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USA Today
3 hours ago
- USA Today
Trump and EU reach trade deal ahead of looming deadline
The trade deal echoes the arrangement Trump reached with Japan. President Donald Trump announced July 27 the United States had reached a trade deal with the European Union, days ahead of a self-imposed Aug. 1 deadline. Trump met with the European Commission's president, Ursula von der Leyen, during his trip to Scotland over the weekend, where the pair discussed terms and came to an agreement. The deal includes a 15% tariff on most European exports to the United States, similar to agreements struck recently between Trump and other major trading partners, including Japan. The levy is higher than the 10% rate sought by Europeans but a reduction from the 30% Trump threatened to impose earlier in July. The agreement also includes $600 billion in EU investments in the U.S., and the purchase of $750 billion worth of U.S. energy. "I think we both wanted to make a deal,' Trump said. "I think it's going to be great for both.' The 15% tariff will be applied 'across the board,' for items including cars, but steel and aluminum will remain at 50%. "We have a trade deal between the two largest economies in the world, and it's a big deal,' von der Leyen said. 'It's a huge deal. It will bring stability. It will bring predictability.' The president has repeatedly criticized the European Union, saying it was "formed to screw the United States" on trade. The U.S. trade deficit with the EU reached $235 billion in 2024, according to U.S. Census Bureau data. Heading into the weekend meeting, he called the relationship between the EU and the United States "very unfair" and said he thought officials had a "50/50 chance" of striking a deal. After an agreement was announced, von der Leyen said the deal would "rebalance" relations, despite European leaders long claiming there was not an unfair trade balance. German Chancellor Friedrich Merz said the agreement averted a trade conflict that threatened a 27.5% tariff on cars. "This agreement has succeeded in averting a trade conflict that would have hit the export-orientated German economy hard,' Merz said. Italy's Prime Minister Giorgia Meloni called it a 'positive' trade deal. Ireland's Trade Minister Simon Harris said the tariff provides certainty in trade that 'is essential for jobs, growth and investment.' "A deal provides a measure of much needed certainty for Irish, European and American businesses who together represent the most integrated trading relationship in the world,' Harris said. Trump is seeking to reorder the global economy and reduce decades-old U.S. trade deficits. He has so far reeled in agreements with Britain, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of "90 deals in 90 days." The EU deal echoes the deal reached with Japan. Despite the recent deals, Commerce Secretary Howard Lutnick said the administration will continue to pursue aggressive tariffs around the world, including potential duties on critical semiconductors in the near future. Contributing: USA TODAY, Reuters


New York Post
4 hours ago
- New York Post
Progs have abandoned progressivism, Columbia's ‘message of hope' and other commentary
Liberal: Progs Have Abandoned Progressivism 'Today's progressives aren't really progressive in the true sense of the term,' contends The Liberal Patriot's Ruy Teixeira. 'The quintessential moral commitment of midcentury progressives was to make American society truly colorblind.' Now, progs 'favor color-conscious remedies like affirmative action.' They view 'merit and objective measures of achievement . . . with suspicion.' Progressives used to be steadfast defenders of free speech,' but now, they inflate free expression 'with 'violence' and 'harm' and making people feel 'unsafe.'' And they 'prize goals like fighting climate change, procedural justice, and protecting identity groups above prosperity.' 'So can today's progressives be considered 'progressive' when they don't really support free speech, cultural pluralism and the open society? They cannot and voters, especially working class voters, are unlikely to consider them so.' Campus watch: Columbia's 'Message of Hope' 'Because Trump took a stand — and took the heat from progressives and the news media — things may finally change for the better at Columbia,' prays USA Today's Nicole Russell. 'Columbia University has agreed to pay [a] $200 million fine to the federal government to settle accusations that the school failed to protect Jewish students from antisemitism on campus.' Trump was 'standing against a culture on university campuses that promoted progressive values to the exclusion of dissenting opinions': 'Conservative students were shunned. And Jewish students were targeted because of Israel's defense of its citizens.' 'Institutions that accept taxpayer dollars must be held accountable.' 'This is a win for Trump, a scathing reprimand of higher education and a message of hope for American Jews.' Economy: Middle Class' Historic Gains 'Six months into his second term, President Donald Trump is delivering on his promise to create another middle-class economic boom,' cheers W.J. Lee at the Association of Mature American Citizens. Indeed, 'a new Treasury Department report reveals that middle-class and blue-collar workers are experiencing real-wage gains not seen in nearly 60 years': From December 2024 to May 2025, average hourly earnings for middle-class workers rose 1.7%, outpacing inflation. That 'translates to the most impressive half-year real-wage gain at the outset of a presidency' since Richard Nixon's 0.8% increase almost six decades ago. 'The only other time it came close to that? Eight years ago, during Trump's first term.' From the right: Climate Alarms Fall Flat 'The climate alarmists regularly seize on weather events they believe will help them exploit their narrative' but 'ignore contradictory information,' quips the Issues & Insights editorial board. Examples? 'The Northwest Passage is experiencing its third-highest level of sea ice extent in the last two decades,' despite Al Gore's 2009 warning that 'the Arctic polar ice cap could be gone during summer within five to seven years.' Similarly, 'efforts to attribute the deadly Texas flood . . . to human carbon dioxide emissions have been debunked,' and though 'a Tampa, Fla., meteorologist blamed 'climate change' . . . for 90-degree days having doubled in the city,' the average number of days reaching 95°F or higher in the state of Florida has not increased since 1895. Science beat: Fund University Research Locally 'Given the Trump administration's funding cuts to the National Institutes of Health and the National Science Foundation, the US must rethink how it endows innovation at American universities,' argue Thomas D. Lehrman and George Gilder at The Wall Street Journal. Publicly funded university research 'has fostered such innovations as the Global Positioning System, cancer therapies, recombinant DNA, and magnetic resonance imaging, or MRI.' That history shows that 'US technological leadership depends on creativity from our campuses.' States looking 'to lead in research and innovation should follow the school-choice playbook and establish a class of nonprofit organizations.' It falls on state leaders to support and 'accelerate the scientific research essential to competing with global rivals and inventing lifesaving technologies.' — Compiled by The Post Editorial Board


