Tag Archives: Donald Trump

Republicans see tax reform complicated by Trump deal with Democrats

FILE PHOTO: President Trump meets with Senate Majority Leader Mitch McConnell, Senate Democratic Leader Chuck Schumer, House Minority Leader Nancy Pelosi and other congressional leaders in the Oval Office of the White House. REUTERS/Kevin Lamarque

By David Morgan and Susan Cornwell

WASHINGTON (Reuters) – U.S. Republican party lawmakers warned on Friday that President Donald Trump’s legislative deal with Democrats to help hurricane victims and keep the government running for another three months could complicate his next big priority – tax reform.

Trump’s sudden shift in strategy hands a clear victory to Senate Democratic leader Chuck Schumer and House Democratic leader Nancy Pelosi and that could slow the Republicans’ legislative agenda, they said.

“This kind of creates complications relative to tax reform,” said Representative Ryan Costello from Pennsylvania. “It seems to me that there’s an element of unpredictability from one issue to the next and this week is sort of a reflection of that.”

“There was a lot of work going into how this was going to take shape in September. And that was entirely undermined … seemingly very spontaneously.”

Following Trump’s deal with Democratic leaders, the House of Representatives on Friday approved legislation that provides $15.25 billion in emergency disaster aid for the victims of Hurricane Harvey, which battered coastal areas of Texas and Louisiana last week, and Hurricane Irma, which is expected to pound Florida in coming days.

Already approved by the Senate on Thursday, the deal also raises the U.S. government’s debt ceiling and allows it to continue financing federal spending programs until Dec. 8, the new deadline for a deal on both issues.

But some Republicans fear the Democrats will be able to use their negotiating clout in early December to resist changes on key tax issues, especially the corporate tax rate, which Trump wants to cut from 35 percent to 15 percent.

Republican Senator Ben Sasse said the experience of watching Trump empower Democrats had been “embarrassing” for a Republican-controlled Congress and that the deal made Schumer “the most powerful man in America.”

Sasse was one of 17 Senate Republicans who voted against the deal on Thursday. In the House, all 90 “no” votes came from Republicans but the deal passed comfortably with 183 Democrats and 133 Republicans in favor.

The White House said Trump’s shift in strategy this week clears away complicated issues like the debt ceiling and government funding, both of which had to be resolved in September, so Congress can concentrate more fully on tax reform, which Republicans want to complete by the end of the year.

After the failure of Republican efforts to overturn former President Barack Obama’s Affordable Care Act in July, Trump and lawmakers need a legislative victory to shore up their hopes of maintaining Republican majorities in next year’s midterm elections.

FRUSTRATION

Some House Republicans are already frustrated by a lack of details on tax reform from the administration. They hope to see more as soon as next week, though some are skeptical.

“My expectations are low. I think if they had something big they’d be floating elements of it now,” said Representative Darrell Issa.

How House Republicans respond to the tax plan will help determine the challenges they may face passing a fiscal year 2018 budget resolution that is critical to the Republican strategy for tax reform.

The budget contains a procedural rule that would allow Republicans to enact tax legislation with a simple majority in the Senate, which they control by a 52-48 margin.

Republican aides said House leaders had expected to bring the budget to the floor next week, but the document now needs changes to include government revenue projections that take into account current tax policy and the failure to repeal Obamacare, aides say.

Members of the conservative House Freedom Caucus, a formidable bloc in the House, have said they will not support the budget until they see the tax reform plan and want the resolution to contain more cuts to federal spending than the $203 billion over a decade that it already contains.

It was not clear whether the budget resolution could now suffer from conservative anger over Friday’s vote. Many conservatives have long called for lawmakers to couple any measures that raise the U.S. debt ceiling with reforms to cut spending.

The deal that passed on Friday did the opposite by attaching an increase in the debt ceiling to more spending to keep the government open, as well as adding money for hurricane relief without making any spending cuts elsewhere.

“I love President Trump and I’m with him probably 90 or 95 percent of the time. But I don’t think it’s appropriate to raise the debt ceiling with a $19 trillion public debt and not have any effort to change the way we spend money here in Washington,” said Joe Barton, a House Freedom Caucus member.

Mark Meadows, who chairs the House Freedom Caucus, said he did not feel betrayed by Trump and that the legislation was a “unique situation” brought about by the massive storm damage in Texas and Louisiana.

“Because of hurricane relief, there wasn’t a whole lot of options,” Meadows said on MSNBC. But, he added: “Our grassroots are very confused.”

(Reporting by David Morgan and Susan Cornwell; Editing by Kieran Murray)

U.S. appeals court rejects Trump’s bid to bar most refugees

FILE PHOTO - An Iceland Air flight crew arrives on the day that U.S. President Donald Trump's limited travel ban, approved by the U.S. Supreme Court, goes into effect, at Logan Airport in Boston, Massachusetts, U.S., June 29, 2017. REUTERS/Brian Snyder

By Mica Rosenberg and Jonathan Stempel

NEW YORK (Reuters) – A U.S. appeals court on Thursday rejected the Trump administration’s effort to temporarily bar most refugees from entering the country, ruling that those who have relationships with a resettlement agency should be exempt from an executive order banning refugees.

A three-judge 9th U.S. Circuit Court of Appeals panel also ruled that grandparents, aunts, uncles and cousins of legal U.S. residents should be exempted from President Donald Trump’s order, which banned travelers from six Muslim-majority countries.

