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African nations that faced some of the steepest reciprocal tariffs from the Trump administration were given a moment of relief Thursday by the suspension of the duties, only for new uncertainties to hang over key businesses sending clothing and textiles, vanilla and fruit to the United States. Lesotho, Madagascar and South Africa were threatened with some of the highest tariff rates under U.S. President Donald Trumps plan. Lesotho, a tiny mountain kingdom, was stunned by the 50% duties that were due to come into effect Wednesday before Trump announced a 90-day pause on the levies. It was the second highest tariff rate after China. This will give us the opportunity to negotiate the reduction of tariffs so that the playing field is levelled, Lesotho Trade and Industry Minister Mokhethi Shelile said in response to the suspension. Its a serious issue for us, but we are tackling it head-on. Many like Lesotho had already sent trade delegations to Washington or were willing to negotiate, with some of their most important industries and tens of thousands of jobs hinging on the outcome. Lesotho makes American clothing brands Nearly half of Lesothos 30,000 clothing and textile workers depend on jobs making apparel for American brands like Levis, Nike, Reebok and others, which are exported to the U.S. Clothing and textiles is the biggest private employer in the country of just 2.3 million people. Lesothos most pressing problem is that regional competitors like Kenya and Eswatini had been assigned much lower tariffs for their exports some as much as 40% lower. Officials warned that the competitive disadvantage would likely shut down more than a dozen Lesotho factories and eliminate more than 12,000 jobs unless they can significantly reduce their 50% tariff rate in negotiations. The problem arises when countries like Eswatini receive a 10% tariff while were hit with 50%. These are the very countries we compete against, Shelile said. Lesothos clothing industry had braced itself for the 50% tariffs this week, with some saying it was the sector’s worst time since the COVID-19 pandemic. I dont fully understand whats happening, but I heard on the radio that our jobs are at risk, said machine operator Mareitumetse Lesia, who was on a lunch break during a nine-hour shift stitching together Levis jeans in one factory. I hope its not true. I know what its like to have nothing to eat. The world’s biggest vanilla producer In Madagascar, which produces 80% of the worlds vanilla, that industry felt better as soon as the tariffs suspension was confirmed, said Georges Geeraerts, the president of the Madagascar Vanilla Exporters Group. Madagascar had faced 47% duties on exports to the U.S. But there were other complications. Exporters were now rushing their vanilla to the U.S. by far Madagascars biggest market in the hope that it would arrive while tariffs are still suspended. Cargo ships take 70-90 days to reach the U.S. from the Indian Ocean island and exporters didnt know what duties might be imposed when the product got there given the abrupt changes in policy by the Trump administration. All our American customers have been asking us since this morning to load the vanilla onto the cargo ships, so that we can meet the deadlines, said one exporter, who spoke on condition of anonymity because they weren’t authorized to speak publicly about the orders. A 25-year-old trade agreement facing termination South Africas citrus industry said the original 30% tariffs for its country had threatened 35,000 jobs and the economies of entire towns that are geared to exporting oranges and other citrus fruits to the U.S. when they are out of season in North America. The suspension of the reciprocal tariffs gave South Africa’s biggest agricultural export breathing space, said Citrus Growers’ Association of Southern Africa CEO Boisthoko Ntshabele. But they also faced the new reality that the first citrus fruit of the year going to the U.S. this week from South Africa would be taxed at the 10% across the board tariff the U.S. has kept in place still a significant blow, though less severe than the 30% duties initially announced. South African citrus had previously been given tariff-free access to the U.S. under the 25-year-old African Growth and Opportunity Act that benefits dozens of African nations. Many fear that agreement will not be renewed when it expires in September. South African Trade Minister Parks Tau said it would be very difficult to keep AGOA given the Trump administration’s stance. Ntshabele said South Africa’s citrus growers were urging that their product be exempt from tariffs given they worked in tandem with U.S. farmers to provide fruit to American consumers at different times of the year. South African citrus growers do not directly threaten the jobs or incomes of citrus growers in places like California, Florida and Texas, Ntshabele said. Gerald Imray, Associated Press Associated Press writers Keketso Phakela in Maseru, Lesotho; and Sarah Tetaud in Antananarivo, Madagascar, contributed to this report.
