Connect with us

Published

on

All investment is risky. What better way to avoid that risk than to use other people’s money? Federal, state, and local governments dispense gifts, grants, and loans to private companies, generously funded by taxpayers and usually with vague promises of economic development in return. While politicians say they don’t like to pick winners and losers, even the “winners” sometimes turn out to be losers for taxpayers.

General Motors I.T.?Innovation Center
Chandler, Arizona
General Motors announced in 2013 that it had picked Chandler for the site of its fourth Information Technology Innovation Center, an internal software development facility. The company would invest $21 million and create 1,000 jobs, and in return Chandler promised over $1 million in economic incentives between 2015 and 2017. In August 2023, G.M. announced that it would close the facility, laying off 940 out of 1,029 workers by the end of October. Chandler’s development director told local news that the announcement “came as a complete surprise.”

Lordstown Motors
Lordstown, Ohio
Amid the financial crisis in 2009, General Motors (G.M.) received $60 million in tax breaks to expand its Lordstown plant. All the company had to do was keep the plant open through at least 2039; instead, G.M. closed the plant in 2019. Rather than claw back the full amount, the Ohio government settled for a $20 million repayment. G.M. then sold the factory to upstart electric vehiclemaker Lordstown Motors, which received another $24.5 million in grants and tax credits. In June 2023, after delivering fewer than 40 vehicles to customers, Lordstown Motors filed for bankruptcy.

Tesla and SolarCity
Buffalo, New York
In 2013, New York pledged as much as $1 billion toward economic development projects to revitalize Buffalo as a manufacturing hub. The largest beneficiary was SolarCity, a solar panel manufacturer later acquired by Tesla in 2016. The state offered $1.25 billion in grants and tax credits in exchange for a factory that would create 5,000 jobs and generate 1,000 solar panel installations per week. But in 2023, after eight years of lowered job requirements and shifting deadlines, the factory employed just 1,700 people (mostly Tesla analysts) and averaged 21 solar panel installs per week.

Yellow Corporation
Overland Park, Kansas
In 2020, the Treasury Department was apportioned $17 billion in pandemic relief funds to disburse to companies it deemed vital to national security. It loaned $700 million of those funds to Yellow Corporation, a freight trucking company worth only $70 million that had lost $104 million the prior year. According to an audit released in 2023, Yellow had an outstanding balance of $729 million in March and had paid only a measly $230 toward the loan’s principal. Yellow filed for bankruptcy in August 2023.

Amazon HQ2
Arlington, Virginia
When Amazon announced plans in 2017 to open a second headquarters (“HQ2”), it encouraged “local and state government leaders” to compete for the project. After receiving several multibillion-dollar offers, Amazon chose Arlingtondirectly adjacent to Washington, D.C. The state offered as much as $750 million in conditional grants for Amazon to build its campus in Virginia, and in April 2023, the company requested its first tranche of taxpayer fundsover $152 million. While phase one of the project was completed in May 2023, construction is paused indefinitely on phase two.

Continue Reading

US

Donald Trump sending ‘top of the line’ weapons to support NATO in Ukraine war

Published

on

By

Donald Trump sending 'top of the line' weapons to support NATO in Ukraine war

Donald Trump has agreed to send “top of the line weapons” to NATO to support Ukraine – and threatened Russia with “severe” tariffs if it doesn’t agree to end the war.

Speaking with NATO secretary-general Mark Rutte during a meeting at the White House, the US president said: “We’ve made a deal today where we are going to be sending them weapons, and they’re going to be paying for them.

“This is billions of dollars worth of military equipment which is going to be purchased from the United States, going to NATO, and that’s going to be quickly distributed to the battlefield.”

Follow the latest here

Donald Trump and NATO secretary general Mark Rutte in the White House. Pic: Reuters
Image:
Pic: Reuters

Weapons being sent include surface-to-air Patriot missile systems and batteries, which Ukraine has asked for to defend itself from Russian air strikes.

Mr Trump also said he was “very unhappy” with Russia, and threatened “severe tariffs” of “about 100%” if there isn’t a deal to end the war in Ukraine within 50 days.