The ruling is the latest legal blow to the President’s sweeping executive order barring travelers from Iran, Syria, Libya, Somalia, Sudan and Yemen for 90 days, which the Republican president said was necessary for national security.

The Justices said that the government did not persuasively explain why the travel ban should be enforced against close relatives of people from the six countries or refugees with guarantees from resettlement agencies. The 3-0 ruling takes effect in five days.

The U.S. Supreme Court ruled in June that Trump’s ban could be implemented on a limited basis, but should not be applied to people with “bona fide” relationships to people or entities in the United States.

The government took a narrow view of that interpretation, which the state of Hawaii challenged in court. A lower court judge sided with Hawaii, and the 9th Circuit judges upheld that view.

“It is hard to see how a grandparent, grandchild, aunt, uncle, niece, nephew, sibling-in-law, or cousin can be considered to have no bona fide relationship with their relative in the United States,” the court said.

The court also rejected the administration’s argument that the written assurances provided by resettlement agencies obligating them to provide services for specific refugees is not a bona fide relationship.

The agencies’ advance preparation and expenditure of resources for each refugee “supports the district court’s determination that a bona fide relationship with the refugee exists,” the decision said.

Trump’s first version of the executive order, signed in January, sparked protests and chaos at airports around the country and the world before it was blocked by courts. The administration replaced that version of the ban with a new order in March in response to the legal challenges.

A Department of Justice spokeswoman said: “The Supreme Court has stepped in to correct these lower courts before, and we will now return to the Supreme Court to vindicate the Executive Branch’s duty to protect the Nation.”

Hawaii’s Attorney General Douglas Chin said the ruling “keeps families together. It gives vetted refugees a second chance. The Trump administration keeps taking actions with no legal basis. We will keep fighting back.”

Refugee organizations cheered Thursday’s decision, saying it will give relief to people fleeing violence who were caught in limbo after the ban.

The broader question of whether the revised travel ban discriminates against Muslims in violation of the U.S. Constitution will be considered by the U.S. Supreme Court in October.

(Reporting by Mica Rosenberg and Jonathan Stempel in New York; Additional reporting by Andrew Chung and Lawrence Hurley in Washington; editing by Sue Horton and Grant McCool)

States file lawsuit challenging Trump decision on Dreamers

New York Attorney General Eric T. Schneiderman announces the filing of a multistate lawsuit to protect Deferred Action for Childhood Arrivals (DACA) recipients at a news conference at John Jay College in New York City, U.S., September 6, 2017. REUTERS/Joe Penney

By Mica Rosenberg

NEW YORK (Reuters) – Fifteen states and the District of Columbia filed a lawsuit on Wednesday challenging President Donald Trump’s decision to end protections and benefits for young people who were brought into the United States illegally as children.

The multistate lawsuit filed by a group of Democratic attorneys general on Wednesday to protect beneficiaries of the Deferred Action for Childhood Arrivals program argues their state economies will be hurt if residents lose their status.

The lawsuit seeks to block Trump’s decision and maintain DACA.

The lawsuit claims Trump’s decision was “motivated, at least in part, by a discriminatory motive” against Mexicans, who are the largest beneficiary of the program. It points to his statements from the 2016 presidential campaign.

The attorneys general also argue the government has not guaranteed DACA recipients that their application information will not be used “for purposes of immigration enforcement, including identifying, apprehending, detaining, or deporting non-citizens.”

New York’s Attorney General Eric Schneiderman took the lead filing the case in the Eastern District of New York. He said that 42,000 New Yorkers participate in DACA, and the end of the program will be “devastating” for them and would cause “huge economic harm” to the state.

In commenting on the suit, the U.S. Department of Justice noted that DACA was implemented under an executive order by former President Barack Obama, not through congressional action.

“While the plaintiffs in today’s lawsuits may believe that an arbitrary circumvention of Congress is lawful, the Department of Justice looks forward to defending this Administration’s position,” spokesman Devin M. O’Malley said.

Trump’s decision on Tuesday to end the five-year-old program instituted by former President Barack Obama plunged almost 800,000 young people, known as “Dreamers,” into uncertainty. The move drew criticism from business and religious leaders, mayors, governors, Democratic lawmakers, unions and civil liberties advocates.

Trump, who delayed the end of the program until March 5, shifted responsibility to a Congress controlled by his fellow Republicans, saying it was now up to lawmakers to pass immigration legislation that could address the fate of those protected by DACA.

But the governor of Washington, whose state joined the lawsuit, criticized Trump for distancing himself from a final decision on the program.

Trump said Tuesday he still has “great heart” for the dreamers.

“The president has tried to shirk responsibility for this, but let’s be clear, it is his hand on the knife in these people’s backs,” said Washington Governor Jay Inslee at a press conference announcing the suit. “He can’t just put it on Congress. It is his responsibility to fix this.”

Other claims in the lawsuit are based on the Administrative Procedure Act, arguing the White House did not follow the correct process in changing the policy.

Legal experts have said that court challenges to Trump’s actions could face an uphill battle, since the president typically has wide authority when it comes to implementing immigration policy.

(Reporting by Mica Rosenberg in New York; Additional reporting by Lawrence Hurley and Doina Chiacu in Washington and Nate Raymond in Boston; Editing by Cynthia Osterman)

Trump says U.S. not ‘putting up with’ North Korea’s actions

Trump says U.S. not 'putting up with' North Korea's actions

By Jeff Mason and Michael Martina

WASHINGTON/BEIJING (Reuters) – President Donald Trump warned on Wednesday that the United States would no longer tolerate North Korea’s actions but said the use of military force against Pyongyang will not be his “first choice.”

