Chief Justice extends San Salvador water cut-off bar
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Chief Justice has granted a seven-month extension to an injunction barring a water provider from causing “decimation of the business and residential community of San Salvador” by cutting off supply.
Sir Ian Winder, in an April 3, 2025, verdict extended until early November the “emergency” injunction obtained by the Water & Sewerage Corporation that blocked Aqua Design (Bahamas) from ceasing water production at the reverse osmosis plant supplying all the former’s San Salvador customers over purported “safety risks”.
The ruling further highlights the long-troubled, strained relationship between the Water & Sewerage Corporation and the
private operator that supplies water to its clients from seven Family Island plants located in Exuma, Eleuthera, San Salvador and Inagua. The stateowned water provider obtained the initial injunction just one day before Aqua Design was set to walk away and abandon San Salvador. Rather than discharge the injunction, as Aqua Design had urged, Sir Ian
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
BAHAMIANS must “brace” for a potential global depression and repeat of the 2008-2009 economic contraction, which saw thousands lose their jobs, due to Donald Trump’s tariff policies, a local economist is warning.
Therese Turner-Jones, a former senior InterAmerican Development Bank (IDB) and Caribbean Development Bank (CDB) executive, told an Organisation for Responsible Governance (ORG) seminar she is “not being dramatic, but realistic” about the likely fall-out the
Bahamian economy and this nation’s citizens face as a result of the US president’s actions in starting a possible global trade war.
Suggesting that she was being “milder” than other commentators in her reaction to Mr Trump’s move to totally rip-up the
long-established global economic order, she added that The Bahamas now finds itself in a landscape that is “going to look very different for the rest of this year” with previous forecasts now likely shredded.
Asserting that The Bahamas is “going to be
‘Significant downside risks’ as
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Government’s deficit for the first seven months of the current fiscal year breached the $400m
mark as a key watchdog warned of “significant downside risks” to its fiscal forecasts and targets.
The Ministry of Finance, unveiling its January 2025 fiscal performance report, revealed it narrowly missed
hit very, very, very, very hard” by the US president’s imposition of so-called “reciprocal” tariffs on virtually all other nations, with Russia being a notable exception, Ms Turner-Jones said the actual 10 percent levy imposed on this nation’s exports to North America is “the least of the problems”.
While the tariff will make Bahamian exports to the US, which totalled $608.176m in 2023, more expensive and potentially less competitive, she echoed the Government in agreeing that the biggest impact will come from how it disrupts the
deficit hits $400m mark
achieving a balanced Budget for the month via a near-92 percent cut in the deficit from $45.9m in the prior year to just $3.8m. But the latter figure was still sufficient to push the total deficit for the first seven months of the 20242025 fiscal year through the $400m barrier, taking it to $401.8m - a sum more than five-and-a-half times’ greater than the $69.8m full-year deficit target.
The end-January figure is now some 575.9 percent higher than the Davis administration’s goal, meaning it will have to generate a $332m surplus - the amount by which revenue income must exceed the Government’s total spending - over the final five months of the 20242025 fiscal period to hit its
year-end ambitions. And that sum is nearly five times’ greater than the $72m surplus it achieved in the 2023-2024 second half.
The magnitude of the required correction did not escape the attention of the newly-reformed Fiscal Responsibility Council, the watchdog with vetting the accuracy and reasonableness of the Government’s budgetary projections, which noted that this will have to be achieved amid “significant downside risks” - not least of which is the global economic fallout from Donald Trump’s newly-enacted trade and tariff policies. The Council (FRC), in its just-released report on the Government’s mid-year
Creators Alliance participants urged: Speak to Commission
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Securities Commission is pleading with Bahamians who invested with Creators Alliance to contact it after declaring the venture has “the hallmarks of a pyramid scheme” - a common type of financial fraud.
Christina Rolle, its executive director, told Tribune Business that the online content investment scheme has been under investigation by the Bahamian regulator for around two weeks and the probe - which is set to continuewill be conducted alongside the Royal Bahamas Police Force.
Acknowledging that “no formal complaint” has been made to the Commission about Creators Alliance, she nevertheless disclosed that the investigation’s
findings to-date have given it sufficient evidence to declare that the scheme is likely an “unlawful operation” in The Bahamas.
“We certainly are,” Ms Rolle replied, when asked by this newspaper if the Securities Commission is scrutinising Creators Alliance. “We’ve been investigating them for about two weeks. We’ve seen some activity and
SIR IAN WINDER
CHRISTINA ROLLE
KEY AIRLINE’S FUTURE BRANDED ‘NOT CLEAR’
A RIVAL airline has warned Eleuthera business owners and residents that the future of Silver Airways is “not clear” and they should consider using other operators.
Speaking at the North Eleuthera Business Outlook, Stuart Hanley, founder and chief executive of Aztec Airways, said if Silver Airway - which has filed for Chapter 11 bankruptcy protection in the US - was to cease operations it would have “quite an impact” on Family Island residents and visitors that depend on the airlift it offers.
“The future of Silver Airways is not clear right now, and they could come back or they could disappear. I can’t imagine an island in The Bahamas without air
service, but if that carrier were to disappear, it could have quite an impact. So, you should all consider alternatives if Silver is your every day ride,” said Mr Hanley.
Wilfred S Mullings, Bahamsair’s deputy director for sales and marketing, said the national flag carrier is currently working on developing a route from Fort Lauderdale to North Eleuthera. He added that the direct service should begin later this year or early 2026 depending on when the additional aircrafts Bahamasair is sourcing arrives.
“My sales and marketing team is in the market right now, in Fort Lauderdale, looking at a direct service from Fort Lauderdale into North Eleuthera. If all goes well, we’re looking to start that later on in the year, or first thing in the new year,” said Mr Mullings.
“We are in the process of acquiring more equipment,
and once we’re on time with that equipment, that’ll be a no brainer for Bahamasair to hop in and provide the service from North Eleuthera to Fort Lauderdale.”
Ricardo Wilson, general manager at Western Air, said the carrier has recently begun service into North Eleuthera after residents sent out a “clarion call” for addition airlift to the island.
“One of the things that we did is we did a market survey, and that in conjunction with the clarion call from the residents requesting more additional airlift. After our market study, we saw the feasibility in it and the need for it and so, on that strength, we decided to offer the service here,” said Mr Wilson.
Silver Airways announced in January its decision to file for Chapter 11 bankruptcy in Florida to “secure additional capital and undertake a financial restructuring”.
ships departing this terminal are scheduled to call on a port in The Bahamas, making it a true gateway to the islands.
In a statement, the airline said it voluntarily entered the Chapter 11 proceedings which were expected to be completed during the 2025 first quarter.
Silver Airways has regular direct flights from the US to Abaco, Eleuthera, Bimini, Exuma, Grand Bahama and New Providence, making the airline an important partner in ensuring airlift to the Family Islands. The airline maintained that during the proceedings all tickets will remain valid and operations will continue as usual. In March, some visitors were abruptly stranded in The Bahamas over a weekend when Silver Airlines was forced to cancel its Orlando services
Speaking on barriers to expanding operations in the country, Mr Wilson said operational costs are a major challenge. He explained that although Western Air is frequently called on to provide
additional airlift to Family Island events, those trips also have high operational costs as they often have to make empty trips to collect another round of passengers.
“Operational costs have always been the driving force behind increases, from fuel prices to the vendors, to business license, to staffing, to parts,” said Mr Wilson.
“We see the calls from the public to add extra flights to different destinations when some major events are going on. Yes, we’d like to bring 500 people to your event, but that becomes a challenge to just pick up a plane and take 50 passengers there, don’t bring nobody back and we have to go back and pick them up again. So we operate that aircraft like that it’s an operating cost that we incur for staff, fuel etc.”
Mr Wilson suggested that the Government could provide some assistance to
airlines to offset these costs and ensure there is sufficient airlift to facilitate the volume of visitors.
“I’m hoping that, one day, the Government would bring in some kind of assistance to help offset these costs. They want the islands to be successful with their events, they want people to come to their constituency, their island, to help boost the island. And we have no problem bringing them, but we certainly appreciate the help with the cost of getting them there,” said Mr Wilson.
Mr Hanley said among the biggest barriers to operating in The Bahamas are “fees, excessive fees and unreasonable fees”. He added: “It really comes down to three things. Our biggest challenges in The Bahamas, it’s fees, excessive fees and unreasonable fees.”
MSC launches new Miami cruise facility
MEDITERRANEAN
Shipping Company (MSC) has unveiled in Miami what it describes as the world’s largest cruise terminala move that could boost vessel and passenger traffic to The Bahamas.
MSC’s cruise division, in a statement, said the PortMiami facility was developed in partnership with both the port and Miami-Dade County. Using a concept created by design firm, Arquitectonica, it was built by Fincantieri Infrastructure, a specialist in large-scale construction projects.
MSC added that the terminal, spanning more than 492,000 square feet equivalent to 8.5 American football fields, is capable of processing up to 36,000 passengers daily and is designed to accommodate up to three ships at once. The company said it will support the deployment of its newest and most efficient vessels. The terminal, along with the new cruise division US headquarters in Miami and expanded office in Fort Lauderdale, underscores MSC’s long-term commitment to the region.
Pierfrancesco Vago, executive chairman, for MSC’s cruise division, said: “Our new cruise terminal is the most advanced in the world, designed to offer a seamless experience for our guests before and after their cruise, setting a new benchmark for the industry.
“This proud moment reflects our unwavering commitment to Miami and its vibrant community, a partnership that spans over 20 years. The terminal
symbolises our dedication to quality tourism and innovation, and we are grateful for the strong collaborations that have brought this vision to life. This incredible state-of-the art facility will not only enhance the travel experience but also bring significant economic benefits to the region, creating jobs and fostering growth in the local economy.”
Among those attending the opening were members of the US House of Representatives; secretary J. Alex Kelly, Florida Department of Commerce; Miami-Dade county mayor, Daniella Levine Cava; Edoardo Rixi, Italian deputy minister of infrastructure and transport infrastructure; and Pierroberto Folgiero, Fincantieri’s chief executive and general manager. The MSC statement said that, with four ships sailing from the new terminal in 2025 including the MSC World America, The Bahamas stands to benefit from greater passenger traffic, extended itineraries and higher value guests.
Taxi drivers’ airport protest is resolved
By FAY SIMMONS Tribune Business Reporter jsimmons@tribunemedia.net
THE Ministry of Energy and Transport has voiced its “disappointment” over Friday’s demonstration by taxi drivers at The Bahamas’ leading aviation gateway. It hit out after drivers stationed at Lynden Pindling International Airport (LPIA) protested over what they asserted was a move to lock them out of the commercial lane to service visitors. In a statement, the Ministry said the industrial action stemmed from a “rumour” and the “misunderstanding” has been resolved with the Nassau Airport Development Company (NAD).
“While the demonstration has ended, the ministry and the Road Traffic Department wish to publicly express disappointment at the incident. We are advised that the demonstration stemmed from a rumour which led some taxi drivers to believe that they limited access to the airport to pick up passengers. The Ministry has since been advised by Nassau Airport Development Company that the rumour is untrue and the misunderstanding has been resolved,” said the ministry.
“Further, the Ministry is aware that recent elections for The Bahamas Taxi Cab Union were held and that there was a change in leadership. However, the ministry and Road Traffic Department have not been made aware of any grievances by taxi drivers and have not met with the new executives of the union.”
NAD, operator of LPIA, also released a statement advising that ground transportation operations at the airport had resumed and a meeting will be held with the new Bahamas Taxi Cab Union (BTU) representatives this week.
“Today, the airport experienced a brief disruption to ground transportation services as a result of concerns raised by the Bahamas Taxi Cab Union. The airport worked in close coordination with the Road Traffic Department, the Airport Authority and the airport police to monitor and manage the commercial lane during this disruption,” said NAD.
“At this time, ground transportation operations at LPIA have returned to normal. As airport operators, we remain committed to working in collaboration with all stakeholders, including our ground transportation providers. NAD, along with other relevant stakeholders, will hold meetings with the union next week to address their concerns.
“As always, the safety and comfort of our guests, staff and airport partners remain our top priorities. We thank the travelling public for their patience and understanding while we worked to resolve this issue.”
THE NEW MSC terminal at PortMiami showcases its striking design and smooth embarkation experience. All
$200M ELEUTHERA INVESTMENT AS ‘CHICKENS COME HOME TO ROOST’
By NEIL HARTNELL
Editor
A Cabinet minister has conceded that “the chickens have come home to roost” while estimating that the Government has directly invested over $200m in upgrading Eleuthera’s utility and other infrastructure.
Clay Sweeting, minister of works and Family Island affairs, in addressing the recent Harbour Island Business Outlook acknowledged that the island’s recent power, water and other utility woes stem from “decades of neglect” by successive administrations that has left the island’s infrastructure unable to keep pace with its economic growth and the extra demands this has imposed.
Conceding that the “infrastructure is just now catching up”, the minister pledged that long-awaited construction on a new $60m Glass Window Bridge will start in the 2025 third quarter while a $12m upgrade and extension to Harbour Island’s dock is scheduled to go before the Davis administration’s Cabinet for approval this week. “While I was sitting there, I started to calculate,” Mr Sweeting told Outlook attendees during his keynote address. “I wanted to get the full number on this, and will share it with the Eleuthera Chamber of Commerce, to see the amount of investment that the Government has made in Eleuthera.
