Latest news with #America-first
a day ago
- Business
New South Korean President Lee faces crucial challenges at home and abroad
SEOUL, South Korea -- Winning a tense election that capped off months of political turmoil, new South Korean President Lee Jae-myung described his victory as the start of the country's return to normalcy following the crisis sparked by then-conservative leader Yoon Suk Yeol's imposition of martial law in December. But the outspoken liberal, who assumed office immediately on Wednesday without a transition period, takes the helm during a highly challenging time for the country, which has struggled mightily to revive a faltering economy battered by months of political paralysis and compounded by U.S. President Donald Trump's tariff hikes. Lee also inherits from Yoon the escalating threat of North Korea's nuclear ambitions, now further complicated by Pyongyang's deepening alignment with Moscow over Russian President Vladimir Putin's war on Ukraine. Here's a look at the key challenges facing Lee's government: In his inauguration speech, Lee identified the economy as his top priority, vowing to immediately launch an emergency task force to wage a 'head-on battle' against the looming threat of recession and to boost government spending to jumpstart economic activity. South Korean economic institutions have repeatedly sounded the alarm in recent months over the state of the economy, citing sluggish business investment, weak consumer spending, a deteriorating job market and a trade environment worsened by Trump's tariffs and other America-first policies. Despite the country's strikingly high household debt, the central bank last week lowered borrowing costs in a desperate bid to inject more money into the economy and slashed its 2025 growth forecast to 0.8%, which would be the weakest since a 0.7% contraction during the COVID-19 crisis in 2020. Lee won't have much time to negotiate with Washington before July 9, when Trump's 90-day pause in global reciprocal tariffs is set to expire, potentially exposing South Korean products to 25% tax rates. Although a U.S. federal court recently ruled that Trump lacks authority to impose his planned tariffs, the White House has appealed, leaving the outcome uncertain. Trump has also pushed for product-specific tariffs on key sectors like autos and semiconductors, which make up a major share of South Korean exports. Trump could also seek a broader deal requiring Seoul to pay significantly more for the 28,000 U.S. troops stationed in South Korea to deter North Korean threats. While Seoul's previous government had aimed to reach a 'package' deal with Trump by early July, Lee has preached patience on tariffs, saying it would be against national interests to obsess with an early agreement. In his inaugural address, Lee promised to reopen a communication channel with North Korea to ease tensions. But prospects for the early resumption of dialogue between the rival Koreas are dim, as North Korea has been constantly rejecting dialogue offers by South Korea and the U.S. since 2019, when talks between Washington and Pyongyang collapsed over disagreements on economic sanctions. North Korea's priority in foreign policy is now firmly Russia, which has received thousands of North Korean troops and large amounts of military equipment in recent months for its warfighting in Ukraine. During campaigning, Lee acknowledged that it would be 'very difficult' to arrange a summit with North Korean leader Kim Jong Un anytime soon, though it's something he will seek. Lee said he would support Trump's efforts to restart nuclear diplomacy with Kim, saying that improved ties between Pyongyang and Washington could allow aid projects for the impoverished North that will likely require South Korean support. Lee nominated former Unification Minister Lee Jong-seok, a dove who espouses reconciliation with North Korea, as his spy chief. The nomination likely reflects Lee Jae-myung's hopes to revive inter-Korean dialogue, given the behind-the-scene roles of the National Intelligence Service played to reach out to Pyongyang under the past liberal governments. However, many experts also note that Lee Jae-myung does not share the same level of Korean nationalist zeal as his liberal predecessors, and they question how firmly he would stick to his appeasement approach if provocative actions by North Korea, such as high-profile missile tests or border incursions, undermine public support for his policy at home. Lee was previously accused by his critics of tilting toward Pyongyang and Beijing and away from Washington and Tokyo. He once slammed a U.S. missile defense system in South Korea as a source of tensions and likened strengthening U.S.-Japan ties to a 1905 Washington-Tokyo agreement that he said eventually helped Japan colonize the Korean Peninsula. But Lee has recently refrained from making similar contentious comments, instead repeatedly pledging to pursue pragmatic diplomacy. He has vowed to enhance South Korea's alliance with the U.S. and their trilateral cooperation with Japan, while also emphasizing the need to reduce tensions with North Korea and avoid frictions with China and Russia. While Lee may eventually take steps to improve ties with North Korea and China — relations that deteriorated under Yoon, who prioritized the U.S. and Japan — experts say Lee is unlikely to take drastic actions that might undermine the alliance with Washington or negatively impact South Korea's financial markets. Lee has stated that he will address thorny historical disputes with Japan separately from matters of security, trade, and other issues. However, many experts