Zelenskyy rejects bilateral US-Russia pact to end Moscow’s war against Ukraine

Ukrainian President Volodymyr Zelenskyy said Thursday that his country would not accept any agreement on its fate decided bilaterally by Russia and the United States on how to end Moscow’s three-year war on Ukraine without Kyiv’s involvement.

“We, as an independent country, simply will not be able to accept any agreements without us,” Zelenskyy told reporters as he visited a nuclear plant on his way to the Munich Security Conference, where he plans to meet Friday with U.S. Vice President JD Vance and Secretary of State Marco Rubio.

U.S. President Donald Trump spoke Wednesday with Russian President Vladimir Putin, and they agreed that negotiations to end the war should start immediately, with Trump suggesting the two of them might soon hold a summit in Saudi Arabia. Trump later talked with Zelenskyy and informed him of his discussions with Putin.

On Thursday, Zelenskyy said, “Today it’s important that everything does not go according to Putin’s plan, in which he wants to do everything to make his negotiations bilateral” with the U.S.

Still, on Wednesday, Zelenskyy said after talking with Trump, “We discussed many nuances, diplomatic, military, economic, and President Trump informed me of what Putin told him. We believe that America’s power is enough to, together with us, together with all partners, pressure Russia and Putin toward peace.”

Zelenskyy said he talked with Polish Prime Minister Donald Tusk on Thursday, telling him that “no negotiations with Putin can begin without a united position from Ukraine, Europe, and the U.S. I emphasized that Ukraine must negotiate from a position of strength, with strong and reliable security guarantees, and that NATO membership would be the most cost-effective for partners.”

“Another key guarantee is serious investment in Ukraine’s defense industry. I also warned world leaders against trusting Putin’s claims of readiness to end the war,” Zelenskyy said.

Trump said, in all caps on his Truth Social media platform on Thursday, “Great talks with Russia and Ukraine yesterday. Good possibility of ending that horrible, very bloody war!!!”

Trump’s phone call with Putin came after U.S. Defense Secretary Pete Hegseth told other NATO defense chiefs that Ukraine’s goal of restoring its 2014 borders was unrealistic and that the U.S. does not foresee Ukraine joining NATO, the West’s key military alliance, as part of a negotiated settlement of Russia’s war on Ukraine.

Moscow’s forces now hold about 20% of Ukrainian territory, including the Crimean Peninsula it unilaterally annexed in 2014.

Zelenskyy said it was important for the United States and Ukraine to draw up a plan to end the war before talking to the Russian side. Ukraine has said it is working on a Zelenskyy-Trump meeting, but nothing firm has been announced.

Zelenskyy said he did not discuss the possibility of NATO membership during his phone call with Trump, although he said he knew that the United States was against the idea. NATO’s 32-nation bloc says it is committed to eventual Ukraine NATO membership but not while the Russia-Ukraine war rages.

Russian officials and state-backed media appeared triumphant after Wednesday’s call between Trump and Putin that lasted more than an hour.

“To us, the position of the current [U.S.] administration is much more appealing,” Kremlin spokesman Dmitry Peskov said Thursday.

Dmitry Medvedev, the deputy chair of Russia’s National Security Council, said in an online statement, “The presidents of Russia and the U.S. have talked at last. This is very important in and of itself.”

Trump in the past has declined to say he wants Ukraine to win the war against Russia. On Wednesday, after talking with Putin and Zelenskyy, he said, “I’m backing Ukraine, but I do want security for our money,” with U.S. officials suggesting recently that Ukraine agree to supply the U.S. with rare earth minerals for manufacture of technology products in exchange for continued military support.

China’s fuel demand may have passed its peak, IEA says

London — China’s demand for road and air transport fuels may have passed its peak, the International Energy Agency (IEA) said Thursday, citing data showing that the country’s consumption of gasoline, gasoil and jet fuel declined marginally in 2024. 

Combined consumption of the three fuels in China last year was at 8.1 million barrels per day (bpd), which was 200,000 bpd lower than in 2021 and only narrowly above 2019 levels, the IEA said in a monthly report. 

“This strongly suggests that fuel use in the country has already reached a plateau and may even have passed its peak,” it said. 

After decades of leading global oil demand growth, China’s contribution is sputtering as it faces economic challenges as well as making a shift to electric vehicles (EVs). 

The decline in China’s fuel demand is likely to accelerate over the medium term, which would be enough to generate a plateau in total China oil demand this decade, according to the Paris-based IEA. 

“This remarkable slowdown in consumption growth has been achieved by a combination of structural changes in China’s economy and the rapid deployment of alternative transportation technologies,” the IEA said. 

A slump in China’s construction sector and weaker consumer spending reduced fuel demand in the country, it said, adding that uptake of EVs also weighed.  

New EVs currently account for half of car sales and undercut around 250,000-300,000 bpd of oil demand growth in 2024, while use of compressed and liquified natural gas in road freight displaced around 150,000 bpd, it said. 

