trade

Washington accuses Tehran and Caracas of ‘reckless proliferation of deadly weapons’ amid spiraling tensions.

Washington, DC – The United States has issued sanctions against a Venezuelan company over accusations that it helped acquire Iranian-designed drones as Washington’s tensions with both Tehran and Caracas escalate.

The penalties on Tuesday targeted Empresa Aeronautica Nacional SA (EANSA), a Venezuelan firm that the US Department of the Treasury said “maintains and oversees the assembly of” drones from Iran’s Qods Aviation Industries, which is already under sanctions by Washington.

The department also sanctioned the company’s chairman, Jose Jesus Urdaneta Gonzalez, accusing him of coordinating “with members and representatives of the Venezuelan and Iranian armed forces on the production of UAVs [unmanned aerial vehicles] in Venezuela”.

“Treasury is holding Iran and Venezuela accountable for their aggressive and reckless proliferation of deadly weapons around the world,” Treasury official John Hurley said in a statement.

“We will continue to take swift action to deprive those who enable Iran’s military-industrial complex access to the US financial system,” he said. The sanctions freeze any assets of the targeted firms and individuals in the US and make it generally illegal for American citizens to engage in financial transactions with them.

In its statement, the US alleged Tehran and Caracas have coordinated the “provision” of drones to Venezuela since 2006.

Iran’s Ministry of Defence and Armed Forces Logistics (MODAFL) has been under US sanctions since 2020 for what Washington said is its role in both selling and procuring weapons. The US is by far the largest weapons exporter in the world.

On Tuesday, the US Treasury Department also imposed new sanctions against several Iranians it accused of links to Iran’s arms industry.

The actions came a day after President Donald Trump threatened more strikes against Iran if the country rebuilds its missile capabilities or nuclear programme.

The US had joined Israel in its attacks against Iran in June and bombed the country’s three main nuclear sites before a ceasefire ended a 12-day escalation.

“Now I hear that Iran is trying to build up again, and if they are, we’re going to have to knock them down,” Trump said on Monday during a joint news conference with visiting Israeli Prime Minister Benjamin Netanyahu. “We’ll knock them down. We’ll knock the hell out of them. But hopefully, that’s not happening.”

Iran was quick to respond to Trump’s threats.

“The response of the Islamic Republic of Iran to any oppressive aggression will be harsh and regrettable,” President Masoud Pezeshkian wrote in a social media post.

The Trump administration has also taken a confrontational approach towards Venezuela.

The US president announced this week that the US “hit” a dock in the Latin American country that he said was used to load drug boats. Details of the nature of the strike remain unclear.

Trump and some of his top aides have falsely suggested that Venezuela’s oil belongs to the US. Washington has also accused Venezuelan President Nicolas Maduro, without evidence, of leading a drug trafficking organisation.

The Trump administration has simultaneously been carrying out strikes against what it says are drug-running vessels in the Caribbean Sea and eastern Pacific Ocean, a campaign that many legal experts said violates US and international law and is tantamount to extrajudicial killings.

Over the past month, the US also has seized at least two oil tankers off the coast of Venezuela after Trump announced a naval blockade against the country.

Venezuela has rejected the US moves as “piracy” and accused the Trump administration of seeking to topple Maduro’s government.

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

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

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

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

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

Suspending tariff exemptions

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

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

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

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

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

Disposing shipments

Wasserbach has witnessed similar instances of UPS losing imports.

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

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

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

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

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

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

‘Impose additional pressure’

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

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

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

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

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

Final cost of delivery at your doorstep

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

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

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

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

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

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

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

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

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

European farmers are protesting against the EU-Mercosur deal.

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

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

So, why is there division?

Presenter: Folly Bah Thibault

Guests:

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

Phillip Danault’s decreasing role with the Kings led to the veteran two-way center getting an opportunity for a fresh start in a familiar setting after being traded to the Montreal Canadiens on Friday.