believe he is unlikely to completely reverse the progress made in Seoul-Tokyo relations in recent years. Japanese Prime Minister Shigeru Ishiba said Wednesday that he hopes to hold summit talks with Lee 'as early as possible' and expressed a desire to further strengthen bilateral ties. Long accused by critics of being a divisive populist, Lee pledged unity throughout his campaign, vowing not to target conservatives and calling for an end to South Korea's deep political polarization and a return to dialogue and compromise. However, he has also pledged a thorough investigation into the circumstances surrounding Yoon's martial law stunt — a saga that could continue to overshadow Lee's presidency and spark tensions with conservatives, especially as the ousted conservative faces a high-stakes criminal trial on rebellion charges punishable by death or life imprisonment. While Yoon defended his martial law decree as a necessary response to what he called the Democratic Party's abuse of its legislative majority to obstruct his agenda, that same majority now gives Lee a far more favorable environment to advance his policies. Conservatives have voiced concern that this could give Lee partially unchecked power and enable him to advance legislation that shields his presidency from his own legal troubles. Lee faces five separate trials on corruption and other charges, but the hearings were suspended ahead of Tuesday's election. While South Korea's constitution shields sitting presidents from most criminal prosecution aside of rebellion or treason, it doesn't clearly state whether this protection extends to preelection indictments. The Democrats have been pushing to revise the criminal procedure law to keep Lee's trials suspended during his term, drawing criticism from conservatives.
Hamilton Spectator
a day ago
- Business
- Hamilton Spectator
New South Korean President Lee faces crucial challenges at home and abroad
SEOUL, South Korea (AP) — Winning a tense election that capped off months of political turmoil, new South Korean President Lee Jae-myung described his victory as the start of the country's return to normalcy following the crisis sparked by then-conservative leader Yoon Suk Yeol's imposition of martial law in December. But the outspoken liberal, who assumed office immediately on Wednesday without a transition period, takes the helm during a highly challenging time for the country, which has struggled mightily to revive a faltering economy battered by months of political paralysis and compounded by U.S. President Donald Trump's tariff hikes. Lee also inherits from Yoon the escalating threat of North Korea's nuclear ambitions, now further complicated by Pyongyang's deepening alignment with Moscow over Russian President Vladimir Putin's war on Ukraine. Here's a look at the key challenges facing Lee's government: Addressing a slow economy and Trump's tariffs In his inauguration speech, Lee identified the economy as his top priority, vowing to immediately launch an emergency task force to wage a 'head-on battle' against the looming threat of recession and to boost government spending to jumpstart economic activity. South Korean economic institutions have repeatedly sounded the alarm in recent months over the state of the economy, citing sluggish business investment, weak consumer spending, a deteriorating job market and a trade environment worsened by Trump's tariffs and other America-first policies. Despite the country's strikingly high household debt, the central bank last week lowered borrowing costs in a desperate bid to inject more money into the economy and slashed its 2025 growth forecast to 0.8%, which would be the weakest since a 0.7% contraction during the COVID-19 crisis in 2020. Lee won't have much time to negotiate with Washington before July 9, when Trump's 90-day pause in global reciprocal tariffs is set to expire, potentially exposing South Korean products to 25% tax rates. Although a U.S. federal court recently ruled that Trump lacks authority to impose his planned tariffs, the White House has appealed, leaving the outcome uncertain. Trump has also pushed for product-specific tariffs on key sectors like autos and semiconductors, which make up a major share of South Korean exports. Trump could also seek a broader deal requiring Seoul to pay significantly more for the 28,000 U.S. troops stationed in South Korea to deter North Korean threats. While Seoul's previous government had aimed to reach a 'package' deal with Trump by early July, Lee has preached patience on tariffs, saying it would be against national interests to obsess with an early agreement. Navigating North Korea's nuclear threat In his inaugural address, Lee promised to reopen a communication channel with North Korea to ease tensions. But prospects for the early resumption of dialogue between the rival Koreas are dim, as North Korea has been constantly rejecting dialogue offers by South Korea and the U.S. since 2019, when talks between Washington and Pyongyang collapsed over disagreements on economic sanctions. North Korea's priority in foreign policy is now firmly Russia, which has received thousands of North Korean troops and large amounts of military equipment in recent months for its warfighting in Ukraine. During campaigning, Lee acknowledged that it would be 'very difficult' to arrange a summit with North Korean leader Kim Jong Un anytime soon, though it's something he will seek. Lee said he would support Trump's efforts to restart nuclear diplomacy with Kim, saying that improved ties between Pyongyang and Washington could allow aid projects for the impoverished North that will likely require