Trump says US may have less debt than thought because of fraud

February 10, 2025 | 5:29 pm

US PRESIDENT Donald Trump on Sunday said his administration was examining US Treasury debt payments for possible fraud and suggested that the country’s $36-trillion debt load might not be that high.

Speaking to reporters aboard Air Force One, Mr. Trump said administration officials who have been combing through payment records in an effort to identify wasteful spending have turned their attention to the debt payments that play a central role in the global financial system.

“We’re even looking at Treasuries,” Mr. Trump said. “There could be a problem — you’ve been reading about that, with Treasuries and that could be an interesting problem.”

He added: “It could be that a lot of those things don’t count. In other words, that some of that stuff that we’re finding is very fraudulent, therefore maybe we have less debt than we thought.”

It was not clear whether Mr. Trump was referring to debt service or other government payments made by the Treasury Department.

The United States currently has $36.2-trillion public debt outstanding, according to the US Treasury, equal to more than 120% of Gross Domestic Product. Because the US government spends more money than it collects, Mr. Trump and his fellow Republicans who control Congress will have to authorize more borrowing sometime this year to avert a debt default that could have catastrophic consequences.

Mr. Trump’s proposed tax cuts would add trillions of dollars more in debt, independent budget watchdogs say.

Mr. Trump has tasked Elon Musk with an ambitious overhaul of the federal government, sparking street protests in Washington and accusations that the Trump administration is breaking the law.

Mr. Musk’s “Department of Government Efficiency” has disrupted operations at several federal agencies and has raised privacy and security concerns while accessing sensitive payroll and spending records.

A federal judge temporarily blocked Mr. Musk’s team on Saturday from accessing government systems used to process trillions of dollars in payments, citing a risk that sensitive information could be improperly disclosed.

After the ruling, Mr. Musk said a do-not-pay list of entities that should not receive government payments should be updated at least weekly, if not daily.

Treasury Secretary Scott Bessent, a Trump appointee, said last week that Mr. Musk’s team had “read only” access to the payment system, which would not give them power to make changes.

Mr. Trump’s attempt to freeze wide swaths of domestic aid has been blocked in court, but project managers across the country say billions of dollars nevertheless have been withheld for clean energy and transportation projects.

Some health clinics say they have been forced to lay off staff and shutter facilities because they have not been able to access federal funding. — Reuters

Australia seeks exemption from US steel and aluminum tariffs

February 10, 2025 | 5:29 pm

SYDNEY — Australia’s Trade minister said its steel and aluminum exports to the US create “good paying American jobs” and are key to shared defense interests, as Canberra presses Washington for an exemption to President Donald Trump’s planned tariffs.

Mr. Trump said on Sunday he will introduce new 25% tariffs on all steel and aluminum imports into the US, on top of existing metals duties, in another major escalation of his trade policy overhaul.

Trade Minister Don Farrell said on Monday that Australia, a key US security ally in the Indo-Pacific, was making the case for “free and fair trade, including access into the US market for Australian steel and aluminum” in meetings with the Trump administration.

“Australian steel and aluminum is creating thousands of good paying American jobs, and are key for our shared defense interests,” he said in a statement.

Mr. Farrell is yet to meet with his US counterpart who has not been confirmed in the role, but Australian officials have been making representations on aluminum and steel exports for several months, seeking to secure a similar exemption from tariffs it won during the previous Trump presidency in 2018.

Prime Minister Anthony Albanese told national parliament on Monday he was scheduled to talk with Mr. Trump and would raise the matter.

“We will continue to make the case to the United States for Australia to be given an exemption to any steel and aluminum tariffs,” he said in parliament.

Defense Minister Richard Marles met his US counterpart Pete Hegseth in Washington on Friday, with Australia making its first $500-million payment to boost production in the US submarine industry under the AUKUS defense project that will see Australia buy several US nuclear-powered submarines and also build submarines.

Australian processed steel was purchased by the largest US military shipbuilder as AUKUS partners Australia, Britain and the US seek to integrate defense supply chains, the Australian government said last year.

Shares in Australian-listed BlueScope Steel rose nearly 2% on expectations its US business would gain from the tariffs. It operates the North Star Mill in Ohio and employs around 4,000 people in the United States. — Reuters

Chinese marriages slid by a fifth in 2024, further fanning birthrate concerns

February 10, 2025 | 5:28 pm

HONG KONG — Marriages in China dropped by a fifth last year, the biggest drop on record, despite manifold efforts by authorities to encourage young couples to wed and have children to boost the country’s declining population.

