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US judge blocks Trump's plan to tie state transportation funds to immigration enforcement
A federal judge blocked the Trump administration's attempt to force 20 Democratic-led state to cooperate with immigration enforcement to receive billions in grant funding for transportation. John McConnell, Chief U.S. district judge in Providence, Rhode Island, granted the request of the states for an injunction to bar the Department of Transportation policy. He said that the states would likely succeed in some or all of the claims they made. The Trump administration didn't immediately respond to an inquiry for comment. The ruling was made in response to a lawsuit brought by a group Democratic state attorneys general, who claimed that the Trump administration had illegally held federal funds as hostage so they would adhere to his hardline immigration agenda. The states argued U.S. Transportation Secretary Sean Duffy lacked the authority to impose immigration-enforcement conditions on funding that Congress appropriated to help states sustain roads, highways, bridges and other transportation projects. Trump, who returned to office in January 2018, has signed several executive order that call for the cutting off of federal funding to sanctuary jurisdictions which do not cooperate U.S. Immigration and Customs Enforcement. His administration is also moving to mass deportations. In general, sanctuary jurisdictions have policies and laws that restrict or prohibit local law enforcement officers from assisting federal agents with civil immigration arrests. The Justice Department filed a number of lawsuits challenging the laws in these Democratic-led jurisdictions including Illinois, New York, and Colorado. The lawsuit McConnell is facing, which was brought by Democratic President Barack Obama on behalf of McConnell was filed in response to Duffy's April 24 notification that states could lose funding for transportation if they did not cooperate with federal law enforcement, including ICE and its efforts to enforce immigration laws. States argue that the policy is unconstitutional and amounts to a condition for states to receive funds authorized by Congress, as it leaves unclear exactly what would constitute sufficient cooperation. The administration has claimed that Duffy had the discretion to implement this policy and that these conditions should remain in place, as it is not wrong for states to be required to follow federal law. The 20 states have also filed a separate case in Rhode Island, challenging the new conditions imposed by Homeland Security Department on grant programs. (Reporting from Nate Raymond, Boston; additional reporting by Tom Hals, Wilmington, Delaware, and Trevor Hunnicutt, Washington; editing by Alexia Garamfalvi).
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Mexican authorities uncover a clandestine mini refinery as part of their crackdown on illegal hydrocarbon traffic
Mexican authorities discovered this week a clandestine micro-refinery, as well as a half million barrels worth of crude oil that they believe were stolen from Mexico's pipelines. The government is cracking down on illegal imports of huachicol (illegal crude oil, refined products, and other goods), a practice which generates significant losses for the state energy company Pemex as well as the government. Authorities have linked Pemex and organized crime to illegal trade. Was unable to reach the owners of the clandestine refining plant. On Wednesday, Omar Garcia Harfuch, the Minister of Security for Homeland Security said that "a clandestine operations was identified" during intelligence action and overflights. He said that the company produced alternative or artisan diesel, as well as light naphtha, solvents and treated oils, without the necessary permits. This posed a threat to local ecosystems. Authorities found 500,000 liters crude oil and production infrastructure to feed the illicit fuel market in the country. Pemex said the discovery, although not large in volume, highlighted the impunity of criminals in the country as well as their extensive network of collusion between different sectors. Separately authorities discovered 1.2 millions liters hydrocarbons and fuel trucks in Nuevo Leon, a northern state. Late May, authorities recovered over 3 million liters in hydrocarbon products from the south-east of the country. (Reporting Ana Isabel Martinez, Writing Stefanie Eschenbacher, Editing Daniel Wallis).
