Trump’s 2nd term: Hopes for economic prosperity amid new challenges

Many American voters are hopeful that President Donald Trump’s second term, which began on Jan. 20, will usher in a period of economic prosperity — much like they felt during his first term.

However, the economy he is inheriting this time around is markedly different from the one he inherited eight years ago, pre-pandemic. And he faces new challenges.

While former President Joe Biden has defended his handling of the country’s economic recovery — pointing to strong job growth and falling inflation — high prices persist. A large national debt, climate change and some of Trump’s own policy proposals may further complicate efforts to boost the economy.

No day-one tariffs coming from Trump, but trade overhaul planned, official says

President Donald Trump will issue a broad trade memo on Monday that stops short of imposing new tariffs on his first day in office but directs federal agencies to evaluate U.S. trade relationships with China, Canada and Mexico, a Trump administration official said.

After weeks of intense global speculation over which duties Trump would impose immediately after being sworn in as U.S. president, news that Trump would take more time on tariffs drove a relief rally in global stocks and a dive in the dollar against major currencies.

Trump mentioned no specific tariff plans in his inaugural address but repeated his intention to create the External Revenue Service, a new agency to collect “massive amounts” of tariffs, duties and other revenues from foreign sources.  

“I will immediately begin the overhaul of our trade system to protect American workers and families,” Trump said. “Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens.”

Trump added that his policies would make America “a manufacturing nation once again.”

During his election campaign, Trump vowed to impose steep tariffs of 10% to 20% on global imports into the U.S. and 60% on goods from China to help reduce a trade deficit that now tops $1 trillion annually.

He said after his November election that he would sign “all necessary documents” upon taking office to impose an immediate 25% import surcharge on imports from Canada and Mexico if they failed to clamp down on the flow of illicit drugs and migrants entering the U.S. illegally.

Such duties would tear up long-standing trade agreements, upend supply chains and raise costs, according to trade experts.  

The official, confirming a Wall Street Journal report that cited a summary of Trump’s memo, said the new president will instead direct agencies to investigate and remedy persistent trade deficits and address unfair trade and currency policies by other nations.  

The memo will single out China, Canada and Mexico for scrutiny but will not announce new tariffs, the official said. It will direct agencies to assess Beijing’s compliance with its 2020 trade deal with the U.S., as well as the status of the U.S.-Mexico-Canada Agreement, the official said.

Relief rally

The U.S. dollar slumped broadly on the news against a basket of major trading partners’ currencies, with particularly large upswings in the euro, Canadian dollar, Mexican peso and Chinese yuan. MSCI’s measure of global stock markets rose. U.S. financial markets are closed for the Martin Luther King Jr. Day holiday.

Some industry groups and trade lawyers in Washington had speculated that Trump would invoke the International Emergency Economic Powers Act, a law with sweeping powers to control imports in times of national emergency, to impose immediate tariffs.

But the forthcoming trade memo signals a more methodical approach that would likely involve trade investigations under other legal authorities such as the Section 232 national security trade law and the Section 301 unfair trade practices statute. Trump invoked these laws during his first term, and probes on steel and aluminum and Chinese imports took months to complete.

“It sounds like maybe he’s been listening to the people telling him that immediate tariffs would really hurt the financial markets,” said William Reinsch, a trade expert at the Center for Strategic and International Studies.

But Reinsch and other trade analysts say they still expect Trump to press ahead with a global tariff early in his administration.

“The universal tariff was a core part of the economic plan he ran on, and I think he’s going to do what he said he would,” said Kelly Ann Shaw, a former White House trade adviser during Trump’s first term.

“This is an idea he’s supported for a long time,” Shaw, now with the Hogan Lovells law firm, said in an interview last week.

Past trade playbook  

In his 2017-2021 first term, Trump’s administration used investigations to impose tariffs on steel and aluminum imports and launch duties on some $370 billion worth of Chinese imports, igniting a tit-for-tat tariff war between the world’s two largest economies.

The U.S. and China ended the conflict in 2020 with a deal for Beijing to boost its purchases of U.S. exports from farm goods to aircraft by $200 billion annually but never followed through as the pandemic hit. The forthcoming memo indicates that Trump’s administration will try to push China to keep those commitments.

Trump also had threatened to quit the 1994 North American Free Trade Agreement, blaming it for draining U.S. manufacturing jobs to Mexico and prompting a renegotiation of the trade pact with tighter rules of origin for autos and stronger labor and environmental standards.

Trump won a sunset provision in USMCA that will allow him to renegotiate it again in 2026, and the tariff threats against Mexico and Canada are seen by some trade analysts as a gambit to open those talks early. 

 TikTok restores US services after Trump promise to delay ban  

Washington — TikTok restored services to users in the United States on Sunday after briefly blocking access due to a U.S. law banning the social media platform based on national security concerns. 

The situation played out amid the change in U.S. administrations as President-elect Donald Trump said he would seek to “extend the period of time before the law’s prohibitions take effect.” 

He also proposed, in a post on his Truth Social platform, for the United States to take a 50% ownership stake in TikTok. 

The U.S. Supreme Court on Friday upheld legislation passed by Congress that called for banning TikTok unless its China-based parent company sold it by Sunday. 

The Biden administration had said it would not seek to enforce the ban in its final days in office, leaving the issue to Trump after he took office on Monday. 

TikTok credited Trump as it announced the restoration of its services, saying Sunday on X that he provided “the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans and allowing over 7 million small businesses to thrive.” 

Trump’s actions marked a reversal from his first term in office when he sought to ban TikTok in connection with concerns that the service was sharing the personal information of U.S. users with the Chinese government. 

At a briefing Monday in Beijing, Chinese Foreign Ministry spokesperson Mao Ning said China believes companies should “decide independently” about their operations and agreements. 

“TikTok has operated in the U.S. for many years and is deeply loved by American users,” she said. “We hope that the U.S. can earnestly listen to the voice of reason and provide an open, fair, just and non-discriminatory business environment for firms operating there.” 

Some information for this report was provided by The Associated Press, Agence France-Presse and Reuters. 

India’s ‘digital arrest’ scammers stealing savings of citizens

Bengaluru, India — Within five hours, while sitting at home in India, retired professor Kamta Prasad Singh handed over his hard-earned savings to online fraudsters impersonating police.

The cybercrime known as “digital arrest” — where fraudsters pose online as law enforcement officials and order people to transfer huge amounts of money — has become so rampant that Prime Minister Narendra Modi has issued warnings.

Singh told AFP that money was his life savings.

“Over the years, I have skipped having tea outside, walked to avoid spending on public transport,” the 62-year-old said, his voice breaking.

“Only I know, how I saved my money.”

Police say scammers have exploited the vast gap between the breakneck speed of India’s data digitalization, from personal details to online banking, and the lagging awareness of many of basic internet safety.

Fraudsters are using technology for data breaches, targeting information their victims believe is only available to government authorities, and making otherwise unlikely demands appear credible.

Indians have emptied their bank accounts “out of sheer fear,” Modi said in an October radio broadcast, adding fraudsters “create so much psychological pressure on the victim.”

‘Ruined’

Mobile phones, and especially video calling, have allowed fraudsters to reach straight into people’s homes.

India runs the world’s largest biometric digital identity program — called “Aadhaar,” or foundation in Hindi — a unique card issued to India’s more than one billion people, and increasingly required for financial transactions.