More than 6.1 million couples registered for marriage last year, down from 7.68 million a year earlier, figures from the Ministry of Civil Affairs showed.

Declining interest in getting married and starting a family has long been blamed on the high cost of childcare and education in China. On top of that, sputtering economic growth over the past few years has made it difficult for university graduates to find work and those that do have jobs feel insecure about their long-term prospects.

But for Chinese authorities, boosting interest in marriage and baby-making is a pressing concern.

China has the second-biggest population in the world at 1.4 billion but it is aging quickly.

The birth rate fell for decades due to China’s 1980-2015 one-child policy and rapid urbanization. And in the coming decade, roughly 300 million Chinese — the equivalent of almost the entire US population — are expected to enter retirement.

Measures taken last year by authorities to tackle the problem included urging China’s colleges and universities to provide “love education” to emphasize positive views on marriage, love, fertility and family.

And in November, China’s state council or cabinet, told local governments to direct resources towards fixing China’s population crisis and spread respect for childbearing and marriages “at the right age.”

Last year saw a slight rise in births after a lull due to the pandemic and because 2024 was the Chinese zodiac year of the dragon — with children born that year considered likely to be ambitious and have great fortune.

But even with the increase in births, the country’s population fell for a third consecutive year.

The data also showed that more than 2.6 million couples filed for divorce last year, up 1.1% from 2023. — Reuters

Indonesia launches $183-million free health screening to prevent early deaths

February 10, 2025 | 5:27 pm

JAKARTA — Indonesia launched an annual free health screening on Monday, a 3-trillion rupiah ($183.54 million) initiative to prevent early deaths that the country’s Health ministry said was its biggest ever undertaking.

Under the program, all Indonesians will eventually be entitled to a free screening on their birthday, the ministry said. The screening, which is not mandatory, includes blood pressure, tests to determine the risk of heart problems or stroke, and eye tests, the ministry said.

The program is initially targeting under-sixes and adults aged 18 and over, Health Minister Budi Gunadi Sadikin told Reuters last week.

The leading causes of death in the world’s fourth most populous nation include stroke, heart disease, and tuberculosis, data from the World Health Organization show.

Mr. Budi said the 3-trillion rupiah allocation for the program was about 1 trillion less than originally planned after President Prabowo Subianto ordered budget cuts to help fund election promises, including giving free meals to school children.

At a health center in Jakarta on Monday, about 30 people had signed up for the screening on the first day.

Teacher Ramika Dewi Saragih said she underwent checks on her breasts, cervix, eyes, and more and was not apprehensive. “I was really looking forward to this,” the 33-year-old said, adding that more people should take up the opportunity.

A Health ministry spokesperson said the target for the checks this year was 100 million people.

Mr. Budi said the program was intended to promote preventive care as Indonesians tended to check for illnesses only when they already had them.

“Our culture is checking when we’re already sick … that cuts closest to the grave,” he said.

He said the program was the biggest the ministry had ever undertaken, surpassing COVID-19 vaccinations.

Mr. Budi added the screening, which is to be rolled out at more than 20,000 health centers and clinics, also includes mental health tests to determine signs of depression or anxiety.

Researchers at the University of Indonesia’s Economic and Social Research Institute warned the program could risk burdening the country’s already-strained local health centers, citing uneven distribution of drugs or doctors. — Reuters

Fake PWD IDs hurting restaurants’ bottom lines

February 10, 2025 | 2:54 pm

by Patricia B. Mirasol, Producer

The discounts given to fake PWD (people with disabilities) IDs do make a dent on the bottom lines of restaurants, according to business owners.

On February 3, the Restaurant Owners of the Philippines published a statement on how fake PWD IDs are crippling the industry.

“The PWD discount was created to support those who genuinely need it, but widespread abuse of fake PWD cards is now putting a serious strain on restaurants and other businesses,” it said.

“For restaurants, especially small and family-run ones, this isn’t just an inconvenience – it’s a financial hit that can mean the difference between survival and closure. When multiple fake PWD cards are used at a single table, the losses can be devastating. This isn’t just about lost revenue; it affects employees, food quality, and even menu prices for honest customers,” the statement continued.

Most restaurants’ profit margins fall between 3% and 6%, although the number can go up to 15%, noted the Unilever Food Solutions’ website.

