Latest news with #LauraGottesdiener
The Market Online
06-05-2025
- The Market Online
Reuters wins 2025 Pulitzer Prize for investigative fentanyl crisis reporting
Reuters has been awarded the 2025 Pulitzer Prize for Investigative Reporting for its exposé 'Fentanyl Express,' a seven-part series that penetrated the shadowy global trade in the chemicals used to manufacture fentanyl The award recognizes the efforts of a team of Reuters journalists who infiltrated the clandestine supply chain behind one of the deadliest drug epidemics in North America's history In a bold and risky move, the Reuters team went undercover to purchase the ingredients needed to make fentanyl, using the transactions to map the intricate and often overlooked supply routes that fuel the opioid crisis Thomson Reuters stock (TSX:TRI) opened trading at C$255.81 Reuters has been awarded the 2025 Pulitzer Prize for Investigative Reporting for its exposé 'Fentanyl Express,' a seven-part series that penetrated the shadowy global trade in the chemicals used to manufacture fentanyl — the synthetic opioid at the center of a crisis that has claimed the lives of more than 450,000 Americans and nearly 50,000 Canadians from 2016 to 2024. The award recognizes the efforts of a team of Reuters journalists who infiltrated the clandestine supply chain behind one of the deadliest drug epidemics in North America's history. Reporters Maurice Tamman, Laura Gottesdiener, Stephen Eisenhammer, Drazen Jorgic, Daisy Chung, Kristina Cooke, Michael Martina, Antoni Slodkowski, and Shannon Stapleton, under the editorial leadership of investigative editor Marla Dickerson and visual editor Feilding Cage, conducted a months-long investigation that exposed how Chinese-made precursor chemicals are easily and cheaply available — and how global and U.S. authorities have struggled to stop their flow. In a bold and risky move, the Reuters team went undercover to purchase the ingredients needed to make fentanyl, using the transactions to map the intricate and often overlooked supply routes that fuel the opioid crisis. Their reporting revealed how these chemicals are marketed online, shipped with minimal oversight, and distributed through a loosely regulated international network. 'Fentanyl Express' not only illuminated the mechanics of this deadly trade but also laid bare the failures of successive U.S. administrations — from Trump to Biden — to effectively disrupt it, despite high-profile diplomatic and law enforcement efforts. The series has already garnered significant acclaim, including honors from the White House Correspondents' Association and the Overseas Press Club. 'We are deeply honored to receive this prestigious award, which recognizes the tireless and courageous efforts of our journalists to shed light on one of the most pressing issues of our time,' Reuters' editor-in-chief, Alessandra Galloni said in a news release. 'The 'Fentanyl Express' series is a testament to the power of investigative journalism to drive change and hold those in power accountable. I am incredibly proud of the team for their dedication to reporting this important story in unique, rich and searing detail.' The Pulitzer Board commended the series for its 'fearless reporting, innovative investigative techniques, and powerful storytelling that brought clarity and urgency to a complex and devastating crisis.' The Reuters news agency, under parent company Thomson Reuters (TSX:TRI) supplies business, financial and global news to media organizations, professionals and news consumers. Thomson Reuters Corp. provides business information services. Thomson Reuters stock (TSX:TRI) opened trading at C$255.81. Join the discussion: Find out what everybody's saying about this stock on the Thomson Reuters Bullboard, and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
Yahoo
28-03-2025
- Yahoo
U.S. logistics firm settles claims it helped Chinese companies ship fentanyl chemicals
By Laura Gottesdiener (Reuters) -U.S. shipping and logistics company IMC Pro International has agreed to pay $400,000 to the U.S. government to settle allegations that it helped Chinese chemical companies ship fentanyl-making chemicals to the United States, according to U.S. authorities. The deal was announced on Wednesday by the Drug Enforcement Administration and the U.S. Attorney's Office for the Western District of Texas. It marks the first time a U.S. shipping company has settled accusations that it violated the Controlled Substances Act by transshipping fentanyl precursors through the United States. The monetary settlement does not include an admission of guilt. Chemical smugglers increasingly route fentanyl precursors through the U.S. and then down to Mexico, where the chemicals are turned into street fentanyl in clandestine labs. These packages are hidden in plain sight amid the deluge of cheap e-commerce goods that arrive by air from China to the U.S. each day. Last year, Reuters became the first news organization to reveal this circuitous but effective smuggling route and the way an obscure U.S. trade provision has aided traffickers. The rule, known as 'de minimis,' allows merchandise with a value totaling less than $800 to enter the country duty-free and with minimal inspections. 