His comment appeared to be in line with classified briefings to Congress in which Trump’s top national security aides – Defense Secretary Jim Mattis, Secretary of State Rex Tillerson and Dan Coats, the director of national intelligence – stressed the search for a diplomatic solution to the crisis, lawmakers said.

A senior administration official, meanwhile, said that the White House has set aside for now consideration of exiting a free trade pact with South Korea, a move being contemplated by Trump that could have complicated relations with Seoul.

In a flurry of phone calls with world leaders days after North Korea’s sixth and most powerful nuclear test, Trump and Chinese President Xi Jinping committed to “take further action with the goal of achieving the denuclearization of the Korean peninsula,” the White House said.

“President Xi would like to do something. We’ll see whether or not he can do it. But we will not be putting up with what’s happening in North Korea,” Trump told reporters, though he offered no specifics.

“I believe that President Xi agrees with me 100 percent,” he added.

Asked whether he was considering a military response to North Korea, Trump said: “Certainly, that’s not our first choice, but we will see what happens.”

Xi, who has been under pressure from Trump to do more to help curb North Korea’s nuclear and missile programs, told the U.S. president during their 45-minute call that the North Korean issue must be resolved through “dialogue and consultation.”

The focus on negotiations by China, North Korea’s main trading partner, contrasted with Trump’s assertions over the last few days that now was not the time for talks with North Korea while pressing instead for increased international pressure on Pyongyang.

The United States and South Korea have asked the United Nations to consider tough new sanctions on North Korea after its nuclear test on Sunday that Pyongyang said was an advanced hydrogen bomb.

Late on Wednesday, U.S. Treasury Secretary Steve Mnuchin indicated that if the U.N. Security Council fails to approve sufficiently strong measures, Trump could authorize him to impose sanctions on any country or entity that trades with North Korea.

“We believe that we need to economically cut off North Korea,” Mnuchin told reporters aboard Air Force One as it flew back from North Dakota, where Trump gave a speech on tax reform. “I have an executive order prepared. It’s ready to go to the president. It will authorize me to . . . put sanctions on anybody that does trade with North Korea.”

Mnuchin said that Trump would consider the order “at the appropriate time once he gives the U.N. time to act.”

He provided no further details, including whether Trump would consider slapping sanctions on China, North Korea’s largest trade partner.

Russian President Vladimir Putin insisted on Wednesday that resolving the North Korean nuclear crisis was impossible with sanctions and pressure alone.

Putin met South Korea’s Moon Jae-in on the sidelines of an economic summit in the eastern Russian city of Vladivostok amid mounting international concern that their neighbor plans more weapons tests, including possibly a long-range missile launch before a weekend anniversary.

Putin echoed other world leaders in denouncing North Korea’s latest nuclear bomb test on Sunday, saying Russia did not recognize its nuclear status.

“Pyongyang’s missile and nuclear program is a crude violation of U.N. Security Council resolutions, undermines the non-proliferation regime and creates a threat to the security of northeastern Asia,” Putin said at a news conference.

“At the same time, it is clear that it is impossible to resolve the problem of the Korean peninsula only by sanctions and pressure,” he said.

No headway could be made without political and diplomatic tools, Putin said.

MOON SEEKS SANCTIONS

Moon, who took office this year advocating a policy of pursuing engagement with North Korea, has come under increasing pressure to take a harder line.

He has asked the United Nations to consider tough new sanctions after North Korea’s latest nuclear test.

The United States wants the Security Council to impose an oil embargo on North Korea, ban the country’s exports of textiles and the hiring of North Korean laborers abroad and subject leader Kim Jong Un to an asset freeze and travel ban, according to a draft resolution seen by Reuters on Wednesday.

Diplomats say the U.N. Security Council could also consider barring the country’s airline.

“I ask Russia to actively cooperate as this time it is inevitable that North Korea’s oil supply should be cut at the least,” Moon told Putin, according to a readout from a South Korean official.

Putin said North Korea would not give up its nuclear program no matter how tough the sanctions.

“We too, are against North Korea developing its nuclear capabilities and condemn it, but it is worrying cutting the oil pipeline will harm the regular people, like in hospitals,” Putin said, according to the South Korean presidential official.

Russia’s exports of crude oil to North Korea were tiny at about 40,000 tonnes a year, Putin said. By comparison, China provides it with about 520,000 tonnes of crude a year, according to industry sources.

Last year, China shipped just over 96,000 tonnes of gasoline and almost 45,000 tonnes of diesel to North Korea, where it is used across the economy, from fishermen and farmers to truckers and the military.

Trump and British Prime Minister Theresa May agreed in a telephone call on Tuesday that China must do more to persuade North Korea to cease its missile tests, a spokesman for May said.

‘FREEZE FOR FREEZE’

Sanctions have done little to stop North Korea boosting its nuclear and missile capacity as it faces off with Trump, who has vowed to stop it from being able to hit the U.S. mainland with a nuclear weapon.

China and Russia have advocated a “freeze for freeze” plan, where the United States and South Korea stop major military exercises in exchange for North Korea halting its weapons programs, but neither side is willing to budge.

North Korea says it needs to develop its weapons to defend itself against what it sees as U.S. aggression.

South Korea and the United States are technically still at war with North Korea after the 1950-53 Korean conflict ended with a truce, not a peace treaty.