The Kings acquired a second-round draft pick while also freeing up salary-cap space and ice time for other players in the trade reached just before the NHL holiday roster freeze on Saturday. The draft pick the Kings landed is one Montreal previously acquired in a trade with the Columbus Blue Jackets.

Prompting the move for the Kings was the development of Quinton Byfield and Alex Laferriere, and the offseason additions of Joel Armia and Corey Perry. General manager Ken Holland also expressed a desire to provide more playing time for Alex Turcotte and second-year center Samuel Helenius.

“Phil’s role changed here, got reduced on the penalty killing and on the power play. It’s been a bit of a struggle here offensively for Phil since the start of the year,” Holland said on a video call.

“So I found a trading partner, and I think it’s going to be good for Phil,” he added. “He gets to go back to a city where he had a lot of success. And we get a second-round pick and obviously we see some cap space to use going forward.”

Danault was in the fifth season of a six-year, $33 million contract he signed with the Kings in the summer of 2021.

The 32-year-old Danault, who topped 40 points in each of his first four seasons with the Kings, hasn’t scored a goal and has just five assists in 30 games, while missing the past four with an illness. Holland said he consulted with Danault and his agent in opening trade discussions before landing what he believed was the best offer.

Danault, who is from Victoriaville, Quebec, returns to Montreal where he spent six seasons and established himself as one of the league’s better defensive-minded forwards.

He had 54 goals and 194 points in 360 games with Montreal over a stretch that ended with the Canadiens reaching the 2021 Stanley Cup Final, which they lost in five games to Tampa Bay.

Danault was selected in the first round of the 2011 draft by Chicago, and spent his first two seasons with the Blackhawks before being traded to Montreal.

The Canadiens add a 12-year veteran to a young, up-and-coming team that reached the playoffs last season for the first time since 2021, and is in the thick of a tightly packed race. At 18-12-4, Montreal enters Saturday eighth in the Eastern Conference standings with eight points separating the last-place Blue Jackets and second-place Washington Capitals.

The Kings are in a similar situation in the West. At 15-10-9, they’re seventh, with eight points separating the 10th-place St. Louis Blues and fourth-place Vegas Golden Knights.

The trade comes after the Kings ended an 0-2-2 skid with a 2-1 win at Tampa Bay on Thursday night.

Holland acknowledged the Kings need more offensive production — they rank 28th in the NHL, averaging 2.56 goals per game. But he’s pleased with the team’s defensive play and goaltending, with the Kings ranking third in giving up 2.5 goals per outing.

“Certainly we need more goals,” he said, noting the Kings are a combined 5-9 in overtime and shootouts. “I’m hoping that some of the people that have scored in the past will start to score here going forward.”

Holland also backed third-year coach Jim Hiller by noting how the Kings are no different than a number of NHL teams approaching the midway point of the season.

“If we’re in a malaise, then 25 teams are in a malaise. Like, the whole league’s packed together,” Holland said. “Jim’s done a good job, and our team is playing very structured and competes every night.”

EU delays Mercosur trade deal until January amid farmer protests and opposition from France and Italy.

The European Union has delayed a massive free-trade deal with South American countries amid protests by EU farmers and as last-minute opposition by France and Italy threatened to derail the agreement.

European Commission chief spokesperson Paula Pinho confirmed on Thursday that the signing of the trade pact between the EU and South American bloc Mercosur will be postponed until January, further delaying a deal that had taken some 25 years to negotiate.

Commission President Ursula von der Leyen was expected to travel to Brazil on Saturday to sign the deal, but needed the backing of a broad majority of EU members to do so.

The Associated Press news agency reported that an agreement to delay was reached between von der Leyen, European Council President Antonio Costa and Italian Prime Minister Giorgia Meloni – who spoke at an EU summit on Thursday – on the condition that Italy would vote in favour of the agreement in January.

