HHS pulls millions from Duke under Trump DEI order, alleging race-based hiring at health arm
In a letter to Duke President Vincent Price, Chairman of the Board of Trustees Adam Silver, and School of Medicine Dean Mary Klotman, Secretaries Robert F. Kennedy, Jr., and Linda McMahon outlined that racial preferences in hiring, student admissions, governance and patient care "betray" the mission of American health care and "endanger human lives."
"The United States invests in medical care and research because of the sacredness of human life and value of human health," the letter read.
"There is arguably no other area of our educational system where the rejection of merit is more dangerous than in medicine, where the competence of doctors means the difference between life and death for patients, and where scientific discovery is the difference between life-saving cures and the ravages of disease."
Kennedy and McMahon said their respective agencies have been investigating allegations that Duke Health's practices may be violating Title VI of the Civil Rights Act and Section 1557 of the ObamaCare law.
Therefore, the secretaries said, the situation "render[s] Duke Health unfit for any further financial relationship with the federal government."
A senior administration official told Fox News Digital the ultimate amount of the frozen funding is $108 million.
The Civil Rights Act code cited prohibits recipients of financial assistance from denying benefits or discriminating against individuals based on race, color or national origin.
The Affordable Care Act section cited extends health care protections for federal funding that forbid the aforementioned discrimination; adding the fields of disability, age and sex.
Duke Health allegedly engaged in "illegal and wrongful racial preferences and discriminatory activity in recruitment, student admissions, scholarships and financial aid, mentoring and enrichment programs, hiring, promotion, and more," according to Kennedy and McMahon.
They called such racism "vile" and said it "hides behind a smug superiority" that "such [so-called] 'benefitted' races cannot compete under merit-based consideration."
"Affirmative action undermines America's commitment to merit-based justice and violates the nation's civil rights laws. In the medical context, this illegal preferencing also breaks faith with patients, hinders medical discovery, and jeopardizes human life and health."
The feds kept the door open to future partnerships with Duke, noting the school and hospital has long had a commitment to medical excellence and would prefer to see it "repair these problems."
In order to return to good standing, Duke Health must review all policies and procedures in terms of illegal use of race preference, take immediate action and provide verifiable assurances to Washington that the medical unit will operate in "good faith" oncemore.
"If the alleged offending policies, practices, and programs are found to exist and remain unrectified after six months, or if at any time the Merit and Civil Rights Committee and federal government reach an impasse, the federal government will commence enforcement proceedings as appropriate," the secretaries warned in closing.
Fox News Digital reached out to Duke via Price's office and also solicited comment from Silver via his day job as NBA commissioner.
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CNN
33 minutes ago
- CNN
Analysis: Trump bludgeoned the EU on trade. Good luck doing the same to China
President Donald Trump isn't going to bulldoze China on trade like he did Europe. Two days after the EU agreed to a framework trade deal with the White House that some of the bloc's national leaders regard as a capitulation, Trump's negotiators left talks with Chinese President Xi Jinping's team in Sweden with no breakthrough. Following a flurry of trade deal announcements celebrated by the administration, China and the US are expected to carry on talking. But the lack of significant progress was a blunt reminder of China's power, the stakes it sees in standing up to Trump and how efforts to remake global trade will be incomplete without a deal with Beijing. Instead of another win, Trump's negotiators on Wednesday will present him with a proposal to extend a pause on historic mutual tariff hikes, which would otherwise hit on August 12. The president has a choice: either approve more time for more talks, which would suit Beijing, or revive a disastrous superpower trade war. It's hardly a choice at all. 