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Trump agrees to cut tariffs on UK autos, steel and aluminum in a planned trade deal with Britain

In Brief:
  • Trump and Starmer outline a U.S.- agreement
  • on U.K. steel and aluminum to be cut to 0%
  • U.S. to export more beef and ethanol to the UK
  • Deal signals return of U.S. trade diplomacy under Trump

WASHINGTON (AP) — has agreed to cut tariffs on U.K. autos, steel and aluminum in a planned trade deal with Britain, which would buy more American beef and streamline its customs process for goods from the United States.

The symbolically resonant agreement announced Thursday still has yet to be finalized, but it suggested that Trump was still able to negotiate with other countries after his vast set of tariffs stoked fears around the world of an economic downturn and higher .

The announcement provided a political victory for U.K. Prime Minister and offered a degree of validation for Trump’s claims that his turbulent approach on trade may be able to rebalance the on his preferred terms.

The U.S. president talked up the agreement to reporters from the Oval Office, even as the fine print remains in flux despite his prior statements that a full agreement was signed

“The final details are being written up,” Trump told reporters. “In the coming weeks, we’ll have it all very conclusive.”

The president said that the agreement would lead to more beef and ethanol exports to the U.K., which would also streamline the processing of U.S. goods though customs. Commerce Secretary Howard Lutnick said the baseline 10% tariffs would stay in place, while U.K. officials said that Trump’s would go from 27.5% to 10% on a quota of 100,000 vehicles and the import taxes on steel and aluminum would go from 25% to zero.

Trump cautioned that the agreement with its preservation of a 10% tariff was not a template for other countries pursuing possible trade deals with the U.S. He said he intends to charge higher rates on other countries as part of any agreement — a sign that the import taxes could stay in place in ways that economists warn would reduce economic growth.

“That’s a low number,” Trump said of his 10% tariff rate.

Starmer, speaking over the phone to Trump, stressed the importance of the relationship between the two countries as the anniversary of the World War II victory in Europe was being commemorated.

“To be able to announce this great deal on the same deal 80 years forward, almost at the same hour and as we were 80 years ago with the U.K. and the U.S. standing side by side, I think is incredibly important,” Starmer said.

Starmer later spoke to workers at a Jaguar Land Rover plant and touted the deal, which he said would protect thousands of auto jobs. He told the workers that “this is just the start,” saying “we are hammering out further details to reduce barriers to trade with the United States and across the world.”

The planned deal was the first outlined since Trump began his stutter-step efforts to rewire the global economy by dramatically increasing import taxes in an attempt to increase domestic manufacturing. The Republican president quickly rolled out tariffs after returning to the White House, targeting traditional allies such as the U.K. with import taxes on steel, aluminum and autos. Trump announced near universal tariffs on April 2, then partially retreated a week later and announced that his administration would seek individual agreements with various countries over the next few months.

The U.S. already runs a trade surplus with the U.K., making it a bit easier to find common ground as Trump has staked his tariffs on specifically eliminating the annual trade deficits with multiple nations he says have taken advantage of the U.S.

No new deals have been reached with America’s largest trading partners, including Canada, Mexico and China. Trump has left the highest tariffs in place on China, sparking a confrontation between the world’s two biggest economies. Washington and Beijing are sending officials to Switzerland this weekend for an initial round of trade talks.

Trump promised on Thursday that there are “many other deals, which are in serious stages of negotiation, to follow!”

Starmer, speaking at a conference in London, said “talks with the U.S. have been ongoing, and you’ll hear more from me about that later today.”

The U.S. and the U.K. have been aiming to strike a bilateral trade agreement since the British people voted in 2016 to leave the European Union, allowing the country to negotiate independently of the rest of the continent. Then-Prime Minister Boris Johnson touted a future deal with the U.S. as an incentive for .

Negotiations started in 2020, during Trump’s first term. But the talks made little progress under President Joe Biden, a Democrat and a critic of Brexit. Negotiations resumed after Trump returned to office in January and intensified in recent weeks.

A major goal of British negotiators has been to reduce or lift the import tax on U.K. cars and steel, which Trump set at 25%. The U.S. is the largest destination for British cars, accounting for more than a quarter of U.K. auto exports in 2024, according to the Office for National Statistics.