The White House added that the US would put “secondary sanctions” on countries that buy oil from Russia if an agreement was not reached.

Later on Monday, Ukrainian leader Volodymyr Zelenskyy thanked Mr Trump and said he was “grateful” for the US president’s “readiness to help protect our people’s lives”.

Analysis: Will Trump’s shift in tone make a difference?

As ever, there is confusion and key questions are left unanswered, but Donald Trump’s announcement on Ukraine and Russia today remains hugely significant.

His shift in tone and policy on Ukraine is stark. And his shift in tone (and perhaps policy) on Russia is huge.

Read Mark’s analysis here.

After criticising Vladimir Putin’s “desire to drag it out”, he said he appreciated “preparing a new decision on Patriots for Ukraine” – and added Kyiv is “working on major defence agreements with America”.

It comes after weeks of frustration from Mr Trump over Mr Putin’s refusal to agree to an end to the conflict, with the Russian leader telling the US president he would “not back down” from Moscow’s goals in Ukraine at the start of the month.

Please use Chrome browser for a more accessible video player

Trump threatens Russia with ‘severe’ tariffs’

During the briefing on Monday, Mr Trump said he had held calls with Mr Putin where he would think “that was a nice phone call”, but then “missiles are launched into Kyiv or some other city, and that happens three or four times”.

“I don’t want to say he’s an assassin, but he’s a tough guy,” he added.

Earlier this year, Mr Trump told Mr Zelenskyy “you’re gambling with World War Three” in a fiery White House meeting, and suggested Ukraine started the war against Russia as he sought to negotiate an end to the conflict.

After Mr Trump’s briefing, Russian senator Konstantin Kosachev said on Telegram: “If this is all that Trump had in mind to say about Ukraine today, then all the steam has gone out.”

Read more:
Trump announces 30% tariff on EU imports

Trump threatens to revoke US comedian’s citizenship
Two women killed after shooting at US church

Follow The World
Follow The World

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

Meanwhile, Mr Zelenskyy met with US special envoy Keith Kellogg in Kyiv, where they “discussed the path to peace” by “strengthening Ukraine’s air defence, joint production, and procurement of defence weapons in collaboration with Europe”.

He thanked both the envoy for the visit and Mr Trump “for the important signals of support and the positive decisions for both our countries”.

Continue Reading

US

Trump is clearly fed up with Putin – but will his shift in tone force Russia to the negotiating table?

Published

on

By

Trump is clearly fed up with Putin - but will his shift in tone force Russia to the negotiating table?

As ever, there is confusion and key questions are left unanswered, but Donald Trump’s announcement on Ukraine and Russia today remains hugely significant.

His shift in tone and policy on Ukraine is stark. And his shift in tone (and perhaps policy) on Russia is huge.

Ever since Mr Trump returned to the White House he has flatly refused to side with Ukraine over the Russian invasion.

He has variously blamed Ukraine for the invasion and blamed Joe Biden for the invasion, but has never been willing to accept that Russia is the aggressor and that Ukraine has a legitimate right to defend itself.

Today, all that changed. In a clear signal that he is fed up with Vladimir Putin and now fully recognises the need to help Ukraine defend itself, he announced the US will dramatically increase weapons supplies to Kyiv.

Donald Trump meets with NATO Secretary General Mark Rutte in the White House. Pic: Reuters
Image:
Pic: Reuters

But, in keeping with his transactional nature and in a reflection of the need to keep his isolationist “America-First” base on side, he has framed this policy shift as a multi-billion dollar “deal” in which America gains financially.

American weapons are to be “sold” to NATO partners in Europe who will then either transfer them to Ukraine or use them to bolster their own stockpiles as they transfer their own existing stocks to Kyiv.

“We’ve made a deal today,” the president said in the Oval Office. “We are going to be sending them weapons, and they are paying for them. We are manufacturing, they are going to be paying for it. Our meeting last month was very successful… these are wealthy nations.”

Please use Chrome browser for a more accessible video player

What will Trump’s weapons deal mean for Ukraine?

