Category: Business Wires

KYIV, Ukraine — Ukrainian President Volodymyr Zelensky said that he believes actions taken by dismissed Defense Minister Mykhailo Fedorov, including his involvement in mass protests and calls for an election, were misguided, as he publicly detailed their dispute for the first time.

Zelensky also alluded to problematic decisions over defense spending and said that inaccurate information provided by the Defense Ministry contributed to an awkward encounter with U.S. President Donald Trump over the use of Starlink in Russia.

Zelensky disclosed figures showing Ukraine’s growing shortage of Patriot air-defense missiles needed to counter Russian ballistic attacks, with deliveries from Western allies declining in the past three years even as Russian missile strikes intensified.

He highlighted battlefield gains, however, saying Ukrainian forces have almost completely recaptured the Dnipropetrovsk region, with only about 4 square miles remaining under Russian control.

The Ukrainian president made the remarks during a two-hour off-the-record meeting with reporters on Saturday, with a transcript released publicly on Sunday.

Zelensky’s first public comments on Fedorov dismissal

His comments ranged widely, covering the latest battlefield developments, efforts to counter Russian ballistic attacks, the state of peace negotiations, Ukraine’s budgetary challenges, and the political turmoil surrounding Fedorov’s dismissal.

“I really had and still have a very positive attitude toward Mykhailo. We have been through a lot together. But I believe that he himself goes, or is pushed, into the wrong things,” he said.

Fedorov, a popular minister credited with modernizing Ukraine’s armed forces and accelerating the military’s embrace of technology and drone warfare, was dismissed last month after reportedly falling out with the country’s top military commander. His removal triggered mass protests that lasted for weeks, but ultimately failed to force a reversal of the decision. Fedorov later called for an election.

Zelensky said that he had offered Fedorov four different options to continue working in the government. Fedorov, he said, rejected all of them.

The Ukrainian leader told journalists that he believes holding an election during the war would be a huge risk with the potential to “split Ukraine apart.”

“I believe elections during a war like this would generally pose enormous risks. Holding elections right now would be a tsunami for the state that would split Ukraine apart,” he said.

Zelensky said he had previously faced pressure to hold an election during the war, but no partners had come up with a plan for how a poll could be held safely, legitimately, and democratically.

Inaccurate information led to uncomfortable White House encounter

Zelensky appeared to link Fedorov to an awkward episode involving Starlink and Elon Musk. Zelensky said that earlier this year, the Defense Ministry had told him that SpaceX had agreed to allow Ukraine to use Starlink over Russian territory to carry out deep strike operations, subject to political approval.

Acting on that, Zelensky said, he raised the issue directly with U.S. President Donald Trump. He told Trump that Musk had confirmed the proposed use. Zelensky said the two sides subsequently sought Musk’s confirmation and discussed financing for the project.

But at a later meeting, Zelensky said, Trump told him that Musk had rejected the proposal and accused him of having misled the U.S. president. Musk considered the move a dangerous escalation, according to Zelensky.

“He said that I had supposedly deceived him, because Musk had denied Ukraine the use of Starlink on Russian territory. I went back to our Ministry of Defense and they said that maybe it was so,” he said.

Zelensky didn’t explicitly accuse Fedorov of lying. He said that the situation was among the reasons behind “some of the steps.”

Zelensky also pushed back against protesters’ vilification of former army chief Gen. Oleksandr Syrskyi, who he dismissed, and current Defense Minister Maj. Gen. Yevhen Khmara, saying they had gone too far.

“Maybe someone doesn’t like Syrskyi for one reason or another. But the slogans ‘Syrskyi is the devil, Khmara is the devil,’” he said. “Listen, this is too much. Do you understand? In principle, you can’t treat the military like this and tolerate it, especially when it was the military that made it possible for any peaceful protests to take place in the Ukrainian capital at all.”

Pressure on defense budget but military successes

Zelensky also described severe financial pressure on Ukraine’s defense effort. He said that the Defense Ministry faced a $27 billion budget shortfall after spending decisions earlier in the year brought forward funds originally intended for the second half of this year.