Britain has also sought tariff exemptions for pharmaceuticals, while the U.S. wants greater access to the British market for agriculture products. Starmer’s government has said it won’t lower U.K. food standards to allow in chlorine-rinsed American chicken or hormone-treated beef.

The British government will see a deal as a vindication of Starmer’s emollient approach to Trump, which has avoided direct confrontation or criticism. Unlike the European Union, Britain did not announce retaliatory tariffs on U.S. goods in response to Trump’s import taxes.

A trade deal with the United Kingdom would be symbolically important and a relief for British exporters. But an agreement would do little to address Trump’s core concern about persistent trade deficits that prompted him to impose import taxes on countries around the world.

The U.S. ran a $11.9 billion trade surplus in goods with the U.K. last year, according to the Census Bureau. The $68 billion in goods that the U.S. imported from the U.K. last year accounted for just 2% of all goods imported into the country.

The U.S. is much more important to the U.K. economy. It was Britain’s biggest trading partner last year, according to government statistics, though the bulk of Britain’s exports to the U.S. are services rather than goods.

Trump has previously said that his leverage in talks would be U.S. consumers, but he appeared to suggest that the U.K. would also start buying more American-made goods.

“I think that the United Kingdom, like every other country, they want to … go shopping in the United States of America,” he said.

A trade deal with the U.S. is one of several that Starmer’s government is seeking to strike. On Tuesday, Britain and India announced a trade agreement after three years of negotiations. The U.K. is also trying to lift some of the barriers to trade with the EU imposed when Britain left the bloc in 2020.

Roanoke’s Carilion gets state OK for kidney transplants


SUMMARY:
• received state approval to offer kidney transplants
• Transplant surgeries will take place at Memorial Hospital
• opposed the plan, citing impact on its program.
• Support for Carilion program included 1,500 letters from community members

 

Carilion Clinic has the state’s blessing to move forward with a kidney transplant program, despite public opposition from competitor UVA Health and a 2024 recommendation from the staff of the Division of (DCOPN) that the Roanoke-based health system’s application be denied.

In an email Wednesday, Dr. Karen Shelton, Virginia’s health commissioner, approved Carilion’s application for the program and stated that it meets a public need.

Carilion offering a kidney transplant program, she wrote, will “improve access to renal transplant services for a significant number of end-stage renal disease patients … a large portion of whom live in rural areas and face time-consuming transportation challenges on a daily basis.”

Carilion announced Thursday that it expects to begin offering the surgeries in 2026.

Dr. David Salzberg, lead surgeon for Carilion’s kidney transplant program, emphasized at a press event held Thursday that the kidney transplant program has widespread public support. More than 1,500 community members sent letters to the DCOPN in support of the health system launching a kidney transplant program and 16 localities approved resolutions supporting the application, according to Carilion.

Dr. David Salzberg, lead surgeon for Carilion Clinic's kidney transplant program speaks at Carilion's Center for Simulation, Patient Safety and Human Factors Thursday. Photo by Beth JoJack
Dr. David Salzberg, lead surgeon for Carilion Clinic’s kidney transplant program, speaks at Carilion’s Center for Simulation, Patient Safety and Human Factors Thursday. Photo by Beth JoJack

“The people of , Roanoke and the surrounding areas have stepped up,” he said. “They, more than anyone, recognize the need for … kidney transplant service in this area.”

Transplant surgeries will take place at Carilion Roanoke Memorial Hospital. The health system will have a transplant clinic in Roanoke and plans to establish another in the New River Valley. Carilion projects the capital cost for the transplant program to be $150,000.

Salzberg has worked at Carilion since 2016 and is the health system’s director of metabolic and bariatric surgery. He completed a transplant fellowship at the Medical College of Virginia in 2007.

Of the state’s six facilities where kidney transplants are performed, none are located west of .

For 79% of kidney transplant patients in Southwest Virginia, accessing services requires a two- to four- hour drive, according to Carilion.

