El Salvador says for first time that U.S. controls fate of jailed deportees
The acknowledgment was contained in a filing by the migrants lawyers in U.S. District Court in the District of Columbia. It marks a significant contradiction to the Trump administration's repeated claims that it lacked the authority to bring back the migrants because they are no longer in U.S. custody.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
28 minutes ago
- Bloomberg
Trump Bid for Cut of Nvidia, AMD Revenue Risks ‘Dangerous World'
Even in an administration that has repeatedly pushed the legal limits of using economic statecraft to reshape the global business landscape, a new deal with two tech giants is raising alarm bells among trade experts. Nvidia Corp. and Advanced Micro Devices Inc. agreed to pay the US government 15% of revenue from some chip sales to China, Bloomberg reported, citing a person familiar with the matter. The chips — Nvidia's H20 AI accelerator and AMD's MI308 chips — were earlier banned by the Trump administration and require export licenses to sell.
Yahoo
40 minutes ago
- Yahoo
Trump is promising to slash drug prices by 1,500%. Here's what's really happening
President Donald Trump recently made his boldest claim yet in his longstanding promise to lower drug prices. 'You know, we've cut drug prices by 1,200, 1,300 and 1,400, 1,500%,' he told reporters on Sunday, noting the reductions will start over the next two to three months. 'I don't mean 50%. I mean 14- 1,500%.' Trump has unveiled a number of moves aimed at cutting drug prices in recent months, but he has yet to move the needle on reducing costs – much less slashing them by 1,500%, which is mathematically impossible, experts say. Just how much Trump will be able to accomplish is a matter of debate. 'The administration, by itself, has relatively limited power to affect drug prices across the US market,' Benedic Ippolito, a senior fellow in economic policy studies at the right-leaning American Enterprise Institute, told CNN. 'Congress has tons of power, but the administration, if they're acting by themselves, there's just only so much they can do.' Still, Trump's comments are signaling 'strong political will,' and it would be unwise for drugmakers to dismiss them, said Milena Sullivan, policy practice director at Avalere Health, a consulting firm with pharmaceutical companies as clients. 'President Trump already has a track record of disruptive policymaking and a willingness to push the limits,' she told CNN. 'The rhetoric has only been intensifying. Even if the math doesn't make sense, the political message is serious.' Trump's main effort, which he cited on August 3, centers on getting drugmakers to offer the same price in the US as they do in Europe and other peer countries, the so-called 'Most Favored Nation' price. The US paid nearly three times as much for medications as did comparable countries in 2022. The president tried to force this policy on the pharmaceutical industry near the end of his first term, finalizing a rule for a model program in which Medicare would pay the 'Most Favored Nation' price for 50 drugs administered in doctors' offices. But the initiative was quickly blocked in court on procedural grounds and later rescinded by the Biden administration. Now, Trump is pushing drug manufacturers to voluntarily offer US patients the lowest price paid for a drug in a peer country or face repercussions. 'Big Pharma will either abide by this principle voluntarily or we will use the power of the federal government to ensure that we are paying the same price as other countries to accelerate these price restrictions and reductions,' the president said in May when signing an executive order on 'Most Favored Nation' pricing. Some potential ramifications include directing the Department of Health and Human Services to craft a rule implementing the policy, allowing more drug importation into the US, reviewing drug exports and having the Food and Drug Administration modify or revoke approvals granted for drugs that may be 'unsafe, ineffective, or improperly marketed.' But subsequent discussions between HHS and the drugmakers have not yielded the results Trump wants, prompting him to publicly ratchet up the pressure. He wrote letters late last month to 17 major pharmaceutical company CEOs, which were posted on Truth Social and read aloud at a White House briefing. In the letters, Trump calls for manufacturers to extend 'Most Favored Nation' pricing to all drugs provided to Medicaid enrollees. Also, he is demanding that the companies guarantee that Medicaid, Medicare and commercial-market insurers pay such prices for all new drugs. 