JERUSALEM: US officials have warned that Egypt and Jordan could annul their peace treaties with Israel and sever all diplomatic ties if the Jewish state attacks Iran’s nuclear sites, a newspaper said on Thursday.
Quoting a high-level Israeli official, the top-selling Israeli newspaper Yediot Aharonot said Washington had warned that Arab leaders would not be able to control an angry public backlash if Israel were to mount an attack on Iran.
The official, who was privy to the US warning, pointed to the violent response in several Middle Eastern countries to a film insulting Islam.
“An Israeli strike is just what the Iranians need. The entire Arab and Muslim street will take to the streets to demonstrate,” he said.
“What happened with the film against Prophet Muhammad (pbuh) is just a preview of what will happen in case of an Israeli strike,” he said of the unrest which has swept the Muslim world, targeting US embassies and other American symbols and leaving more than 30 people dead.
Egyptian and Jordanian leaders “would not be able to withstand the pressure of the masses and would have to take drastic measures such as the severing of diplomatic ties and annulling the peace agreements, despite the fact that they are personally opposed to a nuclear Iran,” the paper said.
As well as potentially sacrificing its relations with Jordan and Egypt, a strike “would have severe ramifications on ties between Israel and other Muslim countries around the world, which ... would be hard put to remain indifferent.”
Israel, the Middle East’s sole if undeclared nuclear power, has said it cannot rule out preemptive military action against Iran’s nuclear facilities.
Israel and much of the international community believe that Iran’s nuclear program masks a weapons drive, a charge denied by Tehran.
Washington has backed tough sanctions against Iran but has publicly differed with Israel over the timetable for any possible military action on its nuclear facilities.
US warns Israel Iran raid may cost peace deals: report
US warns Israel Iran raid may cost peace deals: report
Global operation seizes 1,400 tons of drugs, unearths new Pacific trafficking route
- More than 1,400 tons of drugs seized, over 400 criminals arrested in global operation in October and November
- Operation “Orion” involved the US, Brazil, Spain, Netherlands and other nations, as well as multiple international organizations
- The seizure deprived drug cartels of more than $8.4 billion dollars, according to the Colombian Navy
BOGOTA: Authorities from dozens of countries seized 225 metric tons of cocaine in a six-week mega-operation where they unearthed a new Pacific trafficking route from South America to Australia, the Colombian Navy said Wednesday.
The latest phase of global naval operation “Orion” resulted in the seizure of more than 1,400 tons of drugs, including 225 tons of cocaine and 128 tons of marijuana, navy official Orlando Enrique Grisales told reporters.
More than 400 people were arrested in the operation targeting oceans, coasts, rivers and ports around the globe in October and November.
The massive bust involved the security agencies of the United States, Brazil, Spain, the Netherlands and several other nations, as well as multiple international organizations.
The seizure deprived drug cartels of more than $8.4 billion dollars, according to a Navy statement.
Grisales said officials also seized a semisubmersible wood-and-fiber glass vessel on its way to Australia with five tons of Colombian cocaine.
This was the third such vessel discovered in this area, revealing a “new route” of trafficking with sophisticated boats that can cover the distance of some 10,000 miles without needing to refuel.
A kilogram of cocaine is sold for up to $240,000 in Australia, said Grisales — about six times more than the price in the United States.
“It is a route that is becoming increasingly profitable because prices are much higher in Australia,” a security source told AFP.
“Initially, these boats were used mainly to take the drugs out of the country and move them off the coast of Colombia and then transfer them to ships,” added the source.
“It has been found that these semisubmersibles, sometimes even submersibles, are now increasingly sophisticated, with very fine engineering.”
The operation also uncovered previously-unknown alliances between cartels from Mexico, Brazil, Colombia, Ecuador and Peru with groups from Europe and Oceania.
“It is not just a pyramid structure as the cartels once were. Today they are organized crime networks joined together,” said Grisales.
Colombia is the world’s biggest cocaine producer and exporter, mainly to the United States and Europe.
Last year, the South American country set a new record for cocaine production and cultivation of the coca leaf it is made from.
Under tariff threat, US wholesaler warns: ‘People will pay’
- No matter what happens in January, retailer Melquiades Flores says he has no option but to keep importing produce from Mexico
- The tomato-growing season in California lasts four months. The rest of the year, he gets the produce from Mexico
LOS ANGELES: While most of Los Angeles sleeps, 58-year-old Melquiades Flores starts his day at 1 a.m., supervising the unloading of produce at M&M Tomatoes and Chile Company, the wholesaler he started in 2019.