South Korean support. Lee nominated former Unification Minister Lee Jong-seok, a dove who espouses reconciliation with North Korea, as his spy chief. The nomination likely reflects Lee Jae-myung's hopes to revive inter-Korean dialogue, given the behind-the-scene roles of the National Intelligence Service played to reach out to Pyongyang under the past liberal governments. However, many experts also note that Lee Jae-myung does not share the same level of Korean nationalist zeal as his liberal predecessors, and they question how firmly he would stick to his appeasement approach if provocative actions by North Korea, such as high-profile missile tests or border incursions, undermine public support for his policy at home. Committing to US alliance and pragmatic diplomacy Lee was previously accused by his critics of tilting toward Pyongyang and Beijing and away from Washington and Tokyo. He once slammed a U.S. missile defense system in South Korea as a source of tensions and likened strengthening U.S.-Japan ties to a 1905 Washington-Tokyo agreement that he said eventually helped Japan colonize the Korean Peninsula. But Lee has recently refrained from making similar contentious comments, instead repeatedly pledging to pursue pragmatic diplomacy. He has vowed to enhance South Korea's alliance with the U.S. and their trilateral cooperation with Japan, while also emphasizing the need to reduce tensions with North Korea and avoid frictions with China and Russia. While Lee may eventually take steps to improve ties with North Korea and China — relations that deteriorated under Yoon, who prioritized the U.S. and Japan — experts say Lee is unlikely to take drastic actions that might undermine the alliance with Washington or negatively impact South Korea's financial markets. Lee has stated that he will address thorny historical disputes with Japan separately from matters of security, trade, and other issues. However, many experts believe he is unlikely to completely reverse the progress made in Seoul-Tokyo relations in recent years. Japanese Prime Minister Shigeru Ishiba said Wednesday that he hopes to hold summit talks with Lee 'as early as possible' and expressed a desire to further strengthen bilateral ties. Cleaning the mess at home Long accused by critics of being a divisive populist, Lee pledged unity throughout his campaign, vowing not to target conservatives and calling for an end to South Korea's deep political polarization and a return to dialogue and compromise. However, he has also pledged a thorough investigation into the circumstances surrounding Yoon's martial law stunt — a saga that could continue to overshadow Lee's presidency and spark tensions with conservatives, especially as the ousted conservative faces a high-stakes criminal trial on rebellion charges punishable by death or life imprisonment. While Yoon defended his martial law decree as a necessary response to what he called the Democratic Party's abuse of its legislative majority to obstruct his agenda, that same majority now gives Lee a far more favorable environment to advance his policies. Conservatives have voiced concern that this could give Lee partially unchecked power and enable him to advance legislation that shields his presidency from his own legal troubles. Lee faces five separate trials on corruption and other charges, but the hearings were suspended ahead of Tuesday's election. While South Korea's constitution shields sitting presidents from most criminal prosecution aside of rebellion or treason, it doesn't clearly state whether this protection extends to preelection indictments. The Democrats have been pushing to revise the criminal procedure law to keep Lee's trials suspended during his term, drawing criticism from conservatives. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. 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The Hill
a day ago
- Business
- The Hill
New South Korean President Lee faces crucial challenges at home and abroad
SEOUL, South Korea (AP) — Winning a tense election that capped off months of political turmoil, new South Korean President Lee Jae-myung described his victory as the start of the country's return to normalcy following the crisis sparked by then-conservative leader Yoon Suk Yeol's imposition of martial law in December. But the outspoken liberal, who assumed office immediately on Wednesday without a transition period, takes the helm during a highly challenging time for the country, which has struggled mightily to revive a faltering economy battered by months of political paralysis and compounded by U.S. President Donald Trump's tariff hikes. Lee also inherits from Yoon the escalating threat of North Korea's nuclear ambitions, now further complicated by Pyongyang's deepening alignment with Moscow over Russian President Vladimir Putin's war on Ukraine. Here's a look at the key challenges facing Lee's government: In his inauguration speech, Lee identified the economy as his top priority, vowing to immediately launch an emergency task force to wage a 'head-on battle' against the looming threat of recession and to boost government spending to jumpstart economic activity. South Korean economic institutions have repeatedly sounded the alarm in recent months over the state of the economy, citing sluggish business investment, weak consumer spending, a deteriorating job market and a trade environment worsened by Trump's tariffs and other America-first policies. Despite the country's strikingly high household debt, the central bank last week lowered borrowing costs in a desperate bid to inject more money into the economy and slashed its 2025 growth forecast to 