WASHINGTON: President-elect Donald Trump’s nominee to be secretary of the Navy, John Phelan, has not served in the military or had a civilian leadership role in the service. While officials and defense experts said the Navy is in sore need of a disruptor, they cautioned that Phelan’s lack of experience could make it more difficult for him to realize Trump’s goals.
Trump late Tuesday nominated Phelan, a major donor to his campaign who founded the private investment firm Rugger Management LLC. The Trump transition team did not respond to a request for comment on his qualifications. According to his biography, Phelan’s primary exposure to the military comes from an advisory position he holds on the Spirit of America, a non-profit that supports the defense of Ukraine and the defense of Taiwan.
Not all service secretaries come into the office with prior military experience, but he’d be the first in the Navy since 2006. Current Secretary of the Army Christine Wormuth similarly does not have prior military service. She, however, has spent her career in a host of defense civilian positions.
The appointment comes at a critical moment for the Navy, which has been stretched thin with deployments around the world and must contend with a shrinking fleet even as the naval forces of its main rival, China, are growing. Trump has campaigned on expanding the Navy and would need to fight bureaucratic inertia to do so. But it’s uncertain whether a secretary with no military experience — either in uniform or as a defense civilian — would be well-positioned to lead that effort.
“It will be difficult for anyone without experience in the Pentagon to take over the leadership of a service and do a good job,” said Stacie Pettyjohn, a senior fellow and director of the defense program at the Center for a New American Security. “Services are sprawling organizations with distinct cultures, subcultures and bureaucratic interests, and where decisions are made through many formal processes. To change a service’s plans, one must understand this Byzantine landscape.”
Experts said Phelan’s nomination reflects that Trump is seeking service branch heads who will not push back on his ideas — but that Phelan’s lack of experience is likely to create issues and delays of its own, They say the Navy can’t afford to lose time. One of the Navy’s biggest challenges is preparing for a potential military confrontation with China over Taiwan, a self-ruled island that China claims as its own.
“The stakes are high,” said Brad Bowman, senior director of the Center on Military and Political Power at the Foundation for Defense of Democracies. “The success or failure in addressing key problems in the US Navy over the next couple years may have a decisive effect on war and peace in the Taiwan Strait and elsewhere.”
Trump has called for a 350-ship Navy since his 2016 presidential campaign, but he experienced first-hand the difficulty in realizing that goal, given the challenges to shipbuilding and the erratic and often delayed congressional budget process.
There are just under 300 battle force ships in the fleet — vessels that have a direct role in conducting combat operations.
“The Navy is stretched covering Europe, the Middle East and the Pacific. Strategists have wanted to pull back from Europe and the Middle East, but recent conflicts have prevented that,” said Mark Cancian, a senior adviser at the Center for Strategic and International Studies. “So the next secretary will have a shrinking fleet, expanded overseas commitments, and an uncertain budget environment.”
The Marine Corps has called for 31 amphibious warships to help it maintain a close-to-shore presence around the globe. The Navy regularly has had to extend the deployments of its aircraft carriers and escorting destroyers, for example, to respond to the unstable security situation in the Middle East.
Each extension can create rippling effects: Ships don’t get maintained on schedule, and forces get tired of the lack of predictability for their families and leave the service.
Service branch chiefs spend vast amounts of time not only responding to the White House but also appeasing members of Congress in frequent hearings on Capitol Hill, shaping budget requests, holding constant meetings on service member issues, attending industry conferences and filling speakers requests. That all requires a nuanced understanding of the service that a secretary is leading, because major change in any of the branches often involves a lengthy process to review directives and past policy. Any changes to the many weapons systems the Navy and Marine Corps need and pursue are subject to lengthy contract award challenges.
“The Navy’s problem here is money,” Cancian said. “Even if the defense budget goes up, there will only be a relatively small increase available for shipbuilding. (If) the budget stays steady or goes down, then the Navy will have a major problem. The fleet will continue to shrink.”
