Tag Archives: President Trump

Iran says defense capabilities not negotiable amid U.S. pressure

Iran says defense capabilities not negotiable amid U.S. pressure

BEIRUT (Reuters) – Iran’s defense capabilities are not negotiable, Supreme Leader Ayatollah Ali Khamenei said Wednesday in remarks made previously but which now come amid increased pressure from the U.S. government over Tehran’s ballistic missile program.

Ties between Iran and the United States have deteriorated under U.S. President Donald Trump and suffered another deep blow two weeks ago when he decided not to certify that Tehran is complying with a 2015 nuclear pact and warning he might ultimately terminate it.

Iran has reacted defiantly, dismissing Trump’s demands for the pact to be toughened up. Last week, Iran’s elite Revolutionary Guards, the most powerful military force in the country, said its ballistic missile program would accelerate despite U.S. and European Union pressure to suspend it.

“The defense capabilities and strength of the country are not negotiable or up for haggling,” Khamenei was cited as saying at a ceremony at the Imam Ali army officer’s academy in Tehran, according to state media.

The ramping up of rhetoric on both sides has raised the specter of a possible military confrontation between the two countries. In recent months, small boats from the Revolutionary Guards navy have swarmed close to American warships in the Gulf, prompting the U.S. navy to fire flares and warning shots.

Under the landmark 2015 deal between Iran and world powers, the Islamic Republic agreed to curbs on its nuclear program in exchange for the lifting of a number of sanctions.

The U.S. Senate is considering new legislation which could lead to Washington restoring sanctions on Iran should it test a ballistic missile able to carry a warhead or bar nuclear inspectors from any sites.

In response, Khamenei said last week that Tehran would stick to the nuclear accord with world powers as long as the other signatories respected it, but would “shred” the deal if Washington pulled out.

(Reporting By Babak Dehghanpisheh; Editing by Raissa Kasolowsky)

Trump to release JFK files, subject to ‘further information’

Roses lie on a marker outside the home where President John F. Kennedy was born 100 years ago on May 29, 1917, in Brookline, Massachusetts, U.S., May 29, 2017. REUTERS/Brian Snyder

WASHINGTON (Reuters) – U.S. President Donald Trump said on Saturday that, subject to receipt of further information, he planned to allow the opening of long-secret files on the November 1963 assassination of President John F. Kennedy that are scheduled for release next week.

Politico magazine earlier quoted Trump administration and other U.S. government officials as saying the president would almost certainly block the release of information from some of the thousands of classified files, which the U.S. National Archives is due to make public by an Oct. 26 deadline. (http://politi.co/2yGjMtr)

“Subject to the receipt of further information, I will be allowing, as President, the long blocked and classified JFK FILES to be opened,” Trump said in a tweet.

The Nov. 22 1963 assassination cut short “Camelot,” as the 1,000 days of the Kennedy presidency became known. Kennedy was 46 when he died and remains one of the most admired U.S. presidents.

Thousands of books, articles, TV shows, movies and documentaries have been produced about the assassination and surveys have shown that a majority of Americans still distrust official evidence that points to Lee Harvey Oswald as the sole killer.

Despite serious questions about the official inquest, and theories purporting that organized crime, Cuba or a cabal of U.S. security agents was involved, conspiracy theorists have yet to produce conclusive proof that Oswald acted in consort with anyone.

Over the years, the National Archives has released most documents related to the case, but a final batch remains and only Trump has the authority to decide whether some should continue to be withheld or released in redacted form.

The Washington Post and other media have quoted officials as saying that government agencies have lobbied Trump to withhold some of the documents, arguing that some of the more recent files could expose relatively recent intelligence and law enforcement operations.

Saturday’s Washington Post said Kennedy assassination experts do not think the last batch of papers contains any major bombshells, but may shed light on the activities of Oswald while he was traveling in Mexico City in late September 1963, and courting Cuban and Soviet spies.

(Reporting by David Brunnstrom; Editing by Lisa Von Ahn and Nick Zieminski)

Iran’s Guards flex muscle in Middle East despite Trump warning

FILE PHOTO: Members of Iran's Revolutionary Guards march during a military parade to commemorate the 1980-88 Iran-Iraq war in Tehran September 22, 2007. REUTERS/Morteza Nikoubazl/File Photo

By Babak Dehghanpisheh

BEIRUT (Reuters) – A week after U.S. President Donald Trump delivered a blistering speech about Iran’s Revolutionary Guards, the most powerful military and economic force in the Islamic Republic has shown it has no intention of curbing its activities in the Middle East.