China objects to both the military drills and the deployment in South Korea of an advanced U.S. missile defense system that has a radar that can see deep into Chinese territory.

South Korea’s Defence Ministry said the four remaining batteries of the Terminal High Altitude Area Defense (THAAD) system would be deployed on a golf course in the south of the country on Thursday. Two THAAD batteries have already been installed.

For a graphic on nuclear North Korea, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010031V7472/index.html

(Additional reporting by Denis Pinchuk in VLADIVOSTOK, Soyoung Kim in SEOUL, Stephanie Nebehay in GENEVA, William Mallard and Kaori Kaneko in TOKYO, Christian Shepherd and Michael Martina in BEIJING, and Jonathan Landay and Jim Oliphant in WASHINGTON; Writing by Matt Spetalnick and Lincoln Feast; Editing by James Dalgleish)

Trump ends ‘Dreamer’ immigration program, places onus on Congress

Demonstrators protest in front of the White House after the Trump administration today scrapped the Deferred Action for Childhood Arrivals (DACA), a program that protects from deportation almost 800,000 young men and women who were brought into the U.S. illegally as children, in Washington, U.S., September 5, 2017. REUTERS/Kevin Lamarque

By Steve Holland and Yeganeh Torbati

WASHINGTON (Reuters) – President Donald Trump on Tuesday scrapped an Obama-era program that protects from deportation immigrants brought illegally into the United States as children, delaying implementation until March and giving a gridlocked Congress six months to decide the fate of almost 800,000 young people.

As the so-called Dreamers who have benefited from the five-year-old program were plunged into uncertainty, business and religious leaders, mayors, governors, Democratic lawmakers, unions, civil liberties advocates and former Democratic President Barack Obama all condemned Trump’s move.

The action was announced not by Trump but by Jeff Sessions, his attorney general, who called the Deferred Action for Childhood Arrivals (DACA) program an unconstitutional overreach by Obama. There will be an “orderly, lawful wind-down,” Sessions said.

Trump later issued a written statement saying that “I do not favor punishing children, most of whom are now adults, for the actions of their parents. But we must also recognize that we are (a) nation of opportunity because we are a nation of laws.”

He denounced Obama’s program as an “amnesty-first approach” toward illegal immigrants and pressed his nationalist “America First” message, saying that despite concerns voiced by his critics about the fate of the Dreamers, “Above all else, we must remember that young Americans have dreams too.”

On Tuesday evening, the Republican president tweeted that lawmakers now had six months to “legalize DACA” and that if they did not, he would “revisit this issue!”

Obama issued his own statement calling Trump’s action a political decision, defending DACA’s legality and urging Congress to protect Dreamers.

“This is about young people who grew up in America – kids who study in our schools, young adults who are starting careers, patriots who pledge allegiance to our flag. These Dreamers are Americans in their hearts, in their minds, in every single way but one: on paper,” Obama said.

The Trump administration said nobody covered by the program, which provided work permits in addition to deportation protection and primarily benefits Hispanics, would be affected before March 5. Most people covered by DACA are in their 20s.

Trump shifted responsibility to a Congress controlled by his fellow Republicans and said it was now up to lawmakers to pass immigration legislation that could address the fate of those protected by DACA who would be in danger of deportation.

Trump and Sessions offered no details of the type of legislation they would want to see, and Trump’s spokeswoman offered only a broad outline.

“I have a love for these people (DACA recipients), and hopefully now Congress will be able to help them and do it properly,” Trump later told reporters at the White House, adding: “I think it’s going to work out very well.”

Since Trump took office in January, Congress has been unable to pass any major legislation, most notably failing on a healthcare overhaul, and lawmakers have been bitterly divided over immigration in the past.

“President Trump’s decision to end DACA is a deeply shameful act of political cowardice and a despicable assault on innocent young people in communities across America,” said Nancy Pelosi, the top Democrat in the House of Representatives.

The Democratic attorney general of Massachusetts, Maura Healey, said a coalition of states planned to file suit in the coming days to defend DACA, and one advocacy group announced its own legal action.

“This is a sad day for our country,” added Facebook Inc <FB.O> founder Mark Zuckerberg. “The decision to end DACA is not just wrong. It is particularly cruel to offer young people the American Dream, encourage them to come out of the shadows and trust our government, and then punish them for it.”

Brad Smith, president of Microsoft Corp <MSFT.O>, urged Congress to “put the humanitarian needs of these 800,000 people on the legislative calendar” before tax-cut legislation sought by Trump.

Nearly 800,000 people stepped forward, admitted their illegal immigrant status and provided personal information to the government to apply for the DACA program. They now face the prospect of being deported starting in March. Dreamers are a fraction of the roughly 11 million illegal immigrants in the United States.

“The cancellation of the DACA program is reprehensible,” the U.S. Conference of Catholic Bishops said in a statement.

But White House spokeswoman Sarah Sanders said: “It’s not cold hearted for the president to uphold the law.”

Trump said DACA recipients would not be deportation priorities unless they were criminals or gang members.

Ending DACA was the latest action by Trump sure to alienate Hispanic Americans, a growing segment of the U.S. population and an increasingly important voting bloc. Most of the immigrants protected by DACA came from Mexico and other Latin American countries.

The Mexican government said it “profoundly laments” Trump’s decision to end DACA and pledged to strengthen efforts to guarantee consular protections for affected Mexican citizens.