“So I calculated a little bit, and currently what we have committed, are
GOV’T TOLD: EXPLAIN $652M CENTRAL BANK ADVANCES
By NEIL HARTNELL
Editor
A KEY fiscal watchdog is urging the Government to explain why it obtained
$652.1m in advances from the Central Bank during the fiscal year’s first half when this was never included in its annual borrowing plan.
The newly-reformed Fiscal Responsibility Council, which is charged with assessing the Government’s compliance with fiscal legislation, plus the accuracy of its Budget forecasts, also noted that the $1.609bn in gross domestic financing raised during the 2024-2025 fiscal year’s first half also exceeded the full year amount detailed in the annual borrowing plan by 6.5 percent.
The annual borrowing plan, which is supposed to be released every year after the Budget, details how the Government plans to raise financing to cover its projected fiscal deficit (new debt) as well as refinance/ rollover existing debt that is maturing such as Bahamas Registered Stock or bonds plus short-term Treasury Bills.
However, the 2024-2025 fiscal year’s annual borrowing plan made no mention of any reliance on, or use of, Central Bank advances (loans) to meet the Government’s financing needs. Instead, it spoke to raising gross financing worth
$1.075bn from issuing bonds and Treasury Bills plus obtaining a further $100m in loans.
Some $235.5m in foreign currency loans comprised the balance of $1.41bn targeted to be raised from Bahamas-based investors and the Bahamian capital markets. “For the first six months of the fiscal year, the Government raised $1.609bn in gross domestic financing, surpassing the amount programmed in the annual borrowing plan for the fiscal year by 6.5 percent,” the Council said in its report on the mid-year Budget.
“Of this amount, Treasury Bill issuances were $166.6m, representing just 8.1 percent of the $2.069bn programmed for the period. Bond issuances at $462.7m were 4.8 percent greater than the amount scheduled, based on the bond issuance calendar. Local currencydenominated loans totalled $100m, in line with the planned amount for the fiscal year.
“Unplanned Central Bank advances totalled $652.1m, while foreign currency-denominated loans accounted for $228m, 3.2 percent less than the amount programmed for the fiscal year. Debt repayments during the period totalled $1.231bn, resulting in a net incurrence of domestic liabilities of $378.4m.”
working on or have put out to tender, we are almost.... we are over $200m in infrastructural government direct investment into Eleuthera. We are pushing to get that a little bit more, but I think that goes to show the focus and the commitment that the Government has to Eleuthera.”
Pointing to specific projects being undertaken by the Ministry of Works, Mr Sweeting said it is in the process of selecting a contractor to construct a new Glass Window Bridge with project financing now secured. “We continue to navigate the priorities of the ministry and financial resources available in creating a path for the growth of the Family Islands, which has been a journey,” he added.
Focusing on the Central Bank advances, the Council said: “The Fiscal Responsibility Council recommends that the Government provide an explanation for the significantly lower than planned issuances of Treasury Bills, and the recourse to unplanned financing through Central Bank advances.” And it warned that the increased reliance on Central Bank advances was heightening refinancing risks for the Government.
“Reliance on short-term financing in the form of Treasury Bills and Central Bank advances exacerbates refinancing risk in the domestic portfolio. At endDecember 2024, 41.5 percent of domestic debt was set to mature within a year, representing an increase of 1.5 percentage points relative to end of the 2023-2024 fiscal year,” the Council’s report said.
“Similarly, the average time-to-maturity (ATM) of the domestic portfolio decreased by 0.5 years from 6.6 years at the end of fiscal year 2023-2024 to 6.1 percent at end-December 2024. This does not augur well for the achievement of the medium-term target of a seven-year ATM (average time to maturity) set out
Describing the Glass Window Bridge project as having “significant economic impact and cultural impact on the entire island of Eleuthera”, the minister acknowledged that many island residents will not believe it is happening until they actually see the work starting.
“I know you will say ‘we’ve heard that before’, and I know you’ll say ‘it ain’t going to happen’, and I know you’ll say a lot of things,” Mr Sweeting added. “But if you look at my track record, if I announce it from a podium then it’s going to happen....
“The EOI (expression of interest) has been out. Seven contractors have applied, and have been to the Glass Window Bridge this week to see what they need to do to put in their
in the Medium-Term Debt Management Strategy.
“The Fiscal Responsibility Council suggests greater focus on the development of the domestic bond market if the Government is to achieve the refinancing risk benchmark/target set out in the medium-term debt management strategy.”
The Council also noted that the debt-to-GDP projections for the 2024-2025 and 2027-2028 fiscal years are 0.6 percentage points and 0.5 percentage points higher than the forecasts contained in the 2024 Fiscal Strategy Report.
“With the Government targeting a debt-to-GDP ratio of no more than 50 percent by end of fiscal year 2030-2031, effective management of fiscal and
bid tender package. We have already secured the financing, and we look to hopefully start work by the third quarter of this year.”
Mr Sweeting said Spanish Wells will “be outfitted with a new public fishing dock, which should go out to tender tomorrow, and during my Budget speech in May 2024 I noted my ministry was prepared to undertake a project to significantly improve the Harbour Island dock facility.
“I am pleased to announce that by summer 2025 the refurbishment of the dock should commence,” the minister added. “Procurement has been approved, and it’s back to Cabinet to get final approval next week so this long-awaited project will start soon.
debt operations is critical, particularly given the vulnerability of GDP to various external shocks,” it warned.
“The FRC notes that given the net increase in the debt stock during the first half of the year, net repayments will be essential going forward for planned reductions in the debt-toGDP ratio to be achieved.
Further, the FRC finds that given the deviation in planned financing recorded for the fiscal year thus far, it is appropriate that the Government outline planned debt operations for the remainder of the year.
“The FRC further notes that it would be helpful for the Government to provide fiscal strategies matching the time horizon of the
“Might I add that it’s not just a refurbishment. This would encompass not just refurbishment of the current dock but this includes new construction, so it would go out to the west more, we would add sidewalks for pedestrians walking, we would widen the access point - what heads out to the docking facility. There will be timber docks added for the ferry boat drivers, and also a ramp for the ro-ros (roll on, roll off freight) that comes into Harbour Island.
“It’s something exciting. It’s going to be a little painful, plus construction persons are coming to off-load freight, but we’re going to try and do it as painlessly as possible to ensure Harbour Island gets what it deserves.”
projected debt trajectory toward a debt-to-GDP ratio of 50 percent by fiscal year 2030-2031 and supporting achievement of the projected fiscal surpluses that underpin attainment of this target.”
The Council also recommended that “Treasury Bill issuances are included in the annual borrowing plan, and that redemptions are reflected in debt repayment obligations... The explicit inclusion of Treasury Bill issuances in the borrowing plan will promote transparency, in accordance with the general principles of responsible fiscal management, as outlined in the Public Finance Management Act”.
Chief Justice extends San Salvador water cut-off bar
extended it on the basis that the Water & Sewerage Corporation would clearly suffer the greater harm if operations at the Cockburn Town reverse osmosis plant ceased because then it would be unable to fulfill its “statutory function to supply water” to residents and businesses on San Salvador, which is the Prime Minister’s constituency.
And, in dismissing Aqua Design’s arguments that the Water & Sewerage Corporation had failed to make “full and frank disclosure” in obtaining the injunction, Sir Ian’s ruling also revealed that there is a more than $10.5m ‘gap’ between the two parties over the potential sale of four of the private provider’s seven reverse osmosis plants to the state-owned utility.
The judgment quoted at length from an affidavit sworn by Robert Deal, the Water & Sewerage Corporation’s general manager, who disclosed that it had “entered into negotiations for the sale and purchase” of the four plants. While these locations were not identified, two appeared to be the San Salvador reverse osmosis plant as well as the facility at Waterford in Eleuthera.
Mr Deal said the Water & Sewerage Corporation, on August 9, 2024, wrote to Aqua Design (Bahamas) requesting a list of materials, equipment, parts, chemicals and other goods present at the four plants and their value in accordance with the ‘master agreement’ between the two sides. The plant operator responded on November 10, 2024.
“The defendant [Aqua Design] then extended an offer to the claimant [Water & Sewerage Corporation] for the sale of its businesses for $18.767m,” Mr Deal said. “However, the valuation range obtained by the claimant relating to the market value of the desalination plants is between $5.378m and $8.068m.
“The substantial difference between the
defendant’s offer price and the claimant’s valuation is due to the fact that Aqua Design is purporting to sell an ongoing business for the continued production of water, while the claimant is seeking the sale and purchase of the assets/facilities [at the four plants[, not an ongoing business.”
However, before negotiations could intensify the San Salvador dispute came to a head. Sir Ian, in his ruling, wrote that the ‘master agreement’ governing Aqua Design’s supply of water to the Water & Sewerage Corporation’s customers on several Family Islands was signed on August 12, 2011, under the last Ingraham administration.
Subsequently, several underlying sub-agreements were signed by the two sides to govern the “design, build, commission and operation” of the Aqua Design reverse osmosis plants. One of these covered the San Salvador plant. The San Salvador deal expired on May 22, 2022, and was extended for several months until December 17 that year.
Following the second and final expiration, Aqua Design has continued to supply the Water & Sewerage Corporation’s clients in San Salvador and receive
payment. However, Sir Ian wrote: “Aqua says that since 2022 it repeatedly advised Water & Sewerage Corporation that the San Salvador plant required essential facility upgrades to maintain operational safety.
“The Water & Sewerage Corporation has expressed concerns as to this fact considering that Aqua was obligated by the contractual arrangements to repair and maintain the plant throughout the terms of the contract. Aqua says that it had apprised Water & Sewerage Corporation that the plant needed upgrading but that it would only do so if the costs of the same could be financed by a long-term agreement...
“Water & Sewerage Corporation says that on November 20, 2024, Aqua purported to give notice to it that unless it committed to addressing the safety and contract requirements by November 30, 2024, it would cease operations at the plant.”
In a bid to resolve their differences, a meeting was held at the Ministry of Finance on December 17, 2024. The Government and Water & Sewerage Corporation told Aqua Design that they were “interested” in reaching a deal by January 31, 2025, for it to
continue operating the San Salvador plant until endJune this year. Thereafter, the Water & Sewerage Corporation would acquire the reverse osmosis plant.
While Aqua Design was also invited to submit a proposal addressing the “safety concerns” at the plant, the company said it became clear “no meaningful agreement” could be reached because the Water & Sewerage Corporation was adamant that it must bear the cost of all repairs and ensuring the plant stays in operation.
“Water & Sewerage Corporation had taken upon itself measures to ‘repair’ the plant. However, Aqua made clear that, as long as it was responsible for plant operations, it would not permit Water & Sewerage Corporation to conduct welding work on the plant’s container because of the associates risks, which rendered replacement necessary,” the Chief Justice wrote.
“On January 27, 2025, Aqua formally notified Water & Sewerage Corporation that the plant was in such a condition as to cause a safety risk to the operators and that Aqua would no longer risk the safety of its workers. Aqua also attached a draft sales agreement offering to sell the
plant to Water & Sewerage Corporation for $600,000.
“Water & Sewerage Corporation says that on January 27, 2025, Aqua served notice on Water & Sewerage Corporation that it would cease operations at the plant effective January 30, 2025, triggering the commencement of this action and emergency application for injunctive relief.”
The Water & Sewerage Corporation is seeking Supreme Court declarations that the rights and obligations of both parties are continuing despite the agreements’ expiration; that it has the “right of first refusal” to acquire Aqua Design’s plants as assets, not ongoing businesses, “for a seamless transfer with no interruption in water supply”; and orders requiring Aqua Design to enter sales talks and repair plant deficiencies.
Sir Ian, in his verdict, said the two sides are at odds over clauses in their ‘master agreement’ relating to “the effect of the right of first refusal and the obligation to leave the plant in a ‘neat and tidy’ condition, as well as repairs to plant defects and deficiencies “and whether Aqua should assume responsibility for addressing safety concerns and structural repairs”.
Aqua Design’s position was “there is no issue to be tried” as the ‘right of first refusal’ did not impose an obligation upon itself to sell the plant or that there be a ‘seamless transfer’ to the Water & Sewerage Corporation. Instead, it argued that it merely has to compile a list of the plant equipment and inventory and offer it to the stateowned utility first.
The plant operator said it has also consistently told the Water & Sewerage Corporation it would not invest in plant upgrades without the renewal of a long-term contract, but added that it had continued to make necessary repairs as needed to meet water quality and demand.
The Water & Sewerage Corporation, though, countered that “Aqua cannot simply walk away from the contractual arrangements” even though they have expired and must provide it with adequate notice.
Agreeing that there is a “serious issue” to be tried, Sir Ian also noted than an “open-ended” injunction would be “unfair” to Aqua Design.
And, pointing out that the two sides had continued to operate as if bound by the sub-agreement despite its December 2022 expiry, the chief justice added: “It is therefore indeed a real question of how, if Aqua was complying with its obligation under the contract to repair and maintain, how it would be handing over for purchase by the Water & Sewerage Corporation a plant that is in such bad shape?”
Aqua Design argued that the injunction will force it to “continue operating the plant against its will” and “open it up to liability in the event that a workman is injured due to the unsafe conditions at the plant”, while also blocking its ability to “terminate the supply” at any of the four plants it is seeking to sell. Sir Ian, though, rejected this on the basis that an undertaking by the Water & Sewerage Corporation to pay damages if the injunction was ultimately deemed unwarranted would provide it with sufficient compensation.