“It is very bad especially for bakeries all over the Philippines – a majority of which are mostly micro or small businesses, and with thin profit margins too on basic foods like breads and pastries,” Wilson Lee Flores, owner of Kamuning Bakery Cafe, said.

The bakery’s staff still has to find ways to distinguish fake PWD IDs from authentic ones, Mr. Flores texted on February 5.

“I hope our government can find ways to purge or clean up the misuse and shameless abuse of PWD IDs by dishonest people,” he said.

Greenery Kitchen doesn’t mind giving out PWD and senior citizen (SC) discounts, said its co-owner Ivy A. Villamor.

Some of the restaurant’s PWD customers even hesitate to use their IDs when they order, she said in a Viber message.

“Sana magkaron po ng (I hope there would be) specific parameters/guidelines on how to clearly compute for the SC/PWD discounts for food establishments. Maraming (There are a lot of) gray areas leading to different interpretations,” she said in a separate message*.

“I hope the process of applying and registering as a PWD – from the barangay to national levels – would be made more effective, so late registrations and updates at government websites can be avoided,” she added in the vernacular. “This way, legitimate PWDs can be protected, and their rights won’t be abused by those posing to have disabilities.”

PWD Rights

A PWD advocate said that the fake IDs issue shouldn’t be used to “oppress or embarrass” legitimate PWDs.

“Restaurant owners and certain bus companies are now exploiting a flawed DoH [Department of Health] website to evade their obligation to provide discounts to PWDs,” said Paolo A. Capino, himself a PWD.

“No number of margins in their business can justify the intentional embarrassment restaurant owners are doing against an already marginalized sector,” Mr. Capino’s February 5 statement on Messenger read.

What do restaurant discounts have to do with the welfare of PWDs, asked Filomeno S. Sta. Ana III, coordinator of Action for Economic Reforms and a columnist at BusinessWorld.

“Only those who can afford going to restaurants, not the common folks, benefit from this,” he said in a February 5 Viber message.

“The government can provide direct subsidies to PWDs instead of having price and tax discounts, which can be abused resulting in significant revenue leakage,” he said.

“Have a strict and rigorous definition of who qualifies as PWDs,” added Mr. Sta. Ana. “The interpretation is too relaxed.”

For Ms. Villamor, it’s not just fake IDs but taxes plus overhead costs that also contribute to the vegan food business’ already thin margins.

“Ang hirap naman magtaas ng presyo basta basta, kasi pag nasaktan ang customers, di sila makakabibili, and then eventually masasaktan din yun business... (It’s hard to raise prices, because if customers feel the pinch, then they won’t buy, which eventually hurts the business),” she said.

There are 2,008,233 registered PWDs in the Philippines as of February 11, according to the National Council on Disability Affairs. – with contributions from Edg Adrian Eva and Almira Louise Martinez

Billionaire Trump says time’s up for lowly US penny

February 10, 2025 | 2:35 pm

WASHINGTON — U.S. Treasury Secretary Scott Bessent has been ordered to cease production of the one-cent coin known as the penny, President Donald Trump said in a posting on his Truth Social media account on Sunday.

“For far too long the United States has minted pennies which literally cost us more than 2 cents. This is so wasteful! I have instructed my Secretary of the US Treasury to stop producing new pennies,” Trump wrote.

“Let’s rip the waste out of our great nation’s budget, even if it’s a penny at a time,” he added.

The penny was first issued by the government in 1793. Since 1909, the profile of President Abraham Lincoln has adorned the obverse side of the coin that is made of zinc and copper.

A debate has been rumbling for years over whether the penny should be dropped from the line-up of American currency. “Let’s Drop Pennies, and Nickels Too While We’re At It,” argued a 2013 commentary by economist Henry Aaron writing for the left-leaning Brookings Institution publication.

“Life would be simpler without this monetary detritus,” he wrote.

Supporters of the penny have argued that it helps keep consumer prices lower and is a source of income to charities.

For many Americans, however, the coin has become a nuisance that ends up being discarded in drawers, ash trays and piggy banks.

If the penny were to be scrapped, one idea would be to simply make the last digit of all prices a zero. — Reuters

Francis Libiran designs for OUR HOME

February 10, 2025 | 12:00 pm

1-OL — Our Home proudly collaborates with renowned fashion designer Francis Libiran for his debut home collection. This remarkable partnership bridges the worlds of couture and interiors, offering a collection that reimagines celebrated style as functional art.

