The Jim Bakker Show

U.S., South Korea to defend against ‘evolving’ North Korean threat

WASHINGTON/SEOUL (Reuters) – U.S. Defense Secretary James Mattis and his South Korean counterpart agreed during a phone call on Monday to strengthen their defense against “the evolving North Korean threat,” the Pentagon said, amid reports the North may be preparing a new missile test.

Mattis, who is to visit South Korea on Thursday, reaffirmed to South Korean Defense Minister Han Min-koo the U.S. commitment to defend the country and “provide extended deterrence using the full range of U.S. capabilities,” the Pentagon said in a statement.

The South Korean Defense Ministry said in a statement the two sides had agreed to deploy the Terminal High Altitude Area Defense (THAAD) system in South Korea as planned to defend against North Korea’s nuclear and ballistic capabilities.

China has objected to THAAD, saying it will destabilize the regional security balance, leading to calls from some South Korean opposition leaders to delay or cancel it.

Mattis’s visit to the region comes amid reports that the North may be readying to test a new ballistic missile in what could be an early challenge for of U.S. President Donald Trump’s administration.

The North also appears to have restarted operation of a reactor at its main Yongbyon nuclear facility that produces plutonium that can be used for its nuclear weapons program, according to a U.S. think tank.

North Korea has carried out a series of nuclear and missile tests in defiance of U.N sanctions. It conducted its fifth nuclear test in September. North and South are technically still at war because their 1950-53 conflict ended in a truce, not a peace treaty.

Mattis also met Jordan’s King Abdullah at the Pentagon and expressed his deep appreciation for Jordan’s contributions to the fight against Islamic State, the Pentagon statement said.

(Reporting by Idrees Ali and Ju-min Park in Seoul; Editing by Nick Macfie)

Clean-up begins at Dakota pipeline protest camp

Law enforcement officers monitor outskirts of protests for Dakota Access Pipeline

By Terray Sylvester

CANNON BALL, N.D. (Reuters) – Dump trucks and heavy machinery rolled into the protest camp near the site of the Dakota Access Pipeline on Monday, and crews began filling large dumpsters with garbage that has accumulated, much of it now buried under snow.

The clean-up marked cooperation among authorities and camp organizers. The decision to clean the site, where a few hundred protesters remain, was made on Sunday by state and local officials and members of the Standing Rock Sioux tribe.

Those involved said it was not an effort to destroy the camp, which sits on U.S. Army Corps of Engineers land, but a move to prevent waste contaminating water sources.

“I’m not going to run people’s camps over. I’m not going to take anyone’s property or do anything like that,” Hans Youngbird Bradley, a construction contractor from the Standing Rock Sioux tribe said during the meeting.

There are dozens of abandoned cars and structures as well as waste at the camp.

“It is paramount for public safety, and to prevent an environmental disaster, that the camps be cleared prior to a potential spring flood,” said North Dakota Governor Doug Burgum, a Republican who supports the completion of the pipeline, in a statement.

Land is being leased on the Standing Rock Reservation for protesters who wish to remain in the area.

Protesters rallied for months against plans to route the $3.8 billion pipeline beneath Lake Oahe near the Standing Rock Sioux reservation, saying it threatened water resources and sacred Native American sites.

At one point, nearly 10,000 people had flocked to the site. But the number dwindled to several hundred after the Standing Rock Sioux asked activists to leave when a permit to drill under the lake was denied in December.

President Donald Trump signed an executive order last week to speed up the completion of the project, dealing a blow to protesters.

(Writing by Timothy Mclaughlin in Chicago; Editing by Cynthia Osterman)

Syrian groups see more U.S. support for IS fight, plan new phase

By Tom Perry

BEIRUT (Reuters) – A U.S.-backed alliance of Syrian militias said on Tuesday it saw signs of increased U.S. support for their campaign against Islamic State with President Donald Trump in office, a shift that would heighten Turkish worries over Kurdish power in Syria.