In defiance of other world powers, Trump chose in a speech last Friday not to certify that Tehran is complying with a pact to curb Iran’s nuclear work and singled out the Islamic Revolutionary Guard Corps (IRGC), accusing Tehran of destabilizing the region.

A senior IRGC commander said after the speech Trump was “acting crazy” and was following U.S. strategy of increasing “the shadow of war in the region”.

Iran’s Shi’ite militia proxies have made formidable military gains in recent months in Syria as well as Iraq, stretching from northern Iraq to a string of smaller cities and this week, after the Trump speech, re-captured the oil-rich city of Kirkuk.

“In the short-run clearly Trump has increased the power and aggressiveness of the IRGC,” said Abbas Milani, the director of the Iranian Studies program at Stanford University.

“The IRGC can’t back down from a street fight. Their domestic and regional prestige is predicated on the fact that they fight a good fight and they don’t back down.”

The day after Trump spoke, the head of the Guards’ al Quds overseas operations, Major General Qassem Soleimani, traveled to Iraq’s Kurdistan region. He held talks about the escalating crisis between Kurdish authorities and the Iraqi government after a Kurdish independence referendum.

The niece of the late Kurdish leader Jalal Talabani, Alaa Talabani, told the al Hadath TV channel that Soleimani met with members of her family on Saturday. He had come to pay respects to Jalal, a former Iraqi president and founder of the Patriotic Union of Kurdistan (PUK) party who died this month.

Other Iraqi and Kurdish officials told Reuters Soleimani held meetings with Kurdish leaders to persuade them to retreat from Kirkuk ahead of the Iraqi army push into the city.

“I don’t deny that Mr. Qassem Soleimani gave us the advice to find a solution to Kirkuk,” she said. “He said Kirkuk should return to the (Iraqi) law and constitution and to have an agreement about Kirkuk and give up the intransigence about the referendum which was a decision not thought out.”

LIGHTNING ASSAULT

Within days, Iran’s mostly Shi’ite allies in Baghdad launched a lightning assault, pushing Kurdish fighters out of disputed territories such as Kirkuk and consequently strengthening Iran’s hand in Iraq.

Commanders of the Kurdish forces, known as the Peshmerga, have accused Iran of orchestrating the Shi’ite-led Iraqi central government’s push into areas under their control, a charge senior Iranian officials have denied.

A video posted by the Kurdish Rudaw channel online on Wednesday showed an Iraqi Shi’ite militiaman loyal to Iran hanging a picture of Iran’s Supreme Leader Ayatollah Ali Khamenei in the Kirkuk governorate office.

Iran, which has a large Kurdish minority, has reason to be wary of Iraqi Kurdish independence. It fears it might encourage its own Kurds, who have also pushed for separatism.

After the independence vote in Iraqi Kurdistan on September 25, videos posted online showed hundreds of people celebrating in the streets in the Kurdish areas of Iran.

FRONT-LINE PLAYER

Regional analysts say the emergence of Iran in Iraq, Syria, Kurdistan and Lebanon, where it wields influence through its allied Shi’ite Lebanese Hezbollah militia, means Tehran has become a front-line player in the region which Washington could not afford to ignore.

“Trump’s stupidity should not distract us from America’s deceitfulness … If the U.S. tears up the (nuclear) deal, we will shred it,” said Khamenei. “Americans are angry because the Islamic Republic of Iran has managed to thwart their plots in Lebanon, Syria, Iraq and other countries in the region.”

Speaking after Trump’s speech, Amir Ali Hajizadeh, head of the Guards’ aerospace division, said: “From the start of the Islamic revolution … (presidents) have increased the shadow of war in the region …

“Dear brothers and sisters today Trump is acting crazy to gain concessions through this method.”

The ramping up of tension could put the two countries on a collision course in the Gulf where clashes have only been narrowly avoided in recent months.

Small boats from the Revolutionary Guards’ navy veered close to U.S. naval vessels in the Gulf at least twice this year, prompting the U.S. military to fire warning shots and flares.

In August, an unarmed Iranian drone came within 100 feet (31 meters) of a U.S. Navy warplane, risking a crash, according to a U.S. official.

Some recent naval showdowns between Iran and the United States took place near the Strait of Hormuz, a waterway where up to 30 percent of global oil exports pass annually.

During the presidential campaign last September, Trump vowed that any Iranian vessels that harassed the U.S. Navy in the Gulf would be “shot out of the water”.

POTENTIAL FLASHPOINT

The Guards could also target U.S. forces in Iraq and Syria through tens of thousands of loyal Shi’ite militia fighters without directly acknowledging a role in any attacks.

