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In Canada’s ‘Suburb of Detroit,’ Fears Over Trump’s Tariff Threat

Published

2 hours ago

January 18, 2025

In Canada’s ‘Suburb of Detroit,’ Fears Over Trump’s Tariff Threat

Since 1988, the hulking presses at Lanex Manufacturing on the edge of Windsor, Ontario, have been stamping out door strikers, folding-seat latches, tailpipe hangers, frame braces and other prosaic bits of metal that make their way into vehicles ranging from Corvettes to Honda minivans.

But, these days, worries about the future permeate the plant as President-elect Donald J. Trump prepares to enter the White House. He has threatened to impose a 25 percent tariff on all goods exported from Canada to the United States. In Windsor, that would ravage its lifeblood: automobiles and everything that goes into them.

“Everybody’s waiting for the next shoe to drop,” Bruce Lane, the president of Lanex, said in its boardroom, whose walls were made of painted concrete blocks. “If Windsor lost its automotive business, Windsor would not survive.”

Few Canadian cities are as acutely aware as Windsor of the integration of the two countries’ economies. The city sits just across the Detroit River from Detroit, and Canada’s maple-leaf flag often flies next to the stars and stripes there. And no industry has been interwoven across the border for as long as auto making.

“These workers here in Windsor are more exposed to trade with the United States than anyone else,” Prime Minister Justin Trudeau said at a steel plant during a recent visit to the city.

Mr. Trump, he added, “is proposing tariffs that would damage not just people here in Windsor but people right across the country and indeed in the United States.”

Windsor’s two major landmarks are shared with Detroit: the $5.7 billion Gordie Howe International Bridge, scheduled to open this year, and the 96-year-old Ambassador Bridge, which carries about $300 million in cross-border trade each day. Of Canada’s $440 billion in annual exports to the United States, only oil and gas generate a larger amount than cars, trucks and auto parts.

But with Canadian officials taking Mr. Trump at his word that he will follow through on his threat of tariffs, Mr. Lane and others in the auto industry are already bracing for the potential fallout.

George Papp is the chief executive of Papp Plastics, whose headquarters sits near the imposing new suspension bridge. He said his U.S. customers, mainly automakers, would simply invoke the terms of contracts he has with them and deduct the cost of tariffs from the amount they pay him.

“Who’s going to take the hit?” Mr. Papp said. “Me, and people like me and companies like mine.”

Flavio Volpe, the president of the Automotive Parts Manufacturer’s Association, a Canadian trade group, estimated that most of his members had single-digit profit margins and that the tariffs Mr. Trump was threatening would be ruinous.

The intertwining of the auto industry across the two countries was cemented in 1965 when Canada and the United States reached an agreement that effectively eliminated the border for the industry. Today, 90 percent of cars and trucks made in Canada are sent to the United States, primarily by train.

At Lanex, small metal parts that few motorists will ever see are forged into shape by upward of 600 tons of pressure by the firm’s presses. Their journeys illustrate how enmeshed the two countries’ auto industries have become.

As a small supplier, Mr. Lane does not deal directly with carmakers, but sells his goods through larger parts makers. Seat-locking hooks that Lanex makes for Honda minivans are sent to a plant elsewhere in Ontario, where they are fitted with other parts and then shipped to an assembly line in Alabama that belongs to Honda, a Japanese company.

Mr. Lane’s factory has sent parts to Michigan for heat treating, brought them back to Windsor for more machining and then sold them to a U.S. company.

“Windsor is used to going back and forth across the border,” Mr. Lane said. “It’s like just like getting up out of bed in the morning.”

The turmoil from possible tariffs comes at an already difficult time for Canada’s auto business. Many auto-parts manufacturers have yet to see their business return to levels from before the coronavirus pandemic because of lagging car sales. In 2020, Lanex had about 60 employees working on two shifts, but it now has about two dozen employees running a single shift.

The anxiety is particularly acute in Windsor, which has a metropolitan population of roughly 484,000. Aside from cargo trucks rumbling across the Ambassador Bridge, the city’s most obvious automotive symbol is a giant Stellantis factory that produces Chrysler Pacifica minivans as well as Dodge Charger muscle cars.

A city within the city, the European-based Stellantis employs 4,500 workers at the factory. Aided by billions of dollars in Canadian subsidies, it is building a battery plant in a joint venture with the South Korean company LG in Windsor and recently spent 1.89 billion Canadian dollars (about $1.3 billion) to retool its assembly plant to make electric vehicles alongside gasoline-powered ones.

But, like many auto makers, Stellantis is now in a slump as it struggles with the transition to electric vehicles and with competition from China.