Chinese apps face scrutiny in US but users keep scrolling 

Seoul — As a high school junior in the Maryland suburbs of Washington, Daneel Kutsenko never gave much thought to China.

Last month, though, as the U.S. government prepared to ban TikTok – citing national security concerns about its Chinese ownership – Kutsenko downloaded RedNote, another Chinese video-sharing app, which he felt gave him a new perspective on China.

“It just seems like people who live their life and have fun,” Kutsenko told VOA of RedNote, which reportedly attracted hundreds of thousands of U.S. users in the leadup to the now-paused TikTok ban.

Kutsenko’s move is part of a larger trend. Even as U.S. policymakers grow louder in their warnings about Chinese-owned apps, they have become a central part of American life.

TikTok, owned by China’s ByteDance, boasts 170 million U.S. users. China’s AI chatbot DeepSeek surged to the top of Apple’s App Store rankings, including those in the United States, for several days after its release last month.

Another major shift has come in online shopping, where Americans are flocking to digital Chinese marketplaces such as Temu and Shein in search of ultra-low prices on clothes, home goods, and other items.

According to a 2024 survey by Omnisend, an e-commerce marketing company, 70% of Americans shopped on Chinese platforms during the past year, with 20% doing so at least once a week.

Multifaceted threat

U.S. officials warn that Chinese apps pose a broad range of threats – whether to national security, privacy, human rights, or the economy.

TikTok has been the biggest target. Members of Congress attempting to ban the app cited concerns that China’s government could use TikTok as an intelligence-gathering tool or manipulate its algorithms to push narratives favorable to Beijing.

Meanwhile, Chinese commerce apps face scrutiny for their rock-bottom prices, which raise concerns about ethical sourcing and potential links to forced labor, Sari Arho Havrén, an associate fellow at the Royal United Services Institute, a London-based research organization, said in an email conversation with VOA.

“It raises questions of how sustainably these products are made,” Havrén, who focuses on China’s foreign policy and great power competition, said. Moreover, he said, “the pricing simply kills local manufacturers and businesses.”

Many U.S. policymakers also warn Chinese apps pose greater privacy risks, since Chinese law requires companies to share data with the government on request.

‘Curiosity and defiance’

Still, a growing number of Americans appear unfazed. Many young people in particular seem to shrug off the privacy concerns, arguing that their personal data is already widely exposed.

“They could get all the data they want. And anyway, I’m 16 – what are they going to find? Oh my gosh, he goes to school? There’s not much,” Kutsenko said.

Ivy Yang, an expert on U.S.-China digital interaction, told VOA many young Americans also find it unlikely that they would ever be caught up in a Chinese national security investigation.

“What they’re chasing is a dopamine peak. They’re not thinking about whether or not the dance videos or the cat tax pictures they swipe on RedNote are going to be a national security threat,” Yang, who founded the New York-based consulting company Wavelet Strategy, said.

Yang said the TikTok ban backlash and surge in RedNote downloads may reflect a shift in how young Americans see China – not just as a geopolitical rival, but as a source of apps they use in daily life.

She also attributes their skepticism to a broader cultural mindset – one shaped by a mix of curiosity, defiance, and a growing distrust of institutions, including conventional media.

Jeremy Goldkorn, a longtime analyst of U.S.-China digital trends and an editorial fellow at the online magazine ChinaFile, said growing disillusionment with America’s political turmoil and economic uncertainty has intensified these shifts.

“It makes it much more difficult for, particularly, young people to get worked up about what China’s doing when they feel so horrified about their own country,” Goldkorn said during a recent episode of the Sinica podcast, which focuses on current affairs in China.

Polling reflects this divide. A 2024 Pew survey found 81% of Americans view China unfavorably, but younger adults are less critical – only 27% of those under 30 have strongly negative views, compared to 61% of those 65 and older.

Digital barrier

While Chinese apps are expanding in the United States, in many ways the digital divide remains as impenetrable as ever.

China blocks nearly all major Western platforms and tightly controls its own apps, while the U.S. weighs new restrictions on Chinese tech.

Though President Donald Trump paused the TikTok ban, his administration has signaled broader efforts to curb China’s tech influence.

Trump officials have hinted they could take steps to regulate DeepSeek, the Chinese digital chatbot.

The Trump administration also recently signaled it intends to close a trade loophole that lets Chinese retailers bypass import duties and customs checks.

Broader challenges

Even as Washington debates how to handle the rise of Chinese apps, some analysts say the conversation risks obscuring the deeper issue of the broader role of social media itself.

Rogier Creemers, a specialist in digital governance at Leiden University, told VOA that while Chinese apps may raise valid concerns for Western countries, they are just one part of a larger, unaddressed problem.

“There’s a whole range of social ills that emerge from these social media that I think are far more important than anything the Chinese Communist Party could do,” he said, pointing to issues like digital addiction, declining attention spans, and the way social media amplifies misinformation and political unseriousness.