Trump has signaled through multiple appointments, such as his selection of SpaceX founder Elon Musk to co-lead a nongovernmental Department of Government Efficiency, that he seeks to cut through red tape. But the service secretary can’t do that without moving through Congress, which has produced many of those regulations and processes the military must follow.
“It might help that he has a personal relationship with the president. However, his lack of experience in defense and the Pentagon will hurt the Navy,” Cancian said. “It will take him a while to learn the levers of power.”
Trump turns to outsider to shake up Navy, but his lack of military experience raises concerns
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Trump turns to outsider to shake up Navy, but his lack of military experience raises concerns
- The appointment comes at a critical moment for the Navy, which has been stretched thin with deployments around the world
Biden readies $725 million arms aid package for Ukraine, sources say
WASHINGTON: US President Joe Biden’s administration is preparing a $725 million weapons package for Ukraine, two US officials said on Wednesday, as the outgoing president seeks to bolster the government in Kyiv before leaving office in January.
According to an official familiar with the plan, the Biden administration plans to provide a variety of anti-tank weapons from US stocks to blunt Russia’s advancing troops, including land mines, drones, Stinger missiles, ammunition for High Mobility Artillery Rocket Systems (HIMARS).
The package is also expected to include cluster munitions, which are typically found in Guided Multiple Launch Rocket System (GMLRS) rockets fired by HIMARS launchers, according to the notification, seen by Reuters.
The formal notification to Congress of the weapons package could come as soon as Monday, one official said.
The contents and size of the package could change in the coming days ahead of Biden’s expected signature.
It marks a steep uptick in size from Biden’s recent use of so-called Presidential Drawdown Authority (PDA), which allows the US to draw from current weapons stocks to help allies in an emergency.
Recent PDA announcements have typically ranged from $125 million to $250 million. Biden has an estimated $4 billion to $5 billion in PDA already authorized by Congress that he is expected to use before Republican President-elect Donald Trump takes office on Jan. 20.
The United States has not exported land mines in decades, and their use is controversial because of the potential harm to civilians. Although more than 160 countries have signed a treaty banning their use, Kyiv has been asking for them since Russia launched its full-scale invasion in early 2022 and Russian forces have used them on the front lines.
Russian forces currently are making gains in Ukraine at the fastest rate since the early days of the 2022 invasion, taking an area half the size of London over the past month, analysts and war bloggers said this week.
The United States expects Ukraine to use the mines in its own territory, though it has committed not to use them in areas populated with its own civilians.
Trump on Wednesday tapped Keith Kellogg, a retired lieutenant general who presented him with a plan to end the war in Ukraine, to serve as special envoy for the conflict. Quickly winding down the Ukraine war was one of Trump’s central campaign promises, though he has avoided discussing how he would do so.
Tariff plan would hurt both the US and Mexico, Sheinbaum tells Trump
- Mexico says Trump tariffs would kill 400,000 US jobs and drive up prices for US consumers
- Sheinbaum also warned that Mexico would retaliate if Trump makes good his tariff plan
MEXICO CITY: Mexico’s president discussed migration and drug trafficking with US President-elect Donald Trump on Wednesday — two issues he had raised as justification for raising import tariffs on America’s southern neighbor.
Claudia Sheinbaum said she had had “an excellent conversation” with Trump, just hours after her economy minister warned that the cost to US companies of Trump’s tariffs would be “huge.”
“We discussed Mexico’s strategy regarding the phenomenon of migration,” Sheinbaum said on X, adding she had told Trump that caravans of migrants “are not arriving at the northern border because they are being attended to in Mexico.”
Earlier on Wednesday, Sheinbaum said Mexico would retaliate if US President-elect Donald Trump followed through with his proposed 25 percent across-the-board tariff, a move her government warned could kill 400,000 US jobs and drive up prices for US consumers.
“If there are US tariffs, Mexico would also raise tariffs,” Sheinbaum said during a press conference, in her clearest statement yet that the country was preparing possible retaliatory trade measures against its top trade partner.
