Latest / Washington Post / 5.13.25
Transcript
- 0:01Speaker 1: Welcome to the reading of the Washington Post for Thursday,
- 0:04May thirteenth, twenty twenty five. As a reminder, RADIOI is
- 0:09a reading service intended for people who are blind or
- 0:12have other disabilities that make it difficult to read printed material.
- 0:17Your reader for today is Cindy Fraser. Today's front page
- 0:21headlines from the Washington Post are first. Comb's trial opens
- 0:26with sordid testimony, sex worker describes violence threat in rap
- 0:30Mogul's trafficking trial. Our next headline in Israel, U s
- 0:35snubs provoke panic as Trump repeatedly sidelines net. In Yahoo,
- 0:41anxious leaders perceive cracks in relationship. Our next headline, US
- 0:46and China to slash terrace as recession fears ease, stocks surge.
- 0:52Long term uncertainty linkers with ninety day deal. Our next headline,
- 0:58gifted Kudar Plaine would need extensive security upgrades. Next States
- 1:05of Viye to snag a piece of one hundred billion
- 1:07dollar AI mega project. And the final headline from today's
- 1:12front page, Order on drug costs offers plenty of threats,
- 1:17few deals. Now let's turn to our first item, entitled
- 1:22Comb's trial opens with sordid testimony. Sex worker describes violence
- 1:27threat in rap moguls trafficking trial by Anne Grannigan, Janey Kingsbury,
- 1:34Shana Jacobs, and Sabby Robinson from New York. Seawn Diddy.
- 1:39Combe's federal sex trafficking trial began Monday with opening statements
- 1:44and searing testimony from witnesses who described alleged violence, paid
- 1:49sex acts, and coercion by the music mogul. Combs was
- 1:54pleaded not guilty to five criminal counts of bracketeering, conspiracy,
- 1:59sex tracking, and transportation to engage in prostitution. Entered the
- 2:04court room at the Daniel Patrick Monaghan u S Court House,
- 2:07embraced his attorneys and greeted his family seated in the
- 2:11row behind him, with a smile. He faces fifteen years
- 2:15to life in prison if convicted on all accounts. After
- 2:19jurors were selected and sworn in by Judge A. Rune Subramanian,
- 2:23proceedings continued with witness testimony from former hotel security guard
- 2:27Israel Flores and sex worker Daniel Philip, who detailed their
- 2:32interactions with Colmbs. The jury was also shown surveillance footage
- 2:36of Combe's dragging and beating his then girl friend, Cassie,
- 2:40whose legal name is Cassadra Ventura at a hotel in
- 2:43twenty sixteen. Prosecution and defense give opening statements. During opening statements,
- 2:50prosecutors described Combe's alleged quote freak offs, drug and sex,
- 2:55fuel parties, and the high ranking employees tied to his
- 2:58alleged crimes. They also outlined how victims, including Ventura and
- 3:03another former romantic partner identified only as Jane, were forced
- 3:08or coerced into sex acts at these events. They will
- 3:12describe freakos for you in painstaking detail, Assistant US Attorney
- 3:17Emily Johnson told the jury, along with some of the
- 3:21most painful and personal experiences of their lives. Johnson told
- 3:26the jury that some of the evidence would be disturbing
- 3:29and described how enablers among Combe's employees facilitated his crimes
- 3:34and helped to control his victims. The prosecutor conceded that
- 3:38Comb's and Ventura had a rocky relationship ridden with jealousy
- 3:42and infidelity, but only one of them had power, only
- 3:47one had controlled, Johnson said. Combe's defense attorney Tini Garagos
- 3:52told jurors that Shawn Combs is a complicated man, but
- 3:56this is not a complicated case. She described him as
- 4:01extremely jealous and said violence did take place, but said
- 4:06that it was unrelated to the charges he is facing.
- 4:09Combs has denied all of the allegations against him. Garagos
- 4:14also brought up Ventura, who was expected to take the
- 4:16stand this week. What Combs did to Cassie on this
- 4:20videotape is indefensible, she said. It is not evidence of
- 4:24sex trafficking. It is evidence of domestic violence. Garago's remarks
- 4:29underscored the defense's central position. The evidence is going to
- 4:33show you a very flawed individual, she said, but not
- 4:37someone guilty of racketeering, sex trafficking, or prostitution. The lawyer
- 4:43also argued that Combe's accusers chose to remain in his orbit,
- 4:47saying the case was about voluntary adult choices and involved capable,
- 4:52strong adult women. They made free choices every single day
- 4:57for years. Garagos argued. Former hotel security guard accuses Combs
- 5:02of bribery. Among the first witnesses the prosecution called Monday
- 5:07Afternoon was Flores, a former security guard at the Intercontinental
- 5:11Hotel in Los Angeles, where Combs was caught on camera
- 5:15assaulting Ventura in twenty sixteen. On this dand Flores, who
- 5:20was now an officer with the Los Angeles Police Department
- 5:23testified that he was offered a bribe by Combs after
- 5:26intervening in the rapper's attack on Ventura. According to Flores,
- 5:31Combs presented a quote stack of money and told the
- 5:35officer not to tell any one about what he saw.
- 5:38I don't want your money, Flores said he told Colmes.
- 5:42In court, jurors were shown a phone recording Flores said
- 5:45he took of the hotel surveillance footage. A second video
- 5:49shown to jurors depicted Flores trying to calm down Combs
- 5:53while the rapper can be seen shouting at Ventura from
- 5:56down the hallway. The officer said he saw Ventura with
- 5:59a brute and first arrived to the floor where the
- 6:02pair fought to see her cowering in a corner and
- 6:05covering her face. The videos, which are now part of evidence,
- 6:09were shown to jurors after supermanni And ruled last month
- 6:13that some footage of the assault could be admitted, rejecting
- 6:16combsbid to exclude it. CNN first obtained and published video
- 6:21of the incident last year. At the Times. Colms released
- 6:25an apology video and called his attack on Ventura as
- 6:28his rock Bottom. Combe's lawyer, Bryan Steele, conducted a lengthy
- 6:33cross examination of Flores, repeatedly asking the officer why he
- 6:37didn't include certain details in his report. Steele also seemed
- 6:41to suggest that Colmbs was not offering money as a bride,
- 6:45but to pay for property damage. Sex worker details encounters
- 6:49with Combs and Ventura. The government's second witness, Philip, testified
- 6:55that Ventura paid him multiple times to have sex with
- 6:57her in the presence of Combs. During one encounter, Philip
- 7:01said he witnessed Combs's physically assault Venturer as she screamed
- 7:05and got dragged into a bedroom. I'm sorry, I'm sorry,
- 7:09Ventura wailed. According to the witness, she was screaming and
- 7:14I could hear what sounded like him slapping her. Philip testified.
- 7:18According to Philip, Colms filmed a couple of sexual encounters
- 7:22between Philip and Ventura on a cell phone and a camcorder.