'Moving forward, the only thing I will accept from drug manufacturers is a commitment that provides American families immediate relief from the vastly inflated drug prices and an end to the free ride of American innovation by European and other developed nations,' he wrote, giving the companies 60 days to comply. Asked for comment on Trump's claim on reducing drug prices by 1,500%, White House spokesman Kush Desai said in a statement to CNN, 'It's an objective fact that Americans are paying exponentially more for the same exact drugs as people in other developed countries pay, and it's an objective fact that no other Administration has done more to rectify this unfair burden for the American people.' Tariffs could raise prices Trump is also pursuing other initiatives in the pharmaceutical industry arena – including tariffs, which could raise drug prices and worsen shortages of generic medicine over time. Trump excluded the industry from the tariffs he imposed during his first term. The president has already agreed to the framework of a deal with the European Union, which would levy a 15% tariff on drug imports, with some exceptions for certain generic drugs. And the administration launched an investigation into national security implications of pharmaceutical imports, which are expected to lead to tariffs on the sector. Trump has said the levies – which could be as much as 250% but implemented gradually over time – will be announced shortly. (The EU and US have both said that the sectoral tariffs would not apply to drug imports from Europe, but the trade deal has yet to be finalized.) The tariffs are designed to spur more domestic drug manufacturing, and Trump's threats have prompted a bevy of pharmaceutical companies to announce billions of dollars of investments in their US operations. But that's still not likely to provide Americans with a break on their drug costs since the prices they pay are largely governed by the nation's complex health system, which includes manufacturers, insurers and pharmacy benefit managers, known as PBMs, experts said. Trump has also supported PBM reform, which Congress has also pursued but never passed. And he favors having drug makers sell their certain medications directly to consumers at 'Most Favored Nation' prices, cutting out other players in the supply chain that can keep costs elevated. The administration is also looking at reducing Medicare reimbursements to certain hospitals so the payments are more in line with the providers' discounted acquisition costs for Part B drugs administered by doctors. This would lower patients' out of pocket costs since they are tied to Medicare's reimbursement rates. An effort to do this in his first administration was knocked down by the Supreme Court on procedural grounds. The more meaningful policies need time to implement and will likely involve other players in the drug supply chain, Sullivan said. 'The political signals are that any viable solution has to tackle holistically how drugs are priced and delivered in this complex health care system,' she said. 'So it's not just the manufacturers that are feeling some of the pressure at the moment.'
Yahoo
an hour ago
- Yahoo
Nvidia, AMD to Pay 15% on China AI Chip Sales in US Deal
(Bloomberg) -- Nvidia Corp. and Advanced Micro Devices Inc. agreed to pay 15% of their revenues from Chinese AI chip sales to the US government in a deal to secure export licenses, an unusual arrangement that may unnerve both US companies and Beijing. Sunseeking Germans Face Swiss Backlash Over Alpine Holiday Congestion New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis Three Deaths Reported as NYC Legionnaires' Outbreak Spreads A New Stage for the Theater That Gave America Shakespeare in the Park Chicago Schools' Bond Penalty Widens as $734 Million Gap Looms Nvidia plans to share 15% of the revenue from sales of its H20 AI accelerator in China, according to a person familiar with the matter. AMD will deliver the same share from MI308 revenues, the person added, asking for anonymity to discuss internal deliberations. The arrangement reflects US President Donald Trump's consistent effort to engineer a financial payout for America in return for concessions on trade. His administration has shown a willingness to relax trade conditions like tariffs in return for giant investment in the US — as with Apple Inc.'s pledge to spend $600 billion on domestic manufacturing. But such a narrow, select export tax has little precedent in modern corporate history. Beijing, which has grown increasingly hostile to the idea of Chinese firms deploying the H20, is unlikely to warm to the idea of a chip tax. Yuyuantantian, a social media account affiliated with state-run China Central Television that regularly signals Beijing's thinking about trade, on Sunday slammed the chip's supposed security vulnerabilities and inefficiency. Nvidia shares fell 1.5% in premarket trading on Monday. AMD shares declined about 3% before New York exchanges opened. 