Tesla sales of Cybertruck flop for the second year in a row: report

UGLY TRUCK LOOKS LIKE A MUTANT HUMMER

Sarah K. Burris
July 2, 2025 

RAW STORY

FILE PHOTO: A Tesla Cybertruck is parked on a local Tesla dealer in Paramus, New Jersey, U.S., July 23, 2024. REUTERS/Eduardo Munoz/File Photo

After slumping in the second quarter, Tesla's Cybertruck has now reached two years of sales slump, TechCrunch senior transportation reporter Sean O'Kane wrote on Wednesday.

Tesla has struggled with sales across the board, the Washington Post reported Wednesday. However, O'Kane noted that the Cybertruck sales are particularly low.

"Tesla delivered 384,122 vehicles in the second quarter of this year, wrapping up another weak quarter for the company as it struggles to bring the pace of sales back up to 2023 levels," the report said, citing a press release from the company.

It's a 13.5% decrease from overall Tesla sales in the second quarter of 2022. The Cybertruck wasn't released until November 30, 2023, however.

"Tesla runs a real chance of underperforming its total sales figure from 2024. If that happens, it would mean Tesla’s sales will have fallen two years in a row — despite the company once promoting the ability to grow deliveries at 50% annually," O'Kane wrote.

The second quarter was slightly better than the first quarter of the year, but the first quarter was the worst ever in the past two years.

According to Musk, the bad first quarter was attributed to production lines being shut down as they launched the upgraded Model Y. That didn't happen in the second quarter, however, and sales remained in a slump.

In fact, Business Insider reported in May that some of the staffers working on the Cybertruck and Model Y were instructed to stay home, according to O'Kane.

However, Musk told Bloomberg in a May interview that sales were "strong everywhere else" except for Europe. He also confessed that Tesla “lost some sales from the left,” but claimed the company "gained some from the right."


“If Musk continues to lead and remain in the driver’s seat, we believe Tesla is on a path to an accelerated growth path over the coming years with deliveries expected to ramp in the back-half of 2025 following the Model Y refresh cycle,” Wedbush Securities analyst Dan Ives told The Washington Post.

"Hard to see the Cybertruck as anything other than a commercial failure at this point," O'Kane wrote on Bluesky.

Tesla reports lower car sales but figures better than feared


By AFP
July 2, 2025


Tesla reported lower auto sales again in the second quarter as CEO Elon Musk's political activism weighs on the company - Copyright AFP/File Alex MARTIN

John BIERS

Tesla reported another hefty drop in auto sales Wednesday, extending a difficult period amid intensifying electric vehicle competition and backlash over CEO Elon Musk’s political activities.

The EV maker reported 384,122 deliveries in the second quarter, down 13.5 percent from the year-ago period. Shares rallied after the disclosure, which was better than some leading forecasts in recent days.

The sales figures released Wednesday, which are global, reflect the more contested nature of the EV market, which Tesla once dominated, but which now also features BYD and other low-cost Chinese companies, as well as legacy western automakers like General Motors, Toyota and Volkswagen.

But Musk’s political activism on behalf of right-wing figures has also made the company a target of boycotts and demonstrations, weighing on sales. In recent days, Musk has revived a feud with US President Donald Trump, dragging Tesla shares lower on Tuesday.

The figures portend another poor round of earnings when Tesla reports results on July 23. Analysts currently project a drop of 16 percent to $1.2 billion in profits, according to S&P Capital IQ.

Tesla has faced questions about its dearth of new retail auto products to wow consumers after Musk’s futuristic Cybertruck proved polarizing.

Analysts will be looking for an update on the state of new offerings after Tesla said in April that it planned “more affordable models” in the first half of 2025. The company has begun deliveries of its revamped Model Y in some markets, according to news reports.

Tesla launched a long-discussed robotaxi venture in Austin, Texas, lending momentum to Musk’s branding of the company as at the forefront of autonomous and artificial intelligence technology.

But reports that the self-driving cars have driven recklessly have prompted oversight from US regulators.

Heading into Wednesday’s sales figure release, notes from JPMorgan Chase and Deutsche Bank had forecast bigger drops in second-quarter deliveries, citing poor figures in Europe especially.

The JPMorgan note was especially bearish, setting a December share price target of $115, down more than 60 percent from today’s levels and citing an expected drag from the elimination of US tax credits for EVs under Trump’s legislation moving through Congress.

But Wedbush’s Dan Ives said Wednesday’s “better-than-feared” report set the stage for growth.

“If Musk continues to lead and remain in the driver’s seat, we believe Tesla is on a path to an accelerated growth path over the coming years with deliveries expected to ramp in the back-half of 2025 following the Model Y refresh cycle,” Ives said.



– Political wildcard –



A wildcard remains how Musk’s shifting relationship with Trump could affect Tesla.

Musk donated more than $270 million to Trump’s 2024 campaign, barnstorming key battleground states for the Republican.

After the election, he oversaw the launch of the “Department of Government Efficiency,” a controversial initiative that eliminated thousands of government jobs that DOGE said were part of a pattern of waste, fraud and abuse.