- 7:26He told jurors that these sessions with the couple between
- 7:28twenty twelve and twenty fourteen could last anywhere from an
- 7:32hour to ten hours. He also recalled an instance when
- 7:36Colmes took down Philip's driver's license information just for insurance
- 7:41just in case, he said Colmmes told him. Philip said
- 7:45he understood that to be a threat. The payments ranged
- 7:48from seven hundred dollars to five thousand dollars or six
- 7:51thousand dollars, Philip said, but I didn't care if I
- 7:54got paid one way or the other. They gave that
- 7:57to me every time I went to see them. Philip
- 8:00about it that if he couldn't perform sexually sometimes he
- 8:02wouldn't get paid, but that he would have been involved
- 8:05with them without compensation because it was exciting to be
- 8:09in this world and be involved with the famous pair.
- 8:13Xavier Donaldson led the defense's cross examination of Philip, with
- 8:17questions ranging from the search optimization practices of the mail
- 8:21stripper business Philip used to work for as a manager
- 8:24to why he was chosen to meet Venturer for the
- 8:26first time at the Gramercy Park Hotel. Ventura, who was
- 8:31pregnant with her third child with husband Alex Fine, is
- 8:34expected to take the stand Tuesday. The singer's testimony is
- 8:38a key fixture in the government's case following her explosive
- 8:42lawsuit against Combs in twenty twenty three that ignited the
- 8:46rapper's legal troubles. The case was settled for an undisclosed amount,
- 8:51but it has since triggered nearly eighty sexual assault lawsuits
- 8:54against the rap mogul. In September, Colmbs was arrested on
- 8:59charges of breakacketeering, conspiracy, and sex trafficking for alleged crimes
- 9:04dating back to two thousand eight. He has been detained
- 9:07in a Brooklyn jail. The scene in and outside the
- 9:11court house ahead of proceedings Monday, long time Comb supporters, attorneys,
- 9:17onlookers and reporters were packed outside the court house early
- 9:21morning to attend the trial, which will not be publicly broadcast.
- 9:26To Noel Lawrenson, fifty three lined up at two a m.
- 9:30For spot inside. I really want to see at firsthand
- 9:34as much as I can, said lawrenceon who noted she
- 9:37was a little anxious about Ventura testifying because she's looking
- 9:41real pregnant. It's surreal. Lawrenson added, I have a love
- 9:45hate relationship with Comb's I was there for the whole
- 9:49bad boy era, but he has a reputation for other
- 9:52things too that weren't really so great throughout the years.
- 9:56Combe's mother and all six of his adult children appeared
- 9:59in court Monday. With the exception of his daughter Chance,
- 10:03who was dressed in white, they were all wearing black
- 10:06as a family presented a united front amid intense public scrutiny.
- 10:11Also seated in the court room was music producer Rodney
- 10:14Lilrod Jones, who alleges in a lawsuit filed earlier this
- 10:18year that he was forced to solicit sex workers and
- 10:22perform sex acts to the pleasure of mister Combs from
- 10:25twenty twenty two to twenty twenty three. Combs's legal team
- 10:29denied the allegations and called them pure fiction. What to
- 10:33expect ahead in the trial. Last week, potential jurors were
- 10:38shown a long list of possible witnesses and people whose
- 10:41names may come up at the trial. It included Kid Coody,
- 10:45who was named in Ventura's lawsuit as a target of
- 10:47an alleged arson incident orchestrated by Colms. Among other testimony
- 10:52expected during the trial, prosecutors told jurors they would hear
- 10:56from another girlfriend of Colms, refer to as Jane. They
- 11:00said Combs force her to perform in freak offs, videotaping
- 11:04the events and then blackmailing her with the videos. Jurors
- 11:08will also hear from a former employee of Combs who
- 11:11will testify that her boss forced himself on to her
- 11:14sexually on more than one occasion, Johnson said. Janey Kingsbury
- 11:19reported from Washington. The next article from to Day's front
- 11:23page is entitled In Israel, U s snubs provoke panic
- 11:29as Trump repeatedly sidelines net Yahoo, Anxious leaders perceive crack
- 11:33and relationship by Jerry she from Jerusalem. During his first
- 11:39major overseas trip this week, President Donald Trump is set
- 11:43to visit three countries in the Middle East, Saudi Arabia, Kutar,
- 11:47and the United Arab Emirates without stopping in Jerusalem. It's
- 11:52not the first time he has bypassed Israel or Prime
- 11:55Minister Benjamin Netan Yahoo, from embarking on nuclear talks with
- 12:00Iran to attempting hostage talks with Hamas without Israel's knowledge.
- 12:04Trump has increasingly sidelined at Yahoo, stoking anxieties in a
- 12:09country long accustomed to being consulted by successive US administrations.
- 12:15Last week, Israelis thought they saw more cracks emerge between
- 12:18the America first president and Israel after Trump said he
- 12:23had struck a truce with Yemen's Houthy rebels that curbed
- 12:26the group's attacks on US ships but did not cover Israel.
- 12:31Days later, reports emerged that Trump was considering offering Saudi
- 12:34Arabia access to civil nuclear technology without demanding that the
- 12:39Kingdom normalized relations with Israel, a precondition that had been
- 12:43set by President Joe Biden. On Sunday, senior Hamas leader
- 12:48Khalil al Haya said the group would release Israeli American
- 12:51hostage Eden Alexander following direct talks with US officials. Now
- 12:57many Israelis are wondering whether Israel is a next U
- 13:00s Ally to be left behind by a president they
- 13:04considered just months ago to be the most pro Israel
- 13:07in history. It's disconcerting, said Michael Oran, a former Israeli
- 13:12ambassador to Washington. It's total panic, said Shaloon Lifner, a
- 13:17former Netann Yahoo aid and a fellow at the Atlantic Council,
- 13:21describing the mood in Jerusalem. Is rated. Concerns about Trump's
- 13:25negotiations with Ran and other threats to Israel are not
- 13:29being taken into account, or if they are, they're dismissed,
- 13:33said Denis Ross, a former senior State Department official, who
- 13:36served as Middle East envoy under both Democratic and Republican presidents.
- 13:42Voices in the Trump administration who advocate for fewer U
- 13:45S military entanglements in the Middle East are in the ascendancy.
- 13:49Ross noted, while Trump is likely to put top priority
- 13:53during his trip on bringing billions of dollars of investments
- 13:56from wealthy Persian Gulf monarchies to the United States, what
- 14:00you're seeing is that President Trump has an idea of
- 14:03what is in our interests, and that comes first. Ros said.
- 14:07He defines the nature of our interests abroad not through
- 14:10a geopolitical or security context, but an economic, financial, and
- 14:15trade frame. I think President Trump might have the view
- 14:18that we give them four billion a year in military assistance.