“The balance of convenience clearly lies with the Water & Sewerage Corporation,” he ruled, “who will be unable to carry out its statutory function to supply water to the community of San Salvador, the result of which could be the decimation of the business and residential community of San Salvador.”
Sir Ian also dismissed Aqua Design’s allegations that the Water & Sewerage Corporation had failed to disclose all relevant facts in obtaining the injunction, finding that any errors - if they had occurred - were “innocent and not material”. He thus extended the injunction for an additional seven months.
Tara Cooper-Burnside KC and Miguel Darling, of Higgs & Johnson, represented the Water & Sewerage Corporation. Luther McDonald KC, with Keri Sherman and Rashae Newbold, of Alexiou, Knowles and Co represented Aqua Design (Bahamas).
‘Significant downside risks’ as deficit hits $400m mark
Budget, noted the wide gap between the actual halfyear and projected full-year deficit, said: “While the Government has expressed optimism that the target deficit will be met, the FRC recognises that meeting the fiscal balance target will require revenue to outperform expenditure by $328.3m (now $332m) over the remaining six months of the year.
“The FRC finds that the presentation of more information supporting the Government’s position would have provided further insight into the rationale for the variance.” And the Council said the IMF’s cuts to The Bahamas’ and US economic growth outlook for 2025 - even before Mr Trump’s tariffs emerged - signalled that there are “significant downside risks to the fiscal forecasts” given that they are based on higher growth.
“The FRC notes that a key budgetary assumption for growth, in real GDP of 2.6 percent in fiscal year 2024-2025, is higher than the IMF’s revised forecast for the Bahamas of 1.9 percent and 1.7 percent in 2024
and 2025, respectively,” the Council added. “The combination of a lower growth projection and anticipated deceleration suggests greater risk to budgetary forecasts for fiscal year 2024-2025. The FRC notes downside risk to the end-of-year fiscal outlook should actual growth fall short of the forecasts assumed by the Budget.”
The mid-year Budget statement shows real GDP growth projected at 2.6 percent for 2024-2025, a measurement that strips out inflation, and the FRC reiterated in its concluding statement: “Overall, the FRC finds that the Government’s programmed fiscal targets for fiscal year 20242025 are acceptable, albeit with downside risks.
“However, downside risks associated primarily with what could be less than favourable revenue performance during the second half of the fiscal year are noted.... It is also critical to note that rising geopolitical tensions spurred by the policies of the US government invite uncertainties around the growth prospects for the country’s main trading partner, presenting implications
Trump administration nixes plan to cover anti-obesity drugs through Medicare
By TOM MURPHY AP Health Writer
President Donald Trump's administration has decided not to cover expensive, high-demand obesity treatments under the federal government's Medicare program.
The Centers for Medicare and Medicaid Services said late Friday that it would not cover the medications under Medicare's Part D prescription drug coverage. Medicare covers health care expenses mainly for people age 65 and older.
Trump's predecessor, Joe Biden, proposed a rule in late November after Trump won re-election that would have extended coverage of drugs like Zepbound and Wegovy. The rule was not expected to be finalized until Trump took office.
Trump returned to office in January. The Senate confirmed Dr. Mehmet Oz to
lead the Centers for Medicare and Medicaid Services on Thursday. CMS did not offer an explanation Friday for its decision, and federal spokespeople did not immediately respond to requests for comment.
Trump's Health and Human Services secretary, Robert F. Kennedy Jr., has been an outspoken opponent of the injectable drugs, which have exploded in popularity due to the potentially life-changing weight loss that some patients experience.
Polls show Americans favor having Medicaid and Medicare cover the costs.
But many insurers, employers and other bill payers have been reluctant to pay for the drugs, which can be used by a wide swath of the population and can cost hundreds of dollars a month.
for domestic businesses and economic growth.
“Notably, the US’ April 2, 2025, unveiling of expansive tariffs on all countries, including a 10 percent tariff for The Bahamas, has been foreshadowed as the beginning of the global trade war, posing downside risk for the economy.”
The Council also said it would have been better for the Government to publish an assessment of how much VAT revenue it is foregoing as a result of slashing the rate to 5 percent for all unprepared food with effect from April 1, 2025, and how this will be compensated for.
Michael Halkitis, minister of economic affairs, previously said the Government is giving up around $30m per annum in VAT revenues due to the move but added that robust collections in other areas will more than make up for this.
However, the Council added: “The FRC is of the view that a presentation of the costing of the halving of the VAT rate to 5 percent on unprepared food, including on imported food, would have been appropriate as an assessment of the
Biden's proposal was expensive: It would have included coverage for all state- and federally funded Medicaid programs for people with low incomes, costing taxpayers as much as $35 billion over next decade.
Proponents of the coverage have argued that treating obesity can actually reduce longer-term costs by cutting down on heart attacks and other expensive health complications that can arise from the disease.
The benefits consultant Mercer has said that 44% of U.S. companies with 500 or more employees covered obesity drugs last year.
Medicare does pay for drugs like Wegovy for patients who have heart disease and need to reduce their risk of future heart attacks, strokes and other serious problems. The federal program also covers versions of the drugs that treat diabetes.
More than a dozen state Medicaid programs already cover the drugs for obesity.
impact on VAT collections and wider implications for achievement of the fiscal balance target.”
And, while the Ministry of Finance’s fiscal reports signal that the monthly deficits are on a downward trend towards being eliminated, the Government will have to generate a substantial surplus over the 2024-2025 budget year’s final five months to come close to its $69.8m target.
The law mandates that a significant deficit target miss means the Government has to produce in Parliament an explanation for why this has occurred as well as a corrective action plan. It will be relying heavily on this current period, March through April, as this coincides with peak winter tourism and economic activity, as well as Business Licence fee payments and the bulk of real property tax collections.
Meanwhile, the Ministry of Finance disclosed that the near-balanced January fiscal performance was driven by a combination of increased revenues and reduced spending yearover-year. “Preliminary data on the fiscal outturn for January 2025 showed an
estimated deficit of $3.8m compared with $46m in the prior year,” it said. “This outcome reflected a 4.6 percent, $13.3m, growth in revenue receipts to $302.1m alongside an 8.6 percent, $28.9m, decrease in spending to $305.9m. Tax collections improved yearover-year by 10.2 percent ($25.8m) to $279m
“VAT receipts rose by $7.7m to $152.4m, reflecting improvement in the goods and services and realty components. International trade and transactions taxes grew by $12.5m to $69.5m, driven by gains in both departure taxes and excise duty,” the Ministry of Finance added.
“Taxes on the use and permission to use goods increased by $5.4m to $21.1m, mostly due to an uptick in company and Business Licence fees. Non-tax revenue aggregated $22.9m for a 35.5 percent ($12.6m) decrease year-over-year owing to timing differences of rental receipts.”
As for spending, the Ministry of Finance said the Government’s fixedcost spending in January was essentially flat with
the reduction driven by a drop in its capital spending.
“The $291.4m in recurrent outlays for the month represented an increase of 0.1 percent ($0.4m) from the corresponding period in the prior year,” the Ministry of Finance added.
“Public debt interest increased by $7.5m to $64.7m; subsidies were higher by $7.5m at $48.3m, and use of goods and services decreased by $18.4m to$55.9m, driven by lower finance charges and rental payments. Capital expenditures narrowed by $29.3m to $14.4m, which was inflated in the prior year due to ongoing infrastructural renovations.”
As for the Government’s direct debt position, the Ministry of Finance added:
“During the review month, central Government’s debt outstanding decreased by an estimated $28.6m. The $120.3m in proceeds from borrowings was primarily derived from domestic currency sources (99.9 percent). Aggregate debt repayment of $149m was allocated between domestic (94.8 percent) and foreign (5.2 percent) currency redemptions.”
DONNA Cooper holds up a dosage of Wegovy, a drug used for weight loss, at her home in Front Royal, Va., on Friday, March 1, 2024.
Photo:Amanda Andrade-Rhoades/AP
BAHAMAS WARNED: ‘BRACE’ FOR 2008-2009 RECESSION REPEAT
global economy and, most importantly, the US given that it is the source market generating up to 90 percent of this nation’s annual tourists.
“We also have to brace ourselves for a recession in the US, possibly a depression globally, and we could be back to 2008 with what happened globally,” Ms Turner-Jones warned. “And I’m not being dramatic; I’m being very realistic, and I’m probably being milder than some of the other commentators including Federal Reserve chairman, Jerome Powell, today.
“I think we have to be extremely conscious that things are going to look very different for the rest of this year so Bahamians have to brace themselves.”
Few Bahamians will look back on, and remember, the 2008-2009 recession, which was triggered by the preceding global ‘credit crunch’ and financial crisis, with any fondness as the economy shrank by 2.3 percent and 4.2 percent, respectively, over those two years.
Atlantis was forced to terminate 800 workers, or 10 percent of its then-total
staff, after US travel demand plummeted, and other Bahamian resorts subsequently followed suit by releasing several hundred workers of their own. The impact rippled through the Bahamian economy to hit other businesses, resulting in several thousand workers losing their jobs.
The International Monetary Fund (IMF) later wrote that The Bahamas’ recovery from the 2008-2009 recession was “painfully slow”, with economic growth in subsequent years averaging between 1 percent to 1.5 percent. A repeat or re-run of that period will not be what any Bahamian is hoping for, but Ms TurnerJones warned that it is now a real possibility due to Mr Trump.
“Clearly we are going to be hit very, very, very, very hard by the increase in tariffs,” she told the ORG seminar, “and not just because there is a 10 percent on us. That’s the least of the problems. It’s the disruption that’s really going to come from what’s happening in the rest of the world and how that’s going to affect the global economy.
“Shielded we are not. We cannot protect ourselves
from that. What we have to do is ensure that, one, we are following the information and, two, prepared to make some difficult decisions. Much will depend on how long Mr Trump’s tariffs, many of which took full effect over the weekend, remain in place, whether they are increased or decreased, and when.
A lot will also hinge on how the rest of the world reacts, and how many countries race to Washington D.C. to seek a removal or reduction of tariffs on themselves and/or strike free trade deals with Mr Trump. Other nations, though, could follow China’s lead by imposing retaliatory tariffs on US imports to their countries, potentially triggering a cycle of ‘tit-for-tat’ rate hikes and a full-blown global trade war.
Given that tariffs are taxes levied on imported goods at the border, US consumers are almost certainly the ones going to be paying the increased cost associated with the US president’s ambitions for his new policy to drive manufacturers and industry to relocate back to North America and bring jobs with them.
This, in turn, threatens to reduce the disposable income and wealth enjoyed by US citizens and, if living standards are reduced, among the first things to usually be sacrificed are discretionary spending on items such as vacations to The Bahamas.
Chester Cooper, deputy prime minister and minister of tourism, investments and aviation, said as much at last week’s south and central Eleuthera Business Outlook conference: “We anticipate over the course of the next few months that there will consistently be some uncertainty in the marketplace.
“Yesterday and today, the world is swirling as a result of the tariff wars, which is going to result in an overall increase in the cost of living, particularly for Americans. Eighty percent of our tourists come from the USA, and therefore this will have some resulting impact on our major industry.”
However, Thomas Sands, the Eleuthera Chamber of Commerce president, said potential and existing foreign investors were urging the island “not to be distracted by the noise to the north” and instead focus on what it can control and
makes it an attractive location to do business despite concerns over the economic fall-out.
“We are hopeful... that the present economic growth continues, and it’s incredible momentum is continued, despite the new level of global disruption and uncertainty,” Mr Sands said. “Smart and sophisticated investors who love Eleuthera tell me not to be distracted by the noise to the north but, instead, Eleuthera should stay the course and the end result will drive even more desire to invest in and live in Eleuthera.”
Ms Turner-Jones, meanwhile, said The Bahamas’ dependence on the US for nine out of every ten tourists, as well as the majority of its imported food, other goods and supply chain logistics, “may come to bite us” in the aftermath of Mr Trump’s tariff imposition. While praising the urgency with which the Davis administration is seeking to develop new supply chains and routes, and source product from markets outside the US, she warned this would take time to set up and bear fruit.
Creators Alliance participants urged: Speak to Commission
FROM PAGE B1
are confident in the things we were able to say in the statement. We expect to put put another notification to the public shortly, but I wouldn’t want to say what that notification is.”
It is unknown how many Bahamians were sucked into investing with and/or promoting Creators Alliance, so potential victims and their collective loss cannot be estimated at present. Urging persons with knowledge of the scheme to come forward, Ms Rolle said: “Certainly we would want the public to come forward because the information the public gives can help us in tracing the ultimate principals.
“No one has come forward. My team has been in touch with some people we know to have been involved, but no one has come forward with a formal complaint. To help with the tracing, if we could trace who got whom involved, we can sometimes trace where this thing leads to.
“Unfortunately, people are really very reluctant to do so. Scammers know that and rely on that, but people shouldn’t be embarrassed to come forward.” Ms Rolle said it appeared as if Creators Alliance “had more of a presence in Freeport” than Nassau, although that does not mean potential investors and victims are confined to The Bahamas’ second city. Tribune Business attempted to contact what appeared to be a physical office for Creators Alliance in Freeport, but the numbers either rang out or went straight to voice mail. Conceding that it was often difficult to track down, and take action against, the masterminds of such schemes who are typically based outside The Bahamas, Ms Rolle added: “It’s always very hard to put hands on the principals when many of them are offshore.