But Musk has broken with Trump over the White House’s flagship tax and spending bill, which Musk rated as wasteful and misguided.

Musk has called the bill “utterly insane and destructive” and accused bill supporters of backing “debt slavery.”

In response, Trump has threatened to target Musk’s business empire and warned of deporting the South African-born Musk. Tesla shares fell more than five percent on Tuesday following this back and forth.

“This high-profile feud introduces political risk,” Briefing.com said in a note Tuesday.

“The personal nature of the conflict, amplified by Trump’s comments implying Tesla’s reliance on subsidies for survival, has sparked fears of broader policy shifts targeting Musk’s business empire. This political uncertainty undermines investor confidence.”

Tesla shares rose 2.8 percent early Wednesday.

Driving on: The best states in US to own an electric vehicle

By Dr. Tim Sandle
DIGITAL JOURNAL
July 2, 2025


An Xpeng G6 electric car at the opening of their second flagship store in Hong Kong on March 21, 2025 - Copyright AFP Annabelle Gordon

Massachusetts is the best state to own an EV car, offering the most charging ports and EV stations, according to a new assessment. Another highlight from the report is that Maine offers the most generous $7,500 EV tax credit and has the best road safety rank.

Last week, the International Energy Agency reported that over one in four new cars sold globally this year are electric, with U.S. EV sales up around 10% in early 2025.

In terms of the U.S., A recent study by Hasbrook & Hasbrook Personal Injury Lawyers looked at all 50 U.S. states and scored them based on how easy they make it to own an electric vehicle. The data has been reviewed by Digital Journal.

The ranking includes things like how many places there are to charge, how safe the roads are, how warm or cold the state is, and whether buyers get any financial help. Each factor was scored on a scale of 1 to 100, with higher scores meaning better conditions for EV owners. Charging access was adjusted based on the size of each state, and more weight was given to the most important factors.

The outcome is:

State	EV Stations per 1000 mi	EV charging ports per 100 mi	Road Safety Rank	EV Purchase Tax Credit	Additional EV Annual Registration Fee	Avg temperature °F	Score
Massachusetts	473	1,146	4	3,500	0.0	47.9	100
Rhode Island	323	793	7	2,500	0.0	50.1	79.21
Connecticut	266	779	6	4125	0.0	49	79.18
New Jersey	216	677	5	4,000	0.0	52.7	75.44
Maryland	151	436	18	3,000	0.0	54.2	58.41
Maine	17	42	2	7,500	0.0	41	54.3
Florida	71	224	13	0	0.0	70.7	49.57
Vermont	52	134	3	4,000	0.0	42.9	49.22
Delaware	125	377	32	1750	0.0	55.3	46.32
New York	102	362	24	2,000	0.0	45.4	43.65

By examining the data table, Massachusetts ranks first as the best state to own an electric vehicle. It has the highest charging access in the country, with 473 charging stations per 1,000 square miles and 1,146 charging ports per 100 square miles. Along with a top-tier road safety ranking, Massachusetts makes it easy and safe to drive electric.

Rhode Island is the second best state to own an EV car with a score of 79.2. It has 793 charging ports, making it one of the easiest places to charge an EV. The state offers a $2,500 tax credit and has a high safety ranking. Compared to Massachusetts, it has fewer total stations but still offers good access due to its small size.

Connecticut ranks third with a score of 79.1, and offers the highest tax credit among the top states at $4,125. EV owners here have nearly as easy charging access as those in Rhode Island with 779 ports. Like Massachusetts and Rhode Island, it also scores well for safety.

New Jersey comes in fourth and scores 75.4. EV owners here receive $4,000 tax credit and have access to 677 charging ports. The state’s safety rating and temperature are similar to nearby states, but slightly lower charging access puts it just behind Connecticut.

Maryland ranks fifth with a score of 58.41. It provides a $3,000 tax credit and features a warmer climate, which helps reduce winter-related battery issues. While charging access is a bit more limited, Maryland still supports EV growth through strong incentives and safety.

In sixth, Maine scores 54.3 and stands out for offering the highest EV tax credit in the U.S. at $7,500. While it has fewer charging ports, its strong safety ranking and commitment to clean energy make it a great option for new EV buyers.

Florida ranks seventh scoring 49.57. It has the most battery-friendly climate, with an average annual temperature of 70.7°F, which helps with EV range. It also ranks one of the highest in road safety metric. With 224 charging ports and one of the highest safety rankings, Florida is ideal for EVs, even without a state tax credit.

Scoring 49.22, Vermont takes eighth place offering EV owners a generous $4,000 tax credit and featuring strong road safety. Though colder weather can affect batteries, Vermont’s investment in green transport is clear with its growing network of 134 charging ports.

Delaware ranks ninth and scores 46.32. The EV owners have access to 377 charging ports per 100 square miles, which is better than Vermont and Florida. But a lower road safety score and a smaller tax credit of $1,750 place it further down the list.