'This first-of-its-kind settlement exposes loopholes some companies are exploiting to bring poison to our communities,' said Daniel Comeaux, Special Agent in Charge of the DEA's Houston Division. The case began in 2023 when U.S. authorities seized five boxes of fentanyl-making chemicals in Eagle Pass, Texas, along the border with Mexico. IMC Pro was listed as the company that sent the packages. The value of the contents was listed as under $800, which would have made the parcels eligible for streamlined entry under de minimis, authorities said. But IMC Pro was not the sender, authorities learned. Instead, it had struck deals with Chinese chemical companies that gave them access to IMC Pro's shipping accounts. This allowed the Chinese firms to pre-print U.S. shipping labels that listed IMC Pro as the company that sent the goods, authorities said, in what appears to be an attempt to obscure their origins. An employee at IMC Pro reached by telephone on Thursday said the company declined to comment. The company did not respond to emailed questions. IMC Pro was founded in 1994 and has offices in Compton, California, and Bensenville, Illinois, according to its website. The seized boxes contained over 25 kilograms of 1-boc-4-piperidone, a regulated chemical that is a common precursor used by fentanyl cooks in Mexico. The parcels also contained nearly 140 kilograms of (2-bromoethyl)benzene, another key fentanyl ingredient that is on the DEA's Special Surveillance List. These chemicals were slated to be routed across the border into Mexico, authorities said. As part of an investigation published last year, Reuters purchased both of these chemicals from Chinese sellers in order to penetrate the shadowy supply chain of fentanyl precursor chemicals. This investigation revealed that it remains astonishingly cheap and easy to purchase these chemicals, and that Washington's own trade policies have turned the United States into a major transshipment hub for Chinese fentanyl chemicals, stoking an overdose death toll approaching 450,000 American lives.
Yahoo
14-02-2025
- Business
- Yahoo
Trump closed the ‘de minimis' import loophole ‒ until all hell broke loose
By Laura Gottesdiener and Stephen Eisenhammer (Reuters) - Days after U.S. President Donald Trump ended duty-free entry for cheap Chinese goods entering the U.S., his administration put the order on hold after more than a million packages piled up at New York's John F. Kennedy International Airport. It was the result of a rushed, confusing policy change that proved unworkable on short notice. Government officials are now scrambling to implement the order in a way that won't cripple America's hyper-efficient import system. Trump's executive order took aim at a little-known trade rule called "de minimis." Merchandise with a value totaling less than $800 is allowed to enter the country duty-free and with minimal inspections. The number of shipments entering the U.S. through this tax-free channel has exploded in recent years, reaching nearly 1.4 billion packages last year, due largely to online shopping. More than 90% of all packages coming into the U.S. now enter via de minimis. Of those, about 60% come from China, led by direct-to-consumer retailers such as Temu and Shein. Trump campaigned on a promise to punish China for the role it has played in the synthetic opioid crisis that has killed more than 450,000 Americans in the last decade. Chinese chemical makers are the top suppliers of raw materials purchased by Mexico's cartels to produce the deadly drug, U.S. anti-narcotics officials say. A Reuters investigation last year detailed how traffickers often route these chemicals through the United States by exploiting the de minimis rule. China has repeatedly denied culpability. In a February 1 executive order, Trump announced an additional 10% across-the-board tariff on all Chinese imports and ended the de minimis exemption for Chinese low-value packages that had previously entered duty free. The White House gave just three days for the policy to take effect. On February 7, the portion of Trump's order affecting de minimis parcels was paused because those responsible for carrying out the order had not been given sufficient time to prepare. Packages were stacking up at ports of entry, including at JFK Airport. Logistics experts say it was impossible for major parcel carriers, e-commerce platforms, the U.S. Postal Service and U.S. Customs and Border Protection (CBP) to overhaul their operations in a matter of days to begin collecting tariffs on previously exempt goods, especially with millions of de minimis packages already en route from China. "You just can't snap your fingers….it doesn't work that way," said former senior CBP official John Leonard, who retired from the agency in 2024. Leonard said these types of major changes have traditionally taken months to implement, and they involve close collaboration between CBP and the private sector. The U.S. de minimis rule, which dates back to 1938, has been the target of growing criticism from both Democratic and Republican lawmakers. Some have derided it as a loophole that allows cheap Chinese products to flood into the U.S. and undercut American industries, while also serving as cover for smuggling contraband such as illegal drugs and their precursor chemicals. A Reuters series last year penetrated the supply chain for fentanyl-making chemicals and showed how traffickers take advantage of the massive volume of de minimis packages in order to sneak precursors into the country. Despite growing consensus for the need to reduce the number of packages coming in through de minimis, the sheer volume means that any changes to the regulations need to be well considered and implemented on a time frame that gives shippers and CBP time to adjust, a half-dozen private logistics experts, former customs officials and politicians told Reuters. The need to pay duties on the millions of low-value packages coming from China each day also risks slowing a shipping system built to move parcels quickly and that is ill-equipped to store large quantities of goods for any length of time. American shoppers have become accustomed to nearly seamless delivery of online orders of affordable clothing and gadgets from China. U.S. Representative Rosa DeLauro, a Connecticut Democrat, supports ending de minimis exemptions entirely for all countries, not just China. But she said Trump's surprise order caught the shipping industry off guard. The federal government traditionally would solicit input from affected parties and give them months to prepare. "You have to have put in place some sort of an infrastructure," DeLauro said. "You don't start saying, 