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On Minnesota’s Iron Range, Trump’s Tariffs Could Be Boom or Bust

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On Minnesota’s Iron Range, Trump’s Tariffs Could Be Boom or Bust

Once a week, most weeks, the ground in Chisholm, Minn., shudders underfoot.

“When they blast over here, we can feel it in town over there,” Jed Holewa, a City Council member, explained as he looked out over the pit of the Hibbing Taconite mine, a machine-made canyon of flint-colored earth extending to the hills just southwest of town.

The low rumble of controlled explosions is reassuring in an area where few livelihoods are more than a couple of degrees removed from the mines. But this month the ground beneath the Iron Range has begun to shift in a very different way.

The sedimentary rock known as taconite, found in abundance in northern Minnesota, yields most of the United States’ iron ore, which in turn is made into steel used by the American auto industry. Thus the seismic effects of President Trump’s March 26 announcement of a 25 percent tariff on all cars and auto parts imported into the United States. The measure is meant to benefit the domestic auto industry, and has earned praise from labor leaders. But analysts predict it will most likely throw that industry into near-term turmoil, and several domestic automakers saw their stock fall last week after Mr. Trump’s announcement.

The tariff announcement comes amid a brewing trade war between the United States and Canada prompted by Mr. Trump’s earlier threats to impose broad tariffs on America’s northern neighbor and its longstanding ally and trading partner. Canada has responded with its own tariffs.

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At the same time, Cleveland-Cliffs, the steel conglomerate that controls Hibbing Taconite and other nearby mines, has announced plans to idle production lines and lay off more than 600 mine workers in the region, citing a softening of demand for cars. Mr. Holewa, a diesel mechanic at Hibbing Taconite, was among those waiting to hear his fate.

The son and grandson of miners, Mr. Holewa is well acquainted with both the fortunes and misfortunes of the industry, in which substantial union salaries go hand in hand with risk and uncertainty. His maternal grandfather was killed on the job, crushed by a haul truck. His father was laid off from a mine in Eveleth, Minn., in the 1980s, during the industry’s darkest period. The high points of its uneven recovery were memorialized in the model years of the Fords his family bought when he was growing up: a 1988 Tempo, a 1994 F-150.

Mr. Holewa, a Republican, is also indicative of the shifting politics of the Iron Range, where Mr. Trump made dramatic gains over previous Republican candidates in 2016 — the beginning of a collapse of a onetime rural Democratic stronghold where Republicans have since claimed most of the region’s seats in the State Legislature.

Mr. Holewa, who knocked on doors for Mr. Trump, was quick to note that the conditions that caused the layoffs preceded Mr. Trump’s tariff announcements.

“This has nothing to do with the tariffs,” he said. “Look at the price of vehicles right now. Sales are down. Lots are full.”

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But a representative of Cleveland-Cliffs, whose chief executive has vocally supported Mr. Trump’s trade policy, has told local officials that the tariffs could potentially prolong the layoffs, according to Larry Cuffe Jr., the mayor of Virginia, Minn., another Iron Range town. The company did not respond to requests for comment.

And observers of Minnesota industry say the layoffs — the most serious non-Covid-related job cuts the Iron Range’s mines have experienced in a decade — are a reminder of how uniquely exposed the region is to Mr. Trump’s radical trade experiments: how much it stands to gain or lose — or both — from the shocks the president hopes to deliver to the system.

“It’s throwing a big uncertainty into the supply chain,” said Bob Kill, the chief executive of Enterprise Minnesota, an organization that assists manufacturers in the state. “You see it at the Iron Range happening with raw material.”

The range should in theory benefit from the expanded tariffs on imported steel that Mr. Trump announced in February. But it is also sensitive to shifts and uncertainty in the auto market, as this month’s layoffs have shown. And a trade war with Canada could upend many businesses in the region, which is closer to the Canadian border than to Minneapolis, and raise the price of an array of goods and services, including electricity and dairy products.