- 14:22I do plenty to support the Israelis. In an interview
- 14:26that aired Thursday, the new U s Ambassador to Israel,
- 14:29Mike Huckabee, pushed back on the assertion that the administration
- 14:33was overlooking Israeli concerns and told an Israeli television channel
- 14:38that the United States isn't required to get permission from
- 14:41Israel to reach a cease fire with the Hoothys. A
- 14:44day later, Huckabee took to his ex account to denounce
- 14:47what he described as reckless and irresponsible media reports that
- 14:52suggested Trump and net Nyahoo were not getting along in Israel.
- 14:57To day, the soaring anxieties mark a sharp re bursa
- 15:00from November, when many celebrated Trump's selection net nyahou hailed
- 15:05it as history's greatest comeback. Ministers in his far right
- 15:09cabinets saw a green light for expansionism and immediately called
- 15:13for the annexation of the occupied West Bank, along with
- 15:17unfettered warfare and new Jewish settlements in Gaza. But the
- 15:22mood began to shift even before Trump's inauguration. Privately, some
- 15:27netan Yahoo allies groused about Trump's Special Envoy to the
- 15:30Middle East, Steve Whitcock, pressuring net Yahoo into a ceasefire
- 15:34agreement with Homas, and claimed that Wickkof was influenced by
- 15:38personal business ties with Qatar. Others began to fear that
- 15:42Trump's preference for deal making would preclude a military strike
- 15:45on Iran or result in a nuclear cord that would
- 15:49allow Aoran to keep some uranium and Richmond capabilities in
- 15:53the Oval Office. In April, Trump announced in front of
- 15:56net Yahoo and the assembled press that the US would
- 16:00hold direct talks with Iran over its nuclear program. The
- 16:04Israeli Prime Minister, who has pushed US leaders for more
- 16:07than a decade to use military force to dismantle Iran's
- 16:11nuclear facilities, glanced away, appearing visibly surprised. One Trump adviser,
- 16:18who described Trump's treatment of Netanyahu as one notch above
- 16:22his fractious White House meaning with Ukrainian President Volodimir Zelenski
- 16:26three months ago, said influential MAGA voices have worked throughout
- 16:30the spring to resist efforts by pro Israel lobbying groups
- 16:34and neo conservative Republicans to install Iran hawks and others
- 16:38seen as overly sympathetic to net Yahou in key national
- 16:42security posts. Former National Security Advisor Mike Waltz was removed
- 16:48from his position after he appeared to have engaged in
- 16:51intense coordination with Netanyahu about military options against Iran, which
- 16:56anger Trump. The Washington Post reported this month. In Maga
- 17:00were not bebe fans, said the Trump adviser, using Netnyahu's nickname,
- 17:06Trump is adamant he wants people to put the guns down.
- 17:10The adviser, like several others cited in this article, spoke
- 17:13on the condition of anonymity to talk frankly about relations
- 17:17between the two leaders. The rise of an Israel skeptic
- 17:20wing in Washington, particularly within a Republican party that is
- 17:24traditionally seen as close to Israel, poses a new challenge.
- 17:29Israeli officials and analysts say. For decades, when American presidents,
- 17:34from Republican George H. W. Bush to Democrat Barack Obama
- 17:38have clashed with Israel on matters ranging from West Bank
- 17:42settlement policy to strategy toward Iran, Israel has depended on
- 17:46its supporters in Congress to push back. And yet, even
- 17:50after net Nyahu and some of Israel's supporters threw their
- 17:54weight behind Trump, a number of Republican lawmakers allied with
- 17:58the President, such as represented of Marjorie Taylor Green Republican
- 18:02from Georgia, are increasingly turning away from Israel, leaving it
- 18:06without recourse. In Congress. There is more and more criticism,
- 18:11with people saying we put all our eggs in one
- 18:13basket and now we are empty handed, said Amid Sigel,
- 18:17a prominent Israeli political analyst. Well will Israel do now,
- 18:22call Representative Alexandria Ocassio Cortez it's a problem. For their part,
- 18:29Net Nyahu allies have downplayed any rifted between the US
- 18:33and Israeli leaders. One member of net naho'se Lecud party
- 18:37said the anxieties in Israel were simply due to mismatched expectations.
- 18:42Many people were so happy it wasn't Kamala Harris that
- 18:46they thought Trump would be an American president from the
- 18:48Leaikud party who would do whatever Israel wanted. Said that ally,
- 18:53but those expectations were never realistic, and I think the
- 18:56Prime Minister has always understood that. Another Israeli official praise
- 19:01Trump for providing heavy munitions to the Israeli military and
- 19:05said that while Biden administration officials had frequently pressured Israel
- 19:10to allow more humanitarian aid in Nagaza, Trump made no
- 19:14such requests during the first few months of his term. Still,
- 19:18even the perception of net Yahoo losing favor with Trump
- 19:22could dent a veteran Israeli premier who has staked his
- 19:25public image on being able to navigate and influence American
- 19:29politics better than any of his domestic rivals. During hard
- 19:34fought parliamentary elections in twenty nineteen, net Yahou unfurled a
- 19:39massive billboard along tel Aviv's main highway showing him shaking
- 19:43hands with Trump above the tagline net Yahoo in a
- 19:47different league. A campaign video released by Laikoud showed net
- 19:51Yahoo pledging to move the US embassy from tel Aviv
- 19:55to historically contested Jerusalem, and then jump cut to Trump
- 19:59announcing precisely that. But a year later, net Nyahu angered
- 20:04Trump by announcing that he would annex parts of the
- 20:07occupied West Bank, contributing to the collapse of a Middle
- 20:10East peace plan that Trump had touted as the deal
- 20:14of the century. Net Naho infuriated Trump further by congratulating
- 20:19Biden on his election victory while Trump was disputing the results,
- 20:23the president recounted in interviews with Axios in twenty twenty one.
- 20:28In recent days, net Nyahu's opponents seized on the moment
- 20:31to question his handling of U S relations. Yere Lapede,
- 20:35the centrist opposition leader, called the direct negotiations between the
- 20:39United States and Hamas over hostages a disgraceful diplomatic failure
- 20:45by net Yahoo and said the responsibility for their return
- 20:49lies with the government. Air Galan, the leader of the
- 20:53left leaning party, said the Americans are moving forward on
- 20:56a deal with Assadi's moving forward on a deal with Iran,
- 21:00moving forward on a new multi billion dollar regional plan,
- 21:04but ignoring net Yahoo and Israel Orn, the former Israeli ambassador, said,
- 21:10many in Israel forget that Trump is not a fan
- 21:12of settlements. He was against annexation of the West Bank
- 21:16and espoused a two state plan during his first term.
- 21:20Some very influential pro Israel voices are no longer in
- 21:24the White House, or An added, Let's be realistic. Azim
- 21:28Belusha in Toronto contributed to this report. Next from to
- 21:33Day's front page. U S and China to slash tariffs
- 21:37as recession fears ease, stock surge, long term uncertainty lingers.