Scammers often claim they are police investigating questionable payments, quoting their target’s Aadhaar number to appear genuine.

They then request their victim make a “temporary” bank transfer to validate their accounts, before stealing the cash.

Singh, from India’s eastern state of Bihar, said the web of lies began when he received a call in December, seemingly from the telecom regulatory authority.

“They said… police were on their way to arrest me,” Singh said.

The fraudsters told Singh that his Aadhaar ID was being misused for illegal payments.

Terrified, Singh agreed to prove he had control of his bank account, and after spiraling threats, transferred over $16,100.

“I have lost sleep; don’t feel like eating,” he said. “I have been ruined.”

‘Rot in proverbial hell’

The surge of online scams is worrying because of “how valid they make it look and sound,” said police officer Sushil Kumar, who handled cybercrimes for half a decade.

The perpetrators range from school dropouts to highly educated individuals.

“They know what to search for on the internet to find out basic details of how government agencies work,” Kumar added.

India registered 17,470 cybercrimes in 2022, including 6,491 cases of online bank fraud, according to the latest government data.

Tricks vary. Kaveri, 71, told AFP her story, on condition her name was changed.

She said fraudsters posed as officials from the U.S. courier FedEx, claiming she had sent a package containing drugs, passports and credit cards.

They offered her full name and Aadhaar ID details as “proof,” followed by well-forged letters from the Central Bank of India and Central Bureau of Investigation, the country’s top investigative agency.

“They wanted me to send money, which would be returned in 30 minutes,” she said, adding she was convinced when they sent a “properly signed letter.”

She transferred savings from a house sale, totaling around $120,000, in four instalments over six days, before the fraudsters vanished.

Kaveri says those days felt “like a tunnel.”

Meeta, 35, a private health professional from Bengaluru, who also did not want to be identified, was conned by fake police via a video call.

“It seemed like a proper police station, with walkie-talkie noises,” she said.

The scammers told her to prove she controlled her bank account by taking out a loan of 200,000 rupees, or $2,300, via her bank’s phone app, before demanding she make a “temporary” transfer.

Despite making it clear to the bank that she had been scammed, Meeta continues to be asked to pay back the loan.

“My trust in banks has mostly gone,” she said, before cursing the thieves.

“I hope they rot in proverbial hell.”

How TikTok grew from a fun app for teens into a potential national security threat

SAN FRANCISCO — If it feels like TikTok has been around forever, that’s probably because it has, at least if you’re measuring via internet time. What’s now in question is whether it will be around much longer and, if so, in what form?

Starting in 2017, when the Chinese social video app merged with its competitor Musical.ly, TikTok has grown from a niche teen app into a global trendsetter. While, of course, also emerging as a potential national security threat, according to U.S. officials.

On April 24, President Joe Biden signed legislation requiring TikTok parent ByteDance to sell to a U.S. owner within a year or to shut down. TikTok and its China-based parent company, ByteDance, filed a lawsuit against the U.S., claiming the security concerns were overblown and the law should be struck down because it violates the First Amendment.

The Supreme Court on Friday unanimously upheld the federal law banning TikTok, and the popular short form video service went dark in the U.S. — just hours before the ban was set to begin.

Here’s how TikTok came to this juncture:

March 2012

ByteDance is founded in China by entrepreneur Zhang Yimin. Its first hit product is Toutiao, a personalized news aggregator for Chinese users.

July 2014

Startup Musical.ly, later known for an eponymous app used to post short lipsyncing music videos, is founded in China by entrepreneur Alex Zhu.

July 2015

Musical.ly hits #1 in the Apple App Store, following a design change that made the company’s logo visible when users shared their videos.

2016

ByteDance launches Douyin, a video sharing app for Chinese users. Its popularity inspires the company to spin off a version for foreign audiences called TikTok.

November 2017

ByteDance acquires Musical.ly for $1 billion. Nine months later, ByteDance merges it with TikTok.

Powered by an algorithm that encourages binge-watching, users begin to share a wide variety of video on the app, including dance moves, kitchen food preparation and various “challenges” to perform, record and post acts that range from serious to satirical.

February 2019

Rapper Lil Nas X releases the country-trap song “Old Town Road” on TikTok, where it goes viral and pushes the song to a record 17 weeks in the #1 spot on the Billboard Hot 100 chart. The phenomenon kicks off a wave of TikTok videos from musical artists who suddenly see TikTok as a critical way to reach fans.

TikTok settles federal charges of violating U.S. child-privacy laws and agrees to pay a $5.7 million fine.

September 2019

The Washington Post reports that while images of Hong Kong democracy protests and police crackdowns are common on most social media sites, they are strangely absent on TikTok. The same story notes that TikTok posts with the #trump2020 tag received more than 70 million views.

The company insists that TikTok content moderation, conducted in the U.S., is not responsible and says the app is a place for entertainment, not politics.

The Guardian reports on internal documents that reportedly detail how TikTok instructs its moderators to delete or limit the reach of videos touching on topics sensitive to China such as the 1989 Tiananmen Square protests and subsequent massacre, Tibetan independence or the sanctioned religious group Falun Gong.

October 2019

U.S. politicians begin to raise alarms about TikTok’s influence, calling for a federal investigations of its Musical.ly acquisition and a national security probe into TikTok and other Chinese-owned apps. That investigation begins in November, according to news reports.

December 2019

The Pentagon recommends that all U.S. military personnel delete TikTok from all phones, personal and government-issued. Some services ban the app on military-owned phones. In January, the Pentagon bans the app from all military phones.

TikTok becomes the second-most downloaded app in the world, according to data from analytics firm SensorTower.

May 2020

Privacy groups file a complaint alleging TikTok is still violating U.S. child-protection laws and flouting a 2019 settlement agreement. The company “takes the issue of safely seriously” and continues to improve safeguards, it says.

TikTok hires former Disney executive Kevin Mayer as its chief executive officer in an apparent attempt to improve its U.S. relations. Mayer resigns three months later.

July 2020

India bans TikTok and dozens of other Chinese apps in response to a border clash with China.

President Donald Trump says he is considering banning TikTok as retaliation for China’s alleged mishandling of the COVID-19 pandemic.

August 2020

Trump issues a sweeping but vague executive order banning American companies from any “transaction” with ByteDance and its subsidiaries, including TikTok. Several days later, he issues a second order demanding that ByteDance divest itself of TikTok’s U.S. operations within 90 days.

Microsoft confirms it is exploring acquisition of TikTok. The deal never materializes; neither does a similar overture from Oracle and Walmart. TikTok, meanwhile, sues the Trump administration for alleged violation of due process in its executive orders.

November 2020

Joe Biden is elected president. He doesn’t offer new policy on TikTok and won’t take office until January, but Trump’s plans to force a sale of TikTok start to unravel anyway. The Trump administration extends the deadlines it had imposed on ByteDance and TikTok and eventually lets them slide altogether.

February 2021

Newly sworn-in President Joe Biden postpones the legal cases involving Trump’s plan to ban TikTok, effectively bringing them to a halt.

September 2021

TikTok announces it has more than a billion monthly active users.

December 2021

A Wall Street Journal report finds TikTok algorithms can flood teens with a torrent of harmful material such as videos recommending extreme dieting, a form of eating disorder.

