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Nahar Net
19 hours ago
- Politics
- Nahar Net
US and Iran have long complicated history, far beyond Israel's strikes on Tehran
Jeffrey Fields USC Dornsife College of Letters, Arts and Sciences Relations between the United States and Iran have been fraught for decades – at least since the U.S. helped overthrow a democracy-minded prime minister, Mohammed Mossadegh, in August 1953. The U.S. then supported the long, repressive reign of the Shah of Iran, whose security services brutalized Iranian citizens for decades. The two countries have been particularly hostile to each other since Iranian students took over the U.S. Embassy in Tehran in November 1979, resulting in economic sanctions and the severing of formal diplomatic relations between the nations. Since 1984, the U.S. State Department has listed Iran as a "state sponsor of terrorism," alleging the Iranian government provides terrorists with training, money and weapons. Some of the major events in U.S.-Iran relations highlight the differences between the nations' views, but others arguably presented real opportunities for reconciliation. 1953: US overthrows Mossadegh In 1951, the Iranian Parliament chose a new prime minister, Mossadegh, who then led lawmakers to vote in favor of taking over the Anglo-Iranian Oil Company, expelling the company's British owners and saying they wanted to turn oil profits into investments in the Iranian people. The U.S. feared disruption in the global oil supply and worried about Iran falling prey to Soviet influence. The British feared the loss of cheap Iranian oil. President Dwight Eisenhower decided it was best for the U.S. and the U.K. to get rid of Mossadegh. Operation Ajax, a joint CIA-British operation, convinced the Shah of Iran, the country's monarch, to dismiss Mossadegh and drive him from office by force. Mossadegh was replaced by a much more Western-friendly prime minister, handpicked by the CIA. 1979: Revolutionaries oust the shah, take hostages After more than 25 years of relative stability in U.S.-Iran relations, the Iranian public had grown unhappy with the social and economic conditions that developed under the dictatorial rule of Shah Mohammad Reza Pahlavi. Pahlavi enriched himself and used American aid to fund the military while many Iranians lived in poverty. Dissent was often violently quashed by SAVAK, the shah's security service. In January 1979, the shah left Iran, ostensibly to seek cancer treatment. Two weeks later, Ayatollah Ruhollah Khomeini returned from exile in Iraq and led a drive to abolish the monarchy and proclaim an Islamic government. In October 1979, President Jimmy Carter agreed to allow the shah to come to the U.S. to seek advanced medical treatment. Outraged Iranian students stormed the U.S. Embassy in Tehran on Nov. 4, taking 52 Americans hostage. That convinced Carter to sever U.S. diplomatic relations with Iran on April 7, 1980. Two weeks later, the U.S. military launched a mission to rescue the hostages, but it failed, with aircraft crashes killing eight U.S. servicemembers. The shah died in Egypt in July 1980, but the hostages weren't released until Jan. 20, 1981, after 444 days of captivity. 1980-1988: US tacitly sides with Iraq In September 1980, Iraq invaded Iran, an escalation of the two countries' regional rivalry and religious differences: Iraq was governed by Sunni Muslims but had a Shia Muslim majority population; Iran was led and populated mostly by Shiites. The U.S. was concerned that the conflict would limit the flow of Middle Eastern oil and wanted to ensure the conflict didn't affect its close ally, Saudi Arabia. The U.S. supported Iraqi leader Saddam Hussein in his fight against the anti-American Iranian regime. As a result, the U.S. mostly turned a blind eye toward Iraq's use of chemical weapons against Iran. U.S. officials moderated their usual opposition to those illegal and inhumane weapons because the U.S. State Department did not "wish to play into Iran's hands by fueling its propaganda against Iraq." In 1988, the war ended in a stalemate. More than 500,000 military and 100,000 civilians died. 1981-1986: US secretly sells weapons to Iran The U.S. imposed an arms embargo after Iran was designated a state sponsor of terrorism in 1984. That left the Iranian military, in the middle of its war with Iraq, desperate for weapons and aircraft and vehicle parts to keep fighting. The Reagan administration decided that the embargo would likely push Iran to seek support from the Soviet Union, the U.S.'s Cold War rival. Rather than formally end the embargo, U.S. officials agreed to secretly sell weapons to Iran starting in 1981. The last shipment, of anti-tank missiles, was in October 1986. In November 1986, a Lebanese magazine exposed the deal. That revelation sparked the Iran-Contra scandal in the U.S., with Reagan's officials found to have collected money from Iran for the weapons and illegally sent those funds to anti-socialist rebels – the Contras – in Nicaragua. 