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Trump disrupts global economic order even though US is dominant

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US President Donald Trump arrives to speak during an event to announce new tariffs in the Rose Garden of the White House on April 2 in Washington. (AP)

WASHINGTON, April 9, (AP): By declaring a trade war on the rest of the world, President Donald Trump has panicked global financial markets, raised the risk of a recession and broken the political and economic alliances that made much of the world stable for business after World War II. Trump’s latest round of tariffs went into full effect at midnight Wednesday, with higher import tax rates on dozens of countries and territories taking hold.

Economists are puzzled to see Trump trying to overhaul the existing economic order and doing it so soon after inheriting the strongest economy in the world. Many of the trading partners he accuses of ripping off US businesses and workers were already floundering. “There is a deep irony in Trump claiming unfair treatment of the American economy at a time when it was growing robustly while every other major economy had stalled or was losing growth momentum,” said Eswar Prasad, professor of trade policy at Cornell University.

“In an even greater irony, the Trump tariffs are likely to end America’s remarkable run of success and crash the economy, job growth and financial markets.’’ Trump and his trade advisers insist that the rules governing global commerce put the United States at a distinct disadvantage. But mainstream economists – whose views Trump and his advisers disdain – say the president has a warped idea of world trade, especially a preoccupation with trade deficits, which they say do nothing to impede growth.

The administration accuses other countries of erecting unfair trade barriers to keep out American exports and using underhanded tactics to promote their own. In Trump’s telling, his tariffs are a long-overdue reckoning: The US is the victim of an economic mugging by Europe, China, Mexico, Japan and even Canada. It’s true that some countries charge higher taxes on imports than the United States does. Some manipulate their currencies lower to ensure that their goods are price-competitive in international markets. Some governments lavish their industries with subsidies to give them an edge.

However, the United States is still the second-largest exporter in the world, after China. The US exported $3.1 trillion of goods and services in 2023, far ahead of third-place Germany at $2 trillion. The fear that Trump’s remedies are deadlier than the maladies he’s trying to cure has sent investors fleeing American stocks. Since Trump announced sweeping import taxes on April 2, the S&P 500 has cratered 12%.  

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Jazeera Airways marks historic milestone with first flights to Syria

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KUWAIT CITY, July 2: Jazeera Airways, Kuwait’s leading low-cost carrier, today marked a historic milestone with the resumption of its direct flights between Kuwait and Damascus, restoring air connectivity between the two nations for the first time in over 13 years. The first two flights departed from Jazeera Terminal 5 this morning, with a full passenger load, some of whom were back to their home country after several years. For many of the over 200,000 Syrians living in Kuwait – the second-largest Arab community in the country – this moment represents more than just a flight; it is a long-overdue reconnection with their roots, loved ones, and memories. Jazeera Airways had previously operated services to Damascus, Aleppo, and Deir EzZoor.

The return to Damascus marks the beginning of renewed engagement with Syria, as the airline responds to strong and growing demand from the community. The route launches with one daily flight, with plans to increase to twice-daily frequencies by the end of the summer travel season. The airline is also exploring future expansions to other Syrian cities in line with market recovery.

Barathan Pasupathi, Chief Executive Officer of Jazeera Airways, stated:“This is more than just the reopening of a route – it is the restoration of a vital bridge for people. We are proud to re-establish this important connection for the Syrian community in Kuwait and beyond. Many of the passengers on our inaugural flight were returning to Syria for the first time in years, and the emotions witnessed at the departure gate were a powerful reminder of how meaningful this service is. We extend our sincere thanks to the authorities in both Kuwait and Syria for their invaluable support in making this relaunch possible.” With the launch of flights to Damascus, Jazeera Airways continues to play a vital role in enhancing regional connectivity and supporting the aspirations of communities across its growing network. To book flights, travellers can visit www.jazeeraairways.com or Jazeera’s mobile application.

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Kuwait Hosts GCC Energy Workshop

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Participants pose for a group photo during the Gulf Cooperation Council workshop.

KUWAIT CITY, July 2: A high-level Gulf Cooperation Council (GCC) workshop on protecting the infrastructure of the oil and gas sector and crisis management kicked off Tuesday, at the Ahmad Al-Jaber Oil and Gas Exhibition in Ahmadi, Kuwait. The three-day event is jointly organized by the United Nations Office of Counterterrorism, Kuwait Oil Company (KOC), and the GCC Emergency Management Center. During the workshop, GCC Secretary General Jassem Al-Budaiwi said in a recorded speech that GCC energy supplies represent a fundamental pillar of global supply, concurrently noting that the Gulf states are working to implement ambitious development plans, which in turn would lead to an increase in local energy demand. The GCC chief said that the developing world is witnessing rapid progress and a growing demand for energy, noting that the Asia-Pacific region is expected to account for 50 percent of the global GDP by 2040, making it one of the fastest-growing regions in the world. GCC faces three main challenges; adapting to the global energy transition, meeting increasing domestic demand, and ensuring the security and stability of the global energy market, he pointed out.