0.8%, which would be the weakest since a 0.7% contraction during the COVID-19 crisis in 2020. Lee won't have much time to negotiate with Washington before July 9, when Trump's 90-day pause in global reciprocal tariffs is set to expire, potentially exposing South Korean products to 25% tax rates. Although a U.S. federal court recently ruled that Trump lacks authority to impose his planned tariffs, the White House has appealed, leaving the outcome uncertain. Trump has also pushed for product-specific tariffs on key sectors like autos and semiconductors, which make up a major share of South Korean exports. Trump could also seek a broader deal requiring Seoul to pay significantly more for the 28,000 U.S. troops stationed in South Korea to deter North Korean threats. While Seoul's previous government had aimed to reach a 'package' deal with Trump by early July, Lee has preached patience on tariffs, saying it would be against national interests to obsess with an early agreement. In his inaugural address, Lee promised to reopen a communication channel with North Korea to ease tensions. But prospects for the early resumption of dialogue between the rival Koreas are dim, as North Korea has been constantly rejecting dialogue offers by South Korea and the U.S. since 2019, when talks between Washington and Pyongyang collapsed over disagreements on economic sanctions. North Korea's priority in foreign policy is now firmly Russia, which has received thousands of North Korean troops and large amounts of military equipment in recent months for its warfighting in Ukraine. During campaigning, Lee acknowledged that it would be 'very difficult' to arrange a summit with North Korean leader Kim Jong Un anytime soon, though it's something he will seek. Lee said he would support Trump's efforts to restart nuclear diplomacy with Kim, saying that improved ties between Pyongyang and Washington could allow aid projects for the impoverished North that will likely require South Korean support. Lee nominated former Unification Minister Lee Jong-seok, a dove who espouses reconciliation with North Korea, as his spy chief. The nomination likely reflects Lee Jae-myung's hopes to revive inter-Korean dialogue, given the behind-the-scene roles of the National Intelligence Service played to reach out to Pyongyang under the past liberal governments. However, many experts also note that Lee Jae-myung does not share the same level of Korean nationalist zeal as his liberal predecessors, and they question how firmly he would stick to his appeasement approach if provocative actions by North Korea, such as high-profile missile tests or border incursions, undermine public support for his policy at home. Lee was previously accused by his critics of tilting toward Pyongyang and Beijing and away from Washington and Tokyo. He once slammed a U.S. missile defense system in South Korea as a source of tensions and likened strengthening U.S.-Japan ties to a 1905 Washington-Tokyo agreement that he said eventually helped Japan colonize the Korean Peninsula. But Lee has recently refrained from making similar contentious comments, instead repeatedly pledging to pursue pragmatic diplomacy. He has vowed to enhance South Korea's alliance with the U.S. and their trilateral cooperation with Japan, while also emphasizing the need to reduce tensions with North Korea and avoid frictions with China and Russia. While Lee may eventually take steps to improve ties with North Korea and China — relations that deteriorated under Yoon, who prioritized the U.S. and Japan — experts say Lee is unlikely to take drastic actions that might undermine the alliance with Washington or negatively impact South Korea's financial markets. Lee has stated that he will address thorny historical disputes with Japan separately from matters of security, trade, and other issues. However, many experts believe he is unlikely to completely reverse the progress made in Seoul-Tokyo relations in recent years. Japanese Prime Minister Shigeru Ishiba said Wednesday that he hopes to hold summit talks with Lee 'as early as possible' and expressed a desire to further strengthen bilateral ties. Long accused by critics of being a divisive populist, Lee pledged unity throughout his campaign, vowing not to target conservatives and calling for an end to South Korea's deep political polarization and a return to dialogue and compromise. However, he has also pledged a thorough investigation into the circumstances surrounding Yoon's martial law stunt — a saga that could continue to overshadow Lee's presidency and spark tensions with conservatives, especially as the ousted conservative faces a high-stakes criminal trial on rebellion charges punishable by death or life imprisonment. While Yoon defended his martial law decree as a necessary response to what he called the Democratic Party's abuse of its legislative majority to obstruct his agenda, that same majority now gives Lee a far more favorable environment to advance his policies. Conservatives have voiced concern that this could give Lee partially unchecked power and enable him to advance legislation that shields his presidency from his own legal troubles. Lee faces five separate trials on corruption and other charges, but the hearings were suspended ahead of Tuesday's election. While South Korea's constitution shields sitting presidents from most criminal prosecution aside of rebellion or treason, it doesn't clearly state whether this protection extends to preelection indictments. The Democrats have been pushing to revise the criminal procedure law to keep Lee's trials suspended during his term, drawing criticism from conservatives.