'We're just going to give him the facts, and then he will decide,' Treasury Secretary Scott Bessent, who along with US Trade Representative Jamieson Greer led the US delegation in Stockholm, told CNBC Tuesday. No one is denying Trump's on a roll with trade. He can justifiably claim significant political victories with a series of framework deals with the EU, the UK, Japan, Indonesia and the Philippines that favor the United States by imposing one-sided tariffs. Trump's bet that other nations and trading blocs would have no option but to, in his words, pay more for access to the mighty American market has paid off. And, in his trade deals, he successfully opened up some previously closed markets to American manufacturers. Trump has long regarded Europeans as freeloading off American power. He's made good on his promise to substantially reinvent the transatlantic relationship, securing a 15% tariff on the EU's exports while forcing NATO members to agree to steep increases in defense spending by 2035. His hunch that allies are so beholden to the US on security that they'd fold on trade was spot-on. Trump is also flouting the conventional wisdom of most economic experts, and he's fractured the global free trade and low tariff system in imposing some of the highest duties since the 1930s. And so far, the global economic disaster that many predicted has not materialized. Most remarkably, he's acted to impose a personal obsession he's nursed since the 1980s — tariffs. But it may only be halftime. Many of the expected consequences of this new radical US trade policy are yet to kick in, including higher prices for American consumers that could quickly sour voters on the president's approach. Goldman Sachs estimates that it could take up to eight months for price hikes to show up. Other consequences of Trump's trade romp will also take time to become obvious. That's not stopping the administration's triumphalism. 'No one's moved as fast as the world has moved with respect to Donald Trump. He has moved the world in a way that no one can imagine,' Commerce Secretary Howard Lutnick told CBNC. 'He's done this in six months; this is amazing.' But China is looming in the path of Trump's victory lap. And the president may have met his match in Xi. He faces none of the constraints that spiked the trade guns of Europe — which was wary of antagonizing Trump and risking its military umbrella and its need for US support on Ukraine. And China's resistance is grounded in economics, sovereignty and politics that are existential for its Communist Party regime. No Chinese leader — especially one like Xi, who built his power on nationalism and restoring what Beijing sees as its rightful dignity and respect — can capitulate to an American president in a trade negotiation. China's centralized political structure, unlike the often-fractious 27-nation EU, also gives it stability. It also has cards to play that can hold the US economy hostage — including its dominance of the production of rare earth elements used in the manufacture of smartphones, smart weapons, satellites and aviation engines. China reacted to Trump's initial declaration of a trade war by blocking the export of the vital elements. It has since reopened the market, but the Trump administration is still complaining that Beijing is taking too long to approve all rare earth applications for US companies. But the fact that rare earths are a Trump card for Xi is not lost on anyone. Decades ago, China's isolated leaders didn't understand US politics. That's no longer the case. And it would not be surprising if they've already concluded that if they stand up to Trump, he'll back down. Calling China's bluff in these circumstances would be a massive gamble. It's not that China wants a trade war or would not be hurt by one. Its economy is plagued by problems. But its authoritarian system means Xi can impose more pain on his people than Trump might risk inflicting on Americans. It was almost alone among global trading powers in ignoring Bessent's admonition not to retaliate after Trump's tariff outburst in April. Bruce Stokes, a visiting senior fellow at the German Marshall Fund, argued that Trump's desire to visit Beijing later this year for a summit with Xi could also be crucial. 'This is not just about economics. (Trump) wants to be tough on China, I think that's indisputable,' said Stokes. 'But I think he wants even more so to have the opportunity to go mano a mano in Beijing, both for the optics of it and he believes he's a dealmaker who can strike a deal.' Stokes added: 'The Chinese experts I talk to think that the Chinese think that this guy can be manipulated. 