However, UVA Health opened a transplant clinic in Wytheville earlier this year. The Charlottesville-based health system also offers other transplant clinics in Martinsville, Roanoke, Lynchburg, Norfolk, Newport News, Richmond, and Charlottesville. At clinics, kidney transplant patients can receive testing and consultations prior to surgery as well as post-surgery care; although, is conducted at UVA Health’s Charles O. Strickler Transplant Center in Charlottesville.

In a statement, UVA Health said Thursday that it respects the Virginia Department of Health’s “thorough review process.”

“VDH’s approval reflects Carilion Clinic’s dedication to expanding care options for patients in Southwest Virginia,” UVA Health stated. “UVA Health will continue to provide specialized transplant care close to home at nine locations throughout Virginia, including four outpatient clinics in Southwest Virginia, as part of UVA Health’s 30-year commitment to bringing specialized care to the region’s patients in their home communities.”

In a letter to the state last year, UVA Health raised several objections to Carilion’s proposal for a kidney transplant program, including a concern that it would pull patients from UVA Health’s program.

In a May 2024 analysis, DCOPN staff recommended that Shelton, deny Carilion’s request, noting that a Carilion kidney transplant program “could negatively impact existing providers of kidney transplant services.”

The analysis also pointed out that inspectors at Carilion Roanoke Memorial Hospital in 2023 observed three surgical instrument trays that were identified as sterile and ready to use, but were “found to be contaminated with [an] unknown brownish red substance, spots, staining and a candy wrapper was found inside a sterile tray.” The staff analysis also pointed out, however, that medical regulators had notified Carilion Roanoke Memorial Hospital on May 8, 2024, that the facility had been found “to meet applicable Medicare conditions.”

When asked whether it’s unusual for a state health commissioner to not follow the recommendation of DCOPN staff, Salzberg said he couldn’t speak for the commissioner. “I will tell you that they have worked with us well, and we have reciprocated in kind by delivering the information that they’ve been looking for,” he said.

 

Wall Street rises with hopes for trade deals that could forestall a recession

In Brief:

NEW YORK (AP) — U.S. stocks are rising Thursday after said he was set to announce an agreement on trade with the United Kingdom, the first of what Wall Street hopes will be enough to keep a recession from hitting the economy.

The S&P 500 was 0.6% higher in morning trading and on track for an 11th gain in the last 13 days. The Dow Jones Industrial Average was up 260 points, or 0.6%, as of 10:35 a.m. Eastern time, and the composite was 0.8% higher.

Stocks have been swinging for weeks with hopes that Trump could reach deals with other countries that would lower his tariffs, which many investors believe would cause a recession if left unchecked. Trump said Thursday that the U.K. agreement is “a full and comprehensive one.”

“Many other deals, which are in serious stages of negotiation, to follow!” he added on his Truth Social account.

It could be an encouraging start, and analysts said they’re curious to see if it will affect the 10% tariffs that Trump placed on all imports coming into the United States on “Liberation Day.” But bigger trading partners could offer bigger hurdles, including China.

The world’s second-largest economy again on Thursday called on the United States to cancel its tariffs, ahead of high-level talks between the world’s two largest economies that could take place this weekend. That followed Trump saying on Wednesday that he wouldn’t reduce his 145% tariffs on Chinese goods as a condition for negotiations.

Besides hopes for deals on trade, strong profit reports from U.S. companies have also helped to drive the S&P 500 closer to its all-time high set in February.

Axon Enterprise, the company that sells Tasers, body cameras and other public safety equipment, jumped 12.5% after joining the list. It benefited from strong growth for its software and services, and it raised its forecast for revenue over the full year.

Tapestry rose 2.7% after the company behind the Coach and Kate Spade brands also reported better profit and revenue than expected. It credited new, younger customers in North America, among other things.

Molson Coors, though, described a different landscape when it released its latest quarterly results, which fell short of analysts’ expectations. Its stock fell 4.9%.

“The global macroeconomic environment is volatile,” CEO Gavin Hattersley said. “Uncertainty around the effects of geopolitical events and global , including the impacts on economic growth, consumer confidence and expectations around , and currencies has pressured the beer industry and consumption trends.”

It became the latest company to either lower or pull its financial forecasts for 2025 given the uncertainty.

