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Customs seizes P40.5-M misdeclared Chinese vape products

PHILIPPINE STAR/ RUSSELL PALMA

THE Bureau of Customs (BoC) has seized three containers carrying P40.5 million worth of misdeclared vape products and other regulated goods from China at the Manila International Container Port.

In a statement on Thursday, Customs said the shipments, which originated from China, were falsely declared as kitchenware.

“Our operations are anchored on a whole-of-agency approach that prioritizes intelligence, swift execution, and legal action against those who attempt to evade customs laws,” Commissioner Ariel F. Nepomuceno said.

The BoC noted that hold orders for the shipments were issued as early as January 2025, following derogatory information received by the Customs Intelligence and Investigation Service (CIIS).

“A 100% physical examination was conducted on July 14, which led to the discovery of 81,000 pieces of assorted vape products, along with sacks of fully refined paraffin wax and other misdeclared items,” it said.

A case build-up is currently underway to identify and prosecute those responsible for the unlawful importation, the BoC said. — Aubrey Rose A. Inosante

Emong, monsoon damage to power lines in Baguio-Benguet reaches P6.8M

BAGUIO CITY — Damage from Typhoon Emong and the southwest monsoon has so far reached P6.81 million as of Thursday morning, with power restoration efforts continuing across Baguio City and Benguet, the Benguet Electric Cooperative (BENECO) reported.

Despite torrential rains and strong winds that caused widespread power outages, BENECO said it has restored electricity to 96.4% of households and 98.9% of barangays within its franchise area.

Baguio City having incurred the highest damage costs at P4.53 million, including four primary poles, two transformers, and 11 protective devices, while Benguet losses reached P2.28 million, with 28 poles and six transformers affected.

BENECO added such figures are expected to rise as assessments from more towns are still being finalized.

Major causes of the outages were landslides and falling trees and bamboo damaging power lines. Inaccessible roads further delayed restoration, especially in Benguet and parts of Baguio, as linemen had to wait for government crews to clear debris.

In Baguio City, only a few isolated areas and households remain without power.

“We can now concentrate and send majority of our manpower and heavy equipment and materials needed to Benguet municipalities to fix damages in our backbone lines in Kabayan, Natubleng, and Saddle Atok along Halsema Highway,” said Engineer George Tait of BENECO. — Artemio A. Dumlao

Trump says US will set 15% tariff on imports from South Korea

A CAR CARRIER transporting Tesla vehicles travels past KIA Motors’ vehicles parked at a port in Pyeongtaek, South Korea, July 31. — REUTERS/KIM HONG-JI

WASHINGTON/SEOUL — President Donald J. Trump said on Wednesday the US will charge a 15% tariff on imports from South Korea, down from a threatened 25%, as part of a deal that eases tensions with a top-10 trading partner and key Asian ally.

The arrangement, announced shortly after Mr. Trump met with Korean officials at the White House, came during a blizzard of trade policy announcements ahead of a self-imposed Aug. 1 deadline.

That is when Trump has promised higher tariffs will kick in on US imports from a range of countries. Imports from South Korea, a powerhouse exporter of computer chips, cars and steel, faced a 25% rate prior to Wednesday’s last-minute deal.

“I am pleased to announce that the United States of America has agreed to a Full and Complete Trade Deal with the Republic of Korea,” Mr. Trump wrote on Truth Social.

The negotiations were an early test for South Korean President Lee Jae Myung, who took office in June after a snap election. He said the deal had eliminated uncertainty in the export environment and set US tariffs lower than or at the same level as major competitors.

“We have crossed a big hurdle,” Mr. Lee said in a post on Facebook. Mr. Trump said Mr. Lee would visit the White House “within the next two weeks” for his first meeting with the US president.

South Korea agreed to invest $350 billion in the United States in projects selected by Mr. Trump and to purchase $100 billion in energy products, the US president said.

He also said South Korea would accept American products, including autos and agriculture into its markets and impose no import duties on them.

South Korea’s top officials said the country’s rice and beef markets would not be further open, and that discussions over US demands on food regulations continue.

“We avoided the worst and chose the next best,” said Cheong In-kyo, a former South Korean trade minister. Much will depend on how the investments to the US are structured, he added.

“Depending how and where $350 billion will be spent, this fund will be looked at differently.”

DEVIL IN THE DETAILS
It was not immediately clear how the investment deals would be structured, where the financing would come from, over what time frame they would be implemented and to what extent their terms would be binding. Mr. Trump said additional South Korean investments would be announced later.

