America
Apple dodges crisis as Trump delays tariffs
US President Donald Trump stated that he would continue to impose tariffs on phones, computers, and popular consumer electronics products, considering the weekend’s exemption a procedural step in his broader effort to reshape US trade.
The delay, announced late Friday and exempting a range of popular electronic products from the 125% tariff applied to China and the 10% fixed rate applied worldwide, is temporary and part of a long-standing plan to apply a different and specific tax to the sector.
Shortly after finishing a round of golf on Sunday, Trump posted on social media, “NOBODY is getting ‘off the hook.’”
According to Trump, the exempted products are “just being moved into a different Tariff ‘bucket,’” and the administration will take “a look” at semiconductors and the entire electronic supply chain.
Speaking to reporters on Air Force One, Trump said that decisions would be made soon, with details on the tariff rate for semiconductors to be announced within the next week.
However, Trump also signaled that he is open to discussions with companies regarding the scope of the sectoral tariff on semiconductors and products based on them, such as iPhones and tablets.
“We’re going to discuss it, but we’re also going to talk to the companies. You have to have a certain flexibility. Nobody should be so rigid,” Trump said.
Friday’s pause appears to be a temporary victory for Apple and other manufacturers, particularly those relying on Chinese production.
According to a report in Bloomberg, Apple has managed to avert its biggest crisis since the pandemic, at least for now.
Trump’s 125% tariffs on goods manufactured in China threatened to disrupt the supply chain as severely as the Covid-19 pandemic did five years ago.
By exempting many popular consumer electronics on Friday night, the US President handed Apple a major win. These products include iPhones, iPads, Macs, Apple Watches, and AirTags.
A new and lower sectoral tariff may also be applied to goods containing semiconductors, but a 20% tariff is still applied to electronic products shipped from China.
Until Trump reinstates tariffs on electronic products, the surprise exemption is a win for Apple and the consumer electronics industry, which still largely depends on China for production.
Before the latest exemption, the iPhone maker had a plan: adjusting its supply chain to produce more US-bound iPhones in India, where they would be subject to much lower taxes.
Apple executives believed this would be a short-term solution to avoid Chinese tariffs and prevent high price increases.
Given that iPhone facilities in India are producing at a rate of more than 30 million iPhones per year, production in this country alone could meet a significant portion of American demand. Apple sells approximately 220 million to 230 million iPhones annually these days, with about one-third going to the US.
Implementing such a change smoothly would have been difficult, especially as the company is already approaching production of the iPhone 17, which is primarily to be manufactured in China. Fears had grown in Apple’s operations, finance, and marketing departments about the impact on the new phones’ launch in the fall.
According to Bloomberg, the company would have to accomplish the daunting task of moving more iPhone 17 production to India or elsewhere in just a few months.
In this case, it would probably have to raise prices (which is still possible) and fight with suppliers for better profit margins.
Another concern for Apple was: How would China retaliate if the company increased its production outside of China even faster?
Apple derives approximately 17% of its revenue from this country and operates dozens of stores, making it an outlier among US-based companies.
According to Morgan Stanley estimates, the iPhone is Apple’s biggest money-maker, and approximately 87% of these products are manufactured in China. About four out of every five iPads and 60% of Macs are also produced in this country.
Together, these products account for approximately 75% of Apple’s annual revenue. Yet, the company now produces almost all of its Apple Watches and AirPods in Vietnam. Some iPads and Macs are also produced in this country, and Mac production is expanding in Malaysia and Thailand.
According to Morgan Stanley estimates, the company makes approximately 38% of its iPad sales and about half of its Mac, Apple Watch, and AirPods revenue in the US.
It is unlikely that Apple will completely decouple from China, which has been its manufacturing hub for decades. Even if Trump forced Apple to manufacture iPhones in the US, the lack of domestic engineering and manufacturing capabilities could make this nearly impossible in the short term.