“And that would apply whether these apps are Chinese-owned or American-owned or Tajikistani-owned, as far as I’m concerned,” he added.

The United States, Creemer said, has taken a more hands-off approach to regulating online platforms, in part due to strong free speech protections and pushback by the tech industry.

Apps or influence?

For millions of Americans, the bigger debates about China and digital influence barely register when they open TikTok.

Kutsenko said neither he nor his friends have strong opinions about U.S.-China tensions. They just wanted an alternative to TikTok – one that felt fun, familiar, and easy to use.

It’s a sign that while policymakers see Chinese apps as part of a growing tech rivalry, for many Americans they’re just another way to scroll, shop, and stay entertained, no matter where they come from.

US allies seek clarity on Ukraine support at Munich Security Conference

Hundreds of world leaders and delegates are set to attend the Munich Security Conference this weekend — with conflicts in Ukraine and the Middle East, and simmering tensions in the Indo-Pacific, on the agenda. As Henry Ridgwell reports, all eyes will be on the approach of the U.S. delegation under the new administration of President Donald Trump.

Democratic lawmakers concerned USAID freeze may cause irrevocable harm

U.S. Democratic lawmakers said Wednesday the Trump administration’s freeze of U.S. foreign assistance might permanently damage America’s security and standing abroad. Republicans counter that the review of U.S. Agency for International Development programs is necessary to combat waste and fraud. VOA’s Congressional Correspondent Katherine Gypson has more.

US judge allows Trump to proceed with federal worker deferred retirement

BOSTON, MASSACHUSETTS — A federal judge on Wednesday allowed President Donald Trump’s administration to carry out its federal worker deferred retirement program as the president moves to overhaul and downsize the U.S. government, handing a setback to unions trying to stop the plan.

The decision could clear the way for the Republican president’s administration to swiftly try to wrap up the program, though the unions could ask another court to halt the program.

U.S. District Judge George O’Toole in Boston dissolved an earlier order he issued that had paused the program at the urging of unions representing more than 800,000 federal employees.

O’Toole concluded that the unions lacked legal standing to challenge the rule.

The American Federation of Government Employees and other unions have called the administration’s deferred resignation offer to more than 2 million federal civilian employees unlawful.

“The unions do not have the required direct stake in the Fork directive, but are challenging a policy that affects others, specifically executive branch employees,” wrote O’Toole, an appointee of Democratic former President Bill Clinton. “This is not sufficient.”

The Office of Personnel Management, which announced the program in a January 28 email titled “Fork in the Road,” on Monday told employees it intends to close the program to new entrants as soon as legally permissible.

As of Friday, about 65,000 federal employees had signed up for the buyouts, according to a White House official, as the Trump administration ramps up plans to engage in wide-ranging job cuts throughout the government.

The White House did not immediately respond to a request for comment.

American Federation of Government Employees (AFGE) National President Everett Kelley called the ruling a setback.

“Importantly, this decision did not address the underlying lawfulness of the program,” he said in a statement.

The unions that had filed the lawsuit argued that the plan announced in January was unlawful and that OPM lacked authority to implement the program.

Trump, who began his second term as president on January 20, has appointed Elon Musk a “special government employee” to oversee a sweeping effort called the Department of Government Efficiency with the stated aim of reducing federal spending and reshaping the United States’ 2.2 million-strong federal workforce, potentially purging thousands of workers.

He also signed an executive order on Tuesday to expand Musk’s influence and continue downsizing the federal workforce.

Democrats and other critics have accused Musk, who heads electric carmaker Tesla and rocket company SpaceX, of improperly taking over the federal government. Some federal workers have held protests against Musk’s actions.

In an email that was sent last month to nearly all federal employees, OPM said employees could choose to resign now and retain all pay and benefits until September 30.

The email said employees could remain on the payroll without having to work in person and possibly having their duties reduced or eliminated in the meantime. Interested employees needed only to reply with the word “resign” to take part.

The email’s title and contents mirrored a message that Musk, the world’s richest man, sent to Twitter employees after he acquired the social media platform, now called X, in 2022.

As the deadline approached, the Trump administration had repeated its warning that most federal agencies are likely to be downsized, a message seen by workers as pressure to accept the buyout offer.

The unions in their lawsuit argued that OPM’s buyout directive was “stunningly arbitrary” and violated the Antideficiency Act, a federal law that bars agencies from spending more money than Congress appropriated.

By encouraging employees to broadly quit without regard to their agency, job duties or institutional memory, OPM is ignoring the adverse consequences resignations could have on the government’s ability to function, the unions said.

At the request of the unions, O’Toole last week delayed an initial February 6 deadline for employees to resign to Monday. On that day, he put it on hold pending a further order of the court while he considered the case.

The unions asked that the deadline be put fully on hold to give them time to seek further relief through the courts and ensure that their members can make informed decisions.

