Tag Archives: Donald Trump

Colorado school cancels classes over threat after Trump piñata incident

By Keith Coffman

DENVER (Reuters) – A Colorado high school canceled classes on Monday following an unspecified online threat, authorities said, days after a Spanish teacher there was suspended over allegations he allowed students to strike a piñata depicting President Donald Trump.

Activities at Roosevelt High School in the town of Johnstown, about 40 miles north of Denver, were put on hold out of an abundance of caution, Martin Foster, superintendent of the Johnstown-Milliken school district, said in a statement.

“Recent tragedies around the country and in our own state have heightened everyone’s concern for the safety of students,” Foster said. He did not say if the threat was related to the piñata incident.

Colorado has been the scene of several school shootings and threats, most notably the 1999 massacre at Columbine High School, where two students fatally shot a teacher and 12 students before committing suicide.

Foster said he became aware last Friday of social media posts of a Cinco De Mayo event at the school where a photograph of Trump was affixed to a piñata. Cinco De Mayo is an annual celebration commemorating the Mexican army’s defeat of French forces at the Battle of Puebla in 1862.

“This was an incredibly disrespectful act that does not reflect the values of Roosevelt High School or the school district,” Foster said.

The teacher, whom the district has not publicly identified, has been placed on paid administrative leave while the incident is investigated, Foster said.

Classes and other activities will resume on Tuesday with an increased police presence at the school, Assistant Superintendent Jason Seybert said by telephone.

(Reporting by Keith Coffman; Editing by Ben Klayman and Peter Cooney)

Judges hit Trump lawyer with tough questions over revised travel ban

FILE PHOTO: A member of the Al Murisi family, Yemeni nationals who were denied entry into the U.S. last week because of the recent travel ban, shows the cancelled visa in their passport from their failed entry to reporters as they successfully arrive to be reunited with their family at Washington Dulles International Airport in Chantilly, Virginia, U.S. February 6, 2017. REUTERS/Jonathan Ernst/File Photo

By Lawrence Hurley

RICHMOND, Va. (Reuters) – Federal appeals court judges on Monday peppered a U.S. Justice Department lawyer with tough questions about President Donald Trump’s temporary ban on travelers from six Muslim-majority nations, with several voicing skepticism that protecting national security was the aim of the policy, not religious bias.

Six Democratic appointees on a court dominated by judges named by Democratic presidents showed concerns about reviving the Republican president’s March executive order that prohibited new visas to enter the United States for citizens of Iran, Libya, Somalia, Sudan, Syria and Yemen for three months.

But three Republican appointees on the Richmond, Virginia-based 4th U.S. Circuit Court of Appeals seemed to lean toward the administration, asking whether the president should be second-guessed when it comes to protecting the country’s borders and whether the plaintiffs bringing the suit had been sufficiently harmed by the order during arguments before 13 judges.

Based on the judges’ questions, a ruling could hinge on whether the appeals court agrees with a lower court judge that past statements by Trump about the need to prevent Muslims from entering the United States should be taken into account. That would be bad news for a young administration seeking victory on one of its first policy changes.

“This is not a Muslim ban,” Acting Solicitor General Jeffrey Wall, arguing for the government, told the judges during the hearing that lasted two hours, twice as long as scheduled.

Judge Robert King, named by Democratic former President Bill Clinton, told Wall that Trump has never retracted previous comments about wanting to impose a ban on Muslims.

“He’s never repudiated what he said about the Muslim ban,” King said, referring to Trump’s campaign promise for a “total and complete shutdown of Muslims entering the United States.”

POLITICAL DEBATE

Wall told the judges past legal precedent holds that the court should not look behind the text of the Trump’s executive order, which does not mention any specific religion, to get at its motivations. He warned that despite the “heated and passionate political debate” about the ban, there was a need to be careful not to set legal precedent that would open the door to broader questioning of presidential decision making on security matters.

Judge Paul Niemeyer, appointed by Republican former President George H.W. Bush, told Omar Jadwat, the American Civil Liberties Union lawyer representing the plaintiffs who challenged the order, that they were asking the court to rule on a president’s national security judgments.

“You have the judiciary supervising and assessing how the executive is carrying out his office,” Niemeyer said, pressing Jadwat, who seemed to stumble at times after pointed questioning by the judges. “I just don’t know where this stops.”

The revised travel ban was challenged in Maryland by refugee organizations and individuals who said they were being discriminated against because they were Muslim and because they had family members adversely affected by the ban. They argue the order violated federal immigration law and a section of the U.S. Constitution’s First Amendment barring the government from favoring or disfavoring a particular religion.