Of the $350-billion fund, $150 billion was aimed at a shipbuilding partnership while $200 billion would include chips, nuclear power, batteries, and biotechnology, Kim Yong-beom, policy chief from the South Korean presidential office, told a briefing.

Existing investment plans by South Korean companies would be part of the fund, according to Mr. Kim.

He said that “ambiguity is good,” but noted that they had ensured there would be safeguards over how the funds were used.

US Commerce Secretary Howard Lutnick declared in a post on X that 90% of the profits from the $350 billion fund were “going to the American people.”

Mr. Kim said that South Korea understands it to mean that profits would be reinvested.

The energy purchases would include LNG, LPG, crude oil, and a small amount of coal, Mr. Kim said.

“This is within our usual import volume,” he said, adding that it might lead to a “slight shift” in the country’s mix of imports from the Middle East to more American sources.

Mr. Lutnick said the energy purchases would happen “over the next 3.5 years.”

The US tariff rate on South Korean autos would be set at 15% and the country’s semiconductor and pharmaceutical exports would not be treated more harshly than those from other countries, Mr. Lutnick said. Steel, aluminum, and copper were not covered by the new deal.

SCRAMBLE IN SOUTH KOREA
The negotiations took place in a turbulent political environment in South Korea with former President Yoon Suk Yeol removed in April after he was impeached for an attempt to impose martial law.

South Korea has been a particular target of Trump for its trade surplus as well as the cost to maintain some 28,500 US troops in the country to defend against North Korea.

Last year South Korea posted a record $55.7-billion trade surplus with the US, up 25.4% from a year earlier.

It is among only three Asia-Pacific countries that already had a comprehensive free trade agreement with the US, but that did not spare it from new tariffs.

Pressure had been mounting on South Korea since Japan clinched a deal to cut Mr. Trump’s threatened tariffs to 15% earlier this month.

Amid the last-minute push by government officials to reach a tariff deal, South Korea’s Samsung Electronics inked a $16.5-billion chip deal with Tesla.

South Korean battery maker LG Energy Solution also signed a $4.3-billion deal to supply Tesla with energy storage system batteries, a person familiar with the matter told Reuters. — Reuters

Canada plans to recognize Palestinian state, raising allies’ pressure on Israel

STOCK PHOTO | Image by chris robert from Unsplash

OTTAWA/JERUSALEM — Canada plans to recognize the State of Palestine at a meeting of the United Nations (UN) in September, Prime Minister Mark Carney announced on Wednesday, ratcheting up pressure on Israel as starvation spreads in Gaza.

The announcement came after France said last week it would recognize a Palestinian state and a day after Britain said it would recognize the state at September’s UN General Assembly meeting if the fighting in Gaza, part of the Palestinian territories occupied by Israel, had not stopped by then.

Mr. Carney told reporters that the reality on the ground, including starvation of people in Gaza, meant “the prospect of a Palestinian state is literally receding before our eyes.”

“Canada condemns the fact that the Israeli government has allowed a catastrophe to unfold in Gaza,” he said.

Mr. Carney said the planned recognition was based in part on repeated assurances from the Palestinian Authority, which represents the State of Palestine at the UN, that it was reforming its governance and is willing to hold general elections in 2026 in which Hamas “can play no part.”

The announcements by some of Israel’s closest allies reflect growing international outrage over Israel’s restrictions on food and other aid to Gaza in its war against Hamas militants, and the dire humanitarian crisis there. A global hunger monitor has warned that a worst-case scenario of famine is unfolding in the enclave.

The Gaza health ministry reported seven more hunger-related deaths on Wednesday, including a two-year-old girl with an existing health condition. The Hamas-run government media office in Gaza said the Israeli military killed at least 50 people within three hours on Wednesday as they tried to get food from UN aid trucks coming into the northern Gaza Strip.

Israel and its closest ally, the US, both rejected Carney’s statements.

“The change in the position of the Canadian government at this time is a reward for Hamas and harms the efforts to achieve a ceasefire in Gaza and a framework for the release of the hostages,” the Israeli foreign ministry said in a statement. Israeli Prime Minister Benjamin Netanyahu made similar comments after the French and British announcements.

A White House official, speaking on condition of anonymity, said President Donald Jr. Trump also sees recognition of the State of Palestine as wrongly “rewarding Hamas.”