Krispy Kreme tumbled 19.5% after withdrawing its forecasts for the full year. The doughnut seller said it made the move in part because of “macroeconomic softness” and because it’s pausing the rollout of sales of its doughnuts at more McDonald’s restaurants.

The has remained OK so far, with the Federal Reserve saying Wednesday that it still looks to be running at a solid rate underneath the surface. But pessimism has soured sharply among U.S. households because of tariffs, and the fear is that all the uncertainty created by them could be enough to force the economy into a recession.

A couple mixed reports on the economy Thursday did little to clear the caution. One said slightly fewer U.S. workers applied for unemployment benefits last week. But another one said productivity for U.S. workers slowed by more than economists expected during the first three months of the year. That could keep upward pressure on inflation, when tariffs could be set to raise prices for all kinds of imported products.

Treasury yields rose following the reports, and the 10-year yield climbed to 4.32% from 4.26% late Wednesday.

In stock markets abroad, the FTSE 100 slipped 0.3% in London after the Bank of England cut its main interest rate by a quarter of a percentage point.

Indexes were modestly higher across much of the rest of Europe and Asia.

___

AP Business Writers Yuri Kageyama and Matt Ott contributed.

Lego to build $366M Prince George County warehouse

SUMMARY:

  • is investing $366 million in a 2 million-square-foot in .

  • Project will create an estimated 305 jobs.

  • Facility complements $1 billion Lego factory under construction in .

  • Regional distribution center expected to be operational by 2027.

The will invest $366 million to build a 2 million-square-foot warehouse, expected to create 305 jobs, in Prince George County, Gov. Glenn Youngkin and the Danish toymaker announced Thursday.

The warehouse and distribution center will be located at 8800 Wells Station Road in the county’s Crosspointe Business Centre, near a former Rolls-Royce facility that manufactured discs for aerospace engines. Construction on the facility will start later this year, and the company expects it to be operational in 2027, according to a Lego news release.

“The Lego Group is not just a household name; it’s a symbol of creativity, innovation and quality that resonates globally,” Youngkin said in a statement. “Three years after choosing Virginia to establish its U.S. manufacturing plant, the Lego Group’s decision to expand into Prince George County is an exciting new chapter in this partnership.”

The regional distribution center will support the $1 billion, 1.7 million-square-foot Lego facility under construction in Chesterfield County, expected to create about 1,760 jobs once fully operational. Announced in June 2022, the Danish toymaker expects to begin production at the Chesterfield facility in 2027, at least a year later than originally planned.

“The regional distribution center will bring greater flexibility to our network, ensuring we are well positioned to support long-term growth in the Americas,” Lego Chief Operations Officer Carsten Rasmussen said in a statement. “Together with our future Virginia factory, the RDC will shorten our supply chain in the region — reducing lead times for our customers as well as our environmental impact.”

The Chesterfield factory in the county’s is Lego’s first U.S. manufacturing facility and its second in North America (the first being in Monterrey, Mexico). The Prince George regional distribution center will be the second in Lego’s Americas network, joining an existing center in Fort Worth, Texas.

Lego signed a build-to-suit lease with Crosspointe Commerce Center, a joint venture between Hillwood Investment Properties and The Silverman Group, according to a news release. A third-party logistics partner will operate the regional distribution center.

The Virginia Partnership worked with Prince George County and Virginia’s Gateway Region to secure the warehouse project for Virginia. Youngkin approved a $2.53 million grant from the Commonwealth’s Opportunity Fund to assist the county. VEDP will support Lego through its Virginia Jobs Investment Program, which provides recruitment assistance and cash grant reimbursements for associated human resources costs after a company has had new employees on the payroll for at least 90 days.

VEDP contacted the Prince George County Economic Development Authority a year ago about the project, said Yoti Jabri, the county’s director of economic development and tourism.

“We’re just excited to have another international name in one of our industrial parks,” he said. “It just goes to show you the preparation we’ve taken on as a county for that site to land these type of projects here. We’re just excited and looking forward to the future.”

Lego is also eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program, an incentive program to encourage the port’s growth for companies locating new maritime-related employment centers or expanding existing centers.