THREAT OF LAWSUITS

The Homeland Security Department will provide a limited window – until Oct. 5 – for some DACA recipients whose work permits expire before March 5 to apply to renew those permits. In addition, the department will adjudicate any new DACA requests, or renewal requests, accepted as of Tuesday. That would mean that some beneficiaries of DACA could work legally in the country through 2019.

The administration said the president’s decision was prompted in part by a threat from several Republican state attorneys general, led by Texas, to file legal challenges in federal court if Trump did not act to end DACA. Late on Tuesday, Texas state Attorney General Ken Paxton said he withdrew the 10-state suit after Trump’s decision.

House Speaker Paul Ryan called on lawmakers to find a long-term solution for the young people affected by the reversal of the program. Republican Senate Majority Leader Mitch McConnell said Congress “will continue working on securing our border and ensuring a lawful system of immigration that works.”

Republican Senator Lindsey Graham said there could be a winning formula by coupling legislation to provide legal status for Dreamers with additional border security measures, although he said support was lacking in Congress for Trump’s proposed border wall.

Trump made a crackdown on illegal immigrants a centerpiece of his 2016 election campaign, promising to deport every illegal immigrant.

The decision to end DACA is the latest action by Trump to erase key parts of his Democratic predecessor’s legacy.

That includes pulling the United States out of the Paris climate accord, abandoning a 12-nation Pacific trade deal, seeking to dismantle the Obamacare healthcare law, rolling back environmental protections, reversing parts of Obama’s opening to Cuba and removing protections for transgender people.

(Reporting by Steve Holland and Yeganeh Torbati; Additional reporting by Richard Cowan, Doina Chiacu, Mica Rosenberg, Makini Brice, Tim Ahmann, Lawrence Hurley, Jonathan Allen, Sarah N. Lynch, Dustin Volz and David Alexander; Writing by Will Dunham and Dustin Volz; Editing by Cynthia Osterman and Peter Cooney)

If Trump says Iran violating nuclear deal, does not mean U.S. withdrawal: Haley

U.S. Ambassador to the United Nations Nikki Haley speaks about the Iran nuclear deal at the American Enterprise Institute in Washington, U.S., September 5, 2017. REUTERS/Aaron P. Bernstein

WASHINGTON (Reuters) – If U.S. President Donald Trump tells Congress in October that Iran is not complying with a 2015 nuclear deal it brokered with world powers, that does not mean a U.S. withdrawal from the agreement, U.S. envoy to the U.N. Nikki Haley said on Tuesday.

Under U.S. law, the State Department must notify Congress every 90 days of Iran’s compliance with the nuclear deal. The next deadline is October, and Trump has said he thinks by then the United States will declare Iran to be non-compliant.

“If the President chooses not to certify Iranian compliance, that does not mean the United States is withdrawing from the JCPOA (the nuclear deal),” Haley told the American Enterprise Institute think tank in Washington.

“Should he decide to decertify he has grounds to stand on,” said Haley, adding that she did not know what Trump would decide. “We will stay in a deal as long as it protects the security of the United States.”

Most U.N. and Western sanctions were lifted 18 months ago under the nuclear deal. Iran is still subject to a U.N. arms embargo and other restrictions, which are not technically part of the deal.

In April, Trump ordered a review of whether a suspension of sanctions on Iran related to the nuclear deal, negotiated under President Barack Obama, was in the U.S. national security interest. He has called it “the worst deal ever negotiated.”

Iranian President Hassan Rouhani warned last month that Iran could abandon the nuclear agreement “within hours” if the United States imposes any more new unilateral sanctions.

“(The nuclear deal) is a very flawed and very limited agreement … Iran has been caught in multiple violations over the past year and a half,” Haley said. “The Iranian nuclear deal was designed to be too big to fail.”

The U.S. review of its policy toward Iran is also looking at Tehran’s behavior in the Middle East, which Washington has said undermines U.S. interests in Syria, Iraq, Yemen and Lebanon.

“Iran’s leaders want to use the nuclear deal to hold the world hostage to its bad behavior,” she said.

Haley traveled to Vienna last month to meet International Atomic Energy Agency (IAEA) officials for what she described as a fact-finding mission as part of Trump’s review. The IAEA polices restrictions the deal placed on Iran’s nuclear activities and reports quarterly.

While Haley asked if the IAEA planned to inspect Iranian military sites to verify Tehran’s compliance, something Tehran has said they would not allow, she said on Tuesday: “We never ask the IAEA to do anything.”

(Reporting by Michelle Nichols; Editing by James Dalgleish)

U.S., South Korea agree to revise missile treaty in face of North Korean threats

The intercontinental ballistic missile Hwasong-14, in this photo released July 4, 2017.

SEOUL (Reuters) – U.S. President Donald Trump agreed with South Korean President Moon Jae-in to revise a joint treaty capping the development of the South’s ballistic missiles, Moon’s office said on Saturday, amid a standoff over North Korea’s missile and nuclear tests.

Trump also gave “conceptual” approval to the purchase by the South of billions of dollars of U.S. military hardware, the White House said.

The South wants to raise the missile cap to boost its defenses against the reclusive North, which is pursuing missile and nuclear weapons programs in defiance of international warnings and UN sanctions.

“The two leaders agreed to the principle of revising the missile guideline to a level desired by South Korea, sharing the view that it was necessary to strengthen South Korea’s defense capabilities in response to North Korea’s provocations and threats,” South Korea’s presidential Blue House said.

Impoverished North Korea and the rich, democratic South are technically still at war because their 1950-53 conflict ended in a truce, not a peace treaty. The North regularly threatens to destroy the South and its main ally, the United States.