US special envoy Steve Witkoff is due to travel to Israel on Thursday to discuss Gaza. Mr. Trump said this week he expected centers to be set up to feed more people in the enclave.

The State of Palestine has been a non-member observer state of the UN General Assembly since 2012, recognized by more than three-quarters of the assembly’s 193 member states.

Jonathan Panikoff, former deputy US national intelligence officer on the Middle East, said recognition of Palestine is intended “to increase pressure on Israel to compel it to return to a two-state paradigm.” But he said Canada’s announcement is “unlikely to be anything more than symbolic and risks undermining their relationship with a longtime ally in Israel.”

French President Emmanuel Macron, who spoke with Carney before Canada’s announcement, said the recognition of Palestine will “revive a prospect of peace in the region.”

POSSIBLE ULTIMATUM TO HAMAS
Israeli security cabinet member Zeev Elkin said on Wednesday that Israel could threaten to annex parts of Gaza to increase pressure on Hamas, eroding Palestinian hopes of statehood on land Israel now occupies.

Mediation efforts to secure a 60-day ceasefire and the release of remaining hostages held by Hamas ground to a halt last week.

In Gaza, resident Saed al-Akhras said the recognition of Palestine by major powers marked a “real shift in how Western countries view the Palestinian cause.”

“Enough!” he said. “Palestinians have lived for more than 70 years under killing, destruction and occupation, while the world watches in silence.”

Families of Israeli hostages still held in Gaza appealed for no recognition of a Palestinian state to come before their loved ones were returned.

“Such recognition is not a step toward peace but rather a clear violation of international law and a dangerous moral and political failure that legitimizes horrific war crimes,” the Hostages Family Forum said.

Mr. Netanyahu said this month he wanted peace with Palestinians but described any future independent state as a potential platform to destroy Israel, so control of security must remain with Israel.

His cabinet includes far-right members who openly demand the annexation of all Palestinian land. Finance Minister Bezalel Smotrich said on Tuesday that reestablishing Jewish settlements in Gaza was “closer than ever,” calling Gaza “an inseparable part of the Land of Israel.”

AID GOING IN, BUT NOT ENOUGH
A 2-year-old girl being treated for a buildup of brain fluid died overnight of hunger, her father told Reuters on Wednesday.

“Doctors said the baby has to be fed a certain type of milk,” Salah al-Gharably said by phone from Deir Al-Balah. “But there is no milk. She starved. We stood helpless.”

The deaths from starvation and malnutrition overnight raised the toll from such causes to 154, according to the Gaza health ministry, including at least 89 children, since the war’s start, most of them in recent weeks.

Israel said on Sunday it would halt military operations for 10 hours a day in parts of Gaza and designate secure routes for convoys delivering food and medicine.

The UN Office for the Coordination of Humanitarian Affairs said the United Nations and its partners had been able to bring more food into Gaza in the first two days of pauses, but the volume was “still far from enough.”

The war began on Oct. 7, 2023, when Hamas led attacks on communities and military bases in southern Israel in which some 1,200 people were killed, including more than 700 civilians, and another 251 taken as hostages to Gaza, according to Israeli tallies.

Since then, Israel’s offensive in the Gaza Strip has killed more than 60,000 people and laid waste to much of the territory, the Gaza health ministry says. — Reuters 

US plans to issue travel notice for China as chikungunya cases rise

Public Health Image Library/US Centers Disease for Control and Prevention 

THE US CENTERS for Disease Control and Prevention (CDC) is planning to issue a travel notice for China as chikungunya infections rise in the country, a spokesperson told Bloomberg News.

China has recorded nearly 5,000 cases of the mosquito-borne illness since one infection was found in early July. Guangdong, a province near Hong Kong, has recorded almost 3,000 cases in the last week.

“CDC is aware of the reported chikungunya outbreak in Guangdong Province in China and is currently assessing the size and extent of the outbreak,” the spokesperson said in a statement.

The Atlanta-based agency issues travel health notices for people to be aware of the risks for certain outbreaks and natural disasters and provide preventive actions they can take, including which vaccines are available.

Chikungunya can cause an abrupt fever and severe joint pain, especially in the hands and feet, according to the CDC.

The World Health Organization (WHO) issued an early call to action in July because of an ongoing outbreak in the Indian Ocean that has spread to other countries, adding that it is seeing early signs of an epidemic — reminiscent of a major epidemic that swept across the Indian Ocean in 2004 and 2005.