The administration appealed a March 15 ruling by Maryland-based federal judge Theodore Chuang that put the ban on hold just a day before it was due to go into effect.

The arguments marked the latest legal test for Trump’s ban, which also was blocked by federal judge Derrick Watson in Hawaii in a separate legal challenge. An earlier version of the ban was also blocked by the courts.

Chuang, in Maryland, blocked the part of Trump’s order relating to travel by people from the six countries. Watson, in Hawaii, also blocked another part of the order that suspended the entry of refugees into the United States for four months.

‘HOW IS THIS NEUTRAL?’

To a packed audience in the ornate pre-Civil War era courthouse, Judge Pamela Harris said Trump’s action clearly had a disparate impact on Muslims, asking, “How is this neutral in its operation as to Muslims?” Judge Barbara Keenan, who like Harris was appointed by Democratic former President Barack Obama, said the order could affect some 200 million people.

Regardless of how the 13 judges rule, the matter is likely to be decided ultimately by the U.S. Supreme Court. The full 4th Circuit took up the appeal but two Republican-appointed judges did not participate. That left nine judges appointed by Democratic presidents, three Republican appointees and one judge originally appointed by a Democrat and later re-appointed by a Republican.

It was unclear when the court would rule.

Trump issued the March executive order after federal courts blocked an earlier version, issued on Jan. 27 a week after he took office, that also had included Iraq among the nations targeted. That order, which went into effect immediately, triggered chaos and protests at airports and in several cities before being put on hold due to legal challenges.

The second order was intended to overcome the legal problems posed by the original ban.

The administration’s appeal in the Hawaii case will be heard in Seattle on May 15 by a three-judge panel of the San Francisco-based 9th U.S. Circuit Court of Appeals. The three judges assigned all are Democratic appointees.

Wall said the temporary ban was intended to give the government time to evaluate whether people from the six countries were being subjected to adequate vetting to ensure they did not pose a security threat to the United States.

But he said the administration had not been able to proceed on all the work it wanted to do because of the litigation, noting “we have put our pens down.”

(Reporting by Lawrence Hurley; Additional reporting by Mica Rosenberg in New York and Dan Levine in San Francisco; Editing by Will Dunham and Mary Milliken)

France’s Victorious Macron reminded of huge and immediate challenges

Outgoing French President Francois Hollande (R) reaches out to touch President-elect Emmanuel Macron, as they attend a ceremony to mark the end of World War II at the Tomb of the Unknown Soldier at the Arc de Triomphe in Paris, France,

By Michel Rose and John Irish

PARIS (Reuters) – Emmanuel Macron was confronted on Monday with pressing reminders of the challenges facing him as France’s next president, even as allies and some former rivals signaled their willingness to work closely with him.

The centrist’s victory over far-rightist Marine Le Pen in Sunday’s election came as a huge relief to European Union allies who had feared another populist upheaval to follow Britain’s vote to quit the EU and Donald Trump’s election as U.S. president.

“He carries the hopes of millions of French people, and of many people in Germany and the whole of Europe,” German Chancellor Angela Merkel told a news conference in Berlin.

“He ran a courageous pro-European campaign, stands for openness to the world and is committed decisively to a social market economy,” the EU’s most powerful leader added, congratulating Macron on his “spectacular” election success.

But even while pledging to help France tackle unemployment, she rejected suggestions Germany should do more to support Europe’s economy by importing more from its partners to bring down its big trade surplus.

European Commission President Jean-Claude Juncker put it bluntly: “With France, we have a particular problem … The French spend too much money and they spend too much in the wrong places. This will not work over time,” Juncker said in Berlin.

The euro fell from six-month highs against the dollar on confirmation of Macron’s widely expected victory by a margin of 66 percent to 34 percent, as investors took profit on a roughly 3 percent gain for the currency since he won the first round two weeks ago.

France’s economic malaise, especially high unemployment, had undermined the popularity of outgoing Socialist President Francois Hollande to the point where he decided not even to run as a candidate.

“This year, I wanted Emmanuel Macron to be here with me so that a torch could be passed on,” said Hollande, who appeared with Macron at the Tomb of the Unknown Soldier at Paris’ Arc de Triomphe to commemorate Victory in Europe Day and the surrender of Nazi forces on May 8, 1945 at the end of World War Two.

Elsewhere in Paris, hundreds of people, led by the powerful CGT trade union, marched in protest against Macron’s planned labor reforms.