OUR HOME proudly announces its exciting collaboration with renowned fashion designer Francis Libiran for his debut home collection. Known for crafting pieces that balance beauty and functionality, OUR HOME serves as the perfect platform for Libiran’s unparalleled artistry to extend into the world of interiors. This exclusive collection epitomizes sophistication, practicality, and the distinct style that has made Francis Libiran a name synonymous with elegance.

“This partnership is a heartfelt tribute to the people who have shaped my life, with each piece telling its own unique story,” says Francis Libiran.

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A graduate of Architecture, Libiran expresses his gratitude for this collaboration, stating, “I am thrilled to work with OUR HOME, a brand that aligns with my vision of blending art and functionality. This collection allows me to showcase my creativity not just in fashion but in crafting spaces that embody beauty and meaning. A true Filipino home is not merely defined by its structure but by the warmth and cultural touches that reflect our heritage and the love shared by the family within.”

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This partnership seamlessly marries Libiran’s signature design sensibility with OUR HOME’s trusted reputation for curating elegant and contemporary home pieces. Francis Libiran’s debut into home design bridges the worlds of couture and interiors, offering a collection that transforms celebrated style into functional art. Homeowners can now infuse their spaces with the same elegance that graces the runway.

Libiran’s collection goes beyond décor; it’s an invitation to create spaces that reflect beauty, serenity, and individuality. From statement accent chairs to plush cushions and delicately crafted candles and scents, each piece is thoughtfully designed to inspire and elevate home living. True to his artistry, the collection features Francis Libiran’s signature elements: intricate details, timeless appeal, and impeccable craftsmanship — each piece telling a story of elegance, creativity, and joy.

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A centerpiece of the collection is the six (6) accent chairs, each inspired by people close to Libiran’s heart. Combining comfort and style, these chairs create sophisticated focal points for any room and are crafted in timeless color palettes using premium materials. Complementing the chairs are soft, stylish cushions adorned with intricate patterns and textures, adding subtle elegance to any space. The collection also includes scents and candles that evoke tranquility and luxury, transforming spaces into serene retreats while embodying Libiran’s refined aesthetic with subtle fragrances and sleek designs.

This exclusive collection is a testament to Francis Libiran’s dedication to artistry and OUR HOME’s commitment to helping customers create beautiful, meaningful spaces. Together, they invite you to experience the perfect fusion of couture and interiors, where every piece tells a story and every home becomes a masterpiece.

The Francis Libiran Home Collection is available exclusively at OUR HOME stores and online in limited quantities. Only at OUR HOME — Great Designs, Great Prices!

Visit any of the 33 OUR HOME stores nationwide (www.ourhome.ph/pages/branches), shop at our website, www.ourhome.ph or contact our Call-to-Deliver hotline at 0917-831-5260.

About FRANCIS LIBIRAN

Francis Libiran is an architect and fashion designer. He is one of the Philippines’ most celebrated fashion designers, known for his innovative use of intricate patterns, clean lines, and timeless elegance. With a career spanning decades and a clientele that includes international celebrities, his designs have graced runways, red carpets, and editorials worldwide. A distinguished Filipino fashion designer, Libiran is renowned for his exquisite craftsmanship, attention to detail, and innovative designs that have captivated audiences both locally and globally. His unique blend of modern aesthetics with traditional Filipino elements has set him apart as a trailblazer in the world of fashion. The Francis Libiran for Our Home Collection marks his first venture into interior design, bringing his artistic vision into living spaces.

About OUR HOME

Since opening its doors in 1997, OUR HOME has been a trusted name in modern home furnishings and decor, offering carefully curated collections of contemporary furniture, home accents, and accessories to help customers create their dream spaces. With a commitment to great designs, affordable prices, and exceptional service, OUR HOME continues to elevate the shopping experience through innovative solutions like online shopping, personal shopper services, and expert interior design advice. The partnership with Francis Libiran highlights OUR HOME’s dedication to collaborating with visionary artists to bring exclusive and world-class designs to Filipino homes.

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OFW from Bicol gets dream home; Camille Villar vows to champion OFW rights, welfare

February 10, 2025 | 11:30 am

Photo-1-OL — A dream come true. Camille Villar hands over the ceremonial key to Angelica Abellano and her family, marking the beginning of their new chapter in Camella Pili, Camarines Sur.