'This seeming quid pro quo is unprecedented from an export control perspective. The arrangement risks invalidating the national security rationale for U.S. export controls,' said Jacob Feldgoise, a researcher at the DC-based Center for Security and Emerging Technology. It 'will likely undermine the US' position when negotiating with allies to implement complementary controls,' he added. 'Allies may not believe U.S. policymakers if they are willing to trade away those same national security concerns for economic concessions — either from U.S. companies or foreign governments.' An Nvidia spokesperson said the company follows US export rules, adding that while it hasn't shipped H20 chips to China for months, it hopes the rules will allow US companies to compete in China. AMD didn't immediately respond to a request for comment. Trump has targeted chipmakers in the past week with a series of declarations that were light on specifics and rattled companies from Silicon Valley to Asia. On Wednesday, Trump threatened 100% tariffs on imported chips, unless companies also made investments on US soil. On examination, though, those new tariffs would apply to almost no one since most major chipmakers appear to be covered by existing investments or separate trade deals. On Thursday, Trump called for the ouster of Intel Corp.'s Chief Executive Officer Lip-Bu Tan, calling the Malaysian-born entrepreneur 'highly conflicted' without giving details on what the potential conflicts were. Tan, who sent a letter to employees assuring them that he was engaging with the administration, is due to visit the White House on Monday, the Wall Street Journal said. He's been targeted by Republican Senator Tom Cotton over historical business ties to China. The Financial Times earlier reported the development on AMD and Nvidia. The outlet said in separate report that the Commerce Department had begun issuing H20 licenses last week, days after Nvidia Chief Executive Officer Jensen Huang met with Trump. Huang has lobbied long and hard for the lifting of restrictions, arguing that walling China off will only slow the spread of American technology and encourage local rivals such as Huawei Technologies Co. 'It's a strategic bargaining chip' that tightens Washington's grip on a critical tech sphere during trade negotiations with China, said Hebe Chen, an analyst with Vantage Markets in Melbourne. 'Over time, this hurdle for chips entering China will likely deter Nvidia and AMD from deeper expansion in the world's largest chip-importing market, while giving local Chinese producers a clear edge to capture market share and accelerate domestic semiconductor innovation.' If Washington goes ahead with the tax, it should funnel some capital to the US — but not an enormous amount in relative terms. Both Nvidia and AMD have said it'll take time to ramp back up production of their China-specific products — even if order levels return to previous levels, which is uncertain. Nvidia raked in $4.6 billion of revenue from the H20 in the fiscal quarter ended April 27 — days after new restrictions on shipping the AI accelerator to China were imposed. It also said it had been unable to ship $2.5 billion of H20 China revenue in that period because of the new rules. That implies it would have got more than $7 billion in H20 sales to China during the period. If it can return to that level, the US government will stand to get about a billion dollars a quarter from its deal. AMD could generate $3 billion to $5 billion of 2025 revenue if restrictions were lifted, Morgan Stanley estimates. Chinese alternatives such as Huawei's Ascend chips now account for 20% to 30% of domestic demand, it reckoned. 'The US government clearly needs the money given its deficits and eagerness to collect tariffs,' said Vey-Sern Ling, managing director at Union Bancaire Privee in Singapore. 'But the complication is China's accusations about H20 chips containing backdoors, which could be a negotiation tactic to highlight that the country is not 'hard up' for US chips.' --With assistance from Yasufumi Saito, Debby Wu, Winnie Hsu, Jessica Sui, Wendy Benjaminson, Kevin Whitelaw and Shadab Nazmi. (Updates with premarket share moves, additional context from fifth paragraph) The Game Starts at 8. The Robbery Starts at 8:01 The Pizza Oven Startup With a Plan to Own Every Piece of the Pie Digital Nomads Are Transforming Medellín's Housing It's Only a Matter of Time Until Americans Pay for Trump's Tariffs Russia's Secret War and the Plot to Kill a German CEO ©2025 Bloomberg L.P.