'I'm going to change the world,' and then don't figure out how the heck you're going to do that." She also criticized Trump's order as being too geographically limited. She said companies currently manufacturing in China could move operations to places such as Vietnam and Thailand and export it from there in efforts to skirt the de minimis ban on Chinese goods. Trump has now put the Commerce Department in charge of figuring out how to make his policy work. A particular challenge is the government-owned United States Postal Service (USPS). Although USPS only accounted for about 5% of last year's total de minimis shipments, some 75 million parcels, experts described it as the Achilles heel of any policy to remove tariff exemptions on low-value shipments. USPS, with a history developed around the receiving and sending of letters, is not set up to assess and process duties on packages of sweaters, shoes and headphones coming from abroad. Express carriers like FedEx, UPS and DHL have in-house customs brokerage divisions that collect any tariffs owed by package recipients, and these companies often handle every step of a delivery, from drop-off to doorstep. In contrast, USPS receives items from foreign postal services that are flown into a handful of international mail facilities at major U.S. airports. These packages often arrive with limited information about their contents. In addition, USPS is not set up to process tariffs. "The postal service has absolutely no way, themselves, to collect duty or pay duty to the government," said Cindy Allen, CEO of Trade Force Multiplier, an international trade consultancy service, and a former CBP official. Following Trump's order, USPS on February 4 temporarily stopped accepting incoming packages from China and Hong Kong as it worked to figure out how the duties might be collected. It reversed course some 12 hours later. In a public statement, the postal service said it was working with CBP to "implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery." To start processing duty on millions of incoming packages, USPS would likely have to partner with customs brokers, experts said. Another option would be to exempt USPS from the new rules. But that could drive a surge of low-value goods into the international mail, where CBP has struggled to effectively screen parcels and comply with legislation aimed at stopping fentanyl trafficking. USPS did not reply to requests for comment. The U.S. Postal Inspection Service, the law enforcement arm of the agency, told Reuters last year that it works tirelessly with U.S. Customs and other partners "to combat illicit drugs entering the mail." DHL, UPS and FedEx said they comply with all regulations and have the capacity to adapt to the changes as required. CBP did not respond to a request for comment. CBP is also going to need more people inspecting incoming packages, experts said. It is unclear where those extra personnel might come from given that the Trump administration is now focused on downsizing the federal workforce. The Trump administration intends to reinstate the ban on de minimis "in short order," an administration official told Reuters. Whenever that is, it could be another rocky rollout, said Lars-Erik Hjelm, a lawyer specializing in international trade law who used to work for U.S customs. Global shipping routes can be circuitous, with goods frequently passing through various countries before entering the United States. Hjelm said that presents a challenge because it would be harder to establish the Chinese origin of the merchandise. "It's going to be chaotic, no matter what," he said.
Yahoo
14-02-2025
- Business
- Yahoo
Trump closed the ‘de minimis' import loophole ‒ until all hell broke loose
By Laura Gottesdiener and Stephen Eisenhammer (Reuters) - Days after U.S. President Donald Trump ended duty-free entry for cheap Chinese goods entering the U.S., his administration put the order on hold after more than a million packages piled up at New York's John F. Kennedy International Airport. It was the result of a rushed, confusing policy change that proved unworkable on short notice. Government officials are now scrambling to implement the order in a way that won't cripple America's hyper-efficient import system. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. Trump's executive order took aim at a little-known trade rule called "de minimis." Merchandise with a value totaling less than $800 is allowed to enter the country duty-free and with minimal inspections. The number of shipments entering the U.S. through this tax-free channel has exploded in recent years, reaching nearly 1.4 billion packages last year, due largely to online shopping. More than 90% of all packages coming into the U.S. now enter via de minimis. Of those, about 60% come from China, led by direct-to-consumer retailers such as Temu and Shein. Trump campaigned on a promise to punish China for the role it has played in the synthetic opioid crisis that has killed more than 450,000 Americans in the last decade. Chinese chemical makers are the top suppliers of raw materials purchased by Mexico's cartels to produce the deadly drug, U.S. anti-narcotics officials say. A Reuters investigation last year detailed how traffickers often route these chemicals through the United States by exploiting the de minimis rule. China has repeatedly denied culpability. In a February 1 executive order, Trump announced an additional 10% across-the-board tariff on all Chinese imports and ended the de minimis exemption for Chinese low-value packages that had previously entered duty free. The White House gave just three days for the policy to take effect. On February 7, the portion of Trump's order affecting de minimis parcels was paused because those responsible for carrying out the order had not been given sufficient time to prepare. Packages were stacking up at ports of entry, including at JFK Airport. Logistics experts say it was impossible for