New York rounds out the top ten with a score of 43.65. It provides a $2,000 tax credit and 362 charging ports, and while its colder climate and lower safety ranking impact its score, the state remains a major player in supporting electric vehicle adoption across the Northeast.

 SPACE/COSMOS

Possible interstellar object spotted zooming through Solar System


By AFP
July 2, 2025


An image of the second interstellar object, 2I/Borisov, taken in 2019. Astronomers have now spotted a third - Copyright EUROPEAN SOUTHERN OBSERVATORY/AFP/File O. HAINAUT

Daniel Lawler

An object that appears to be from beyond our Solar System has been spotted hurtling towards the Sun, which if confirmed would be the third visitor from the stars ever detected, the European Space Agency said Wednesday.

The object, which is currently being referred to as A11pl3Z, poses no threat to Earth, the ESA’s planetary defence head Richard Moissl told AFP.

“It will fly deep through the Solar System, passing just inside the orbit of Mars,” but will not hit our neighbouring planet, he said.

Excited astronomers are still refining their calculations, but the object appears to be zooming more than 60 kilometres (37 miles) a second.

This would mean it is not bound by the Sun’s orbit, unlike comets and asteroids, which all originate from within the Solar System.

Its trajectory also “means it’s not orbiting our star, but coming from interstellar space and flying off to there again,” Moissl said.

“We are not 100 percent certain at the moment, but anything else would be a surprise,” he added.

Official confirmation is expected to come from the International Astronomical Union’s Minor Planet Center, which has recorded more than 100 observations of the object so far.

The NASA-funded ATLAS survey in Hawaii first discovered the object on Tuesday, US astronomer David Rankin wrote on the social media platform Bluesky.

Professional and amateur astronomers across the world then searched through past telescope data, tracing its trajectory back to at least June 14.

The object is currently estimated to be roughly 10-20 kilometres wide, Moissl said. But the object could be smaller if it is made out of ice, which reflects more light.

“It will get brighter and closer to the Sun until late October and then still be observable (by telescope) until next year,” Moissl said.



– Our third visitor –



It would be the third time humanity has detected something coming from the stars.

The first, ‘Oumuamua, was discovered in 2017. It was so strange that at least one prominent scientist became convinced it was an alien vessel — though this has since been dismissed by further research.

Our second interstellar visitor, 2I/Borisov, was spotted in 2019.

Mark Norris, an astronomer at the UK’s University of Central Lancashire, told AFP that the new object appears to be “moving considerably faster than the other two extra-solar objects that we previously discovered.”

The object is currently roughly around the distance from Jupiter away from Earth, Norris said.

He lamented that he would not be able to observe the object on his telescope on Wednesday night, because it is currently only visible in the Southern Hemisphere.

Norris pointed to modelling estimating that there could be as many 10,000 interstellar objects drifting through the Solar System at any given time, though most would be smaller than the newly discovered object.

If true, this suggests that the newly online Vera C. Rubin Observatory in Chile could soon be finding these dim interstellar visitors every month, Norris said.

Moissl said it is not feasible to send a mission into space to intercept the new object.

Still, these visitors offer scientists a rare chance to study something outside of our Solar System.

For example, if we detected precursors of life such as amino acids on such an object, it would give us “a lot more confidence that the conditions for life exist in other star systems,” Norris said.

Double detonation: New image shows remains of star destroyed by pair of explosions

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This image, taken with ESO’s Very Large Telescope (VLT), shows the supernova remnant SNR 0509-67.5. These are the expanding remains of a star that exploded hundreds of years ago in a double-detonation – the first photographic evidence that stars can die with two blasts.

The data were captured with the Multi-Unit Spectroscopic Explorer (MUSE) instrument at the VLT. MUSE allows astronomers to map the distribution of different chemical elements, displayed here in different colours. Calcium is shown in blue, and it is arranged in two concentric shells. These two layers indicate that the now-dead star exploded with a double-detonation.

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Credit: ESO/P. Das et al. Background stars (Hubble): K. Noll et al.

For the first time, astronomers have obtained visual evidence that a star met its end by detonating twice. By studying the centuries-old remains of supernova SNR 0509-67.5 with the European Southern Observatory’s Very Large Telescope (ESO’s VLT), they have found patterns that confirm its star suffered a pair of explosive blasts. Published today, this discovery shows some of the most important explosions in the Universe in a new light.

Most supernovae are the explosive deaths of massive stars, but one important variety comes from an unassuming source. White dwarfs, the small, inactive cores left over after stars like our Sun burn out their nuclear fuel, can produce what astronomers call a Type Ia supernova.

"The explosions of white dwarfs play a crucial role in astronomy,” says Priyam Das, a PhD student at the University of New South Wales Canberra, Australia, who led the study on SNR 0509-67.5 published today in Nature Astronomy. Much of our knowledge of how the Universe expands rests on Type Ia supernovae, and they are also the primary source of iron on our planet, including the iron in our blood. “Yet, despite their importance, the long-standing puzzle of the exact mechanism triggering their explosion remains unsolved," he adds.