Mexican Economy Minister Marcelo Ebrard, speaking alongside Sheinbaum, called for more regional cooperation and integration instead of a war of retaliatory import taxes.
“It’s a shot in the foot,” Ebrard said of Trump’s proposed tariffs, which appear to violate the USMCA trade deal between Mexico, Canada and the US.
Discussion with Trump
In her talks with Trump later, she said they discussed “strengthening collaboration on security issues” as well as “the campaign we are conducting in the country to prevent the consumption of fentanyl.”
Trump on Monday said he would impose tariffs of 25 percent on Mexican and Canadian imports and 10 percent on goods from China.
“This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country!” Trump wrote on his Truth Social page.
The Republican, who won an election in which illegal migration was a top issue, has vowed to declare a national emergency on border security and use the US military to carry out a mass deportation of undocumented migrants.
Mexican Economy Minister Marcelo Ebrard said Wednesday some “400,000 jobs will be lost” in the United States if Trump followed through on his threat. He cited a study based on figures from US carmakers that manufacture in Mexico.
Tariff impact
Ebrard said the tariffs would also hit US consumers hard, citing the US market for pickup trucks — most of which are manufactured in Mexico. The tariffs, the minister said, would add $3,000 to the cost of a new vehicle.
“The impact of this measure will chiefly be felt by consumers in the United States... That is why we say that it would be a shot in the foot,” Ebrard told reporters, speaking alongside Sheinbaum at her regular morning conference.
The proposed tariffs would hit the automotive sector’s top cross-border exporters especially hard, Ebrard added, namely Ford, General Motors and Stellantis.
Ebrard noted that 88 percent of pickup trucks sold in the US are made in Mexico and would see a price increase. These vehicles are popular in rural areas that overwhelmingly voted for Trump.
Mexico and China have been particularly vociferous in their opposition to Trump’s threats of a trade war from day one of his second presidential term, which begins on January 20.
Sheinbaum has declared the threats “unacceptable” and pointed out that Mexico’s drug cartels exist mainly to serve drug use in the United States.
China has warned that “no one will win a trade war.”
During his first term as president, Trump launched full-blown trade hostilities with Beijing, imposing significant tariffs on hundreds of billions of dollars of Chinese goods.
China responded with retaliatory tariffs on American products, particularly affecting US farmers.
The United States, Mexico and Canada are tied to a three-decade-old largely duty-free trade agreement, called the USMCA, that was renegotiated under Trump after he complained that US businesses, especially automakers, were losing out.
Many analysts regard Trump’s tariff threats as more of a negotiating tactic than trade policy.
“The lack of a clear link between this threat and questions related to trade suggests the new president plans to use tariffs as a negotiating strategy to achieve goals largely unrelated to trade,” said David Kohl, chief economist at Julius Baer.
Profit wiped out
Mexico’s automotive industry is the country’s most important manufacturing sector, exporting predominantly to the United States. It represents nearly 25 percent of all North American vehicle production.
Analysts at Barclays said they estimate the proposed tariffs “could wipe out effectively all profits” from the Detroit Three automakers.
“While it’s generally understood that a blanket 25 percent tariff on any vehicles or content from Mexico or Canada could be disruptive, investors under-appreciate how disruptive this could be,” they wrote in a note on Tuesday.
Brian Hughes, a spokesperson for Trump’s transition team, said the tariffs would protect US manufacturers and workers from “unfair practices of foreign companies and foreign markets.”
Hughes said Trump would implement policies to make life affordable and more prosperous for his country.
GM and Stellantis declined to comment. Ford did not comment on how the threatened tariffs would affect its business but said it manufactures more vehicles in the United States than most major automakers.
Mexico’s automotive industry group AMIA said it would prepare for any possibility and wait to see what formal actions are taken.
The Institute of International Finance, a trade group for the global financial services industry, warned Mexico-US relations would be challenging going forward.
“The imposition of tariffs, eventually leading to increased protectionism, and other policies affecting exchange rates and commodity prices could have significant implications for the region,” it said in a note.