Trump pushes for lower interest rates alongside reciprocal tariffs

WASHINGTON — As his trade advisers finalized plans to enact reciprocal measures on every country that charges duties on U.S. imports, President Donald Trump announced Wednesday he will push for lower interest rates alongside his tariff policies.

“Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!! Lets Rock and Roll, America!!!” Trump said on social media Wednesday morning.

To maintain the Federal Reserves’ autonomy from politics, U.S. presidents traditionally avoid even the appearance of meddling in monetary policy and the nation’s interest rates, which is the purview of the central bank.

Trump, however, has not shied from the practice. In a videoconference address to the World Economic Forum in Davos, Switzerland, in January, Trump said he would “demand that interest rates drop immediately.”

“I know interest rates much better than they do,” he said of Fed officials. He has ramped up his criticism of Federal Reserve Chair Jerome Powell, whom he appointed in 2017 for a term that ends in 2026.

Trump’s push to lower interest rates is intended to go hand in hand with punitive measures on trading partners.

The president said Wednesday afternoon that he would approve reciprocal tariffs on Wednesday or Thursday.

“We’re going to be doing reciprocal tariffs,” he said. “Very simply, if they charge us, we charge them.”

Reciprocal tariffs are “absolutely a high priority for the president,” White House economic adviser Kevin Hassett told reporters Wednesday, promising “a lot more action on it today.”

Hassett said the White House has begun negotiations with other countries early to lay the groundwork for imposing such tariffs, although he acknowledged the details about which sectors or how they will be implemented is a “work in progress.”

Under World Trade Organization rules, member countries have the right to impose tariffs on imports. Countries negotiate those rates at the WTO to determine the maximum tariff rate a member country can impose on imports from other member countries.

Inflation, looming trade war

U.S. inflation rose to 3% in January, according to government data released Wednesday. Last month, the annual pace was 2.9%.

Trump campaigned on lowering high consumer prices he blamed on his predecessor, Joe Biden. White House Press Secretary Karoline Leavitt again attributed the increase to the previous administration.

“This is an indictment on the Biden administration’s mismanagement of the inflation crisis and their lack of transparency,” she said during her briefing Wednesday.

Trump wants to lower interest rates and inflation, she said. “He believes that the whole of government economic approach that this administration is taking will result in lower inflation.”

However, some economists warn that combining high tariffs and low interest rates will have the opposite effect.

Trump’s plan reflects a “misunderstanding of how the economy works,” said Joseph Gagnon, senior fellow at the Peterson Institute for International Economics.

“Tariffs raise prices directly, that is inflationary, but also cutting interest rates is inflationary if you do it excessively,” he told VOA. “Especially with today’s data, cutting interest rates would not be a good idea.”

During testimony Tuesday before the Senate Banking Committee, Powell said the Fed was in no rush to cut interest rates because the economy had stabilized. He noted that inflation, while still above the Fed’s 2% target, was at 2.6% last year, and he said the labor market was cooling without plummeting, with the unemployment rate at 4%.

Gagnon also warned of a looming trade war. Trump already had announced Monday his decision to impose 25% tariffs on all steel and aluminum imports beginning March 12.

The duties will hit top U.S. steel supplier Canada, followed by Brazil, Mexico, South Korea and Germany. Additionally, Canada is the leader in aluminum exports to the American market.

European Union chief Ursula von der Leyen vowed on Tuesday the move “will not go unanswered,” saying it will trigger tough countermeasures from the 27-nation bloc, potentially targeting iconic American industries such as bourbon, jeans and motorcycles. EU trade ministers are meeting Wednesday to determine their next moves.

China, Mexico and Canada

Last week, Trump imposed an additional 10% tariff on Chinese goods, which the White House said was aimed at halting the flow of fentanyl opioids and their precursor chemicals.

On Monday China began slapping retaliatory actions on some American goods, including 15% duties on coal and natural gas imports and 10% on petroleum, agricultural equipment, high-emission vehicles and pickup trucks. The country also immediately implemented restrictions on the export of certain critical minerals, and it launched an antitrust investigation into American tech giant Google.

Trump delayed enacting a 25% tariff on goods from Mexico and Canada for a month — until March 4 — to allow negotiations over his demands for the U.S. neighbors to secure their borders and stop the flow of the illegal drug fentanyl.

The duties could affect about $1.323 trillion in trade imports that come from China, Mexico and Canada, according to U.S. government data. This accounts for 43% of U.S. imports and 5% of the $27 trillion U.S. gross domestic product.

If enacted, the new import taxes on Canada, Mexico and China will increase the average tariff rate from its current level of 3% to 10.7% based on contemporary trade patterns, said Joseph Brusuelas, chief economist at financial advisory firm RSM.

“Should the trade skirmishes escalate to include the European Union and turn into an all-out trade war, expect U.S. economic growth to ease back to 2% as the tariffs drag down growth and employment, stoke inflation and widen the current account deficit, all amid higher interest rates,” he wrote on RSM’s Real Economy Blog.