Category:
E-Commerce
Nokia Bell Labs has a long, storied historyproducing Nobel Prize winners, creating innovative new technologies, and bolstering critical infrastructure that underlies most of the devices we all use every day. This week, it held a special event at its Murray Hill, New Jersey campus to celebrate its 100th anniversary, and it featured appearances by politicians like New Jersey Governor Phil Murphy, business leaders, and even a robot named Porcupine. The expansive campus houses a number of laboratories where, over the past century, numerous groundbreaking discoveries and inventions have been made or perfected, including cell phones, transistors, and solar cells. Nokia acquired Bell Labs in 2016 when it purchased Alcatel-Lucent. The vast complex is mostly empty now, as it was built for a time when thousands of workers would fill its labs and offices. As a part of the anniversary celebrations, Fast Company was able to get a behind-the-scenes tour of the complex, and several of the projects and laboratories that are working on new and advancing technologieslabs that are typically shut away from the public eye. Despite Bell Labs relatively small in-office workforce, there are still researchers and scientists toiling away on numerous projects, which include augmenting undersea data cable technology, creating real-time AI platforms to increase mining operations, and new tech related to telecommunications devices and arrays. This is all largely tech that flies under the publics radar, but is critical for supporting cell phones and wireless internet works. For example, because of the work thats been done at Bell Labs and other facilities over the past couple of decades, much of our wireless and telecom infrastructure was able to handle the surge in demand due to the pandemic, when much of work and schooling was done remotely. If the pandemic had occurred a decade earlier, one researcher said, it would have crippled us. There was also a demonstration related to Nokias ongoing Industrial GPT research, which includes training robots to understand and react to voice commands. One demonstration even included a robot named Porcupine that has the ability to find specific containers in a warehouse-like setting or figure out if inventory is missing, and how to replace it. The company is also hard at work on quantum computing projects, which have massive potential, if ever fully realized. Michael Eggleston, a physicist and Research Group Leader at Nokia, says that despite what some business leaders say, quantum computers are real, and theyre here. However, there are many different types that can be used for different aims. Whether or not the technology convergesthats the big question, he says. In effect, Eggleston and others are working on perfecting the underlying quantum technology before bringing quantum computing products and services to the market, where they stand to exponentially increase computing power across the boardsomething that could potentially dwarf the changes AI tech has recently brought to the world. The event also served as something of a swan song for the Bell Labs complex, as Nokia is preparing to transplant its labs and researchers to the new HELIX complex in nearby New Brunswick. That move is planned to be completed by 2028.