Touching on a corruption inquiry that led Zelensky to fire one of his most senior officials this week, he said that anti-corruption investigators don’t believe that the president was involved. The investigators had named a deputy head of the presidential office among the suspects in a money-laundering case.

“The heads of anti-corruption agencies have zero questions for me. They understand perfectly well that I am not involved in anything like that. And this is important to me,” he said.

On the battlefield, Zelensky was optimistic. In addition to Ukraine almost completely regaining control of the Dnipropetrovsk region, he said that another operation was underway elsewhere and that its results were expected by the end of August.

He also predicted that by the end of the year, Ukraine could reach parity between the territory occupied by Russia since the beginning of the year and the territory retaken by Ukrainian forces. Zelensky said that Russia had occupied about 380 square miles since the start of the year, while Ukraine had restored control over roughly 315 square miles.

The president said that Russia’s principal objective remained the Konstantynivka-Sloviansk-Kramatorsk axis, and that Moscow was still demanding that Ukraine withdraw from the Donbas region as a condition for a settlement.

Still struggling for access to Patriot missiles

Zelensky said that Ukraine was receiving substantially fewer Patriot interceptor missiles even as Russian ballistic attacks are increasing.

He said that Ukraine received 675 Patriot missiles in 2023, compared with 364 in 2025 and an expected 264 this year. Zelensky said that he wanted to secure 300 additional Patriot missiles for the coming winter, while Ukraine’s air force had requested 360.

The shortfall is particularly serious, because the United States and European partners are struggling to expand production. Zelensky said that he hoped Ukraine could obtain even 5% or 10% of U.S. reserves and was able to pay for them.

Zelensky said that Russia could eventually produce up to 1,300 ballistic missiles a year, compared with an estimated current capacity of 600.

He said that Ukraine was also preparing alternatives to Starlink, including a European communications project, as Russia and China work on their own competing system.

Other developments

Debris from a Ukrainian drone hit two industrial facilities including a warehouse belonging to online retailer Ozon, local officials in Russia’s Orenburg region said Sunday.

As well as shifting the war onto Russian soil through long-range drone strikes on oil facilities that have caused fuel shortages across Russia, Ukraine has unsettled the Russian public by striking warehouses of online retailers, including Russia’s biggest one, Wildberries, and competitors such as Ozon.

One person was killed and six wounded in Ukrainian drone attacks on Russia’s Belgorod border region, local authorities said Sunday. A woman also died in a drone attack in the Tula region.

Two women were killed and five other people were wounded when a Russian drone hit an electric train in Ukraine’s Kharkiv region, the Ukrainian national police said Sunday.

Leaders from Nordic and Baltic nations arrived in Kyiv on Sunday, the eve of Ukraine’s Independence Day, in a show of solidarity from some of Ukraine’s closest partners before a larger “coalition of the willing” meeting.

Leaders from Denmark, Estonia, Finland, Latvia, Lithuania, and Norway attended a flag-raising ceremony, as Ukraine marked Ukraine’s National Flag Day.

“We feel we are not alone. Our allies are with us,” Ukrainian Foreign Minister Andrii Sybiha wrote on X on Sunday, noting that the leaders would hold bilateral and multilateral talks with Zelensky.

The new head of Iran’s top security body warned Sunday that Tehran will see any country’s support for new U.S. economic measures against the Islamic Republic as an “act of war,” while Iran’s president defended a memorandum of understanding with the United States as the best way out of the stalled conflict.

Treasury Secretary Scott Bessent on Monday is expected to announce the new measures after the U.S. vowed to impose an “unprecedented” level of economic warfare and isolation on a country that has lived for decades under sanctions. Also Monday, Pakistan’s army chief is expected to visit Iran as mediators try to revive talks.

Meanwhile, attacks calmed on the Strait of Hormuz but posturing did not, as a recently created Iranian authority listed dozens of vessels it said will face restrictions on future transits.

Iran’s security chief sharpens warning to neighbors

The hard-line leader of Iran’s Supreme National Security Council, Mohsen Rezaei, issued his latest warning on X, with the comments quickly shared by Iranian state media.

It came a day after Rezaei’s most extensive public comments since being named to the post this month.