North Korea sharply raised regional tension this week with the launch of its Hwasong-12 intermediate-range ballistic missile that flew over Japan and landed in the Pacific.

That followed the test launch of two long-range ballistic missiles in July in a sharply lofted trajectory that demonstrated a potential range of 10,000 km (6,000 miles) or more that would put many parts of the U.S. mainland within striking distance.

North Korea has been working to develop a nuclear-tipped missile capable of hitting the United States and has recently threatened to land missiles near the U.S. Pacific territory of Guam.

South Korea’s development of its ballistic missiles is limited to range of 800 km (500 miles) and payload weight of 500 kg (1,100 pounds) under a bilateral treaty revised in 2012.

South Korea has said it wants to revise the agreement to increase the cap on the payload.

The two countries agreed to the cap as part of a commitment to a voluntary international arms-control pact known as the Missile Technology Control Regime, aimed at limiting the proliferation missiles and nuclear weapons.

The two leaders pledged to continue to apply strong diplomatic and economic pressure on North Korea and to make all necessary preparations to defend against the growing threat by the North, the White House said.

The White House did not mention the voluntary bilateral agreement but said the two leaders agreed to strengthen their defense cooperation and South Korea’s defense capabilities.

Trump “provided his conceptual approval of planned purchases by South Korea of billions of dollars in American military equipment”, the White House said.

Trump, who has warned that the U.S. military is “locked and loaded” in case of further North Korean provocation, reacted angrily to the latest missile test, declaring on Twitter that “talking is not the answer” to resolving the crisis.

North Korea defends its weapons programs as necessary to counter perceived U.S. aggression, such as recent air maneuvers with South Korean and Japanese jets.

(Reporting by Jack Kim in Seoul and Eric Beech in Washington; Editing by Nick Macfie)

Russia, digesting U.S. diplomatic retaliation, pledges ‘harsh’ response

The entrance to the building of the Consulate General of Russia is shown in San Francisco, California, U.S., August 31, 2017. REUTERS/Stephen Lam

By Andrew Osborn

MOSCOW (Reuters) – Russia said on Friday it would respond harshly to any U.S. measures designed to hurt it, a day after the United States told Moscow to close its San Francisco consulate and buildings in Washington and New York.

The warning, from Foreign Minister Sergei Lavrov, came as Russia said it was weighing a response to the U.S. move that will force it to shutter two trade missions in the United States as well as the San Francisco consulate by Sept. 2.

“We’ll react as soon as we finish our analysis,” Lavrov told students in Moscow. “We will respond harshly to things that damage us.”

Separately, a top Kremlin aide complained the U.S. demarche pushed bilateral ties further into a blind alley and fuelled a spiral of tit-for-tat retaliatory measures.

U.S. President Donald Trump took office in January, saying he wanted to improve U.S.-Russia ties which were at a post-Cold War low. But since then, ties have frayed further after U.S. intelligence officials said Russia had meddled in the presidential election, something Moscow denies.

Trump, himself battling allegations his associates colluded with Russia, grudgingly signed new sanctions on Moscow into law this month which had been drawn up by Congress.

When it became clear those measures would become law, Moscow ordered the United States to cut its diplomatic and technical staff in Russia by more than half, to 455 people.

Lavrov hinted on Friday that Russia might look at ordering further reductions in U.S. embassy staff, suggesting Moscow had been generous last time by allowing Washington to keep “more than 150” extra people.

He said Russia had cut the U.S. numbers to tally with the number of Russian diplomats in the United States, but that Moscow had generously included more than 150 Russian staff who work at Russia’s representation office at the United Nations.

Lavrov said Moscow still hoped for better relations and blamed Trump’s political foes for the deteriorating situation.

“I want to say that this whole story with exchanging tit-for-tat sanctions was not started by us,” Lavrov said.

“It was started by the Obama administration to undermine U.S.-Russia relations and to not allow Trump to advance constructive ideas or fulfil his pre-election pledges.”

Barack Obama, then outgoing president, expelled 35 suspected Russian spies in December and seized two Russian diplomatic compounds. President Vladimir Putin paused before responding, saying he would wait to see how Trump handled Russia.

“We thought this administration could exercise common sense, but unfortunately the Russophobes in Congress are not allowing it to,” said Lavrov, who complained that the United States had only given Moscow 48 hours to comply with its latest demands.

(Additional reporting by Denis Pinchuk; Editing by Robin Pomeroy)

Trump to visit victims of unprecedented floods in Texas and Louisiana

Trump to visit victims of unprecedented floods in Texas and Louisiana

By Emily Flitter and Daniel Trotta

HOUSTON (Reuters) – U.s. President Donald Trump travels to Houston and Lake Charles, Louisiana on Saturday to meet victims of catastrophic storm Harvey, one of the worst natural disasters in U.S. history that is presenting a test of his administration.

While Trump visits, attention will also be focused on Minute Maid Park, where baseball’s Houston Astros play their first home games since Harvey devastated the fourth-most populous U.S. city. The Saturday doubleheader with the New York Mets is expected to be wrought with emotion and punctuated with moments to honor the dozens who died as a result of Harvey.

The storm, one of the costliest to hit the United States, has displaced more than 1 million people, with 50 feared dead from flooding that paralyzed Houston, swelled river levels to record highs and knocked out the drinking water supply in Beaumont, Texas, a city of 120,000 people.