'This guy, you can play him, and we'll see what happens.'' Trump's zeal for one-on-one dealmaking is antithetical to the protocol-laden approach of the Chinese. Chinese negotiators seek to shield their leader by ironing out agreements at lower levels. Trump's team seeks to set up theirs for grand photo-ops that fuel his 'Art of the Deal' ego. There's zero chance that Xi would fly to a meeting with Trump and improvise an agreement, then dole out sycophantic praise for his dealmaking as top European official Ursula von der Leyen did at the weekend. Bessent told CNBC that there was extensive 'pregame' planning in Stockholm, starting with 75 Chinese officials, compared with the 15 in the US delegation. Eventually, the teams were whittled down for the nitty gritty involving Bessent, Greer and Chinese Vice Premier He Lifeng. The Treasury chief insisted that the talks had made 'good progress' toward the US position on a 'clunky' Chinese system of controls on rare earth exports. Vice Premier He said that the talks were constructive and that the two sides would continue to push for a 90-day extension of the pause on reciprocal tariffs. But Bessent cautioned that China had jumped the gun on the pause before Trump weighs in. Of course, presidents make the ultimate decision in foreign policy. But this may be mostly optics. Trump needs to be seen as the big guy. But it's also a measure of his chaotic volatility that nothing is for certain unless he signs off. China's imperviousness to Trump's box of trade tricks is not the only reason why administration gloating is premature. Trade agreements are usually complex, running to thousands of pages after exhaustive negotiations between trade lawyers. The superficial framework agreements released by the White House, by contrast, show that nettlesome disputes in deals with EU and other trade competitors are unresolved. Such skimpy agreements could easily fall apart. Trump might also react to foot-dragging on details by lashing out with tariffs. And recriminations boiling within Europe mean it's not certain that the agreement reached on Sunday in Scotland will survive. Trump's business, personal and political life has always existed in a perpetual cycle of postponing reckonings. It's therefore typical that while he's touting his winning streak on trade now, he has no idea what lies ahead. It will take time to judge how the almost-certain rises in consumer prices will impact the economy. And the shock of tariffs will take months to work through supply chains and procurement schedules drawn up years in advance. This explains why Federal Reserve Chairman Jerome Powell is loath to slash interest rates despite Trump's fury. Tariffs may not kill economic growth and cause a recession, and businesses may adapt to the new certainty of duties between 15% and 20%. Higher costs could be shared by consumers, companies and suppliers in a way that eases some of the impact on voters ahead of next year's midterm elections. But while historically high, the tariffs probably aren't sufficiently punitive to force companies to undertake the massively expensive process of relocating production to the United States — an ostensible justification for Trump's trade wars. And Trump won't be in the Oval Office forever. CEOs may reason that his successor will likely temper protectionism, especially if the economy slows. Other difficulties also loom. Canada, unlike the EU, seems in no mood to sue for peace after Prime Minister Mark Carney won power on visceral anti-Americanism in the electorate. A prolonged trade conflict would hurt Canadians more than Americans, owing to the relative size of the neighbors' economies. But Carney can make things difficult for Trump. A sudden spurt of inflation early next year, perhaps triggered by the Federal Reserve chief Trump will appoint when Powell's term ends, could also undermine the fragile foundation on which the president's trade wins rest. This all explains why a real deal with China is so important. And Beijing knows it, so it's unlikely to fold.
Yahoo
40 minutes ago
- Yahoo
To avoid worst of Trump tariffs, E.U. accepted a lopsided deal
BRUSSELS - The tariff-and-spending accord announced Sunday by the United States and the European Union stands to avert a damaging trade war between two of the world's largest economies, but it is lopsided in favor of President Donald Trump's protectionist policies, with Brussels swallowing bitter concessions in hopes of stabilizing a relationship that is vital not just economically but also for security interests. The rough agreement - which allows Washington to raise tariffs on E.U. goods while the Europeans promise to buy more U.S. products - quickly came under sharp criticism in Europe. Despite feisty rhetoric and vows to stand up to Trump, E.U. leaders largely acquiesced to the U.S. leader's ever-changing demands. Subscribe to The Post Most newsletter for the most