Some 240,000 cases and 90 chikungunya-related deaths have been recorded in Europe since the start of the year in at least 16 countries, according to the European Centre for Disease Prevention and Control.

The disease tends to circulate in tropical and subtropical regions. US cases tend to be acquired from travel; the country has not reported a locally acquired infection since 2019.

Currently, the CDC has issued a level 2 notice for US travelers to practice “enhanced precautions” for seven countries including Kenya and Madagascar.

The CDC recommends that most people traveling to an outbreak area get vaccinated for chikungunya. However, in May, the CDC and the US Food and Drug Administration recommended a pause for the vaccine Ixchiq — which includes a live component of the virus — for people over the age of 60 following reports of  serious adverse events in that age group.

European regulators are also reviewing the vaccine’s use in older adults. A separate vaccine without a live virus component is approved for people over the age of 12 in the US.

One of the best ways to prevent chikungunya is to protect yourself from mosquito bites, said William Schaffner, a professor of infectious diseases at Vanderbilt University Medical Center. That includes wearing clothing that covers your limbs and using bug spray.

Other mosquito-borne illnesses have increased due to climate change and global travel.

In 2024, the US saw a record number of dengue infections. The CDC issued an alert for ongoing risk and travel recommendations in March.

Dengue and Zika are transmitted by the Aedes species mosquito, the same mosquito that can spread chikungunya. Nearly 100 cases of West Nile virus have been detected in the US this year, according to the CDC.

As the bugs continue to spread, the WHO expects five billion people to be at risk for mosquito-borne infections by 2050.  Bloomberg

Alas Pilipinas battles strong Thai team in the 5th SEA V-League

AVC

THE TREK BACK to road towards Southeast Asian Games glory for Philippine women’s volleyball resumes as Alas Pilipinas clashes with regional powerhouse Thailand on Friday at the start of the first leg of the 5th SEA V-League at the Terminal 21 Korat in Nakhon Ratchasima, Thailand.

The Filipinas, spearheaded by Jia de Guzman, Bella Belen, Angel Canino, Alyssa Solomon, Eya Laure, Thea Gagate, Vanie Gander and Fifi Sharma, will battle the Thais at 6 p.m. (Philippine time) with hopes of, at best, pulling off a shocker and, at worst, giving the perennial SEA Games gold winner a decent fight.

Also part of the team are Mars Alba, Justine Jazareno, Dawn Catindig, Shaina Nitura, Leila Cruz, Cla Loresca and Dell Palomata.

The Nationals clash with the Vietnamese next Saturday and then capped off its opening leg campaign with a duel versus the Indonesians Sunday.

It will be a short but sweet tournament as the nation with the best record after the single-round robin format captures the gold.

From Thailand, Alas flies to Ninh Binh, Vietnam for the second leg where it battles Vietnam on Aug. 8, Thailand on Aug. 9 and Indonesia on Aug. 10.

The country is hoping to continue to improve as it eyes a first medal in the SEA Games this December in Thailand since it snared a bronze exactly two decades ago when the country hosted the biennial meet in Bacolod. — Joey Villar

White House in crypto policy report calls for SEC action, new legislation

REUTERS

A CRYPTOCURRENCY working group formed by President Donald J. Trump on Wednesday outlined the administration’s stances on market-defining crypto legislation and called on the U.S. securities regulator to create new rules specific to digital assets.

In a factsheet ahead of a landmark report, the White House urged Congress to move forward with legislation that would create a formal crypto regulatory regime, but implored lawmakers to include additional provisions in the bill. Those include allowing trading platforms to also custody crypto and providing a tailored disclosure regime for issuers of crypto securities.

The White House also encouraged the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to use their existing authorities to “immediately enable the trading of digital assets at the federal level.”

Shortly after taking office in January, Mr. Trump ordered the creation of a crypto working group tasked with proposing new regulations, making good on his campaign promise to overhaul US crypto policy.

Wednesday’s report is a culmination of the task force’s work so far and its first public findings. In line with Mr. Trump’s January executive order, it will lay out several new policies from tax provisions to capital markets rules that it says should be enacted to advance the policy goals of the pro-crypto White House.

The working group led by Mr. Trump official Bo Hines includes several administration officials, including Treasury Secretary Scott Bessent, SEC Chair Paul Atkins, and Director of the Office of Management and Budget Russell Vought.