A Kurdish military source told Reuters separately the next phase of a campaign by the U.S.-backed Syrian Democratic Forces (SDF) alliance — which includes the Kurdish YPG militia — aimed to cut the last remaining routes to Islamic State’s stronghold of Raqqa city, including the road to Deir al-Zor.

The YPG has been the main partner on the ground in Syria for the U.S.-led coalition against Islamic State, fighting as part of the SDF that has driven Islamic State from swathes of northern Syria with the coalition’s air support.

The YPG also has links to a Kurdish party, the PKK, designated by Turkey as a terrorist group.

It forms the military backbone of autonomous regions that have been set up by Kurdish groups and their allies in northern Syria since the onset of the war in 2011, alarming Turkey where a Kurdish minority lives just over the border. The main Syrian Kurdish groups say their aim is autonomy, not independence.

SDF spokesman Talal Silo told Reuters the U.S.-led coalition supplied the SDF with armored vehicles for the first time four or five days ago. Although the number was small, Silo called it a significant shift in support. He declined to give an exact number.

“Previously we didn’t get support in this form, we would get light weapons and ammunition,” he said. “There are signs of full support from the new American leadership — more than before — for our forces.”

He said the vehicles would be deployed in the campaign against Islamic State which has since November focused on Raqqa city, Islamic State’s base of operations in central Syria.

The first two phases of the offensive focused on capturing areas to the north and west of Raqqa, part of a strategy to encircle the city.

The third phase would focus on capturing remaining areas, including the road between Raqqa city and Deir al-Zor, the Kurdish military source said.

IS holds nearly all of Deir al-Zor province, where it has been fighting hard in recent weeks to try to capture the last remaining pockets of Syrian government-held territory in Deir al-Zor city.

Cutting off Raqqa city from IS strongholds in Deir al-Zor would be a major blow against the group.

“The coming phase of the campaign aims to isolate Raqqa completely,” said the Kurdish military source, who declined to be named. “Accomplishing this requires reaching the Raqqa-Deir al-Zor road,” the source said.

“This mission will be difficult.”

Silo of the SDF said preparations were underway for “new action” against IS starting in “a few days”, but declined to give further details.

(Writing by Tom Perry; Editing by Janet Lawrence and Sonya Hepinstall)

Jihadists mock Trump travel ban, vow more attacks

FILE PHOTO: An Islamic State flag is seen in this picture

By Omar Fahmy and Ali Abdelaty

CAIRO (Reuters) – Supporters of Islamic State mocked U.S. President Donald Trump’s decision to deny entry to citizens of seven Muslim- majority countries, saying it would fail to stop attacks in the United States and help win new militant recruits instead.

“Your decision will do nothing. Attacks will come at you from inside America, from Americans born in America with American parents and grandparents,” one Islamic State supporter posted on Telegram, an encrypted messaging app.

In a move he said would help protect the United States from terrorists, Trump signed an order on Friday suspending the entry of people from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen for at least 90 days. Admission of all refugees was halted for four months, and for Syrians indefinitely.

The sweeping travel curbs took effect immediately, wreaking havoc for would-be travellers with passports from the seven countries and prompting an international outcry.

Islamic State, which has been fighting military assaults on several fronts in its heartlands of northern Syria and Iraq, has made no formal comment on Trump’s ban. But some sympathisers took to social media to pour scorn on immigration restrictions they said would serve Islamic State’s cause.

“Trump bans Muslims from entering America and kills them in Yemen, Iraq and Syria, then threatens them … the wretch does not know he presents an invaluable service to Islamic State,” a supporter calling himself Salem al-Mosuly wrote on Twitter.

An Islamist channel on the messaging app Telegram called “Scholars of Haq”, monitored by U.S. monitoring service SITE, asked whether Trump’s policies meant he was currently the best “caller to Islam” – someone who attracts new believers.

Of the first 48 users to respond, 34 answered that he was, according to SITE. SITE quoted one respondent, Abu Magrebi, as saying: “What Trump has done has clearly revealed the truth, and harsh reality behind the American government’s hatred towards Muslims.”