James Stewart, the president of the local union that represents Windsor’s Stellantis workers, said he did not believe a large tariff would necessarily deal a fatal blow to Stellantis’s operations in Windsor, given how much the company had invested.

But with so much of Windsor’s economic well-being intimately tied to trade with the United States, Mr. Stewart said, tariffs would deal a heavy blow, including the closing of businesses, layoffs and production cuts.

“We’re a suburb of Detroit; we’ve always felt that way,” he said, adding that Windsor seemed to be “under attack and for no reason.”

Mr. Trump initially characterized tariffs as a way to prod Canada and Mexico into better securing their borders to tamp down the flow of undocumented migrants.

But he also mused about making Canada the 51st state, noting that the United States was heavily invested in Canada’s military defense, and threatened to use economic force annex it. He has also vented about what he describes as the “subsidizing’’ of Canada by the United States, an apparent reference to the U.S. trade deficit with Canada, largely because of oil and gas imports.

The Trudeau government is expected to detail how it would retaliate against any U.S. tariffs on Monday, the day Mr. Trump is to take office.

But Canada’s comparatively small economy makes it difficult for the country to inflict substantial economic harm on the United States, though levies against specific products could hurt individual states. Retaliatory tariffs would also drive up prices in Canada.

Back at the Lanex plant, Mr. Lane said that, by pure coincidence, the company had been embarking on a “secret” manufacturing project unrelated to automobiles and that had unexpectedly become a potential hedge against tariffs. He declined to offer any details to avoid tipping off competitors.

Mr. Papp, the plastics-company owner, said that even though he would oppose tariffs, which would hurt his business, he was a fan of Mr. Trump and understood why the president-elect had argued that tariffs were needed to help rebuild industry in the United States.

Regardless of what happens, Mr. Papp said, Canada and the United States will always remain unshakable allies.

“You can’t separate our countries,” he said. “They’re bolted together.”

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Business

Ex-Oakland mayor, boyfriend, waste company execs indicted in sprawling corruption probe

Published

3 hours ago

January 17, 2025

Press Room

Ex-Oakland mayor, boyfriend, waste company execs indicted in sprawling corruption probe

Federal officials announced Friday that they have indicted former Oakland Mayor Sheng Thao on bribery charges, along with her longtime boyfriend and a father-son team who run the company that provides the city’s recycling services, alleging a sprawling corruption scheme involving cash payments and campaign mailers in exchange for city contracts.

The federal charges come two months after Thao was recalled from office amid roiling voter frustrations with crime, homelessness and a sense that city government is not responsive to citizens’ needs. It was a sharp turnabout for Thao, who took office in January 2023 to heady press lauding her journey from homelessness to chief executive and celebrating her as the first Hmong American to lead a major American city.

The indictment, handed down by a grand jury at the U.S. District Court in Oakland, was filed Jan. 9 and unsealed Friday. It charges Thao; her boyfriend, Andre Jones; and two local waste company executives, David Duong and his son Andy, with bribery and conspiracy. Andy Duong was also charged with lying to federal agents.

The indictment alleges that in the weeks leading up to her election as Oakland’s mayor in fall 2022, Thao pledged to steer contracts to the Duong family’s recycling company, Cal Waste Solutions, in exchange for campaign mailers targeting her opponents and payments to her boyfriend for a “no show” job. Jones ultimately received $95,000, the indictment alleges. It also alleges that Thao promised to get the city of Oakland to buy modular housing units for the homeless from the Duong family’s housing company and to appoint people selected by the Duongs to powerful city posts.

Thao pleaded not guilty during her arraignment Friday, according to local news reports, and was released from custody on a $50,000 bond. Jones also pleaded not guilty.

“The mayor is innocent. She looks forward to the opportunity to be able to defend herself in court,” Jeff Tsai, Thao’s attorney, told the San Francisco Chronicle. “What is missing from this indictment is anything that truly indicates that the mayor had any involvement in the scheme that the government has described. We are very confident that we are going to be able to vindicate the mayor of these charges.”

In a statement Friday, Andy Duong’s attorneys called the charges against his client “baseless” and said they were “being fanned by nothing more than gossip and supposition stitched together by the fabrications and delusions of those who lack all fundamental credibility.” The statement said Duong was “the most recent in a long line of Asian Americans who unfairly are singled out and forced to pay a price for daring to be active in the political sphere.”

David Duong also denied wrongdoing.

The charges stunned Oakland’s political class. Former U.S. Rep Barbara Lee, who represented the East Bay in Congress for more than two decades and is now running for mayor in a special election in April, issued a statement calling the allegations “devastating.”