“We’re going to ride it out and see,” said Mike Jugovich, a county commissioner and a retired Hibbing Taconite miner in St. Louis County, which encompasses most of the Iron Range. “We don’t have a real choice in the matter. We’re joined at the hip to the tariffs.”

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Most of America’s domestically produced iron has come from northern Minnesota since the turn of the 20th century, when steam shovels backed by Rockefeller and Carnegie money transformed miles of boreal forest into a muddy, sooty sprawl of hard-living frontier camps.

In those years, the mines drew thousands of immigrants from Finland and Croatia and everywhere in between, producing a boomtown culture both wild and cosmopolitan — a place where “the Babel of more than 30 different alien tongues mingles with the crash and clank of machinery,” as a federal immigration agent wrote in a 1912 report.

More than a century later, the Iron Range remains culturally distinct from the rest of the state. In towns like Chisholm, onion-domed churches punctuate residential neighborhoods, red-sauce Italian restaurants line the main drags and bars keep dusty bottles of pelinkovac, a Balkan wormwood liqueur, on the top shelf for the old-timers.

Many go back generations in the mines, their family trees intertwined with histories of corporate consolidations and labor strikes, of booms and, more often, busts.

“Anybody who’s lived on the range understands that these are the cycles that occur,” said Pete Hyduke, the mayor of Hibbing, just south of Chisholm, who went into government after he was laid off from his mining job in the 1980s.

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Fewer than half as many miners are now employed on the Iron Range as were at the beginning of the ’80s, when jobs fell victim to technological improvements and to the decline of the domestic steel industry, undercut by cheaper imports and the migration of manufacturing away from the United States.

Today, the range’s fortunes turn largely on trade policy, the push and pull of free-trade agreements and tariffs. This became starkly evident in the 2010s, when China, whose steel production had grown to eclipse every other country’s, began flooding the international market, cutting global prices in half by 2015 and prompting thousands of layoffs at Minnesota’s mines. Since then, “the Iron Range has known that tariffs are important for our domestic production and survival,” said Cal Warwas, a Republican state representative and a steelworker from Clinton Township.

The Obama administration eventually imposed stiff anti-dumping tariffs on China, but the episode exacerbated local discontent with the Democratic Party. Iron Rangers’ fiercely pro-union politics had for decades made the region the great rural redoubt of the Democratic-Farmer-Labor Party, Minnesota’s variant on the Democratic Party. But in a socially conservative area whose fortunes rest on resource extraction, many found themselves dissenting from the D.F.L. on environmental protection and social issues, and convinced that an increasingly urban and suburban party was insufficiently attentive to the range’s economic concerns.

“They’ve become way too woke for me,” said Mr. Cuffe, the Virginia mayor, who left the D.F.L. and endorsed Mr. Trump in 2016.

Mr. Trump outperformed previous Republican candidates in the region in 2016, and endeared himself further by imposing 25 percent tariffs on Chinese steel during his first term. Today, the region’s delegation to the State Legislature is entirely Republican save for one state senator.

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Tariffs on China are broadly supported by Republicans and Democrats alike on the Iron Range. But Mr. Trump’s promises to levy 25 percent tariffs on Canada and similar penalties on cars and car parts imported to the United States have raised alarm.

“I’m very supportive of protectionist policies on industries that matter to our national defense,” said Grant Hauschild, a state senator from Minnesota’s Canada-bordering Third District, and the one remaining Democrat in the Iron Range’s legislative delegation. “However, haphazard, across-the-board tariffs on everything, everywhere, all at once, on allies as well as adversaries, is not the best policy.”

A core issue, manufacturing experts say, is that even the domestic industries Mr. Trump wants to bolster now rely on complex supply chains that run back and forth across borders with regional trading partners, which are difficult to untangle in places like the Great Lakes region.

This is particularly true of the American auto industry, which “is highly dependent on a robust North American supply chain that often involves cross-border trade,” said Matteo Fini, an analyst at S&P Global. American-made catalytic converters are shipped to Canada for installation in exhaust systems that are then shipped back to the United States. American lithium is made into cathodes in Canada, which are assembled into battery packs in the United States and then sent north again for vehicle production.