On the campaign trail last year, Mr. Trump courted crypto cash by pledging to be a “crypto president” and promote the adoption of digital assets. That is in stark contrast to former President Joseph R. Biden’s regulators, who, in a bid to protect Americans from fraud and money laundering, cracked down on the industry. The Biden administration sued exchanges Coinbase, Binance, and dozens more, alleging they were flouting US laws. Mr. Trump’s SEC has since dropped those cases.

MARKET STRUCTURE
Wednesday’s report comes just two weeks after the House of Representatives passed a bill called the Clarity Act that would create a broad regulatory guidelines for crypto, and the US Senate is considering its own version of the measure.

Earlier this month, Trump signed into law a bill to create federal rules for stablecoins, a type of cryptocurrency pegged to the US dollar. That move was hailed as a major win for the digital asset industry, but the White House has said it wants Congress to pass market structure legislation like the Clarity Act next, which would have far wider repercussions for the industry.

The report will ask lawmakers to consider several additional measures in the final version of the bill, which could influence ongoing discussions on Capitol Hill.

The White House said that Congress should provide the CFTC with the authority to oversee crypto spot markets, and should recognize the potential of decentralized finance technology, referring to blockchain-based platforms that allow users to transact without intermediaries.

The report will also offer several recommendations for the SEC and the CFTC, encouraging the regulators to use safe harbors and regulatory sandboxes to allow “innovative financial products to reach consumers without bureaucratic delays.”

That could include tokenization, which is the process of turning financial assets — such as bank deposits, stocks, bond funds and even real estate — into crypto assets.

Crypto firms and others have been increasingly discussing the prospect of tokenization. Coinbase recently told Reuters it was seeking a green light from the SEC to offer blockchain-based stocks. The SEC has yet to weigh in publicly on that request.

The crypto sector has for years argued that existing US regulations are inappropriate for cryptocurrencies and has called for Congress and regulators to write new ones that clarify when a crypto token is a security, commodity, or falls into another category, such as stablecoins.

The president’s support for the crypto industry has sparked conflict-of-interest concerns, which at times have threatened to derail congressional crypto legislation. Mr. Trump’s family has launched cryptocurrency meme coins, and the president also holds a stake in World Liberty Financial, a crypto platform. The White House has denied that any conflicts of interest are present. — Reuters

WTA No. 69 Alex Eala withdraws from Cincinnati Open to rest injured shoulder ahead of US Open

ALEXANDRA “ALEX” EALA — RAFANADALACADEMY.COM

ALEXANDRA “ALEX” EALA has withdrawn from the Cincinnati Open to rest her minor shoulder injury and ensure a tip-top shape for the US Open later this month.

No less than the Women’s Tennis Association (WTA) broke the news on Thursday on Ms. Eala, who’s automatically seeded into the main draw of the Cincinnati tourney as the 65th ranked player in the world.

The Cincinnati Open slated on Aug. 7 to 18 is the last WTA 1000 level tourney before the US Open on Aug. 24 to Sept. 7 in New York.

Mexico’s Renata Zarazua, Ms. Eala’s partner in the 2025 French Open doubles, will take her spot in the main draw.

Ms. Eala, with a kinesiology tape on her left shoulder, had the injury in her return to the hardcourt in the National Bank Open in Montreal, Canada earlier this week following a month-long vacation in the Philippines.

The 20-year-old Filipina ace braved the injury and snatched the first set from former Grand Slam champion Marketa Vondrousova of the Czech Republic, 6-3, only to run out of steam in the next two, 1-6, 2-6, for an early exit.

“Pretty in pink. Montreal was a short but sweet trip. I had so much fun out on court! Time to rest and recover,” said Ms. Eala on her social media post.

Ms. Eala, a lefty specialist now nursing a left shoulder injury, will shoot for a historic main draw victory in the US Open after foiled attempts in the French Open and Wimbledon.

She absorbed first-round exits in both Grand Slams but will have some added motivation by her side after scoring the country’s first-ever WTA final stint in the Eastbourne Open in England.

Ms. Eala also reigned supreme in the girls’ single division of the 2022 US Open to become the first Filipina junior Grand Slam champion ever for added fire in her bid.