PARLIAMENTARY MAJORITY

On assuming office next Sunday as France’s youngest leader since Napoleon, the 39-year-old faces the immediate challenge of securing a majority in next month’s parliamentary election in order to have a realistic chance of implementing his plans for lower state spending, higher investment and reform of the tax, labor and pension systems.

With the two mainstream parties – the conservative Republicans and the left-wing Socialists – both failing to reach the presidential runoff, his chances of winning a majority that supports his election pledges will depend on him widening his centrist base.

The Socialists are torn between the radical left of their defeated candidate Benoit Hamon and the more centrist, pro-business branch led by former premier Manuel Valls.

On Monday, key members of the centrist arm of The Republicans appeared ready to work with Macron despite the party hierarchy calling for unity to oppose the new president and calling those that were wavering “traitors”.

“I can work in a government majority,” said Bruno Le Maire, a senior Republicans party official, who had been an aide of presidential candidate Francois Fillon.

“The situation is too serious for sectarianism and to be partisan.”

Le Pen, 48, defiantly claimed the mantle of France’s main opposition in calling on “all patriots to join us” in constituting a “new political force”.

Her tally was almost double the score that her father Jean-Marie, the last far-right candidate to make the presidential runoff, achieved in 2002, when he was trounced by the conservative Jacques Chirac.

(Additional reporting by Ingrid Melander, Andrew Callus, Bate Felix, Adrian Croft, Leigh Thomas, Tim Hepher, Gus Trompiz; Writing by Richard Balmforth and John Irish; Editing by Mark Trevelyan and Ralph Boulton)

Japan, China to boost financial ties amid protectionist, North Korean tensions

Chinese Finance Minister Xiao Jie (R) and Japanese Finance Minister Taro Aso shake hands during their bilateral meeting, on the sidelines of Asian Development Bank (ADB) annual meeting, in Yokohama, Japan, Saturday, May 6, 2017. REUTERS/Koji Sasahara/Pool

By Tetsushi Kajimoto

YOKOHAMA, Japan (Reuters) – Japan and China agreed to bolster economic and financial cooperation, Japanese Finance Minister Taro Aso said on Saturday, as U.S. President Donald Trump’s protectionist stance and tension over North Korea weigh on Asia’s growth outlook.

Chinese Finance Minister Xiao Jie, who missed a trilateral meeting with his Japanese and South Korean counterparts on Friday for an emergency domestic meeting, had flown in for the talks with Aso, seeking to dispel speculation his absence had any diplomatic implications.

“We actively exchanged views on economic and financial situations in Japan and China and our cooperation in the financial field,” Aso told reporters after the meeting, which included senior finance ministry and central bank officials.

“It was significant that we reconfirmed the need of financial cooperation between the two countries while sharing our experiences in dealing with economic policies and structural issues,” he added.

The two countries agreed to launch joint research on issues of mutual interest – without elaborating – and to report the outcomes at the next talks, which will be held in 2018 in China.

They did not discuss issues such as currencies and geopolitical risks from North Korea’s nuclear and missile program during the dialogue, held on the sidelines of the Asian Development Bank’s (ADB) annual meeting in Yokohama, eastern Japan, Aso said.

Relations between Japan and China have been strained over territorial rows and Japan’s occupation of parts of China in World War Two, though leaders have recently sought to mend ties through dialogue.

Still, China’s increasing presence in infrastructure finance has alarmed some Japanese policymakers, who worry that Beijing’s new development bank, the Asian Infrastructure Investment Bank (AIIB), may overshadow the Japan-backed ADB.

Shortly before the bilateral talks on Saturday, Xiao voiced hope that the ADB will boost ties with China’s high profile “One Belt One Road” infrastructure development initiatives.

“China hopes the ADB … strengthens the strategic ties between its programs and the One Belt One Road initiative to maximize synergy effects and promote Asia’s further development,” Xiao told the ADB’s annual gathering.

Japan and China do agree on the need to respect free trade, which they see as crucial to Asia’s trade-dependent economies.

Finance officials from Japan, China and South Korea agreed to resist all forms of protectionism in Friday’s trilateral meeting, taking a stronger stand than G20 major economies against the protectionist policies advocated by Trump.

China has positioned itself as a supporter of free trade in the wake of Trump’s calls to put America’s interests first and pull out of multilateral trade agreements.

Japan has taken a more accommodative stance toward Washington’s argument that trade must not just be free but fair.