“If (Trump) wants to do something, we will retaliate in a seismic manner,” he had told the state broadcaster in an interview that aired late Saturday. He said Iran would target other oil-shipping routes from the Persian Gulf — alternatives to the Strait of Hormuz.

Rezaei, a former Revolutionary Guard commander and military adviser to Supreme Leader Ayatollah Mojtaba Khamenei, was part of senior appointments widely seen as hardening Tehran’s political and military stance.

Iranian president wants to move past ‘neither war nor peace’

Iranian President Masoud Pezeshkian earlier Sunday said the memorandum of understanding signed in mid-June was the best way to move beyond a situation of “neither war nor peace,” adding that Tehran can’t attract investment nearly six months after the war began.

“There is not a single provision in this agreement that amounts to capitulation,” Pezeshkian said in a speech published by state-run IRNA. “The supreme leader sets the policies, and we will follow that path.”

The interim deal opened a 60-day period for talks aimed at ending the war and reaching an accord on Iran’s nuclear program. That period ended last week with no signs of compromise or extension.

No attacks confirmed on the strait, but new restrictions

There were no confirmed attacks in the Strait of Hormuz over the past 48 hours, a multinational coalition overseen by the U.S. Navy said Sunday, with shipping traffic still at reduced levels. The U.S. military said its blockade of Iranian ports had redirected 70 commercial ships and disabled three as of Sunday.

Iran’s recently created Persian Gulf Strait Authority, sanctioned by the U.S., published a list of dozens of ships it said had violated arrangements for transiting the strait and would face future restrictions like fines or seizures. The strait had been considered an international waterway before the U.S. and Israel attacked Iran on Feb. 28.

Iran and Oman, on the strait’s other side, are now discussing management of the waterway, which likely will include ships paying fees.

Pakistan’s army chief will visit Tehran

Pakistani Field Marshal Asim Munir will lead a delegation to Tehran on Monday, Iranian state television reported, citing Iran’s Foreign Ministry spokesperson, Esmail Baghaei.

Two regional officials said the visit was part of Islamabad’s efforts to de-escalate tensions between the United States and Iran and urge them to return to the negotiating table. The officials spoke on condition of anonymity because they were not authorized to discuss the matter publicly.

Iran executes man arrested during January protests

The Iranian judiciary’s Mizan news agency reported the latest execution connected to nationwide protests early this year, saying Majid Adineh was arrested Jan. 9 in Mohammadshahr, west of Tehran.

The judiciary said forensic examinations indicated the handgun found on him had been fired on Jan. 8 and 9. Mizan said Adineh had joined the unrest following calls by groups opposed to Iran’s government and alleged that he had received training from groups outside the country. He was convicted under Iran’s law imposing harsher penalties for espionage and cooperation with hostile states.

Israeli settler arrested in beating of Palestinian amputee

Police arrested a 16-year-old boy from the Israeli settlement of Avigayil in the beating of a 61-year-old Palestinian, Saeed Muhammad Ibrahim Rabah, outside his home in the occupied West Bank, a year after he lost a leg after being shot by a settler.

Rabah told the Associated Press that the violence at his home in Khirbet al-Rakeez on Saturday was an effort to make families leave, but “we will remain, no matter what happens.”

Separately, the West Bank Health Ministry said a 14-year-old in the Askar refugee camp in Nablus was shot dead by Israeli forces, who did not immediately comment. The uncle of Islam Maher Ajouri, Nehad Ajouri, called the shooting indiscriminate.

And Israel’s military said it detained a suspect in a stabbing attack that wounded a 24-year-old Israeli man in the area of al-Auja in the West Bank. Israel’s emergency services said the man was in moderate condition.

Airstrike in Gaza kills a 4-year-old child

Four-year-old Mohammed Taha died after an Israeli airstrike hit a central Gaza house on Sunday and wounded at least five others, according to the Al-Aqsa Martyrs Hospital, which received the casualties.

Israel’s military later said it struck and killed a Hamas commander in central Gaza. The hospital confirmed that the man named, Ismail Abu Ful, was killed.