“The IRGC can claim ignorance of Shi’ite militia attacks against the U.S. military,” said Ali Alfoneh, a senior fellow at the Atlantic Council who has done extensive research on the Guards.

In early October, an American soldier was killed in Iraq by an explosively formed penetrator, or EFP, a type of roadside bomb which was often used by Iran’s Shi’ite militia proxies in Iraq, according to the U.S. military.

“This is the first time that we’ve seen it used in this area,” U.S. Army Colonel Ryan Dillon, a coalition spokesman, said. Dillon said the U.S. military has not yet concluded who carried out the attack.

Dozens of American soldiers in Iraq were killed and injured by EFPs used by militia groups linked to Iran after the 2003 invasion of Iraq by U.S. forces, according to the U.S. military.

Asked about the threat posed by Shi’ite militias allied with Iran in Iraq and Syria, particularly after Trump’s speech, Dillon said: “We’re always assessing the threats no matter where they come from. During certain announcements or certain dates or when certain events happen, we make proper adjustments.”

Trump’s new plan, observers say, will also weaken a group that had made progress in curbing the Guards’ political and economic ambitions in recent years: Iranian President Hassan Rouhani and the pragmatist politicians in his cabinet.

Since becoming president in 2013, Rouhani and members of his cabinet repeatedly pushed back against the Guards’ economic influence and involvement in political matters.

Now, Rouhani’s push against the Guards has been tempered because of the hardening in Trump’s approach to Tehran, regional observers said. “What this has done is that even those who were critics are now defending the Revolutionary Guards,” said Nasser Hadian-Jazy, a political science professor at Tehran University.

(Reporting By Babak Dehghanpisheh and additional reporting by Maher Chmaytelli in Erbil, editing by Nick Tattersall and Peter Millership)

EU leaders talk up Iran nuclear deal hoping to save it from Trump

EU leaders talk up Iran nuclear deal hoping to save it from Trump

By Gabriela Baczynska

BRUSSELS (Reuters) – European Union leaders on Thursday reaffirmed their full commitment to the 2015 nuclear deal between Iran and world powers, hoping that the U.S. Congress would not let it collapse despite relentless criticism by President Donald Trump.

But the bloc, reluctant to isolate itself completely from Washington, is also stepping up criticism of Iran’s ballistic missile program and its role in what the West sees as fomenting instability in the Middle East.

Trump last week adopted a harsh new approach to Iran by refusing to certify its compliance with the nuclear deal, struck with the United States and five other powers including Britain, France and Germany after more than a decade of diplomacy.

“We fully stay committed to the complete implementation by all sides of the Iranian nuclear deal. We see this as a key security interest for the European Union and the region,” said the bloc’s top diplomat, Federica Mogherini.

The EU leaders’ joint statement, agreed after talks in Brussels on Thursday, “reaffirms full commitment to the Iran nuclear deal”.

The bloc has been stepping up efforts to save the deal, saying it was crucial to regional and global security, and it has appealed to the U.S. Congress not to let it fall.

Trump has given Congress 60 days to decide whether to reimpose economic sanctions on Iran, lifted under the pact in exchange for the scaling down of a program the West fears was aimed at building a nuclear bomb, something Tehran denies.

The EU leaders also highlighted the need to protect their companies and investors dealing with Iran from any adverse effects should Washington reinstate the sanctions, officials said.

Should Trump walk away from the deal, Supreme Leader Ayatollah Ali Khamenei said on Wednesday that Iran would “shred” it.

The bloc sees the agreement as a chief international success of recent years, and fears tearing it apart would hurt its credibility as well as harming diplomatic efforts to defuse tensions around a nuclear stand-off with North Korea.

In outlining his tougher stance, Trump said Tehran must also be held accountable for advancing its ballistic missile program and its regional political role.

“We will defend the nuclear deal and stand by the nuclear deal and implement the nuclear deal. But we also don’t want to be standing on a completely opposing side to the U.S.,” an EU official said.

“If they withdraw, we would be left in a rather interesting company with China and Russia. So there may be an issue of separating the nuclear deal from the ballistic program and Iran’s regional role, sending signals on the latter two.”

Iran’s elite Islamic Revolutionary Guards (IRGC) said on Thursday the ballistic missile program would accelerate despite U.S. and EU pressure to suspend it, the semi-official Tasnim news agency reported.

The EU, which has expressed “concerns related to ballistic missiles and increasing tensions” in the Middle East, has said these issues should be discussed without direct links to the nuclear deal.

