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Jon Keegan

US scoping out drone and solar panel supply chains ahead of potential tariffs

The Trump administration may be planning to impose tariffs on drones and their components, as well as solar panels.

Bloomberg reports that the US Department of Commerce has initiated investigations into two categories of imports: “imports of unmanned aircraft systems (UAS) and their parts and components” and “imports of polysilicon and its derivatives.”

The “Section 232” investigations are required in order for the Trump administration to impose tariffs on the goods in the name of national security.

The vital role of drones in a rapidly changing national security landscape has grabbed the attention of the White House.

In June, President Trump signed an executive order titled “Unleashing American Drone Dominance,” which seeks to identify “supply chain risks” and to “secure the United States drone supply chain against foreign control or exploitation.”

While the recently passed new tax bill has put the nail in the coffin for many renewable energy credits, the investigation into solar panel imports is an acknowledgement that America’s capacity to manufacture cheap, efficient solar power is relevant to national security.

The notice of the investigation in the Federal Register says the department is particularly interested in hearing about “the ability of foreign nations to weaponize their control over supplies of polysilicon and its derivatives.”

The “Section 232” investigations are required in order for the Trump administration to impose tariffs on the goods in the name of national security.

The vital role of drones in a rapidly changing national security landscape has grabbed the attention of the White House.

In June, President Trump signed an executive order titled “Unleashing American Drone Dominance,” which seeks to identify “supply chain risks” and to “secure the United States drone supply chain against foreign control or exploitation.”

While the recently passed new tax bill has put the nail in the coffin for many renewable energy credits, the investigation into solar panel imports is an acknowledgement that America’s capacity to manufacture cheap, efficient solar power is relevant to national security.

The notice of the investigation in the Federal Register says the department is particularly interested in hearing about “the ability of foreign nations to weaponize their control over supplies of polysilicon and its derivatives.”

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OK, so when was the longest shutdown in US history?

The US government officially shut down at 12:01 a.m. on Wednesday after senators failed to agree on a last-minute funding bill. Though initially shrugging off the threat of a shutdown during yesterday’s session, stocks were mildly in the red on Wednesday as investors reacted to what is now the 11th shutdown in the government’s history.

Until this latest shutdown, there had been 20 government funding gaps experienced since 1976 — though not all ended in a full shutdown, with full closure averted in half of those cases.

Indeed, prior to the 1980s, funding gaps didn’t typically have major effects on government operations, with agencies continuing to operate on the basis that the funding would come eventually. However, a more stringent interpretation of the rules led to a stricter appropriations process from the early 1980s onward, with many subsequent funding gaps resulting in a shutdown of affected agencies (unless the gaps were quickly fixed or occurred over a weekend).

Obviously, the duration of the latest shutdown is still unclear, but it will continue until Congress passes a funding bill — most likely via a “continuing resolution,” which has ended every shutdown since 1990. Data analyzed by USAFacts suggest that it might not be a one- or two-day affair, as funding gaps have lengthened in recent years.

Government shutdown patterns
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Indeed, the last shutdown, which began in December 2018, ended up becoming the longest in history, at a whopping 34 days. By the time the government reopened in January 2019, about $3 billion (in 2019 dollars) had been wiped from the GDP in Q4, per data from the Congressional Budget Office, with approximately $18 billion in “federal discretionary spending” delayed over the roughly five-week stretch.

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GM climbs following upgrade, report that Trump administration seeks stake in its lithium mine partner

Shares of General Motors rose more than 2% in premarket trading Wednesday following an upgrade of the stock by UBS from neutral to buy. The firm also hiked its price target for GM by 45% to $81.

Also likely elevating GM was a Reuters report that the Trump administration is exploring taking a 10% stake in Lithium Americas, the automaker’s partner in a yet to open Thacker Pass lithium mine. Shares of Lithium Americas surged 68% in the premarket.

GM, which invested $625 million into the lithium mine last year, holds a 38% stake in the joint venture. The mine is expected to become the Western Hemispheres primary lithium source in 2028, when it’s slated to open, producing enough of the metal to make 800,000 electric vehicle batteries.

Prior to its plans for Lithium Americas, the Trump administration last month said it would take a 10% stake in Intel. In July, it announced a 15% stake in rare earths miner MP Materials.

News Reporter 1970s

Jimmy Kimmel’s suspension highlights Nexstar and Sinclair’s vast control over US airwaves

Nexstar and Sinclair control large swaths of US television stations. Nexstar’s planned merger could make their influence even greater.

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