“Shutting down these types of operations is a bit tricky when they don’t have a physical presence, and is a bit trickier in terms of
getting involved with Internet Service Providers (ISPs) to shut down websites. Usually you shut one down and another pops up. We’re also speaking to the police on this as well. As far as possible, we will be jointly investigating this with the police.”
Concerns over Creators Alliance have erupted in recent days with persons claiming that they had been locked or frozen out of the platform, unable to withdraw and funds, while payouts have ceased. The scheme appears to have tentacles throughout the Caribbean region, with complaints being voiced from locations such as St Lucia, St Vincent and the Grenadines and Puerto Rico. The Securities Commission, in a statement issued on Friday, warned that Creators Alliance has not been registered or licensed with itself and thus appears to be operating in this nation in violation of Bahamian law.
“It has come to the attention of the Commission that Creators Alliance (CA) may be
conducting activities, in or from within The Bahamas, that are either registrable/ licensable or illegal under one or more of the Acts,” it said.
“The Commission hereby advises the public that Creators Alliance and its agents/ representatives are not registered with or licensed by the Commission. Furthermore, its activity may be such that it constitutes a violation of one or more of the Acts.”
The Securities Commission asserted that investigations have revealed Creators Alliance appears to be operating as a multi-level pyramid scheme, with participants charged to bring new persons into the scheme, and monies injected by new investors being used to pay off older ones.
“Creators Alliance appears to be an organisation based in California, US. The Commission’s information suggests that the company’s business is that of marketing via the use of purported promotional videos
“The one I keep hearing from the administration this week is, oh, we need to find other ways to import foods into The Bahamas,” Ms Turner-Jones said, “which, while that’s a really good idea, the logistics of shipping - let’s call it between South America and the Caribbean - is under-developed and, while having spent 10 years at the IDB and been through how we can improve integration efforts between the Caribbean and Central America and Latin America, we have not been able to do that.
“There’s a tremendous space there for opportunities. I’m happy to hear that from the administration, but it’s just.... not easy to do. We are so much tied to the logistics of the US for shipping and maritime routes and so on. Even our airlines; most of our flights are connected to North America. It will take some time.
“The Government needs to sit at the table, invite our European partners to say what we can do, how we can get the airlift from Europe if the Americans, there’s going to be a crash in that economy. What can we do to get our business from quickly and what can we do to diversify where our goods come from?”
of varying content,” the Bahamian regulator warned.
“However, inquiries have determined that the entity is operating a multi-level structured programme whereby persons are recruited into the programme at one of several levels. The recruiters in turn receive a stream of income determined by the size of the recruitment. In order to enter the programme, each person is required to invest a sum of money (the purchase price) for a period of six or seven months.
“During the ‘investment period’ individuals are promised a daily income, which is generated by simply watching videos. Persons recruited are promised that they will receive their initial investment (the purchase price) at the end of the investment period,” the Securities Commission continued.
“This activity by Creators Alliance has the hallmarks of a pyramid scheme, which is a financial scheme defined by the Financial and Corporate Service Providers Act 2020. This renders Creators Alliance an unlawful operation in this jurisdiction.”
Creators Alliance, though, last week sought to reassure participants that the scheme was just working through
technical difficulties. Shiro Hing, a manager of Creators Alliance, said: “I want to take a moment to clear up any concerns that have arisen over the past few hours. Creators Alliance has not crashed. Instead, we have made an elaborate shift to a new system that will greatly enhance security, efficiency and overall user experience.
“Earlier today, I had a conversation with our founder, Mark Eddo, regarding these changes. He reassured me that this transition was a necessary step in strengthening the platform and ensuring long-term sustainability for all members. While we understand that this shift may have caused temporary disruptions, please know that this was all part of a carefully planned upgrade.
“We sincerely apologise for any inconvenience this may have caused. Rest assured that all salaries will be processed and received within the next few hours as final adjustments to the system are completed. We appreciate your patience, trust and commitment to Creators Alliance. If you have any questions or need assistance, our support team is available to help.”
N O T I C E
EXXONMOBIL GAS AND POWER MARKETING INVESTMENTS LIMITED
Creditors having debts or claims against the abovenamed Company are required to send particulars thereof to the undersigned c/o P.O. Box N-624, Nassau, Bahamas on or before 30th day of April A.D., 2025. In default thereof, they will be excluded from the beneft of any distribution made by the Liquidator.
Dated the 7th day of April, A.D., 2025.
Michael J. Gilroy Liquidator
22777 Springwoods Village Parkway Spring, Texas 77389 U.S.A.
N O T I C E
EXXONMOBIL GAS AND POWER MARKETING INVESTMENTS LIMITED
N O T I C E IS HEREBY GIVEN as follows:
(a) EXXONMOBIL GAS AND POWER MARKETING INVESTMENTS LIMITED is in dissolution under the provisions of the International Business Companies Act 2000.
(b) The dissolution of the said Company commenced on the 3rd day of April 2025 when its Articles of Dissolution were submitted to and registered by the Registrar General.
(c) The Liquidator of the said Company is Michael J. Gilroy, of 22777 Springwoods Village Parkway, Spring, Texas 77389, U.S.A.
Dated the 7th day of April, 2025.
HARRY B. SANDS, LOBOSKY MANAGEMENT CO. LTD. Registered Agent for the above-named Company
The skyrocketing cost of weight-loss drugs has state Medicaid programs looking for a solution
By SUSAN HAIGH and MARC LEVY Associated Press
STATES increasingly struggling to cover the rising cost of popular GLP-1 drugs like Wegovy, Ozempic and Zepbound are searching for ways to get out from under the budgetary squeeze that took them by surprise.
One solution some policymakers may try is restricting the number of people on Medicaid who can use the pricey diabetes drugs for weight-loss purposes.
Pennsylvania's Medicaid coverage of the drugs is expected to cost $1.3 billion in 2025 — up from a fraction of that several years ago — and is contributing to projections of a multibillion-dollar budget deficit.
The state is thinking about requiring Medicaid patients who want to use GLP-1s for weight loss to meet a certain number on the body-mass index or try diet and exercise programs or less expensive medications first.
"It is a medication that's gotten a lot of hype and a lot of press, and has become very popular in its use and it is wildly expensive," Dr. Val Arkoosh, Pennsylvania's human services secretary, told a state House hearing in March.
At least 14 states already cover the cost of GLP-1 medications for obesity treatment for patients on Medicaid, the federal health care program for people with low incomes. Democrats and Republicans in at least a half-dozen other states floated bills this year to require the same coverage, according to an Associated Press analysis using the bill-tracking software Plural.
Some bills have stalled while others remain alive, including a proposal in Arkansas requiring GLP-1s to be covered under Medicaid when prescribed specifically for weight loss. Iowa lawmakers are thinking about ordering a cost-benefit analysis before making the commitment.
Already, West Virginia and North Carolina ended programs in 2024 that provided coverage for state employees, citing cost concerns.
"It is very expensive," said Jeffrey Beckham, the state budget director in Connecticut, where Medicaid coverage of the drugs for weight loss may be scrapped entirely. "Other states are coming to that conclusion, as well as some private carriers."
Overall Medicaid spending on GLP-1 drugs — before partial rebates from drug manufacturers — jumped from $577.3 million in 2019 to $3.9 billion in 2023, according to a November report from KFF, a nonprofit that researches health care issues. The number of prescriptions for the drugs increased by more than 400% during that same time period. The average annual cost per patient for a GLP-1 drug is $12,000, according to a PetersonKFF tracker.
About half of Americans "strongly" or "somewhat" favor having Medicare and Medicaid cover weight-loss drugs for people who have
obesity, a recent AP-NORC poll showed, with about 2 in 10 opposed the idea and about one-quarter with a neutral view.
But Medicare does not cover GLP-1s, and the Trump administration said Friday that wouldn't put into place a proposed rule by presidential predecessor Joe Biden to cover the medications under Medicare's Part D prescription drug coverage. Biden's proposal was expensive: It would have included coverage for all state- and federally funded Medicaid programs, costing taxpayers as much as $35 billion over next decade.
Medicaid over the next decade.
Connecticut is facing a $290 million Medicaid account deficit, and Democratic Gov. Ned Lamont proposed doing away with a 2023 requirement that Medicaid cover GLP-1s for severe obesity, though the state has never fully abided by the law due to the cost.
Starting June 14, though, state Medicaid patients will be required to have a Type 2 diabetes diagnosis to get the drugs covered. Lamont also is pushing for the state to cover two less expensive oral medications approved by the FDA for weight loss, as well as nutrition counseling.
Sarah Makowicki, 42, tried the other medications and said she suffered serious side effects. The graduate student and statehouse intern is working on a bill that would restore the full GLP-1 coverage for her and others.
Sara Lamontagne, a
“It is a medication that’s gotten a lot of hype and a lot of press, and has become very popular in its use and it is wildly expensive.”
States that do provide coverage have tried to manage costs by putting prescribing limits on the GLP-1s. There's also some evidence that if Medicaid patients lose weight with the drugs, they'll be healthier and less expensive to cover, said Tracy Zvenyach of Obesity Action, an advocacy group that urges states to provide coverage.
Zvenyach also stressed how it's unclear whether patients will need to regularly take these drugs for the rest of their lives — a key cost concern raised by public officials. "Someone may have to be on treatment for over the course of their lifetime," she said. "But we don't know exactly what that regimen would look like."
About 40% of adults in the U.S. have obesity, according to the U.S. Centers for Disease Control and Prevention. Obesity can cause hypertension, Type 2 diabetes and high cholesterol, which lead to greater risks of things like stroke and heart attacks.
Dr. Adam Raphael Rom, a physician at Greater Philadelphia Health Action, a network of health centers in the city, said most of his patients who take GLP-1s are covered by Medicaid and some are non-diabetics who use it for weight loss.
"I had one patient tell me that it's like, changed her relationship to food," Rom said. "I've had patients lose like 20, 40, 60 pounds."
But obesity experts have told The Associated Press that as many as 1 in 5 people may not lose the amount of weight that others have seen come off. And in a recent survey of state Medicaid directors conducted by KFF, a health policy research organization, they said cost and potential side effects are among their concerns.
The debate over coverage coincides with rising Medicaid budgets and the prospect of losing federal funding — with congressional Republicans considering siphoning as much as $880 billion from
Dr. Val Arkoosh
transgender woman with a disability who is on Medicaid, said she regained weight when her coverage for GLP-1 medication was cut off in the past. She said she went from 260 pounds to over 300, heavier than she had ever been.
"So, it's a horrible game to be played, to be going back and and forth," said Lamontagne, whose attempts to appeal the state's recent denial of her Ozempic prescription refill have been unsuccessful.
Makowicki said GLP-1 drugs combined with weight-loss surgery helped her change her life: She's had knee-replacement surgery and lost over 200 pounds.
US consumers rush to buy big-ticket items before Trump's tariffs kick in
By CLAIRE RUSH and MARK THIESSEN Associated Press
JOHN Gutierrez had been thinking about buying a new laptop for the past year. The Austin, Texas, resident needed a computer with faster processing and increased storage for his photography work and had his sights set on a product from a Taiwanese brand.
Then President Donald Trump announced expansive new import tariffs Wednesday, including a 32% tax on imports from Taiwan. That same day, Gutierrez ordered the laptop, with a base price of $2,400, from a retailer in New York specializing in photo and video gear.
"I thought I'd bite the bullet, buy it now, and then that way I'll have the latest technology on my laptop and don't have to worry about the tariffs," he said.
Gutierrez was among the U.S. consumers rushing to buy big-ticket items before the tariffs take effect. Economists say the tariffs are expected to increase prices for everyday items, warning of potentially weakened U.S. economic growth.
The White House hopes the tariffs prod countries to open their economies to more American exports,
leading to negotiations that could reduce tariffs, or that companies increase their production in the U.S. to avoid higher import taxes.
Rob Blackwell and his wife needed a new car that could handle long drives from Arlington, Virginia, to their son's college. Their current electric vehicle is older with a limited range, and it will soon be used by his daughter, who is on the verge of getting her driver's license.
"I have been telling my wife that for some time we were going to need to do it," he said, "and I was watching to see what the president did with tariffs." Blackwell wanted another EV, but said leasing made more economic sense because the technology is ever-changing. He had his eye on the new General Motors Optiq; it's an American car but made in Mexico, which could be subject to tariffs on supply chains that might increase the cost.
"They know what we know, which is suddenly it flips from a buyer's market to a seller's market very quickly," Blackwell said, adding that he is happy with his choice.
"It was just a simple rational decision," he said. "If this is what the government's going to do, I need to get my act together." Lee Wochner, CEO of the Burbank, California-based Counterintuity marketing and strategy firm, also needed a new vehicle. He wanted a more presentable car for business meetings, but kept putting it off because of his busy work schedule.
On March 27, a Thursday, he told his firm's car broker: "Ed, I need a car pronto and it's got to happen by Sunday."
The broker gave him some car and pricing options and he leased an Audi Q3, which was delivered Sunday to his house by a nearby dealership.
A quick back-of-theenvelope calculation showed how much he saved by leasing before the tariffs were implemented. If he had waited, Wochner said, it would have cost about another $4,300.
"One of the things my car broker said was that deals that were already written, some of the dealerships were ripping them up already and renegotiating them because they were afraid that they weren't going to be able to get enough new inventory at a price anybody would buy," he said.
After hearing that tariffs would be announced, they made plans the weekend before to lease the car. He said the dealership honored the agreement they worked out before the tariffs were finalized. And although he said the salespeople were a pleasure to deal with, Blackwell sensed a shift in their stance.