“They were never very fond of the nuclear deal in the first place but now the situation has changed a lot. Both many Democrats as well as some Republicans feel like they need to play a more active role on foreign policy to restrain the president,” the official said.

(Reporting by Gabriela Baczynska; Editing by John Stonestreet, Toni Reinhold)

Obamacare whiplash leaves states, insurers with dueling price plans

FILE PHOTO: U.S. President Donald Trump smiles after signing an Executive Order to make it easier for Americans to buy bare-bone health insurance plans and circumvent Obamacare rules at the White House in Washington, U.S., October 12, 2017. REUTERS/Kevin Lamarque/File Photo

By Caroline Humer

NEW YORK (Reuters) – President Donald Trump’s reversals in the past week on maintaining Obamacare subsidies to insurers are sowing new confusion over what kind of health insurance will be available to consumers, and at what price, when enrollment for 2018 begins in two weeks.

Trump said last week his administration would stop paying billions of dollars in subsidies that help insurers give discounts to low-income households, one of several moves to dismantle the signature healthcare law of his Democratic predecessor, Barack Obama.

Since then, Trump has alternately supported, and dismissed, an effort by Republican and Democratic senators that would reinstate the subsidies for two years, until a broader replacement to the 2010 Affordable Care Act, commonly known as Obamacare, can be negotiated.

“We are worried that consumers on (Obamacare) plans will be confused by all the back and forth and proposed policy changes and that this will cause them to not seek out assistance,” said Bryna Koch, special projects coordinator at the Arizona Center for Rural Health, which helps consumers choose and sign up for individual health plans offered under Obamacare.

Trump, who promised during his election campaign to repeal and replace Obamacare, which he has called a “disaster,” has said the subsidies amount to a bailout for insurance companies.

By law, health insurers must still offer the discounts on deductibles, co-pays and other out-of-pocket costs, even if the government stops reimbursing them. Insurers say they do not profit from the subsidies.

Anticipating Trump’s move, insurers proposed higher prices on monthly premiums in 2018 to recoup the money. In all but a handful of states, they submitted two sets of premium rates – a lower rate to use if the subsidies remained, and a higher rate to use if the funding was cut.

LAST WORD ON SUBSIDIES?

The fate of the subsidies remained in limbo on Thursday. A senior White House aide said that Trump would demand steps toward repealing Obamacare in any healthcare legislation, comments that cast doubt on the prospects for the bipartisan effort to shore up insurance markets.

A California court is expected to consider on Monday a request by Democratic attorneys general to keep the subsidies flowing until a legal challenge to Trump’s decision is resolved.

If the funding is not restored when 2018 enrollment opens on Nov. 1, many consumers will see premium rates that are on average 20 percent higher than they would have been otherwise.

Even before Trump’s decision on the subsidies, the Congressional Budget Office said the Republican president’s policies to roll back Obamacare enrollment efforts would lead to 4 million fewer people signing up for insurance in 2018 than previously forecast. The CBO still expects 11 million people to sign up for next year – an increase from this year’s enrollment of 10 million.

The federal government has already halted a subsidy payment to the insurance industry for October. But leading insurers are not yet sure whether that is the last word.

Anthem Inc Chief Executive Officer Joseph Swedish told Reuters he could not yet predict how ending the subsidies or restating them through “potential congressional action” would affect pricing next year. Anthem has submitted premium rates that account for the subsidies being cut.

Should the subsidies be restored at any time after Nov. 1, insurers may be able to revert to the lower monthly premium rates, or provide rebates for consumers.

“A midyear change in premiums would be highly unusual, but this would be the right thing to do,” said Marc Harrison, CEO of Intermountain Healthcare, a Utah-based health plan and hospital chain. “Intermountain Healthcare would pursue this.”

Washington state’s insurance regulator said it would allow insurers to change rates as soon as practical – even the next month – if lawmakers reinstate the funding, an approach backed by the National Association of Insurance Commissioners. But that could run up against federal government objections.

The Affordable Care Act does not allow for changes to premium rates after they have been finalized, an official for the U.S. Department of Health and Human Services said. At the same time, the administration is working to approve higher rates in several states that did not take into account Trump’s cut in subsidies for 2018.

(Additional reporting by Yasmeen Abutaleb in Washington; Editing by Michele Gershberg and Peter Cooney)

Trump says he will work with Congress on more aid for Puerto Rico

Trump says he will work with Congress on more aid for Puerto Rico

By Roberta Rampton

WASHINGTON (Reuters) – President Donald Trump said on Thursday he will work with the U.S. Congress to approve grants and loans to help rebuild Puerto Rico after it was devastated by Hurricane Maria a month ago.