But first things first for Ms. Eala and that’s to recuperate for more than three weeks before another shot at history. — John Bryan Ulanday

In Hiroshima, a schoolboy keeps memories of war alive with guided tours

The Peace Memorial Park in Hiroshima, Japan. — BRENDAN SMIALOWSKI/POOL VIA REUTERS

HIROSHIMA, Japan — Since the age of seven, Japanese schoolboy Shun Sasaki has been offering free guided tours to foreign visitors of the Hiroshima Peace Memorial Park with a mission: ensuring that the horrors of nuclear war do not fade from memory with the passage of time.

Aged 12 now, Shun has conveyed that message to some 2,000 visitors, recounting in his imperfect but confident English the experiences of his great-grandmother, a hibakusha who survived the atomic bomb.

“I want them to come to Hiroshima and know about what happened in Hiroshima on Aug. 6,” Shun said in English, referring to the day the bomb was dropped in 1945.

“I want them to know how bad is war and how good is peace. Instead of fighting, we should talk to each other about the good things of each other,” he said.

About twice a month, Shun makes his way to the peace park wearing a yellow bib with the words “Please feel free to talk to me in English!” splashed across the back, hoping to educate tourists about his hometown.

His volunteer work has earned him the honour of being selected as one of two local children to speak at this year’s ceremony to commemorate 80 years since the A-bomb was dropped — its first use in war.

Shun is now the same age as when his great-grandmother Yuriko Sasaki was buried under rubble when her house, about 1.5 km (0.9 mile) from the hypocenter, collapsed from the force of the blast. She died of colorectal cancer aged 69 in 2002, having survived breast cancer decades earlier.

The uranium bomb instantly killed about 78,000 people and by the end of 1945 the number of dead, including from radiation exposure, reached about 140,000. The US dropped a second atomic bomb on Nagasaki on Aug. 9.

Canadian Chris Lowe said Shun’s guided tour provided a level of appreciation that went beyond reading plaques on museum walls.

“To hear that about his family… it surely wrapped it up, brought it home and made it much more personal. So it was outstanding for him to share that,” he said.

Shun said he plans to continue with the tours as long as he can.

“The most dangerous thing is to forget what happened a long time ago… so I think we should pass the story to the next generation, and then, never forget it, ever again.” — Reuters

Filipinas eye Women’s World Cup slot despite AFC tough grouping

FILIPINAS WOMEN’S FOOTBALL TEAM — FACEBOOK.COM/PILIPINASWNFT

COACH Mark Torcaso expressed confidence the Filipinas will step up to the plate in the face of a tough group assignment in next year’s AFC Women’s Asian Cup (WAC).

The recent draw put the Pinay booters in early collision course with host Australia and 2022 runner-up Korea as well as Iran in the dispute for Continental honors and tickets to the 2027 FIFA Women’s World Cup.

“I know our players will be up for the challenge. Every team here (WAC) is going to be a difficult opponent. It didn’t really matter who we were going to play, every game is going to be tough, and every game, we have to be extremely determined and focused to get an outcome,” Mr. Torcaso said.

The Filipinas, who finished fourth in the 2022 edition en route to their historic stint in the 2023 Women’s World  Cup (WWC) in New Zealand, need to finish in the Top 6 of the 12-nation WAC in March to book a return trip to the global showpiece.

Initial objective for Mr. Torcaso’s charges is to advance to the quarterfinals as the topnotcher or runner up of Group A or the No. 1 or No. 2 squad among third placers across the three groups. Reaching the semifinals will lead to automatic qualification to the prestigious world meet; if not, a victory in the playoff matches for losing quarterfinalists will send them through.

“We are going to do our absolute best to bring World Cup opportunities back to our players and back to our country,” said Mr. Torcaso, looking to duplicate the feat of his predecessor Alen Stajcic, who brought the Filipinas to a milestone appearance and 2-0 upset of NZ in the previous WWC.

“We’ll be extremely determined and excited by making sure that we make this happen and we’ll do everything possible over the next few windows to make sure that we’re as prepared as possible,” he said. — Olmin Leyba

Trump’s use of tariffs faces legal test ahead of August 1 deadline

IMAGE VIA THE PORT OF LOS ANGELES

The bulk of President Donald Trump’s global tariffs face their biggest test yet when a US appeals court weighs arguments on their legality Thursday, a day before higher rates against many countries are set to kick in.

The tariffs were allowed to stay in place temporarily even after the US trade court in May sided with a group of Democratic-led states and small businesses that claimed Trump wrongfully invoked an emergency law to justify the levies. Now, the US Court of Appeals for the Federal Circuit is set to weigh whether the tariffs are constitutional. A ruling is possible within weeks.