Camille Villar turned over on Tuesday the house and lot won by 26-year-old overseas Filipino worker (OFW) Angelica Abellano during simple ceremonies in Camella Pili, Camarines Sur.

A former BPO call center agent before working as a teacher in Taiwan, Abellano was very grateful when she and her family toured their new home for the first time.

“Nandito na po, nakita ko na po finally yung bahay. Wala pong mapaglagyan yung kasiyahan ko kasi wala palang imposible. Dahil po kay Ma’am Camille, ginawa niyang posible yung isang pangarap na sa tingin ko po ay ilang taon ko pong pagsisikapan,” said Abellano, fourth among eight siblings.

“Ginawa pong magic ni Ma’am Camille,” she said, referring to how Camille was instrumental in making her dream come true.

A new beginning. Angelica walks into her new Camella home, surrounded by her proud and grateful family, as they embrace this life-changing blessing with excitement and joy.

For decades, Abellano and her family lived in a modest home owned by a relative in their hometown. Winning the Camella house was a life-changing blessing for them.

“‘Ito na yung bunga ng sacrifice mo sa family‘, sabi ng papa ko. Gusto ko po mag-thank you dahil ginawa siyang instrument ni Lord pa maisakatuparan ang pangarap ko, kung bakit ako nasa ibang bansa. Sobrang thankful po ako,” she said, referring to Camille Villar.

Abellano’s father is a farmer while her mother sells rice cakes to augment the family income.

“Itong bahay po para sa family ko, hindi na po kami matutulog sa lapag. Hindi na po namin mararanasan na pag umuulan, kailangan maglagay ng balde o tabo kung saan-saan… May concrete na pong bahay kung saan mag-create kami ng new memories,” Abellano added.

Tears of joy, smiles of gratitude. Angelica and her family step into their new Camella home for the first time, overwhelmed with happiness and gratitude.

Abellano won the house and lot from Camella during the “Paskong Pinoy 2024: Piyesta, Musika at Kultura” Christmas gathering organized by the Manila Economic and Cultural Office (MECO) led by its chairperson, Cheloy Velicaria-Garafil, last December. Over 3,000 OFWs attended the event held at the Fu Jen Catholic University in New Taipei City.

Villar congratulated Abellano as she gave her the key to her dream house and lot in Camella Pili, located at Brgy. Cadlan in Pili, Camarines Sur. She also handed over to Abellano a move-in gift certificate worth P50,000 from AllHome to help her start her furnishings for her new house.

She said OFWs like Angelica continue to inspire her in continuing her advocacy to help overseas Filipinos. “Talagang gusto ko magpasalamat sa inyo dahil ikaw ang nagsilbing inspirasyon sa amin. Sobrang saya ko na kahit papaano, maalagaan mo ang pamilya mo,” Villar said.

A warm welcome home. Camille Villar congratulates and welcomes Angelica and her family, celebrating the fulfillment of a long-awaited dream.

Villar reiterated her concern for the OFWs, who sacrifice themselves just to provide for their families.

“Lagi po akong narito, kasama ang aking pamilya, sa pagtataguyod ng maayos na kabuhayan para sa ating mga kababayan, lalung-lalo na ang ating mga bagong bayani. Kasama niyo po kami sa pagkamit ng inyong mga pangarap sa buhay,” Villar said.

“Lahat ng pangangailangan niyo ay lagi ko pong inaalala. Lapitan niyo lamang po ako, at handa po akong tumulong sa inyo sa abot ng aking makakaya,” Villar also said, as she vowed to pursue legislation that would promote and ensure the welfare of OFWs around the world.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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COMELEC launches Kontra Bigay 2.0 against vote-buying, vote selling

February 10, 2025 | 10:56 am

kontra-bigay-comelec — photo by Edg Adrian A. Eva, BusinessWorld

by Edg Adrian A. Eva, Reporter

The Commission on Elections (Comelec) launched the “Kontra Bigay” committee on Friday to intensify its crackdown on vote-buying and vote selling ahead of the 2025 midterm elections.

The newly launched committee will be permanent and a fortified version of Kontra Bigay, which initially operated as a task force during the 2022 elections, said Comelec Chairman George Erwin M. Garcia.

“Kapag committee kasi siya permanent siya ibig saibihin kapag may mga kaso susubaybayan niya yung mga kasong maifa-file. Sapagkat (kapag) na-file na nila yan sila ang mag-poprosecute, sila rin ang magpapa-disqualify [A committee is permanent, meaning it will monitor filed cases, handle prosecutions, and facilitate disqualifications],” Mr. Garcia told reporters at the launching event on Friday.