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Carney says that Canada could increase its duties on US aluminum and steel
Mark Carney, the Prime Minister of Canada, said that Canada may increase its counter-tariffs against U.S. steel and aluminum if a broader deal is not reached with President Donald Trump in 30 days. Trump raised import duties on aluminum and steel to 50%, up from 25% in early February. The industry demanded an official response. Trump's decision could harm Canada, the U.S.'s largest metals supplier. Carney said that he agreed with Trump on Monday that both nations should work to conclude a new security and economic deal by the 21st of July. Carney said at a press briefing that Canada would adjust its counter-tariffs against U.S. aluminum and steel products on the 21st of July to reflect the progress made under the larger trading agreement between the United States. Carney did not immediately match Trump's tariff hike in June, saying that he wanted to make progress in the talks to establish a new economic relationship and security. On March 13, Canada imposed 25% of retaliatory duties on a list steel products valued at C$12.6 Billion and aluminum products valued at C$3 Billion. In an announcement made on Thursday, Canada announced new rules for procurement, which will allow Canadian producers and their trading partners with tariff-free access to compete in federal procurements. Carney stated that Canada would set new tariff-rate quotas at 100% of the levels in 2024 for imports of steel from non-free-trade agreement partners, "to stabilize and prevent harmful trade divergence." According to the Royal Bank of Canada (RBC), Canada exports over 90% of all its steel and aluminum to the U.S. It also consumes around a fifth of the U.S. steel exports and about 50% of the aluminum exports. This highlights the importance of the metals trade between these two countries. Carney has also announced a number of infrastructure projects, ranging from oil and gas pipelines, to the doubling of housing capacity, all of which require tons of aluminum and steel. Carney, in response to questions from the press, said: "We are united on working towards all forms of assistance for the industry... and that begins with purchasing Canadian steel and aluminium for federal projects." The government will use Canadian steel and aluminium in Canadian products as part of its new measures. It will also create a taskforce to monitor the evolution of the steel and Aluminum markets under the tariff regime. (Reporting and editing by Rod Nickel; David Ljunggren, Andrea Ricci, and Rod Nickel)
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Nigerian Navy cracksdown on oil theft and arrests 76 ships in two years
The Nigerian Navy said that it had arrested 76 ships and at least 242 suspected in anti-oil-theft operations and destroyed over 800 illegal refinery sites during a 2-year crackdown. In recent years, Nigeria's oil sector has been crippled by rampant theft of oil from wells and pipelines. This has damaged government finances and reduced exports. Vice Admiral Emmanuel Ogalla, Chief of Naval Staff, said that since June 2023, the naval authorities had seized 171,000 barrels and millions of litres illegally refined fuels. Ogalla stated that the navy began checking oil cargoes at Nigeria's major export terminals to combat oil smuggling at its source in January. The navy has purchased patrol boats, new ships, and three AW 139 Trekker AW 139 helicopters. The navy is building two more seaward-defence boats, and will receive two 76 meter offshore patrol ships from Dearsan Shipyards in Turkey.
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France tightens its grip on Eutelsat with a 1.35 billion euro share sale
According to the Finance Ministry, Eutelsat will be the largest shareholder in France following a capital increase of 1.35 billion euros ($1.55 billion), which was designed to help the satellite company compete better with Elon Musk’s Starlink. Capital injections will give a boost to Eutelsat's debt-ridden company, which this year has attracted unprecedented attention from European governments searching for alternatives to Elon Musk Starlink. The ministry announced that France's state-owned shareholding agency would inject 717 millions euros into the company. This is more than half the total amount. A government official announced that the agency would also purchase the stake owned by France's Bpifrance, the state-owned investment company. This will bring France's stake in Eutelsat to 29,99%. The French government is proud of its support for Eutelsat. We support a crucial stage of its development by participating in the capital increase. "Satellite connectivity is an issue of strategic importance for our industrial and technological sovereignty," said Finance Minister Eric Lombard.
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UK Royal Navy ship sails through Taiwan Strait
A British Royal Navy Patrol Vessel has sailed across the Taiwan Strait. A Navy spokesperson confirmed this on Thursday. The passage was in accordance with international law. The spokesperson stated that "HMS Spey’s routine navigation through Taiwan Strait was a part of a long planned deployment and took place fully in compliance with international laws." The Ministry of Defence of Britain did not specify when the passage occurred. China, which claims Taiwan to be its own territory and says that the strategic waterway is theirs, The last time that a British warship passed through the strait in 2021 was when HMS Richmond, en route from the East China Sea to Vietnam, was deployed. The Chinese military warned the ship away at that time. The passage is published at a moment when Britain and China seek to repair their relationship. Prime Minister Keir starmer will visit Beijing in the latter part of this year, the first time a British leader has visited the country since 2018. (Reporting and editing by William James and Alexandra Hudson; reporting by Sam Tabahriti)
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The defence opportunity could make flying taxis possible.
