logo
Trump administration imposes limits on Mexican flights and threatens Delta alliance in trade dispute

Trump administration imposes limits on Mexican flights and threatens Delta alliance in trade dispute

Yahoo19-07-2025
The Trump administration imposed new restrictions Saturday on flights from Mexico and threatened to end a longstanding partnership between Delta Air Lines and Aeromexico in response to limits the Mexican government placed on passenger and cargo flights into Mexico City several years ago.
Transportation Secretary Sean Duffy said Mexico's actions to force airlines to move out of the main Benito Juarez International Airport to the newer Felipe Angeles International Airport more than 30 miles away violated a trade agreement between the two countries and gave domestic airlines an unfair advantage. Mexico is the top foreign destination for Americans with more than 40 million passengers flying there last year.
"Joe Biden and Pete Buttigieg deliberately allowed Mexico to break our bilateral aviation agreement,' Duffy said of the previous administration. 'That ends today. Let these actions serve as a warning to any country who thinks it can take advantage of the U.S., our carriers, and our market. America First means fighting for the fundamental principle of fairness.'
All Mexican passenger, cargo and charter airlines will now be required to submit their schedules to the Transportation Department and seek government approval of their flights until Duffy is satisfied with the way Mexico is treating U.S. airlines.
It's not immediately clear how Duffy's actions might affect the broader trade war with Mexico and negotiations over tariffs. A spokesperson for Mexico's President Claudia Sheinbaum didn't reply immediately to a request for a comment, and she didn't mention the restrictions at an event Saturday.
Delta and Aeromexico have been fighting the Transportation Department's efforts to end their partnership that began in 2016 since early last year. The airlines have argued that it's not fair to punish them for the Mexican government's actions, and they said ending their agreement would jeopardize nearly two dozen routes and $800 million in benefits to both countries' economies that come from tourism spending and jobs.
'The U.S. Department of Transportation's tentative proposal to terminate its approval of the strategic and pro-competitive partnership between Delta and Aeromexico would cause significant harm to consumers traveling between the U.S. and Mexico, as well as U.S. jobs, communities, and transborder competition," Delta said in a statement.
Aeromexico's press office said it was reviewing the order and intended to present a joint response with Delta in the coming days.
But the order terminating approval of the agreement between the airlines wouldn't take effect until October, and the airlines are likely to continue fighting that decision.
The airlines said in a previous filing fighting the order that it believes the loss of direct flights would prompt over 140,000 American tourists and nearly 90,000 Mexican tourists not to visit the other country and hurt the economies of both countries with the loss of their spending.
___
Associated Press writer Amaranta Marentes in Mexico City contributed to this report.
Josh Funk, The Associated Press
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

U.S. Sells $1 Billion in Arms to Europe for Ukraine, Sealing Shift in Approach
U.S. Sells $1 Billion in Arms to Europe for Ukraine, Sealing Shift in Approach

Wall Street Journal

timea few seconds ago

  • Wall Street Journal

U.S. Sells $1 Billion in Arms to Europe for Ukraine, Sealing Shift in Approach

In one of the clearest demonstrations to date of how the West's approach to arming Ukraine against Russia is shifting under President Trump, four European countries are buying U.S. military equipment valued at roughly $1 billion for delivery to Kyiv's forces. The purchases, in two separate transactions coordinated by NATO, are expected to be the first of many funded by European governments and Canada following an agreement in principle earlier this summer.

Donald Trump's DOJ May Release Ghislaine Maxwell Interview: Reports
Donald Trump's DOJ May Release Ghislaine Maxwell Interview: Reports

Newsweek

timea few seconds ago

  • Newsweek

Donald Trump's DOJ May Release Ghislaine Maxwell Interview: Reports

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Justice Department, under Deputy Attorney General Todd Blanche, is weighing whether to release the transcript of a closed-door interview with convicted sex trafficker Ghislaine Maxwell, according to CNN and Fox News. Blanche would reportedly release the transcript at the direction of President Donald Trump, who has ordered the disclosure of "all credible evidence" in the Jeffrey Epstein case. The two-day interview, conducted last week in Tallahassee, reportedly focused on roughly 100 individuals connected to Epstein, with Maxwell's attorney saying she answered "every single question" under limited immunity. The push to make the transcript public comes amid growing pressure from Trump allies and House Republicans to unseal related grand jury materials, though victim advocates warn about privacy concerns and question Blanche's independence because of his prior role as Trump's personal attorney. While Trump has not ruled out a pardon for Maxwell, saying he "hasn't thought about it," critics argue that selectively releasing materials risks appearing as symbolic transparency rather than true accountability. This is a breaking news story. Updates to follow.