Founded in 1932 by Danish carpenter Ole Kirk Christiansen, Lego reported 74.3 billion Danish Krone in 2024 revenue, equivalent to about $11.27 billion. It employs more than 31,000 people worldwide, including about 3,000 employees in the United States.

Based in Billund, Denmark, Lego has had a presence in the U.S. since the 1960s, when it entered a partnership with Samsonite to manufacture and market its bricks in the country. In 1973, the company established its American subsidiary, Lego Systems, after the license agreement with Samsonite for the U.S. market was cancelled. The toymaker is moving its U.S. headquarters from Enfield, Connecticut, where it has been since 1975, to Boston in 2026.

New Arlington hub to boost defense, energy startups

SUMMARY:

A new defense and energy innovation center is taking shape in Northern Virginia, looking to capitalize on the boom in those industries as the region also sets its sights on becoming a hub for those sectors.

Virtus Innovation Center is expected to offer space for more than 30 startups focused on national security and energy resilience.

Construction of the space, which could eventually incorporate more than 40,000 square feet in a complex of office towers located at 2011, 2121 and 2131 Crystal Drive in Arlington County’s National Landing development, could begin later this year, says Evan Regan-Levine, chief strategy officer for Bethesda, Maryland-based real estate developer , a partner in Virtus and the primary developer for Amazon.com’s HQ2 East Coast headquarters.

Other partners include San Francisco-based fund Energy Innovation Capital (EIC), Amazon Web Services, Virginia Tech and A&MPLIFY, the digital and consulting arm of New York-based professional services firm Alvarez and Marsal.

Virtus plans to operate as an and accelerator, providing startups with access to meeting, laboratory and development spaces as well as a sensitive compartmented information facility, or SCIF, for secure meetings with national security clients. They’ll also get support from partners, including connections to federal government customers, the proximity to which was a driver in locating in Northern Virginia.

In addition to the Pentagon, four of the world’s five largest defense and aerospace contractors call the region home, and Virginia Tech and George Mason University have recently opened innovation hubs to pump out a tech talent pipeline.

“There’s so much expertise and talent there,” says Andrew Lackner, a managing director with EIC. “But there’s no open innovation center. There’s not a lot of venture capital and startup activity. Therein lies the opportunity for what we’re trying to put together there for the Virtus Innovation Center.”

For now, Virtus, a nonprofit run by a board of directors, is operating in temporary space at 2231 Crystal Drive. EIC has made more than 175 investments in tech and energy companies and has a portfolio of 30 companies.

Regan-Levine says Virtus’ location is proof the region is transforming into a tech powerhouse: “It’s a venture capital fund putting their hand up saying, ‘Hey, we want to invest in the kinds of companies who are doing this work. And the best place possible to do it is this place.’”

Fed holds interest rate at 4.3% amid tariff and inflation uncertainty

SUMMARY:

 

WASHINGTON (AP) — The Federal Reserve kept its key interest rate unchanged Wednesday, brushing off ‘s demands to lower borrowing costs, and said that the risks of higher unemployment and higher inflation have risen.

The Fed kept its rate at 4.3% for the third straight meeting, after cutting it three times in a row at the end of last year. Many economists and Wall Street investors still expect the Fed will reduce rates two or three times this year, but the sweeping tariffs imposed by Trump have injected a tremendous amount of uncertainty into the U.S. economy and the Fed’s policies.

It is unusual for the Fed to say that the risk of both higher prices and more unemployment have increased. But economists say that is the threat created by Trump’s sweeping tariffs. The import taxes could both lift inflation by making imported parts and finished goods more expensive, while also raising unemployment by causing companies to cut jobs as their costs rise.

As a result, the tariffs have put the Fed in a difficult spot. The Fed’s goals are to keep prices stable and maximize employment. Typically, when inflation rises, the Fed raises rates to slow borrowing and spending and cool inflation, while if layoffs rise, it would reduce rates to spur more spending and growth.

Fed Chair and other Fed officials have signaled that they want to see how the duties — including 145% on all imports from China — impact consumer prices and the economy.