The USMCA is up for review in 2026.
Katia Goya, director of international economics at Grupo Financiero Banorte, said it was likely the three USMCA countries would seek wholesale renegotiation of the pact rather than just rubber-stamp it to continue in its current form.
“The effect of a trade-conflict situation is that it will mean lower economic growth in the United States, higher unemployment and higher inflation,” Goya said.
Ebrard said USMCA trade amounted to $1.78 trillion in the first nine months of this year.
“We can fragment and divide with tariffs,” Ebrard said. “Mexico does not want conflicts and divisions, but to build a stronger region.”
British police launch new investigation into people linked to late Harrods boss Al-Fayed
- The BBC documentary said Harrods failed to intervene and helped cover up abuse allegations during his ownership
LONDON: British police said they had launched an investigation into whether people linked to the late Egyptian billionaire Mohamed Al-Fayed helped enable his alleged rape and other sexual abuse of female staff at his London department store Harrods and elsewhere.
A BBC documentary reported in September that Al-Fayed, who died last year aged 94, had sexually abused female staff, forced them to have medical screenings and threatened consequences if they tried to complain.
Al-Fayed always denied similar accusations before his death.
“This investigation is about giving survivors a voice, despite the fact that Mohamed Al-Fayed is no longer alive to face prosecution,” Commander Stephen Clayman from London’s Metropolitan Police Service said in a statement on Wednesday.
“However, we are now pursuing any individuals suspected to have been complicit in his offending, and we are committed to seeking justice.”
He did not say how many people were under investigation.
Lawyers representing victims have said the abuse took place not just at Harrods but also in other locations linked to Al-Fayed’s business empire, such as Fulham Football Club, the Ritz Paris hotel and his estate in Surrey, saying more than 400 people had come forward.
The BBC documentary said Harrods failed to intervene and helped cover up abuse allegations during his ownership.
Harrods has apologized and said it is “appalled” by the allegations. It has launched a process for any current or former Harrods employees who wished to claim compensation, although the plan has been criticized by victims’ lawyers.
The MPS said 90 victims had come forward over the last two months.
Earlier this month, the MPS referred itself to the police watchdog over its handling of two complaints against Al-Fayed in 2008 and 2013. The MPS said it would review all historical reports made against Al-Fayed.
US sanctions Venezuela security chiefs for crackdown
WASHINGTON: The United States slapped sanctions on 21 top Venezuelan security and cabinet officials Wednesday, accusing them of a campaign of repression after President Nicolas Maduro’s bitterly contested July reelection.
The fresh measures — which Venezuela rejected as a “desperate act” against “patriots” — come after Washington and the G7 said they recognized opposition candidate Edmundo Gonzalez Urrutia as president-elect, amid accusations of fraud against Maduro.
“Maduro and his representatives’ repressive actions in the wake of the Venezuelan presidential election are a desperate attempt to silence the voices of its citizens,” Bradley Smith, the acting under secretary of the Treasury Department, said in a statement.
Fifteen leaders of the Venezuelan security apparatus are among those hit by an asset freeze, including the heads of the intelligence service, military counterintelligence service, the national guard and the police.
The sanctions also target the Venezuelan communications minister and the head of the prison service.
“All of these entities are part of Maduro’s security apparatus and are responsible for violently repressing peaceful protesters and carrying out arbitrary detention,” a senior US administration official told reporters.
A Venezuelan foreign ministry statement said the country “rejects with the utmost firmness” the latest sanctions of the “outgoing US government against the Venezuelan people and, in particular, a group of patriots who have dedicated themselves to safeguarding peace, stability, economic recovery and national unity in the face of fascist violence.”
The US Treasury said Venezuelan security forces had also issued an “unjustified arrest warrant” for Urrutia, forcing him to flee to Spain.
At the same time, the US State Department said it was expanding visa restrictions on Maduro’s allies.
“Maduro’s security apparatus has engaged in widespread abuses, including killings, repression, and mass detention of protesters,” the State Department said in a statement.