French President Emmanuel Macron had also pushed back against the deal as he arrived for Thursday’s summit in Brussels, calling for further concessions and more discussions in January.

Macron said he has been in discussions with Italian, Polish, Belgian, Austrian and Irish colleagues, among others, about delaying the signing.

“Farmers already face an enormous amount of challenges,″ the French leader said.

The trade pact with Argentina, Brazil, Bolivia, Paraguay and Uruguay would be the EU’s largest in terms of tariff cuts.

But critics of the deal, notably France and Italy, fear an influx of cheap commodities that could hurt European farmers, while Germany, Spain and Nordic countries say it will boost exports hit by United States tariffs and reduce reliance on China by securing access to key minerals.

Brazil’s President Lula says Italy’s PM Meloni asked for ‘patience’

The EU-Mercosur agreement would create the world’s biggest free-trade area and help the 27-nation European bloc to export more vehicles, machinery, wines and spirits to Latin America at a time of global trade tensions.

Al Jazeera’s Dominic Kane, reporting from Berlin, said Germany, Spain and the Nordic countries were “all lobbying hard in favour of this deal”. But ranged against them were the French and Italian governments because of concerns in their powerful farming sectors.

“Their worry being that their products, such as poultry and beef, could be undercut by far cheaper imports from the Mercosur countries,” Kane said.

“So no signing in December. The suggestion being maybe there will be a signing in mid-January,” he added.

“But there must now be a question about what might happen between now and mid-January, given the powerful forces ranged against each other in this debate,” he added.

Mercosur nations were notified of the move, a European Commission spokeswoman said, and while initially reacting with a now-or-never ultimatum to its EU partners, Brazil opened the door on Thursday to delaying the deal’s signature to allow time to win over the holdouts.

Brazil’s President Luiz Inacio Lula da Silva said Italy’s Meloni had asked him for “patience” and had indicated that Italy would eventually be ready for the agreement.

The decision to delay also came hours after farmers in tractors blocked roads and set off fireworks in Brussels to protest the deal, prompting police to respond with tear gas and water cannon.

Protesting farmers – some travelling to the Belgian capital from as far away as Spain and Poland – brought potatoes and eggs to throw and waged a furious back-and-forth with police while demonstrators burned tyres and a faux wooden coffin bearing the word “agriculture”.

The European Parliament evacuated some staff due to damage caused by protesters.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Thousands protest as EU leaders clash over trade pact farmers fear will flood Europe with cheaper South American goods.

Hundreds of tractors have clogged the streets of Brussels as farmers converged on the Belgian capital to protest against the contentious trade agreement between the European Union and South American nations they say will destroy their livelihoods.

The demonstrations erupted on Thursday as EU leaders gathered for a summit where the fate of the Mercosur deal hung in the balance. More than 150 tractors blocked central Brussels, with an estimated 10,000 protesters expected in the European quarter, according to farm lobby Copa-Cogeca.

It made for a twin-tracked day of febrile tension outside and inside at the EU summit as leaders were perhaps more focused on a vote to determine whether they are able to use nearly $200bn in frozen Russian assets to support Ukraine over the next two years.

Outside the gilded halls on the streets, farmers hurled potatoes and eggs at police, set off fireworks and firecrackers, and brought traffic to a standstill.

Authorities responded with tear gas and water cannon, setting up roadblocks and closing tunnels around the city. One tractor displayed a sign reading: “Why import sugar from the other side of the world when we produce the best right here?”

“We’re here to say no to Mercosur,” Belgian dairy farmer Maxime Mabille said, accusing European Commission chief Ursula von der Leyen of trying to “force the deal through” like “Europe has become a dictatorship”.

Protesters fear an influx of cheaper agricultural products from Brazil and neighbouring countries would undercut European producers. Their concerns centre on beef, sugar, rice, honey and soya beans from South American competitors facing less stringent regulations, particularly on pesticides banned in the EU.