“There should be no tolerance whatsoever for secret pay-to-play schemes that erode the public trust,” she said. “City Hall must never be for sale.”

Rumors of a corruption investigation involving Thao have been swirling for months, after the FBI raided her home in June.

At the time, Thao said in a fiery news conference that she was not a target of the probe.

“I want to be crystal clear. I have done nothing wrong,” she said in a tearful speech days after FBI agents converged on her home and left with boxes. “I can tell you with confidence that this investigation is not about me.”

She also questioned the tactics of the FBI: “This wouldn’t have gone down the way it did if I was rich, if I had gone to elite private schools, or if I had come from money,” she said.

The same day Thao’s home was searched, agents executed warrants at the Oakland office of Cal Waste Solutions, as well as the homes of David and Andy Duong. The company released a statement at the time denying involvement in illegal activities.

Separate from the FBI probe, the Oakland Public Ethics Commission and the state Fair Political Practices Commission have been investigating allegations that members of the Duong family have used “straw donors” to circumvent donation limits and bolster the campaigns of local elected officials.

The indictment unsealed Friday spans 22 pages and includes numerous text exchanges that allegedly lay out the scheme — and at times contain auto-correct hijinks.

“Sheng is going to call you re $$,” a person identified as “Co-Conspirator 1” wrote to Andy Duong in October 2022, about a month before Thao was elected, according to the indictment.

Duong allegedly responded: “Lol. What money?”

“She needs,” Co-Conspirator 1 allegedly answered, adding: “I said you are committees.” A subsequent text message clarified: “committed.”

The indictment alleges that in another series of text messages in late November 2022, after Thao’s election, the two discussed fears that the scheme could come to light.

“So we may go to jail,” Co-Conspirator 1 wrote to Duong, according to the indictment. “But we are $100 million richer.”

“Money buys everything,” Andy Duong allegedly responded.

Business

RFK Jr. Sought to Stop Covid Vaccinations 6 Months After Rollout

Published

10 hours ago

January 17, 2025

Press Room

RFK Jr. Sought to Stop Covid Vaccinations 6 Months After Rollout

Robert F. Kennedy Jr., President-elect Donald J. Trump’s choice to lead the nation’s health agencies, formally asked the Food and Drug Administration to revoke the authorization of all Covid vaccines during a deadly phase of the pandemic when thousands of Americans were still dying every week.

Mr. Kennedy filed a petition with the F.D.A. in May 2021 demanding that officials rescind authorization for the shots and refrain from approving any Covid vaccine in the future.

Just six months earlier, Mr. Trump had declared the Covid vaccines a miracle. At the time Mr. Kennedy filed the petition, half of American adults were receiving their shots. Schools were reopening and churches were filling.

Estimates had begun to show that the rapid rollout of Covid vaccines had already saved about 140,000 lives in the United States.

The petition was filed on behalf of the nonprofit that Mr. Kennedy founded and led, Children’s Health Defense. It claimed that the risks of the vaccines outweighed the benefits and that the vaccines weren’t necessary because good treatments were available, including ivermectin and hydroxychloroquine, which had already been deemed ineffective against the virus.

The petition received little notice when it was filed. Mr. Kennedy was then on the fringes of the public health establishment, and the agency denied it within months. Public health experts told about the filing said it was shocking.

John Moore, a professor of immunology at Weill Cornell Medical College, called Mr. Kennedy’s request to the F.D.A. “an appalling error of judgment.” Gregg Gonsalves, an epidemiologist at the Yale School of Public Health, likened having Mr. Kennedy lead the federal health agencies to “putting a flat earther in charge of NASA.”

Dr. Robert Califf, commissioner of the Food and Drug Administration, described Mr. Kennedy’s effort to halt the use of Covid vaccines as a “massive error.”

Mr. Kennedy’s transition spokeswoman did not respond to requests for comment, but has said recently that he does not want to take vaccines away.

Asked in November by an NBC reporter about his general opposition to Covid vaccines — and whether he would have stopped authorization — Mr. Kennedy said he was concerned that the vaccines did not prevent transmission of the virus.

“I wouldn’t have directly blocked it,” he said. “I would have made sure that we had the best science, and there was no effort to do that at that time.”

Mr. Kennedy’s early opposition to Covid vaccines has alarmed public health experts, many of whom contend that it should disqualify him from overseeing health agencies with the power to authorize, monitor and allocate funding for millions of vaccines each year.

They are also concerned about how he might handle a possible bird flu pandemic, which could necessitate a rapid deployment of vaccines.