Executives in the industry told the Paris Airshow that opportunities in emergency healthcare, defence and cargo could make flying taxis possible in the coming years, after the Trump administration recently backed the sector. This month, President Donald Trump told regulators that they should speed up the certification process to help accelerate the development and deployment of electric vertical takeoff and landing (eVTOL) aircraft. He was aiming to give the U.S. an edge over Asia with this technology. The executive order has given a new impetus to a sector that has been struggling to gain the approval of regulators and critics. Kyle Clark, the founder and CEO of BETA Technologies said at the show, "We take many spears. People say 'batteries too heavy.'" "But in reality, if the planes are placed in the right locations, there will be real benefits." In order to make flying taxis viable, they need to be able to scale up. They say that emergency medical services, cargo, and defence, could be a good alternative for helicopters, in areas such as passenger and goods transportation, or rescue missions. BETA, Joby Aviation, and Archer Aviation all participate in the U.S. Air Force Agility Prime Program. This program aims to develop autonomous cargo aircraft and hybrid-electric planes. Joby and Archer previously signed contracts for military services worth up to $142 Million and $131 Million, respectively. JoeBen Bevirt, the founder and CEO of Joby Aviation, said: "We are very grateful for the support we have received and the lessons we have learned." "We believe there are incredible opportunities in the defence sector." BETA's Clark who flew the conventional takeoff-and-landing aircraft in Paris said that BETA had a very clear position on defence. The company was committed to providing reliable aircraft for every mission. He said, "We've been to about 10 bases." We've performed 1,000 takeoffs and land landings for the military. Our dispatch rate is exceptional. We didn't just dabble there. We have contracts. "I think we have hundreds of millions of dollars in defence contracts." Wisk Aero and the three companies said that Trump's order had a major impact on the prospects of this sector. At the Paris show, U.S. Transportation Sec. Sean P. Duffy, and acting FAA Administrator Chris Rocheleau, announced a U.S. led alliance with Britain Canada Australia and New Zealand in order to streamline certification of eVTOLs worldwide. Wisk Aero is owned by Boeing and is different from its competitors in that it focuses on the launch of fully automated services. Sebastien Vigneron, CEO of the company, said: "We have all the support we need. We have the support from the government and the industry. And then we have money." Fully automated flight could be a challenge to convince the public. BETA's Clark stated that once the aircraft are in the customer's hands, the business case will be obvious. He claimed to have flown passengers between the Hamptons and JFK Airport in New York with only $7 worth of electricity. He said that you can flip opex into capex for recurring costs. This will tell you the type of customer and application you are looking for. "It is not just a weekly flyer. It's three, four or ten times a day flyer that takes advantage of the electric propulsion." (Reporting and editing by Mark Potter.
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Spain's watchdog reviews grid control rules
The Spanish Competition and Energy Watchdog announced on Thursday that it had updated the rules for power plants regarding the voltage control of the power grid in order to increase the role renewables play. It has been a long time coming, and the Spanish government's report on the causes for the massive blackout in Spain and Portugal that occurred on April 28, recommended its approval. According to the government investigation, a sudden surge in voltage caused the power outage. These updated rules, which are mostly 25 years old, include new requirements when it comes voltage control mechanisms for renewable plants such as solar and wind. These plants will now be able offer voltage control services previously only available to conventional power plants, such as thermal power plants that use coal, gas or nuclear energy. When grid operator REE calculated power mix for the next day, they could only rely on conventional power plants as the majority of the voltage control capability. In a press release, the authority stated that the new framework "gives homogeneous treatment" to both renewable energy and other generation facilities. It said that the review was approved by the Spanish government last week. The blame game has intensified over the blackout after discrepancies between the investigations conducted by the Spanish Government and the grid operator of the country. The former blames both the grid operator, for miscalculating energy mix on that particular day, and power generators for failing to maintain a proper voltage level in the system. However the latter puts the blame squarely on the power plants. The grid operator made a proposal in 2021 that led to the development of this update. (Reporting and Editing by Louise Heavens, Pietro Lombardi)
Sources say RPT Shein will set up a huge warehouse in Vietnam to hedge US tariffs
Two people with knowledge of the deal said that Shein, an online retailer specialising in fast fashion, is leasing its first warehouse in Vietnam. This could help reduce the company's exposure to the unpredictable trade tensions between the U.S. and China.