But the business that Flores hopes to pass to his children one day is bracing for a disruption.
US President-elect Donald Trump has pledged to impose a 25 percent tariff on all imports from Mexico and Canada when he takes office on Jan. 20, plus an additional 10 percent tariff on Chinese goods.
“Produce of Mexico” is stamped on almost all the boxes of tomatoes and chilies that arrive at Flores’ downtown warehouse, destined for homes, hotels and restaurant kitchens across the city.
“People will have to pay a higher price. Whatever they charge us, we will pass on to the consumer,” Flores said from his section of the larger complex, the Los Angeles Wholesale Produce Market.
No matter what happens in January, Flores says he has no option but to keep importing produce from Mexico. The tomato-growing season in California lasts four months, from August to November, he says. The rest of the year, he gets the produce from the Mexican states of Sinaloa, Baja California and Sonora.
His team stacks boxes upon boxes of tomatoes in every size and shade of red, plus some shiny green ones for making zesty tomatillo sauce.
“Any tariff is an added tax that impacts all of us, including those who buy a pound, two pounds, or a thousand or 10,000 pounds,” said Flores, who has lived in Los Angeles for 40 years and is originally from the Mexican state of Morelos.
Trump has pronounced his love of tariffs, presumably for raising revenue and protecting US industries against imports, but he avoids speaking about the inflationary effect or the impact of potential retaliation from the United States’ top three trading partners.
Officials from Mexico, Canada and China and major industry groups have warned that the tariffs Trump proposes would harm the economies of all involved, cause inflation to spike and damage job markets.
“The president should have first seen how much this will impact everyone before speaking,” Flores said.
Microsoft faces wide-ranging US antitrust probe
- Competitors complain Microsoft locks customers into its cloud service
- FTC earlier set the stage for probe into Microsoft’s role in AI market
The US Federal Trade Commission has opened a broad antitrust investigation into Microsoft, including of its software licensing and cloud computing businesses, a source familiar with the matter said on Wednesday.
The probe was approved by FTC Chair Lina Khan ahead of her likely departure in January. The election of Donald Trump as US president, and the expectation he will appoint a fellow Republican with a softer approach toward business, leaves the outcome of the investigation up in the air.
The FTC is examining allegations the software giant is potentially abusing its market power in productivity software by imposing punitive licensing terms to prevent customers from moving their data from its Azure cloud service to other competitive platforms, sources confirmed earlier this month.
The FTC is also looking at practices related to cybersecurity and artificial intelligence products, the source said on Wednesday.
Microsoft declined to comment on Wednesday.
Competitors have criticized Microsoft’s practices they say keep customers locked into its cloud offering, Azure. The FTC fielded such complaints last year as it examined the cloud computing market.
NetChoice, a lobbying group that represents online companies including Amazon and Google, which compete with Microsoft in cloud computing, criticized Microsoft’s licensing policies, and its integration of AI tools into its Office and Outlook.
“Given that Microsoft is the world’s largest software company, dominating in productivity and operating systems software, the scale and consequences of its licensing decisions are extraordinary,” the group said.
Google in September complained to the European Commission about Microsoft’s practices, saying it made customers pay a 400 percent mark-up to keep running Windows Server on rival cloud computing operators, and gave them later and more limited security updates.
The FTC has demanded a broad range of detailed information from Microsoft, Bloomberg reported earlier on Wednesday.
The agency had already claimed jurisdiction over probes into Microsoft and OpenAI over competition in artificial intelligence, and started looking into Microsoft’s $650 million deal with AI startup Inflection AI.
Microsoft has been somewhat of an exception to US antitrust regulators’ recent campaign against allegedly anticompetitive practices at Big Tech companies.
Facebook owner Meta Platforms, Apple, and Amazon.com Inc. have all been accused by the US of unlawfully maintaining monopolies.
Alphabet’s Google is facing two lawsuits, including one where a judge found it unlawfully thwarted competition among online search engines.
Microsoft CEO Satya Nadella testified at Google’s trial, saying the search giant was using exclusive deals with publishers to lock up content used to train artificial intelligence.
It is unclear whether Trump will ease up on Big Tech, whose first administration launched several Big Tech probes. JD Vance, the incoming vice president, has expressed concern about the power the companies wield over public discourse.
Still, Microsoft has benefited from Trump policies in the past.
In 2019, the Pentagon awarded it a $10 billion cloud computing contract that Amazon had widely been expected to win. Amazon later alleged that Trump exerted improper pressure on military officials to steer the contract away from its Amazon Web Services unit.
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.”