VOA’s Celia Mendoza contributed to this report.

Zimbabwe to pay displaced, foreign white farmers

HARARE, ZIMBABWE — Zimbabwe’s government said Wednesday it will compensate foreign investors who lost assets in the country’s controversial land reforms in the early 2000s but were protected by bilateral investment protection agreements.

Zimbabwean Finance Minister Mthuli Ncube said in a statement the government will pay 94 former farmers from countries such as Switzerland, Denmark, Germany, Netherlands and the former Yugoslavia.

The farmers are covered under Bilateral Investment Protection and Promotion Agreements, or BIPPAs, that Zimbabwe signed with the farmers’ countries.

Ncube said $20 million is being paid out of the 2024 budget and another $20 million would come from the 2025 budget.

“This is a very important issue for our arrears clearance and debt resolution process for Zimbabwe, because some of the countries for which we want support, their farmers, their investors, into Zimbabwe were affected by the land reform program in the early 2000s,” Ncube said. “But we’re only targeting those countries where the BIPPAs were ratified properly.”

The aim, he said, is to have cleared the entire $146 million liability for BIPPA farmers by the end of 2028.

“We believe that this is very important for building trust, for honoring our commitments,” he said.

Zimbabwe’s government is aiming to rebuild its financial reputation after requesting debt relief and restructuring from international financial institutions and other countries in 2022.

According to the African Development Bank, Zimbabwe’s total foreign debt is $21 billion — including interest — which it has been failing to service for years.

However, Eddie Mahembe, an independent economist based in Harare, says resettled farmers, not the government, should pay the $146 million, to prevent increasing the country’s debt.

“Why is the government paying for the farms which were allocated to individuals?” Mahembe said. “They are farming. Some are doing tobacco. They’ve been selling their tobacco over the years, and we are seeing … that there is now a move toward giving them title deals. Why is the government assuming that debt?”

Others are concerned that Harare is paying only former farmers of foreign origin. Displaced white Zimbabwean farmers want to be compensated as well, as per a 2020 agreement.

That agreement called for Harare to pay $3.5 billion to the farmers driven off their land under a program backed by then-President Robert Mugabe starting in 2000.

Trevor Gifford, former head of Zimbabwe’s Commercial Farmers Union, said, “Twenty-five years from the start of land reform in Zimbabwe, the majority of displaced title deed holders remain destitute due to the nonpayment of compensation. The government failed to honor its commitment on paying [on time] under the global compensation agreement, which is now expired.”

He said the government’s move to give title deeds to the farmers who took over the land will create confusion and keep away foreign investors.

“The issuing of title deeds on top of existing title deeds, which have still not been paid for in terms of the international norms for land reform, is reckless and does not create any confidence for prospective investments in Zimbabwe,” Gifford said.

Graham Rae was displaced from his farm about 100 kilometers east of Harare and is now farming in neighboring Zambia. He said that until he is compensated, he will not surrender title deeds to the land for which he was dispossessed.

“You can’t steal a car and then sell it to me and think you’ve washed your hands and now it’s a legal car,” Rae said. “It’s still illegal and by the mere fact that I’m buying a stolen car from you, I’m complicit in the theft, so there are going to be lots of problems. I find that fraudulent, I just find that very sad that Zimbabwe has regressed into a basket case where there’s no rule of law, and that the rule really is at the barrel of a gun — if you don’t agree, you disappear.”

For now, the Zimbabwe government says it will issue titles to the resettled farmers so that they can use them to borrow money for capitalization of their businesses.

Pressure builds on US over future of its military presence in Syria

The future of the United States’ military presence in Syria is in question, with President Donald Trump facing competing demands from Turkey and Israel over the 2,000-strong force that is supporting a Syrian Kurdish-led coalition fighting Islamic State. Israel wants the U.S. to keep supporting Kurdish forces in Syria, while Turkey opposes that strategy. Dorian Jones reports from Istanbul.

Trump pushes for lower interest rates alongside tariffs

WASHINGTON — As his trade advisers finalized plans to enact reciprocal measures on every country that charges duties on U.S. imports, President Donald Trump announced Wednesday he will push for lower interest rates alongside his tariff policies.

“Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!! Lets Rock and Roll, America!!!” Trump said on social media Wednesday morning.

To maintain the Federal Reserves’ autonomy from politics, U.S. presidents traditionally avoid even the appearance of meddling in monetary policy and the nation’s interest rates, which is the purview of the central bank.

Trump, however, has not shied from the practice. In a videoconference address to the World Economic Forum in Davos, Switzerland, in January, Trump said he would “demand that interest rates drop immediately.”

“I know interest rates much better than they do,” he said of Fed officials. He has ramped up his criticism of Federal Reserve Chair Jerome Powell, whom he appointed in 2017 for a term that ends in 2026.