SARAH Makowicki sits in the Connecticut State Capitol in Hartford, Conn., on Thursday, March 27, 2025.
Photo:Susan Haigh/AP
Iran’s currency falls to a record low against the dollar as tensions run high
By NASSER KARIMI and JON GAMBRELL Associated Press
IRAN'S rial currency traded Saturday at a record low against the U.S. dollar as the country returned to work after a long holiday, costing over 1 million rials for a single greenback as tensions between Tehran and Washington likely will push it even lower.
The exchange rate had plunged to over 1 million rials during the Persian New Year, Nowruz, as currency shops closed and only informal trading took place on the streets, creating additional pressure on the market. But as traders resumed work Saturday, the rate fell even further to 1,043,000 to the dollar, signaling the new low appeared here to stay.
On Ferdowsi Street in Iran's capital, Tehran, the heart of the country's money exchanges, some traders even switched off their electronic signs showing the going rate as uncertainty loomed over how much further the rial could drop.
"We turn it off since we are not sure about the successive changes of the rate," said Reza Sharifi, who works at one exchange.
Tensions with US squeeze the rial Iran's economy has been severely affected by international sanctions, particularly after U.S. President Donald Trump unilaterally withdrew America from Tehran's nuclear deal with world powers in 2018. At the time of the 2015 deal, which saw Iran drastically limit its enrichment and stockpiling of uranium in exchange for lifting of international sanctions, the rial traded at 32,000 to the dollar.
After Trump returned to the White House for his second term in January, he restarted his so-called "maximum pressure" campaign targeting Tehran with sanctions. He again went after firms trading Iranian crude oil, including those selling at a discount in China.
Trump meanwhile has written to Iran's Supreme Leader Ayatollah Ali Khamenei, trying to jumpstart direct talks between Tehran and Washington. So far, Iran has maintained it is willing for indirect talks, but such discussions under the Biden administration failed to make headway.
Meanwhile, Trump is continuing an intense airstrike campaign targeting the Iranian-backed Houthi rebels in Yemen, the last force in Tehran's self-described "Axis of Resistance" able to attack Israel after other militant groups were mauled by Israel during its war on Hamas in the Gaza Strip.
Mehdi Darabi, a market analyst, said he believed that foreign pressures
in recent months caused "expectations for the possibility of a decrease in oil sales and more inflation, and it caused a higher rate for hard currencies," according to Tehran's Donay-e-Eqtesad economic newspaper.
A pensioner who gave only his first name, Saeed, for fear of reprisals, said if Iran stopped its hostile policy toward the outside, financial relief could be possible.
"If we want to live a comfortable life, we should maintain good ties with our neighbors," he said. "We shouldn't bare our teeth at them. They will do the same."
Economic pressure inflames Iranian public and politics
Economic upheavals have evaporated the public's savings, pushing average Iranians into holding onto hard currencies, gold, cars and other tangible wealth. Others pursue cryptocurrencies or fall into get-rich-quick schemes.
on at least one political figure. On Saturday, the staterun IRNA news agency even quoted a portions of a statement from Mehdi Karroubi, a Shiite cleric, parliament speaker and two-time presidential candidate who has been held in his home since the 2011 Arab Spring protests. Karroubi, who also was one of the leaders of Iran's 2009 Green Movement protests, is in the process of being released from house arrest.
Meanwhile, internal political pressure remains inflamed still over the mandatory hijab, or headscarf, with women still ignoring the law on the streets of Tehran. Rumors also persist over the government potentially increasing the cost of subsidized gasoline in the country, which has sparked nationwide protests in the past.
Iran's theocracy has responded by dialing broadly back hijab enforcement and easing restrictions
"The end of my house arrest has coincided with a super-crisis that has ... put the country at the verge of devastating war," his statement said.
The falling rial has put more pressure as well on Iranian reformist President Masoud Pezeshkian.
In March, when the rate was 930,000 rials to the dollar, Iran's parliament impeached his finance minister, Abdolnasser Hemmati over the crashing rial and accusations of mismanagement.
Anger over government spending also saw Pezeshkian fire his vice president in charge of
parliamentary affairs, Shahram Dabiri, for taking a luxury cruise to Antarctica, state media reported. Though Dabiri reportedly used his own money for the trip with his wife, the Instagram photos posted of his trip angered an Iranian public scrapping by to survive.
"In a situation where the economic pressures on people are huge and the number of deprived people is massive, expensive recreational trip by officials even by their own personal fund is not defendable and reasonable," Pezeshkian said in firing Dabiri, who so far hasn't offered any public explanation for his trip.
Pezeshkian separately said Saturday that Iran wanted a "dialogue from an equal position" with the U.S. "If you want negotiations, what is the point of threatening?" Pezeshkian asked, according to IRNA. "America today is not only humiliating Iran, but the world, and this behavior contradicts the call for negotiations."
A CURRENCY exchange bureau worker counts U.S. dollars at Ferdowsi square, Tehran’s go-to venue for foreign currency exchange, in downtown Tehran, Iran, Saturday, April 5, 2025.
Photos:Vahid Salemi/AP
A CURRENCY exchange bureau worker counts U.S. dollars at Ferdowsi square, Tehran's go-to venue for foreign currency exchange, in downtown Tehran, Iran, Saturday, April 5, 2025.
ARGENTINA’S MILEI DOUBLES DOWN ON TRUMP BROMANCE AS THE WORLD REELS FROM TRADE SHOCK
By ISABEL DEBRE Associated Press
EUROPE vowed retaliation. China plotted tariffs of its own. Mexico scrambled to blunt the blow. But while the world's leaders were wringing their hands over President Donald Trump's announcement of sweeping tariffs on U.S. imports, Argentina's right-wing president was ebullient, feted at Trump's Mar-aLago club.
As part of his enthusiastic outreach to Trump, Argentine President Javier Milei flew from one of the planet's southernmost nations all the way to Palm Beach for 24 hours to receive an award honoring his libertarian agenda and, he'd hoped, to chat with Trump, who was also scheduled to attend the right-wing "American Patriot" gala.
"Make Argentina Great Again!" Milei bellowed from the ballroom stage at at Mar-a-Lago late Thursday.
It would have been the fourth face-to-face meeting between the leaders since Trump's election victory last November as President Milei, who has imposed a sweeping austerity program to fix Argentina's long troubled economy, offers himself as one of Trump's strongest allies in the global culture war against the "woke" left.
Argentina waits for the bromance to bear fruit
Whether Milei's staunch alliance with Trump can actually help crisis-stricken Argentina remains to be seen, analysts say.
"He has a special relationship with Trump that has been good for him politically, but he needs to
translate that into being good for the country economically," said Marcelo J. García, director for the Americas at New York-based geopolitical risk consultancy Horizon Engage. "He hasn't managed to do that yet."
Earlier this year, Milei pulled Argentina out of the World Health Organization after the U.S. announced its own exit.
He threatened to quit the Paris climate accord after Trump did. He outlawed gender change treatments for minors after Trump banned transgender athletes from participating in women's sports. He even promoted a cryptocurrency token echoing the $Trump memecoin — at great political cost.
Railing against socialism and feminism at speaking events all over the world — most recently, the Conservative Political Action Conference, where he gifted Elon Musk a giant chain saw modeled after the power tool he wielded during his 2023 campaign — Milei has fashioned himself into something of a MAGA celebrity.
While U.S. partners and rivals alike were criticizing Trump's tariffs, a tux-clad Milei was holding forth beside a painting of Trump's pumped fist, reveling in the opportunity to prove himself a dogged champion of the American president.
"As you can see, we conduct policy with actions, not mere words, and on that we agree with President Donald Trump," Milei told the crowd at Mar-aLago, drawing cheers at the mention of the American
president's name as he spoke in Spanish.
A libertarian defends Trump's tariffs
In Buenos Aires, Milei's government sought to reconcile Trump's major round of tariffs with its own radical libertarian ideology and fervent support for free trade.
"We do not believe this is an attack on free trade, quite the opposite," Milei's spokesperson, Manuel Adorni, said of Trump's announcement. "I don't see why there should be so much concern about this."
For all the leaders' mutual flattery, Argentina was slapped with a 10% minimum tariff. But officials framed it as uniquely preferential treatment. The front page of Argentina's largest-circulation daily, Clarín, declared: "Trump raises the tax on our products less than on other countries."
In Washington, Argentine Foreign Minister Gerardo Werthein on Thursday held what he described as "highly productive" meetings with top U.S. trade negotiator Jamieson Greer and Secretary of Commerce Howard Lutnick, releasing rosy statements promising that Argentina was on its way to negotiating a free-trade agreement with the U.S.
Cash-strapped Argentina hopes for an IMF bailout
Far more important to the Argentine leader than the hoped-for free trade deal is a $20 billion bailout from the International Monetary Fund. The badly needed cash would help Milei keep his ambitious economic reforms on track as pressure mounts on the
country's sparse foreign currency reserves.
Milei has already used executive powers to remove the need for Congress to approve a new IMF program. But the loan hasn't cleared the finish line, with negotiators still haggling over how much cash Argentina, a serial defaulter that owes some $44 billion to the fund, will be allowed to access up-front.
It was against this backdrop on Wednesday that Milei, accompanied by his economy minister, hopped on the plane to the U.S., the fund's biggest stakeholder. He told journalists he expected "an informal meeting" with Trump, who was instrumental in 2018, during his first term, in
helping Argentina secure a major $56 billion loan from the fund.
Milei mum on Trump meeting
But on Friday, Milei's much-anticipated photo-op with Trump was nowhere to be found in his publicist's slick montage of the Argentine president snapping selfies with fans on Mar-aLago's red carpet.
The president's office said nothing about his meeting — or, nonmeeting — with Trump, and did not respond to multiple requests for comment.
Trump arrived at Mar-aLago later than expected Thursday evening after attending an event with professional golfers at one of his golf courses near
Major Argentine
papers cited anonymous officials saying the leaders never met, drawing instant scorn from his political enemies.
"When I woke up, I thought I'd find
ARGENTINA’s President Javier Milei arrives to speak before President-elect Donald Trump during an America First Policy Institute gala at his Mar-a-Lago estate, Nov. 14, 2024, in Palm Beach, Fla.
Photo:Alex Brandon/AP
Miami. The White House didn't say whether he and Milei had met.
news-
on TV the photo-op with your 'friend' Trump that you went looking for," left-wing former President Cristina Fernández de Kirchner wrote on social media. "What a way to mess around and spend money on nothing."
502-2394
Ukraine will send a team to the US next week for talks on a new draft mineral deal
By HANNA ARHIROVA Associated Press
UKRAINE will send a team to Washington next week to begin negotiations on a new draft of a deal that would give the U.S. access to Ukraine's valuable mineral resources, Economy Minister Yuliia Svyrydenko told The Associated Press.
"The new draft agreement from the U.S. shows that the intention to create a fund or jointly invest remains," Svyrydenko said Saturday, during a trip to northern Ukraine.
The delegation from Kyiv will include representatives from the Ministries of Economy, Foreign Affairs, Justice and Finance.
The long-running negotiations over a mineral deal have already strained relations between Kyiv and Washington. The two sides had been preparing in February to sign a framework agreement but the plan was derailed following a contentious meeting in the Oval Office between U.S. President Donald Trump, Vice President JD Vance and Ukrainian President Volodymyr Zelenskyy.
After some Ukrainian lawmakers leaked the new draft, critics slammed it as little more than an attempt to strip Kyiv of control over its own natural resources and infrastructure. According to the leaked document, the new draft includes not only rare-earth minerals but gas and oil.
Ukraine holds significant deposits of more than 20 minerals deemed strategically critical by the U.S., including titanium, which is used to make aircraft wings, lithium, key to several battery technologies, and uranium, used in nuclear power.
New draft only gives the U.S. side of the deal
Despite the disruption following the Oval Office meeting, Ukrainian officials
showed interest in signing the framework deal at any time, seeing it as an important step to win the favor of President Donald Trump and shore up U.S. backing in the war against Russia's full-scale invasion.
After weeks of silence on the status of the deal, the U.S. sent a new draft to Kyiv, which goes further than the original framework.
It's unclear why the U.S. chose to bypass the signing of the framework deal and instead moved forward with a more comprehensive draft agreement, which would likely require ratification by Ukraine's parliament.
However, Ukrainian officials have been cautious about commenting on the contents of the draft, stressing that it currently reflects only one side's position.
"What we have now is a document that reflects the position of the U.S. Treasury legal team," said Svyrydenko. "This is not a final version, it's not a joint position."
She said that Ukraine's task now is to assemble a technical team for negotiations, define its red lines
PUBLIC NOTICE
N N O C N N B D D PO
The Public is hereby advised that I, CAIDEN KAISEN CAMPBELL AKA CAIDEN, of #22 Colony Village. intend to change my name to CAIDEN KAISEN ROLLE If there are any objections to this change of name by Deed Poll, you may write such objections to the Chief Passport Offcer, P.O.Box N-742, Nassau, he Baha as no later than thirty (30) days after the date of publication of this notice.
and core principles, and send a delegation to Washington for technical talks as early as next week.
"It's clear that the full parameters of this agreement can't be discussed online," Svyrydenko said. "We need to sit down with the teams and continue the conversation in person."
Legal, investment, and financial advisers are being selected, she said.