- 21:43With ninety day deal by David J. Lynch and Apa Pattarai,
- 21:48the United States and China agreed to lower their triple
- 21:51digit tariffs for ninety days in a diplomatic breakthrough that
- 21:54sends stock's soaring and jump started stall Transpacific trade flows.
- 21:59Even asked questions linger over hopes for a lasting settlement.
- 22:04Treasury Secretary Scott Bessant, speaking Monday in Geneva after two
- 22:08day talks with Chinese officials said both governments had agreed
- 22:12to drop their import taxes by one hundred fifteen percentage points.
- 22:16The decision lowered u S tariffs on many Chinese goods
- 22:20from at least one hundred forty five percent to a
- 22:23still high range of around forty percent to sixty percent,
- 22:27including levies imposed by President Donald Trump this year and
- 22:30during his first term. Wall Street welcomed the move. The
- 22:35S and P five hundred index rose Monday by more
- 22:38than three percent, and the tech heavy Nasdaq jumped four percent,
- 22:42officially entering a bull market. Economists grew optimistic that the
- 22:47United States may dodge a recession this year, while embattled
- 22:51US importers moved to capitalize on the terra pause. J Foreman,
- 22:56chief executive of Basic Fund, called his Chinese suppliers at
- 23:00four thirty a m Monday, right after learning of the
- 23:03tariff deal and ordered them to resume shipments of Tonka trucks,
- 23:07care Bears, Life Rights, and other classic toys. The reprieve
- 23:11helped a bird a planned furlough of forty percent of
- 23:14his workforce, but even the lower terraffs will force foremen
- 23:18to raise retail prices and accept shrunken profits. It's like
- 23:23they tried to feed us a rotten egg sandwich and
- 23:25hope we're happy to drink spoiled milk instead. He said.
- 23:29We are going from possibly losing our company and going
- 23:32out of business to just losing our profits for the year.
- 23:37The trade war ceasefire eases concerns about the slowing US economy.
- 23:42Kathy Postianchik, chief economists for Nationwide, said growth in the
- 23:46final three months of the year could reach an annual
- 23:49rate of one percent, up from her previous estimate of zero.
- 23:53Thanks to the administration's tariff climb down, Inflation will peak
- 23:57at a three point four percent rate, down from a
- 24:00previous forecast of four percent. She said the rush by
- 24:04US businesses to import Chinese goods over the next ninety
- 24:07days is likely to strain supply chains that had begun
- 24:11adjusting to a dramatic decline in US China trade caused
- 24:15by the ultra high terrace. Trump composed in early April,
- 24:19even as cargo volumes dipped during the US China standoff,
- 24:22Though logistics companies were preparing for an eventual resumption of
- 24:26trade in March, importers at the Port of Los Angeles
- 24:30sent two hundred sixty nine thousand, eight hundred ninety eight
- 24:34empty shipping containers back to Asia, up twenty three percent
- 24:38from the same month last year, so they could fill
- 24:41them with Chinese goods once tariffs dropped. Still, it will
- 24:46take time for the normal flow of goods to resume
- 24:50at the LA port. The nation's busiest officials do not
- 24:53expect an immediate surge of arriving cargo. In recent days.
- 24:58Ocean carriers came anseled seventeen of eighty scheduled stops this
- 25:03month at the principal gateway for Asian goods to enter
- 25:06the United States. Some carriers serving the port moved their
- 25:10larger vessels to other trade routes and replace them with
- 25:13smaller ships. It is still a four to six week
- 25:17turnaround before those vessels get repositioned into place. Manufacturing kicks,
- 25:22back up orders are placed, so you're not looking at
- 25:26cargo arriving for another month and a half two months,
- 25:29said Robert Loyer, chief operating officer of CHIGS Logistics in Fresno,
- 25:34speaking before the tariff deal was announced. Shipping rates from
- 25:38China to the West Coast are likely to rise as
- 25:41the rush to move stockpiled products from Chinese factories collides
- 25:45with reduced space on contenter ships, said Brianborg, Global chief
- 25:50commercial officer for Saco Logistics in Chicago. One's vessels are
- 25:54brought back to trans Pacific cargo routes, Freight costs could
- 25:58ease once the equipment is repositioned. We very well could
- 26:03see a seesaw affect, he said. The Trump administration's rapid
- 26:07rep approachment with Beijing, which came amid signs of a
- 26:11growing trade war toll, represents a striking turnaround. The President
- 26:16has been fiercely critical of China, accusing it of ripping
- 26:21us off on trade for decades. But in Geneva, the
- 26:25Cent and Jamison Greer, the U S Trade representative, spoke
- 26:29warmly of Chinese diplomats and said the two sides had
- 26:32quickly found common ground. Both sides represented their national interests well,
- 26:38but we also concluded that we had shared interests and
- 26:42that neither side was interested in decoupling. The Scent said,
- 26:46we leave to day with a process that will move
- 26:48forward and again great mutual respect for our Chinese counterparts.
- 26:53I believe they showed us the same. The plan began
- 26:57a new round of bilateral discussions, however, recalled earlier US
- 27:01China talks that disappointed under several presidents of both parties.
- 27:06During Trump's first term, his AIDS openly disparaged such dialogues
- 27:10as pointless talking shops that the Chinese exploited to delay
- 27:14addressing US concerns. Scott Kennedy, a China specialist at the
- 27:18Center for Strategic and International Studies, said the administration has
- 27:23been unclear about his primary objective with China. Officials have
- 27:27spoken of reducing the bilateral trade deficit, constraining Chinese industrial
- 27:32policies that favor exporters, or decoupling the two intertwined economies.
- 27:38The administration is still not very clear which of these
- 27:41three goals is what they're actually pursuing. Kennedy said, each
- 27:45requires a different Chinese response, and the administration needs to
- 27:50clarify exactly what they want and what they're willing to
- 27:53give to get that. The unexpected negotiating breakthrough in Geneva
- 27:59exceeded a less expectations for potential tariff reduction. As we
- 28:03Send and Greer headed to Switzerland last week, the president
- 28:07posted on truth social that reducing tariffs on Chinese goods
- 28:11to eighty percent quote sounds right. Businesses applauded the larger
- 28:16than expected reduction that emerged from the weekend talks, but
- 28:19complained that Trump's frequent contradictory tariff pronouncements have saddled them
- 28:24with higher costs and confusion. The federal government collected fifteen
- 28:29point six billion dollars in net customs duties in April,
- 28:32almost twice at previous month's total, the Treasury Department said Monday.
- 28:37During the current fiscal year, which began October first, importers
- 28:41have paid Washington nearly sixty billion dollars in tariffs, up
- 28:45from forty four billion dollars during the same period last year.