(Reporting by Tetsushi Kajimoto; Editing by Nick Macfie and Alexander Smith)

Pentagon to lease privately owned Trump Tower apartment for nuclear ‘football’: letter

The West facing entrance to Trump Tower on 5th Avenue in New York City, U.S., is seen April 26, 2017. Picture Taken April 26, 2017. REUTERS/Mike Segar

By Mark Hosenball and Phil Stewart

WASHINGTON (Reuters) – The U.S. Defense Department is finalizing a lease on a privately owned apartment in New York’s Trump Tower for the White House Military Office to use for supporting President Donald Trump without providing any benefit to Trump or his organization, according to a Pentagon letter seen by Reuters.

The Military Office carries and safeguards the “football,” the device that contains the top secret launch codes the president needs to order a nuclear attack, as well as providing him secure communications wherever he is.

The White House, Secret Service, and Defense Department had no comment on whether similar arrangements have been made at other properties Trump frequents – Mar-a-Lago in Palm Beach, Florida and the Trump National Golf Club in Bedminster, New Jersey, where Trump is spending this weekend.

In a letter to Representative Jackie Speier, a Democrat on the House Armed Services and intelligence committees, Defense Department official James MacStravic, said the apartment is “privately owned and … lease negotiations have been with the owner’s representatives only.”

MacStravic, who wrote that he was “temporarily performing the duties of the Under Secretary of Defense for Acquisition, Technology, and Logistics,” said any acquisition of leased space with “an annual rental in excess of $1 million must first be approved by my office.”

He “approved this action” after consulting with the White House Military Office and other officials, he said.

Officials declined to reveal the cost of the lease or identify the owners of the apartment.

MacStravic’s letter, dated March 3, added: “We are not aware of any means through which the President would personally benefit from a Government lease of this space.”

The letter explained that the White House Military Office, a Pentagon unit, “requested approval to lease space in the Trump Tower for personnel assigned to support the President when at his private residence.”

The letter said such arrangements are “typical of support provided” by the Military Office to previous U.S. presidents and vice presidents at their private residences. It is not clear, however, whether the office has ever paid to rent space to house the classified equipment presidents need when they are staying at homes they own outside Washington.

A White House spokeswoman said the White House had no information on the leasing issue. The Defense Department and U.S. Secret Service declined to comment.

The Trump Organization did not reply to an email requesting comment.

When the Pentagon in February first acknowledged that it was seeking to lease space in Trump Tower, some Democrats questioned whether such a move would produce a financial windfall for Trump.

“I am concerned by the appearance that the President of the United States will financially benefit from this deal at the expense of the Department of Defense – and ultimately, taxpayers,” Speier wrote to Defense Secretary James Mattis shortly after the Trump Tower issue became public in February.

By negotiating only with representatives of the owners of a private apartment, the Pentagon said it was seeking to avoid such concerns.

(Reporting By Mark Hosenball,; Phil Stewart, and Jonathan Landay.; Editing by John Walcott and Grant McCool)

With Obamacare vote, House Republicans free to turn to tax reform

U.S. President Donald Trump (C) celebrates with Congressional Republicans in the Rose Garden of the White House after the House of Representatives approved the American Healthcare Act, to repeal major parts of Obamacare and replace it with the Republican healthcare plan, in Washington, U.S., May 4, 2017. REUTERS/Carlos Barria

By David Morgan

WASHINGTON (Reuters) – The Republican-controlled U.S. House of Representatives plans to turn to tax reform in earnest, after concluding a lengthy healthcare debate this week with a vote to repeal and replace Obamacare.

But even as Republicans predicted that tax reform would succeed before year-end, lawmakers encountered new uncertainties about what a final tax package might contain, as well as doubts about whether Republicans will be able to enact reforms without Democratic help.

President Donald Trump and Republicans in Congress have pledged to complete the biggest tax reform since 1986, when President Ronald Reagan was in office, before the end of 2017. But they face an uphill battle, mainly over policy differences within their own ranks.

Thursday’s 217-213 House vote on healthcare legislation raised confidence in the Republican-controlled chamber’s ability to move major legislation after two earlier pushes ended in failure.

But to move forward on tax reform, the House, Senate and Trump administration must agree on where to set tax rates, how to pay for cuts and whether the final package should add to the deficit or pay for itself, all areas where common ground may be hard to find.

A plan to enact reforms without Democratic support will also require Republicans to pass a 2018 budget authorizing the parliamentary process known as reconciliation. But a new budget agreement poses a daunting task given Republican opposition to Trump demands for deep domestic spending cuts.