“We’ve been protesting since 2024 in France, in Belgium and elsewhere,” said Florian Poncelet of Belgian farm union FJA. “We’d like to be finally listened to.”

France and Italy now lead opposition to the deal, with President Emmanuel Macron declaring that “we are not ready” and the agreement “cannot be signed” in its current form.

France has coordinated with Poland, Belgium, Austria and Ireland to force a postponement, giving critics sufficient votes within the European Council to potentially block the pact.

However, Germany and Spain are pushing hard for approval. German Chancellor Friedrich Merz warned that decisions “must be made now” if the EU wants to “remain credible in global trade policy”, while Spanish Prime Minister Pedro Sanchez argued the deal would give Europe “geo-economic and geopolitical weight” against adversaries.

The agreement, 25 years in the making, would create the world’s largest free-trade area covering 780 million people and a quarter of global gross domestic product (GDP).

Supporters say it offers a counterweight to China and would boost European exports of vehicles, machinery and wines amid rising US tariffs.

Despite provisional safeguards negotiated on Wednesday to cap sensitive imports, opposition has intensified. Von der Leyen remains determined to travel to Brazil this weekend to sign the deal, but needs backing from at least two-thirds of EU nations.

Brazil’s President Luiz Inacio Lula da Silva issued an ultimatum on Wednesday, warning that Saturday represents a “now or never” moment, adding that “Brazil won’t make any more agreements while I’m president” if the deal fails.

Brazilian president says it is now or never after Italy joins France in saying it is not ready to sign trade deal.

Brazilian President Luiz Inacio Lula da Silva has warned he may abandon a long-awaited trade deal between members of the South American bloc Mercosur and the European Union after key countries sought a delay.

The Brazilian leader issued the threat on Wednesday after Italy joined fellow heavyweight France in saying it was not ready to commit to the pact to create the world’s biggest free-trade area.

The EU had expected its 27 member states to approve the deal in time for European Commission President Ursula von der Leyen to fly to Brazil to sign an agreement with the host, along with Mercosur partners Argentina, Paraguay and Uruguay, on Saturday.

“I’ve already warned them: If we don’t do it now, Brazil won’t make any more agreements while I’m president,” Lula told a cabinet meeting.

“We have given in on everything that diplomacy could reasonably concede.”

‘Premature’ to sign: Meloni

The deal, more than two decades in the making, has been keenly backed by economic powerhouse Germany, along with Spain and the Nordic countries, amid rising Chinese competition and recent United States tariffs, which have increased the incentive to diversify trade.

It would allow the EU to export more vehicles, machinery, spirits and wine to Latin America, and more beef, sugar, rice, honey and soya beans to flow in the opposite direction.

France, eager to protect its agriculture industry, had already called for a delay on a vote to approve the deal, and gained the support necessary to potentially block the agreement when Italian Prime Minister Giorgia Meloni said on Wednesday that Rome was also not ready.

“It would be premature to sign the deal in the coming days,” she told parliament, saying that some of the safeguards Italy is seeking on behalf of farmers were yet to be finalised.

She said Italy did not seek to block the deal altogether, and was “very confident” that her government’s concerns would have been addressed to allow it to be signed early next year,

French President Emmanuel Macron told a cabinet meeting on Wednesday that his government would “firmly oppose” any attempts to force through the deal.

Hungary and Poland are also lukewarm on the agreement.

By contrast, German Chancellor Friedrich Merz said Wednesday he would push “intensively” for the bloc to approve the deal by the year’s end, in what he described as a test of the EU’s “ability to act”.

EU reaches agreement on agricultural safeguards

In an effort to allay some of the concerns, the EU struck a provisional deal on Wednesday to set tighter controls on imports of farm products, amid a background of farmer protests against the deal.

It determined the trigger for launching an investigation into such imports if import volumes rose by more than 8 percent per year or prices fell by that amount in one or more EU members.

EU leaders will discuss the matter at a Brussels summit on Thursday, a commission spokesman said.