Under the expanded Kontra Bigay, law enforcers, including the Philippine National Police (PNP), Armed Forces of the Philippines (AFP), and the National Bureau of Investigation (NBI), can conduct surveillance and validate information, reports, or complaints related to vote-buying, vote-selling, or acts of abuse of state resources.

COMELEC identified presumed acts of vote-buying and vote-selling, including the possession or distribution of money, goods, and alike, along with campaign materials, to influence voters.

It also includes the unauthorized possession or transport of over P500,000, along with campaign materials, within two days before the election and on election day.

These are some of the other acts considered as presumed vote-buying and vote-selling, according to COMELEC:

Mr. Garcia said that individuals caught in the act of committing the presumed acts of vote-buying and vote-selling can be arrested without a warrant by any law enforcement agency.

He added that this measure is important, as it allows authorities to apprehend individuals even in a short period, preventing them from engaging in vote-buying and vote-selling.

“Dito, pine-presume na may pamimili ng boto. Therefore, depensahan mo ang sarili mo. Ni-reverse natin para mas mapadali ang arrest at prosecution [Here, vote buying is now presumed. Therefore, it’s up to the offender to defend themselves. We’ve reversed the process to make arrests], Mr. Garcia furthered.

Under Article 12 of the Omnibus Election Code, vote-buying and vote-selling are punishable by imprisonment of not less than one year but not more than six years.

To file a complaint, COMELEC Commissioner Ernesto Ferdinand P. Maceda Jr. stated that individuals can submit complaints not only at COMELEC’s main office in Manila but also at their respective Kontra Bigay centers in cities, provinces, and municipalities.

Ayuda Ban

Kontra Bigay’s strengthened version now includes provisions targeting the abuse of state resources (ASR), Mr. Maceda said. This includes the prohibition of using government assistance or Ayuda to influence voters.

“This initiative is reinforced by the new provisions against abuse of state resources, a silent yet pervasive threat to the foundation of our democracy,” Mr. Maceda said.

COMELEC has imposed a total ban on the distribution of Ayuda, starting ten days before the elections and on election day.

This includes programs such as Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD), Angat Kabuhayan at Pag-Asa Program (AKAP), Assistance to Individuals in Crisis Situations (AICS), and the Pantawid Pamilyang Pilipino Program (4Ps).

However, COMELEC noted that medical and burial assistance are exempted from the total ban.

Pentagon doubles number of news outlets to ‘rotate’ out from office spaces

February 10, 2025 | 10:51 am

WASHINGTON – The U.S. Defense Department on Friday doubled the number of news organizations that must vacate their Pentagon office spaces to be replaced by other media outlets under a new “annual media rotation program.”

The department said in a memo it was adding CNN, the Washington Post, the Hill and the War Zone to the outlets that must give up their dedicated space. Those organizations did not immediately respond to requests for comment.

In the first round, the Defense Department said a week ago the New York Times, NBC News, Politico and the National Public Radio had to vacate their dedicated workspaces at the Pentagon.

Incoming media outlets include the New York Post, Breitbart, the Washington Examiner, the Free Press, the Daily Caller, Newsmax, the Huffington Post and One America News Network, most of whom are seen as conservative or favoring Republican President Donald Trump, who took office on January 20.

Outgoing outlets will remain members of the Pentagon Press Corps, the memo said, adding that the rotation expressed a desire to make room for other media outlets.

More than two dozen news organizations operate out of the Pentagon, including Reuters, reporting on the daily activities of the U.S. military.

The Pentagon Press Association, which represents journalists who cover the Defense Department, said it was “shocked and deeply disappointed by the Defense Department’s decision to double the number of news organizations it is removing in two weeks from their dedicated workspaces in the Pentagon from four to eight.”

Reuters correspondent Phil Stewart is a member of the association’s four-member board of directors. – Reuters

Taiwan’s legacy chip industry contemplates future as China eats into share

February 10, 2025 | 10:48 am

TAIPEI – When Taiwan’s Powerchip Technology entered a deal with the eastern Chinese city of Hefei in 2015 to set up a new chip foundry, it hoped the move would help provide better access the promising Chinese market.

Nine years later, however, that Chinese foundry, Nexchip, has become one of its biggest rivals in the legacy chip space, leveraging steep discounts after Beijing’s localization call forced Powerchip to give up the once-lucrative business making integrated circuits for Chinese flat panels.