“That may prove to be one, if not the most difficult votes of the tax reform process,” Jonathan Traub, a managing principal at the consulting firm Deloitte Tax LLP.

Meanwhile, the need to reach agreement between the House, Senate and White House will likely delay introduction of a tax reform bill, which had been expected in early June.

But Republicans say it will ultimately make it easier to enact reforms before the end of the year.

The House Ways and Means Committee, which will unveil the initial tax bill, is still aiming for a revenue-neutral package that raises $2.4 trillion for tax cuts through a new border adjustment tax and elimination of business deductions for net interest payments, both controversial measures.

Panel chairman Kevin Brady told reporters that revenue neutrality is necessary to ensure bold, permanent changes to tax policy that can drive economic growth.

“That’s the argument and the case we’re going to make to the Senate and the Trump administration,” he said.

But Representative Mark Meadows, who chairs the conservative Freedom Caucus that helped block Trump’s first healthcare bill,

voiced opposition to a revenue neutral approach.

“If it’s revenue neutral, you’re not really lowering taxes. You’re shifting the burden,” Meadows told reporters.

The Trump tax plan unveiled last week calls for steep tax cuts financed by government revenues that officials say will result from higher growth. Some fear the plan could add trillions of dollars to the deficit if growth does not materialize.

Meadows said tax cuts should be offset by cuts to entitlement programs including Social Security and Medicare, which Trump has promised not to touch.

(Editing by Alistair Bell)

State Dept. seeks tougher visa scrutiny, including social media checks

A person stands at the counter of U.S. Immigration upon arriving at Miami airport March 13, 2013. REUTERS/Desmond Boylan

By Yeganeh Torbati and Mica Rosenberg

WASHINGTON/NEW YORK (Reuters) – The U.S. Department of State has proposed tougher questioning of visa applicants believed to warrant extra scrutiny, according to a document published Thursday, in a push toward the “extreme vetting” that President Donald Trump has said is necessary to prevent terrorist attacks.

Questions about social media accounts would be part of the stepped-up criteria, which would apply to 65,000 people per year, or about 0.5 percent of U.S. visa applicants worldwide, the State Department estimated. It did not target nationals of any particular countries.

A set of new questions would apply to visa applicants “who have been determined to warrant additional scrutiny in connection with terrorism or other national security-related visa ineligibilities,” the State Department said in a notice to the Federal Register.

Those applicants would be required to provide all prior passport numbers, five years’ worth of social media handles, email addresses and phone numbers, as well as 15 years of biographical information, when applying for a U.S. visa. Consular officers would not request user passwords for social media accounts, the document said.

If granted, the new criteria would mark the first concrete step toward more stringent vetting that Trump asked federal agencies to apply toward travelers from countries he deemed a threat to the United States in an executive order issued in January and revised in March.

While parts of the travel order, including a temporary ban on the entry of nationals from several majority-Muslim countries, were halted by federal courts, the review of vetting procedures detailed in an accompanying memorandum remains in place.

“Collecting additional information from visa applicants whose circumstances suggest a need for further scrutiny will strengthen our process for vetting these applicants and confirming their identity,” a State Department official said.

The State Department’s proposal also says that applicants may be asked to provide additional travel dates if a consular officer determines they have been in an area which was “under the operational control of a terrorist organization.”

The proposed changes must undergo a public comment period before being approved or denied by the Office of Management and Budget (OMB) by May 18. OMB did not respond to a request for comment.

The Department of Homeland Security, which was also tasked with reviewing vetting procedures for visa applicants, said the State Department request does not preclude DHS from identifying new “ways to protect the American people.”

“Some improvement will be classified, others will be public, but the Department has only just begun ways to enhance the security of our immigration system,” DHS spokesman David Lapan said.

SOCIAL MEDIA SNAGS

Immigration lawyers and advocates say the request for 15 years of detailed biographical information, as well as the expectation that applicants remember all their social media handles, is likely to catch applicants who make innocent mistakes or do not remember all the information requested.

They also question whether the time-consuming screening can achieve its intended goal of identifying potential terrorists.

“The more effective tactics are the methods that we currently use to monitor terrorist organizations, not just stumbling into the terrorist who is dumb enough to post on his Facebook page ‘I am going to blow up something in the United States,'” said John Sandweg, a former senior official at DHS who is now with the firm Frontier Solutions, which provides investigatory, crisis management and other services.