February 2022

TikTok announces new rules to deter the spread of harmful material such as viral hoaxes and promotion of eating disorders.

April 2022

“The Unofficial Bridgerton Musical,” a project created by two fans of the Netflix show as a TikTok project, wins the Grammy for Best Musical Theater Album.

TikTok becomes the most downloaded app in the world, beating out Instagram, according to SensorTower data.

June 2022

BuzzFeed reports that China-based ByteDance employees have repeatedly accessed the nonpublic information of TikTok users, based on leaked recordings from more than 80 internal TikTok meetings. TikTok responds with a vague comment touting its commitment to security that doesn’t directly address the BuzzFeed report.

TikTok also announces it has migrated its user data to U.S. servers managed by the U.S. tech firm Oracle. But that doesn’t prevent fresh alarm among U.S. officials about the risk of Chinese authorities accessing U.S. user data.

December 2022

FBI Director Christopher Wray raises national security concerns about TikTok, warning that Chinese officials could manipulate the app’s recommendation algorithm for influence operations.

ByteDance also said it fired four employees who accessed data on journalists from Buzzfeed News and The Financial Times while attempting to track down leaks of confidential materials about the company.

February 2023

The White House gives federal agencies 30 days to ensure TikTok is deleted from all government-issued mobile devices. Both the FBI and the Federal Communications Commission warn that ByteDance could share TikTok user data with China’s authoritarian government.

March 2023

Legislators grill TikTok CEO Shou Zi Chew at a six-hour congressional hearing where Chew, a native of Singapore, attempts to push back on assertions that TikTok and ByteDance are tools of the Chinese government.

January 2024

TikTok said it was restricting a tool some researchers use to analyze popular videos on the platform.

March 2024

A bill to ban TikTok or force its sale to a U.S. company gathers steam in Congress. TikTok brings dozens of its creators to Washington to tell lawmakers to back off, while emphasizing changes the company has made to protect user data. TikTok also annoys legislators by sending notifications to users urging them to “speak up now” or risk seeing TikTok banned; users then flood congressional offices with calls.

The House of Representatives passes the TikTok ban-or-sell bill.

April 2024

The Senate follows suit, sending the bill to President Biden, who signs it.

May 2024

TikTok and its Chinese parent company ByteDance sue the U.S. federal government to challenge a law that would force the sale of ByteDance’s stake or face a ban, saying that the law is unconstitutional.

June 2024

Former President Donald Trump joins TikTok and begins posting campaign-related content.

July 2024

Vice President Kamala Harris joins TikTok and also begins posting campaign-related material.

Dec. 6, 2024

A federal appeals court panel unanimously upheld a law that could lead to a ban on TikTok, handing a resounding defeat to the popular social media platform as it fights for its survival in the U.S. The panel of judges rebuffed the company’s challenge of the statute, which it argued had ran afoul of the First Amendment.

Dec. 27, 2024

President-elect Donald Trump asked the Supreme Court to pause the potential TikTok ban from going into effect until his administration can pursue a “political resolution” to the issue.

Jan. 17, 2025

The Supreme Court unanimously upheld the federal law banning TikTok beginning unless it’s sold by its China-based parent company, holding that the risk to national security posed by its ties to China overcomes concerns about limiting speech by the app. A ban is set to into effect on Jan. 19, 2025.

Jan. 18, 2025

TikTok users in the United States were prevented from watching videos on the popular social media platform just hours before a federal ban was set to take effect.

“A law banning TikTok has been enacted in the U.S.,” a message in the app said. “Unfortunately, that means you can’t use TikTok for now.”

The company’s app was also removed from prominent app stores, including the ones operated by Apple and Google, while its website told users that the short-form video platform was no longer available.

Jan. 19, 2025

Shortly after the app went dark for U.S. users, Trump said he would issue an executive order upon taking office to grant TikTok an extension so that it could remain online.

A few hours later, TikTok restored service to users in the United States, saying that Trump had provided “the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans.”

TikTok: it’s restoring service to US users based on Trump’s promised executive order 

Washington — TikTok said Sunday it was restoring service to users in the United States after the popular video-sharing platform went dark in response to a federal ban that President-elect Donald Trump said he would try to pause by executive order on his first day in office. 

Trump said he planned to issue the order to give TikTok’s China-based parent company more time to find an approved buyer before the popular video-sharing platform is subject to a permanent U.S. ban. He announced the move on his Truth Social account as millions of U.S. TikTok users awoke to discover they could no longer access the TikTok app or platform. 

Google and Apple removed the app from their digital stores to comply with the law, which required them to do so if TikTok parent company ByteDance didn’t sell its U.S. operation by Sunday. The law, which passed with wide bipartisan support in April, allowed for steep fines for non-compliance. 

The company that runs TikTok said in a post on X that Trump’s post had provided “the necessary clarity and assurance to our service providers that they will face no penalties providing TikTok to over 170 million Americans.” 

Some users reported soon after TikTok’s statement that the app was working again, and TikTok’s website appeared to be functioning for at least some users. Even as TikTok was flickering back on, it remained unavailable for download in Apple and Google’s app stores. 

The law that took effect Sunday required ByteDance to cut ties with the platform’s U.S. operations due to national security concerns posed by the app’s Chinese roots. However, the statute gave the sitting president authority to grant a 90-day extension if a viable sale is under way. 

Although investors made a few offers, ByteDance previously said it would not sell. In his post on Sunday, Trump said he “would like the United States to have a 50% ownership position in a joint venture,” but it was not immediately clear if he was referring to the government or an American company. 

Trump said his order would “extend the period of time before the law’s prohibitions take effect” and “confirm that there will be no liability for any company that helped keep TikTok from going dark before my order. 

“Americans deserve to see our exciting Inauguration on Monday, as well as other events and conversations,” Trump wrote. 

The on-and-off availability of TikTok came after the U.S. Supreme Court held in a unanimous ruling Friday that the risk to national security posed by TikTok’s ties to China outweighed concerns about limiting speech by the app or its millions of users in the United States. 

When TikTok users in the U.S. tried to watch or post videos on the platform as of Saturday night, they saw a pop-up message under the headline, “Sorry, TikTok isn’t available right now.” 

“A law banning TikTok has been enacted in the U.S.,” a pop-up message informed users who opened the TikTok app and tried to scroll through videos on Saturday night. “Unfortunately that means you can’t use TikTok for now.” 

The service interruption TikTok instituted hours earlier caught most users by surprise. Experts had said the law as written did not require TikTok to take down its platform, only for app stores to remove it. Current users had been expected to continue to have access to videos until the app stopped working due to a lack of updates. 

“The community on TikTok is like nothing else, so it’s weird to not have that anymore,” content creator Tiffany Watson, 20, said Sunday. 

Watson said she had been in denial about the looming shutdown and with the time on her hands plans to focus on bolstering her presence on Instagram and YouTube. 

“There are still people out there who want beauty content,” Watson said. 

The company’s app also was removed late Saturday from prominent app stores, including the ones operated by Apple and Google. Apple told customers with its devices that it also took down other apps developed by TikTok’s China-based parent company, including one that some social media influencers had promoted as an alternative. 

“Apple is obligated to follow the laws in the jurisdictions where it operates,” the company said. 

Trump’s plan to issue an executive order to spare TikTok on his first day in office reflected the ban’s coincidental timing and the unusual mix of political considerations surrounding a social media platform that first gained popularity with often silly videos featuring dances and music clips. 