Jolts to this system may well be felt on the Iron Range, and broader tariffs on Canada, as well as any reciprocal tariffs Canada imposes, will affect the region in other ways. Minnesota utilities buy Canadian hydropower. Paper mills run on Canadian wood pulp. Tourism and Great Lakes shipping, other mainstays of the regional economy, rely on easy border transit.

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The local implications of a trade war are severe enough that some of Mr. Trump’s supporters on the range have concluded that despite his years of tariff evangelism, the president’s recent threats must be a bluff.

“I think it’s just a negotiating tactic to try to get some compromise,” said Mr. Cuffe. He paused. “I’m hoping that’s the case.”

For local Democrats, however, Mr. Trump’s antagonism of their northern neighbors has added confusion to their discontent with the president.

“All this stuff about Canada — I mean, where did it come from?” said Mary Beth Perreira, a retired public health nurse in Hibbing. “If you have a brain, you know that we’re going to pay for it all.”

But others have begun to come around to Mr. Trump’s vision.

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“I don’t mind them hitting Canada,” said Tim Simpson, a retired truck driver from Hibbing.

Mr. Simpson moved away from the region for a time in the 1980s, after losing his job at a local taconite mine. A political independent, he voted for Mr. Trump in 2016 but not in 2024.

Still, he said the president’s trade-war bluster might be good for the Iron Range.

“I hope it straightens a lot of stuff out, and we do get a lot of them jobs back,” he said. “We’ve been losing them since the ’60s, since I was a kid.”

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Trump ally diGenova tapped to lead DOJ probe into Brennan over Russia probe origins

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Trump ally diGenova tapped to lead DOJ probe into Brennan over Russia probe origins

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The Justice Department is turning to former Trump attorney Joeseph diGenova to spearhead a probe into ex-CIA Director John Brennan and others over the origins of the Trump-Russia investigation, as the department reshuffles leadership of the sprawling inquiry.

Acting Attorney General Todd Blanche has tapped diGenova to serve as counsel overseeing the matter, according to a New York Times report, putting a former Trump attorney in a key role in the high-profile probe. A federal grand jury seated in Miami has been impaneled since late last year.

The Department of Justice did not immediately respond to Fox News Digital’s request for comment.

DOJ ACTIVELY PREPARING TO ISSUE GRAND JURY SUBPOENAS RELATING TO JOHN BRENNAN INVESTIGATION: SOURCES

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Joseph diGenova represented President Donald Trump during special counsel Robert Mueller’s investigation. (Tom Williams/CQ-Roll Call/Getty Images)

DiGenova, a former U.S. attorney in Washington, D.C., who represented Trump during special counsel Robert Mueller’s investigation, has repeatedly accused Brennan of misconduct tied to the origins of the Russia probe—allegations that have not resulted in criminal charges.

He also said in a 2018 appearance on Fox News that Brennan colluded with the FBI and DOJ to frame Trump.

The origins of the Russia investigation have been the subject of ongoing scrutiny by Trump allies, who have argued that intelligence and law enforcement officials improperly launched the probe.

BRENNAN INDICTMENT COULD COME WITHIN ‘WEEKS’ AS PROSECUTORS REQUEST OFFICIAL TRANSCRIPTS

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Joseph diGenova has previously said that ex-CIA chief John Brennan colluded with the FBI and DOJ to frame Trump. (Tom Williams/CQ-Roll Call/Getty Images)

DiGenova’s appointment follows the ouster of Maria Medetis Long, a national security prosecutor in the South Florida U.S. attorney’s office. She had been overseeing the inquiry, including a false statements probe related to Brennan and broader conspiracy-related investigations.

As the investigation continues, federal investigators have issued subpoenas seeking information related to intelligence assessments of Russian interference in the 2016 election.

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John Brennan has denied any wrongdoing related to the Russia investigation. (William B. Plowman/NBC/NBC NewsWire via Getty Images; Alex Wong/Getty Images)

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Brennan has previously denied wrongdoing related to the Russia investigation and has defended the intelligence community’s assessment that Moscow interfered in the 2016 election.