“What is Trump doing to his country? He just become president and already people (are) protesting against his policy, and worldwide countries criticising him. Trump will bring American down God willing,” Abu Magrebi wrote in another post monitored by SITE.

By Monday morning, the Scholars of Haq channel had been taken down, along with several other channels on which Islamist militants had posted responses on Sunday.

Other Islamic State supporters mocked an order issued by Trump on Sunday requiring his joint chiefs of staff give him a plan, in the next 30 days, to defeat the militant group.

“The Crusader Trump has made himself an unthinking Pharaoh. The despicable Crusader forgets the reckless utterances of Bush Junior and the mule Obama before him. They did not succeed and by the grace of God we will rub his nose in the mud as we did his predecessors,” wrote user Turjman Al Asawirti on Telegram.

(Additional reporting by Sami Aboudi in Dubai and Eric Knecht in Cairo; Writing by Lin Noueihed; Editing by Peter Graff)

Tens of thousands in U.S. cities protest Trump immigration order

Protesters yello slogans in protest of travel ban

By Frank McGurty and Nathan Frandino

NEW YORK/WASHINGTON (Reuters) – Tens of thousands of people rallied in U.S. cities and at airports on Sunday to voice outrage over President Donald Trump’s executive order restricting entry into the country for travelers from seven Muslim-majority nations.

In New York, Washington and Boston, a second wave of demonstrations followed spontaneous rallies that broke out at U.S. airports on Saturday as U.S. Customs and Border Protection agents began enforcing Trump’s directive. The protests spread westward as the day progressed.

The order, which bars admission of Syrian refugees and suspends travel to the United States from Syria, Iraq, Iran and four other countries on national security grounds, has led to the detention or deportation of hundreds of people arriving at U.S. airports.

One of the largest of Sunday’s protests took place at Battery Park in lower Manhattan, within sight of the Statue of Liberty in New York Harbor, long a symbol of welcome to U.S. shores.

Democratic Senator Charles Schumer of New York told the crowd that Trump’s order was un-American and ran counter to the country’s core values.

“What we are talking about here is life and death for so many people,” the Senate Democratic leader said. “I will not rest until these horrible orders are repealed.”

The march, estimated to have grown to about 10,000 people, later began heading to the U.S. Customs and Border Protection office in lower Manhattan.

In Washington, thousands rallied at Lafayette Square across from the White House, chanting: “No hate, no fear, refugees are welcome here.”

It was the second straight weekend that Washington was the scene of protests. Last Saturday, hundreds of thousands of women participated in an anti-Trump rally and march, one of dozens staged across the country.

On Sunday, many of the protesters left the White House area and marched along Pennsylvania Avenue, stopping at the Trump International Hotel where they shouted: “Shame, shame, shame.”

A crowd that police estimated at 8,000 people eventually arrived at the steps of the U.S. Capitol, where a line of uniformed officers stood guard.

As the crowd passed the Canadian Embassy en route to the Capitol, protesters chanted: “Hey hey, ho ho, I wish our leader was Trudeau.” It was a reference to Canadian Prime Minister Justin Trudeau’s Saturday Twitter message affirming his country’s welcoming policy toward refugees.

Trump defended the executive order in a statement on Sunday, saying the United States would resume issuing visas to all countries once secure policies were put in place over the next 90 days.

“To be clear, this is not a Muslim ban, as the media is falsely reporting,” Trump said. “This is not about religion – this is about terror and keeping our country safe.”

‘NEVER AGAIN MEANS NEVER’

Aria Grabowski, 30, of Washington, was carrying a sign that read: “Never again means never again for everyone.”

Above the slogan was a photograph of Jewish refugees who fled Germany in 1939 on a ship that was turned away from Havana, Cuba, and forced to return to Europe. More than 250 people aboard the ship were eventually killed by the Nazis.

About 200 protesters chanted on Sunday afternoon at Washington Dulles International Airport in northern Virginia near the U.S. capital.