1988: US Navy shoots down Iran Air flight 655 On the morning of July 8, 1988, the USS Vincennes, a guided missile cruiser patrolling in the international waters of the Persian Gulf, entered Iranian territorial waters while in a skirmish with Iranian gunboats. Either during or just after that exchange of gunfire, the Vincennes crew mistook a passing civilian Airbus passenger jet for an Iranian F-14 fighter. They shot it down, killing all 290 people aboard. The U.S. called it a "tragic and regrettable accident," but Iran believed the plane's downing was intentional. In 1996, the U.S. agreed to pay US$131.8 million in compensation to Iran. 1997-1998: The US seeks contact In August 1997, a moderate reformer, Mohammad Khatami, won Iran's presidential election. U.S. President Bill Clinton sensed an opportunity. He sent a message to Tehran through the Swiss ambassador there, proposing direct government-to-government talks. Shortly thereafter, in early January 1998, Khatami gave an interview to CNN in which he expressed "respect for the great American people," denounced terrorism and recommended an "exchange of professors, writers, scholars, artists, journalists and tourists" between the United States and Iran. However, Supreme Leader Ayatollah Ali Khamenei didn't agree, so not much came of the mutual overtures as Clinton's time in office came to an end. In his 2002 State of the Union address, President George W. Bush characterized Iran, Iraq and North Korea as constituting an "Axis of Evil" supporting terrorism and pursuing weapons of mass destruction, straining relations even further. 2002: Iran's nuclear program raises alarm In August 2002, an exiled rebel group announced that Iran had been secretly working on nuclear weapons at two installations that had not previously been publicly revealed. That was a violation of the terms of the Nuclear Nonproliferation Treaty, which Iran had signed, requiring countries to disclose their nuclear-related facilities to international inspectors. One of those formerly secret locations, Natanz, housed centrifuges for enriching uranium, which could be used in civilian nuclear reactors or enriched further for weapons. Starting in roughly 2005, U.S. and Israeli government cyberattackers together reportedly targeted the Natanz centrifuges with a custom-made piece of malicious software that became known as Stuxnet. That effort, which slowed down Iran's nuclear program was one of many U.S. and international attempts – mostly unsuccessful – to curtail Iran's progress toward building a nuclear bomb. 2003: Iran writes to Bush administration In May 2003, senior Iranian officials quietly contacted the State Department through the Swiss embassy in Iran, seeking "a dialogue 'in mutual respect,'" addressing four big issues: nuclear weapons, terrorism, Palestinian resistance and stability in Iraq. Hardliners in the Bush administration weren't interested in any major reconciliation, though Secretary of State Colin Powell favored dialogue and other officials had met with Iran about al-Qaida. When Iranian hardliner Mahmoud Ahmadinejad was elected president of Iran in 2005, the opportunity died. The following year, Ahmadinejad made his own overture to Washington in an 18-page letter to President Bush. The letter was widely dismissed; a senior State Department official told me in profane terms that it amounted to nothing. 2015: Iran nuclear deal signed After a decade of unsuccessful attempts to rein in Iran's nuclear ambitions, the Obama administration undertook a direct diplomatic approach beginning in 2013. Two years of secret, direct negotiations initially bilaterally between the U.S. and Iran and later with other nuclear powers culminated in the Joint Comprehensive Plan of Action, often called the Iran nuclear deal. Two years of secret, direct negotiations conducted bilaterally at first between the U.S. and Iran and later with other nuclear powers culminated in the Joint Comprehensive Plan of Action, often called the Iran nuclear deal. Iran, the U.S., China, France, Germany, Russia and the United Kingdom signed the deal in 2015. It severely limited Iran's capacity to enrich uranium and mandated that international inspectors monitor and enforce Iran's compliance with the agreement. In return, Iran was granted relief from international and U.S. economic sanctions. Though the inspectors regularly certified that Iran was abiding by the agreement's terms, President Donald Trump withdrew from the agreement in May 2018. 2020: US drones kill Iranian Maj. Gen. Qassem Soleimani On Jan. 3, 2020, an American drone fired a missile that killed Maj. Gen. Qassem Soleimani, the leader of Iran's elite Quds Force. Analysts considered Soleimani the second most powerful man in Iran, after Supreme Leader Ayatollah Khamenei. At the time, the Trump administration asserted that Soleimani was directing an imminent attack against U.S. assets in the region, but officials have not provided clear evidence to support that claim. Iran responded by launching ballistic missiles that hit two American bases in Iraq. 2023: The Oct. 7 attacks on Israel Hamas' brazen attack on Israel on Oct. 7, 2023, provoked a fearsome militarized response from Israel that continues today and served to severely weaken Iran's proxies in the region, especially Hamas – the perpetrator of the attacks – and Hezbollah in Lebanon. 2025: Trump 2.0 and Iran Trump saw an opportunity to forge a new nuclear deal with Iran and to pursue other business deals with Tehran. Once inaugurated for his second term, Trump appointed Steve Witkoff, a real estate investor who is the president's friend, to serve as special envoy for the Middle East and to lead negotiations. Negotiations for a nuclear deal between Washington and Tehran began in April, but the countries did not reach a deal. They were planning a new round of talks when Israel struck Iran with a series of airstrikes on June 13, forcing the White House to reconsider is position. This article is republished from The Conversation under a Creative Commons license. Read the original article here:
Yahoo
09-04-2025
- Business
- Yahoo
Trump hits China with 125% tariffs. What are tariffs and who pays for them?