important and interesting stories from The Washington Post. E.U. negotiators insisted the deal was the best way to avoid a highly damaging tit-for-tat trade war that would benefit rivals such as China and Russia. But European officials and analysts said the tentative agreement does not end the uncertainty because so many details must still be worked out. To the harshest critics, including some in France who spoke of a 'capitulation' and 'humiliation,' the agreement is proof of a deeply unbalanced alliance and the latest example of European appeasement of Trump. At NATO, allies similarly strained to pledge the huge increases in military spending demanded by Trump. European Commission President Ursula von der Leyen, who announced the deal with Trump while sitting next to him at one of his golf resorts in Scotland on Sunday, touted 'a huge deal,' clearly playing to Trump's love of largeness. But at her news conference soon after, von der Leyen appeared far more sober, declaring the 15 percent tariffs she had accepted on European automobiles to be 'the best we could get.' The E.U., and in particular Germany, its automaking powerhouse, had hoped to eliminate the 25 percent U.S. car tariffs entirely. 'We should not forget where we came from,' von der Leyen said. 'Fifteen percent is certainly a challenge for some, but we should not forget it keeps us the access to the American markets.' Trump indeed had threatened far worse, including a 30 percent across-the-board tariff that upended months of painstaking negotiations. Under the new deal, the United States will impose a 15 percent duty on most imports from the E.U. The blanket rate foisted on the E.U. mirrors a U.S. deal announced this month with Japan, another Group of Seven ally, but it is higher than the 10 percent that Britain secured earlier this year and that E.U. officials had grudgingly accepted in recent talks. Since World War II, trade agreements have largely sought to reduce the cost of buying and selling goods across borders. A 2017 deal the E.U. struck with Canada eliminated tariffs on most goods traded between them. An agreement signed with Vietnam in 2019 aims to phase out nearly all customs duties. Trump's accord with the E.U. goes in the opposite direction by raising tariffs, with some exceptions. Economists say the tariffs will increase costs for importers, who must pay the duties, and put upward pressure on inflation. Consumers and businesses will probably bear some of the extra costs, experts say. In France, where President Emmanuel Macron had urged the E.U. to take a harder line, the deal drew sharp backlash. While Macron was quiet Monday, Prime Minister Francois Bayrou said it was 'a dark day when an alliance of free people, brought together to assert their values and defend their interests, resigns itself to submission.' Von der Leyen's European Commission, the E.U.'s executive body that negotiates trade policy for its 27 member nations, had faced calls from Germany and Italy, two countries that do outsize business with the United States, for an accord that would limit damage to their export-dependent companies. But even capitals that had urged a conciliatory approach were not exactly celebrating on Monday. 'The agreement successfully averted a trade conflict that would have hit the export-oriented German economy hard,' German Chancellor Friedrich Merz said. Still, members of the European Parliament from Germany blasted the deal even as it reduced Trump's tariff on cars, one of Germany's central demands. 'My first assessment: not satisfactory; this is a lopsided deal,' said Bernd Lange, who chairs the European Parliament's committee on international trade, in a post on X. 'Concessions have clearly been made that are difficult to accept. Deal with significant imbalance. Furthermore lot of questions still open.' Dutch Prime Minister Dick Schoof acknowledged that 'no tariffs would have been better' but called the deal 'vital for an open economy like ours.' Belgian Prime Minister Bart De Wever said, 'One thing is clear: This is a moment of relief but not of celebration.' The talks laid bare the E.U.'s queasiness at using its economic muscle, one of its few areas of leverage against Washington, at a time when allies have had to calibrate repeatedly to keep Trump on board as Russia wages war in Ukraine. Ultimately, after months of mixed signals and threats from Trump, E.U. leaders said they accepted a deal to give their industries a reprieve from the uncertainty that threatened to cripple business. Officials suggested they had relented out of concern that Trump was prepared to raise tariffs to a level that would effectively halt trade between Europe and the United States. 