All models that explain Type Ia supernovae begin with a white dwarf in a pair of stars. If it orbits close enough to the other star in this pair, the dwarf can steal material from its partner. In the most established theory behind Type Ia supernovae, the white dwarf accumulates matter from its companion until it reaches a critical mass, at which point it undergoes a single explosion. However, recent studies have hinted that at least some Type Ia supernovae could be better explained by a double explosion triggered before the star reached this critical mass.

Now, astronomers have captured a new image that proves their hunch was right: at least some Type Ia supernovae explode through a ‘double-detonation’ mechanism instead. In this alternative model, the white dwarf forms a blanket of stolen helium around itself, which can become unstable and ignite. This first explosion generates a shockwave that travels around the white dwarf and inwards, triggering a second detonation in the core of the star — ultimately creating the supernova.

Until now, there had been no clear, visual evidence of a white dwarf undergoing a double detonation. Recently, astronomers have predicted that this process would create a distinctive pattern or fingerprint in the supernova’s still-glowing remains, visible long after the initial explosion. Research suggests that remnants of such a supernova would contain two separate shells of calcium.  

Astronomers have now found this fingerprint in a supernova’s remains. Ivo Seitenzahl, who led the observations and was at Germany’s Heidelberg Institute for Theoretical Studies when the study was conducted, says these results show “a clear indication that white dwarfs can explode well before they reach the famous Chandrasekhar mass limit, and that the ‘double-detonation’ mechanism does indeed occur in nature.” The team were able to detect these calcium layers (in blue in the image) in the supernova remnant SNR 0509-67.5 by observing it with the Multi Unit Spectroscopic Explorer (MUSE) on ESO’s VLT. This provides strong evidence that a Type Ia supernova can occur before its parent white dwarf reaches a critical mass.

Type Ia supernovae are key to our understanding of the Universe. They behave in very consistent ways, and their predictable brightness — no matter how far away they are — helps astronomers to measure distances in space. Using them as a cosmic measuring tape, astronomers discovered the accelerating expansion of the Universe, a discovery that won the Physics Nobel Prize in 2011. Studying how they explode helps us to understand why they have such a predictable brightness.

Das also has another motivation to study these explosions. “This tangible evidence of a double-detonation not only contributes towards solving a long-standing mystery, but also offers a visual spectacle,” he says, describing the “beautifully layered structure” that a supernova creates. For him, “revealing the inner workings of such a spectacular cosmic explosion is incredibly rewarding.”

More information

This research was presented in a paper to appear in Nature Astronomy titled “Calcium in a supernova remnant shows the fingerprint of a sub-Chandrasekhar mass explosion”.

The team is composed of P. Das (University of New South Wales, Australia [UNSW] & Heidelberger Institut für Theoretische Studien, Heidelberg, Germany [HITS]), I. R. Seitenzahl (HITS), A. J. Ruiter (UNSW & HITS & OzGrav: The ARC Centre of Excellence for Gravitational Wave Discovery, Hawthorn, Australia & ARC Centre of Excellence for All-Sky Astrophysics in 3 Dimensions), F. K. Röpke (HITS & Institut für Theoretische Astrophysik, Heidelberg, Germany & Astronomisches Recheninstitut, Heidelberg, Germany), R. Pakmor (Max-Planck-Institut für Astrophysik, Garching, Germany [MPA]), F. P. A. Vogt (Federal Office of Meteorology and Climatology – MeteoSwiss, Payerne, Switzerland), C. E. Collins (The University of Dublin, Dublin, Ireland & GSI Helmholtzzentrum für Schwerionenforschung, Darmstadt, Germany), P. Ghavamian (Towson University, Towson, USA), S. A. Sim (Queen’s University Belfast, Belfast, UK), B. J. Williams (X-ray Astrophysics Laboratory NASA/GSFC, Greenbelt, USA), S. Taubenberger (MPA & Technical University Munich, Garching, Germany), J. M. Laming (Naval Research Laboratory, Washington, USA), J. Suherli (University of Manitoba, Winnipeg, Canada), R. Sutherland (Australian National University, Weston Creek, Australia), and N. Rodríguez-Segovia (UNSW).

The European Southern Observatory (ESO) enables scientists worldwide to discover the secrets of the Universe for the benefit of all. We design, build and operate world-class observatories on the ground — which astronomers use to tackle exciting questions and spread the fascination of astronomy — and promote international collaboration for astronomy. Established as an intergovernmental organisation in 1962, today ESO is supported by 16 Member States (Austria, Belgium, Czechia, Denmark, France, Finland, Germany, Ireland, Italy, the Netherlands, Poland, Portugal, Spain, Sweden, Switzerland and the United Kingdom), along with the host state of Chile and with Australia as a Strategic Partner. ESO’s headquarters and its visitor centre and planetarium, the ESO Supernova, are located close to Munich in Germany, while the Chilean Atacama Desert, a marvellous place with unique conditions to observe the sky, hosts our telescopes. ESO operates three observing sites: La Silla, Paranal and Chajnantor. At Paranal, ESO operates the Very Large Telescope and its Very Large Telescope Interferometer, as well as survey telescopes such as VISTA. Also at Paranal ESO will host and operate the Cherenkov Telescope Array South, the world’s largest and most sensitive gamma-ray observatory. Together with international partners, ESO operates ALMA on Chajnantor, a facility that observes the skies in the millimetre and submillimetre range. At Cerro Armazones, near Paranal, we are building “the world’s biggest eye on the sky” — ESO’s Extremely Large Telescope. From our offices in Santiago, Chile we support our operations in the country and engage with Chilean partners and society. 