An Israeli strike in southern Gaza wounded at least seven people, including three children, according to health officials at Nasser Hospital. The military did not immediately comment.

Defense Minister Israel Katz in a statement said he instructed the military to “act immediately and forcefully” to prevent launches of balloons, kites, or drones from Gaza toward nearby Israeli communities.

Before the Oct. 7, 2023, attack by Hamas-led militants on Israel — when 1,200 people were killed and 251 taken hostage — burning kites and balloons were sent from Gaza into southern Israel, causing fires and other damage.

Hamas in a statement Sunday accused Israel of “using children’s toys as a pretext” for attacks and further displacement of Gaza residents.

TORONTO — For decades, Canada built much of its prosperity on privileged access to the United States. Now, after the collapse of trade talks, one of the world’s closest and most durable alliances has been fundamentally altered, with both countries facing the risk of a full-scale trade war.

Prime Minister Mark Carney acknowledged the break after last-ditch negotiations failed Friday, saying Canada had recognized that “America has changed” and that the countries would “not return to our old relationship.”

The United States imposed 50% tariffs on about $20 billion worth of Canadian goods early Saturday. Carney said Canada would retaliate dollar for dollar beginning Sept. 8, targeting sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.

Carney foreshadowed the shift at the World Economic Forum in Davos in January, declaring that the world was experiencing “a rupture, not a transition” and urging countries such as Canada to reduce their vulnerability to economic coercion by strengthening their economies at home and diversifying abroad.

He said in Ottawa on Saturday that warning had been borne out. He accused the U.S. of using “economic integration as a weapon” and said its “signature was written in pencil.”

“The collapse of the tariff talks points to the fact that the old Canada-U.S. relationship is over and, for many Canadians, it also confirms the perception that Canada can’t trust the Trump administration,” said Daniel Béland, a political science professor at McGill University in Montreal.

The pressure from Republican President Donald Trump has gone well beyond tariffs.

He has questioned Canada’s economic viability, repeatedly talked about making it the 51st U.S. state, and used trade measures to encourage production to move from Canada to the United States. That has angered many Canadians and fueled a sense of betrayal in a country that had long regarded the U.S. as its closest ally.

Canadian travel to the U.S. remains sharply lower than before the dispute, with July return trips down nearly 29% by car and 27% by air from July 2024, Statistics Canada said.

The failed negotiations underscored how far the relationship had shifted. Canada had been prepared to accept some U.S. tariffs for market access and greater certainty — a break from decades of policy aimed at eliminating trade barriers.

For Canadians accustomed to preferential access under the 1989 Canada-U.S. Free Trade Agreement, NAFTA, and its successor, even reduced tariffs would mark a retreat from the old relationship.

The collapse also puts Carney’s approach to Trump to the test.

The prime minister’s “elbows up” posture — hockey shorthand for playing aggressively and refusing to be pushed around — has helped keep him popular at home. His decision to resist U.S. pressure could also resonate abroad with those impressed by his Davos call for countries to resist economic coercion and reduce dependence on great powers.

Provincial and conservative leaders broadly backed Carney. Saskatchewan Premier Scott Moe said, “The old status quo is not possible,” while Ontario Premier Doug Ford praised Carney for rejecting what he called a bad deal for the auto, steel, and manufacturing sectors.

Ford said Trump “is not to be trusted whatsoever.”

Former Alberta Premier Jason Kenney said Canada was “not cravenly surrendering in the face of constant economic and political aggression.”

Lana Payne, national president of Unifor, Canada’s largest private-sector union, accused Trump of trying to weaken Canada’s industrial base.

“What we have seen from the U.S. administration, or Donald Trump, is this consistent attempt to try and destroy the industrial economy of Canada with tariffs that have been strategically designed to attack us,” Payne said.

Economic risks of fighting back and a shift seen as perhaps lasting

Nearly three-quarters of Canada’s goods exports go to the United States. The U.S. economy is roughly 10 times larger than Canada’s, limiting Ottawa’s ability to retaliate dollar for dollar without inflicting disproportionate damage at home.