Applicants may not necessarily be denied a visa if they fail to provide all the information if it is determined they can provide a “credible explanation,” the notice said.

Secretary of State Rex Tillerson first introduced similar measures in a March cable to American consular officers that outlined questions officers should ask in order to tighten vetting of visa applicants.

But Tillerson had to withdraw that guidance just days later because the OMB had not approved those specific questions.

The State Department estimated that the additional screening measures would take approximately an hour per applicant, meaning an additional 65,000 additional hours of work per year.

Tillerson’s cables anticipated delays as a result of the rules implementation.

“Somebody’s got to do the work,” said Greg Siskind, an immigration attorney in Memphis. “It’s going to cause operations at a lot of consulates slow to a crawl.”

(Link to proposal: https://www.federalregister.gov/documents/2017/05/04/2017-08975/notice)

(Reporting by Yeganeh Torbati in Washington and Mica Rosenberg in New York; Additional reporting by Arshad Mohammed; Writing by Julia Edwards Ainsley; Editing by Yara Bayoumy, Alistair Bell and Leslie Adler)

Trump signs order to ease ban on political activity by churches

U.S. President Donald Trump signs an Executive Order on Promoting Free Speech and Religious Liberty during the National Day of Prayer event at the Rose Garden of the White House in Washington D.C., U.S., May 4, 2017. REUTERS/Carlos Barria

WASHINGTON (Reuters) – U.S. President Donald Trump on Thursday signed an executive order on religious liberties designed to ease a ban on political activity by churches and other tax-exempt institutions.

The order also mandates regulatory relief to religious employers that object to contraception, such as Little Sisters of the Poor.

It does not include provisions to allow government agencies and businesses to deny services to gay people in the name of religious freedom, as was feared by some civil liberties and gay rights groups.

The American Civil Liberties Union said in a statement it would file a lawsuit challenging Trump’s order.

Trump, addressing religious leaders in a signing ceremony at the White House, said: “We will not allow people of faith to be targeted, bullied or silenced any more”.

“No one should be censoring sermons or targeting pastors,” he said.

Trump’s order directs the Internal Revenue Service to “alleviate the burden of the Johnson Amendment,” the White House said in reference to a 1954 law sponsored by Lyndon Johnson, then a Texas senator who later became president.

Under the tax code, organizations that enjoy tax-free status, such as churches, are prohibited from participating in a political campaign or supporting any one candidate for elective office.

This includes a ban on making financial contributions to campaigns and candidates, but the law does allow certain non-partisan political activity such as voter registration or get-out-the-vote drives.

Trump would need Congress to rescind the Johnson Amendment, but he can instruct his administration not to enforce it through executive order.

(Reporting by Ayesha Rascoe and Daniel Trotta; Editing by Susan Heavey and James Dalgleish)

New Yorkers to greet Trump’s first visit home with protests

U.S. President Donald Trump gestures to the media after Palestinian President Mahmoud Abbas left the White House in Washington, U.S., May 3, 2017. REUTERS/Yuri Gripas

By Dave Graham and David Ljunggren

MEXICO CITY/OTTAWA (Reuters) – From launching a data-mining drive aiming to find supply-chain pressure points to sending officials to mobilize allies in key U.S. states, Mexico and Canada are bolstering their defenses of a regional trade pact President Donald Trump vows to rewrite.

Trump has blamed the North American Free Trade Agreement (NAFTA) for the loss of millions of manufacturing jobs and has threatened to tear it up if he fails to get a better deal.

Fearing the massive disruptions a U.S. pullout could cause, the United States’ neighbors and two biggest export markets have focused on sectors most exposed to a breakdown in free trade and with the political clout to influence Washington.

That encompasses many of the states that swept Trump to power in November and senior politicians such as Vice President Mike Pence, a former Indiana governor or Wisconsin representative and House Speaker Paul Ryan.

Prominent CEOs on Trump’s business councils are also key targets, according to people familiar with the lobbying push.

Mexico, for example, has picked out the governors of Texas, Arizona and Indiana as potential allies.

Decision makers in Michigan, North Carolina, Minnesota, Illinois, Tennessee, Wisconsin, Ohio, Florida, Pennsylvania, Nebraska, California and New Mexico are also on Mexico’s priority list, according to people involved in talks.

Mexican and U.S. officials and executives have had “hundreds” of meetings since Trump took office, said Moises Kalach, foreign trade chief of the Mexican private sector team leading the defense of NAFTA. (Graphic:http://tmsnrt.rs/2oYClp2)

Canada has drawn up a list of 11 U.S. states, largely overlapping with Mexico’s targets, that stand to lose the most if the trade pact enacted in 1994 unravels.