- 28:49Even after Monday's administration retreat, tariffs remain historically high. The
- 28:55effect of U S tariff on Chinese goods will be
- 28:57forty one percent as of Wednesday, up from eleven percent
- 29:01when Trump was sworn in for his second term. According
- 29:04to the consultancy Tenniel, China's terrify on U S goods
- 29:08will be twenty eight percent, twice its level at the
- 29:11beginning of twenty twenty five. Overall, US taxes on imports
- 29:15from all countries stand at the highest mark since the
- 29:18nineteen thirties, according to the Budget Lab at Yale University.
- 29:23Drew Kleaver, who owns a company that makes clothing hangers
- 29:26in China, has been paying twenty eight point four percent
- 29:30duties on his products since Trump's first term. Recent escalations, though,
- 29:35had made tariff calculations so confusing that Cleaver resorted to
- 29:40asking chat g p T to determine how much he owes.
- 29:44On Monday, the artificial intelligence chatbot's latest estimate suggested that
- 29:49Kleaver faced an import tax between forty eight point four
- 29:53and fifty eight point four percent. At those rates, Cleaver
- 29:57said he can't afford to replenish his stock, which quickly dwindling.
- 30:01He stopped advertising and wonders if he should move production
- 30:04to Mexico. The administration's deal with China left him unimpressed.
- 30:10We created a fake problem, and now we have a
- 30:12fake solution, he said, But everyone's still worse off. The
- 30:17administration's ninety day clock also leaves open the possibility that
- 30:21tariffs could rise again later this summer. As Trump prepared
- 30:25to leave on a four day Middle Eastern trip, he
- 30:28told reporters that tariffs could go substantially higher if no
- 30:32deal is reached by the deadline. At the same time,
- 30:36the President said he expects that a deal will be reached,
- 30:39and Besin suggested in Geneva that so long as the
- 30:43Chinese engaged in good faith, the pause could be extended.
- 30:47Our next article from today's front page is entitled gifted
- 30:51Katar plane would need extensive security updates by Natalie Allenson,
- 30:57Ellen Nakashima, Dan Mamoeuf, Derreck Hawkins, and Warren P. Strubble.
- 31:03President Donald Trump on Monday praised Gutar for offering his
- 31:07administration a free luxury jet, but current and former U.
- 31:11S Military, defense, and Secret Service officials said he will
- 31:16likely have to waive existing security specifications to be able
- 31:20to use the plane. Trump said he would be a
- 31:23stupid person not to accept the gift of a four
- 31:26hundred million dollar Bowing seven forty seven eight and called
- 31:30it a great gesture by Qatar. The President said that
- 31:34he intended to use the plane for a couple of
- 31:36years while his administration waits for pair Boeing planes to
- 31:40be completed to the strict military standards befitting Air Force one.
- 31:45A White House official said it was premature to say
- 31:48how long upgrades to the Katari plane could take The official,
- 31:53who was not authorized to discuss the matter publicly and
- 31:56spoke on the condition of anonymity, like others interviewed, also
- 32:00declined to say when the Trump administration expects to take possession.
- 32:05Flight records show that the Katari jet was moved five
- 32:08weeks ago to San Antonio International Airport, suggesting that preparations
- 32:12for improvements might already be under way. The Wall Street
- 32:16Journal first reported this month that Trump had commissioned defense
- 32:20contractor L three Harris to retrofit the Katari plane in Texas.
- 32:25ABC News reported Sunday that the plane would be transferred
- 32:29to the Trump administration as a gift. The lavishly appointed
- 32:33double decker jet, originally purchased for use by the Katari
- 32:37royal family, left Doha on March thirty, making and stop
- 32:41at Charles de Gaulle Airport in Paris and then at
- 32:45Bangor International Airport in Maine on April second, according to
- 32:48Ian Petchinik, a spokesman for the fly tracking service flight
- 32:52Radar twenty four. The plane then flew to San Antonio
- 32:56the next day. Trump emphasized Monday that the Katar Jet
- 33:00is a significantly newer plane than the ones currently available
- 33:03for the president's use, which, although fitted with state of
- 33:07the art defensive countermeasures, in flight refueling capability, and secure
- 33:12communications equipment, date to the George H. W. Bush administration
- 33:16in the nineteen nineties. You know, we have an Air
- 33:20Force one that's forty years old, and if you take
- 33:22a look at that compared to the new plane, it's
- 33:25not even the same ballgame, Trump told reporters. You look
- 33:28at some of the Arab countries and the planes they
- 33:30have parked alongside of the United States of America plane,
- 33:34It's like from a different planet. The Katari jet boasts
- 33:38two full bathrooms, nine laboratories, a main bedroom and a
- 33:41guest bedroom, multiple lounges, a private office, and cream and
- 33:46tan colored leather seating on both decks, according to photos
- 33:49of the interior provided by the Swiss aviation company AMAC Aerospace,
- 33:55but retrofitting the thirteen year old aircraft to current Air
- 33:59Force one requirements would take years of work and billions
- 34:02of dollars. Current and former US official say such a
- 34:06task would be impossible to complete before Trump leaves office.
- 34:11The Air Force referred comment to the White House and
- 34:14the Secret Service. Declined to comment. Al three Harris also
- 34:18declined to comment. Securing a new modern Air Force One
- 34:23is such a priority for the President that he has
- 34:26on display in the Oval Office a model of one
- 34:29of the planes Boeing was contracted to deliver, finished with
- 34:32his preferred dark blue paint trim. After debuting the model
- 34:36during his first term, Trump displayed it at Mara a
- 34:39Lago after leaving office, before returning it to a coffee
- 34:42table in the White House. At his Commander in chief
- 34:46inaugural ball in January, Trump cut a saber into a cake,
- 34:50a top which rested the model playing The White House
- 34:54official said Qatar offered to donate a plane to the
- 34:57Department of Defense, but that the gift would not be
- 35:00accepted by Trump this week during his visit to the country.
- 35:03Trump departed Monday on his first major foreign trip, which
- 35:07will include stops in Saudi Arabia, Qatar, and the United
- 35:11Arab Emirates. The President's jet has a raft of security,
- 35:16communications and support requirements that are highly classified and have
- 35:20proven costly and cumbersome. This is a flying nuclear hardened
- 35:25command post, said a former US official with knowledge of
- 35:29Air Force One operations. It has to have secure capability
- 35:33at multiple levels. The Air Force would have to rip
- 35:37open and rebuild the Katari plane, which has been flown
- 35:40for years in service of other countries and individuals, to
- 35:44bring it up to standard, said the official. Counterintelligence is
- 35:48also a concern, said former Air Force Secretary Frank Kendall.