Already mired in debt after years of recession, the U.S. territory faces storm-related damages that some estimates have pegged as high as $95 billion, and has asked the federal government to make exceptions to rules that typically require states and local governments to shoulder part of the cost of recovery.

Trump did not give any specifics about how much money the government may give or loan to the cash-strapped territory, home to 3.4 million U.S. citizens.

“I have given my blessing to Congress, and Congress is working with you and your representatives on coming up with a plan and a payment plan and how it’s all going to be funded. Because you are talking about some substantial numbers,” Trump said to Puerto Rico Governor Ricardo Rossello at the beginning of an Oval Office meeting.

Trump and some of his top aides suggested last week that there would be limits to how much help Puerto Rico could expect from Washington. But on Thursday, the president’s remarks were broadly supportive.

The hurricane laid waste to the island’s power grid, destroying homes, roads and other vital infrastructure. The bankrupt territory is still struggling to provide basic services like running water. An oversight board charged with resolving Puerto Rico’s debt crisis has said the island’s government would run out of money by the end of the month without help.

Trump emphasized that repayment of federal loans and other storm-related debt owed by Puerto Rico would come before repayment of the island’s existing $72 billion in debt.

“Any money that’s put in by people – whether it’s public or private – they’re going to want to come in first position,” Trump said.

“We’re going to coming before – far before – any existing debt that’s on the island,” he said.

Trump declined to opine on whether the process would be easier if Puerto Rico were a state rather than a territory – a hot-button political issue on the island.

“You’ll get me into trouble with that question,” he told a reporter.

SENATE TO VOTE

While in Washington, Rossello also met with Senate leaders. The Senate is expected to vote in coming days on an aid package that includes $18.7 billion for the Federal Emergency Management Agency, which has been helping Texas, Florida, Puerto Rico, and the U.S. Virgin Islands recover from three massive hurricanes.

Some senators would like to see more funds added to that package, Senator John Thune, a member of the Republican leadership, told reporters.

Senator Marco Rubio, a Republican from Florida who has been deeply involved in discussions over the aid, said earlier on Thursday that he wants to tweak the bill so the island could more quickly access funds.

Congress is expected to consider another aid package by the end of December, but that could be too late for the island, which currently has no tax revenue, Rubio said.

“I know from experience the further away we get from these hurricanes, the less of a sense of urgency there is,” Rubio said.

Rossello has asked the federal government for approval to use disaster aid to cover a broad range of costs. He has also asked the White House and Congress for at least $4.6 billion in block grants and other types of funding.

“The reality is that we still need to do a lot more for the people of Puerto Rico and that’s why we’re meeting,” Rossello said.

“This is not over, not over by a long shot.”

(Reporting by Roberta Rampton, Additional reporting by Richard Cowan, Makini Brice and Doina Chiacu; Editing by Dan Grebler and Rosalba O’Brien)

Second federal judge blocks Trump’s curbs on travel to U.S.

Protesters gather outside the White House for "NoMuslimBanEver" rally against what they say is discriminatory policies that unlawfully target American Muslim and immigrant communities, in Washington, U.S., October 18, 2017. REUTERS/Yuri Gripas

By Lawrence Hurley

WASHINGTON (Reuters) – A second U.S. federal judge has blocked parts of President Donald Trump’s latest travel ban on people entering the United States from eight countries, dealing another legal blow to the administration’s third bid to impose travel restrictions.

U.S. District Judge Theodore Chuang in Maryland, in a ruling issued overnight, said the policy as applied to six majority-Muslim countries likely violates the U.S. Constitution’s prohibition on religious discrimination. He also ruled the ban ran afoul of immigration law.

Trump’s ban would have taken effect on Wednesday but was blocked on Tuesday by a U.S. federal judge in Hawaii in a separate challenge.

Together, the pair of rulings set up a high-stakes battle over the president’s executive authority that is expected to ultimately wind up before the U.S. Supreme Court.

Trump’s latest order targeted people from Iran, Libya, Syria, Yemen, Somalia, Chad and North Korea, as well as certain government officials from Venezuela. Neither of the court rulings lifts the restrictions on North Korea and Venezuela.

In the Maryland ruling, Chuang questioned the government’s argument that the restrictions are needed until the affected countries provide more information on travelers to the United States.

He cited various statements made by Trump, including his 2015 call for a “total and complete shutdown on Muslims entering the United States.”

Chuang wrote that the president’s public statements “not only fail to advance, but instead undermine, the position that the primary purpose of the travel ban now derives from the need to address information sharing deficiencies.”