'Let's pause for a moment and consider the alternative: A trade war may seem appealing to some but it comes with serious consequences,' said the E.U. trade commissioner, Maros Sefcovic, who shuttled to Washington in recent months for difficult talks with Trump officials. 'Our businesses have sent us a unanimous message: Avoid escalation and work toward a solution that brings immediate tariff relief,' Sefcovic told reporters Monday. He said that he and his team had traveled to Washington 10 times for a deal and that the E.U.'s calculations reached beyond trade. 'It's about security, it's about Ukraine, it's about current geopolitical volatility,' Sefcovic said. He said he couldn't go into detail on what was discussed in the room with Trump on Sunday, 'but I can assure it was not just about the trade.' Now, nearly 70 percent of European goods will face the blanket tariff, a big increase in charges, according to a senior E.U. official who spoke on the condition of anonymity to talk frankly about the details of the deal, which is still under negotiation. The E.U. had sought carve-outs from the U.S. tariff regime for key sectors including wine and spirits, and aircraft parts. The announced agreement eliminates tariffs on airplane parts, but a decision on wine and spirits was postponed. E.U. officials said talks will continue in the coming weeks. The two sides appeared to diverge on other details. The White House indicated that a 50 percent tariff on steel would remain in place, while E.U. officials said there would be further negotiations on lowering steel tariffs. Many officials and experts said it was crucial to sort out the details. 'We need to understand what is included,' said Brando Benifei, an Italian member of the European Parliament and head of its delegation for relations with the United States. Some questioned if ongoing U.S. trade inquiries by the Trump administration might still result in extra tariffs, such as on European-made pharmaceuticals, though the E.U. said those should remain capped at 15 percent under the new agreement. At first glance, Benifei said, the deal 'seems very asymmetric.' 'The result is due in my view to the push by some governments to have a deal at any cost, which has weakened our stance,' he added. 'Because the U.S. knew some governments wanted a deal whatever the cost.' Others noted that Trump's threats managed to shift the view on what constituted relief. Just a few weeks ago, E.U. and U.S. negotiators neared an agreement that involved a blanket tariff of 10 percent, before a Truth Social post by Trump derailed them. On Monday, some investors saw benefits for Europe's key auto industry, for instance, which would see U.S. car tariffs reduced to 15 percent from 25 percent. The tariffs, however, were at 2.5 percent before Trump's global trade blitz, and some industry groups noted their dismay. 'The U.S. tariff rate of 15 percent, which also applies to automotive products, will cost German automotive companies billions annually and burdens them,' said Hildegard Mueller, president of Germany's main auto industry group, the VDA. On some issues, the Europeans stood their ground. Trump officials had pressed the E.U. for concessions on tech industry regulations and on food standards, which the bloc insisted were nonnegotiable. As part of the deal, Trump said Europe had committed to buying more U.S. energy and weapons, and boosting investment in the United States. But those provisions are mostly aspirational promises without guarantees. European nations were already poised to buy more U.S. weapons under an arrangement with Trump to continue arming Ukraine, and the bloc was already seeking alternative energy sources, including liquefied natural gas from the United States, as part of its push to phase out Russian energy imports. More energy purchases and European investments would come from member states and companies that Brussels does not control. Italian Prime Minister Giorgia Meloni, seen as a close Trump ally in the E.U., heralded the deal, while saying details still need to be worked out. 'I obviously welcome the fact that an agreement has been reached,' Meloni told reporters. Still, she added, 'we need to verify the possible exemptions, particularly for certain agricultural products. So there are a number of elements that are missing.' - - - Faiola reported from Rome. Beatriz Rios in Brussels and Cat Zakrzewski in Edinburgh, Scotland, contributed to this report. Related Content The U.S. military is investing in this Pacific island. So is China. In a stressful human world, 'mermaiding' gains popularity in D.C. area 'College hazing' or training? Amid shortage, air traffic recruits wash out.