Nexchip is among Chinese foundries quickly winning market share in the crucial $56.3 billion industry of so-called legacy or mature node chips made on 28 nanometer technology and larger, a trend that prompted the Biden administration to initiate an investigation and is alarming Taiwanese industry.

These Chinese foundries, which include Hua Hong and SMIC, are threatening the long-held dominance of Powerchip, UMC and Vanguard International in the market for chips used in cars and display panels by slashing prices and embarking on aggressive capacity expansion plans.

Taiwanese foundries are then forced to retreat or pursue more advanced and specialty processes, executives in Taiwan said.

“Mature-node foundries like us must transform; otherwise, Chinese price cuts will mess us up even further,” said Frank Huang, chairman of Powerchip Investment Holding and its listed unit Powerchip Manufacturing Semiconductor Corporation, which the company was reorganized into in 2019.

UMC told Reuters that the expansion of capacity globally had created “severe challenges” for the industry and that it was working with Intel to develop more advanced, smaller chips and diversify beyond legacy chipmaking.

Trade tensions between Washington and Beijing may ease the pain a bit, executives in Taiwan said, as companies hoping to secure supply chains and seek chips made outside China.

U.S. President Donald Trump, however, has said he plans to impose tariffs as high as 100% on semiconductors made outside the United States.

Vanguard International declined to comment. SMIC, Nexchip and Huahong did not respond to requests for comment.

CHEAPER, MORE AGGRESSIVE

Blocked by the U.S. in recent years from pursuing high-end chip technology, Chinese foundries doubled down on legacy chips and have undercut Taiwanese rivals on price because of strong funding support from Beijing and their embrace of lower margins, Taiwan chip executives say.

Chinese companies dramatically increased legacy chip production capacity in recent years. According to TrendForce, in 2024, China’s share of global mature node manufacturing capacity was 34%, while Taiwan’s was 43%.

By 2027, China’s share is projected to surpass Taiwan’s, while South Korea and the U.S., with single-digit shares, are expected to decline.

Consultancy SEMI forecasts that out of 97 new fabrication plants starting production from 2023 to 2025, 57 are in China.

Although Taiwanese foundries can still compete on factors such as process stability and better production yield rates, one executive working at a Taiwanese chip designer said Chinese foundries had since 2023 become more aggressive in pitching business.

That person, and a second one working at another Taiwanese chip designer, said Chinese customers – especially in consumer-focused sectors such as panels – were increasingly asking Taiwanese chip designers to hire Chinese fabs to make the chips, in line with a call from Beijing for Chinese companies to localize supply chains.

Both people declined to be named because of the sensitivity of the matter.

Chinese government-related companies, such as China Mobile and China Telecom, have also been issuing stricter requirements on using China-made components, they said.

China Mobile and China Telecommunications Corporation, and China’s Ministry of Industry and Information Technology, did not respond to requests for comment.

THE TRUMP EFFECT

Galen Zeng, a senior research manager at global market intelligence firm IDC, said Taiwanese chip designers and foundries were likely to specialize their processes and diversify away from legacy chips, although their profitability would still be hit by Chinese competition in the medium-term.

Powerchip’s Huang said they plan to reduce their work on display driver and sensor chips, which are largely used in the Chinese market, and shift focus towards 3D stacking, a technique that integrates logic and DRAM memory chips to improve computing performance and reduce power consumption.

The company remains Nexchip’s second-largest shareholder, with a 19% stake, but does not play an active management role.

“For chips that will be used in China, we won’t be able to do the business… We must exit, otherwise, there’s no way to survive,” Huang said.

Some respite could come from efforts by Washington to curb China’s chip industry growth, alongside worsening relations between Beijing and other countries that force customers to split supply chains into China-for-China and non-China networks.

Huang told Reuters that they were already seeing some orders that would have gone to China being directed to their Taiwan sites and expect that to accelerate.

An executive from a chip design company in Taiwan, who spoke on condition of anonymity because of the sensitivity of the situation, said they had been receiving more orders from international customers asking to make chips outside China since 2023.