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Public Take The Lead In Discovery Of New Exploding Star

Full GOTO-North node under the skies of La Palma CREDIT: K. Ulaczyk (2024)

 July 2, 2025 

By Eurasia Review

Previously described as playing astronomical ‘spot the difference,’ Kilonova Seekers asks the public to compare the latest images of a section of night sky to an image of the same section of space taken on previous nights. Their goal – to spot new stars or significant changes in light intensity that may indicate that something remarkable has happened in space.

Published today in Astronomy & Astrophysics, the project has announced its first published major discovery – a bright exploding star.

The object underwent an extreme brightening (increasing by 2500 times) that was not seen when compared to the image taken 2 days earlier. The quick response and diligent work of the public allowed the object to be studied and classified early in its evolution, identifying it as a cataclysmic variable star, and given the name GOTO0650.

Co-lead of Kilonova Seekers, Dr. Tom Killestein, Warwick Prize Fellow in the Astronomy and Astrophysics group, University of Warwick said: “Kilonova Seekers is a unique opportunity for members of the public to take part in true real-time astrophysics. Remarkably, public volunteers identified this star as an object of interest within 3 1/2 hours of the image being taken by the GOTO telescopes – this discovery could have been missed among many other objects without their efforts. 

“The involvement of the volunteers didn’t stop there, as there was a huge follow-up response from the public. It was flagged for further observations from the Swift and Einstein Probe space observatories, and GOTO0650 was bright enough for amateur astronomers to take impressively high-quality observations of with their own equipment, which formed a key part of the paper and really helping us understand the object.” 

Cataclysmic variable stars sporadically increase in brightness by large amounts before dropping back to normal levels. They are compact binary star systems, consisting of a white dwarf star stealing matter from its companion donor star. Periodically, material from the donor star hits a critical density and temperature within the disc of gas that surrounds the white dwarf, which causes an explosive outburst and bright flashes of light. 

The fast response of the public enabled the team to get an unusually highly complete dataset on the star, including spectroscopy, X-ray, and UV measurements, supplemented by the impressively high-quality observations of the amateur astronomers. These observations suggest it is a period bouncer, the final state of a cataclysmic variable star, and a rare object to find even in the age of widespread wide-field imaging surveys. 

Co-lead of Kilonova Seekers, Dr Lisa Kelsey, Leverhulme Early Career Fellow, Institute of Astronomy and Kavli Institute for Cosmology, Cambridge said: “Citizen science is a powerful way to make novel serendipitous discoveries in vast datasets that would normally need to be analysed in depth by scientists. 

“With over 2.8 million classifications so far, the discovery of GOTO0650 is really the pinnacle of 2 years of consistent hard work from our volunteers. Without the Kilonova Seekers volunteers flagging this object, rapid follow-up would not have been possible, and this object may have been missed entirely.” 

The Kilonova Seekers Project is approaching its two-year anniversary of inviting members of the public to analyse near real-time data collected from the Warwick-led Gravitational-wave Optical Transient Observer (GOTO) project. This project takes all-sky survey images of space from two arrays of telescopes located on opposite sides of the planet – in Spain and Australia.  

The vast numbers of observations taken in these imaging surveys will soon be beyond the capacity of individual and small teams of scientists to label and validate. Citizen Science is a viable, mutually beneficial solution to avoid objects like GOTO0650 being missed.  

As a shining example of such efforts, Kilonova Seekers has provided over 3,500 members of the public with the opportunity to discover supernovae and variable stars using real data. With volunteers from around the world, there is almost always someone online looking at the data in real-time. 

Svetoslav Alexandrov, Kilonova Seekers Volunteer based in Bulgaria said: “Traffic in Sofia, Bulgaria, is always awful during the mornings so I have to pass time on the bus somehow, and contributing to citizen science is an excellent way to do that! Kilonova Seekers is on the top of my list, because it’s mobile-friendly and most importantly, it offers us fresh imagery almost every single day. 

“I literally screamed with joy when I saw that I was going to be a co-author of the research paper. I’m certain that people on the street raised their eyebrows when they saw me screaming and dancing, but I didn’t care. I knew I am a co-discoverer of something significant, and this was all that mattered” 

UK govt backs finance minister after tears in parliament


By AFP
July 2, 2025


British Prime Minister Keir Starmer, left, with Chancellor of the Exchequer Rachel Reeves in parliament on Wednesday - Copyright AFP/File Alex MARTIN

The British government said Wednesday that finance minister Rachel Reeves was “going nowhere” after she appeared visibly upset in parliament as rumours swirled around her future.