This appears to be a clever framing of the “deal”. Firstly, America has always benefited financially by supplying weapons to Ukraine because much of the investment has been in American factories, American jobs and American supply chains.

While the details are not entirely clear, the difference now appears to be that the weapons would be bought by the Europeans or by NATO as an alliance.

The Americans are the biggest contributor to NATO, and so if the alliance is buying the weapons, America too will be paying, in part, for the weapons it is selling.

However, if the weapons are being bought by individual NATO members to replenish their own stocks, then it may be the case that the US is not paying.

NATO officials referred all questions on this issue to the White House, which has not yet provided clarity to Sky News.

It is also not yet clear what type of weapons will be made available and whether it will include offensive, as well defensive, munitions.

Please use Chrome browser for a more accessible video player

Will Trump’s deal make a difference?

A key element of the package will likely be Patriot missile batteries, 10 to 15 of which are believed to be currently in Europe.

Under this deal, it is understood that some of them will be added to the six or so batteries believed to be presently in Ukraine. New ones would then be purchased from US manufacturers to backfill European stocks. A similar arrangement may be used for other weapons.

Follow The World
Follow The World

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

The president also issued the Russian leader with an ultimatum, saying that Putin had 50 days to make a peace deal or else face 100% “secondary tariffs”. It’s thought this refers to a plan to tariff, or sanction, third countries that supply Russia with weapons and buy Russian oil.

This, the Americans hope, will force those countries to apply pressure on Russia.

But the 50-day kicking of the can down the road also gives Russia space to prevaricate. So, a few words of caution: first, the Russians are masters of prevarication. Second, Trump tends to let deadlines slip. And third, we all know Trump can flip-flop on his position repeatedly.

Read more:
BBC breached editorial guidelines over Gaza documentary
Air India plane suffered ‘no mechanical fault’ before crash

Please use Chrome browser for a more accessible video player

‘Trump sides with the Ukrainian cause’

Maybe the most revealing aspect of all this came when a reporter asked Mr Trump: “How far are you willing to go if Putin sends more bombs in the coming days?”

“Don’t ask me questions like that…”

Mr Trump doesn’t really know what to do if Mr Putin continues to take him for a ride.

Mr Biden, before him, supplied Ukraine with the weapons to continue fighting.

If Mr Trump wants to end this, he may need to provide Ukraine with enough weapons to win.

But that would prolong, or even escalate, a war he wants to end now.

There’s the predicament.

Continue Reading

Technology

Nvidia says U.S. government will allow it to resume H20 AI chip sales to China

Published

on

By

Nvidia says U.S. government will allow it to resume H20 AI chip sales to China

Nvidia CEO Jensen Huang attends a roundtable discussion at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris on June 11, 2025.

Sarah Meyssonnier | Reuters

Nvidia announced Tuesday that it hopes to resume sales of its H20 general processing units to clients in China, saying that the U.S. government had assured the company would be granted licenses.

Nvidia’s sales of the H20 chips, which had been designed specifically to keep them out of export controls on China, were halted in April.

“The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,” the company said in a statement.

This comes against the backdrop of a preliminary trade deal between Washington and Beijing last month that sought China to resume rare earth exports and the U.S. to relax tech export controls.

Nvidia CEO Jensen Huang in recent months has ramped up his lobbying against export controls, arguing that they inhibited American tech leadership. In May, Huang said chip restrictions had already cut Nvidia’s China market share nearly in half.

Huang also announced a new “fully compliant” GPU, NVIDIA RTX PRO, saying it was ideal for smart factories and logistics.

The potential change in U.S. stance follows a meeting between Huang and U.S. President Donald Trump last week.

In his meeting with Trump and U.S. policymakers, Huang had reaffirmed Nvidia’s support for the administration’s job creation and onshoring efforts, as well as the aim for America to lead in global AI, the company said.

Meanwhile, in Beijing, it was confirmed that Huang has met with government and industry officials to discuss the benefits of AI and ways for researchers to advance safe and secure AI for the benefit of all. 

Continue Reading

Trending