As Mr. Kennedy prepares for his confirmation hearings before two Senate committees, he and his allies have insisted that he is not anti-vaccine.

In fact, in mid-2023, he told a House panel that he had taken all recommended vaccines — except for the Covid immunization.

At his confirmation hearings, he’ll most likely face scrutiny of his broader statements on vaccines, including that the polio vaccine cost more lives than it saved.

Mr. Trump has stepped forward in recent weeks to defend Mr. Kennedy after The New York Times reported that one of Mr. Kennedy’s lawyers had previously petitioned the F.D.A. to revoke approval or pause distribution of several polio vaccines over safety concerns.

“I think he’s going to be much less radical than you would think,” Mr. Trump said last month.

After the Times report, Mr. Trump and Mr. Kennedy expressed their support for the polio vaccine.

If confirmed by the Senate as secretary of the Health and Human Services Department, Mr. Kennedy would assume oversight of $8 billion in funding for the Vaccines for Children program and would have the authority to appoint new members to a panel that makes influential vaccine recommendations to states.

At the time Mr. Kennedy challenged the Covid vaccines, some of his objections touched on wider concerns about their rapid development. Emergency-use authorization — a preliminary form of approval — for immunizations was unusual. Others argued that a public health emergency dictated a speedier rollout.

Dr. Jennifer Nuzzo, director of the Pandemic Center at Brown University School of Public Health, said it would be reasonable to debate whether Covid vaccines should have been subject to additional study.

But she profoundly disagreed with Mr. Kennedy’s views, saying that “the idea that in early 2021 that you could be saying that people over the age of 65 don’t need Covid vaccines — that’s just nuts.”

Vaccines have rare side effects, and there have been cases of injury from the Covid shots. Government officials weigh the harms against the potential to save lives. An estimate released in early 2024 found that the Covid vaccines and mitigation measures saved about 800,000 lives in the United States.

Another study found that in late 2021 and 2022, Covid death rates among unvaccinated people were 14 times the rates of those who had received a Covid booster shot. Researchers also estimated that from May 2021 through September 2022, more than 230,000 deaths could have been prevented among people who declined initial Covid inoculations.

From the start of the Covid vaccine campaign, Mr. Kennedy’s view that the Covid vaccines were dangerous put him at odds with Mr. Trump, whose Operation Warp Speed to develop the vaccines was one of his policy triumphs. And Mr. Kennedy went on a concerted campaign against the vaccine.

Mr. Kennedy told Louisiana lawmakers in late 2021 that the Covid vaccine was the “deadliest vaccine ever made.”

He has remained a plaintiff in a lawsuit against President Biden and others, contesting efforts by government officials to limit his ability to suggest on social media that Covid vaccines were not safe.

In January 2021, Mr. Kennedy suggested on Facebook that the death of the baseball legend Hank Aaron, 86, was related to a Covid vaccine he had received 17 days earlier. It was “part of a wave of suspicious deaths” following Covid vaccines, he claimed. A doctor who was vaccinated alongside Mr. Aaron and the county medical examiner dismissed the claim.

In May, when Mr. Kennedy petitioned the F.D.A. to “immediately remove Covid vaccines from the market,” he was joined by Dr. Meryl Nass, a member of the Children’s Health Defense scientific advisory board and a physician in Maine.

Her medical license was initially suspended on an emergency basis in early 2022 for prescribing ivermectin and hydroxychloroquine to patients with severe cases of Covid, including one who was intubated, Maine medical board records show.

She later sued the board, claiming that it retaliated against her for exercising her right to free speech. The case is pending.

In 2022, Mr. Kennedy and others filed a lawsuit against the F.D.A. on behalf of Children’s Health Defense and parents who said they were concerned that their children would be given Covid vaccines without their knowledge or consent. The amended lawsuit, filed in July 2022, sought a court order requesting that the agency reconsider granting authorization for Pfizer and Moderna Covid vaccines for children.

A Texas appeals court dismissed the case in early 2024, concurring with a lower court that the plaintiffs did not face a “concrete or imminent” risk of harm. In June, the Supreme Court declined to hear an appeal.

Mr. Kennedy also sent letters to the F.D.A. threatening legal action if vaccine authorizations for children were granted.

Covid vaccines by Pfizer and Moderna for infants and children 6 months to 11 years old remain in use under emergency authorization, according to the F.D.A. Spokesmen for Pfizer and for Moderna said the companies are pursuing full approval for all ages.

Mr. Kennedy claimed in the censorship case that top Biden administration officials had coerced social media platforms to silence him, mostly during the summer of 2021. At the time, vaccine rates were stalling. People who were not vaccinated began to die at higher rates. Some who died were young; their loved ones said they were confused by conflicting messages on social media — or regretted that they had not gotten the vaccine.