- 35:52We would have to be sure nobody had planted bugs
- 35:55on the airplane. He said. High end communications have to
- 35:59be protected from jamming, cyber attacks, and nuclear blasts. Current
- 36:03and former official said, you'd pretty much have to take
- 36:07that plane back down to the skeleton and put it
- 36:10back together. Said Mac Plichik, a retired Secret Service agent
- 36:14who worked on President Barack Obama's detail, the security of
- 36:18every individual component is a big deal. Paul Eckloff, a
- 36:23former Secret Service agent who was a supervisor in Trump's
- 36:26first administration, said rigorous inspections are performed after all presidential
- 36:31transport vehicles leave the production line. The gifting of a
- 36:35plane from a foreign government would probably warrant an even
- 36:38harder look. Eckloff said, They're going to walk that thing
- 36:42inch to inch and say does this not belong here?
- 36:46Does this bolt belong here? Eckloft said, Trump can weigh
- 36:50any of this due diligence. Kendall said, he's the commander
- 36:54in chief. The only way he's going to be flying
- 36:56on this airplane while he's in office is if he
- 36:59waves a lot of these requirements. Trump has already stepped
- 37:03inside the Katari jet less than a month after his inauguration.
- 37:08The aircraft was brought to Palm Beach International from Doha
- 37:11on the morning of February fifteen, when Trump toured the
- 37:14plane for more than an hour on his way to
- 37:16play a Saturday round of golf. At the time, White
- 37:20House spokesman Stephen Chung said in a statement that Trump
- 37:24was examining the new hardware technology, noting that Boeing was
- 37:28running behind on delivering the new Air Force wines during
- 37:32Trump's first term. Boeing agreed to a fixed price three
- 37:36point nine billion dollar contract to deliver two modified Boeing
- 37:40seven forty seven airliners that would take on the Air
- 37:43Force one moniker when the President is on board, but
- 37:47delivery for the first of the two jets isn't expected
- 37:50until at least twenty twenty seven, and Boeing has incurred
- 37:53billions of dollars in cost overruns that it has had
- 37:56to absorb. Donald Trump is getting a plane that is
- 38:00outfitted for an emir, said Garrett Graff, a historian who
- 38:04has written about presidential security, referring to the Katari jet.
- 38:08The President would likely balk at dismantling some of the
- 38:11luxurious accommodations on board and replacing them with government issued equipment,
- 38:16said Graff, who described the gift as a counter intelligence nightmare. Trump,
- 38:21he noted, has signaled his interest in the plane since February,
- 38:25giving adversary intelligence services months to figure out ways to
- 38:29penetrate it. Trump's acceptance of the Katari plane comes after
- 38:33years of Pentagon frustration and skepticism about Boeing's ability to
- 38:38meet US government plans for the next Air Force one.
- 38:42Last week, senior Air Force officials told lawmakers that Boeing
- 38:46now projects the two planes originally scheduled to be delivered
- 38:50last year, may now be available by twenty twenty seven,
- 38:54as security parameters that originally were part of the project
- 38:57have been eased. Darling customs, a senior Air Force official,
- 39:02told a group of House Armed Services Committee members that
- 39:05she would not necessarily guarantee that date, and trade offs
- 39:09may be required to have the first aircraft available by then.
- 39:13A former senior Defense official with direct insight into the
- 39:16new Air Force one said Monday that failures at Boeing
- 39:20and the Pentagon have combined to put the executive branch
- 39:23in this position, with growing concerns about delays that were
- 39:27once wished away coming back to kick there a The
- 39:32contract for the new Air Force one jets signed with
- 39:35Boeing during the first Trump administration included a number of
- 39:39requirements that were quote gold plated, the former senior defense
- 39:43official set, noting significant requirements for electrical power, refrigeration units,
- 39:49and in flight medical capabilities. The program also calls for
- 39:53four engine design to increase redundancy. If there are mechanical failures.
- 39:58When you have all that stuff lined up, I just
- 40:01think it's almost an impossible task to get it done
- 40:04in time, the former senior defense officials said, questioning the
- 40:08Air Force's wisdom to stick with its requirements when problems
- 40:12first emerged. The official assess that from a technical standpoint,
- 40:17refurbishing the Katari jet can be done, but with no
- 40:20clear timeline and a limited supply of parts available for
- 40:23playing that is no longer in production. Boeing ceased production
- 40:27on the seven forty seven in January twenty twenty three.
- 40:32While Democratic officials were quick to condemn the conflict of
- 40:35interests presented by Trump accepting the plane from a foreign government,
- 40:39even Senator Lindsey Graham, Republican from South Carolina, a Trump
- 40:43ally told reporters on Monday that he wants to make
- 40:47sure that this whole thing is kosher, adding that time
- 40:51will tell. Whitehouse and administration officials maintained that the gift
- 40:56is in compliance with relevant laws, despite concerns being raised
- 41:00by Trump critics about a violating the Constitution's Emolument's clause.
- 41:06As discussions about the transfer of the plane were under way,
- 41:09the Justice Department's Office of Legal Counsel drafted a memo
- 41:13explaining why it thought Trump's receipt of the jet would
- 41:16be permissible. According to an official with knowledge of the memo,
- 41:20Attorney General Pam Bondy, who was registered to lobby on
- 41:23behalf of Qatar during Trump's first term, subsequently signed off
- 41:27on that memo. Trump said Monday that once he leaves office,
- 41:31he will not use the Katari check and that it
- 41:34will be transferred to his future presidential library. He suggested
- 41:38that the addition of a decommissioned Air Force one on
- 41:41display at Ronald Reagan's Presidential Library, a plane that had
- 41:44been in use by the government for nearly thirty years
- 41:47when it was retired, actually made the library more successful.
- 41:52Perry Stein, Ian Duncan, Aaron Schaeffer, and Jarrett Leigh contributed
- 41:57to this report. Next is an aham entitled States by
- 42:01the Snag a piece of one hundred billion dollar AI
- 42:05mega project by Caroline O'Donovan. Linda Tiso could sell the
- 42:10sixty three acre farm she grew up on in Kenosha,
- 42:13Wisconsin to a residential developer, but wants her inheritance to
- 42:17be part of an investment in the future. So when
- 42:21chat gep tea maker open ai launched a nationwide search
- 42:25for sites for Stargate, a one hundred billion dollar project
- 42:29building data centers for artificial intelligence, she and her husband
- 42:33offered to make a deal. We have some property for
- 42:36sale in Wisconsin, Tiso's husband wrote to an open ai
- 42:39staffer on LinkedIn. He highlighted the land's proximity to power
- 42:43lines and included a cell phone number. It's a good
- 42:47thing to be bringing here, Tiso told The Washington Post.