During his first term in the White House, Trump issued executive orders in 2020 banning TikTok and the Chinese messaging app WeChat, moves that courts subsequently blocked. When momentum for a ban emerged in Congress last year, however, he opposed the legislation. Trump has since credited TikTok with helping him win support from young voters in last year’s presidential election. 

Despite its own part in getting the nationwide ban enacted, the Biden administration stressed in recent days that it did not intend to implement or enforce the ban before Trump takes office on Monday. 

In the nine months since Congress passed the sale-or-ban law, no clear buyers emerged, and ByteDance publicly insisted it would not sell TikTok. But Trump said he hoped his administration could facilitate a deal to “save” the app. 

TikTok CEO Shou Chew is expected to attend Trump’s inauguration with a prime seating location. 

Chew posted a video late Saturday thanking Trump for his commitment to work with the company to keep the app available in the U.S. and taking a “strong stand for the First Amendment and against arbitrary censorship.” 

Trump’s choice for national security adviser, Michael Waltz, told CBS News on Sunday that the president-elect discussed TikTok going dark in the U.S. during a weekend call with Chinese President Xi Jinping “and they agreed to work together on this.” 

On Saturday, artificial intelligence startup Perplexity AI submitted a proposal to ByteDance to create a new entity that merges Perplexity with TikTok’s U.S. business, according to a person familiar with the matter. 

Perplexity is not asking to purchase the ByteDance algorithm that feeds TikTok user’s videos based on their interests and has made the platform such a phenomenon. 

Other investors also eyed TikTok. “Shark Tank” star Kevin O’Leary recently said a consortium of investors that he and billionaire Frank McCourt are part of offered ByteDance $20 billion in cash. Trump’s former treasury secretary, Steven Mnuchin, also said last year that he was putting together an investor group to buy TikTok. 

In Washington, lawmakers and administration officials have long raised concerns about TikTok, warning the algorithm that fuels what users see is vulnerable to manipulation by Chinese authorities. But to date, the U.S. has not publicly provided evidence of TikTok handing user data to Chinese authorities or tinkering with its algorithm to benefit Chinese interests.

TikTok goes dark for US users; company pins hope on Trump

WASHINGTON — TikTok stopped working in the United States late on Saturday and disappeared from Apple and Google app stores ahead of a law that takes effect Sunday requiring the shutdown of the app used by 170 million Americans.

President-elect Donald Trump said earlier in the day he would “most likely” give TikTok a 90-day reprieve from the ban after he takes office on Monday, a promise TikTok cited in a notice posted to users on the app.

TikTok, which is owned by China’s ByteDance, told users attempting to use the app around 10:45 p.m. ET (0345 GMT): “A law banning TikTok has been enacted in the U.S. Unfortunately, that means you can’t use TikTok for now. We are fortunate that President Trump has indicated that he will work with us on a solution to reinstate TikTok once he takes office. Please stay tuned.”

Other apps owned by ByteDance, including video editing app Capcut and lifestyle social app Lemon8, were also offline and unavailable in U.S. app stores as of late Saturday.

“The 90-day extension is something that will be most likely done, because it’s appropriate,” Trump told NBC. “If I decide to do that, I’ll probably announce it on Monday.”

It was not clear if any U.S. users could still access the app, but it was no longer working for many users and people seeking to access it through a web application were met with the same message that TikTok was no longer working.

TikTok, which has captivated nearly half of all Americans, powered small businesses and shaped online culture, warned on Friday it would go dark in the U.S. on Sunday unless President Joe Biden’s administration provides assurances to companies such as Apple and Google that they will not face enforcement actions when a ban takes effect.

Under a law passed last year and upheld on Friday by a unanimous Supreme Court, the platform has until Sunday to cut ties with its China-based parent or shut down its U.S. operation to resolve concerns it poses a threat to national security.

The White House reiterated on Saturday that it was up to the incoming administration to take action.

“We see no reason for TikTok or other companies to take actions in the next few days before the Trump administration takes office on Monday,” press secretary Karine Jean-Pierre said in a statement.

TikTok did not respond to a request for comment on the new White House statement.

The Chinese Embassy in Washington on Friday accused the U.S. of using unfair state power to suppress TikTok. “China will take all necessary measures to resolutely safeguard its legitimate rights and interests,” a spokesperson said.  

Users move to alternatives

Uncertainty over the app’s future had sent users — mostly younger people — scrambling to alternatives including China-based RedNote. Rivals Meta and Snap had also seen their share prices rise this month ahead of the ban, as investors bet on an influx of users and advertising dollars.

“This is my new home now,” wrote one user in a RedNote post, tagged with the words “tiktokrefugee” and “sad.”

Minutes after TikTok’s U.S. shutdown, other users took to X, formerly called Twitter.

“I didn’t really think that they would cut off TikTok. Now I’m sad and I miss the friends I made there. Hoping it all comes back in just a few days,” wrote @RavenclawJedi.

NordVPN, a popular virtual private network, or VPN, allowing users to access the internet from servers around the world, said it was “experiencing temporary technical difficulties.”

Web searches for “VPN” spiked in the minutes after U.S. users lost access to TikTok, according to Google Trends.

Users on Instagram fretted about whether they would still receive merchandise they had bought on TikTok Shop, the video platform’s e-commerce arm.

Marketing firms reliant on TikTok have rushed to prepare contingency plans this week in what one executive described as a “hair on fire” moment after months of conventional wisdom saying that a solution would materialize to keep the app running.

There have been signs TikTok could make a comeback under Trump, who has said he wants to pursue a “political resolution” of the issue and last month urged the Supreme Court to pause implementation of the ban.

TikTok CEO Shou Zi Chew plans to attend the U.S. presidential inauguration and attend a rally with Trump on Sunday, a source told Reuters.

Suitors including former Los Angeles Dodgers owner Frank McCourt have expressed interest in the fast-growing business that analysts estimate could be worth as much as $50 billion. Media reports say Beijing has also held talks about selling TikTok’s U.S. operations to billionaire and Trump ally Elon Musk, though the company has denied that.

U.S. search engine startup Perplexity AI submitted a bid on Saturday to ByteDance for Perplexity to merge with TikTok U.S., a source familiar with the company’s plans told Reuters. Perplexity would merge with TikTok U.S. and create a new entity by combining the merged company with other partners, the person added.

Privately held ByteDance is about 60% owned by institutional investors such as BlackRock and General Atlantic, while its founders and employees own 20% each. It has more than 7,000 employees in the U.S.

SpaceX says fire could have caused Starship to break, spew debris near Caribbean

SpaceX says a fire might have caused its Starship to break during liftoff and send trails of flaming debris near the Caribbean.

SpaceX’s Elon Musk said preliminary indications are that leaking fuel built up pressure in the cavity above the engine firewall. The resulting fire would have doomed the spacecraft.

On Friday, the Federal Aviation Administration ordered SpaceX to investigate what went wrong. The FAA said there were no reports of injuries from Starship debris.

The 400-foot Starship — the world’s biggest and most powerful rocket — launched from the southern tip of Texas on a test flight early Thursday evening. The booster made it back to the pad for a catch by giant mechanical arms, only the second time in Starship history. But the engines on the still-ascending spacecraft shut down one by one, and communication was lost 8-1/2 minutes into the flight.