"This marks a new stage in relations with the United States — one that requires expertise across multiple areas," she said. "Ultimately, everything will be decided through the course of negotiations."
Svyrydenko declined to elaborate publicly on Ukraine's official evaluation of the new draft, but noted that there is now a more detailed document outlining the fund's creation. And while the initial draft focused primarily on the intention to establish the fund, Svyrydenko said the latest version lays out how American advisers envision its structure and operation.
It remains unclear what role Ukraine would play in managing the fund under
the newly proposed U.S. draft. However, analysts who reviewed the leaked document said Kyiv's involvement would likely be minimal — a point Ukraine hopes to challenge in upcoming negotiations, using the previously agreed framework as its reference.
A previous version of the framework agreement, obtained by The Associated Press, outlined plans for a jointly owned and managed investment fund between the United States and Ukraine, intended to support the reconstruction of Ukraine's war-torn economy.
Under the terms, Ukraine would allocate 50% of future revenues generated from key national assets — including minerals, hydrocarbons, oil, natural gas, and other extractable resources — to the fund.
The framework agreement, which was never signed, stated that revenues from its natural resources would go into the fund and be used for the reconstruction of the country, not that ownership or control of those resources would be transferred to the United States.
PUBLIC NOTICE
INTENT TO CHANGE NAME BY DEED POLL
The Public is hereby advised that I, ROSE NAIDINE JEAN of #160 Bacardi Road, New Providence, The Bamas Parents of SINAYA JACQUES LOIS A minor intend to change our child’s name to SINAYA PROPHETE. If there are any objections to this change of name by Deed Poll, you may write such objections to the Deputy Chief Passport Offcer, P.O. Box N-742, Nassau, Bahamas no later than thirty (30) days after the date of publication of this notice.
LAYOFFS THREATEN US FIREFIGHTER CANCER REGISTRY, MINE RESEARCH AND
By MIKE STOBBE AP Medical Writer
GOVERNMENT staffing cuts have gutted a small U.S. health agency that aims to protect workers — drawing rebukes from firefighters, coal miners, medical equipment manufacturers and a range of others.
The National Institute for Occupational Safety and Health, a Cincinnati-based agency that is part of the Centers for Disease Control and Prevention, is losing about 850 of its approximately 1,000 employees, according to estimates from a union and affected employees. Among those ousted were its director, Dr. John Howard, who had been in the job through three previous presidential administrations.
The layoffs are stalling — and perhaps ending — many programs, including a firefighter cancer registry and a lab that is key to certifying respirators for many industries.
The cuts are "a very pointed attack on workers in this country," said Micah Niemeier-Walsh, vice president of the union local representing NIOSH employees in Cincinnati.
Unions that represent miners, nurses, flight attendants and other professions have criticized the cuts, saying it will slow the identification and prevention of workplace dangers. Rallies in Cincinnati and other cities drew not only fired CDC employees but also members of unions representing teachers, postal workers and bricklayers, Niemeier-Walsh said.
NIOSH doctors review and certify that 9/11 first responders who developed chronic illnesses could qualify for care under the federal government's World Trade Center Health Program, noted Andrew Ansbro, president of a union that represents New York City firefighters.
"Dismantling NIOSH dishonors the memory of our fallen brothers and sisters and abandons those still battling 9/11-related illnesses," Ansbro said in a statement. Agency investigates workplace hazards
NIOSH was created under a 1970 law signed by President Richard Nixon. It started operations the following year and grew to have offices and labs in eight cities, including Cincinnati; Pittsburgh; Spokane, Washington; and Morgantown, West Virginia. In the more than 50 years since, it has done pioneering research on indoor air quality in office buildings, workplace violence and occupational exposures to bloodborne infections.
NIOSH investigators identified a new lung disease in workers at factories that made microwave popcorn, and helped assess what went wrong during the Deepwater Horizon oil rig disaster. It was recently involved in the CDC's response to measles, advising on measures to stop spread within hospitals. Some of its best-known work is related to mining. It trains and certifies doctors in how to test for black lung disease, and the agency conducts its own mobile screenings of miners. For years, NIOSH owned an experimental mine in Pennsylvania and two years ago announced it was developing a replacement research facility near Mace, West Virginia, that would feature tunnels and other mine structures.
Its research and recommendations have served as the foundation for Department of Labor rules for worker protection, including one issued last year for coal miners that cuts by half the permissible exposures to poisonous silica dust.
Studies have concluded NIOSH research helps the nation save millions of dollars each year in avoided workers' compensation and other costs.
"Any stoppage to this type of research and recommendations can impact all segments of the workforce," said Tessa Bonney, who teaches about occupational health at the University of Illinois at Chicago. NIOSH was swept up in the massive upheaval at the U.S. Department of Health and Human Services that includes about 10,000 layoffs, an anticipated reorganization and proposed budget cuts.
NOTICE
NOTICE is hereby given that COURTNEY KAYON HENLON of #93 Davis Street, Oakes Field, New Providence, Bahamas is applying to the Minister responsible for Nationality and Citizenship, for registration/naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twentyeight days from the 31st day of March, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.
NOTICE
NOTICE is hereby given that HEOLD PIERRE of Kemp Road, Nassau, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/ naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 7th day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
NOTICE
NOTICE is hereby given that CUIOMOC BERGER of Bernard Road, Nassau, The Bahamas, applying to the Minister responsible for Nationality and Citizenship, for Registration Naturalization as a citizen of The Bahamas, and that any person who knows any reason why registration/naturalization should not be granted, should send a written and signed statement of the facts within twenty-eight days from the 7th day of April, 2025 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, New Providence, The Bahamas.
A VIEW of an ilmenite open pit mine in a canyon in the central region of Kirovohrad, Ukraine, Wednesday, Feb. 12, 2025. (AP Photo/Efrem Lukatsky
TARIFFS WILL MAKE SNEAKERS, JEANS AND ALMOST EVERYTHING AMERICANS WEAR COST MORE, TRADE GROUPS WARN
By ANNE D'INNOCENZIO AP Retail Writer
SENDING children back to school in new sneakers, jeans and T-shirts is likely to cost U.S. families significantly more this fall if the bespoke tariffs President Donald Trump put on leading exporters take effect as planned, American industry groups warn. About 97% of the clothes and shoes purchased in the U.S. are imported, predominantly from Asia, the American Apparel & Footwear Association said, citing its most recent data. Walmart, Gap Inc., Lululemon and Nike are a few of the companies that have a majority of their clothing made in Asian countries.
Those same garmentmaking hubs took a big hit under the president's plan to punish individual countries for trade imbalances. For all Chinese goods, that meant tariffs of at least 54%. He set the import tax rates for Vietnam and neighboring Cambodia at 46% and 49%, and products from Bangladesh and Indonesia at 37% and 32%.
Working with foreign factories has kept labor costs down for U.S. companies in the fashion trade, but neither they nor their overseas suppliers are likely to absorb new costs that high. India, Indonesia, Pakistan and Sri Lanka also got slapped with high tariffs so aren't immediate sourcing alternatives.
"If these tariffs are allowed to persist, ultimately it's going to make its way to the consumer," said Steve Lamar, president and CEO of the American Apparel & Footwear Association.
Another trade group, Footwear Distributors and Retailers of America, provided estimates of the price increases that could be in store for shoes, noting 99% of the pairs sold in the U.S. are imports. Work boots made in China that now retail for $77 would go up to $115, while customers would pay $220 for running shoes made in Vietnam currently priced at $155, the group said.
FDRA President Matt Priest predicted
lower-income families and the places they shop would feel the impact most. He said a pair of Chinese-made children's shoes that cost $26 today will likely carry a $41 price tag by the backto-school shopping season, according to his group's calculations.
Preparing for a moving target The tariffs on the top producers of not only finished fashion but many of the materials used to make footwear and apparel shocked U.S. retailers and brands. Before Trump's first term, U.S. companies had started to diversify away from China in response to trade tensions as well as human rights and environmental concerns.
They accelerated the pace when he ordered tariffs on Chinese goods in 2018, shifting more production to other countries in Asia. Lululemon said in its latest annual filing that 40% of its sportswear last year was manufactured in Vietnam, 17% in Cambodia, 11% in Sri Lanka, 11% in Indonesia and 7% in Bangladesh.
Nike, Levi-Strauss, Ralph Lauren, Gap. Inc., Abercrombie & Fitch and VF Corporation, which owns Vans, The North Face and Timberland, also reported a greatly reduced reliance on garment-makers and suppliers in China.
Shoe brand Steve Madden said in November it would reduce imports from China by as much as 45% this year due to Trump's campaign pledge to impose a 60% tariff on all Chinese products. The brand said it already had spent several years developing a factory network in Cambodia, Vietnam, Mexico and Brazil.
Industry experts say reviving the American garment industry would be hugely expensive and take years if it were feasible. The number of people working in apparel manufacturing in January 2015 stood at 139,000 and had dwindled to 85,000 by January of this year, according to the Bureau of Labor Statistics. Sri Lanka employs four times as many despite
having a population less than one-seventh the size of the U.S.
Along with lacking a skilled and willing workforce, the U.S. does not have domestic sources for the more than 70 materials that go into making a typical shoe, the Footwear Distributors & Retailers of America said in written comments to Trump's trade representative.
Shoe companies would need to find or set up factories to make cotton laces, eyelets, textile uppers and other components to make finished footwear in the U.S. on a large scale, the group wrote.
"These materials simply do not exist here, and many of these materials have never existed in the U.S," the organization said.
Price increases may come as a shock
The expected barrage of apparel price increases would follow three decades of stability. Clothes cost U.S. consumers essentially the same in 2024 as they did in 1994, according to U.S. Bureau of Labor Statistics data.
Economists and industry analysts have attributed the trend to free trade agreements, offshoring to foreign countries where workers are paid much less and heated competition for shoppers among discount retailers and fast-fashion brands like H&M, Zara and Forever 21.
But customers unaccustomed to inflation in the apparel sector and coming off several years of steep rise in the costs of groceries and housing may be extra sensitive to any big jumps in clothing prices. Priest, of the Footwear Distributors and Retailers of America, said he has observed shoppers pulling back on buying shoes since Trump's return to the White House.
"They're nervous," he said. "They've obviously been playing the long game as it relates to inflation for a number of years now. And they just don't have the endurance to absorb higher prices, particularly as they're inflicted by the U.S. government."
Winners and losers in a garment trade war
According to a report by British bank Barclays published Friday, the winners in the tariff wars are retailers that have at least one of these attributes: big negotiating power with their suppliers, a strong brand name and limited sourcing in Asia.
In clothing and footwear, that includes off-price retailers Burlington, Ross Stores Inc. and TJX Companies, which operates T.J. Maxx and Marshalls, as well as Ralph Lauren and Dick's Sporting Goods, according to the report.
The companies in for a tougher time are those with limited negotiating power, limited pricing power and high product exposure in Asia, a list including Gap Inc., Urban Outfitters and American Eagle Outfitters, according to the report.
Secondhand clothing resale site ThredUp cheered a related action Trump took with his latest round of tariffs: eliminating a widely used tax exemption that has allowed millions of low-cost goods — most of them originating in China — to enter the U.S. every day duty-free.
"This policy change will increase the cost of cheaply
produced, disposable clothing imported from China, directly impacting the business model that fuels overproduction and environmental degradation," ThredUp said.
Several industry analysts and economists said they think tariffs will end up being a consumer sales tax that widens the yawning gap between America's wealthiest residents and those in the middle and
lower end of the income spectrum.
"So where will the U.S. be buying its apparel now that the tariff rates on Bangladesh, Vietnam and China are astronomical?"
Mary E. Lovely, a senior fellow at the Peterson Institute for International Economics, said of the schedule set to take effect Wednesday. "Will the new 'Golden Age' involve knitting our own knickers as well as snapping together our cellphones?"
Position Available:
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CAMBODIAN garment workers look at clothes displayed for sale during a lunch break on a sidewalk at Ang Tako village, outside Phnom Penh Cambodia, Thursday, April 3, 2025. (AP Photo/Heng Sinith)
China hit brakes on TikTok deal after Trump announced wide-ranging tariffs,
By FATIMA HUSSEIN, AAMER MADHANI and SARAH PARVINI Associated Press
AP source says
trade and tariffs, said the person, who spoke on the condition of anonymity to discuss the sensitive details of the negotiations.
PRESIDENT Donald Trump on Friday said he is signing an executive order to keep TikTok running in the U.S. for another 75 days to give his administration more time to broker a deal to bring the social media platform under American ownership.
The order was announced as White House officials believed they were nearing a deal for the app's operations to be spun off into a new company based in the U.S. and owned and operated by a majority of American investors, with China's ByteDance maintaining a minority position, according to a person familiar with the matter.
But Beijing hit the brakes on a deal Thursday after Trump announced wideranging tariffs around the globe, including against China. ByteDance representatives called the White House to indicate that China would no longer approve the deal until there could be negotiations about
Congress had mandated that the platform be divested from China by Jan. 19 or barred in the U.S. on national security grounds, but Trump moved unilaterally to extend the deadline to this weekend, as he sought to negotiate an agreement to keep it running. Trump has recently entertained an array of offers from U.S. businesses seeking to buy a share of the popular social media site.
But on Friday it became uncertain whether a tentative deal could be announced after the Chinese government's reversal of its position complicated TikTok's ability to send clear signals about the nature of the agreement that had been reached for fear of upsetting its negotiations with Chinese regulators.
