
U.S. allies get a Signal chat's worth of red flags
This is thanks to the hard-to-credit decision of U.S. President Donald Trump's top security officials to chat about an imminent military strike against targets in Yemen on a publicly available texting app — and to include a journalist by mistake. For a continent already worried that Trump may not honor any NATO Article 5 request or would be willing to shake down allies by withholding the spare parts and software upgrades needed to keep their F-35 Joint Strike Fighters flying, the content of this unintentionally leaked discussion has provided confirmation.
In the short term, that may have few real consequences. Although insulting, the administration's assessment of Europe's weak military capabilities is correct. The resulting dependency on U.S. military might has made European states highly vulnerable to extortion by their now-former ally. Longer term, though, the drive to move away from buying U.S. arms and build European will be overwhelming. Charles de Gaulle, the postwar French president who in 1966 pulled France out of the North Atlantic Treaty Organization's integrated command structures to avoid just such dependencies, has been vindicated from his grave.
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Japan Today
3 hours ago
- Japan Today
Tesla sales plunge again as anti-Musk boycott shows staying power and rivals pounce on the weakness
FILE - President Donald Trump and Tesla CEO Elon Musk speak to reporters as they sit in a red Model S Tesla vehicle on the South Lawn of the White House, March 11, 2025, in Washington. (Pool via AP, File) By BERNARD CONDON Sales of Tesla electric cars fell sharply in the last three months as boycotts over Elon Musk's political views continue to keep buyers away, a significant development given expectations that anger with the company's billionaire CEO would have faded by now. The 13% sales plunge over a year earlier suggests Musk's embrace of U.S. President Donald Trump and far-right politicians in Europe has had a deep and enduring impact on Tesla's brand appeal. The new figures reported by Tesla on Wednesday also show rival electric-vehicle makers have wasted no time pouncing on the company's weakness to steal market share, and signals Tesla's quarterly earnings report later this month could also disappoint. Sales fell to 384,122 in April through June, down from 443,956 in the same three months last year. During the latest period, Musk formally left the Trump administration as a cost-cutting czar, and hopes rose that sales would recover. Musk himself recently said that Tesla was in the midst of a 'major rebound' in sales. Still, some parts of the report were encouraging. Sales of the Models 3 and Y totaled 373,728, above the estimate of 356,000 from Wall Street analysts. Tesla shares rose 4.6% in afternoon trading. 'The numbers weren't as bad as thought with all the analyst forecast cuts we saw over the past week,' said Morningstar's Seth Goldstein, though he added the report overall showed the company faces big challenges. 'The current product lineup is at market saturation and Tesla will need the new affordable vehicle to grow deliveries.' Musk has promised a cheaper EV model would be coming this year that would boost sales. It's not clear yet if Musk's latest feud with Trump will help lure back buyers who have been angry at the billionaire's political positions. After Musk once again took to social media to criticize Trump's budget bill, the president threatened Tuesday to use the power of his office to hurt his companies, including Tesla, pushing its stock down more than 5%. The new figures come as Tesla is focusing less on new models and more on robots, self-driving technology and robotaxis ferrying passengers around without anyone behind the wheel. Tesla is in the midst of a test run of robotaxis in Austin, Texas, that seems to have gone smoothly for the most part. But it also has drawn the scrutiny of federal car safety regulators because of a few mishaps, including one case in which a Tesla cab was shown on a video heading down an opposing lane. The competition from rival EV makers is especially fierce in Europe where China's BYD has taken a bite out of its market share. Tesla sales fell 28% in May in 30 European countries even as the overall market for electric vehicles expanded sharply, according to the European Automobile Manufacturers' Association. Musk has acknowledged that his work as head of the Department of Government Efficiency and his embrace of European far-right candidates have hurt the company. But he attributed much of the sales plunge to customers holding off while they waited for new versions of Tesla's best selling Model Y. Tesla reports second quarter financial results on July 23. In the first quarter, net income fell 71%. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.