The Hill
5 hours ago
- The Hill
US-EU trade deal wards off further escalation but will raise costs for companies, consumers
FRANKFURT, Germany (AP) — President Donald Trump and European Commission President Ursula von der Leyen have announced a sweeping trade deal that imposes 15% tariffs on most European goods, warding off Trump's threat of a 30% rate if no deal had been reached by Aug. 1. The tariffs, or import taxes, paid when Americans buy European products could raise prices for U.S. consumers and dent profits for European companies and their partners who bring goods into the country. Here are some things to know about the trade deal between the United States and the European Union: What's in the agreement? Trump and von der Leyen's announcement, made during Trump's visit to one of his golf courses in Scotland, leaves many details to be filled in. The headline figure is a 15% tariff rate on 'the vast majority' of European goods brought into the U.S., including cars, computer chips and pharmaceuticals. It's lower than the 20% Trump initially proposed, and lower than his threats of 50% and then 30%. Von der Leyen said the two sides agreed on zero tariffs on both sides for a range of 'strategic' goods: Aircraft and aircraft parts, certain chemicals, semiconductor equipment, certain agricultural products, and some natural resources and critical raw materials. Specifics were lacking. She said the two sides 'would keep working' to add more products to the list. Additionally, the EU side would purchase what Trump said was $750 billion (638 billion euros) worth of natural gas, oil and nuclear fuel to replace Russian energy supplies, and Europeans would invest an additional $600 billion (511 billion euros) in the U.S. What's not in the deal? Trump said the 50% U.S. tariff on imported steel would remain; von der Leyen said the two sides agreed to further negotiations to fight a global steel glut, reduce tariffs and establish import quotas — that is, set amounts that can be imported, often at a lower rate. Trump said pharmaceuticals were not included in the deal. Von der Leyen said the pharmaceuticals issue was 'on a separate sheet of paper' from Sunday's deal. Where the $600 billion for additional investment would come from was not specified. And von der Leyen said that when it came to farm products, the EU side made clear that 'there were tariffs that could not be lowered,' without specifying which products. What's the impact? The 15% rate removes Trump's threat of a 30% tariff. It's still much higher than the average tariff before Trump came into office of around 1%, and higher than Trump's minimum 10% baseline tariff. Higher tariffs, or import taxes, on European goods mean sellers in the U.S. would have to either increase prices for consumers — risking loss of market share — or swallow the added cost in terms of lower profits. The higher tariffs are expected to hurt export earnings for European firms and slow the economy. The 10% baseline applied while the deal was negotiated was already sufficiently high to make the European Union's executive commission cut its growth forecast for this year from 1.3% to 0.9%. Von der Leyen said the 15% rate was 'the best we could do' and credited the deal with maintaining access to the U.S. market and providing 'stability and predictability for companies on both sides.' What is some of the reaction to the deal? German Chancellor Friedrich Merz welcomed the deal which avoided 'an unnecessary escalation in transatlantic trade relations' and said that 'we were able to preserve our core interests,' while adding that 'I would have very much wished for further relief in transatlantic trade.' The Federation of German Industries was blunter. 'Even a 15% tariff rate will have immense negative effects on export-oriented German industry,' said Wolfgang Niedermark, a member of the federation's leadership. While the rate is lower than threatened, 'the big caveat to today's deal is that there is nothing on paper, yet,' said Carsten Brzeski, global chief of macro at ING bank. 'With this disclaimer in mind and at face value, today's agreement would clearly bring an end to the uncertainty of recent months. An escalation of the US-EU trade tensions would have been a severe risk for the global economy,' Brzeski said. 'This risk seems to have been avoided.' What about car companies? Asked if European carmakers could still sell cars at 15%, von der Leyen said the rate was much lower than the current 27.5%. That has been the rate under Trump's 25% tariff on cars from all countries, plus the preexisting U.S. car tariff of 2.5%. The impact is likely to be substantial on some companies, given that automaker Volkswagen said it suffered a 1.3 billion euro ($1.5 billion) hit to profit in the first half of the year from the higher tariffs. Mercedes-Benz dealers in the U.S. have said they are holding the line on 2025 model year prices 'until further notice.' The German automaker has a partial tariff shield because it makes 35% of the Mercedes-Benz vehicles sold in the U.S. in Tuscaloosa, Alabama, but the company said it expects prices to undergo 'significant increases' in coming years. What were the issues dividing the two sides? Before Trump returned to office, the U.S. and the EU maintained generally low tariff levels in what is the largest bilateral trading relationship in the world, with some 1.7 trillion euros ($2 trillion) in annual trade. Together the U.S. and the EU have 44% of the global economy. The U.S. rate averaged 1.47% for European goods, while the EU's averaged 1.35% for American products, according to the Bruegel think tank in Brussels. Trump has complained about the EU's 198 billion-euro trade surplus in goods, which shows Americans buy more from European businesses than the other way around, and has said the European market is not open enough for U.S.-made cars. However, American companies fill some of the trade gap by outselling the EU when it comes to services such as cloud computing, travel bookings, and legal and financial services. And some 30% of European imports are from American-owned companies, according to the European Central Bank.