The near-deal was constructed over the course of months, with Vice President JD Vance's team
negotiating directly with several potential investors and officials from ByteDance. The plan called for a 120-day closing period to finalize the paperwork and financing. The deal also had the approval of existing investors, new investors, ByteDance and the administration.
The Trump administration had confidence that China would approve the proposed deal until the tariffs went into effect. Trump indicated Friday that he can still get a deal done during the 75-day extension.
"My Administration has been working very hard on a Deal to SAVE TIKTOK, and we have made tremendous progress," Trump posted on his social media platform. "The Deal requires more work to ensure all necessary approvals are signed, which is why I am signing an Executive Order to keep TikTok up and running for an additional 75 days."
Trump added, "We look forward to working with TikTok and China to close the Deal."
A spokesperson for ByteDance confirmed in a statement that the company has been discussing a "potential solution" with the U.S. government but noted that an "agreement has not been executed."
"There are key matters to be resolved," the spokesperson said. "Any agreement will be subject to approval under Chinese law."
TikTok, which has headquarters in Singapore and Los Angeles, has said it prioritizes user safety, and China's Foreign Ministry has said China's government has never and will not ask companies to "collect or provide data, information or intelligence" held in foreign countries.
Trump's extension marks the second time that he has temporarily blocked
India and Sri Lanka sign defense and energy deals as Modi's visit strengthens ties
By BHARATHA MALLAWARACHI Associated Press
INDIAN Prime Min-
ister Narendra Modi on Saturday inaugurated construction work on a solar plant in neighboring Sri Lanka and witnessed the signing of energy and defense agreements seen as efforts to consolidate New Delhi's influence in the debt-stricken island nation. India has been concerned about China's increasing presence in Sri Lanka, which is located on one of the world's busiest shipping routes in what India considers part of its strategic backyard.
Beijing has provided Sri Lanka with billions of dollars in loans for development projects. But Sri Lanka's economic collapse in 2022 changed the country's priorities and provided an opportunity for India, as New Delhi stepped in with massive financial and material assistance. At the same
the 2024 law that banned the popular social video app after the deadline passed for ByteDance to divest. That law was passed with bipartisan support in Congress and upheld unanimously by the Supreme Court, which said the ban was necessary for national security.
Rep. Raja Krishnamoorthi, the top Democrat on the House Select Committee on China and a co-author of the TikTok bill, said Friday there should be no further delay. "Bidders are lined up, and the clock is ticking. No more excuses. It's time to do the work. It's time to comply with the law and save TikTok now," he said.
Although the decision to keep TikTok alive through an executive order has received some scrutiny, it has not faced a legal
challenge in court. That type of pushback is unlikely, legal experts say, due in part to how difficult it is for someone to establish the legal right, or standing, to sue. A plaintiff would have to be able to show harm from the delay in enforcing the law.
Sarah Kreps, director of Cornell University's Tech Policy Institute, said she doesn't believe anyone has that standing.
"It would be different if this platform weren't already in place," she said. "But if you're trying to just continue with the status quo, it's different."
Still, if the extension keeps control of TikTok's algorithm under ByteDance's authority, the national security concerns that led to the ban persist.
time, China's support for restructuring its infrastructure loans is vital for Sri Lanka.
Modi on Saturday held talks with Sri Lankan President Anura Kumara Dissanayake and the two virtually inaugurated construction work on an Indian-funded 120-megawatt solar power plant, which is being built as a joint venture between the two countries.
Sri Lanka faced a severe power shortage in 2022 after being unable to pay for oil and coal to power its electricity plants. It has also set ambitious goals of reducing its dependence on fossil fuel.
Modi welcomed the agreements on defense cooperation and said both sides agreed to work together on security cooperation in the Indian Ocean through a regional grouping called the Colombo Security Conclave, which also includes Bangladesh, Maldives and Mauritius.
"I am grateful to President Dissanayake for his sensitivity towards India's
interests. We believe that we have shared security interests. The security of both countries is interconnected and co-dependent," Modi said. He said India has a special place for Sri Lanka in its "Neighbourhood First Policy" and has fulfilled its duties as a truly friendly neighbour when Sri Lanka was in difficulty.
Modi was awarded "Sri Lanka Mitra Vibhushana," the highest award presented to a foreign leader.
Dissanayake said that he reiterated during talks with Modi that Sri Lanka's territory will not be used for any acts that could harm India's security and as well as the stability of the region.
China plans to build a $3.7 billion oil refinery near Hambantota port, which was taken over by Beijing after Sri Lanka failed to pay back the loan to develop the port. It gives China a key foothold in the country directly opposite India's coastline.
Both India and China have separately agreed on terms with Sri Lanka for restructuring its debt, which would enable the country to come out from bankruptcy and rebuild the tattered economy.
While the agreements were being signed, hundreds of protesters gathered opposite the capital Colombo's main rail station, claiming the agreements were a betrayal of the country to Indian domination.
Frontline Socialist Party, a radical splinter party of Dissanayake's People's Liberation Front, accused the president of backing down from his original stand on India. The leader of the party, Kumar Gunaratnam, said India had never been a genuine friend of Sri Lanka. Dissanayake's party took up arms against a 1987 peace agreement between India and Sri Lanka but has since moderated its policy on its giant neighbor.
India, which has its own sizable Tamil population, intervened in 1987 and signed an agreement with Sri Lanka to resolve Sri Lanka's civil conflict. Some Tamil armed groups accepted the deal, the Tamil Tigers, the largest group, rejected it and continued to fight for separation. Government troops crushed the Tamil Tigers in 2009, and since then the government has faced international pressure to resolve the power-sharing issue through talks.
THE TIKTOK logo is seen on a mobile phone in front of a computer screen which displays the TikTok home screen, Oct. 14, 2022, in Boston.
Photo:Michael Dwyer/AP
TEXAS COUNTY THAT SWUNG TO TRUMP GRAPPLES WITH IMMIGRATION CRACKDOWN AFTER BAKERY
By VALERIE GONZALEZ Associated Press
LEONARDO Baez and Nora Avila-Guel's bakery in the Texas community of Los Fresnos is a daily stop for many residents to share gossip over coffee and pick up cakes and pastries for birthdays, office parties or themselves.
When Homeland Security Investigations agents showed up at Abby's Bakery in February and arrested the owners and eight employees, residents of Los Fresnos were shocked.
But the bakery's owners, Baez and Avila-Guel, a Mexican couple who are legal U.S. permanent residents, could lose everything after being accused of concealing and harboring immigrants who were in the U.S. illegally. It's a rare case in which business owners face criminal charges rather than just a fine.
"I was surprised because I know that they're not taking advantage of the people," Esteban Rodriguez, 43, said after pulling into the bakery's parking lot to discover it was closed. "It was more like helping out people. They didn't have nowhere to go, instead of them being on the streets."
The reaction in the town of 8,500 residents may show
IS TARGETED
the limits of support for President Donald Trump's immigration crackdown in a majority Hispanic region dotted with fields of cotton, sugarcane and red grapefruit where Republicans made gains in last year's elections. Cameron County voted for a GOP president for the first time since 2004. For neighboring Starr County, it was the first time since 1896.
Los Fresnos, which is 90% Latino and counts the school district as its largest employer, is about a half-hour drive from the U.S.-Mexico border.
Hundreds of school bus drivers, painters, retirees and parishioners from the nearby Catholic church come into Abby's Bakery each day. Customers with silver trays and tongs select pastries from glass-door cabinets.
The owners had green cards but employees did not
Six of Abby's eight employees were in the U.S. on visitor visas but none had work permits when Homeland Security Investigations agents came to the business Feb. 12. The owners acknowledged they knew that, according to a federal complaint.
Employees lived in a room with six beds and
No state has axed its income tax on wages in 45 years. Now 2 Southern states are on a path to do so
By DAVID A. LIEB Associated Press
ABOUT 45 years have passed since a U.S. state last eliminated its income tax on wages and salaries.
But with recent actions in Mississippi and Kentucky, two states now are on a path to do so, if their economies keep growing.
The push to zero out the income tax is perhaps the most aggressive example of a tax-cutting trend that swept across states as they rebounded from the COVID-19 pandemic with surging revenues and historic surpluses.
But it comes during a time of greater uncertainty for states, as they wait to see whether President Donald Trump's cost cutting and tariffs lead to a reduction in federal funding for states and a downturn in the overall economy.
Some fiscal analysts also warn the repeal of income taxes could leave states reliant on other levies, such as sales taxes, that disproportionately affect the poor.
Which governments charge income tax?
The 16th Amendment to the U.S. Constitution grants Congress the power to levy income taxes. It was ratified by states in 1913. Since then, most states have adopted their own income taxes.
Eight states currently charge no personal income tax: Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas and Wyoming. A ninth state, Washington, charges no personal income tax on wages and salaries but does tax certain capital gains income over $270,000.
When Alaska repealed its personal income tax in 1980, it did so because state coffers were overflowing with billions of dollars in oil money. Though income tax eliminations have been proposed elsewhere, they have not been successful.
"It's a lot easier to go without an individual income tax if you've never levied one," said Katherine Loughead, a senior analyst and research manager at the nonprofit Tax Foundation. "But once you become dependent on that revenue, it is a lot more difficult to
shared two bathrooms in the same building as the bakery, according to an agent's affidavit.
Baez, 55, and Avila-Guel, 46, have pleaded not guilty. They referred questions to their attorneys, who noted the workers were not held against their will and there was no attempt to hide their presence, as a smuggler would.
As green card holders, the couple could be deported if they are convicted. They have five children who are U.S. citizens.
The bakery closed for several days after their arrest, drawing about 20 people to protest on an uncharacteristically chilly evening.
Monsignor Pedro Briseño of St. Cecilia Church often visited before early morning Mass for the campechana, a flaky, crunchy pastry dough layered with caramelized sugar. His routine was interrupted when plainclothes immigration agents arrived in unmarked vehicles.
"A woman came here crying. She said, 'Father, Father, they're taking my brother,'" Briseño said. The priest walked over and saw agents use zip ties to bind employees' hands.
Support for deportations has limits
There is overwhelming bipartisan support to deport people who are in the U.S. illegally and have been convicted of a violent crime, with 82% in favor, according to an Associated Press-NORC Center for Public Affairs Research poll in January. Support softens considerably for deportations of all people in the country illegally, with 43% in favor and 37% opposed.
Trump and top aides repeatedly emphasize they are deporting criminals. But, as Homan often says, others in the country illegally who are there when officers arrest criminals also will be deported, a departure from the Biden administration's practices.
So far, Trump has avoided the large-scale factory and office raids that characterized his first term and that of Republican President George W. Bush. Scattered
reports of smaller operations included the recent arrests of 37 people at a roofing business in northern Washington state.
ICE says it made 32,809 arrests in Trump's first 50 days in office, or a daily average of 656, which compared with a daily average of 311 during a 12-month period ending Sept. 30. ICE said nearly half (14,111) were convicted criminals and nearly one-third (9,980) had pending criminal charges but did not specify the charges.
People with deep ties in their communities and no criminal records tend to generate more sympathy.
The bakery is a Los Fresnos staple
Abby's reopened after the owners were released on bond.
Chela and Alicia Vega, two sisters in their 60s who retired from the school district and have known the
bakery owners for years, were among the customers filling trays with pastries. Chela Vega said the couple once took a week off from work to drive them to San Luis Potosi in Mexico after their sister died. When a hurricane struck, Leonardo Baez cut down their damaged trees without charge.
For Terri Sponsler, 61, shopping at Abby's is now a political statement. "With everything going on right now in our country, we need to find ways to protest," she said.
Mark W. Milum, the Los Fresnos city manager, said Abby's is an important business that contributes property and sales tax revenue to the $13 million annual municipal budget. Some customers just love the products.
"Other bakeries, they pop up, right?" said Ruth Zamora, 65. "But when you go there, it's not the same."
phase out or eliminate that tax."
What is Mississippi doing?
Republican Mississippi Gov. Tate Reeves recently signed a law gradually reducing the state's income tax rate from 4% to 3% by 2030 and setting state revenue growth benchmarks that could trigger additional incremental cuts until the tax is eliminated. The law also reduces the sales tax on groceries and raises the gasoline tax.
If cash reserves are fully funded and revenue triggers are met each year, Mississippi's income tax could be gone by 2040.
Supporters of an income tax repeal hope it will attract both businesses and residents, elevating the state's economy to the likes of Florida, Tennessee and Texas. Their theory is that when people pay less in income taxes, they will have more money to spend, thus boosting sales tax collections.
The tax repeal "puts us in a rare class of elite, competitive states," Reeves said in a statement. He added, "Mississippi has the potential to be a magnet for opportunity, for investment, for talent –- and for families looking to build a better life."
Mississippi is among the most impoverished states and relies heavily on federal funding. Democratic lawmakers warned the state could face a financial crises if cuts in federal funding come at the same time as state income tax reductions. The income tax provides "a huge percentage of what the state brings in to fund things like schools and health care and services that everybody relies on," said Neva Butkus, senior analyst at the nonprofit Institute on Taxation and Economic Policy.
What has Kentucky done?
A 2022 Kentucky law reduced the state's income tax rate and set a series of revenue-based triggers that could gradually lower the tax to zero. But unlike in Mississippi, the triggers aren't automatic. Rather, the Kentucky General Assembly must approve each additional decrease in the tax rate.