major parcel carriers, e-commerce platforms, the U.S. Postal Service and U.S. Customs and Border Protection (CBP) to overhaul their operations in a matter of days to begin collecting tariffs on previously exempt goods, especially with millions of de minimis packages already en route from China. "You just can't snap your fingers….it doesn't work that way," said former senior CBP official John Leonard, who retired from the agency in 2024. Leonard said these types of major changes have traditionally taken months to implement, and they involve close collaboration between CBP and the private sector. The U.S. de minimis rule, which dates back to 1938, has been the target of growing criticism from both Democratic and Republican lawmakers. Some have derided it as a loophole that allows cheap Chinese products to flood into the U.S. and undercut American industries, while also serving as cover for smuggling contraband such as illegal drugs and their precursor chemicals. A Reuters series last year penetrated the supply chain for fentanyl-making chemicals and showed how traffickers take advantage of the massive volume of de minimis packages in order to sneak precursors into the country. Despite growing consensus for the need to reduce the number of packages coming in through de minimis, the sheer volume means that any changes to the regulations need to be well considered and implemented on a time frame that gives shippers and CBP time to adjust, a half-dozen private logistics experts, former customs officials and politicians told Reuters. The need to pay duties on the millions of low-value packages coming from China each day also risks slowing a shipping system built to move parcels quickly and that is ill-equipped to store large quantities of goods for any length of time. American shoppers have become accustomed to nearly seamless delivery of online orders of affordable clothing and gadgets from China. U.S. Representative Rosa DeLauro, a Connecticut Democrat, supports ending de minimis exemptions entirely for all countries, not just China. But she said Trump's surprise order caught the shipping industry off guard. The federal government traditionally would solicit input from affected parties and give them months to prepare. "You have to have put in place some sort of an infrastructure," DeLauro said. "You don't start saying, 'I'm going to change the world,' and then don't figure out how the heck you're going to do that." She also criticized Trump's order as being too geographically limited. She said companies currently manufacturing in China could move operations to places such as Vietnam and Thailand and export it from there in efforts to skirt the de minimis ban on Chinese goods. Trump has now put the Commerce Department in charge of figuring out how to make his policy work. A particular challenge is the government-owned United States Postal Service (USPS). Although USPS only accounted for about 5% of last year's total de minimis shipments, some 75 million parcels, experts described it as the Achilles heel of any policy to remove tariff exemptions on low-value shipments. USPS, with a history developed around the receiving and sending of letters, is not set up to assess and process duties on packages of sweaters, shoes and headphones coming from abroad. Express carriers like FedEx, UPS and DHL have in-house customs brokerage divisions that collect any tariffs owed by package recipients, and these companies often handle every step of a delivery, from drop-off to doorstep. In contrast, USPS receives items from foreign postal services that are flown into a handful of international mail facilities at major U.S. airports. These packages often arrive with limited information about their contents. In addition, USPS is not set up to process tariffs. "The postal service has absolutely no way, themselves, to collect duty or pay duty to the government," said Cindy Allen, CEO of Trade Force Multiplier, an international trade consultancy service, and a former CBP official. Following Trump's order, USPS on February 4 temporarily stopped accepting incoming packages from China and Hong Kong as it worked to figure out how the duties might be collected. It reversed course some 12 hours later. In a public statement, the postal service said it was working with CBP to "implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery." To start processing duty on millions of incoming packages, USPS would likely have to partner with customs brokers, experts said. Another option would be to exempt USPS from the new rules. But that could drive a surge of low-value goods into the international mail, where CBP has struggled to effectively screen parcels and comply with legislation aimed at stopping fentanyl trafficking. USPS did not reply to requests for comment. The U.S. Postal Inspection Service, the law enforcement arm of the agency, told Reuters last year that it works tirelessly with U.S. Customs and other partners "to combat illicit drugs entering the mail." DHL, UPS and FedEx said they comply with all regulations and have the capacity to adapt to the changes as required. CBP did not respond to a request for comment. CBP is also going to need more people inspecting incoming packages, experts said. It is unclear where those extra personnel might come from given that the Trump administration is now focused on downsizing the federal workforce. The Trump administration intends to reinstate the ban on de minimis "in short order," an administration official told Reuters. Whenever that is, it could be another rocky rollout, said Lars-Erik Hjelm, a lawyer specializing in international trade law who used to work for U.S customs. Global shipping routes can be circuitous, with goods frequently passing through various countries before entering the United States. Hjelm said that presents a challenge because it would be harder to establish the Chinese origin of the merchandise. "It's going to be chaotic, no matter what," he said.