Shein, a company founded in China that sells items such as $5 bike shorts or $18 sundresses has agreed to lease 15 hectares for an industrial warehouse near Ho Chi Minh City. This is the commercial and trading center of Vietnam, according to the two sources, who declined to identify themselves because the information wasn't public.
A tit-fortat China-U.S. Trade War that threatens global supply chains has caught the online retailer in its crosshairs.
Shein, according to a source and a third party, was looking for more storage space to store the clothing and apparel of contractors in Southern Vietnam. The large warehouse is equivalent to 26 football fields.
Could not determine where the products that were housed in a leased warehouse came from.
Shein suppliers in southern China, the retailer's traditional production base, have said they are losing business to Vietnam because some Chinese manufacturers have opened factories there.
Shein, a company that is seeking to list in London, has not responded to any questions about the lease of the warehouse. It denied that it was moving production capacity outside of China.
In the area surrounding Ho Chi Minh City, there is an international airport as well as Vietnam's biggest port for imports to China and another port.
most seaborne exports
The United States
Vietnam has stepped up its crackdown on certain imports coming from China. Washington claims that these goods have been illegally rerouted via Vietnam to the United States for years to avoid paying higher duties.
The details of the lease of the warehouse were not available to us. We could not determine whether Shein's plans would change if the U.S. China trade tensions descended further and the appeal of overseas diversification was reduced.
Analysts say that Shein is forced to reduce its dependence on China due to the instability of the situation.
Manish Kapoor said, "It's dangerous not to diversify," CEO and founder Growth Catalyst Group, a firm that provides supply chain solutions for e-commerce.
ARMY of SUPPLIERS
Fashion giant, Zara, has built a powerful army of suppliers in China that can produce crop tops and fast fashion at a price of a few Yuan each to satisfy the demand for cheap clothes from Gen Z customers around the globe.
Shein said that it was expanding its network in China, and investing 10 billion Yuan ($1.37billion) in industrial projects. This includes a $500m supply chain hub near Guangzhou. This hub's first phase, which is currently being built, will cover 49 hectares - roughly the same size as Vatican City.
Shein has become a giant selling over $30 billion in goods each year. This is due to its low prices and favorable trade rules. For example, the U.S. de minimis exemption allowed duty-free entry of imports that were of low cost worth less than $800.
The Trump administration revoked that exemption on May 2 for Chinese products, effectively exposing Shein’s packages to a tax of 120%. However, the U.S.-Beijing agreement earlier this week reduced duties to 54% for parcels valued at $800 or under, and to 30% on low-value commercial shipments.
Although the U.S. and China thaw caused some concern among countries that benefitted from these tensions, current U.S. tariffs on Beijing help keep Vietnam competitive. Shipments from China's neighbor still receive duty-free treatment as long as they are valued at $800 or less.
However, the reprieve may not last long. Kapoor advises clients to not rely on "de minimis imports" from anywhere for their logistics strategy.
He said: "We are advising people that they should expect this "de minimis exemption" to be completely gone [soon].
Vietnam's exports to the U.S. will face a 10% tax until July, when it will rise to 46% in the event that Hanoi fails to reach an agreement with White House. Reporting by Francesco Guarascio and Casey Hall, Hanoi & Shanghai; Additional reporting from Phuong Nguyen - Hanoi; Editing done by Kate Mayberry
(source: Reuters)