Trump’s push to lower interest rates is intended to go hand in hand with punitive measures on trading partners.

Reciprocal tariffs are “absolutely a high priority for the president,” White House economic adviser Kevin Hassett told reporters Wednesday, promising “a lot more action on it today.”

Hassett said the White House has begun negotiations with other countries early to lay the groundwork for imposing such tariffs, although he acknowledged the details about which sectors or how they will be implemented is a “work in progress.”

Under World Trade Organization rules, member countries have the right to impose tariffs on imports. Countries negotiate those rates at the WTO to determine the maximum tariff rate a member country can impose on imports from other member countries.

Inflation, looming trade war

U.S. inflation rose to 3% in January, according to government data released Wednesday. Last month, the annual pace was 2.9%.

Trump campaigned on lowering high consumer prices he blamed on his predecessor, Joe Biden. White House Press Secretary Karoline Leavitt again attributed the increase to the previous administration.

“This is an indictment on the Biden administration’s mismanagement of the inflation crisis and their lack of transparency,” she said during her briefing Wednesday.

Trump wants to lower interest rates and inflation, she said. “He believes that the whole of government economic approach that this administration is taking will result in lower inflation.”

However, some economists warn that combining high tariffs and low interest rates will have the opposite effect.

Trump’s plan reflects a “misunderstanding of how the economy works,” said Joseph Gagnon, senior fellow at the Peterson Institute for International Economics.

“Tariffs raise prices directly, that is inflationary, but also cutting interest rates is inflationary if you do it excessively,” he told VOA. “Especially with today’s data, cutting interest rates would not be a good idea.”

During testimony Tuesday before the Senate Banking Committee, Powell said the Fed was in no rush to cut interest rates because the economy had stabilized. He noted that inflation, while still above the Fed’s 2% target, was at 2.6% last year, and he said the labor market was cooling without plummeting, with the unemployment rate at 4%.

Gagnon also warned of a looming trade war. Trump already had announced Monday his decision to impose 25% tariffs on all steel and aluminum imports beginning March 12.

The duties will hit top U.S. steel supplier Canada, followed by Brazil, Mexico, South Korea and Germany. Additionally, Canada is the leader in aluminum exports to the American market.

European Union chief Ursula von der Leyen vowed on Tuesday the move “will not go unanswered,” saying it will trigger tough countermeasures from the 27-nation bloc, potentially targeting iconic American industries such as bourbon, jeans and motorcycles. EU trade ministers are meeting Wednesday to determine their next moves.

China, Mexico and Canada

Last week, Trump imposed an additional 10% tariff on Chinese goods, which the White House said was aimed at halting the flow of fentanyl opioids and their precursor chemicals.

On Monday China began slapping retaliatory actions on some American goods, including 15% duties on coal and natural gas imports and 10% on petroleum, agricultural equipment, high-emission vehicles and pickup trucks. The country also immediately implemented restrictions on the export of certain critical minerals, and it launched an antitrust investigation into American tech giant Google.

Trump delayed enacting a 25% tariff on goods from Mexico and Canada for a month — until March 4 — to allow negotiations over his demands for the U.S. neighbors to secure their borders and stop the flow of the illegal drug fentanyl.

The duties could affect about $1.323 trillion in trade imports that come from China, Mexico and Canada, according to U.S. government data. This accounts for 43% of U.S. imports and 5% of the $27 trillion U.S. gross domestic product.

If enacted, the new import taxes on Canada, Mexico and China will increase the average tariff rate from its current level of 3% to 10.7% based on contemporary trade patterns, said Joseph Brusuelas, chief economist at financial advisory firm RSM.

“Should the trade skirmishes escalate to include the European Union and turn into an all-out trade war, expect U.S. economic growth to ease back to 2% as the tariffs drag down growth and employment, stoke inflation and widen the current account deficit, all amid higher interest rates,” he wrote on RSM’s Real Economy Blog.

VOA’s Celia Mendoza contributed to this report.

Trump vows to ‘immediately’ negotiate for end to Ukraine war

President Donald Trump announced Wednesday he and Russia’s leader agreed in a phone call to “immediately” begin negotiations with Ukraine’s leader to bring an end to the nearly three-year-conflict.  

“We will begin by calling President Zelenskyy, of Ukraine, to inform him of the conversation, something which I will be doing right now,” Trump said on his social media platform Truth Social. “I have asked Secretary of State Marco Rubio, Director of the CIA John Ratcliffe, National Security Advisor Michael Waltz, and Ambassador and Special Envoy Steve Witkoff, to lead the negotiations which, I feel strongly, will be successful.”

Trump did not specify what the terms might be to end the Russia-Ukraine conflict. But Secretary of Defense Pete Hegseth, in Germany Wednesday for a meeting of the Ukraine Defense Contact Group, ruled out a key demand by Ukraine’s: eventual membership in NATO.

“The United States does not believe that NATO membership for Ukraine is a realistic outcome of a negotiated settlement,” Hegseth said.  