Category:
E-Commerce
House Republicans narrowly approved their budget framework Thursday, a political turnaround after Speaker Mike Johnson worked into the night to satisfy GOP holdouts who had refused to advance trillions of dollars in tax breaks without deeper spending cuts. Johnson stood with Senate Majority Leader John Thune early in the morning at the Capitol to shore up President Donald Trumps “big, beautiful bill, and they committed to seeking at least $1.5 trillion in cuts to federal programs and services. The speaker had abruptly halted voting Wednesday night. I told you not to doubt us, Johnson, R-La., said afterward. He acknowledged the week’s economic turmoil with the financial markets a little unstable, but said the House vote was a big day.” The 216-214 vote pushed the budget plan forward, one more milestone for Johnson, and next step in a lengthy process to unlock the centerpiece to the presidents domestic agenda of tax cuts, mass deportations and a smaller federal government. A failed vote, particularly as the economy was convulsing over Trumps trade wars, would have been a major setback for the party in power in Washington. Two conservative Republicans voted against it, as did all Democrats. Trump, at a black-tie fundraising dinner this week, had admonished Republicans to “stop grandstanding on the budget. By Thursday morning, Trump had shifted his tone. Biggest Tax Cuts in USA History!!! Getting close, Trump said. The House action still leaves weeks, if not months, ahead, on a final product, with more votes in Congress. Johnson could lose only a few detractors from his slim Republican majority. Democrats, in the minority, lack the votes to stop the package, but they promised to fight every step of the way. House Democratic leader Hakeem Jeffries of New York said the GOP budget plan was a toxic scheme that proposed the largest cuts to the Medicaid health care program and food assistance in the nation’s history all in service of enacting massive tax breaks to their millionaire donors, like Elon Musk. The businessman is leading Trump’s cost-cutting efforts through the Department of Government Efficiency. Jeffries said Democrats will push back until they bury this budget resolution in the ground. But late Wednesday, the outcome was in flux. At least a dozen conservative Republicans, if not more, were firmly against the plan. Several of them, including members of the ultraconservative Freedom Caucus, made the unusual move of walking across the Capitol to meet privately with Senate GOP leaders to insist on deeper cuts. As night fell, Johnson pulled a group of Republicans into a private meeting room as House proceedings came to a standstill. They stayed into the night hashing out alternatives, and were back at it in the morning. Johnson said he spoke with Trump for about five minutes while the GOP meeting was taking place. The president is very anxious for us to get this done, Johnson said. But House GOP conservatives, including several of those who met with Trump this week, were concerned that the Senate GOP’s blueprint, approved last weekend, did not cut spending to the level they believe necessary to help prevent soaring deficits. The Math Does Not Add Up, Rep. Chip Roy, R-Texas, had posted earlier on social media. Rep. Andy Harris, R-Md., the Freedom Caucus chair, led others to meet with the senators. In the end, Harris, Roy and almost all the holdouts came on board. They said they were assured by Johnson, Thune and Trump that there would be steep cuts ahead. Republican Reps. Thomas Massie of Kentucky and Rep. Victoria Spartz of Indiana voted no. We got as much as we could, said Rep. Tim Burchett, R-Tenn. We realized it was bigger than us.” Before the vote, Thune, R-S.D., tried to assure House conservatives that many GOP senators were aligned with their pursuit of spending reductions. We certainly are going to do everything we can, Thune said. But the details ahead will matter. Key Republican senators already signaled their disapproval of some $800 billion in House-proposed cuts that could hit Medicaid and other vital programs. Johnson insisted that the health care and other services that millions of Americans rely on, particularly Medicare, Medicaid and Social Security, would be spared. Republicans instead are seeking to impose new restrictions on benefits and cut what they portray as waste, fraud and abuse, following DOGE’s efforts. The House and Senate are at the beginning phase of a process as they turn their budget resolutions into legislative text a final product expected later this spring or summer. Central to the budget framework is the Republican effort to preserve the tax breaks approved in 2017, during Trump’s first term, while potentially adding the new ones he promised during his 2024 campaign. That includes no taxes on tipped wages, Social Security income and others, ballooning the price tag to some $7 trillion over the decade. The package also allows for more than $500 billion in budget increases, including some $175 billion to pay for Trump’s deportation operation and as much for the Defense Department to bolster military spending. The plan would also raise the nation’s debt limit to allow more borrowing to pay the bills. Trump had wanted lawmakers to take the politically difficult issue off the table. With debt now at $36 trillion, the Treasury Department has said it will run out of funds by August. But the House and Senate need to resolve their differences on the debt limit, as well. The House GOP increases the debt limit to $4 trillion, but the Senate lifted it to $5 trillion so Congress would not have to revisit the issue again until after the midterm elections in November 2026. To clip costs, the Senate is using an unusual accounting method that does not count the costs of preserving the 2017 tax cuts, some $4.5 trillion, as new spending, another factor that is enraging the House conservatives. Lisa Mascaro and Kevin Freking, Associated Press Associated Press writers Mary Clare Jalonick, Stephen Groves, Leah Askarinam, and Matt Brown contributed to this report.
Category:
E-Commerce
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