The latest ban, announced last month, was the third version of a policy that targeted Muslim-majority countries but had been restricted by the courts. The Maryland case was brought by the American Civil Liberties Union, which represents several advocacy groups, including the International Refugee Assistance Project.

“Like the two versions before it, President Trump’s latest travel ban is still a Muslim ban at its core. And like the two before it, this one is going down to defeat in the courts,” said ACLU lawyer Omar Jadwat.

On Tuesday, U.S. District Judge Derrick Watson in Honolulu said Hawaii was likely to succeed in proving that the policy violated federal immigration law. The White House called the ruling flawed and said it would appeal.

Unlike the Hawaii ruling, the Maryland decision would lift the restrictions only for people with family connections to the United States.

White House representatives had no immediate comment.

(Reporting by Lawrence Hurley; Editing by Steve Orlofsky)

U.S. carrier patrols off Korean peninsula in warning to Pyongyang

U.S. carrier patrols off Korean peninsula in warning to Pyongyang

By Tim Kelly

ABOARD USS RONALD REAGAN, Sea of Japan (Reuters) – The USS Ronald Reagan, a 100,000-ton nuclear powered aircraft carrier, patrolled in waters east of the Korean peninsula on Thursday, in a show of sea and air power designed to warn off North Korea from any military action.

The U.S. Navy’s biggest warship in Asia, with a crew of 5,000 sailors, sailed around 100 miles (160.93 km), launching almost 90 F-18 Super Hornet sorties from its deck, in sight of South Korean islands.

It is conducting drills with the South Korean navy involving 40 warships deployed in a line stretching from the Yellow Sea west of the peninsula into the Sea of Japan.

“The dangerous and aggressive behavior by North Korea concerns everybody in the world,” Rear Admiral Marc Dalton, commander of the Reagan’s strike group, said in the carrier’s hangar as war planes taxied on the flight deck above.

“We have made it clear with this exercise, and many others, that we are ready to defend the Republic of Korea.”

The Reagan’s presence in the region, coupled with recent military pressure by Washington on Pyongyang, including B1-B strategic bomber flights over the Korean peninsula, comes ahead of President Donald Trump’s first official visit to Asia, set to start in Japan on Nov. 5, with South Korea to follow.

North Korea has slammed the warship gathering as a “rehearsal for war”. It comes as senior Japanese, South Korean and U.S. diplomats meet in Seoul to discuss a diplomatic way forward backed up by U.N. sanctions.

The U.N. Security Council has unanimously ratcheted up sanctions on North Korea over its nuclear and ballistic missile programmes since 2006. The most stringent include a ban on coal, iron ore and seafood exports that aim at halting a third of North Korea’s $3 billion of annual exports.

On Monday, Kim In Ryong, North Korea’s deputy U.N. envoy, told a U.N. General Assembly committee the Korean peninsula situation had reached a touch-and-go point and a nuclear war could break out at any moment.

A series of weapons tests by Pyongyang, including its sixth and most powerful nuclear test on Sept. 3 and two missile launches over Japan, has stoked tension in East Asia.

A Russian who returned from a visit to Pyongyang has said the regime is preparing to test a missile it believes can reach the U.S. west coast.

On Sunday, Secretary of State Rex Tillerson said President Donald Trump had instructed him to continue diplomatic efforts to defuse tension with North Korea.

Washington has not ruled out the eventual possibility of direct talks with the North to resolve the stand-off, U.S. Deputy Secretary of State John J. Sullivan said on Tuesday.

(Reporting by Tim Kelly; Editing by Clarence Fernandez)

EU defends Iran deal despite Trump, appeals to U.S. Congress

EU defends Iran deal despite Trump, appeals to U.S. Congress

By Robin Emmott and Gabriela Baczynska

LUXEMBOURG (Reuters) – The European Union on Monday reaffirmed its support for a 2015 nuclear deal between Iran and world powers despite sharp criticism of the accord by President Donald Trump, and it urged U.S. lawmakers not to reimpose sanctions on Tehran.

Trump defied both U.S. allies and adversaries on Friday by refusing to formally certify that Tehran is complying with the accord, even though international inspectors say it is, and said he might ultimately terminate the agreement.

EU foreign ministers meeting in Luxembourg said a failure to uphold an international agreement backed by the U.N. Security Council could have serious consequences for regional peace, and also undermine efforts to check North Korea’s nuclear ambitions.

“As Europeans together, we are very worried that the decision of the U.S. president could lead us back into military confrontation with Iran,” German Foreign Minister Sigmar Gabriel told reporters.