Trump’s top hostage negotiator on Wednesday credited Trump’s “great friendship” with Russia’s leader and with Saudi Arabia’s prince as key in releasing American teacher Marc Fogel from Russian custody late Tuesday.  

“I think that getting Mark Fogel out was critical and the Russians were very, very helpful in that effort and very accommodating,” Witkoff said, speaking to reporters at the White House. “And I think that’s maybe a sign about how that working relationship between President Trump and President Putin will be in the future and what that may portend for the world at large for conflict and so forth. I think they had a great friendship. And I think now it’s going to continue and it’s a really good thing for the world.”

Trump welcomed Fogel to the White House late Tuesday. He had been detained since August 2021 for bringing medically prescribed marijuana into the country.  

“I feel like the luckiest man on Earth right now,” Fogel said as he stood next to Trump at the White House late Tuesday.

Trump said he appreciated what Russia did in letting Fogel go home but declined to specify the details of any agreement with Russia beyond calling it “very fair” and very reasonable.”  

Trump also said another hostage release would be announced Wednesday.  

Waltz, Trump’s national security adviser, said earlier Tuesday the United States and Russia “negotiated an exchange” to free Fogel but gave no details about what the U.S. side of the bargain entailed. In such deals in recent years, the U.S has often released Russian prisoners that Moscow wanted in exchange.  

Instead, Waltz cast the deal for Fogel’s release in broader geopolitical terms, saying it was “a show of good faith from the Russians and a sign we are moving in the right direction to end the brutal and terrible war in Ukraine,” an invasion Russia launched against its neighbor in February 2022, with hundreds of thousands killed or wounded on both sides.  

Trump had vowed to broker an end to Russia’s war on Ukraine before taking office January 20, but his aides more recently have said he hopes to do it within the first 100 days of his new administration, roughly by the end of April.  

“Since President Trump’s swearing-in, he has successfully secured the release of Americans detained around the world, and President Trump will continue until all Americans being held are returned to the United States,” Waltz said. The recent release of six Americans held in Venezuela and Fogel’s freeing are the only publicly known instances.  

Fogel had been traveling with a small amount of medically prescribed marijuana to treat back pain. Once convicted by a Russian court, he began serving his 14-year sentence in June 2022, with the outgoing administration of former President Joe Biden late last year classifying him as wrongfully detained. 

Senate approves Trump’s nominee to lead US intelligence

WASHINGTON — U.S. President Donald Trump’s effort to overhaul the country’s intelligence apparatus appears set to move forward, with lawmakers confirming Tulsi Gabbard as the nation’s next director of national intelligence.

The Senate voted 52-48 in favor of Gabbard on Wednesday, narrowly rejecting concerns about her experience and past statements on leaks of classified intelligence and other matters.

Gabbard got support from every Republican senator except for former Majority Leader Mitch McConnell, who joined Democrats in opposing her confirmation.

“The intelligence community needs to refocus on its core mission — collecting intelligence and providing unbiased analysis of that information,” said Republican Majority Leader John Thune, praising Gabbard on Monday as lawmakers began debating her nomination.

“That’s what Tulsi Gabbard is committed to ensuring,” Thune said. “And I believe she has the knowledge and leadership capabilities to get it done.”

Democrats were less enthusiastic, making last minute pleas to their Republican colleagues to reject Gabbard.

“We simply cannot, in good conscience, trust our most classified secrets to someone who echoes Russian propaganda and falls for conspiracy theories,” said Minority Leader Chuck Schumer, addressing lawmakers before Wednesday’s vote.

Schumer also alleged that most Republicans secretly agree.

“If we had a secret ballot, Gabbard might get 10 votes,” he said. “People know. That’s why they raise so many questions. But Donald Trump and Elon Musk evidently threaten them, and they’re changing their view.”

Trump selected Gabbard in November, praising her “fearless spirit.”

But the former Democratic representative from the state of Hawaii and one-time Democratic presidential candidate faced criticism from Democrats and some Republicans. Gabbard’s nomination to serve as director of national intelligence advanced to the full Senate by a 9-8 party-line vote in the Senate Intelligence Committee.

“It’s fair to say Ms. Gabbard’s nomination has generated a bit more interest and attention than do most nominees before this committee,” Senate Intelligence Committee Chairman Tom Cotton, a Republican, acknowledged during Gabbard’s confirmation hearing late last month.

During the hearing, Gabbard was questioned repeatedly by Republicans and Democrats about Edward Snowden, a former National Security Agency contractor accused of leaking thousands of classified documents before ultimately fleeing to Russia, and specifically about legislation she introduced to pardon him.

Each time they asked whether she considered Snowden a traitor, Gabbard declined to answer.

“Senator, my heart is with my commitment to our Constitution and our nation’s security,” Gabbard said during once exchange with Republican Senator James Lankford.