Winnipeg Free Press
a day ago
- Business
- Winnipeg Free Press
New South Korean President Lee faces crucial challenges at home and abroad
SEOUL, South Korea (AP) — Winning a tense election that capped off months of political turmoil, new South Korean President Lee Jae-myung described his victory as the start of the country's return to normalcy following the crisis sparked by then-conservative leader Yoon Suk Yeol's imposition of martial law in December. But the outspoken liberal, who assumed office immediately on Wednesday without a transition period, takes the helm during a highly challenging time for the country, which has struggled mightily to revive a faltering economy battered by months of political paralysis and compounded by U.S. President Donald Trump's tariff hikes. Lee also inherits from Yoon the escalating threat of North Korea's nuclear ambitions, now further complicated by Pyongyang's deepening alignment with Moscow over Russian President Vladimir Putin's war on Ukraine. Here's a look at the key challenges facing Lee's government: Addressing a slow economy and Trump's tariffs In his inauguration speech, Lee identified the economy as his top priority, vowing to immediately launch an emergency task force to wage a 'head-on battle' against the looming threat of recession and to boost government spending to jumpstart economic activity. South Korean economic institutions have repeatedly sounded the alarm in recent months over the state of the economy, citing sluggish business investment, weak consumer spending, a deteriorating job market and a trade environment worsened by Trump's tariffs and other America-first policies. Despite the country's strikingly high household debt, the central bank last week lowered borrowing costs in a desperate bid to inject more money into the economy and slashed its 2025 growth forecast to 0.8%, which would be the weakest since a 0.7% contraction during the COVID-19 crisis in 2020. Lee won't have much time to negotiate with Washington before July 9, when Trump's 90-day pause in global reciprocal tariffs is set to expire, potentially exposing South Korean products to 25% tax rates. Although a U.S. federal court recently ruled that Trump lacks authority to impose his planned tariffs, the White House has appealed, leaving the outcome uncertain. Trump has also pushed for product-specific tariffs on key sectors like autos and semiconductors, which make up a major share of South Korean exports. Trump could also seek a broader deal requiring Seoul to pay significantly more for the 28,000 U.S. troops stationed in South Korea to deter North Korean threats. While Seoul's previous government had aimed to reach a 'package' deal with Trump by early July, Lee has preached patience on tariffs, saying it would be against national interests to obsess with an early agreement. Navigating North Korea's nuclear threat In his inaugural address, Lee promised to reopen a communication channel with North Korea to ease tensions. But prospects for the early resumption of dialogue between the rival Koreas are dim, as North Korea has been constantly rejecting dialogue offers by South Korea and the U.S. since 2019, when talks between Washington and Pyongyang collapsed over disagreements on economic sanctions. North Korea's priority in foreign policy is now firmly Russia, which has received thousands of North Korean troops and large amounts of military equipment in recent months for its warfighting in Ukraine. During campaigning, Lee acknowledged that it would be 'very difficult' to arrange a summit with North Korean leader Kim Jong Un anytime soon, though it's something he will seek. Lee said he would support Trump's efforts to restart nuclear diplomacy with Kim, saying that improved ties between Pyongyang and Washington could allow aid projects for the impoverished North that will likely require South Korean support. Lee nominated former Unification Minister Lee Jong-seok, a dove who espouses reconciliation with North Korea, as his spy chief. The nomination likely reflects Lee Jae-myung's hopes to revive inter-Korean dialogue, given the behind-the-scene roles of the National Intelligence Service played to reach out to Pyongyang under the past liberal governments. However, many experts also note that Lee Jae-myung does not share the same level of Korean nationalist zeal as his liberal predecessors, and they question how firmly he would stick to his appeasement approach if provocative actions by North Korea, such as high-profile missile tests or border incursions, undermine public support for his policy at home. Committing to US alliance and pragmatic diplomacy Lee was previously accused by his critics of tilting toward Pyongyang and Beijing and away from Washington and Tokyo. He once slammed a U.S. missile defense system in South Korea as a source of tensions and likened strengthening U.S.