Records in the lawsuit outline a briefing that summer with Jen Psaki, the White House press secretary at the time, and Dr. Vivek Murthy, the U.S. surgeon general, both of whom criticized social media companies for allowing the spread of misinformation that was influencing people against vaccination.

“And we can’t wait longer for them to take aggressive action because it’s costing people their lives,” Dr. Murthy said on July 15, 2021.

Mr. Biden expressed outrage the following day, telling reporters that social media companies that hosted vaccine misinformation were “killing people.”

In legal filings, Mr. Kennedy said that he had been named one of the “Disinformation Dozen” by a prominent advocacy group — and that he was one of the people the White House was targeting. Exhibits in the lawsuit show that White House officials leaned on social media companies to take down misinformation.

Within a month, a senior Facebook executive reported to Dr. Murthy that it had removed a number of pages or groups, including Mr. Kennedy’s, court records show.

The Supreme Court dismissed an associated case last summer, and an appeals court dismissed Mr. Kennedy’s case late last year. Lawyers representing Mr. Kennedy and others are still working on obtaining depositions of about 30 people, mostly Biden administration officials.

Sheryl Gay Stolberg and Dylan Freedman contributed reporting.

Business

Supreme Court upholds law that could force TikTok to shut down in U.S.

Published

11 hours ago

January 17, 2025

Press Room

Supreme Court upholds law that could force TikTok to shut down in U.S.

WASHINGTON — The Supreme Court on Friday upheld a law that calls for the shutdown of the U.S. operations of social media app TikTok due to privacy and security concerns related to its Chinese owner.

The justices in a unanimous opinion said the 2024 law does not violate the 1st Amendment or its protection for freedom of speech. The ruling means 170 million Americans may lose access to the popular social media platform as soon as Sunday.

“There is no doubt that, for more than 170 million Americans, TikTok offers a distinctive and expansive outlet for expression, means of engagement, and source of community,” the court said in an unsigned opinion. “But Congress has determined that divestiture is necessary to address its well-supported national security concerns regarding TikTok’s data collection practices and relationship with a foreign adversary. .. we conclude that the challenged provisions do not violate petitioners’ 1st Amendment rights.”

The decision appears to leave the U.S. fate of TikTok to either a last-minute sale by its Chinese owners, or a reprieve from President Biden or President-elect Donald Trump.

Trump takes office on Monday, the day after the shut-down law is due to take effect. Recently, Trump has said he will try to work out a deal that keeps TikTok in operation, presumably by separating it from Chinese government control.

Last year, the House and Senate by large bipartisan votes approved the shut-down law, citing national security fears that ByteDance, TikTok’s parent company, was gathering data on tens of millions of Americans.

Congress decided TikTok must separate itself from its ownership by a “foreign adversary.”

In defense of the law, U.S. Solicitor General Elizabeth Prelogar told the justices that TikTok and ByteDance “collect vast swaths of data about tens of millions of Americans,” which China “could use for espionage or blackmail.”

In its 20-page “per curiam” opinion Friday, the court said the case turned on the ownership and control of TikTok, not free speech.

While TikTok is “operated in the United States by TikTok Inc., an American company incorporated and headquartered in California,” its “ultimate parent company is ByteDance Ltd., a privately held company that has operations in China. ByteDance Ltd. owns TikTok’s proprietary algorithm…and is subject to Chinese laws that require it to ‘assist or cooperate’ with the Chinese government’s ‘intelligence work’ and to ensure that the Chinese Government has ‘the power to access and control private data’ the company holds.”

Second, the court said the shut-down law is not targeted at speech or expression. The 1st Amendment protects against the government’s efforts to control the “content” of the speech, but that is not at issue in this case, the court said.

The law “does not regulate the creators…and directly regulates ByteDance and TikTok only through the divestiture requirement.”

The free-speech advocates who sued to block the law “have not identified any case in which this court has treated a regulation of corporate control as a direct regulation of expressive activity or semi-expressive conduct. We hesitate to break that new ground in this unique case.”

Biden and his administration tried and failed to make progress on a separation agreement. Government lawyers told the court they did not find ByteDance to be trustworthy.

But Trump may see it differently. Though he originally supported efforts to ban TikTok in the U.S., he recently changed his position. “I have a warm spot in my heart for TikTok,” Trump said last month.

One provision of the law allows the president to give TikTok a 90-day extension if it is determined there has been “significant progress” toward arranging a “qualified divestiture” from its foreign owners.