipality succeeded in stabilising the prices of 12 basic goods, what about the rise in rents, medicines, transportation prices, and the rest of living expenses,” Akandeh asked.

Real steps to tackle inflation, Akandeh said, would have to begin with controlling liquidity growth and monetary discipline, which he said are nearly impossible amid the ongoing war.

The municipality has also introduced a maternity support programme offering mothers of children born this year monthly credits worth up to 40 million rials ($15) for two years for each newborn.

Akandeh raised the issue of institutional overlap, noting that a similar national scheme already exists.

“The government implements a similar package and provides monthly financial amounts for all newborns across the country and not just in Tehran, and if the municipality’s package is independent of it, the Tehrani family may benefit from the national and municipal programme simultaneously,” Akandeh said.

Receiving support from both programmes would not, in itself, indicate wrongdoing. But critics are instead raising the question of whether it is an appropriate use of Tehran’s municipal resources, particularly when the city faces competing spending demands.

Amir Dabiri Mehr, a former adviser in the Tehran municipality, told Al Jazeera that although supporting the homeless falls under the municipality’s social responsibilities, the problem lies in a lack of transparency. The municipality is funded by taxes and building density licences.

epa13272291 People shop at Tajrish Bazaar in northern Tehran, Iran, 30 September 2026. Iran is facing an economic crisis as the conflict between the US and Iran continues. EPA/ABEDIN TAHERKENAREH RESTRICTIONS: NO Access Israel Media/Persian Language TV Stations Outside Iran/Strictly No Access BBC Persian/VOA Persian/Manoto TV/Iran International TV. (As mandated by Iran's Directorate General for Foreign Media) --
People shop at Tajrish Bazaar in northern Tehran, Iran, September 30, 2026 [Abedin Taherkenareh/EPA]

“The people have the right to know what the municipality spends within the framework of its original tasks, and in tasks it has chosen for itself, and where it gets its resources from?” Dabiri Mehr said.

The municipality-affiliated Hamshahri newspaper said that the “Zero Inflation” project is not funded by municipal budget subsidies, but through direct purchases from producers and reducing commercial profit margins in council-run stores.

The biggest crisis facing Tehran’s residents is housing, which is the national government’s responsibility, Mehr said. Food and living expenses are the national government’s responsibility.

“If the goal is to solve the people’s problems, it seems that the biggest problem facing the residents of Tehran today is the housing crisis, and this dilemma cannot be solved by building an apartment building consisting of a few residential units,” he said.

Al Jazeera attempted to contact the Tehran municipality for comment but received no response.

Tehran Mayor Zakani has, however, defended the financing arrangements, telling a local newspaper, Hamshahri, that the Zero Inflation initiative would not rely on direct subsidies from the municipal budget, but instead on purchasing goods directly from producers and reducing commercial profit margins in city-run stores.

Zakani also said that the programme would draw on municipal resources, bank financing, and partnerships.

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