About the same number gathered at New York’s John F. Kennedy International Airport, where anxious families awaited relatives detained for hours after flights from countries affected by the presidential order.

At Los Angeles International Airport, police estimated 4,000 demonstrators crowded into and around terminals to protest Trump’s order, as chants of “refugees are welcome here” echoed through the arrivals hall.

Organizers estimated that more than 10,000 people packed Boston’s Copley Square to hear Senator Elizabeth Warren of Massachusetts, a vocal critic of Trump and a leader of the Democratic Party’s liberal wing, and other speakers.

During the protests, dozens of Muslims, some of them kneeling on protest signs, bowed in prayer on rugs laid out on a grassy patch of ground in the square.

In Houston, which was already filling up with visitors for next Sunday’s Super Bowl, about 500 people marched through the downtown.

Jennifer Fagen, 47, a sociology professor at Lamar University in Beaumont, Texas, said she hoped she did not lose her job for protesting.

“I’m Jewish, and it’s supposed to be ‘never again,'” Fagen said, referring to the Holocaust. “Jews should be the first ones to defend Muslims, considering what has happened to us, and it seems it’s being repeated under Trump.”

At Detroit Metropolitan Airport, police cordoned off sections of terminal as up to 3,000 demonstrators chanted, “No hate, no fear, refugees are welcome here.”

Among the demonstrators were Wail Aljirafi and his wife, Samyeh Zindani of Ann Arbor, Michigan, and their three children.

“We want them to feel that they’re always included,” Zindani, a Yemeni-American, told Reuters.

In the Detroit suburb of Hamtramck, Michigan, home to a large number of Yemeni immigrant families and the nation’s first Muslim-majority city council, at least 600 people rallied outside City Hall.

Rama Alhoussaini, 23, a Syrian immigrant who lives in nearby Dearborn, said she and her family emigrated to Michigan in 1999 when she was 6 years old.

“Now for us to see this kind of hatred and bigotry, it breaks my heart,” she said. “It makes me feel like I am not wanted here.”

(Additional reporting by Susan Corwall, Ian Simpson and Lesley Wroughton in Washington, Brian Snyder in Boston, Ruthy Munoz in Houston, Chris Francescani in New York, Daina Beth Solomon in Los Angeles and Serena Maria Daniels in Detroit; Editing by Lisa Von Ahn and Jonathan Oatis)

Trump’s call for deadlier Islamic State push may hit limits

By Phil Stewart

WASHINGTON (Reuters) – U.S. President Donald Trump’s call for a military plan to defeat Islamic State is likely to see the Pentagon revisiting options for a more aggressive use of firepower and American troops.

But U.S. officials, who spoke on condition of anonymity, doubt the country’s military will advocate fundamentally changing a key strategy refined during the Obama administration: relying on local forces to do most of the fighting, and dying, in Syria and Iraq.

“I think it’s going to be very successful. That’s big stuff,” said Trump as he signed an executive order on Saturday requesting the Pentagon, joint chiefs of staff and other agencies to submit a preliminary plan in 30 days for defeating Islamic State, fulfilling one of his campaign trail pledges.

The order calls for the combined experts to recommend any changes needed to U.S. rules of engagement or other policy restrictions, to identify new coalition partners and to suggest mechanisms for choking off Islamic State funding sources. It also demands a detailed strategy for funding the plan.

Trump made defeating Islamic State – which has claimed responsibility for several attacks on American soil and is frustrating U.S. military operations across the Middle East – one of the key themes in his campaign. But he avoided talking about specifics of any plan to combat the radical group.

Any shifts by the U.S. military would have broad repercussions for U.S. relationships across the Middle East, which were strained by former President Barack Obama’s effort throughout his administration to limit U.S. military involvement in Iraq and Syria.

Trump’s Defense Secretary James Mattis has advocated a more forceful approach against Islamic State, but how he will pursue that remains unclear.

U.S. military officials have long acknowledged the United States could more quickly defeat Islamic State by using its own forces, instead of local fighters, on the battlefield.