China and the European Union unveiled stiff retaliation levies Wednesday aimed at countering President Donald Trump's latest tariff blitz, while Trump, unfazed, urged global companies to set up shop in the U.S. The Chinese Finance Ministry announced 84% tariffs on U.S. goods starting Thursday, up from the 34% previously announced, the finance ministry said Wednesday. On Wednesday − in the latest twist of the tariff saga that has roiled financial markets − President Trump said he was authorizing a 90-day pause in reciprocal fees while raising China's levy to 125%. Trump previously rolled out a flurry of reciprocal levies on trading partners, including one sky-high fee: a tax on Chinese goods of 104%. This was after implementing a sweeping tariffs plan that imposed 10% levies on almost all imports. Targeted U.S. tariffs of up to 50% on more than 50 nations went into effect Wednesday at 12:01 a.m. before being paused. Here is what to understand about tariffs. A tariff is a tax that a government imposes on goods imported from other countries. It is a type of trade regulation used to protect or generate revenue. Tariffs are not like income or sales taxes. Instead, they are levies — additional fees — placed on products imported to the country. Monica Morlacco, assistant professor of economics at the USC Dornsife College of Letters, Arts and Sciences, explain its functions. "Tariffs are typically imposed for protection or revenue purposes," she said. "A protective tariff increases the price of imported goods relative to domestic goods, encouraging consumers to buy from local producers, who are thus 'protected' from foreign competition. A revenue tariff, on the other hand, is mainly used to generate money for the government." Some think the foreign companies that make the goods pay the tariffs, but the cost of a tariff is typically paid by the importer of the goods. When a tariff is imposed, it increases the cost of importing a product into a country. The importer may absorb the higher cost or pass it on to consumers through higher prices. This means that while the importer pays the initial bill for the tariff, the financial burden often shifts to businesses and consumers in the form of increased prices. For example, if the U.S. government wants to protect American car manufacturers from foreign competition, it may impose a 10 percent tariff on imported cars from other countries. If a car that's manufactured in Japan costs $20,000, an importer must pay an extra $2,000 in tax. The total cost of the imported car would increase to $22,000, which may be passed down to the consumer. According to the Tax Policy Center, higher prices of goods in the U.S. will lead to fewer consumers buying goods. "In the short run, higher prices for imported goods will reduce consumption of those goods," they explained. "But in the longer term, the decline in competition from foreign products makes domestic firms less efficient. And less competition will result in higher prices, not just for those goods subject to the tariff but for competing goods that are not — such as those made domestically. In the case of Trump's tariffs on China, that means US consumers will pay somewhat higher prices." So even though it doesn't feel like a direct tax because it's not added on to an individual purchase, buyers are the ones covering the extra cost in the price of the item. Soybeans Crude petroleum Natural gas Pork and beef Automobiles Wine Fruits Nuts Steel and aluminum Solar panels Washing machines Consumer electronics (e.g., smartphones, laptops) Toys Apparel and footwear Machinery and tech components In the U.S., tariffs have been implemented since 1789, with the first significant tariff law enacted to help finance the newly established government. Morlacco states that the U.S. has not relied heavily on tariffs for a long time. "For example, in 1900, tariffs accounted for more than 41% of U.S. government income, but by 2013, that number had fallen to just 2%," she said. "However, many developing nations, like the Bahamas and Ethiopia, still rely on tariffs for a significant portion of their revenue." In the U.S., Congress holds the authority to establish tariffs. However, certain laws permit the president to impose tariffs, especially in situations related to national security or economic emergencies. -USA TODAY Network contributed to this report. This story has been updated to include new information. This article originally appeared on Austin American-Statesman: Who pays tariffs? How do tariffs work? Here's what you need to know
Yahoo
05-03-2025
- Business
- Yahoo
What are tariffs, who pays for them? What to know about Trump's plan, Canada's response