“Some customers will tell us that no matter what, they don’t want us to tape out chips in China; they don’t want ‘Made in China,'” the executive said. – Reuters

Trump to announce 25% steel and aluminum tariffs in latest trade escalation

February 10, 2025 | 10:44 am

steel-tube-5528518_1280 — STOCK PHOTO | Image by Abel Sanchez from Pixabay

ABOARD AIR FORCE ONE – U.S. President Donald Trump said on Sunday he will introduce new 25% tariffs on all steel and aluminum imports into the U.S., on top of existing metals duties, in another major escalation of his trade policy overhaul.

Mr. Trump, speaking to reporters on Air Force One on his way to the NFL Super Bowl in New Orleans, said he will announce the new metals tariffs on Monday.

He also said he will announce reciprocal tariffs on Tuesday or Wednesday, to take effect almost immediately, applying them to all countries and matching the tariff rates levied by each country.

“And very simply, it’s, if they charge us, we charge them,” Mr. Trump said of the reciprocal tariff plan.

The largest sources of U.S. steel imports are Canada, Brazil and Mexico, followed by South Korea and Vietnam, according to government and American Iron and Steel Institute data.

By a large margin, hydropower-rich Canada is the largest supplier of primary aluminum metal to the U.S., accounting for 79% of total imports in the first 11 months of 2024.

“Canadian steel and aluminum support key industries in the U.S. from defence, shipbuilding and auto,” Canadian Innovation Minister Francois-Philippe Champagne posted on X.

“We will continue to stand up for Canada, our workers, and our industries.”

Mr. Trump also said that while the U.S. government would allow Japan’s Nippon Steel 5401.T to invest in U.S. Steel X.N, it would not allow this to become a majority stake.

“Tariffs are going to make it very successful again, and I think it has good management,” Mr. Trump said of U.S. Steel.

Nippon Steel declined to comment on the latest announcements from Trump.

QUOTA QUESTIONS

Mr. Trump during his first term imposed tariffs of 25% on steel and 10% on aluminum, but later granted several trading partners duty-free exemptions, including Canada, Mexico and Brazil. Mexico is a major supplier of aluminum scrap and aluminum alloy.

Former President Joe Biden later negotiated duty-free quota arrangements with Britain, the European Union and Japan. It was not immediately clear from Trump’s announcement what will happen to those exemptions and quota arrangements.

“Quebec exports 2.9 million tons of aluminum to (the U.S.), that is, 60% of their needs. Do they prefer to get supplies from China?” Francois Legault, premier of Quebec, said on X.

“All this shows that we must begin to renegotiate our free trade agreement with the United States as soon as possible and not wait for the review planned for 2026. We must put an end to this uncertainty.”

Steel mill capacity usage jumped to levels above 80% in 2019 after Mr. Trump’s initial tariffs, but has fallen since then as China’s global dominance of the sector has pushed down steel prices. A Missouri aluminum smelter revived by the tariffs was idled last year by Magnitude 7 Metals.

MATCHING RATES

Mr. Trump said he would hold a news conference on Tuesday or Wednesday to provide detailed information on the reciprocal tariff plan, adding that he first revealed on Friday that he was planning reciprocal tariffs to ensure “that we’re treated evenly with other countries.”

The new U.S. president has long complained about the EU’s 10% tariffs on auto imports being much higher than the U.S. car rate of 2.5%. He frequently states that Europe “won’t take our cars” but ships millions west across the Atlantic every year.

The U.S., however, enjoys a 25% tariff on pickup trucks, a vital source of profits for Detroit automakers General Motors, Ford and Stellantis’ U.S. operations.

The U.S. trade-weighted average tariff rate is about 2.2%, according to World Trade Organization data, compared to 12% for India, 6.7% for Brazil, 5.1% for Vietnam and 2.7% for European Union countries.

BORDER STEPS

In a separate Fox News interview, Trump said Canada’s and Mexico’s actions to secure their U.S. borders and halt the flow of drugs and migrants are insufficient ahead of a March 1 tariff deadline.

Mr. Trump has threatened to impose tariffs of 25% on all Mexican and Canadian imports unless America’s two largest trading partners take stronger actions. He paused the tariffs until March 1 after some initial border security concessions from the two countries, with Mexico pledging to add 10,000 National Guard troops to its border and Canada deploying new technology and personnel and taking new anti-fentanyl steps.

Asked whether Mexico’s and Canada’s actions were good enough, Mr. Trump replied: “No, it’s not good enough,” Trump said. “Something has to happen, it’s not sustainable, and I’m changing it.”

Mr. Trump did not say what Canada and Mexico needed to do to avoid broad tariffs on March 1. – Reuters