Tears rolled down Reeves’s face after Prime Minister Keir Starmer declined to guarantee that she would remain in place until the next general election, likely in 2029.

It came after Starmer’s Labour government U-turned over key welfare reforms, wiping out a multibillion-pound boost to public finances and triggering speculation that Reeves could lose her job.

The pound slumped more than one percent against the dollar on Wednesday and London’s stock market retreated amid the speculation.

A spokeswoman for Starmer later told reporters that Reeves had his “full backing”, while a spokesman for Reeves said she had been upset due to a “personal matter”.

“The Chancellor is going nowhere. She has the Prime Minister’s full backing,” Starmer’s press secretary said.

Asked why he had not confirmed faith in Reeves when asked in the House of Commons, she said: “He has done so repeatedly.”

“The Chancellor and the Prime Minister are focused entirely on delivering for working people,” she added.

Asked about Reeves’s tears, her spokesman said: “It’s a personal matter, which, as you would expect, we are not going to get into.”

“The Chancellor will be working out of Downing Street this afternoon,” he said.

Starmer backed down on the welfare plans on Tuesday after a rebellion by MPs from his own party, in a major blow to his authority.

It has also left an almost £5 billion black hole in Reeves’s plans, leading to the possibility that she will have to raise taxes on “working people”, something that she has repeatedly ruled out.

Reeves has also ruled out tweaking her self-imposed rule that day-to-day spending should be met through tax receipts rather than borrowing.

Trump says Vietnam to face 20% tariff under ‘great’ deal

STILL TOO HIGH, ZERO TARIFFS 

By AFP
July 2, 2025


US President Donald Trump announced that Vietnam, a global manufacturing hub dependent on exports, has struck a trade deal that would see its exports to the United States face a minimum 20 percent tariff, while opening its market to US products - Copyright AFP Nhac NGUYEN

Alex PIGMAN

President Donald Trump announced Wednesday that he had struck a trade deal with Vietnam under which the country would face a minimum 20 percent tariff and open its market to US products.

The deal comes less than a week before Trump’s self-imposed July 9 deadline for steeper tariffs on US trade partners to take effect if agreements are not reached.

Shares in clothing companies and sport equipment manufacturers — which have a large footprint in Vietnam — rose on the news, but later declined sharply after the president released details including the continued tariffs, which were higher than expected.

If confirmed, the terms of the agreement will significantly increase the price of shoes and clothing that Vietnam exports to the United States, but Hanoi escapes the threat of the more severe 46 percent tariff threatened by Trump in April.

“It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam,” Trump wrote on his Truth Social platform.

He said that under the “Great Deal of Cooperation,” imports of Vietnamese goods will face a 20 percent US tariff, while goods that pass through Vietnam to circumvent steeper trade barriers — so-called “transshipping” — will see a 40 percent tariff.



– ‘Total Access’ –



Trump’s trade advisor Peter Navarro has called Vietnam a “colony of China,” saying that one third of Vietnamese products are in fact relabelled Chinese goods.

Trump said that “in return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade,” he said.

“In other words, they will ‘OPEN THEIR MARKET TO THE UNITED STATES,’ meaning that we will be able to sell our product into Vietnam at ZERO Tariff.”

The president said he believed US-made SUVs, “which do so well in the United States, will be a wonderful addition to the various product lines within Vietnam.”

In a government statement, Vietnam confirmed that negotiating teams had come to an agreement to address the reciprocal tariff issue, but did not detail any tariff terms.

Trump “affirmed that the US will significantly reduce reciprocal taxes for many Vietnamese export goods and will continue to cooperate with Vietnam in resolving difficulties affecting bilateral trade relations, especially in areas prioritized by both sides,” the statement said.

Trump’s announcement comes a week before the threatened US reimposition of steep tariffs on dozens of economies, including the European Union and Japan, many of which are still scrambling to reach deals that would protect them from the measures.

Those higher tariffs are part of a package Trump initially imposed in April, citing a lack of “reciprocity” in trading relationships, before announcing a temporary lowering to 10 percent.

Without a deal, Vietnam’s “reciprocal tariff” would have risen from the baseline 10 percent to 46 percent.

Since April, Washington had so far only announced a pact with Britain and a deal to temporarily lower retaliatory duties with China.

Both involve the United States maintaining some of Trump’s tariffs on the trading partners.

The terms of the UK deal are more narrowly focused than those announced by Trump with Vietnam, with London and Washington agreeing to cut US tariffs on cars from 27.5 percent to 10 percent, with a limit of 100,000 vehicles a year.

It also fully eliminated the 10 percent tariff on goods such as engines and aircraft parts.

In return, Britain agreed to further open its market to US ethanol and beef.

TRUMPNOMICS TOO

In US capital, Trump tariffs bite into restaurant profits


By AFP
July 2, 2025


John Filkins, corporate beverage director at Clyde's Restaurant Group, said businesses are having to pass on some cost hikes to customers - Copyright AFP Drew ANGERER

Beiyi SEOW

Brazilian coffee beans, French champagne and Chinese teas — drinks are a profit driver for US restaurants, but higher import costs have eaten into margins and fed into consumer prices in the three months since President Donald Trump unveiled sweeping global tariffs.