But victory, many U.S. military officials have argued, would come at the expense of more U.S. lives lost and ultimately do little to create a lasting solution to conflicts fueled by bitter ethnic, religious and political divides in nations with fierce anti-American sentiment.

David Barno, a retired lieutenant general who once led U.S. forces in Afghanistan, said it would be a major escalation if Trump’s administration opted to rely on U.S. troops by putting them into a direct combat role and effectively substitute them for local forces.

“We’ve been down that road, and I don’t think the American people are excited about that idea,” said Barno, who now teaches at American University in Washington, D.C.

Experts said the Pentagon could still request additional forces, beyond the less than 6,000 American troops deployed to both Iraq and Syria today, helping the U.S. military to go further and do more in the fight.

But they also said the Pentagon may focus on smaller-scale options like increasing the number of attack helicopters and air strikes as well as bringing in more artillery. The military may also seek more authority to make battlefield decisions.

Obama’s administration found itself for years battling accusations of micromanaging the wars in Iraq, Syria and Afghanistan.

“I do think the Pentagon will argue for, and get a lot more authority, to put advisers and special operators closer into the fight,” Barno said.

RAQQA RAMP-UP

Trump, who pledged in his inaugural address to eradicate Islamic State and like-minded groups “from the face of the earth,” met military chiefs at the Pentagon for about an hour on Friday.

A U.S. defense official, speaking to reporters after the talks, said they discussed ways to accelerate the defeat of Islamic State, among other hot-button issues, including the threat from North Korea, but offered no details.

“The chiefs did most of the talking,” the official said.

In Syria, the big step for the U.S.-backed forces will be finally taking control of the Islamic State’s de facto capital of Raqqa.

In his Senate confirmation hearing, Mattis said he believed the United States already had a strategy that would allow the American military to regain control of Raqqa. But he said that strategy needed to be reviewed and “perhaps energized on a more aggressive timeline.”

One key decision awaiting the Trump administration is whether to directly provide weapons to Kurdish fighters in Syria as they push toward Raqqa, despite fierce objections from NATO ally Turkey.

The United States views the Kurdish fighters as its most reliable ally in Syria but Ankara sees them as an extension of Kurdish militants who have waged a three-decade insurgency on Turkish soil.

The Syrian Democratic Forces (SDF), which include the Kurdish fighters, launched a multi-stage operation in Raqqa province in November aimed ultimately at capturing the city from Islamic State.

Across the border in Iraq, local forces backed by U.S.-led coalition airstrikes and advisers on the ground have secured a major part of Islamic State’s Iraqi stronghold of Mosul.

Still, U.S. military leaders warn Islamic State will likely morph into a more classic insurgency once it loses Raqqa and Mosul, meaning the fight could stretch on for years.

(Additional reporting by Lesley Wroughton.; Editing by Yara Bayoumy and Bill Rigby)

Sudan to end fuel, food subsidies by 2019: minister

By Khalid Abdelaziz

KHARTOUM (Reuters) – Sudan plans to end all subsidies on food and fuel by 2019 and forecasts the lifting of U.S. sanctions will earn its hard currency-starved economy $4 billion per year in remittances, Minister of State for Finance Magdi Hassan Yasin said on Monday.

In the final days of Barack Obama’s presidency, Washington announced plans to lift a 20-year-old trade embargo, unfreeze assets and remove financial sanctions in response to Khartoum’s cooperation in fighting Islamic State and other groups.

The sanctions relief will come in six months if Sudan takes further steps to improve its human rights record and takes steps to resolve military conflicts, including in Darfur.

Even so, Sudanese officials are already looking beyond the sanctions regime.

“The lifting of American sanctions is a turning point for the Sudanese economy,” Yasin, a junior minister, said in an interview.

The path may not be smooth. On Saturday, Sudan’s foreign ministry called President Donald Trump’s temporary travel ban on citizens from seven countries, including Sudan, “very unfortunate”.

If there is no extension, the three-month restriction on Sudanese citizens entering the United States would be over by the time the trade embargo and financial sanctions are removed.