-Japan ties to a 1905 Washington-Tokyo agreement that he said eventually helped Japan colonize the Korean Peninsula. But Lee has recently refrained from making similar contentious comments, instead repeatedly pledging to pursue pragmatic diplomacy. He has vowed to enhance South Korea's alliance with the U.S. and their trilateral cooperation with Japan, while also emphasizing the need to reduce tensions with North Korea and avoid frictions with China and Russia. While Lee may eventually take steps to improve ties with North Korea and China — relations that deteriorated under Yoon, who prioritized the U.S. and Japan — experts say Lee is unlikely to take drastic actions that might undermine the alliance with Washington or negatively impact South Korea's financial markets. Lee has stated that he will address thorny historical disputes with Japan separately from matters of security, trade, and other issues. However, many experts believe he is unlikely to completely reverse the progress made in Seoul-Tokyo relations in recent years. Japanese Prime Minister Shigeru Ishiba said Wednesday that he hopes to hold summit talks with Lee 'as early as possible' and expressed a desire to further strengthen bilateral ties. Cleaning the mess at home Long accused by critics of being a divisive populist, Lee pledged unity throughout his campaign, vowing not to target conservatives and calling for an end to South Korea's deep political polarization and a return to dialogue and compromise. However, he has also pledged a thorough investigation into the circumstances surrounding Yoon's martial law stunt — a saga that could continue to overshadow Lee's presidency and spark tensions with conservatives, especially as the ousted conservative faces a high-stakes criminal trial on rebellion charges punishable by death or life imprisonment. While Yoon defended his martial law decree as a necessary response to what he called the Democratic Party's abuse of its legislative majority to obstruct his agenda, that same majority now gives Lee a far more favorable environment to advance his policies. Conservatives have voiced concern that this could give Lee partially unchecked power and enable him to advance legislation that shields his presidency from his own legal troubles. Lee faces five separate trials on corruption and other charges, but the hearings were suspended ahead of Tuesday's election. While South Korea's constitution shields sitting presidents from most criminal prosecution aside of rebellion or treason, it doesn't clearly state whether this protection extends to preelection indictments. The Democrats have been pushing to revise the criminal procedure law to keep Lee's trials suspended during his term, drawing criticism from conservatives.
The Hindu
2 days ago
- Business
- The Hindu
Palantir defies tech gloom as Trump momentum powers stellar share gains
Palantir Technologies has succeeded where most tech stocks have struggled this year: staying hot in a cooling market. The company's military-grade AI tools along with its deep defense ties and high-level government connections at a time when the U.S. is boosting spending on defense software have helped investors raise the bets on the stock. It has surged more than 70% this year and is the S&P 500's second-best performer: a standout in an otherwise sluggish tech market roiled by investor worries over U.S. tariffs and economic uncertainty. Palantir co-founder Peter Thiel was an early backer of President Donald Trump and has close ties with key Washington lawmakers, including Vice President JD Vance, whom he supported in a 2022 U.S. Senate race. "The relationships that Palantir's with senior members of the Trump administration are helpful for business," D.A. Davidson analyst Gil Luria said. Palantir in April won a $30 million contract from the U.S. Immigration and Customs Enforcement to develop an operating system that identifies undocumented immigrants and tracks self-deportations, its largest single award from the agency among 46 federal contract actions since 2011. "They probably benefit a little bit more with Trump because of the impetus on security, border and immigration," said Francisco Bido, senior portfolio manager at Palantir investor F/m Investments. "They're going to get a lot of work out of that." Palantir, however, downplayed the impact of political goodwill. "The politics around it change, so it gets increased visibility but we've been working with ICE since 2010," the company's communications head, Lisa Gordon, told Reuters. Founded in 2003 and listed in 2020, Palantir, which was initially backed by the CIA, has drawn investor interest in its growing AI platform that allows companies to simulate AI-related scenarios, debug code and test large language models. "No other large software company can currently combine that level of growth with high profitability and unique offering," Luria said. But its growth has largely been driven by U.S. government contracts which made up for more than 42% of its revenue in the March quarter. Sales to U.S. businesses accounted for 29%, while commercial sales outside the U.S. were down 5% from a year ago: a slide that some analysts point to Palantir's polarising political profile and America-first stance. The rally in its stock builds on a 12-fold surge over the past two years that outpaced gains in red-hot companies such as Nvidia and brings with it a valuation premium. Palantir trades at a forward price-to-earnings ratio of 200.47, compared with Nvidia's 27.96.