Yahoo
an hour ago
- Yahoo
US-China tariff talks may provide clues on a possible Trump-Xi meeting
Sweden US China Trade Talks STOCKHOLM (AP) — Top trade officials from China and the United States launched a new round of talks on Monday in a bid to ease tensions over tariffs between the world's two biggest national economies. U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng were meeting at the offices of Sweden's prime minister for two days of talks, which Bessent has said will likely lead to an extension of current tariff levels. But other possible outcomes will be scrutinized by markets and businesses for signs of a rapprochement, after brinkmanship earlier this year. Analysts say the talks could set the stage for a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping later this year. Other issues on the agenda include access of American businesses to the Chinese market; Chinese investment in the U.S.; components of fentanyl made in China that reach U.S. consumers; Chinese purchases of Russian and Iranian oil; and American steps to limit exports of Western technology — like chips that help power artificial intelligence systems. The talks ended for the day after nearly five hours on Monday, and were set to reconvene on Tuesday morning. 'Large and confident partner' Wendy Cutler, a former U.S. trade negotiator and now vice president at the Asia Society Policy Institute, said that Trump's team would face challenges from 'a large and confident partner that is more than willing to retaliate against U.S. interests.' Rollover of tariff rates 'should be the easy part,' she said, warning that Beijing has learned lessons since the first Trump administration and 'will not buy into a one-sided deal this time around.' 'Beijing is more prepared and will insist on movement on U.S. tech export controls at a minimum — a difficult ask for Washington,' she said, adding that many conversations will take place in the lead-up to any Xi-Trump summit. 'Success is far from guaranteed," Cutler said. 'There are numerous trip wires that can throw a wrench in this preparatory process.' The U.S.-China trade talks are the third this year, nearly four months after Trump upended global trade with his sweeping tariff proposals, including an import tax that shot up to 145% on Chinese goods. China retaliated with tariffs reaching 125% against U.S. goods, sending global financial markets into a temporary tailspin. Extending a 90-day pause The Stockholm meeting, following similar talks in Geneva and London, is set to extend a 90-day pause on those tariffs. During the hiatus, U.S. tariffs have been lowered to 30% on Chinese goods, and China set a 10% tariff on U.S. products. The Trump administration, which just completed a deal on tariffs with the European Union, wants to reduce a trade deficit of $904 billion overall last year, including a nearly $300 billion trade deficit with China. China's Commerce Ministry said last week that the 'consultations' would raise shared concerns through the principles of 'mutual respect, peaceful coexistence and win-win cooperation.' The talks with Beijing are part of a flurry of U.S. trade negotiations set off by Trump's arm-twisting 'Liberation Day' tariffs against dozens of countries. Since then, some talks have borne fruit in reaching deals. Others have not. Without an extension by Aug. 12, the tit-for-tat U.S.-China tariffs could snap back to the triple-digit levels seen before the 90-day pause reached in Geneva. Many other countries — including some developing ones that depend on exports to the U.S. — face a deadline of Friday, as the Trump administration has said that letters will go out beforehand with set rates. Critics say Trump's tariffs penalize Americans by forcing U.S. importers to shoulder the costs or pass them on to consumers through higher prices. Suggestion of stability On Friday, Trump told reporters that 'we have the confines of a deal with China' — just two days after Bessent told MSNBC that a 'status quo' had been reached between the two sides. While the Chinese side has offered little guidance about the specifics of its aims in Stockholm, Bessent has suggested that the situation has stabilized to the point that China and the U.S. can start looking toward longer-term balance between their economies. For years, since China vaulted into the global trading system about two decades ago, the United States has sought to press leaders in Beijing to encourage more consumption in China and wrest greater market access to foreign-made — including American — goods. Other sticking points in the relationship include overcapacity in China — by far the world's largest manufacturer — and concerns about whether Beijing is doing enough to control chemicals used to make fentanyl, analysts say. In Stockholm, the Chinese will likely demand the removal of a 20% fentanyl-related tariff that Trump imposed earlier this year, said Sun Yun, director of the China program at the Washington-based Stimson Center. Looking long-term Experts say long-term progress in the U.S.-China trade relationship will hinge on structural changes. Those include increased manufacturing in the United States, which is part of Trump's ambition. On the Chinese side, that could involve a reduction of excess Chinese production in many industries, including electric vehicles and steel, and increased Chinese consumer spending to ease imbalances in China's export-driven economy. Sean Stein, president of the U.S.-China Business Council, said the the talks in Stockholm offer an opportunity for the two governments to address structural reform issues. Businesses will watch for clues about a possible Trump-Xi summit, because any real deal will depend on a meeting between the pair, he said. A deal is possible because 'a lot of the things that the U.S. wants, the Chinese want as well,' Stein said. China, for example, is interested in buying U.S. soybeans, and aircraft and parts, and Chinese businesses are interested in investing in U.S. manufacturing — which would help meet Trump's goal of reindustrialization. Bessent has also said the Stockholm talks could address Chinese purchases of Russian and Iranian oil. ___ Didi Tang and Josh Boak in Washington, and Ken Moritsugu in Beijing, contributed to this report. Solve the daily Crossword