To identify potential allies among U.S. companies and industries, Mexican business lobby Consejo Coordinador Empresarial (CCE) recruited IQOM, a consultancy led by former NAFTA negotiators Herminio Blanco and Jaime Zabludovsky.

In one case, the analysis found that in Indiana, one type of engine made up about a fifth of the state’s $5 billion exports to Mexico. Kalach’s team identified one local supplier of the product and put it touch with its main Mexican client.

“We said: talk to the governor, talk to the members of congress, talk to your ex-governor, Vice President Pence, and explain that if this goes wrong, the company is done,” Kalach said. He declined to reveal the name of the company and Reuters could not immediately verify its identity.

Trump rattled the two nations last week when his administration said he was considering an executive order to withdraw from the trade pact, which has been in force since 1994. He later said he would try to renegotiate the deal first and Kalach said the lobbying effort deserved much credit for Trump’s u-turn.

“There was huge mobilization,” he said. “I can tell you the phone did not stop ringing in (Commerce Secretary Wilbur) Ross’s office. It did not stop ringing in (National Economic Council Director) Gary Cohn’s office, in the office of (White House Chief of Staff Reince) Priebus. The visits to the White House from pro-NAFTA allies did not stop all afternoon.”

Among those calling the White House and other senior administration officials were U.S. Chamber of Commerce chief Tom Donohue, officials from the Business Roundtable and CEOs from both lobbies, according to people familiar with the discussions.

PRIME TARGET

Mexico has been the prime target of NAFTA critics, who blame it for lost manufacturing jobs and widening U.S. trade deficits. Canada had managed to keep a lower profile, concentrating on seeking U.S. allies in case of an open conflict.

That changed in late April when the Trump administration attacked Ottawa over support for dairy farmers and slapped preliminary duties on softwood lumber imports.

Despite an apparently weaker position – Canada and Mexico jointly absorb about a third of U.S. exports, but rely on U.S. demand for three quarters of their own – the two have managed to even up the odds in the past by exploiting certain weak spots.

When Washington clashed with Ottawa in 2013 over meat-labeling rules, Canada retaliated by targeting exports from the states of key U.S. legislators. A similar policy is again under consideration.

Mexico is taking a leaf out of a 2011 trucking dispute to identify U.S. interests that are most exposed, such as $2.3 billion of yellow corn exports.

Mexico is also targeting members of Trump advisory bodies, the Strategic and Policy Forum and the Manufacturing Council, led by Blackstone Group LP’s Stephen Schwarzman and Dow Chemical Co boss Andrew Liveris respectively.

Senior Trump administration officials and Republican lawmakers in charge of trade, agriculture and finance committees also feature among top lobbying targets.

Canada has spread the task of lobbying the United States among ministries, official say, and is particularly keen to avoid disruption to the highly-integrated auto industry.

A core component of Mexico’s strategy is to argue the three nations have a common interest in fending off Asian competition and exploring scope to source more content regionally.

The defenders of NAFTA also say that it supports millions of jobs in the United States, and point out that U.S. trade shortfalls with Canada and Mexico have declined over the past decade even as the deficit with China continued to climb.

Part of IQOM’s mission is to identify sectors where NAFTA rules of origin could be modified to increase regional content.

For example, U.S., Canadian and Mexican officials are debating how the NAFTA region can reduce auto parts imports from China, Japan, South Korea or Germany, Mexican officials say.

“The key thing is to see how we can get a win-win on the products most used in our countries, and to develop common manufacturing platforms that allow us just to buy between ourselves the biggest amount of inputs we need,” said Luis Aguirre, vice-president of Mexican industry group Concamin.

Graphic: Trade battles – http://tmsnrt.rs/2pAdPcp

(Additional reporting by Michael O’Boyle Alexandra Alper, Ana Isabel Martinez, Ginger Gibson and Adriana Barrera; Editing by Tomasz Janowski)

U.S. needs to balance foreign alliances: Tillerson

U.S. Secretary of State Rex Tillerson delivers remarks to the employees at the State Department in Washington, U.S., May 3, 2017. REUTERS/Yuri Gripas

By Yeganeh Torbati

WASHINGTON (Reuters) – U.S. Secretary of State Rex Tillerson on Wednesday outlined for his staff how an “America First” agenda translates into foreign policy, but did not address the Trump administration’s proposed budget cuts, which worry many diplomats.