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Supreme Court weighs phone searches to find criminals amid complaints of ‘digital dragnets’

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Supreme Court weighs phone searches to find criminals amid complaints of ‘digital dragnets’

A man carrying a gun and a cellphone entered a federal credit union in a small town in central Virginia in May 2019 and demanded cash.

He left with $195,000 in a bag and no clue to his identity. But his smartphone was keeping track of him.

What happened next could yield a landmark ruling from the Supreme Court on the 4th Amendment and its restrictions against “unreasonable searches.” The court will hear arguments on the issue on April 27.

Typically, police use tips or leads to find suspects, then seek a search warrant from a judge to enter a house or other private area to seize the evidence that can prove a crime.

Civil libertarians say the new “digital dragnets” work in reverse.

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“It’s grab the data and search first. Suspicion later. That’s opposite of how our system has worked, and it’s really dangerous,” said Jake Laperruque, an attorney for the Center for Democracy & Technology.

But these new data scans can be effective in finding criminals.

Lacking leads in the Virginia bank robbery, a police detective turned to what one judge in the case called a “groundbreaking investigative tool … enabling the relentless collection of eerily precise location data.”

Cellphones can be tracked through towers, and Google stored this location history data for hundreds of millions of users. The detective sent Google a demand for information known as a “geofence warrant,” referring to a virtual fence around a particular geographic area at a specific time.

The officer sought phones that were within 150 yards of the bank during the hour of the robbery. He used that data to locate Okello Chatrie, then obtained a search warrant of his home where the cash and the holdup notes were found.

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Chatrie entered a conditional guilty plea, but the Supreme Court will hear his appeal next week.

The justices agreed to decide whether geofence warrants violate the 4th Amendment.

The outcome may go beyond location tracking. At issue more broadly is the legal status of the vast amount of privately stored data that can be easily scanned.

This may include words or phrases found in Google searches or in emails. For example, investigators may want to know who searched for a particular address in the weeks before an arson or a murder took place there or who searched for information on making a particular type of bomb.

Judges are deeply divided on how this fits with the 4th Amendment.

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Two years ago, the conservative U.S. Court of Appeals for the 5th Circuit in New Orleans ruled “geofence warrants are general warrants categorically prohibited by the 4th Amendment.”

Chief Justice John Roberts sided with the court’s liberals in a 4th Amendment privacy case in 2018.

(Alex Wong / Getty Images)

Historians of the 4th Amendment say the constitutional ban on “unreasonable searches and seizures” arose from the anger in the American colonies over British officers using general warrants to search homes and stores even when they had no reason to suspect any particular person of wrongdoing.

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The National Assn. of Criminal Defense Lawyers relies on that contention in opposing geofence warrants.

Its lawyers argued the government obtained Chatrie’s “private location information … with an unconstitutional general warrant that compelled Google to conduct a fishing expedition through millions of Google accounts, without any basis for believing that any one of them would contain incriminating evidence.”

Meanwhile, the more liberal 4th Circuit in Virginia divided 7-7 to reject Chatrie’s appeal. Several judges explained the law was not clear, and the police officer had done nothing wrong.

“There was no search here,” Judge J. Harvie Wilkinson wrote in a concurring opinion that defended the use of this tracking data.

He pointed to Supreme Court rulings in the 1970s declaring that check records held by a bank or dialing records held by a phone company were not private and could be searched by investigators without a warrant.

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Chatrie had agreed to having his location records held by Google. If financial records for several months are not private, the judge wrote, “surely this request for a two-hour snapshot of one’s public movements” is not private either.

Google changed its policy in 2023 and no longer stores location history data for all of its users. But cellphone carriers continue to receive warrants that seek tracking data.