After a closed-door meeting chaired by EU foreign policy chief Federica Mogherini on Iran, the ministers issued a joint statement saying the 2015 deal was key to preventing the global spread of nuclear weapons.

“The EU is committed to the continued full and effective implementation of all parts of the JCPOA,” it said, referring to the Joint Comprehensive Plan of Action, the formal name of the accord with Iran agreed in July 2015 in Vienna.

Trump meanwhile renewed his criticism of the accord, and raised the possibility he might try to end it completely.

“We’ll see what phase two is. Phase two might be positive, and it might be very negative. It might be a total termination. That’s a very real possibility. Some would say that’s a great possibility,” the U.S. president said in Washington. He repeated his contention that the JCPOA was “a horrible deal for the United States.”

EU foreign ministers said the accord was crucial to opening up Iran’s $400-billion economy and finding a new market for European investors. Unlike the United States, the EU saw relations with Iran flourish in the late 1990s until revelations about Tehran’s nuclear plans in 2002.

“Non-proliferation is a major element of world security and rupturing that would be extremely damaging,” French Foreign Minister Jean-Yves Le Drian told reporters. “We hope that Congress does not put this accord in jeopardy.”

Mogherini said she would travel to Washington early next month to try to muster support for the accord.

The International Atomic Energy Agency (IAEA) says Iran is complying with its commitments under the accord, which Trump has branded “the worst deal ever negotiated”.

The EU still has sanctions in place against members of Iran’s Islamic Revolutionary Guard Corps, a major target of Trump’s criticism.

The EU ministers also discussed on Monday Iran’s ballistic missile program, which they want to see dismantled. Tehran says that program is purely defensive.

NORTH KOREA SPILLOVER

Negotiated after 12 years of talks, the accord with Iran is the most significant diplomatic success for the bloc in several decades.

Many worry that the EU’s reputation as an honest broker in a host of future conflicts may not recover if the U.S. Congress reimposes sanctions on Iran and causes the deal – which had the strong backing of Trump’s predecessor Barack Obama – to unravel.

Most U.N. and Western sanctions were lifted more than 18 months ago under the deal, though Tehran is still subject to a U.N. arms embargo, which is not part of the deal.

EU foreign ministers also approved a new batch of economic sanctions on North Korea after its atomic test last month that included an oil embargo and investment ban.

But some still hold out hope of repeating the Iran nuclear deal with Pyongyang at some future date.

Sweden is one of only seven EU countries with an embassy in Pyongyang and its foreign minister, Margot Wallstrom, reiterated that Stockholm could be counted on to help negotiate if asked.

But Germany’s Gabriel warned that Trump’s decision not to certify the Iran accord could scupper such hopes, a position echoed by Mogherini, although she stressed that no such EU mediation was underway.

“My concern is that, if we want to talk to North Korea now, the possible end for the nuclear deal with Iran would jeopardize the credibility of such treaties,” Gabriel said.

(Additional reporting by Peter Maushagen in Luxembourg, Lily Cusack in Brussels and Roberta Rampton in Washington; Editing by Gareth Jones and Alistair Bell)

U.S. states sue to block Trump Obamacare subsidies cut

U.S. President Donald Trump smiles after signing an Executive Order to make it easier for Americans to buy bare-bone health insurance plans and circumvent Obamacare rules at the White House in Washington, U.S., October 12, 2017. REUTERS/Kevin Lamarque TPX IMAGES OF THE DAY

By Yasmeen Abutaleb and Dan Levine

WASHINGTON/SAN FRANCISCO (Reuters) – Eighteen U.S. states sued President Donald Trump’s administration on Friday to stop him from scrapping a key component of Obamacare, subsidies to insurers that help millions of low-income people pay medical expenses, even as Trump invited Democratic leaders to negotiate a deal.

One day after his administration announced plans to end the payments next week, Trump said he would dismantle Obamacare “step by step.”

His latest action raised concerns about chaos in insurance markets. The subsidies cost $7 billion this year and were estimated at $10 billion for 2018, according to congressional analysts.

“As far as the subsidies are concerned, I don’t want to make the insurance companies rich,” Trump told reporters at the White House. “They’re making a fortune by getting that kind of money.”

Trump’s action took aim at a critical element of the 2010 law, his Democratic predecessor Barack Obama’s signature domestic policy achievement. Frustrated by the failure of his fellow Republicans who control both houses of Congress to repeal and replace Obamacare, Trump has taken several steps to chip away at it.

Democrats accused Trump of sabotaging the law.