It was the first time Tillerson had addressed all employees since his first day on the job on Feb. 2, when he spoke to hundreds of State Department officials in the building’s lobby, and the most thorough explanation yet of the Trump administration’s approach to foreign policy.

Some allies and even some U.S. officials have interpreted Republican President Donald Trump’s “America First” agenda, which puts Americans’ interests at home ahead of those of its partners overseas, as a threat to retreat from the world.

Tillerson said U.S. foreign policy priorities had gotten “a little bit out of balance” in the previous decades, with the United States too focused on promoting economic activity and trade with emerging economies.

“These are really important relationships to us, and they’re really important alliances, but we’ve got to bring them back into balance,” he said, speaking without notes and walking around the stage in a packed State Department auditorium.

He also signaled that the United States would de-emphasize human rights concerns in some of its interactions with other countries, saying that while U.S. values remain constant, its policies can adapt.

“If we condition too heavily that others must adopt this value that we’ve come to over a long history of our own, it really creates obstacles to our ability to advance our national security interests, our economic interests,” Tillerson said.

TILLERSON’S WORLD TOUR

Tillerson gave a tour of U.S. priorities around the world, including in East Asia, Russia, Africa, and the Western Hemisphere, omitting Europe.

With regard to North Korea’s nuclear program, Tillerson said the administration is willing to use so-called secondary sanctions to target foreign companies that continue to do business with Pyongyang in contravention of United Nations sanctions.

The pressure campaign on North Korea is “at about dial setting 5 or 6 right now,” Tillerson said.

On China, Tillerson said the United States has a “tremendous opportunity” to define its relationship with the superpower for the next several decades, and that he sensed great interest by the Chinese leadership to do that as well.

He and Defense Secretary Jim Mattis will chair a dialogue with their Chinese counterparts in June, in addition to a dialogue focused on economics and trade and led by Treasury Secretary Steven Mnuchin and Commerce Secretary Wilbur Ross.

Tillerson said he had told Russian President Vladimir Putin during his visit to Moscow last month that U.S.-Russia relations were at their lowest point since the Cold War.

“He did not disagree,” Tillerson said. “He shrugged his shoulders and nodded in agreement.”

But in remarks lasting nearly 40 minutes, Tillerson did not address the administration’s proposed 28 percent budget cut for U.S. diplomacy and foreign aid, which would reduce funding for the United Nations, climate change and cultural exchange programs. That proposal has made many American diplomats and aid workers anxious.

The Trump administration also has not named candidates for the vast majority of State Department positions requiring Senate confirmation, and many are being filled by career diplomats in “acting” positions. Tillerson began his remarks by thanking those officials, to applause from the crowd.

One veteran official who watched the speech criticized Tillerson’s use of the “America First” slogan. The phrase was used in the 1930s by isolationists who sought to keep the United States out of World War Two.

“The fact that they still use ‘America First’ shows they know nothing about history, and what’s worse is they don’t care.

“It’s offensive,” said the official, who requested anonymity.

Tillerson’s remarks followed an invitation to State Department and U.S. Agency for International Development employees this week to participate in an online survey to help identify “efficiency improvements,” in line with a March directive from Trump to “reorganize governmental functions and eliminate unnecessary agencies.” In his speech, the secretary urged employees to fill out the survey and give input on how to reform the agency.

Tillerson said the State Department, like many institutions, was built for the Cold War era.

He said he recognized that deep change to the State Department “is really stressful for a lot of people” and said the administration has “no preconceived notions on the outcome” of a review.

One State Department official faulted Tillerson for not talking in detail about the budget cuts, as well as for not taking questions from employees.

Previous secretaries of state, including Colin Powell, Condoleezza Rice and Hillary Clinton, held question-and-answer sessions with State Department employees within weeks of taking office.

“They wanted to make this look like he was talking to us, but it was more about the appearance than any substance,” said the official, speaking on the condition of anonymity.

Two other State Department officials, however, spoke highly of Tillerson’s remarks, saying it was early to expect him to take questions from the rank and file and saying he provided guidance both on foreign policy and on the challenge of reorganizing the department.

“I can understand folks wanting more details. I just don’t think we are in a place where he can provide more details,” said one of these officials about the expected State Department budget cuts. “My big takeaway was put on your big-girl britches, and when you look back you will feel like you were part of making this reform happen.”

(Additonal reporting by Arshad Mohammad, Jonathan Landay and John Walcott; Editing by Jonathan Oatis)