In September, the United States announced sanctions against 16 Venezuelan officials over alleged election fraud.
They included senior figures in the Venezuelan electoral council and Supreme Court, with the US Treasury saying at the time that they “impeded a transparent electoral process and the release of accurate election results.”
Maduro claimed victory in the election and defied intense domestic and international pressure to release detailed polling numbers to back up the assertion.
Amid an outcry at home and abroad, the former bus driver handpicked by the late authoritarian strongman Hugo Chavez is now serving his third term.
But the oil-rich country’s economy is in shambles, as Venezuelans endure acute shortages of food, medicine and other basic goods.
Maduro is accused of leading a harshly repressive leftist regime, with a systematic crackdown on the opposition.
Canada is already examining tariffs on certain US items following Trump’s tariff threat
TORONTO: Canada is already examining possible retaliatory tariffs on certain items from the United States should President-elect Donald Trump follow through on his threat to impose sweeping tariffs on Canadian products, a senior official said Wednesday.
Trump has threatened to impose tariffs on products from Canada and Mexico if the countries don’t stop what he called the flow of drugs and migrants across southern and northern borders. He said he would impose a 25 percent tax on all products entering the US from Canada and Mexico as one of his first executive orders.
A Canadian government official said Canada is preparing for every eventuality and has started thinking about what items to target with tariffs in retaliation. The official stressed no decision has been made. The person spoke on condition of anonymity as they were not authorized to speak publicly.
When Trump imposed higher tariffs during his first term in office, other countries responded with retaliatory tariffs of their own. Canada, for instance, announced billions of new duties in 2018 against the US in a tit-for-tat response to new taxes on Canadian steel and aluminum.
Many of the US products were chosen for their political rather than economic impact. For example, Canada imports $3 million worth of yogurt from the US annually and most comes from one plant in Wisconsin, home state of then-House Speaker Paul Ryan. That product was hit with a 10 percent duty.
Another product on the list was whiskey, which comes from Tennessee and Kentucky, the latter of which is the home state of then-Republican Senate leader Mitch McConnell.
Trump made the threat Monday while railing against an influx of illegal migrants, even though the numbers at Canadian border pale in comparison to the southern border.
The US Border Patrol made 56,530 arrests at the Mexican border in October alone — and 23,721 arrests at the Canadian one between October 2023 and September 2024.
Canadian officials say lumping Canada in with Mexico is unfair but say they are happy to work with the Trump administration to lower the numbers from Canada. The Canadians are also worried about a influx north of migrants if Trump follows through with his plan for mass deportations.
Trump also railed about fentanyl from Mexico and Canada, even though seizures from the Canadian border pale in comparison to the Mexican border. US customs agents seized 43 pounds of fentanyl at the Canadian border last fiscal year, compared with 21,100 pounds at the Mexican border.
Canadian officials argue their country is not the problem and that tariffs will have severe implications for both countries.
Canada is the top export destination for 36 US states. Nearly $3.6 billion Canadian ($2.7 billion) worth of goods and services cross the border each day. About 60 percent of US crude oil imports are from Canada, and 85 percent of US electricity imports are from Canada. Canada is also the largest foreign supplier of steel, aluminum and uranium to the US and has 34 critical minerals and metals that the Pentagon is eager for and investing in for national security.
“Canada is essential to the United States’ domestic energy supply,” Deputy Prime Minister Chrystia Freeland said.
Trump has pledged to cut American energy bills in half within 18 months, something that could be made harder if a 25 percent premium is added to Canadian oil imports. In 2023, Canadian oil accounted for almost two-thirds of total US oil imports and about one-fifth of the US oil supply.
Prime Minister Justin Trudeau is holding a emergency virtual meeting on Wednesday with the leaders of Canada’s provinces, who want Trudeau to negotiate a bilateral trade deal with the United States that excludes Mexico.
Mexican President Claudia Sheinbaum said Wednesday that her administration is already working up a list of possible retaliatory tariffs “if the situation comes to that.”