Even so, it is unclear if the tougher immigration rules promised by Trump might impact on trade relations between the two countries.

END OF SUBSIDIES

Sudan’s economy has struggled since South Sudan seceded in 2011, taking with it three-quarters of the country’s oil output and much of Khartoum’s foreign currency and government revenue.

Sudan in November cut fuel and electricity subsidies and announced import restrictions to save scarce foreign currency. Yasin said the government targets scrapping these subsidies entirely by 2019.

“Distortions will be removed from the economy with the total cancellation of consumption subsidies,” Yasin said. “That includes for fuel, electricity, and imported wheat.”

Yasin said the government was considering legislation allowing foreign companies to invest in electricity infrastructure and production for the first time. Huge swathes of rural Sudan have never been connected to the national grid.

“Sudan only produces 34 percent of its electricity needs, so the door will be open for investment in this field, especially after U.S. sanctions are lifted,” he said.

Khartoum has already said it will review its monetary and exchange rate policies once the U.S. sanctions are lifted to lure new foreign investment.

The potential for increased trade and investment flows is already reflecting in the real economy, with the Sudanese pound strengthening to 16 per dollar from 19 before the sanctions announcement.

The pound trades at 6.8 per dollar in the official banking system. The minister said a stronger pound would tame inflation, which hit an annual rate of 30.47 percent in December.

“We expect inflation to start declining beginning this July and for the value of the pound to continue rising with the inflow of remittances from Sudanese abroad and foreign investments,” said Yasin.

(Writing by Eric Knecht; Editing by Ahmed Aboulenein and Richard Lough)

Trump talks to Putin, other world leaders about security threats

By Jeff Mason

WASHINGTON (Reuters) – President Donald Trump discussed Syria and the fight against Islamic State with Russian President Vladimir Putin on Saturday in one of several calls with world leaders that the new U.S. president used to put his stamp on international affairs.

Trump’s call with Putin was their first since the New York businessman took office and came as officials said he was considering lifting sanctions on Moscow despite opposition from Democrats and Republicans at home and European allies abroad.

Neither the White House nor the Kremlin mentioned a discussion of sanctions in their statements about the roughly hour-long call.

“The positive call was a significant start to improving the relationship between the United States and Russia that is in need of repair,” the White House said. “Both President Trump and President Putin are hopeful that after today’s call the two sides can move quickly to tackle terrorism and other important issues of mutual concern.”

Former President Barack Obama strongly suggested in December that Putin personally authorized the computer hacks of Democratic Party emails that U.S. intelligence officials say were part of a Russian effort aimed at helping Trump beat Democrat Hillary Clinton in the Nov. 8 election.

Trump’s relationship with Russia is being closely watched by the European Union, which teamed up with the United States to punish Moscow after its annexation of Crimea from Ukraine.

Trump spoke to two top EU leaders, German Chancellor Angela Merkel and French President Francois Hollande, on Saturday in addition to Japanese Prime Minister Shinzo Abe and Australian Prime Minister Malcolm Turnbull.

His call with Merkel, who had a very close relationship with Trump’s predecessor, former President Barack Obama, included a discussion about Russia, the Ukraine crisis, and NATO, the U.S. and German governments said.

Trump has described NATO as being obsolete, a comment that has alarmed long-time U.S. allies. A White House statement said he and Merkel agreed NATO must be capable of confronting “21rst century threats.”

Trump’s executive order restricting travel and instituting “extreme vetting” of visitors from seven Muslim-majority countries already puts him at odds with Merkel, whose embrace of Syrian refugees was praised by Obama even as it created political problems for her domestically.

Trump has said previously that Merkel made a “catastrophic mistake” by permitting more than a million refugees, mostly Muslims fleeing war in the Middle East, to come to her country.

In his call with Hollande, Trump “reaffirmed the U.S. commitment to NATO and noted the importance of all NATO allies sharing the burden on defense spending,” the White House said.

Hollande warned Trump against taking a protectionist approach, which he said would have economic and political consequences, according to a statement from the French president’s office.