Hurricane Harvey came ashore last Friday as the strongest storm to hit Texas in more than 50 years. Much of the damage took place in the Houston metropolitan area, which has an economy about the same size as Argentina’s.

For graphic on hurricane costs, click http://tmsnrt.rs/2vGkbHS

For graphic on storms in the North Atlantic, click http://tmsnrt.rs/2gcckz5

Seventy percent of Harris County, which encompasses Houston, at one point was covered with 18 inches (45 cm) or more of water, county officials said.

Trump first visited the Gulf region on Tuesday, but stayed clear of the disaster zone, saying he did not want to hamper rescue efforts. Instead, he met with state and local leaders, and first responders.

He was criticized, however, for not meeting with victims of the worst storm to hit Texas in 50 years, and for largely focusing on the logistics of the government response rather than the suffering of residents.

The White House said Trump will first travel to Houston to meet with flood survivors and volunteers who assisted in relief efforts and then move on to Lake Charles, another area hammered by the storm.

The Trump administration in a letter to Congress asked for a $7.85 billion appropriation for response and initial recovery efforts. White House homeland security adviser Tom Bossert has said aid funding requests would come in stages as more became known about the impact of the storm.

Texas Governor Greg Abbott has said that his state may need more than $125 billion.

The storm, which lingered around the Gulf of Mexico Coast for days, dumped record amounts of rain and left devastation across more than 300 miles (480 km) of the state’s coast.

As water receded, many returned to survey the damage and left hundreds of thousands wondering how they can recover.

In Orange, Texas, about 125 miles (200 kms) east of Houston, Sam Dougharty, 36, returned on Friday where waist-high water remained in his backyard and barn.

His family’s house smelled like raw sewage and was still flooded to the ankles. A calf and a heifer from their herd of 15 were dead. The chickens were sagging on the top two roosts of their coop.

“We never had water here. This is family land. My aunt’s owned it for 40 years and never had water here,” he said.

Members of Army National Guard conduct high water rescue operations in the aftermath of Tropical Storm Harvey in Wharton, Texas, U.S. in this August 31, 2017 handout photo. Senior Master Sgt. Robert Shelley/Air National Guard/Handout via REUTERS

Members of Army National Guard conduct high water rescue operations in the aftermath of Tropical Storm Harvey in Wharton, Texas, U.S. in this August 31, 2017 handout photo. Senior Master Sgt. Robert Shelley/Air National Guard/Handout via REUTERS

FROM THE SHELTER TO THE STADIUM

Harvey came on the 12th anniversary of Hurricane Katrina, which killed about 1,800 around New Orleans. Then-U.S. President George W. Bush’s administration was roundly criticized for its botched early response to the storm.

Some of the tens of thousands of people forced into shelters by Harvey will attend the Astros game where Houston Mayor Sylvester Turner will throw out the first pitch and a moment of silence in planned for those who perished.

Sports have helped other cities rebound from catastrophe, such as when the New York Mets played the first baseball game in their damaged city 10 days after the attacks of Sept. 11, 2001, or when the New Orleans Saints returned to the Superdome in 2006 for football a year after Hurricane Katrina.

In the Harris County area of Clear Creek, the nearly 50 inches (127 cm) of rain that fell there equated to a once in a 40,000 year event, Jeff Lindner, meteorologist with the Harris County Flood Control District, said.

Some 440,000 Texans have already applied for federal financial disaster assistance, and some $79 million has been approved so far, Abbott said.

The storm shut about a fourth of U.S. refinery capacity, much of which is clustered along the Gulf Coast, and caused gasoline prices to spike to a two-year high ahead of the long Labor Day holiday weekend.

The national average for a gallon of regular gasoline has risen more than 17.5 cents since the storm struck, hitting $2.59 as of Saturday morning, motorists group AAA said.

Meanwhile a new storm, Irma, had strengthened on Friday into a Category 3 hurricane on the five-step Saffir-Simpson scale. It remained hundreds of miles from land but was forecast to possibly hit Puerto Rico, the Dominican Republic and Haiti by the middle of next week.

(Additional reporting by Richard Valdmanis, Ernest Scheyder, Ruthy Munoz, Peter Henderson and Andy Sullivan in Houston, Steve Holland in Washington, Julia Simon in New York, Jon Herskovitz in Austin, Texas, and Brendan O’Brien in Milwaukee; Writing by Jon Herskovitz and Dan Whitcomb; Editing by Jacqueline Wong)

Trump says ‘talking not the answer’ on North Korea, Mattis disagrees

A missile is launched during a long and medium-range ballistic rocket launch drill in this undated photo released by North Korea's Korean Central News Agency (KCNA) in Pyongyang on August 30, 2017. KCNA/via REUTERS

By Idrees Ali and Soyoung Kim

WASHINGTON/SEOUL (Reuters) – President Donald Trump on Wednesday said “talking is not the answer” to the tense standoff with North Korea over its nuclear missile development, but his defense chief swiftly asserted that the United States still has diplomatic options.

Trump’s comment, coming a day after Pyongyang fired a ballistic missile over Japan that drew U.N. and other international condemnation, renewed his tough rhetoric toward reclusive, nuclear-armed and increasingly isolated North Korea.

“The U.S. has been talking to North Korea, and paying them extortion money, for 25 years,” Trump wrote on Twitter. “Talking is not the answer!”

When asked by reporters just hours later if the United States was out of diplomatic solutions with North Korea amid rising tensions after a series of missile tests by Pyongyang, U.S. Defense Secretary Jim Mattis replied: “No.”