Wilkinson, a prominent conservative from the Reagan era, also argued it would be a mistake for the courts to “frustrate law enforcement’s ability to keep pace with tech-savvy criminals” or cause “more cold cases to go unsolved. Think of a murder where the culprit leaves behind his encrypted phone and nothing else. No fingerprints, no witnesses, no murder weapon. But because the killer allowed Google to track his location, a geofence warrant can crack the case,” he wrote.

Judges in Los Angeles upheld the use of a geofence warrant to find and convict two men for a robbery and murder in a bank parking lot in Paramount.

The victim, Adbadalla Thabet, collected cash from gas stations in Downey, Bellflower, Compton and Lynwood early in the morning before driving to the bank.

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After he was robbed and shot, a Los Angeles County sheriff’s detective found video surveillance that showed he had been followed by two cars whose license plates could not be seen.

The detective then sought a geofence warrant from a Superior Court judge that asked Google for location data for six designated spots on the morning of the murder.

That led to the identification of Daniel Meza and Walter Meneses, who pleaded guilty to the crimes. A California Court of Appeal rejected their 4th Amendment claim in 2023, even though the judges said they had legal doubts about the “novelty of the particular surveillance technique at issue.”

The Supreme Court has also been split on how to apply the 4th Amendment to new types of surveillance.

By a 5-4 vote, the court in 2018 ruled the FBI should have obtained a search warrant before it required a cellphone company to turn over 127 days of records for Timothy Carpenter, a suspect in a series of store robberies in Michigan.

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The data confirmed Carpenter was nearby when four of the stores were robbed.

Chief Justice John G. Roberts, joined by four liberal justices, said this lengthy surveillance violated privacy rights protected by the 4th Amendment.

The “seismic shifts in technology” could permit total surveillance of the public, Roberts wrote, and “we decline to grant the state unrestricted access” to these databases.

But he described the Carpenter decision as “narrow” because it turned on the many weeks of surveillance data.

In dissent, four conservatives questioned how tracking someone’s driving violates their privacy. Surveillance cameras and license plate readers are commonly used by investigators and have rarely been challenged.

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Solicitor Gen. D. John Sauer relies on that argument in his defense of Chatrie’s conviction. “An individual has no reasonable expectation of privacy in movements that anyone could see,” he wrote.

The justices will issue a decision by the end of June.

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Trump renews bridge, power plant threat against Iran in push for deal, mocks ‘tough guy’ IRGC

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Trump renews bridge, power plant threat against Iran in push for deal, mocks ‘tough guy’ IRGC

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President Donald Trump mocked the Islamic Revolutionary Guard on Sunday morning for staking claim to a Strait of Hormuz “blockade” the U.S. military had already put in place.

“Iran recently announced that they were closing the Strait, which is strange, because our BLOCKADE has already closed it,” Trump wrote on Truth Social. “They’re helping us without knowing, and they are the ones that lose with the closed passage, $500 Million Dollars a day! The United States loses nothing. 

“In fact, many Ships are headed, right now, to the U.S., Texas, Louisiana, and Alaska, to load up, compliments of the IRGC, always wanting to be ‘the tough guy!’”

Trump declared Saturday’s IRGC fire was “a total violation” of the ceasefire.

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“Iran decided to fire bullets yesterday in the Strait of Hormuz — A Total Violation of our Ceasefire Agreement!” his post began.

“Many of them were aimed at a French Ship, and a Freighter from the United Kingdom. That wasn’t nice, was it? My Representatives are going to Islamabad, Pakistan — They will be there tomorrow evening, for Negotiations.”

Trump remains hopeful about diplomacy, but is not ruling out a return to force, where he once warned about ending “civilation” in Iran as they know it.

“We’re offering a very fair and reasonable DEAL, and I hope they take it because, if they don’t, the United States is going to knock out every single Power Plant, and every single Bridge, in Iran,” Trump’s stern warning continued. 

“NO MORE MR. NICE GUY! 

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“They’ll come down fast, they’ll come down easy and, if they don’t take the DEAL, it will be my Honor to do what has to be done, which should have been done to Iran, by other Presidents, for the last 47 years. IT’S TIME FOR THE IRAN KILLING MACHINE TO END!”

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