Senators also questioned Gabbard about a 2017 trip to Syria, during which she met with then-Syrian President Bashar al-Assad, despite allegations he had used chemical weapons against civilians, and about her comments about Russia’s February 2022 invasion of Ukraine.

“I continue to have significant concerns about your judgment and your qualifications,” said Warner, a Democrat. “Repeatedly, you have excused our adversaries’ worst actions, [and] instead often blame them on the United States.”

Gabbard, however, managed to find common ground with the committee’s Republican senators, winning over Susan Collins and Todd Young.

Young also shared a letter from Gabbard in which she pledged to hold U.S. intelligence employees and contractors accountable for intelligence leaks and to “not advocate for any protections which should only be extended to lawful and legitimate whistleblowers.”

Gabbard further promised to not make any recommendation “regarding the legal standing of Edward Snowden” to the U.S. attorney general or to Trump.

And she pledged to support the use of warrantless surveillance capabilities despite her opposition to the program while she was a lawmaker.

VOA Congressional Correspondent Katherine Gypson contributed to this report.

Cost of groceries, gas goes up as US inflation worsens

WASHINGTON — U.S. inflation accelerated last month as the cost of groceries, gas and used cars rose, a disappointment for families and businesses struggling with higher costs and likely underscoring the Federal Reserve’s resolve to delay any further interest rate cuts.

The consumer price index increased 3% in January from a year ago, Wednesday’s report from the Labor Department showed, up from 2.9% the previous month. It has increased from a 3½-year low of 2.4% in September.

The figures show that inflation has remained stubbornly above the Fed’s 2% target for roughly the past six months, after it fell steadily for about a year and a half. Elevated prices created a major political problem for former President Joe Biden. President Donald Trump pledged to reduce prices in last year’s campaign, although most economists worry that his many proposed tariffs could at least temporarily increase costs.

The unexpected boost in inflation could dampen some of the business enthusiasm that arose after Trump’s election on promises to reduce regulation and cut taxes. Dow futures tumbled 400 points, and all major markets are likely to sell off at the opening bell. Bond yields rose, a sign traders expect inflation and interest rates to remain high.

Excluding the volatile food and energy categories, core consumer prices rose 3.3% in January compared with a year ago, up from 3.2% in December. Economists closely watch core prices because they can provide a better read of inflation’s future.

Month-to-month inflation

Inflation also worsened monthly, with prices jumping 0.5% in January from December, the largest increase since August 2023. Core prices climbed 0.4% last month, the most since March 2024.

Grocery prices climbed 0.5% just in January, pushed higher by a 15.2% surge in egg prices, the biggest monthly increase since June of 2015. Egg prices have soared 53% compared with a year ago.

An avian flu epidemic has forced many egg producers to cull millions of birds from their flocks. Some stores have imposed limits on egg purchases, and some restaurants have placed surcharges on egg dishes.

The cost of car insurance continues to rise and picked up 2% just from December to January. Hotel prices rose 1.4% last month, while the cost of a gallon of gas moved up 1.8%.

Inflation often jumps in January as many companies raise their prices at the beginning of the year, although the government’s seasonal adjustment process is supposed to filter out those effects.

Later Wednesday, Federal Reserve Chair Jerome Powell will testify before the House Financial Services Committee, where he will likely be asked about inflation and the Fed’s response to it. The Fed raised its benchmark rate in 2022 and 2023 to a two-decade high of 5.3% to combat inflation. With inflation down significantly from its 9.1% peak in June 2022, it cut its rate to about 4.3% in its final three meetings last year.

Interest rates and tariffs

Early Wednesday, Trump said on social media that interest rates should be lowered, “something which would go hand in hand with upcoming Tariffs!!!” Yet the tick up in consumer prices makes it less likely the Fed will cut rates anytime soon.

Fed officials are mostly confident that inflation over time will head lower, but they want to see further evidence that it is declining before cutting their key rate any further. The Fed’s rate typically influences other borrowing costs for things such as mortgages, auto loans and credit cards.

Inflation’s recent uptick is a major reason the Federal Reserve has paused its interest rate cuts, after implementing three of them last year. “We do not need to be in a hurry” to implement further reductions, Powell said Tuesday in testimony to the Senate Banking Committee.

The Trump administration’s tariff policy could lift prices in the coming months. Trump on Monday imposed 25% taxes on steel and aluminum imports and has pledged to impose more tariffs. Economists at Goldman Sachs forecast that yearly core inflation would fall almost a full percentage point, to 2.3%, by the end of this year, absent any import duties. But they expect tariffs will raise end-of-year inflation to 2.8%.

On Tuesday, Powell acknowledged that higher tariffs could lift inflation and limit the central bank’s ability to cut rates, calling it “a possible outcome.”

But he emphasized that it would depend on how many imports are hit with tariffs and for how long.

“In some cases, it doesn’t reach the consumer much, and in some cases it does,” Powell said. “And it really does depend on facts that we haven’t seen yet.”