Royal Bank of Canada economists estimate the tariffs directly affect about 0.4% of Canada’s GDP because they cover only about 5% of Canadian exports to the U.S. The damage could grow if retaliation broadens, more sectors are targeted, or the dispute curbs investment and disrupts supply chains.

Carney himself acknowledged the cost of retaliation, saying the Canadian measures would “raise costs and reduce choice for Canadians.” He said his government would announce additional assistance for affected businesses and workers.

Béland said the countries were witnessing “the beginning of a full-scale trade war,” though he cautioned that the situation could change rapidly.

The dependence is not one-sided.

Carney said Canada supplies 99% of U.S. natural gas imports, 85% of its electricity imports, and 60% of its crude oil imports. Trump has focused much of his pressure on autos, steel, and aluminum, fueling resentment among Canadians who see the push as an effort to hollow out key industries.

Goldy Hyder, president and CEO of the Business Council of Canada, said businesses still view the U.S. as Canada’s most important trading partner but increasingly see the shift as lasting beyond Trump.

“There is a new trade and investment model, one that could well be kept in place by future U.S. administrations whether Democrat or Republican,” Hyder said.

Canada looks beyond U.S. because ‘things will never be the same’

The breakdown adds urgency to Carney’s push to diversify beyond the United States. He has traveled abroad seeking investment and new trade ties, aiming to attract $1 trillion Canadian (US$730 billion) by 2030 and to double non-U.S. investment over the next decade. Canada has signed more than 20 trade and security agreements across five continents in the past year.

That made Washington’s effort to restrict Canada’s ability to negotiate trade agreements with other countries particularly significant.

In July, Ottawa and Alberta advanced plans for a new Pacific Coast oil pipeline to give Canadian crude greater access to Asian markets and reduce reliance on U.S. buyers.

The immediate question is how long the latest tariff confrontation will last.

Béland said the deeper change probably will, partly because U.S. protectionism is likely to remain influential under future administrations.

“The idea that things will return to ‘normal’ once Donald Trump leaves the White House is probably just wishful thinking,” Béland said. “It doesn’t mean the relationship might not improve in the future but that things will never be the same.”

The new leader of Iran’s top security body is threatening neighbors against joining new U.S. efforts to squeeze Tehran’s economy. Egypt is trying to revive Iran-U.S. negotiations. And Iraq and Iran say Tehran has helped some ships carrying Iraqi oil to transit the Strait of Hormuz. France and Saudi Arabia are expected to discuss plans to bypass the waterway.

Meanwhile, Israel has carried out strikes in Syria and in Gaza.

Iran’s new top security adviser issues threats

The hard-line new leader of Iran’s Supreme National Security Council threatened Tehran’s neighbors against joining the new U.S. effort to hurt Iran’s economy, and accused the United States of increasing global nuclear insecurity with months of war.

“If (Trump) wants to do something, we will retaliate in a seismic manner,” he said in an interview with the state broadcaster that aired Saturday.

Mohsen Rezaei was named this month as part of senior appointments widely seen as hardening Tehran’s political and military stance. His interview with IRIB is his most extensive public statement since then.

Rezaei said Iran would target oil-shipping routes out of the Persian Gulf — alternatives to the Strait of Hormuz — if neighbors join what he described as the economic war against Iran. Those neighbors would be considered enemies and “we will target their interests,” he said.

U.S. President Donald Trump in the past week has vowed to increase Iran’s pain by imposing an “unprecedented” level of economic warfare and isolation. Iran has lived under sanctions for years.

Rezaei said discussions with Oman, located on the other side of the strait, over management of it were ongoing, and said fees would be imposed. Iran asserted control over what was seen as an international waterway shortly after the U.S. and Israel attacked on Feb. 28.

Rezaei also vowed to make changes to Iran’s diplomacy and bring new capabilities to what he called the next war. He warned the U.S. against sending more military personnel to the region, and said the U.S. had increased nuclear insecurity because countries see that participating in international monitoring efforts, as Iran has done, is no protection against attack.

Egypt tries to revive U.S.-Iran negotiations

The top diplomats for Egypt and Iran discussed efforts to bring Tehran and Washington back to the negotiating table to settle the war, Egypt’s foreign ministry said.