The security and safety of energy assets in the Gulf region are fundamental to the global market, as ongoing developments and conflicts in the region indicated that any future events in the Middle East could directly impact three out of the world’s seven strategic maritime chokepoints: the Strait of Hormuz, the Bab al-Mandab Strait, and the Suez Canal, Al-Budaiwi stressed. The current conflicts not only threaten global supply chains, Al-Budaiwi emphasized, but also affect national and cross-border development projects such as connectivity initiatives between the European Union and the Middle East, which rely on safe passage through the Levant and the Mediterranean Sea. In a similar recorded statement, United Nations Undersecretary General for Counter-Terrorism Vladimir Voronkov emphasized that the meeting takes place amid a period of escalating global security threats. He highlighted that UN General Assembly Resolution 77/298 unequivocally condemns terrorist attacks targeting energy infrastructure and underscores the need for strengthened cooperation among governments, international organizations, and the private sector.

Voronkov further noted that the Security Council has introduced a technical guide for the protection of critical energy infrastructure from terrorist threats, developed with the support of the Russia and Turkmenistan. He underscored that the guide is the product of in-depth research, broad international consultations, and the collective expertise of the United Nations Global Counter-Terrorism Coordination Compact, in collaboration with the Working Group on Emerging Threats and Infrastructure Protection.

In her remarks at the workshop, UN Resident Coordinator in Kuwait Ghada Al-Tahir emphasized that this meeting offers a key opportunity to promote best practices, share expertise, and highlight the Gulf countries’ progress in building comprehensive security frameworks regionally and nationally. Al-Tahir highlighted that, for decades, the Gulf states have served as a cornerstone of global energy security and sustainable development, being home to vast reserves of oil and natural gas and playing a vital role in ensuring stable energy supplies worldwide. She reaffirmed the UN’s role, especially the Kuwait office, in supporting shared security goals, expressing confidence that the meeting would yield practical, impactful results.

Dr. Rashid Al-Marri, Head of the GCC Emergency Management Center, emphasized that the meeting offers a vital platform to boost cooperation to protect oil and gas infrastructure; key pillars of Gulf economies and global energy stability. He highlighted the need for greater readiness amid growing threats, including terrorism, cyberattacks, and geopolitical tensions. He noted the center’s role in coordinating crisis response among member states, developing a regional emergency plan covering 13 types of risks, and working closely with the UN Office of Counterterrorism on training and capacity-building. On his part, KOC’s Assistant CEO, Musaed Al-Rasheed, stressed the importance of strengthening regional and international partnerships to secure maritime routes and energy supplies, especially as the industry faces complex geopolitical, industrial, and natural threats.(KUNA)

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Mexican banks face cascading consequences following US sanctions

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Mexican banks face cascading consequences following US sanctions

The US Treasury Department building is seen on March 13, 2025, in Washington. (AP)

MEXICO CITY, July 2, (AP): Three Mexican financial institutions sanctioned by the Trump administration last week have felt a cascade of economic consequences following the allegations that they helped launder millions of dollars for drug cartels. The US Treasury Department announced that it was blocking transactions between US banks and Mexican branches of CIBanco and Intercam Banco, as well as the brokering firm Vector Casa de Bolsa.

All three have fiercely rejected the claims. Mexico’s President Claudia Sheinbaum accused US officials of providing no evidence to back their allegations, though the sanctions announcement made specific accusations on how money was transferred through the companies. It detailed how “mules” moved money through accounts in the US, as well as transactions carried out with Chinese companies that US officials said provided materials to produce fentanyl.

Mexico’s banking authority has announced that it is temporarily taking over management of CIBanco and Intercam Banco to protect creditors. Sheinbaum said Tuesday that the Mexican government is doing everything within its power to ensure that creditors aren’t affected, and said they were well “within their right” to pull their money from the banks.

The US Treasury Department said that the sanctions would go into effect 21 days after the announcement. Fitch Ratings has downgraded the three institutions and other affiliates, citing “anti-money laundering concerns” and saying the drop “reflects the imminent negative impact” that the sanctions could have.

“The new ratings reflect the significantly more vulnerable credit profile of these entities in response to the aforementioned warnings, given the potential impact on their ability to meet their financial obligations,” the credit rating agency wrote in a statement. On Monday, CIBanco announced that Visa Inc. had announced to them with little warning that it had “unilaterally decided to disconnect its platform for all international transactions” through CIBanco.

The bank accused Visa of not complying with the 21-day grace period laid out by the sanctions. “We would like to reiterate that your funds are safe and can be reimbursed through our branch network,” the bank wrote. “We reiterate to our customers that this was a decision beyond CIBanco’s control.”  

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