One Big Beautiful Bill Act: Key provisions affecting estate planning, individuals and business owners
One Big Beautiful Bill Act: Key provisions affecting estate planning, individuals and business owners

Business Journals

timea few seconds ago

  • Business Journals

One Big Beautiful Bill Act: Key provisions affecting estate planning, individuals and business owners

After months of debate, President Trump signed the One Big Beautiful Bill Act (the OBBBA) into law on July 4, 2025. The OBBBA extends provisions of the 2017 Tax Cuts and Jobs Act, expands and/or repeals certain existing incentives, and brings specific new tax provisions – all intended to spur economic growth. Gift and Estate Tax Exemptions The OBBBA retains the increased estate and gift tax exemptions introduced under the 2017 Tax Cuts and Jobs Act. For 2025, the exemption remains at $13.99 million per person, with a scheduled increase to $15 million per individual, or $30 million per married couple, beginning in 2026. This exemption amount is indexed for inflation in future years. The preservation and expansion of the exemption amount provides a lengthened window of opportunity for implementing strategic wealth transfers. Trump Accounts The OBBBA introduces a new type of investment account for minors, coined 'Trump Accounts.' These accounts are taxed similarly to individual retirement accounts, except that contributions are not tax deductible. This means that contributions are made with after-tax dollars, earnings grow tax-deferred and withdrawals in excess of taxpayer contributions are taxed as ordinary income. Account beneficiaries must wait until age 18 to withdraw funds, but there is no age at which withdrawals must begin. Parents can contribute up to $5,000 each year per child and employers can contribute up to $2,500 of that annual limit on behalf of an employee or their dependent. Employer contributions have no impact on the employee's taxable income, but the amount of the contribution, plus any earnings, will be taxed as ordinary income when withdrawn. Each of these limits are indexed for inflation starting in 2028. To the extent an account is not opened for a child born after 2025 but before 2029, the federal government will create and contribute $1,000 to an account for the child's benefit. State and Local Tax (SALT) Deduction The OBBBA alters the treatment of state and local tax (SALT) deductions for tax years 2025 through 2029. The SALT deduction cap increases from $10,000 to $40,000 in 2025 and will rise by 1 percent annually through 2029 (reverting back to $10,000 in 2030). Taxpayers with modified adjusted gross income (MAGI) exceeding $500,000 are subject to a phaseout: their deduction is reduced by 30 percent of the amount by which the taxpayer's MAGI exceeds that threshold. However, the deduction cannot fall below $10,000, providing a minimum benefit even for the highest earners. Other Notable Provisions Individual Tax Rates and Standard Deduction: Among the most wide-reaching provisions, the OBBBA permanently extends the reduced individual tax rates introduced under the 2017 Tax Cuts and Jobs Act and adds an additional inflation adjustment to the bottom six tax brackets. It also makes permanent the increased standard deduction, which will stand at $15,750 for single filers, $23,265 for heads of household, and $31,500 for joint filers in 2025, with future indexing. The personal exemption deduction has been permanently eliminated. Child Tax Credit (CTC): The CTC receives a modest expansion, with the non-refundable portion increasing to $2,200 for 2025 and the refundable portion of $1,400 made permanent, both of which are indexed for inflation. Income phaseouts remain at $200,000 for individuals and $400,000 for joint filers. Charitable Contribution Deduction: For charitable giving, the OBBBA permanently allows non-itemizers to deduct up to $1,000 for individual filers or $2,000 for joint filers beginning in 2026. For itemizers, the OBBBA adds a 0.5 percent floor on charitable contributions, meaning the charitable contribution deduction is allowed only if, and to the extent that, aggregate contributions exceed 0.5 percent of adjusted gross income. Gambling Losses: Starting in 2026, gambling losses will be deductible only up to 90 percent of winnings, a measure expected to significantly impact those in the gambling industry. Qualified Business Income (QBI) Deduction: The OBBBA makes the 20 percent QBI deduction permanent. Phase-in income limits are increased to $75,000 for individual filers and $150,000 for joint filers. The OBBBA also introduces an inflation-adjusted $400 minimum deduction for taxpayers who have at least $1,000 of QBI from one or more active trades or businesses, broadening the benefit's reach. Section 179 Expensing: This provision remains favorable for business owners, with the OBBBA maintaining the maximum expensing limit of $2.5 million and increasing the phaseout threshold to $4 million, both of which are indexed for inflation. Interest Deduction (Section 163(j)): The OBBBA reinstates the use of EBITDA, rather than EBIT, to calculate interest deductibility starting in 2025, restoring greater deductibility for leveraged businesses. Qualified Property: Finally, the OBBBA permanently reinstates 100 percent bonus depreciation for qualified property acquired and placed in service on or after January 19, 2025. Conclusion Although many of the OBBBA's provisions are characterized as permanent, future political shifts could change the landscape. Individuals are well advised to consider leveraging today's high estate and gift tax exemptions, review wealth transfer strategies and reassess income tax planning in light of the changes. For questions or a discussion on how the OBBBA affects your estate and income tax planning, readers are encouraged to contact Reinhart attorney Josh LeNoble or another member of Reinhart's Trusts and Estates Practice. To learn more about the One Big Beautiful Bill Act, click here. Reinhart Boerner Van Deuren is a full-service, business-oriented law firm with offices in Milwaukee, Madison, Waukesha and Wausau, Wisconsin; Chicago and Rockford, Illinois; Minneapolis, Minnesota; Denver, Colorado; and Phoenix, Arizona. With more than 200 lawyers, the firm serves clients throughout the United States and internationally with a combination of legal advice, industry understanding and superior client service. Josh LeNoble is an attorney in Reinhart's Trusts and Estates Practice, where he focuses on estate plans for high-net-worth individuals and families, providing customized tax and estate planning solutions. By creating detailed yet flexible estate plans, he enables clients to better respond to future family changes, economic conditions and changes in tax laws.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store