Dramatic video taken near the Turks and Caicos Islands showed spacecraft debris raining down from the sky in a stream of fireballs. Flights near the falling debris had to be diverted, the FAA said.

SpaceX said Starship remained in its designated launch corridor over the Gulf of Mexico and then the Atlantic. Any surviving wreckage would have fallen along that path over water, the company said on its website.

Starship had been shooting for a controlled entry over the Indian Ocean, halfway around the world. Ten dummy satellites, mimicking SpaceX’s Starlink internet satellites, were on board so the company could practice releasing them.

It was the seventh test flight of a Starship, but it featured a new and upgraded spacecraft. The FAA said it must approve SpaceX’s accident findings and any corrective actions.

SpaceX said the booster and spacecraft for the eighth demo are already built and undergoing testing. Musk said on X the loss was “barely a bump in the road” in his plans to build a fleet of Starships to carry people to Mars.

NASA already has booked two Starships to land astronauts on the moon later this decade under its Artemis program, the successor to Apollo.

“Spaceflight is not easy. It’s anything but routine,” NASA Administrator Bill Nelson posted on X after the accident. “That’s why these tests are so important.”

Earlier Thursday, Jeff Bezos’ Blue Origin company also had mixed results with the debut of its massive New Glenn rocket. It achieved orbit on its first try, putting a test satellite thousands of miles above Earth. But the booster was destroyed after failing to land on a floating platform in the Atlantic.

Chinese economic growth among slowest in decades

BEIJING — China recorded one of its slowest rates of economic growth in decades last year, data showed Friday, as leaders nervously eye a potential trade standoff with incoming U.S. President-elect Donald Trump.

Beijing has in recent months announced its most aggressive support measures in years in a bid to reignite an economy that has suffered on multiple fronts, including a prolonged property market debt crisis and sluggish consumer spending.

But the economy grew 5% last year, official data from Beijing’s National Bureau of Statistics (NBS) showed Friday, slightly above the 4.9% forecast in an AFP survey of analysts.

Still, the figure was lower than the 5.2% recorded in 2023.

The growth took place in the face of a “complicated and severe environment with increasing external pressures and internal difficulties,” the NBS said.

The economy was still facing “difficulties and challenges,” officials admitted.

Retail sales, a key gauge of consumer sentiment, rose 3.5% — a major slump from the 7.2% growth seen in 2023 — though industrial output increased 5.8%, from 4.6% the previous year.

However, the 5.4% jump in economic growth seen in the final four months far outpaced the 5% forecast in a Bloomberg survey and was much better than the same period in 2023.

The data provided “mixed messages,” Zhiwei Zhang, president of Pinpoint Asset Management, said.

Beijing’s recent policy shift had “helped the economy to stabilize in (the fourth quarter), but it requires large and persistent policy stimulus to boost economic momentum and sustain the recovery,” he said.

Zichun Huang, China economist at Capital Economics, said she expected growth to “continue accelerating in the coming months.”

“The government’s property support measures seem to be providing some relief, with the pace of house price falls slowing and new home sales showing some recovery,” she said.

Trouble ahead?

The GDP growth rate is the lowest recorded by China since 1990, excluding the financially tumultuous years of the COVID-19 pandemic.

And the analysts surveyed by AFP estimated growth could fall to just 4.4% in 2025, and even drop below 4% the following year.

China has so far failed to rebound from the pandemic, with domestic spending mired in a slump and indebted local governments dragging on growth.

In a rare bright spot, official data showed earlier this week that exports reached a historic high last year.

But gathering storm clouds over the country’s massive trade surplus mean Beijing may not be able to count on overseas shipments to boost an otherwise lackluster economy.

Trump, who will begin his second term next week, has promised to unleash heavy sanctions on China.

“We still expect growth to slow for 2025 as a whole, with Trump likely to follow through on his tariff threats soon and persistent structural imbalances still weighing on the economy,” Huang said.

Beijing has introduced a series of measures in recent months to bolster the economy, including cutting key interest rates, easing local government debt and expanding subsidy programs for household goods.

Confidence ‘crisis’

Observers were closely watching Friday’s data release for signs those measures succeeded in reviving activity.

“With a package of incremental policies being timely rolled out … social confidence was effectively bolstered and the economy recovered remarkably,” the NBS said.

China’s central bank has indicated in recent weeks that 2025 will see it implement further rate cuts, part of a key shift characterized by a “moderately loose” monetary policy stance.

But analysts warn more efforts are needed to boost domestic consumption as the outlook for Chinese exports becomes more uncertain.

“Monetary policy support alone is unlikely to right the economy,” Harry Murphy Cruise of Moody’s Analytics told AFP.

“China is suffering from a crisis of confidence, not one of credit; families and firms do not have the confidence in the economy to warrant borrowing, regardless of how cheap it is to do so,” he wrote.

“To that end, fiscal supports are needed to grease the economy’s wheels.”

One component of Beijing’s newest policy toolbox is a subsidy scheme — now expanded to include more household items including rice cookers and microwave ovens — that it hopes will encourage spending.

But recent data shows that government efforts have not yet achieved a full rebound in consumer activity.

China narrowly avoided a slip into deflation in December, statistics authorities said last week, with prices rising at their slowest pace in nine months.

China emerged from a four-month period of deflation in February, a month after suffering the sharpest fall in prices for 14 years.

Deflation can pose a threat to the broader economy as consumers tend to postpone purchases under such conditions, hoping for further reductions. 

Trump team might step in to save TikTok from pending US ban

With a pending law declaring the social media application TikTok illegal in the United States, set to take effect on Sunday, the incoming administration of U.S. President-elect Donald Trump is signaling that it plans to try to find a way to prevent the service from going offline.

Under current law, the service’s parent company, China-based ByteDance, must either sell TikTok to a non-Chinese firm or see it banned in the U.S.

Representative Mike Waltz, who has been tapped to serve as Trump’s national security adviser, told Fox News on Thursday that the president-elect has options available to postpone enforcement of the law while a possible deal is worked out to sell the company. That includes a section of the law allowing the president to give ByteDance a 90-day extension to finalize a sale.

“We will put measures in place to keep TikTok from going dark,” Waltz said, “as long as a viable deal is on the table. Essentially that buys President Trump time to keep TikTok going.”

Executive action reportedly considered

Also on Wednesday, several media outlets reported that Trump is considering issuing an executive order that would protect TikTok.

The legality of such a move is unclear and is thrown further into doubt by the fact that the Supreme Court is poised to rule on a request by the company to overturn the law.

The high court heard arguments in the case last week and is expected to rule shortly. The outcome is not certain. However, in oral arguments, a majority of the justices appeared to favor upholding the law.

Trump’s attitude toward TikTok has evolved considerably over the years. During his first term in office, he attempted to shut the service down in the U.S. Since then, though, he has used the service, with considerable success, to connect with his supporters.

In a press conference in Florida last month, Trump said, “I have a warm spot in my heart for TikTok,” and credited the app with helping him get his message out to younger American voters.

Trump has denied that his change of heart about TikTok was influenced by a brief meeting in March with Republican megadonor and ByteDance investor Jeff Yass. Lobbying disclosure reports from 2024 show that ByteDance paid a former Trump campaign aide to lobby lawmakers in Washington in favor of TikTok, and that former senior Trump aide Kellyanne Conway has been paid to advocate for TikTok in Congress via the Yass-funded conservative group Club for Growth.