- 42:51The tisos who are still waiting for a call are
- 42:54players and a pageant of real estate developers, landowners, economic
- 42:58development agencies, and elected officials vying for a piece of Stargate,
- 43:03which is being promoted as a historic project needed to
- 43:07turbocharge American AI and fend off China. The project was
- 43:12announced by President Donald Trump in January and will include
- 43:16five to ten huge data centers stocked with powerful computer
- 43:20chips to support AI development. OpenAI and two of its partners,
- 43:25software maker Oracle and Japanese investment firm SoftBank Group, have
- 43:30said they aim to invest five hundred billion dollars into
- 43:33Stargate over the next four years. At the White House
- 43:37event where Stargate was announced, Trump said the project would
- 43:41create over one hundred thousand jobs almost immediately. OpenAI's global
- 43:46policy director Chris Lahane compared the potential benefits to American
- 43:51workers and the US economy as similar to the New
- 43:54Deal or the construction of the Transcontinental Railroad. In interviews
- 43:58with The Washington Post, state officials seeking to host the
- 44:02data centers hope to win tax revenue and job creation,
- 44:06and open ai has proposed side benefits such as free
- 44:10computing for public universities and AI help for local governments,
- 44:16but there are questions about how many data centers or
- 44:19jobs will materialize, and whether the tax abatements that governments
- 44:23offer companies to build such facilities are worth it. The
- 44:27search for suitable sites comes as local officials and residents
- 44:31have increasingly pushed back on data center projects, which involve
- 44:35large scale construction and require access to fiber optic cables, water, land,
- 44:42and power lines. States are divided over whether to court
- 44:47more the facilities or pump the brakes as some utilities
- 44:51struggle under data centers thirst for power and water, and
- 44:54it becomes clear they create relatively few long term jobs
- 44:59after construction is complete. Soft Bank CEO Masaoushi's son spoke
- 45:04about Stargate at a White House event on the economy
- 45:07last week, calling it the largest investment for infrastructure in
- 45:11the United States and the AI systems it will potentially
- 45:15power the future of mankind, but history shows that megascale
- 45:21development projects hyped by politicians sometimes do not come to
- 45:25fruition at all. In Trump's first term, he announced that
- 45:28electronics manufacturer Fox Con would build a multi billion dollar
- 45:32factory in Mount Pleasant, Wisconsin, but it never opened. In February,
- 45:38open Ai said at least sixteen states had shown real
- 45:41interest in Stargate. By April, the company said it had
- 45:45received two hundred and fifty SI proposals in at least
- 45:48twenty states. It will announce finalists as spring. When The
- 45:53Washington Post contacted the sixteen states for comment, most including Arizona, Nevada, Maryland,
- 46:00and West Virginia, declined to discuss their plans. Officials in Utah, Louisiana, Pennsylvania,
- 46:06and Oregon have taken meetings with project representatives to discuss
- 46:10the deal. According to documents obtained by the Post via
- 46:14public records requests. Progress appears to have been rapid in Pennsylvania,
- 46:19where in February, state officials discussed open AI's commitment to
- 46:24and forthcoming Stargate investments in the Pittsburgh area. According to
- 46:28emails between government staffers and open ai employees, no deal
- 46:33has been publicly announced. Oregon officials were also keen to
- 46:38be part of Stargate. Emails from February showed, but data
- 46:42center's unique needs mean they cannot be located just anywhere.
- 46:47In April, a spokesperson for Business Oregon told the Post
- 46:50that conversations with open Ai are ongoing, but the search
- 46:55for sites has not turned up any viable submissions. That's
- 46:59why open ai is conducting a nationwide search, according to
- 47:03spokesperson Liz Bourgeois, who said the company intentionally avoided structuring
- 47:08the site selection process as some kind of competition because
- 47:12we want Stargate to be a catalyst for reindustrialization throughout
- 47:16the United States. Mark Mureau, a senior fellow at the
- 47:21Brookings Institution, said regional governments joined their race for Stargate
- 47:25should be wary of giving away too many tax incentives
- 47:29as a compete for open AI's attention. Many of these
- 47:33kinds of bidding wars leave business capturing most of the benefit,
- 47:36he said overnight's success. Trump announced Stargate on the first
- 47:42full day of his second term at an Oval Office
- 47:45news conference with son of soft Bank, open Ai CEO
- 47:48Sam Altman and Oracle executive chairman Larry Ellison, who revealed
- 47:53in his remarks on the data center project that the
- 47:56first of them are under construction in Texas. The news
- 48:00of Trump's involvement reverberated in Abilene, the small West Texas
- 48:04town where Oracle had been building a data centered campus
- 48:07for some time. In a February town hall meeting, CEO
- 48:12Misty Mail of the Development Corporation of Abilene joked that
- 48:16the deal she had been working on for five years
- 48:19apparently has been an overnight success. The new attention prompted
- 48:24locals at city council meetings to ask pointed questions about
- 48:28tax incentives and whether pressure on the energy grid could
- 48:32produce fatal power outages like those caused by a twenty
- 48:36twenty one winter storm. Around the same time, Open AI
- 48:40and Oracle representatives started contacting state governments. E mails obtained
- 48:45by the Post showed an official in Louisiana said the
- 48:49state was very excited at the prospect of hosting Stargate.
- 48:53Government staffers in Utah expressed interest in attracting AI investment
- 48:58in the state. Cracle decline to comment on this story.
- 49:02The White House did not respond to a request for comment.
- 49:06Lhane said he and other staffers have also contended with
- 49:09a torrent of offers from landowners pitching their property. The
- 49:14company has encouraged some of them to reach out through
- 49:16formal email channels. Among the interested parties is Steve Carabin,
- 49:21a gas and oil engineer who owns land in Central Pennsylvania.
- 49:26It sits on natural gas reserves that he said are
- 49:29attractive to data center companies looking to buy the electricity
- 49:33for the cheapest price they can get it. He said.
- 49:36He believes a Stargate sized data center would bring tax
- 49:39revenue and employment to an economically depressed area. I hope
- 49:44Pennsylvania gets to participate, he said. Pennsylvania's government has been
- 49:50especially welcoming to open AI piloting chat cheept for the
- 49:54administrative work, and hosted La Hayne for a photo opportunity
- 49:58in March. Johanna Dobin, CEO of Private Public Enterprise, called
- 50:04the AI strike team that is trying to draw a
- 50:07tech investment to the Stay said, communities and the rest
- 50:10belt are eager for a project like Stargate. We have
- 50:14these old industrial steel sites sitting vacant in poor communities.
- 50:19These communities want data centers. They're not worried about pollution,
- 50:23they want taxes, and they want jobs, she said. People
- 50:27say it's not that many jobs, Well, there's nothing else
- 50:30going on here. The coast to coast interest in Stargate
- 50:34has similarities to Amazon's twenty eighteen search for a new headquarters.
- 50:39The company solicited dozens of proposals that saw cities and
- 50:43states compete to offer tax breaks and other incentives, but
- 50:47ultimately it shows bids from New York and Virginia. Neither
- 50:51office was fully built. Amazon foundered. Jeff Bezos owns a
- 50:56Washington Post. Patrick Edler, and a system professor at the
- 51:00University of Hong Kong who studied Amazon's competition, argues that
- 51:05such contests encourage cities and states to award huge tax
- 51:09and centers while simultaneously providing companies with development data that
- 51:14could otherwise be a bargaining ship. OpenAI appears to be
- 51:18angling for the same super useful information, he said. What's
- 51:23valuable is this insider knowledge about what sites can be
- 51:26packaged together to create a data center. He said, for example,
- 51:31regional governments can use local connections to learn which property
- 51:34owners are ready to sell tracts of land, information that
- 51:38can be of huge health to a data center developer.