A stone’s throw from the White House, a restaurant group that takes pride in dishing up fresh local meat and produce has found itself having to raise prices on its menus.

“The reality is, we have to pass along some of those to our guests,” said John Filkins, corporate beverage director at Clyde’s Restaurant Group.

“Could be anywhere from 50 cents to $1 on certain wines by the glass, or spirits, or some of our food menu items,” he told AFP.

“We’ve seen huge increases in coffee and in teas, and we’re beginning to see some of those increases in food, as well as paper products coming on through as well,” he added.

Clyde’s, which opened in the 1960s in Washington, has more than a dozen restaurants in and around the US capital.

One of them is The Hamilton in downtown Washington, where drinks prices have ticked up.

While management has tried to limit increases, Filkins said this has been tough.

Businesses have encountered snarled supply chains and higher costs since Trump imposed fresh tariffs after returning to the presidency in January.

In April, the president unleashed his widest-ranging salvo, a 10 percent duty on imports from most trading partners. This is expected to surge to higher levels for dozens of economies.



– ‘Low cash, low margin’ –



Leaders like Filkins are eyeing a deadline next Wednesday when the steeper tariffs are due to kick in.

These are customized to each partner, with the level for European Union products rising to 20 percent and that for Japanese goods jumping to 24 percent unless they strike deals to avert or lower the rates.

Filkins warned that the longer tariffs remain in place, the fewer small, independent distributors, importers and restaurants there might be.

“The hope is we don’t see tariffs to the extent where we’re seeing them any longer,” he added.

“Restaurants are, at the end of the day, typically low cash, low margin,” Filkins said.

A typical outfit probably runs “in the single digits in terms of profit margin,” he noted.

This means that cutting out 10 percent to 15 percent of their profit for wine by the glass, for example, could prove a significant blow.



– 20-30% hikes –



Clyde’s sources coffee beans from places like Brazil and Indonesia for its blends, while getting teas from India and China.

“Over the course of the last probably six months, we’ve seen about a 20 to 30 percent increase of that cost,” Filkins said.

This is partly because suppliers and distributors are not only paying the 10 percent tariff but forking out more due to exchange rates.

Imports from China face a 30 percent tariff currently even though Washington and Beijing have temporarily lowered tit-for-tat levies on each other’s goods.

Without a deal, products from Indonesia face a 32 percent duty come Wednesday, and the rate for India spikes to 26 percent.

“For liquor, beer and wine, most of the wine we import comes from the EU,” Filkins said, noting the impact is biggest on products from France, Italy, Spain and Portugal so far.

Yet, his company is trying to hold off passing on additional costs entirely.

“Consumers are not comfortable spending more in the current climate,” said Filkins.

The world’s biggest economy has fared well after the Covid-19 pandemic, helped by a solid labor market that allowed consumers to keep spending.

But economic growth has slowed alongside hiring.

Economists are monitoring to see if tariffs feed more broadly into inflation this summer, and households become more selective with purchases.

With Trump’s approach of announcing, adjusting and halting tariffs roiling financial markets and fueling uncertainty — forcing businesses to put investments on hold — Filkins hopes for an easing of levies.

“It’s hard for all of us to forecast what’s going to happen in the next eight days,” said Filkins. “We can’t base all of our decisions on speculation.”

TRUMPNOMICS

US private sector shed jobs for first time in recent years: ADP


By AFP
July 2, 2025


US private sector employers lost 33,000 jobs in June, according to payroll firm ADP 

Copyright AFP/File Frederic J. BROWN

Beiyi SEOW

The US private sector unexpectedly lost jobs in June, according to data from payroll firm ADP on Wednesday, a potential sign of labor market weakness amid uncertainty from President Donald Trump’s tariffs.

It was the first such decline in recent years, in data that will be scrutinized ahead of government employment numbers due to be released a day later.

As companies grapple with uncertainty from Trump’s shifting tariff policies — alongside supply chain disruptions and added cost pressures — analysts are watching for signs that the world’s biggest economy may be less solid than expected.

Private sector employment declined by 33,000 last month, ADP said, while job growth in May was revised lower to 29,000.

“Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month,” ADP chief economist Nela Richardson said in a statement.

But she maintained that the hiring slowdown “has yet to disrupt pay growth.”

The losses came about in areas like professional and business services, alongside education and health services.

But sectors like leisure and hospitality, alongside manufacturing, showed gains, ADP said.

Meanwhile, pay growth held steady, according to the report.

For those who remained in their jobs, annual pay gains were little-changed at 4.4 percent. Increases for those who changed jobs was 6.8 percent in June, slowing slightly.

The last massive contraction in private sector employment came about during the pandemic, while ADP historical data indicates a smaller loss in early 2023.

Analysts have cautioned that the ADP data sometimes differ significantly from official numbers.

But the decline still marked a concerning development, they said.