The central bank’s caution could lead to more conflict between the Fed and the . On Sunday, Trump again urged the Fed to cut rates in a television interview and said Powell “just doesn’t like me because I think he’s a total stiff.” With inflation not far from the Fed’s 2% target for now, Trump and Treasury Secretary Scott Bessent argue that the Fed could reduce its rate. The Fed pushed it higher in 2022 and 2023 to fight inflation.

If the Fed were to cut, it could lower other borrowing costs, such as for mortgages, auto loans, and credit cards, though that is not guaranteed.

Trump also said he wouldn’t fire Powell because the chair’s term ends next May and he will be able to appoint a new chair then. Yet if the economy stumbles in the coming months, Trump could renew his threats to remove Powell.

A big issue facing the Fed is how tariffs will impact inflation. Nearly all economists and Fed officials expect the import taxes will lift prices, but it’s not clear by how much or for how long. Tariffs typically cause a one-time increase in prices, but not necessarily ongoing inflation. Yet if Trump announces further tariffs — as he has threatened to do on pharmaceuticals, semiconductors, and copper — or if Americans worry that inflation will get worse, that could send prices higher in a more persistent way.

Kathy Bostjancic, chief economist at Nationwide, said this could keep the Fed on the sidelines until September.

“It’s hard for them to cut sooner because they’ve got to weigh, what’s the inflation impact?” Bostjancic said. “Is this going to be somewhat persistent and add to inflation expectations?”

Economists and the Fed are closely watching inflation expectations, which are essentially a measure of how much consumers are concerned that inflation will worsen. Higher inflation expectations can be self-fulfilling, because it Americans think prices will rise, they can take steps that push up costs, such as asking for higher wages.

For now, the is mostly in solid shape, and inflation has cooled considerably from its peak in 2022. Consumers are spending at a healthy pace, though some of that may reflect buying things like cars ahead of tariffs. Businesses are still adding workers at a steady pace, and unemployment is low.

Still, there are signs inflation will worsen in the coming months. Surveys of both manufacturing and services firms show that they are seeing higher prices from their suppliers. And a survey by the Federal Reserve’s Dallas branch found that nearly 55% of manufacturing firms expect to pass on the impact of tariff increases to their customers.

“The bottom line is that inflation will be rising significantly over the next six months,” Torsten Slok, chief economist at the Apollo Group, said in an email.

Yet the tariffs could also weigh heavily on the economy, particularly because of the uncertainty they have created. Huge tariffs on about 60 other nations, announced April 2, were then postponed until July 9, but could be reimposed. Business surveys show that firms are postponing investment decisions until they have greater clarity.

Ryan Sweet, chief U.S. economist at Oxford Economics, said the uncertainty surrounding gives him “night terrors.”

“The economics of uncertainty are absolutely suffocating,” Sweet said. “Businesses that don’t know the rules of the road, their knee-jerk reaction is to sit on their hands. And that’s what they’re doing.”

But if the uncertainty delays hiring, slows the economy and pushes up the unemployment rate, the Fed could quickly shift toward interest rate cuts. A sharp economic slowdown could eventually cool inflation by itself, economists say.

“If you felt like the economy was really slowing down, then I think that would probably take precedence (over inflation), because usually the way the committee thinks is that will also drag inflation somewhat with it,” said Jim Bullard, former president of the Federal Reserve’s St. Louis branch, and currently dean of Purdue University’s business school.

In March, the Fed signaled that it could cut rates twice this year. But since then, the Trump administration imposed duties that Powell said last month were larger and broader than the Fed expected.

The duties, Powell acknowledged, could both slow growth and lift prices, which puts the Fed in a tough spot. It would usually cut rates to boost growth and hiring, while it would raise them to cool spending and inflation.

The Fed could reduce rates preemptively to help forestall a slowdown. But with such large tariffs in place, Powell has signaled that the Fed wants to see how they affect inflation before making any moves.

“Without price stability, we cannot achieve the long periods of strong labor market conditions that benefit all Americans,” Powell said.

FAA plans radar, staffing fixes at Newark airport

SUMMARY:

  • to upgrade radar systems and fiber optic lines to Newark
  • Staffing and trauma leave shortages contribute to flight cuts
  • Broader national overhaul to be unveiled
  • Newark leads U.S. airports in flight cancellations amid fixe

 

The Federal Aviation Administration said Wednesday that it plans to upgrade the technology used to get radar to air traffic controllers directing planes to the troubled Newark, New Jersey, airport, and improve staffing to alleviate problems that have caused hundreds of flights to be canceled there.