Democratic attorneys general from the 18 states as well as Washington, D.C., filed a lawsuit in federal court in California later on Friday. The states include: California, Connecticut, Delaware, Kentucky, Illinois, Iowa, Maryland, Massachusetts, Minnesota, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia and Washington state.

The states will ask the court to force Trump to make the next payment. Legal experts said the states were likely to face an uphill battle in court.

“His effort to gut these subsidies with no warning or even a plan to contain the fallout is breathtakingly reckless,” New York Attorney General Eric Schneiderman said. “This is an effort simply to blow up the system.”

The new lawsuit would be separate from a case pending before an appeals court in the District of Columbia in which 16 Democratic state attorneys general are defending the legality of the payments.

If the subsidies vanish, low-income Americans who obtain insurance through Obamacare online marketplaces where insurers can sell policies would face higher insurance premiums and out-of-pocket medical costs. It would particularly hurt lower-middle-class families whose incomes are still too high to qualify for certain government assistance.

About 10 million people are enrolled in Obamacare through its online marketplaces, and most receive subsidies. Trump’s action came just weeks before the period starting on Nov. 1 when individuals have to begin enrolling for 2018 insurance coverage through the law’s marketplaces.

The administration will not make the next payment to insurers, scheduled for Wednesday, U.S. Attorney General Jeff Sessions said.

Senate Democratic leader Chuck Schumer expressed optimism about chances for a deal with Republicans to continue the subsidy payments.

“We’re going to have a very good opportunity to get this done in a bipartisan way” during negotiations in December on broad federal spending legislation, “if we can’t get it done sooner,” Schumer told reporters.

Trump offered an invitation for Democratic leaders to come to the White House, while also lashing out at them. “We’ll negotiate some deal that’s good for everybody. But they’re always a bloc vote against everything. They’re like obstructionists,” Trump told reporters.

The Senate failed in both July and September to pass legislation backed by Trump to repeal Obamacare due to opposition by a handful of Republican senators. One of them, Susan Collins, a moderate Republican from Maine who had been contemplating running for governor next year, on Friday said she planned to remain in the Senate and would use her voice in reforming the healthcare system.

SHARES OF INSURERS, HOSPITALS FALL

Hospitals, doctors, health insurers, state insurance commissioners and patient advocates decried Trump’s move, saying consumers will ultimately pay the price. They called on Congress to appropriate the funds needed to keep up the subsidy payments.

Shares of U.S. hospital companies and health insurers closed down on Friday after the subsidies announcement. Centene Corp <CNC.N> closed down 3.3 percent and Molina Healthcare <MOH.N> closed down 3.4 percent. Among hospital shares, Tenet Healthcare <THC.N> finished 5.1 percent lower and Community Health Systems <CYH.N> declined 4.0 percent.

The nonpartisan Congressional Budget Office has estimated that erasing the subsidies would increase the federal deficit by $194 billion over the next decade because the government still would be obligated under other parts of Obamacare to help lower-income people pay for insurance premiums.

Trump, who as a candidate last year promised to roll back the law formally called the Affordable Care Act, received applause for his latest action during an appearance on Friday before a group of conservative voters.

“It’s step by step by step, and that was a very big step yesterday,” Trump said. “And one by one, it’s going to come down, and we’re going to have great healthcare in our country.”

Earlier on Twitter he called Obamacare “a broken mess” that is “imploding,” and referred to the “pet insurance companies” of Democrats.

Republicans for seven years had vowed to get rid of Obamacare, but deep intra-party divisions have scuttled their efforts to get legislation through the Senate, where they hold a slim majority.

Since taking office in January, Trump threatened many times to cut the subsidies. Health insurers that planned to stay in the Obamacare market prepared for the move in many states by submitting two sets of premium rates to regulators: with and without the subsidies.

The National Association of Insurance Commissioners said the change would drive up premium costs for consumers by at least 12 to 15 percent in 2018 and cut more than $1 billion in payments to insurers for 2017.

The White House announced the cut-off just hours after Trump signed an order intended to allow insurers to sell lower-cost, bare-bones policies with limited benefits and consumer protections.

Republicans have called Obamacare an unnecessary government intrusion into the American healthcare system. Democrats have said the law needs some fixes but noted that it had brought insurance to 20 million people.

(Additional reporting by Lawrence Hurley, Justin Mitchell, Steve Holland, Makini Brice, Jeff Mason and Susan Heavey in Washington, Megan Davies in New York, Brendan O’Brien in Milwaukee, and Divya Grover in Bengaluru; Writing by Will Dunham; Editing by Lisa Von Ahn and Leslie Adler)