Trump also said TikTok was not mentioned during his meeting with Yass.

Economic concerns

In the years since TikTok took off, thousands of U.S.-based content creators have developed large audiences on the app, and in many cases have been able to monetize their TikTok feeds.

Many small businesses have found success advertising their products to TikTok users. Other TikTok personalities have parlayed fame on the app into broader celebrity that has led to lucrative product endorsements and other deals.

Some members of Congress have expressed concern that abruptly shutting the app down could have economic consequences.

On Monday, Democratic Senator Edward Markey introduced legislation that would delay the TikTok ban by 270 days.

“Let me be clear: TikTok has its problems,” Markey said in a statement released by his office. “Like every social media platform, TikTok poses a serious risk to the privacy and mental health of our young people. I will continue to hold TikTok accountable for such behavior. But a TikTok ban would impose serious consequences on millions of Americans who depend on the app for social connections and their economic livelihood. We cannot allow that to happen.”

Viability of sale unclear

As the Sunday deadline nears, there have been a number of rumors about a possible sale of the company. Bloomberg reported on Wednesday that Chinese officials were considering the possibility of selling the service to billionaire Elon Musk, a close Trump adviser who already owns the social media service X, formerly Twitter.

Another U.S. billionaire, real estate developer Frank McCourt, told Reuters on Thursday that a consortium of investors he had formed has already made a formal offer to purchase TikTok, valuing the service at $20 billion.

However, it is far from clear that a sale is something the Chinese government is prepared to allow. Any sale worth the buyer’s investment would have to include the “recommendation engine,” TikTok’s name for the algorithm that makes the service so popular and, many would say, addictive.

Last year in a court filing, TikTok characterized such a deal as unavailable.

“Just as the United States restricts the export of U.S.-origin technologies (e.g., certain computer chips), the Chinese government regulates the transfer of technologies developed in China,” the company argued in a court filing. “The Chinese government has made clear in public statements that it would not permit a forced divestment of the recommendation engine.”

Privacy, national security worries

A wildly popular service for sharing short videos, TikTok has an estimated 170 million U.S. users. Federal officials have been concerned about TikTok for years because it collects vast amounts of information about its user base. They have argued that Chinese laws compelling domestic companies to cooperate with intelligence agencies could be used to force the company to share that data with the Chinese Communist Party.

U.S. officials have expressed concern that China could misuse the private information about U.S. users of the service. They have also warned that Beijing could use TikTok’s powerful recommendation algorithm to shape public discourse in the U.S. to the benefit of China.

In December, when a federal appeals court upheld the law mandating the company’s sale or shutdown, Democratic Representative Raja Krishnamoorthi, one of the original sponsors of the law, released a statement expressing the thoughts of many of the law’s supporters.

“With today’s opinion, all three branches of government have reached the same conclusion: ByteDance is controlled by the Chinese Communist Party, and TikTok’s ownership by ByteDance is a national security threat that cannot be mitigated through any other means than divestiture,” Krishnamoorthi said.

“Every day that TikTok remains under the Chinese Communist Party’s control is a day that our security is at risk,” Krishnamoorthi added.

Who will drive Trump’s AI and crypto policies?

U.S. President-elect Donald Trump says he wants the United States to be the world leader in artificial intelligence and crypto currency. To that end, he has tapped a Silicon Valley entrepreneur and investor to be the AI and crypto czar. Michelle Quinn has the story.

US imposes export controls on biotech equipment over AI security concerns

On Wednesday the U.S. Department of Commerce announced it would implement new export controls on certain biotechnology equipment, citing national security concerns relating to artificial intelligence and data science.

The Commerce Department warned that China could use the biotech equipment’s technology to bolster its military capabilities and help design new weapons using artificial intelligence.

The department said the technology has many applications, including its ability to be used for “human performance enhancement, brain-machine interfaces, biologically inspired synthetic materials and possibly biological weapons.”

The sanctions effectively restrict shipments of the technology to countries without a U.S. license, such as China.

The controls apply to parameter flow cytometers and certain mass spectrometry equipment, which according to the Commerce Department, can “generate high-quality, high-content biological data, including that which is suitable for use to facilitate the development of AI and biological design tools.”

Last week, the Chinese Embassy in Washington said Beijing “firmly opposes any country’s development, possession or use of biological weapons.”

This latest move by the United States follows recent policy decisions that reflect Washington’s broad aim to limit Beijing’s access to U.S. technology and data.

Washington announced on Monday that it would tighten Beijing’s access to AI chip and technology exports by implementing new regulations that cap the number of chips that can be exported to certain countries, including China, Russia, Iran and North Korea.

This month, the ban on popular Chinese-owned social media TikTok is planned to go into effect due to U.S. concerns over its potential to share sensitive data with China’s government.

Pakistan welcomes World Bank’s $20 billion lending pledge

ISLAMABAD — Pakistan confirmed on Wednesday that the World Bank has pledged to lend $20 billion over the next decade, commencing in 2026 under its Country Partnership Framework, to help address the impoverished country’s acute development challenges.

Prime Minister Shehbaz Sharif applauded what he described as the lender’s “first-ever” pledge of its kind, saying the program is intended to develop child nutrition, education, clean energy and climate resilience to boost private sector growth.

The Country Partnership Framework “reflects the World Bank’s confidence in Pakistan’s economic resilience and potential,” Sharif said on the social media platform X. “We look forward to strengthening our partnership as we align our efforts for creating lasting opportunities for our people.”

The cash-strapped South Asian nation has been struggling to tackle serious economic challenges for several years and is currently relying on a $7 billion bailout loan program from the International Monetary Fund. Persistent political instability in Pakistan, rising militant attacks, and devastating flooding in 2022 have further strained the troubled economy.

“Our new decadelong partnership framework for Pakistan represents a long-term anchor for our joint commitment with the government to address some of the most acute development challenges facing the country,” said World Bank Country Director Najy Benhassine.

The U.S.-based lender stated that the country’s annual commitments under the partnership “are expected to remain in the $1.5 billion to $2 billion range” from 2026 onward. It added that the loans will depend on available funding and the fulfillment of project requirements.

“The pace of economic growth and structural transformation has been long stunted by distortive policies that benefit only a few, who have historically coalesced to oppose growth-oriented reforms as well as increases in progressive public spending in human capital and basic services for the poorest,” the World Bank partnership documented stated.

It added that Pakistan must change its current development model to reduce poverty and achieve shared prosperity on a livable planet.

“We are focused on prioritizing investment and advisory interventions that will help crowd in much-needed private investment in sectors critical for Pakistan’s sustainable growth and job creation,” said Zeeshan Sheikh, International Finance Corporation country manager for Pakistan and Afghanistan.

The ouster of Prime Minister Imran Khan from power in 2022 and his subsequent imprisonment over contested corruption charges have plunged Pakistan into a political crisis that experts say is hampering government attempts to attract domestic and foreign investments.

The World Bank’s document highlights that the South Asian nation, home to over 240 million people, ranks among the top 10 countries most affected by climate change and natural disasters worldwide.

It noted that climate change will increasingly strain livelihoods, food security, productivity, and growth caused by rising extreme heat, air pollution, and altered water availability and precipitation.