Japan Today
3 hours ago
- Japan Today
Hiroshima mayor says Trump remarks out of touch with A-bomb reality
The mayor of Hiroshima said Wednesday that U.S. President Donald Trump "does not understand the reality of the atomic bombings" of Hiroshima and Nagasaki after he equated the devastating 1945 attacks with recent U.S. strikes on Iranian nuclear sites. Hiroshima Mayor Kazumi Matsui urged the president to visit the city to improve his understanding, saying he "does not seem to understand that once used, atomic bombs kill friend and foe alike and threaten humanity." The United States in late June struck three sites in Iran with the aim of destroying the nation's nuclear weapons infrastructure, widening a conflict between Israel and Iran. Trump said last Wednesday during a visit to the Netherlands for a NATO summit, "I don't want to use an example of Hiroshima, I don't want to use an example of Nagasaki, but that was essentially the same thing. That ended that war." The remark provoked an angry outcry from survivors in Japan who accused him of trying to justify what was the world's first use of nuclear weapons against a civilian population. Matsui said he will invite Trump, via the U.S. Embassy in Japan, to visit the Hiroshima Peace Memorial Museum documenting the devastation caused by the U.S. atomic bombing and to listen to the survivors' stories. Atomic bombs were dropped on Hiroshima and Nagasaki in the final days of World War II in August 1945, killing an estimated 214,000 people by the end of that year and leaving numerous survivors to grapple with long-term physical and mental health challenges. © KYODO


Japan Today
3 hours ago
- Japan Today
Analysis shows Trump's tariffs would cost U.S. employers $82.3 billion
FILE - President Donald Trump speaks to reporters in the Oval Office of the White House, May 23, 2025, in Washington. (AP Photo/Evan Vucci, File) By JOSH BOAK An analysis finds a critical group of U.S. employers would face a direct cost of $82.3 billion from President Donald Trump's current tariff plans, a sum that could potentially be managed through price hikes, layoffs, hiring freezes or lower profit margins. The analysis by the JPMorganChase Institute is among the first to measure the direct costs created by the import taxes on businesses with $10 million to $1 billion in annual revenue, a category including roughly a third of private-sector U.S. workers. These companies are more dependent than other businesses on imports from China, India and Thailand — and the retail and wholesale sectors would be especially vulnerable to the import taxes being levied by the Republican president. The findings show clear trade-offs from Trump's import taxes, contradicting his claims foreign manufacturers would absorb the costs of the tariffs instead of U.S. companies that rely on imports. While the tariffs launched under Trump have yet to boost overall inflation, large companies such as Amazon, Costco, Walmart and Williams-Sonoma delayed the potential reckoning by building up their inventories before the taxes could be imposed. The analysis comes just ahead of the July 9 deadline by Trump to formally set the tariff rates on goods from dozens of countries. Trump imposed that deadline after the financial markets panicked in response to his April tariff announcements, prompting him to schedule a 90-day negotiating period when most imports faced a 10% baseline tariff. China, Mexico and Canada face higher rates, and there are separate 50% tariffs on steel and aluminum. Had the initial April 2 tariffs stayed in place, the companies in the JPMorganChase Institute analysis would've faced additional direct costs of $187.6 billion. Under the current rates, the $82.3 billion would be equivalent on average to $2,080 per employee, or 3.1% of the average annual payroll. Those averages include firms that don't import goods and those that do. Asked Tuesday how trade talks are faring, Trump said simply: 'Everything's going well.' The president has indicated he'll set tariff rates given the logistical challenge of negotiating with so many nations. As the 90-day period comes to a close, only the United Kingdom has signed a trade framework with the Trump administration. Trump announced Wednesday he'd reached a deal with Vietnam, while India has signaled it's close to agreeing on a trade framework. Trump said on his social media site Vietnam will pay the U.S. a 20% tariff on all goods sent 'into our Territory' and a 40% tariff on any transshipping, which usually means exports that come from China but pass through Vietnam to dodge tariffs on Chinese goods. In return, Vietnam will grant the U.S. 'TOTAL ACCESS' to its market for trade, Trump said, meaning 'we will be able to sell our product into Vietnam at ZERO Tariff.' He added he thinks SUVs 'will be a wonderful addition to the various product lines within Vietnam.' There's a growing body of evidence suggesting more inflation could surface. The investment bank Goldman Sachs said in a report it expects companies to pass 60% of their tariff costs onto consumers. The Atlanta Federal Reserve has used its survey of businesses' inflation expectations to say companies could on average pass along roughly half their costs from a 10% tariff or a 25% tariff without reducing consumer demand. The JPMorganChase Institute findings suggest the tariffs could cause some domestic manufacturers to strengthen their roles as suppliers of goods. But it noted companies need to plan for a range of possible outcomes and wholesalers and retailers already operate on such low profit margins they might need to spread the tariffs' costs to their customers. The outlook for tariffs remains highly uncertain. Trump had stopped negotiations with Canada, only to restart them after the country dropped its plan to tax digital services. He similarly on Monday threatened more tariffs on Japan unless it buys more rice from the U.S. Treasury Secretary Scott Bessent said on Fox News Channel's 'Fox & Friends' on Tuesday the concessions from the trade talks have impressed career officials at the Office of the U.S. Trade Representative and other agencies. The treasury secretary said the Trump administration plans to discuss the contours of trade deals next week, prioritizing the tax cuts package passed on Tuesday by the Republican majority in the Senate. Trump has set a Friday deadline for passage of the multitrillion-dollar package, the costs of which the president hopes to offset with tariff revenues. © Copyright 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.