At the same time, the agency plans pursue a broader multibillion-dollar plan that will be announced Thursday for long-overdue upgrades to the nation’s air traffic control system.

A January midair collision between a passenger jet and Army helicopter over Washington, D.C., that killed 67 people, followed by a string of other crashes and mishaps, raised alarms about and prompted officials to reexamine the system.

Transportation Secretary says flying remains the safest way to travel because of existing precautions, but the problems in Newark demonstrate the desperate need for upgrades.

“We are on it. We are going to fix it. We are going to build a brand new system for all of you and your families and the American people,” Duffy said.

The radar system air traffic controllers in Philadelphia use to direct planes in and out of the  went offline for at least 30 seconds on April 28. That facility relies on radar data sent over lines from New York that may have failed. Some of those lines are old copper phone lines instead of much more reliable fiber optic lines that can handle more data. The reason the FAA is relying on those lines is because the agency moved the Newark controllers out of the New York facility to Philadelphia last summer to address staffing issues.

The FAA says it plans to replace any old copper wires with fiber optics and add three new data lines between its New York facility and Philadelphia. The agency is also working to get additional controllers trained and certified.

It wasn’t immediately clear how quickly either of those steps will be completed, but Duffy has said he hopes the situation in Newark will improve by summer. Several controllers remain on extended trauma leave after the radar outage.

In the meantime, the FAA has slowed traffic in and out of Newark to ensure flights can be handled safely, leading to cancellations. On Wednesday, Newark led the nation in cancellations with 41 canceled departures and 43 canceled arrivals, according to FlightAware.com. That’s even after United Airlines cut 35 flights a day from its schedule at the airport starting last weekend.

“We’ve slowed down the traffic. Safety is our mission. We love efficiency, but safety is critical for us. And so, if we feel like there’s issues in the airspace, we’ll slow it down,” Duffy said. “We’re looking at bringing in all of the airlines that serve Newark and having all of them with all of us have a conversation about how do we manage the flights out of Newark.”

Law firms advise businesses on Trump 2.0 policies

 

Summary

  • Virginia firms report client surge after Trump’s return
  • Executive orders on immigration and prompt reviews
  • Businesses seek both legal and strategic regulatory advice
  • Firms emphasize flexible, proactive compliance approaches

It’s been a busy start to the year for many as clients are trying to make sense of the many fast-moving and wide-ranging changes ushered in by President Donald Trump’s return to the White House.

“Really from the start of the transfer of the administration, we got calls from clients who were just trying to navigate this evolving and ever-changing landscape, and the questions have continued to pour in,” says Kristin Johnson, an attorney in with Woods Rogers’ government and special investigations practice.

Likewise, phones at McGuireWoods started “flying off the hook” in January after Trump took office, says John Moran, a partner and member of the firm’s government investigations and white collar litigation department in Washington, D.C. “The number of issues that clients have sought help in navigating is almost as varied as the clients themselves.”

Clients have had plenty to seek counsel about. While it’s common, lawyers say, to see an uptick in queries after a new presidential administration takes over, what’s different this time around is the fast and furious pace of activity. In his first few months in office, Trump signed nearly half the number of executive orders he did in the entirety of his prior four-year term and surpassed the annual totals of executive orders for every president since Harry S. Truman, according to from the Federal Register.

Trump’s 2025 executive orders have prompted a lot of inquiries, particularly as clients try to make sense of any legal implications for their businesses from the various changes. But such conversations are also an opportunity to discuss business strategies amid a changing federal regulatory environment.

Phones at McGuireWoods, Virginia’s largest law firm, have been “flying off the hook” as business clients seek guidance on Trump administration policies, says partner John Moran. Photo courtesy McGuireWoods

Immigration, DEI in focus

Very quickly, a theme emerged among the earliest incoming calls from business clients: They wanted to know what, if anything, the Trump administration’s stance on immigration and diversity, equity and inclusion (DEI) policies would mean for their workplaces.