“We are never out of diplomatic solutions,” Mattis said before a meeting with his South Korean counterpart at the Pentagon. “We continue to work together, and the minister and I share a responsibility to provide for the protection of our nations, our populations and our interests.”

Trump, who has vowed not to let North Korea develop nuclear missiles that can hit the mainland United States, had said in a statement on Tuesday that “all options are on the table.”

North Korea said the launch of an intermediate-range ballistic missile (IRBM) on Tuesday was to counter U.S. and South Korean military drills and was a first step in military action in the Pacific to “containing” the U.S. island territory of Guam.

The 15-member U.N. Security Council condemned the firing of the missile over Japan as “outrageous,” and demanded that North Korea halt its weapons program. The U.S.-drafted statement, which did not threaten new sanctions on North Korea, urged all nations to implement U.N. sanctions and said it was of “vital importance” that Pyongyang take immediate, concrete actions to reduce tensions.

Trump’s mention of payments to North Korea appeared to be a reference to previous U.S. aid to the country.

A U.S. Congressional Research Service report said between 1995 and 2008, the United States provided North Korea with over $1.3 billion in assistance. Slightly more than 50 percent was for food and about 40 percent for energy assistance. The assistance was part of a nuclear deal that North Korea later violated.

Since early 2009, the United States has provided virtually no aid to North Korea, though periodically there have been discussions about resuming large-scale food aid.

The latest tweet by the Republican U.S. president drew criticism from some quarters in Washington. Democratic Senator Chris Murphy wrote on Twitter: “Bar is high, but this is perhaps the most dangerous, irresponsible tweet of his entire Presidency. Millions of lives at stake – not a game.”

North Korea’s leader, Kim Jong Un, ordered the launch to be conducted for the first time from its capital, Pyongyang, and said more exercises with the Pacific as the target were needed, the North’s KCNA news agency said on Wednesday.

“The current ballistic rocket launching drill like a real war is the first step of the military operation of the KPA in the Pacific and a meaningful prelude to containing Guam,” KCNA quoted Kim as saying. KPA stands for the Korean People’s Army.

Trump’s secretaries of defense and state have emphasized finding a diplomatic solution to North Korea’s nuclear ambitions. Earlier this month, Mattis told reporters the U.S. effort “is diplomatically led. It has diplomatic traction. It is gaining diplomatic results.”

Trump has offered divergent comments on North Korea in recent weeks. On Aug. 22, he tweeted that “I respect the fact that he is starting to respect us,” referring to Kim, and that maybe “something positive can come about.” On Aug. 8, Trump had threatened to unleash “fire and fury” against North Korea if it threatened the United States, and two days later delivered some more menacing words.

North Korea threatened to fire four missiles into the sea near Guam, home to a major U.S. military presence, after Trump’s “fire and fury” remark.

‘KEY MILESTONE’

The U.S. Defense Department’s Missile Defense Agency and the crew of the USS John Paul Jones conducted a “complex missile defense flight test” off Hawaii early on Wednesday, resulting in the intercept of a medium-range ballistic missile target, the agency said.

The agency’s director, Lieutenant General Sam Greaves, called the test “a key milestone” in giving U.S. Navy Aegis Ballistic Missile Defense ships an enhanced capability, but did not mention North Korea.

The United States and South Korea are technically still at war with North Korea because their 1950-53 conflict ended in a truce, not a peace treaty. North Korea routinely says it will never give up its weapons programs, saying they are necessary to counter perceived American hostility.

In Geneva, American disarmament ambassador Robert Wood, addressing the U.N.-sponsored Conference on Disarmament, called for “concerted action” by the international community to pressure North Korea into abandoning its banned nuclear and missile program by fully enforcing economic sanctions.

Washington has repeatedly urged China, North Korea’s main ally and trading partner, to do more to rein in Pyongyang.

Speaking during a visit to the Japanese city of Osaka, British Prime Minister Theresa May called on China to put more pressure on North Korea.

Asked about her comments, Chinese Foreign Ministry spokeswoman Hua Chunying said some “relevant sides” were only selectively carrying out the U.N. resolutions by pushing hard on sanctions yet neglecting to push for a return to talks.

She said this was not the attitude “responsible countries” should have when the “smell of gunpowder” remained strong over the Korean peninsula.

“When it comes to sanctions, they storm to the front but when it comes to pushing for peace they hide at the very back,” Hua told a daily news briefing.

North Korea has conducted dozens of ballistic missile tests under Kim in defiance of U.N. sanctions, but firing a projectile over mainland Japan was a rare and provocative move. Tuesday’s test was of the same Hwasong-12 missile Kim had threatened to use on Guam, but the test flight took it in another direction, over northern Japan’s Hokkaido island and into the sea.

For an interactive on North Korea’s missile capabilities, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010041L63FE/index.html

For a graphic on North Korean missile trajectories, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010050CG0RT/NORTHKOREA-MISSILES.png

For a graphic on Kim’s new act of defiance, click: http://fingfx.thomsonreuters.com/gfx/rngs/NORTHKOREA-MISSILES/010050KV1C3/index.html

(Additional reporting by Jack Kim in Seoul, and Philip Wen and Michael Martina in Beijing, Susan Heavey, Yeganeh Torbati and David Alexander in Washington, Kanishka Singh in Bengaluru and William James in Osaka, Japan; Writing by Will Dunham; Editing by Jeffrey Benkoe and Alistair Bell)