Iranian Foreign Minister Abbas Araghchi and Egyptian counterpart Badr Abdelatty also discussed the Iranian-Omani talks, the ministry said.

Araghchi briefed Egypt’s foreign minister about “Iran’s view of ongoing developments, the course of negotiations and their challenges,” the ministry said, without elaborating. Araghchi confirmed the call. Separately, Araghchi said he had a call with Pakistan’s army chief, Field Marshal Asim Munir,

Iran and Iraq say some Iraqi oil is facilitated through the strait

The governments of Iraq and Iran said Tehran has helped some ships carrying Iraqi oil to transit the Strait of Hormuz, a key waterway for global oil, natural gas, and other supplies, but there were few details.

“There is facilitation for some ships carrying Iraqi oil in the Strait of Hormuz,” Iraqi President Nizar Amidi said in comments published Saturday by the state-run news agency, adding that Iraq doesn’t have a national carrier for transporting oil.

Iran’s state-run IRNA news agency said a number of Iraqi oil tankers have been permitted to transit. It was not clear how many or what Iran might have received in return.

Syria says an Israeli drone strikes inside a village

An Israeli drone strike on a vehicle wounded one person on Saturday in the southwestern Syrian village of Beit Jin, according to the Syrian state news agency SANA. Syria’s foreign ministry said several civilians were injured and called the strike a flagrant violation of the country’s sovereignty.

The Israeli military said it targeted a “terrorist who advanced terror attacks in final stages of preparation,” without elaborating. It wasn’t immediately clear if it was the same strike.

Israel has carried out hundreds of airstrikes around Syria after the ouster of former President Bashar Assad in late 2024, mainly destroying army assets to keep them out of the hands of his successors.

Messages differ on the Golan Heights

In an interview on Friday with Mario Nawfal, a Lebanese-Australian entrepreneur, U.S. Ambassador Tom Barrack said Israel “still” occupies the Golan Heights in violation of U.N. resolutions.

Israeli Defense Minister Israel Katz on Saturday in a statement called Barrack’s remarks “full of inaccuracies and positions that contradict Trump’s own position.”

Israel captured the Golan Heights from Syria in the 1967 war and annexed it in 1981. The U.N. considers the territory occupied Syrian land. But in March 2019, Trump signed a proclamation recognizing Israeli sovereignty over the Golan Heights, reversing decades of U.S. policy.

French president, Saudi crown prince will meet

French President Emmanuel Macron and Saudi Crown Prince Mohammed bin Salman are expected to discuss plans to develop alternative routes to the Strait of Hormuz during the Saudi leader’s two-day visit to Paris that starts on Sunday, according to officials in the presidency who weren’t authorized to be publicly named.

Proposals include increasing trade through Omani ports outside of the Persian Gulf, expanding or doubling pipelines in Saudi Arabia and elsewhere, and developing new rail links, the officials said.

France and Saudi Arabia have formed a task force on energy and logistics connections between the Middle East and Europe that is scheduled to meet at the ministerial level Monday. The officials said the work would focus on identifying the most strategic projects, securing financing, and establishing roles for French companies.

An Israeli strike in Gaza kills 1 Palestinian

An Israeli strike on the backyard of a house in central Gaza killed one Palestinian and wounded another Saturday, according to health officials at Al-Aqsa Martyrs hospital.

Israel’s military said it targeted Sharif al-Hasanat, a Hamas commander who “advanced terror attacks and took part in efforts to restore Hamas’ underground infrastructure.” Days earlier, a U.S. negotiator reportedly asked Israel to draw down attacks while seeking to make progress on the ceasefire.

UNITED NATIONS — The United States has demanded that Cuba open up to private investment, and Cuba has passed sweeping reforms to encourage just that. So Cuba’s U.N. ambassador says he wants to know why Washington keeps piling on sanctions that stymie the very economic opening it has sought for decades.

Ambassador Ernesto Soberón Guzmán, in an interview this week with the Associated Press, directed his question to U.S. Secretary of State Marco Rubio, the main architect of the Trump administration’s Cuba policy:

“What are you afraid of? If you are so convinced that the Cuban government is an incompetent government, why do you need to implement almost every two weeks new sanctions?”