The economy is a complicated topic, and discussing tariffs can get confusing. Just after midnight on Tuesday, President Donald Trump sparked a trade war with three of the country's biggest trading partners – including Canada – that could have long-lasting effects on Americans, according to economists. After years of a free-trade agreement, Trump imposed 25% tariffs on imports from Canada and Mexico while doubling the duties on some Chinese goods to 20% as part of his "America First" agenda. 'It's a very powerful weapon that politicians haven't used because they were either dishonest, stupid or paid off in some other form,' Trump said in the White House's Roosevelt Room on Monday. More: Here's how Texas could be affected by Trump's tariffs on Mexico, Canada The action immediately shook global markets, plummeted stocks and will likely raise prices on everyday products – from gas to produce – for consumers. Canada, Mexico and China quickly retaliated, with Canadian Prime Minister Justin Trudeau saying Ottawa is setting 25% tariffs on $20.7 billion worth of U.S. imports, from orange juice to cosmetics. If Trump's duties remain in place in 21 days, Canada will add tariffs on the remaining $86.2 billion worth of U.S. imports, including vehicles, produce and meat. Here's what you need to understand about tariffs. A tariff is a tax that a government imposes on goods imported from other countries. It is a type of trade regulation used to protect or generate revenue. Tariffs are not like income or sales taxes. Instead, they are levies — additional fees — placed on products imported to the country. Monica Morlacco, assistant professor of economics at the USC Dornsife College of Letters, Arts and Sciences, explain its functions. "Tariffs are typically imposed for protection or revenue purposes," she said. "A protective tariff increases the price of imported goods relative to domestic goods, encouraging consumers to buy from local producers, who are thus 'protected' from foreign competition. A revenue tariff, on the other hand, is mainly used to generate money for the government." Some think the foreign companies that make the goods pay the tariffs, but the cost of a tariff is typically paid by the importer of the goods. When a tariff is imposed, it increases the cost of importing a product into a country. The importer may absorb the higher cost or pass it on to consumers through higher prices. This means that while the importer pays the initial bill for the tariff, the financial burden often shifts to businesses and consumers in the form of increased prices. For example, if the U.S. government wants to protect American car manufacturers from foreign competition, it may impose a 10 percent tariff on imported cars from other countries. If a car that's manufactured in Japan costs $20,000, an importer must pay an extra $2,000 in tax. The total cost of the imported car would increase to $22,000, which may be passed down to the consumer. According to the Tax Policy Center, higher prices of goods in the U.S. will lead to fewer consumers buying goods. In the short run, higher prices for imported goods will reduce consumption of those goods," they explained. "But in the longer term, the decline in competition from foreign products makes domestic firms less efficient. And less competition will result in higher prices, not just for those goods subject to the tariff but for competing goods that are not—such as those made domestically. In the case of Trump's tariffs on China, that means US consumers will pay somewhat higher prices." So even though it doesn't feel like a direct tax because it's not added on to an individual purchase, buyers are the ones covering the extra cost in the price of the item. In a news conference Tuesday, Prime Minister of Canada Justin Trudeau said Trump's decision to levy tariffs on the U.S.'s largest trading partners is a foolish idea. "We should be working together to ensure even greater prosperity for North Americans in a very uncertain and challenging world," he said. "Now, it's not in my habit to agree with the Wall Street Journal, but Donald, they point out that even though you're a very smart guy, this is a very dumb thing to do." In the U.S., tariffs have been implemented since 1789, with the first significant tariff law enacted to help finance the newly established government. Morlacco states that the U.S. has not relied heavily on tariffs for a long time. "For example, in 1900, tariffs accounted for more than 41% of U.S. government income, but by 2013, that number had fallen to just 2%," she said. "However, many developing nations, like the Bahamas and Ethiopia, still rely on tariffs for a significant portion of their revenue." In the U.S., Congress holds the authority to establish tariffs. However, certain laws permit the president to impose tariffs, especially in situations related to national security or economic emergencies. -USA TODAY Network reporter Kathleen Wong contributed to this report. This article originally appeared on Austin American-Statesman: What are tariffs and who pays them? What to know about Trump's plan