Since returning to the presidency, Trump has imposed a sweeping 10 percent tariff on almost all US trading partners and higher levels on imports of steel, aluminum and autos.

The president’s approach of unveiling, then adjusting or pausing duties, has also sent shocks through supply chains.



– ‘Startling’ –



“The ADP headline figure is well below market expectations, and the optics of a decline is startling,” said Carl Weinberg, chief economist at High Frequency Economics.

“Whether this report is accurate or not, traders and investors will read today’s number as a dark result for trading today,” he added in a note.

Among different types of companies, the decline in June was riven by smaller and medium-sized businesses, ADP data showed.

“We could be in for a downside surprise in Thursday’s official jobs report,” warned LPL Financial chief economist Jeffrey Roach.

While he believes ADP’s forecasting value is “minimal on a monthly basis,” it can be helpful in determining long term trends.

Adam Sarhan from 50 Park Investments said it is the first time in recent months that the US jobs market has disappointed and contracted.

“That is worrisome because up until now unemployment has been low and jobs have been strong and growing,” Sarhan said.

Weinberg cautioned that companies are likely to respond to the chances of a tariff-induced hike in costs by “becoming more aggressive about trimming their workforces.”

“This may be the tip of an iceberg, but it also could be a false start,” he said.

Drought-hit Morocco turns to desalination to save vegetable bounty


By AFP
July 2, 2025


Farmers irrigate their field in the Chtouka region of southern Morocco - Copyright AFP Abdel Majid BZIOUAT

Kaouthar Oudrhiri

On the drought-stricken plains of Morocco’s Chtouka region, cherry tomato farms stretch as far as the eye can see, clinging to life through a single, environmentally contentious lifeline: desalination.

“We wouldn’t be here without it,” said Abir Lemseffer, who manages production for the tomato giant Azura.

Severe drought driven by climate change has gripped the North African country since 2018, leaving Azura’s 800 hectares (2,000 acres) of farms entirely dependent on desalinated water.

But the technology comes at a high cost — both financially and environmentally.

It is energy-intensive, and in a country where more than half of the electricity still comes from coal, it carries a heavy carbon footprint.

Since 2022, Morocco’s largest desalination plant, located nearby, has been producing 125,000 cubic metres (4.4 million cubic feet) of water a day.

The supply irrigates 12,000 hectares of farmland and provides drinking water for 1.6 million people in Agadir and surrounding areas, said Ayoub Ramdi of the regional agricultural development office.

By the end of 2026, officials hope to boost production to 400,000 cubic metres of water, half of which would be designated for agriculture.

Without that water, “a catastrophic scenario would loom over Morocco”, said Rqia Bourziza, an agronomist.

Agriculture, which contributes about 12 percent to Morocco’s overall economy, has been badly hit by six consecutive years of drought — prompting the country to go all-in on desalination.

Across Morocco, there are 16 plants capable of producing 270 million cubic metres of water per year, with a target of reaching 1.7 billion cubic metres by 2030.



– Pricey water –



While around 1,500 farmers in the Agadir region make use of the water provided by the plant, others don’t because it’s simply too expensive.

Among them is Hassan, who grows courgettes and peppers on half a hectare of land and uses water from a well shared with 60 other farmers.

“I can’t afford to use that water,” he said, declining to give his full name.

Desalinated water is sold at $0.56 per cubic metre, excluding taxes, compared with $0.11 per cubic metre for conventional water.

That hefty price tag comes despite a 40 percent subsidy from public coffers.

Ali Hatimy, another agronomist, said “the cost of desalinated water significantly reduces the range of potential crops because only very high-value-added crops can offset it”.

Bourziza insisted that desalination was “a very good alternative” but only for high-value crops such as tomatoes and orchard fruits.

Beyond the financial cost, desalination also exerts an environmental cost, said Hatimy.

“The production of desalinated water requires tremendous amounts of electrical energy and brine discharges impact marine ecosystems,” he said.

Highly concentrated brine is a byproduct of the desalination process.

Ramdi, from the agricultural development office, said that “no impact” had been observed in the waters around Agadir, adding that the brine was diluted before its release.

While Morocco has a growing share of renewable energy, 62 percent of its electricity came from coal in 2023 and 14 percent from oil and gas, according to the International Energy Agency.



– Insufficient groundwater –



The stakes in the wider region of Souss-Massa, which accounts for 85 percent of Morocco’s fruit and vegetable exports, are high.

Nearly two million tonnes are produced each year, with a turnover of $1.1 billion.

Ramdi said the desalination plant had thus helped to protect $1 billion of revenue a year and more than a million jobs.

“Desalination has saved agriculture in Chtouka,” said Mohamed Boumarg, walking through one of his tomato greenhouses.

“Before, I only cultivated five hectares because I was constrained by the amount of water I had. Groundwater was not sufficient,” said the 38-year-old farmer who now grows 20 hectares of tomatoes, with 60 percent of his crop marked for export.

“Our survival depends on it,” said Lemseffer of Azura. “Either we accept sacrificing some of our margin by using desalinated water, or we close up shop.”