The U.S. State Department responded to a request for comment with a quote from Rubio saying new sanctions will continue to be announced every couple of weeks to close off “escape valves that they’re trying to create in every mechanism.”

Then on Thursday, the U.S. imposed more economic penalties on Cuban industries, targeting state-owned mining, metal, and construction companies.

Cuba has been pushed to the brink by an oil blockade imposed by the United States in January on top of a decades-old embargo, coupled with the escalating sanctions. The moves by President Donald Trump’s administration, meant to put pressure on the government by depriving it of funding, have worsened already debilitating blackouts, cut workers off from public transport, crippled infrastructure, and deepened shortages in medicine and food in the Caribbean island nation.

Guzmán said the sanctions are the main obstacle to Cuba opening up its economy. He said the impact of the U.S. measures — specifically the shortage of electricity and lack of fuel to run a business or travel — has turned off investors and tourists, a major source of Cuba’s income.

Some companies have pulled out of Cuba, including the Spanish hotel chain Meliá, which relied on tourist revenue and cited “significant operational, legal, economic, and financial difficulties” in explaining its decision to leave.

”Literally, the United States has done everything imaginable to try to prevent foreign investors,” said William LeoGrande, a professor at American University and a leading expert on U.S.-Cuba relations. ”When they say, `Well, we want to see Cuba open up to foreign investment,’ they’re being disingenuous. … It’s not possible for them to succeed without some kind of sanctions relief.”

The goal of Trump’s Republican administration, he said, is “not just to open up Cuba economically but to overthrow the Cuban government — to change the nature of the Cuban political system.”

Cuba announces major economic shift

John Kavulich, president of the U.S.-Cuba Trade and Economic Council, said Cuba had to make changes when it lost its economic lifeline with the U.S. ouster in January of Venezuelan leader Nicolás Maduro.

“The result is the Cuban government in the last eight months made more commercial, economic, and financial changes to the country than they have as a group since the revolution,” he said.

Nonetheless, the Trump administration keeps ratcheting up sanctions, putting more pressure on Cuba, which is responding by making more changes, Kavulich said.

“But from our standpoint, there are two parts missing: One is Cuba implementing by regulation everything that it’s announced, and secondly, the Trump administration allowing U.S. companies to have more access to the Cuban marketplace while these changes are underway,” he said.

The changes announced by Cuban President Miguel Díaz-Canel in June aim to significantly shift Cuba’s economy and industry, which have been strictly controlled by the socialist government since the 1959 revolution.

They include more space for private businesses, imports and exports without the state as an intermediary, free hiring of personnel, authorization for private banks, investment by Cubans abroad, and opportunities for fast-food chains to establish themselves on the island.

Guzmán said there are opportunities for investments in real estate, solar farms, and energy to help ease the country’s electricity shortage, as well as in marinas and the tourism industry.

Christopher Hernandez-Roy, acting director of the Americas program at the Center for Strategic and International Studies, recalled that the last economic opening under President Barack Obama’s Democratic administration “was later throttled by the Cubans themselves, who feared that the opening went too far and appeared to threaten political control.”

Today, he said, it appears the Cubans really do want economic reforms and outside investment. Díaz-Canel’s economic reforms are not impossible, but U.S. sanctions “significantly constrain their prospects for success,” Hernandez-Roy said.

He noted the irony that U.S. pressure ”is helping push the Cubans toward greater economic liberalization out of necessity, while simultaneously limiting the resources and access necessary for those reforms to actually improve the economy.”

Rubio says Cuba’s leaders ‘don’t know what they’re doing’

In late June, after the reforms were announced, the U.S. slapped sanctions on five state companies, three linked to a business conglomerate run by Cuba’s Revolutionary Armed Forces. Best known as GAESA, it is believed to command nearly 40% of Cuba’s gross domestic product.

Rubio, a former U.S. senator from Florida whose parents were born in Cuba, did not appear to be impressed by the newly announced economic changes. He last month called Cuba “a failed state” with “a bad economic model.” He said Cuba’s leaders “don’t know what they’re doing” and “don’t know how to fix their economy.”