That has led to a series of tax-cutting measures, including two new laws this year. One implements the next tax rate reduction from 4% to 3.5% starting in 2026. The second makes it easier to continue cutting the tax rate in the future by allowing smaller incremental reductions if revenue growth isn't sufficient to trigger a 0.5 percentage point reduction.
Democratic Gov. Andy Beshear signed the legislation for next year's tax cut but let the other measure passed by the Republicanled legislature become law without his signature. Beshear called it a "baitand-switch" bill, contending lawmakers had assured the guardrails for income tax reductions would remain in place while pushing for the 2026 tax cut, then later in the session altered the triggers for future years.
What actions have other states taken?
New Hampshire and Tennessee already did not tax income from wages and salaries, but both states had taxed certain types of income.
In 2021, Tennessee ended an income tax on interest from bonds and stock
dividends that had been levied since 1929.
New Hampshire halted its tax on interest and dividends at the start of this year.
Some other states also are pushing to repeal income taxes. The Oklahoma
House passed legislation in March that would gradually cut the personal income tax rate to zero if revenue growth benchmarks are met. That bill now is in the Senate.
New Missouri Gov. Mike Kehoe, a Republican, also
wants to phase out the income tax. The House and Senate have advanced legislation that would take an incremental step by exempting capital gains income from taxes.
PEOPLE work as customers visit Abby’s Bakery in Los Fresnos, Texas, after the owners reopened their doors, March 4, 2025, following their arrest for allegedly harboring unauthorized workers in their building.
Photo:Valerie Gonzalez/AP
Trump advisers say 50-plus countries have reached out for tariff talks with White House
By ADRIANA GOMEZ LICON Associated Press
TOP administration officials said Sunday that more than 50 countries targeted by President Donald Trump's new tariffs have reached out to begin negotiations over the sweeping import taxes that have sent financial markets reeling, raised fears of a recession and upended the global trading system.
The higher rates are set to be collected beginning Wednesday, ushering in a new era of economic uncertainty with no clear end in sight. Treasury Secretary Scott Bessent said unfair trade practices are not "the kind of thing you can negotiate away in days or weeks." The United States, he said, must see "what the countries offer and whether it's believable."
Trump, who spent the weekend in Florida playing golf, posted online that "WE WILL WIN. HANG TOUGH, it won't be easy."
His Cabinet members and economic advisers were out in force Sunday defending the tariffs and downplaying the consequences for the global economy.
"There doesn't have to be a recession. Who knows how the market is going to react in a day, in a week?"
Bessent said. "What we are looking at is building the long-term economic fundamentals for prosperity."
Trump's tariff blitz, announced April 2, fulfilled a key campaign promise as he acted without Congress
to redraw the rules of global trade. It was a move decades in the making for Trump, who has long denounced foreign trade deals as unfair to the U.S. He is gambling that voters will be willing to endure higher prices for everyday items to enact his economic vision.
Countries are scrambling to figure out how to respond to the tariffs, with China and others retaliating quickly.
Top White House economic adviser Kevin Hassett acknowledged that other countries are "angry and retaliating," and, he said, "by the way, coming to the table." He cited the Office of the U.S. Trade Representative as reporting that more than 50 nations had reached out to the White House to begin talks. Adding to the turmoil, the new tariffs are hitting
American allies and adversaries alike, including Israel, which is facing a 17% tariff. Israeli Prime Minister Benjamin Netanyahu is set to visit the White House Monday, with his office saying the tariffs would be a point of discussion with Trump along with the war in Gaza and other issues.
Another American ally, Vietnam, a major manufacturing center for clothing, has also been in touch with the administration about the tariffs. Trump said Vietnam's leader said in a telephone call that his country "wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S." And a key European partner, Italian Premier Giorgia Meloni, said she disagreed with Trump's move but was "ready to deploy all the tools — negotiating
and economic — necessary to support our businesses and our sectors that may be penalized."
Commerce Secretary Howard Lutnick made clear there was no postponing tariffs that are days away. "The tariffs are coming. Of course they are," he said, adding that Trump needed to reset global trade. But he committed only to having them "definitely" remain "for days and weeks."
In Congress, where Trump's Republican Party has long championed free trade, the tariff regiment has been met with applause but also significant unease.
Several Republican senators have already signed onto a new bipartisan bill that would require presidents to justify new tariffs to Congress. Lawmakers would then have to approve the tariffs within 60 days, or they would expire.
Jaguar and Land Rover maker pauses shipments to US as it develops post-tariff plans
By DANICA KIRKA Associated Press
THE maker of Jaguar and Land Rover cars is pausing shipments to the U.S. as Britain's struggling auto industry begins to respond to the 25% tax on vehicle imports imposed by President Donald Trump. Jaguar Land Rover Automotive, one of Britain's biggest carmakers,
said Saturday that the pause would take place this month.
"The USA is an important market for JLR's luxury brands," the company said in a statement.
"As we work to address the new trading terms with out business partners, we are taking some short-term actions including a shipment pause in April, as we
COMMERCE Secretary Howard
holds a chart as President Donald
speaks during an event to announce new tariffs in the Rose
Washington.
Nebraska GOP Rep. Don Bacon said Sunday that he would introduce a House version of the bill, saying that Congress needs to restores its powers over tariffs.
"We gave some of that power to the executive branch. I think, in hindsight, that was a mistake," said Bacon, adding that getting a measure passed would be challenging unless the financial markets continue to react negatively and other indicators such as inflation and unemployment shift.
Wyoming's John Barrasso, the No. 2 member of the Senate's GOP leadership, said Trump is "doing what he has every right to do." But, he acknowledged, "there is concern, and there's concern across the country. People are watching the markets."
"There'll be a discussion in the Senate," Barrasso said of the tariffs. "We'll see which way the discussion goes."
Trump's government cost-cutting guru, billionaire businessman Elon Musk, had been relatively silent on Trump's tariffs, but said at a weekend event in Italy that he would like to see the U.S. and Europe move to "a zero-tariff situation." The comment from the Tesla owner who leads Trump's Department of Government Efficiency drew a rebuke from White
develop our mid- to longerterm plans."
Analysts said they expect other British carmakers to follow suit as the increased tariffs heap more pressure on an industry that is already struggling with declining demand at home and the need to retool their plants for the transition to electric vehicles.
"I expect similar stoppages from other producers as firms take stock of what is unfolding," said David Bailey, an automotive industry expert and professor of business economics at the University of Birmingham.
The number of cars made in the U.K. dropped 13.9% to 779,584 vehicles last year, according to the SMMT. More than 77% of those vehicles were destined for the export market. U.K. factories export cars such as Nissan's Qashqai and Juke, BMW Mini, and Toyota Corolla, as well as Land Rover and Jaguar models.
"The industry is already facing multiple headwinds and this announcement comes at the worst possible time," Mike Hawes, chief executive of the U.K.'s Society of Motor Manufacturers and Traders, said last week. "SMMT is in constant contact with government and will be looking for trade discussions to
Photo:Mark Schiefelbein/AP
House trade adviser Peter Navarro.
"Elon, when he is on his DOGE lane, is great. But we understand what's going on here. We just have to understand. Elon sells cars," Navarro said. He added: "He's simply protecting his own interest as any business person would do."
Lawrence Summers, an economist who was treasury secretary under Democratic President Bill Clinton, said Trump and his economic team are sending contradictory messages if they say they are interested in reviving manufacturing while still being open to negotiating with trade partners. If other countries eliminate their tariffs, and the U.S, does, too, he said, "it's just making a deal, then we don't raise any revenue nor do we get any businesses to relocate to the United States. If it's a permanent revenue source and trying to get businesses to relocate to the United States, then we're going to have these tariffs permanently. So the president can't have it both ways."
Bessent was on NBC's "Meet the Press," Hassett and Summers appeared on ABC's "This Week," Lutnick and Barrasso were on CBS' "Face the Nation" and Navarro was interviewed on Fox News Channel's "Sunday Morning Futures."
accelerate as we need to secure a way forward that supports jobs and economic growth on both sides of the Atlantic."
U.K. carmakers have already taken steps to lessen the immediate impact of the tariffs by building stockpiles in the U.S. before the increase took effect. SMMT figures show that exports to the U.S. jumped 38.5% from a year earlier in December, 12.4% in January and 34.6% in February.
"This was manufacturers like JLR trying to get ahead of the game in terms of getting inventory to the U.S. before the tariffs were implemented,'' Bailey said.
British carmakers shipped 8.3 billion pounds ($10.7 billion) worth of vehicles to the U.S. in the 12 months through September, making cars the single biggest goods export to the U.S., according to government statistics.
But cars make up a relatively small part of overall trade between Britain and the U.S., which is heavily weighted toward services.
Britain exported 179.4 billion pounds ($231.2 billion) of goods and services to the U.S. in the year through September, with services making up 68.2% of that figure.
from people who are making news in their neighbourhoods. Perhaps you are raising funds for a good cause, campaigning for improvements in the area or have won an award. If so, call us on 322-1986 and share your story.
Lutnick
Trump
Garden at the White House, Wednesday, April 2, 2025, in
AN UNSOLD 2021 F-Type coupe sits at a Jaguar dealership in this photograph taken Sunday, May 2, 2021, in Littleton, Colo.
Photo:David Zalubowski/AP
ELON MUSK SAYS HE HOPES FOR ZERO TARIFFS WITH EUROPE SOMEDAY
By The Associated Press
U.S. President Donald Trump's big raise in tariffs has triggered an escalating trade war and sent global markets plummeting.
The S&P 500 fell 6% Friday, the Dow Jones Industrial Average plunged 5.5% and the Nasdaq composite dropped 5.8%.
China announced Friday that it will impose a 34% tax on all U.S. imports next week, part of a flurry of retaliatory measures to Trump's new tariffs.
Trump has doubled down on his commitment to tariffs, maintaining that his new levies will bring trillions of dollars of investment to the U.S. while also criticizing other countries' retaliatory measures.
Billionaire Elon Musk told Italy League leader Matteo Salvini on Saturday that he hoped in the future the U.S. and Europe could create "a very close, stronger partnership" and reach a "zero-tariff zone."
Musk spoke to Salvini in a video conference during the League's congress in Florence. Salvini is the leader of the far-right, antimigrant League party and vice premier of the Italian conservative government led by Premier Giorgia Meloni.
He said that, ideally, there will be a "zero-tariff zone in the future with a free trade zone between Europe and North America."
Musk, an adviser to President Donald Trump who owns Tesla, SpaceX and the social media platform X, has played a key role in government downsizing as the head of the newly created Department of Government Efficiency.
Prime Minister Keir Starmer and French President Emmanuel Macron agreed Saturday that a trade war was in no one's interest as they discussed the fallout from the sweeping tariffs announced earlier this week by President Donald Trump. Starmer and Macron discussed the global economic and security impact of the tariffs, particularly in Southeast Asia, Starmer's office said in a statement released after a phone call between the two leaders.
"They agreed that a trade war was in nobody's interests, but nothing should be off the table and that it was important to keep business updated on developments," the statement said.
The leaders also discussed efforts to build a coalition of countries willing to support Ukraine in its war against Russia
and provide peacekeeping forces in the event a ceasefire is reached.
"Following discussions between military planners in Ukraine this week, they discussed the good progress that has been made on the Coalition of the Willing," the statement said.
The baseline 10% levy announced by Trump this week kicked in at 12:01 a.m. Saturday ET (0401 GMT), triggering customs agents' collections at ports of entry across the U.S. Countries targeted by Trump for higher tariffs are due to go in effect on Wednesday. Those include assessments as high as
50% for Lesotho, 49% for Cambodia and 47% for Madagascar.
In an all-caps social media post Saturday, Trump insisted: "THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN."
Public reaction hasn't been so confident, with stock markets slumping since the tariff announcement.
China spokesman takes a jab at Trump administration China's Foreign Ministry spokesperson Guo Jiakun posted on his Facebook page a screen saving showing the Dow Jones, S&P 500 and Nasdaq all declining by
more than 5% on Friday, with the commentary, "The market has spoken."
"The trade and tariff war started by the U.S. against the world is unprovoked and unjustified," Guo wrote. "Now is the time for the U.S. to stop doing the wrong things and resolve the differences with trading partners through equalfooted consultation."
China on Saturday night heaped more criticism on the U.S. tariffs, saying they had "seriously infringed upon the legitimate rights and interests of all countries, seriously violated the rules of the World Trade Organization, seriously damaged the rules-based multilateral trading system, and severely impacted the stability of the global economic order."
The U.S. "uses tariffs as a weapon to exert extreme pressure and seek private interests. This is a typical act of unilateralism, protectionism and economic bullying," said the statement, attributed to the Chinese government and carried by the official Xinhua News Agency.
"The Chinese people believe in treating others with sincerity and taking trust as the basis. We do not provoke trouble, but we are not afraid of trouble.
Pressure and threats are not the right way to deal with China. China has and will continue to take firm measures to safeguard its sovereignty, security and development interests," the statement said.
It said China would continue to promote "highlevel opening-up" rather than closing its economy with even higher tariffs.
"Economic globalization is the inevitable path for the development of human society," it said." "The world needs justice, not tyranny!"
The British maker of Jaguar and Land Rover cars is pausing shipments to the U.S. as it works to mitigate the impact of a 25% tax on vehicle imports imposed by the Trump administration. Jaguar Land Rover Automotive, one of Britain's biggest carmakers, said Saturday that the pause would take place this month.
"The USA is an important market for JLR's luxury brands," the company said in a statement. "As we work to address the new trading terms with out business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid-to-longer term plans."