On the other hand, according to US Commerce Secretary Howard Lutnick, smartphones and other electronic devices that won exemptions will be part of the new tax applied to semiconductors.
Speaking on ABC’s “This Week” on Sunday, Lutnick signaled that the tariff delay was temporary and reiterated Trump’s long-standing plan to apply a different, specific tax to the sector.
Since the announcement of the tariff wave on April 2, Apple and other tech companies’ lobbyists have been pressing the White House for exemptions.
But discussions have become more urgent in recent days after a series of retaliations between Washington and Beijing led to a 145% tax on imports from China.
The potential impact has become even more acute after Trump halted higher tariffs on other countries. This meant an advantage for Apple’s competitor, Samsung Electronics, which produces its phones outside of China.
Apple and other companies have emphasized to the Trump administration that while they are willing to increase their investments in the US, there is little benefit to moving final assembly to this country.
Instead, they argue that the US should focus on bringing back higher-value jobs and encouraging investment in areas such as semiconductor manufacturing.
America
Pentagon and Justice Department form joint task force to combat media leaks
US Secretary of Defense Pete Hegseth announced on Monday that the Department of Defense and the Department of Justice have established a joint task force as part of efforts to prevent the unauthorized disclosure of sensitive information to the public.
Hegseth stated that the Office of the General Counsel (OGC) of the Department of Defense will have the authority to request and receive all information, support, and records across the Pentagon related to media leak investigations.
The Defense Secretary noted that all departments and personnel within the ministry will prioritize these requests. He added that a complete and comprehensive response to any instruction issued by the OGC under this authority must be provided within two days of the submission of the request.
“Leaked information risks lives. These new tools and processes will greatly assist us in protecting our collective strength. Our nation’s security cannot be a bargaining chip for those chasing instant headlines,” Hegseth said in an approximately two-and-a-half-minute video message published on the social media platform X.
Hegseth also stated, “Access to classified and confidential information is a sacred trust, and those who betray this trust will face the full force of the law.”
The announcement of the task force came a few days after the Department of Justice issued subpoenas to four New York Times reporters. The journalists, summoned to testify before a federal grand jury, had reported on security concerns regarding President Donald Trump’s flight to Türkiye for a NATO summit on an aircraft donated by Qatar.
The subpoenas drew sharp criticism from The New York Times and press freedom advocates. Opponents argue that the government is attempting to intimidate news organizations.
“Our journalists report the facts and defend the American public’s right to know how their government operates and how taxpayer dollars are spent,” New York Times attorney David McCraw said in a statement. “This brazen action is nothing less than an attempt to deter journalists from doing their jobs, thereby preventing the public from learning what is happening in the country.”
Hegseth has been taking steps to prevent leaks to the press since the beginning of his tenure at the Pentagon. Last year, the department launched investigations into personnel alleged to have leaked classified information to the media and threatened to administer polygraph tests.
Leak allegations were also directed at some of Hegseth’s advisers last year. Former senior adviser Dan Caldwell and former deputy chief of staff Darin Selnick are among those individuals. Caldwell, Selnick, and Colin Carroll, the former chief of staff to Deputy Secretary of Defense Stephen A. Feinberg, were first suspended and subsequently dismissed from their positions and removed from the Pentagon as part of the internal leak investigation.
A government official, speaking to The Hill in mid-March, stated there was no evidence that Caldwell, who began working at the Office of the Director of National Intelligence (ODNI) earlier this year, had leaked information from the Pentagon.
Defense Secretary Hegseth has previously been the target of criticism himself for allegedly sharing sensitive information. Last year, Hegseth discussed planned US strikes against the Houthis in Yemen in a Signal group chat to which an editor of The Atlantic magazine had been mistakenly added. A report published in December by the Pentagon’s Office of the Inspector General determined that Hegseth had compromised military security and violated department policy by using the Signal application on his personal mobile phone.