- 51:41Lahanes at Stargate is not meant to pit states against
- 51:44one another in the way Amazon did, but acknowledged that
- 51:47the process provided open ai with a wealth of valuable
- 51:51connections and information, and as of this month, he has
- 51:55taken that search international, announcing an initiative called open AI
- 52:00for countries that aims to launch versions of Stargate abroad,
- 52:04which was first reported by The Financial Times. Pushback as
- 52:09data centers have pushed into semi rule or exurban communities
- 52:13in places like Missouri, Indiana, and Minnesota, some residents have
- 52:18organized against them, even halting developments. In Virginia, home to
- 52:24the greatest concentration of data centers in the country, residents
- 52:28routinely protest new construction, raising concerns about noise, pollution, and
- 52:33energy consumption. Some utilities and state officials are also trying
- 52:39to slow data center construction. Ohio, a state on Stargate's
- 52:43list whose officials declined to comment on this story, recently
- 52:47triggered a rush of data center projects with tax incentives
- 52:51such as a fifteen year break on sales tax, but
- 52:54the local power utility has warned it can't keep pace
- 52:58with demand. Lawmakers in California, where open AI is headquartered,
- 53:04have proposed legislation aimed at protecting ratepayers from electricity price hikes,
- 53:09while some municipalities in Arizona have banned new construction altogether.
- 53:14Oregon and Washington, long attractive to data centers seeking cheap
- 53:18hydroelectric power are likewise considering new rules for data center
- 53:23electricity rates and scrutinizing their energy use. Tech companies have
- 53:28said they believe technological solutions to these problems are on
- 53:32the horizon. There's a lot of questions about data centers
- 53:36as long term high quality development, said Murrow of the
- 53:39Brookings Institution. States and regions need to ask for more.
- 53:44In Abilene, stargate construction has contributed to a local shortage
- 53:48of electricians for commercial jobs. According to Sam Garcia, an
- 53:52insurance agent and the former president of Abilene's Hispanic Leadership Council,
- 53:57he worries that local officials mistaken life think an industry
- 54:01that thirst for efficiency gains will be a long term
- 54:04economic engine. You're a sleepy, little rural town. You're not
- 54:08going to become this big AI place. Garcia said, I
- 54:12think it's a lot of pr Andrea Jmenez contributed to
- 54:16this report and the final item on today's front page
- 54:20is entitled Order on drug costs offers plenty of threats,
- 54:24few details. Trump's directive unlikely to provide any relief in
- 54:29near term. By Daniel Gilbert, President Donald Trump signed an
- 54:34executive order Monday that aims to coax pharmaceutical companies into
- 54:39offering lower prices in the United States, taking a historically
- 54:43broad swipe at the cost of medicine, but without clear
- 54:46mechanisms for providing fast relief to American patients. The order,
- 54:51with little detail, targets drug pricing on a potentially broader
- 54:55scale than Trump did in his first administration, but his
- 54:58directive lacks tear that would compel lower prices in the
- 55:02near term. In a telling signal, the stock prices of
- 55:06numerous large pharmaceutical companies rose Monday, along with the rest
- 55:10of the market as it reacted to news of lower
- 55:13China teriffs. Experts said the plan lacks enough detail to
- 55:17determine whether patients would realize any tangible benefits, and pointed
- 55:22out it is likely to face core challenges. The order
- 55:25did not state whether the administration would be seeking lower
- 55:29prices in Medicare, Medicaid, or private insurance markets, or all
- 55:34of the above. In his remarks, Trump indicated he had
- 55:38an expansive vision. The cost for medicaid and Medicare, and
- 55:42just basically pharmaceuticals and drugs is going down at a
- 55:45level that nobody has ever seen before. Far from demonizing
- 55:50pharmaceutical companies for high prices. Trump focused his fire on countries,
- 55:55particularly in the European Union, for negotiating drug prices so
- 55:59low that they leave the United States to subsidize the
- 56:02global costs of innovation. He is directing his administration to
- 56:07investigate countries that quote extort drug companies by blocking their
- 56:11products unless they accept bottom line and very low dollar
- 56:15amounts for their product, unfairly shifting the cost burden onto
- 56:19American patients. In exchange for going to bat for pharmaceutical
- 56:23companies to get better pricing abroad, Trump expects them to
- 56:27offer most favored nations pricing, essentially the lowest cost of
- 56:31drugs paid by the wealthiest countries in the United States.
- 56:35The order directs the centers from Medicare and Medicaid services
- 56:39to share price targets with companies within thirty days. The
- 56:43President is demanding significant progress towards those targets, or he
- 56:47will direct his administration to impose lower prices pegged through
- 56:51the overseas rates. His order does not provide details or
- 56:55indicate what Trump would consider significant progress. An attempt to
- 56:59set prices in a pilot program during his first term
- 57:02in twenty twenty was held up in the courts and
- 57:05then abandoned by the Biden administration. While other countries directly
- 57:10negotiate with drug makers to lower prices, the United States
- 57:14generally has left it up to the companies to set
- 57:16their own price, with complex and opaque negotiations with industry
- 57:21middleman determining what Americans pay out of pocket. In targeting
- 57:25this international price disparity, Trump has zered in on a
- 57:29potent bipartisan political issue. So they're going to have to
- 57:33pay more for health care, and we're going to have
- 57:35to pay less, Trump said Monday. The order also calls
- 57:40for the Secretary of Health and Human Services to quote
- 57:43consider initiating a process to import more drugs from other countries,
- 57:48which Trump said would put dramatic downward pressure on prices
- 57:52by leaving room for companies to negotiate. The order was
- 57:56more favorable for pharmaceutical firms than Wall Street analysts expect.
- 58:01The order is out and overall is okay akshah Tawari,
- 58:05an analyst at Jeffrey's Research, wrote in a note to
- 58:08clients Monday, there's clearly no mechanism for implementing any m
- 58:13f M model. He wrote, referring to most favored Nations pricing,
- 58:17and due to the constraints of time, we will be
- 58:19unable to complete this item. This concludes the reading of
- 58:23the Washington Post for to Day, Tuesday, May thirteenth, twenty
- 58:28twenty five. Your reader for to day has been Cindy Fraser.
- 58:32If you have any questions, comments, or suggestions concerning this program,
- 58:36please feel free to call us at A five nine
- 58:38four two two six three nine zero. Thank you for listening,
- 58:42and now please stay tuned for continued programming on Radio
- 58:46E