“I think the challenge that Cuba has faced for the last 15 years is they want to somewhat improve their economy, but they’re afraid that if they improve it too much they’ll lose political control over people,” he said.

The United States is prepared “to do what we can do to effectuate a positive change in Cuba because it directly impacts our national security” since it is only 90 miles from the U.S. mainland, Rubio said. “And we want Cuba to be prosperous. We want Cuba to be free.”

The Cuban ambassador said implementing the economic changes would be far easier without the sanctions, if American companies were involved in Cuba and if trade between the two countries was possible.

He said the good news is that talks are taking place between the United States and Cuba. He declined to give details of what he called “very sensitive conversations.”

“But the point here is that even when Cuba is changing a lot,” Guzmán said, “the U.S. government keeps the same policy of aggression towards the Cuban people.”

WASHINGTON — President Donald Trump announced Friday that his administration will allow more beef to be temporarily imported into the U.S. without triggering higher tariffs, as he remains under pressure to cut costs and address affordability issues ahead of November’s midterms.

Beef prices have climbed to record highs amid a sharp drop in the number of U.S. cattle, consistent consumer demand, and limits on cattle from Mexico, where the animals are facing a flesh-eating pest. The U.S. president has also imposed 50% tariffs on Brazil, a major beef exporter.

The president’s plan, however, drew immediate skepticism from agricultural experts and backlash from cattle ranchers and conservative rural-state Republicans. Ranchers, normally some of the president’s biggest supporters, are enjoying some rare profitable years and worry cheap beef imports will reduce cattle prices — and with it, the incentive to increase herd sizes.

“We all want lower grocery prices, but as I’ve said for months, we cannot do it at the expense of American producers,” Sen. Deb Fischer (R., Neb.) said in a statement. “Flooding the market with foreign beef hurts our livestock industry and undermines the long-term solution: growing the U.S. cattle herd to meet demand.”

Sen. Tim Sheehy (R., Mont.) said in a social media post just hours after Trump’s announcement that the president’s “heart is in the right place,” but importing beef will “harm our ranching families who feed the nation.”

The deal, Trump said, allows up to 300,000 metric tons of ground beef to be imported into the U.S. for the next 90 days without activating an “out of quota” tariff, which is a tax that goes into effect once a certain quantity of that product enters the country.

The president said on social media that he had committed to ensuring the imported beef would be sold at 25% below current market rates, making it cheaper for American consumers. A White House official said the deal is with foreign beef exporters who have agreed to the discount on beef.

“You don’t put America first by putting U.S. cattle producers last,” U.S. Cattlemen’s Association President Justin Tupper said in a statement. “This move will weaken our markets and gamble with food safety in the process.”

The president’s announcement and other market interventions sacrifice “long-term stability for short term messaging,” Colin Woodall, CEO of the National Cattlemen’s Beef Association, said in a statement.

Glynn Tonsor, a professor at Kansas State University who focuses on the cattle and beef industry, said he would like to see more details about the latest deal but that his immediate assessment was that it wouldn’t have a big effect on prices.

That’s because 300,000 metric tons amounts to roughly 3% of what Americans eat yearly, he said. “The relative magnitude we are talking about is pretty small.”

David Anderson, professor of agricultural economics at Texas A&M University, said he was skeptical other countries could redirect so much beef to the U.S. in such a short time period.

“Is that even achievable?” he questioned in a phone interview.

The White House official, who spoke on condition of anonymity to discuss a plan that has yet to be finalized, said the beef in question is lean beef trimmings that are used for ground beef production. Trump plans to sign an executive order formalizing the directive within two weeks, the official said. The administration made a push last year to buy more beef from Argentina to try to bring down prices.

The president said Friday that his plan would help grow the U.S. cattle supply, which is the smallest it’s been in decades. Some ranchers and experts said the opposite effect was more likely.

“Imports have been a major contributor to the decline in the U.S. cattle inventory,” said Bill Bullard, the CEO of the R-CALF USA, which represents independent cattle producers. “Using more imports today will exacerbate that decline and will prevent herd expansion.”