“It is highly ironic that Hegseth himself shared sensitive national defense information with his wife over Signal last year and faced no consequences, yet now speaks of the need to protect this information,” said former Pentagon spokesperson John Ullyot. “In 2012, CIA Director David Petraeus resigned from his post for a similar situation involving his girlfriend, and was sentenced in federal court to two years of probation and a $10,000 fine.”
Ullyot, who also served as the spokesperson for the National Security Council during Trump’s first term, told The Hill on Monday: “The President deserves better from his national security leaders. Hegseth should start holding himself accountable before holding others accountable.”
Reporters have been largely blocked from entering the Pentagon after Hegseth revoked access to most of the facility. Pentagon correspondents returned their press credentials in October, refusing to sign a new media policy that required a commitment not to solicit unauthorized materials.
Hegseth and his supporters argue that the policy will protect national security by preventing the leak of classified information. Press freedom groups and critics, conversely, characterize the practice as a violation of the constitutional rights of journalists.
Most recently, the department further restricted press access by declaring the Pentagon building a classified space and banning journalists from entering.
Offering historical references in his statement on Monday, Hegseth said, “Leaking sensitive national defense information and secrets is a betrayal of the men and women who wear the uniform of our country. This is a principle as old as the history of warfare, reaching back to the founding of our republic in the United States. George Washington himself combated leaks, insider threats, and espionage.”
America
SpaceX shares fall 40% from peak to approach IPO floor as regulatory scrutiny weighs
Shares of the American aerospace company SpaceX fell to as low as $136.78 at the trough of the trading session on Monday, July 13, representing a 5.87% decline compared to the close of trading on July 10. According to data from the US-based NASDAQ exchange, this retreat marks a depreciation of approximately 40% from the company’s historic peak of $225.64, which was recorded on June 16. With this latest decline, the company’s shares have approached their initial public offering (IPO) price threshold of $135.
As of 21:25 Moscow time on the trading day in question, the shares continued to trade at $137.4, down 5.4%.
The downward trend in the shares was driven by reports that the US Federal Aviation Administration (FAA) had concluded its investigation into the emergencies and malfunctions during the May 22 launch of Starship, the largest and most powerful rocket model developed by SpaceX.
According to CNBC, the agency reviewed and approved the findings and corrective measures submitted by the company following its internal investigation into the incident.
The Starship project, a massive, reusable rocket designed to carry crew and cargo to the Moon and Mars and to perform other space missions, is considered one of the most critical elements of Elon Musk’s space program.
In a statement issued by the FAA, it was noted that following the approved corrective actions, SpaceX is permitted to begin preparations for the Starship Flight 13 flight, provided that the company meets all safety requirements and licensing conditions.
The FAA had previously issued a statement regarding the malfunction during the launch attempt at the end of May. The statement noted: “The anomaly occurred during the Super Heavy booster’s flip maneuver over the Gulf of America.”
The region referred to as the Gulf of America by US authorities in official correspondence is commonly known as the Gulf of Mexico.
According to official data, the booster parts fell within the boundaries of pre-established hazard areas. Six flights were delayed and five aircraft remained in holding patterns for a period due to the incident, though no changes were made to flight routes.
SpaceX shares, which began trading on the NASDAQ exchange at the beginning of June, gained 25% at the opening. As part of the initial public offering, the company offered 555.6 million shares for sale at a fixed price of $135 per share.
The SpaceX IPO was recorded as the largest initial public offering in financial history. The company initially raised $75 billion, and the total funds raised reached $85.7 billion after consortium members exercised their over-allotment option to purchase an additional 83.3 million shares.
In a statement to his employees, company founder Elon Musk stated that going public was necessary to generate capital during a phase of rapid growth. It was announced that the proceeds would be used to complete the development process of the Starship rockets, bring them to commercial readiness, and expand the Starlink satellite network.