“These risks can significantly compromise development in an already fiscally constrained environment and make sustained progress in poverty reduction and human development even more challenging than it is today,” the World Bank stated.

US, Japanese companies send landers on moon missions

Two moon landers built by private U.S. and Japanese companies are on their way to the moon after lifting off early Wednesday on a shared ride aboard a SpaceX rocket.

The launch from NASA’s Kennedy Space Center in Florida is the latest in a public-private program that put a spacecraft from Intuitive Machines on the moon last year.

Wednesday’s launch included a lander from Japanese space exploration company ispace that is carrying a rover with the capability of collecting lunar dirt and testing potential food and water sources on the moon.

The spacecraft is also carrying a small red “Moonhouse” built by Swedish artist Mikael Genberg.

The ispace mission is expected to reach its destination on the moon’s far north in four to five months.

The company is making its second attempt at a lunar landing, after a 2023 mission failed in the final stages. 

Also aboard the rocket heading toward the moon is a lander from U.S. company Firefly Aerospace that is set to carry out 10 experiments for NASA.

The planned experiments include gathering dirt and measuring subsurface temperatures.

The spacecraft is expected to arrive in about 45 days.

Some information for this story was provided by The Associated Press, Agence France-Presse and Reuters

Why did US exclude India from unrestricted access to AI chips?

WASHINGTON — U.S. President Joe Biden signed on Tuesday an executive order to boost development of artificial intelligence infrastructure in America. A day earlier, his administration announced sweeping measures to block access to the most advanced semiconductors by China and other adversaries.

But the U.S. left India, its strategic partner in the Indo-Pacific, off a list of 18 countries that are allowed unrestricted access to advanced AI chips. Analysts say while a growing technological relationship between the two countries would likely make India eligible in the future to access advanced U.S. AI chips, New Delhi’s existing ties with Moscow and the perception of a less robust technology regulatory framework led to its exclusion from the top list.

Exclusion not a surprise

The Commerce Department’s policy framework divides the world into three categories. The first tier includes the U.S. and 18 countries with unrestricted access, followed by a list of more than 100 countries that will be subjected to new caps on advanced semiconductors with individual exemptions. The third tier includes adversaries such as China and Russia that face maximum restrictions.

India falls in the second category, along with U.S. allies like Israel and close friends such as Singapore.

Bhaskar Chakravorti, the dean of global business at The Fletcher School of Law and Diplomacy at Tufts University in Massachusetts, said that India’s relationship with Russia “puts it outside a super safe category.”

India has had close ties with Russia since the Soviet Union supported its desire for independence from Britain. It maintained those ties during the Cold War, when the U.S. sided with India’s rival Pakistan.

Scott Jones, a non-resident fellow at Washington’s Stimson Center think tank, highlighted recent reports that accused a few Indian companies of aiding Russia’s war on Ukraine, but stressed that while being excluded is a disappointment, it’s “not a setback for India.”

He also pointed to the perception that “India’s ability to control and manage technology is perhaps not as robust as evidenced in some of the 18 countries.”

While India may be off the unrestricted list for now, analysts say its growing technological cooperation with the U.S. may shield it from some curbs.

Richard Rossow, senior adviser and chair on India and Emerging Asia Economies at Washington’s Center for Strategic and International Studies, said the presence of caveats in the new framework would ensure India’s later participation.

“The fact that they have announced that there will be a pathway for some countries to get exemptions that are above what they’re going to consider the standard cap, India, I imagine, would be on the short list of countries,” he told VOA.

In early January, national security adviser Jake Sullivan traveled to India and met with Prime Minister Narendra Modi and other senior officials. During the trip, both sides reiterated their commitment to forge a “strategic technology partnership” and strengthen cooperation under the U.S.-India initiative on Critical and Emerging Technology (iCET), a bilateral mechanism focused on technology partnership.

On semiconductors, the U.S. is facilitating investments in India’s semiconductor manufacturing and intensifying R&D collaboration.

During his trip, Sullivan highlighted the investment of $2.7 billion in India by U.S. chipmaker Micron to create semiconductor packaging facilities, which he hoped would contribute to establishing “India as a new hub in the global chip ecosystem.”

The Indian government too is investing billions of dollars through its dedicated program called the India Semiconductor Mission and Production Linked Incentive scheme.

Rossow argued that the Indian government would not have been “terribly surprised” that “they were not included” in the list.

Jones of the Stimson Center agreed.

“Jake Sullivan was in New Delhi last week, and I would be very surprised if he did not inform his Indian counterparts of what was going to happen,” he said.

Ensuring America’s leadership in AI

The Biden administration has focused on the centrality of artificial intelligence to America’s security and economic strength. According to a White House factsheet, the latest steps are part of its effort to prevent offshoring this critical technology and ensure that “the world’s AI runs on American rails.”

Since October 2022, the U.S. government has enacted a series of export controls, blocking access of advanced semiconductors to China to prevent its use for military applications. While initially the measures adversely affected the Chinese semiconductor industry, Beijing has continued to advance its capabilities and is attempting to narrow the technology gap.

According to Chakravorti of the Fletcher School, there are numerous implementation challenges of this expansive global strategy.

“From lobbying from the U.S. chipmakers that will start as soon as Trump takes office to potential leaks in the carefully calibrated list of countries. Will there be a secondary market? How does this affect where future data centers are built?” he asked.

Jones of the Stimson Center argued that the policy is more a “symbolic gesture than a practical consideration” but has a stern message for the rest of the world.

“The U.S. is clearly saying, if you want to participate in the U.S.-sponsored AI ecosystem, you have to pick now. You pick China or you pick us. You can’t have it both ways. You can’t play one off against the other. You have to choose,” he concluded.

US finalizes rules banning Chinese, Russian smart cars

The White House says it has finalized rules that crack down on Chinese and Russian automobile technology effectively banning all personal smart cars from the two countries from entering the U.S. market.

In a White House fact sheet detailing the decision, the Biden administration Tuesday said that while connected vehicles offer advantages, the involvement of foreign adversaries such as China and Russia in their supply chains presents serious risks granting “malign actors unfettered access to these connected systems and the data they collect.”

“The Department of Commerce has issued a final rule that will prohibit the sale and import of connected vehicle hardware and software systems, as well as completed connected vehicles, from the PRC and Russia,” the fact sheet said.

PRC is the acronym for China’s official name, the People’s Republic of China.

Connected vehicles are smart cars that are designed to be convenient for consumers and provide safety for drivers, passengers, and pedestrians through the use of many connected parts such as Wi-Fi, Bluetooth, cellular, and satellite connectivity.

“Cars today aren’t just steel on wheels; they’re computers,” said Commerce Secretary Gina Raimondo when speaking on the rule.

“This is a targeted approach to ensure we keep PRC- and Russian-manufactured technologies off American roads,” said Raimondo.

The new rule is the “culmination of a year-long examination” of potential risks posed by connected vehicles and will “help the United States defend against the PRC’s cyber espionage and intrusion operations, which continue to pose a significant threat to U.S. critical infrastructure and public safety.”

The crackdown on cars follows Washington’s announcement earlier this month that the U.S. consider new rules aimed at addressing risks posed by drones that utilize technology from China and Russia.

The U.S. has repeatedly emphasized the need to balance technological progress with the protection of national security interests.

Trump says he will create an ‘External Revenue Service’ agency to collect tariff income

Washington — President-elect Donald Trump on Tuesday announced plans to create a new agency called the External Revenue Service to collect tariffs and other revenues from foreign nations.