The refugee order created confusion and chaotic scenes in airports on Saturday and largely overshadowed the news of Trump’s calls with foreign leaders, which took place throughout the day and which photographers captured in photos and video outside the Oval Office.

During his call with Japan’s Abe, Trump affirmed an “ironclad” U.S. commitment to ensuring Japan’s security. The two leaders also discussed the threat posed by North Korea. They plan to meet in Washington early next month.

Trump spoke to Australia’s Turnbull for 25 minutes and emphasized the close relationship between the two countries.

(additional reporting by Roberta Rampton, Andrea Shalal, Andrew Osborn, Alexander Winning, and Kiyoshi Takenaka; Editing by Nick Zieminski)

Tycoon Slim says ready to help Mexico negotiate with Trump

Mexican billionaire Carlos Slim shows the book "Crippled America: How to make America great again" by Donald Trump during a news conference in Mexico City, Mexico

MEXICO CITY (Reuters) – Mexican billionaire Carlos Slim said on Friday he is willing to help the government negotiate with Donald Trump, and called on Mexicans from all political parties to unite behind President Enrique Pena Nieto in his discussions with the U.S. president.

In a rare news conference by the generally media-shy mogul, Slim said Mexico needed to negotiate from a position of strength, noting that Trump, who he called a “great negotiator,” represented a major change in how politics is conducted.

(Reporting by Christine Murray)

Trump has ‘friendly’ call with Mexican leader but demands change

Mexico's President Enrique Pena Nieto is seen during the delivery of a message about foreign affairs at Los Pinos presidential residence in Mexico City, Mexico,

By Roberta Rampton and Emily Stephenson

WASHINGTON (Reuters) – U.S. President Donald Trump said he had a friendly phone call with Mexico’s president on Friday but asserted he will renegotiate trade deals and other aspects of the countries’ ties because Mexico has “beat us to a pulp” in the past.

Mexico’s peso extended gains on news of the call.

The two men spoke for about an hour on Friday, a day after President Enrique Pena Nieto scrapped a planned meeting in Washington next week over Trump’s instance that Mexico pay for a multibillion-dollar border wall.

“It was a very, very friendly call,” Trump told a joint news conference with visiting British Prime Minister Theresa May.

“We are going to be working on a fair relationship and a new relationship” with Mexico, Trump added. “But the United States cannot continue to lose vast amounts of business, vast amounts of companies and millions and millions of people losing their jobs.

“That won’t happen with me.”

Trump’s fresh insistence that Mexico pay for the wall and Pena Nieto’s cancellation of his visit deepened a crisis between the two countries in the first week of Trump’s presidency.

Trump said Mexico has “out-negotiated us and beat us to a pulp through our past leaders. They’ve made us look foolish.”

He said the United States will “renegotiate our trade deals and we’re going to renegotiate other aspects of our relationship with Mexico. And in the end I think it will be good for both countries.”

The Republican president views the wall, a major promise during his election campaign, as part of a package of measures to curb illegal immigration. Mexico has long insisted it will not heed Trump’s demands to pay for the construction project.

An official at the Mexican president’s office confirmed the call and said a statement would be issued later with more details.

On Thursday, White House spokesman Sean Spicer sent the Mexican peso falling to its low for the day when he told reporters that Trump wanted a 20 percent tax on Mexican imports to pay for the wall.

Spicer gave few details, but his comments resembled an existing idea, known as a border adjustment tax, that the Republican-led U.S. House of Representatives is considering as part of a broad tax overhaul.

Mexico and the United States will be stuck at an impasse unless they solve Trump’s “unacceptable” demand of payment for the border wall, Mexico’s Economy Minister Ildefonso Guajardo said on Friday.

Just back in Mexico from failed talks in Washington, Guajardo also expressed concern about Trump’s “unpredictability” and habits on Twitter.

(Additional reporting by Steve Holland in Washington and Lizbeth Diaz in Mexico City; Writing by Will Dunham; Editing by Jonathan Oatis)

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