The post-IPO surge in SpaceX shares had briefly made Elon Musk the world’s first trillionaire. Bloomberg had estimated Musk’s wealth at $1.05 trillion, while Forbes valued it at $1.1 trillion.
However, with the decline in share prices and the company’s market value that began in late June, Musk lost his trillionaire title after holding it for 12 days.
According to an analysis by Bloomberg, the decline was driven by SpaceX’s preparations to issue at least $20 billion in bonds to finance artificial intelligence projects, alongside the signing of a multi-billion-dollar agreement with AI startup Reflection AI to provide computing resources.
Assessments by S&P Global projected that SpaceX will continue to incur expenditures without generating revenue until at least 2029.
America
Trump notifies Congress of renewed war with Iran, resetting War Powers clock
US President Donald Trump has formally notified lawmakers that the country is back at war with Iran, according to an official notification sent to Congress over the weekend.
In the letter dated July 10 and obtained by Politico, Trump stated that airstrikes beginning on July 7 constituted “military actions consistent with my responsibility to protect Americans and US interests both at home and abroad.”
The notification triggers a new 60-day statutory window under which the US administration can utilize military force in the region without prior congressional approval.
The conflict, which has repeatedly paused and restarted over control of the Strait of Hormuz—a crucial chokepoint for global energy supplies—has become a persistent challenge for the Trump administration.
Trump has expressed frustration over the failure to secure a peace agreement with Iran, while congressional Republicans remain concerned about being blamed for rising fuel prices ahead of the upcoming midterm elections.
On Monday, Trump intensified military pressure on Tehran, declaring that the US would reimpose a blockade on the region, seize control of the Strait of Hormuz, and levy fees on transiting vessels.
Ceasefire process officially ends
The notification to Congress follows Trump’s announcement that a two-month-old ceasefire with Iran has officially ended.
The ceasefire, originally declared in April, had been fragile from the outset due to reciprocal attacks by both nations. Despite the friction, the Trump administration had previously maintained that a full-scale war had not resumed.
Officials from US Central Command (CENTCOM) announced that US forces have struck more than 300 Iranian military targets over the past week in retaliation for Tehran’s hostile actions in the Strait of Hormuz.
On Monday, CENTCOM released a statement confirming that US forces had conducted additional airstrikes against Iran “at the direction of the Commander-in-Chief.”
“These strikes will continue to impose heavy costs on Iranian forces, degrading their capability to attack innocent civilians and commercial shipping in the Strait of Hormuz,” the statement read.
War powers debate
Trump had previously notified Congress that the war, which began in February, had “ended” in May, thereby resetting the 60-day statutory clock that would otherwise require the cessation of military operations without congressional authorization.
With the April ceasefire intended to run indefinitely, the White House argued that the timeline mandated by the War Powers Act had been paused.
However, anti-war lawmakers in Congress challenged this interpretation. They argued that the government was misapplying the law, noting that even when major combat operations subsided, the US Navy maintained its blockade to exert pressure on Tehran.
The new notification complicates ongoing efforts within Congress to limit military action against Iran. Last month, the Senate passed a symbolic resolution calling for an end to the hostilities, signaling waning support for Trump’s military campaign against Tehran.
The resolution, which passed 50 to 48 after four Republican senators voted with Democrats, sought to make congressional approval a requirement for continued military operations.
A similar measure had previously passed the House of Representatives by a vote of 215 to 208, also drawing the support of four Republicans.
The legislative impact of these measures remains limited, however, as joint resolutions are not sent to the president for signature, and any bill seeking to restrict executive war powers would face a certain White House veto.
In his letter to Congress, Trump emphasized that US military forces remain deployed to counter threats against allies.
“United States Armed Forces remain postured to take additional steps, as necessary and appropriate, to address further threats or attacks against the United States, its allies, or its partners, and to ensure that the Government of the Islamic Republic of Iran ceases to pose a threat to the United States and its partners,” Trump wrote.
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