“We will begin charging those that make money off of us with Trade, and they will start paying,” Trump said Tuesday on his social media site, Truth Social. He compared his planned creation to the Internal Revenue Service, which is the nation’s domestic tax collector.

The creation of a new agency requires an act of Congress, and Republicans hold the majority of both the House and the Senate.

Trump, who has vowed to shrink the size of government, would be creating a new agency to perform functions already handled by existing agencies, including the Commerce Department and the Customs and Border Patrol, which collect duties and revenues from other nations.

The president-elect has tapped two business titans to lead his Department of Government Efficiency, or DOGE, a nongovernmental task force assigned to find ways to fire federal workers, cut programs and slash federal regulations, all part of what he calls his “Save America” agenda for a second term in the White House.

Billionaire Elon Musk and fellow entrepreneur Vivek Ramaswamy are leading the DOGE’s ambitious efforts to reduce the size and scope of the federal government.

Tariffs, with the threat of a potential 25% levy on all goods from allies like Canada and Mexico and 60% on goods from China, have become a benchmark of Trump’s economic agenda as he heads into his second term.

Economists have said the cost of the tariffs will be passed on to consumers, and are generally skeptical of them, considering them a mostly inefficient way for governments to raise money and promote prosperity.

Democratic lawmakers were quick to criticize the External Revenue Service plan.

“No amount of silly rebranding will hide the fact that Trump is planning a multi-trillion-dollar tax hike on American families and small businesses to pay for another round of tax handouts to the rich,” Oregon Sen. Ron Wyden, the top Democrat on the Senate Finance Committee, said in a statement.

Biden issues executive order for building AI data centers on federal land 

— U.S. President Joe Biden issued an executive order Tuesday directing the development of artificial intelligence data centers on six federal land sites, with a special focus on powering them with clean energy and upholding high labor standards. 

Biden said in a statement that the United States is the world leader in AI, but cannot take that lead for granted. 

“We will not let America be out-built when it comes to the technology that will define the future, nor should we sacrifice critical environmental standards and our shared efforts to protect clean air and clean water,” Biden said. 

The order calls for the Department of Defense and Department of Energy to each identify three suitable sites where private companies will lease the land, pay for the construction and operation of the data centers and ensure the supply of enough clean energy to fully power the sites. 

The developers will also have to buy “an appropriate share” of semiconductors produced in the United States to help ensure there is a “robust domestic semiconductor supply chain,” the White House said. 

In addition to identifying the sites, the federal government will also commit under the order to expedite the permitting process for the data center construction. 

Senior administration officials, in a phone call with journalists previewing the order, highlighted the national security need for the United States to have its own powerful AI infrastructure, both to protect it for its own use but also to prevent adversaries such as China from possessing those capabilities. 

“From the national security standpoint, it’s really critical to find a pathway for building the data centers and power infrastructure to support frontier AI operations here in the United States to ensure that the most powerful AI models continue to be trained and stored securely here in the United States,” an official said. 

A senior administration official cited the priority of making sure the AI industry had an anchor in the United States to avoid repeating the history of other technologies that moved offshore to areas with lower labor and environmental standards as well. 

AI chip restrictions 

Tuesday’s order comes a day after the Biden administration announced new restrictions on the export of the most advanced artificial intelligence chips and proprietary parameters used to govern the interactions of users with AI systems.    

The rule, which will undergo a 120-day period for public comments, comes in response to what administration officials described as a need to protect national security while also clarifying the rules under which companies in trusted partner countries could access the emerging technology in order to promote innovation.   

“Over the coming years, AI will become really ubiquitous in every business application in every industry around the world, with enormous potential for enhanced productivity and societal, health care and economic benefits,” Commerce Secretary Gina Raimondo told reporters. “That being said, as AI becomes more powerful, the risks to our national security become even more intense.”   

A senior administration official said the new rule will not include any restrictions on chip sales to Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, South Korea, Spain, Sweden, Taiwan, the United Kingdom or the United States.   

The rules build on 2023 curbs limiting the export of certain AI chips to China, a strategic competitor in the production of advanced semiconductors. Beijing attacked the new U.S. AI edict as a “flagrant violation” of international trade rules.  

China’s Ministry of Commerce said the Biden administration announcement “is another example of the generalization of the concept of national security and the abuse of export control, and a flagrant violation of international multilateral economic and trade rules.”  

Beijing said it would “take necessary measures to firmly safeguard its legitimate rights and interests.” 

Countries that are under U.S. arms embargoes are already subject to export restrictions on advanced AI chips, but a senior administration official said they will now be under restrictions for the transfer of the most powerful closed weight AI models.    

The weights in an AI model determine how it processes the inputs from a user and determines what to provide the user as a response, according to the National Telecommunications and Information Administration. In a closed weight system, those parameters are secret, unlike with an open weight system in which users could see the settings the model is using to make its decisions.    

Most countries — those not included in the closed partner or arms embargo lists — will not face licensing requirements for obtaining the equivalent of 1,700 of the most advanced AI chips currently available, nor for any less advanced chips.   

Companies in the United States and allied countries will not face restrictions in using the most powerful closed weight AI systems, provided they are stored under adequate security, a senior administration official said. 

 

UK’s antitrust regulator to investigate Google’s search services

LONDON — Britain’s antitrust regulator said on Tuesday it would investigate Google’s search services using its new powers to see how they impact consumers and businesses, including advertisers, news publishers and rival search engines.

The Competition and Markets Authority, which has gained new powers to examine big tech, said search was vital for economic growth and it was critical that competition was working well.

“Millions of people and businesses relied on Google’s search and advertising services – with 90% of searches happening on their platform and more than 200,000 UK businesses advertising there,” CMA boss Sarah Cardell said in a statement.

“It’s our job to ensure people get the full benefit of choice and innovation in search services and get a fair deal.”

The CMA’s move comes after U.S. prosecutors in November argued to a judge that Google must sell its Chrome browser, share data, and search results with rivals, and take a range of other measures to end its monopoly on online search.

Google did not immediately respond to a request for a comment.

Jeff Bezos’ space company tries to launch rocket after last-minute postponement

CAPE CANAVERAL, Fla. — Blue Origin will try again to launch its massive new rocket as early as Tuesday after calling off the debut launch because of ice buildup in critical plumbing.

The 98-meter New Glenn rocket was supposed to blast off before dawn Monday with a prototype satellite. But ice formed in a purge line for a unit powering some of the rocket’s hydraulic systems and launch controllers ran out of time to clear it, according to the company.

Founded by Amazon’s Jeff Bezos, Blue Origin said Tuesday’s poor weather forecast could cause more delay. Thick clouds and stiff wind were expected at Cape Canaveral Space Force Station.

The test flight already had been delayed by rough seas that posed a risk to the company’s plan to land the first-stage booster on a floating platform in the Atlantic.

New Glenn is named after the first American to orbit Earth, John Glenn. It is five times taller than Blue Origin’s New Shepard rocket that carries paying customers to the edge of space from Texas.

Bezos founded the company 25 years ago. He took part in Monday’s countdown from Mission Control, located at the rocket factory just outside the gates of NASA’s Kennedy Space Center.

No matter what happens, Bezos said this weekend, “We’re going to pick ourselves up and keep going.”