Trillions of dollars of global trade are embroiled in the legal fight. A loss for the government would raise questions about the validity of Trump’s recent trade deals. The administration also would be forced to contend with demands to refund tariffs that were already paid.

The cases is likely to wind up at the Supreme Court, drawing the justices into yet another fight this year over Trump’s agenda.

LEGALITY
The states and businesses are set to argue that only Congress has authority to issue tariffs and that the levies amount to a massive illegal tax on American companies and consumers who are footing most of the bill. The Trump administration will press its case that the president has broad authority to issue tariffs under a rarely used emergency law, and that his decisions cannot be reviewed by any court.

A 10% flat global tariff has been in effect while the litigation unfolds. Trump set an Aug. 1 deadline for a new round of rate hikes on imports from countries that haven’t struck deals with the US, insisting that no further extensions would be granted. The contested levies could be in place for weeks or months before there’s a final resolution, creating more financial uncertainty for businesses.

US trade negotiators continue to strike deals with nations eager to lower their tariffs. Trump has hailed agreements with Japan and the European Union in the past week, following recent deals with nations including the Philippines and Vietnam. 

IEEPA
The appeals court will hold Thursday’s hearing with its entire slate of 11 active judges instead of a typical three-judge panel, meaning the ruling can immediately be appealed to the Supreme Court. Three of the judges were appointed by Republican presidents and eight by Democrats.

Trump issued a series of executive orders to announce his tariffs using the International Emergency Economic Powers Act, a law that grants the president authority over a variety of financial transactions on an emergency basis. The states and businesses argue Trump’s use of IEEPA is illegal because the law doesn’t mention tariffs and is typically used to levy sanctions and asset freezes during national emergencies. 

In February, Trump used the law to impose tariffs on China, Canada and Mexico, arguing that the flow of the drug fentanyl and illegal immigration into the US constituted a national emergency. The president then declared another national emergency over the persistent US trade deficit and invoked IEEPA to issue duties in April against virtually all US trading partners, his so-called “Liberation Day” tariffs.

The Trump administration said in a brief with the appeals court that Trump is exercising his tariff authority “consistent with his obligations under the Constitution.” The levies, the government argues, are “appropriate to address what he has determined are grave threats to the United States’s national security and economy.”

The states and businesses argue that trade deficits are a persistent part of the US economy and therefore not an emergency, and that the fentanyl-related tariffs are a dressed-up negotiating tactic rather than a legitimate effort to stem the flow of drugs.

“If he’s using unconstitutional powers to implement tariffs, those will be struck down,” said Oregon Attorney General Dan Rayfield, whose office is leading the multi-state suit.

Trump has also imposed tariffs on specific sectors like autos and steel under an authority that allows him to do so on national security grounds — so-called 232 cases that trade lawyers consider to have a stronger legal foundation than the IEEPA duties.

At least 11 lawsuits have been filed this year over Trump’s tariff policies. Most are on hold until the Federal Circuit — and potentially the Supreme Court — weighs in.

Earlier in the week, the US trade court rejected a request to reinstate a tariff exemption that Trump got rid of for low-value goods from China, citing the fact that the cases before the Federal Circuit cover the same ground. Trump on Wednesday signed a new executive order ending the tariff exemption for low-value imports worldwide — a move expected to invite even more legal challenges. — Bloomberg 

Charlie Woods vaults into contention at Junior PGA Championships

CHARLIE WOODS vaulted into contention at the Junior PGA Championships with a 6-under par 66 in the second round in West Lafayette, Ind. on Wednesday.

After carding a 70 during the first round on the Kampen-Cosler Course at the Birck Boilermaker Golf Complex, Woods birdied six of his first eight holes en route to making the turn in 5-under 31 on Wednesday. He birdied three of his first six holes on the back to reach 9 under for the event before consecutive bogeys dropped Woods back to 7 under.

He is seven shots behind leader Lunden Esterline, a 2027 Auburn commit, with Max VanderMolen and Chase Yenser tied at 9 under with 36 holes to play.

Woods, 16, failed to qualify for the match play rounds at last week’s US Junior Amateur Championship in Dallas. He is now seeking one of the two automatic spots on the Junior Ryder Cup team that will go to the top two finishers this week. There is also one captain’s pick, although Woods is likely not in line to be selected for it. — Reuters