On his first day back in office, Trump signed executive orders focused on stronger enforcement of immigration laws and ending government DEI programs. In turn, clients from a wide swath of industries have had “a lot of questions” about how these executive orders could affect their own employment policies, says Greg Habeeb, a chair of Attorneys’ government and regulatory affairs practice group and president of the firm’s public affairs consulting business.

“Clients always want to be proactive in identifying shifts in the market,” Habeeb says.

At McGuireWoods, DEI has been a recurring theme of inquiries across the three major industries the firm serves — energy, health care and financial services — so its lawyers have helped clients assess their existing policies, Moran says. But it’s not entirely clear what the government’s additional scrutiny on means, he adds.

Some clients are unsure whether they should pare back or keep in place DEI initiatives, for example, Moran says. “It can make companies feel like they’re in a bind.”

Further complicating matters is that while presidential executive orders aren’t laws, they do have the force and effect of laws. Legal questions have already been raised about the constitutionality of some of Trump’s executive orders, which can be confusing for clients trying to navigate uncertainty.
Some of the Trump administration’s policy changes won’t be viewed as settled by many people in the legal industry unless and until the U.S. Supreme Court weighs in, Moran says.

As a result, there’s an “open question” about what legal effect Trump’s executive orders will ultimately have until they’re tested in the legal system, Johnson says. “The guidance and advice may change over time as things evolve.”

Habeeb, Moran and Johnson say that questions about DEI have been common, particularly from clients in industries that receive federal funding, including health care, higher education and government contracting. Immigration-related queries have also been common because clients want to be sure they’re in compliance with the law, can obtain proper documentation from employees and know what to do if personnel from the U.S.

Immigration and Customs Enforcement (ICE) were to come to their businesses, she adds.

And given everything going on, questions from clients are rarely a “one-and-done call,” Johnson says. “The environment is very fluid, the guidance we’re giving is fluid, and our firm is really staying on top of all of this to make sure our clients are properly advised.”

Navigating regulatory changes

Making sure that clients are properly advised means helping clients through problems that don’t necessarily have legal solutions. In his nearly 25-year career practicing law, Habeeb has grown accustomed to clients asking questions any time there’s a leadership change in Washington, D.C., but that doesn’t necessarily mean businesses must make changes in response.

Instead, Habeeb urges clients to be nimble because it’s important not to rely too much on any particular policy or regulatory environment that’s bound to change if a new administration takes power. “Any business or any industry where change is automatically bad for business is not in a good position for long-term success.”

Similarly, Moran says, some of his firm’s clients in the energy industry are more focused on the uncertainties around regulatory changes than placing additional scrutiny on their employment policies. “These clients are trying to navigate their way through a deregulatory environment without mis-stepping, or they’re wanting to come up with a thoughtful approach.”

Offering strategic advice that goes beyond isn’t new, but these lawyers say it’s more pronounced when clients are trying to make sense of a lot of changes at once. These firms are taking a proactive approach, be it through traditional outreach, mass email blasts or updating their websites with information on key developments.

In many ways, it’s business as usual for Habeeb, though a new presidential administration means there’s more to do to keep clients up to date, adding, “I try to look around corners for clients and prepare them.” In addition, the best solutions to problems that clients are facing aren’t necessarily legal in nature, and that’s true now. “I don’t have a preconceived set of solutions.”

Similarly, Moran says the advice he and his colleagues are offering their clients falls into three buckets for offering advice, only one of which is strictly legal. They may talk clients through how to think about the current state of the law and what’s changing, they may do some combination of “reading the law and the policy tea leaves” to advise clients on the administration’s broader goals, and finally, they offer guidance on the personalities of administration members and how to best work with them.

“It’s all the more important that clients are not only getting good advice and answers to discrete legal questions, but sound and wise counsel about how to navigate broader challenges they face,” Moran says.

Such an approach is more holistic in nature and requires clients to also ensure they have a good handle on everything happening in their businesses, Johnson says. She recommends that businesses do a deep dive into their third-party relationships and assess whether compliance departments have the most effective procedures in place.

“It’s a really good time for businesses to conduct a wellness check,” Johnson says.

Booz Allen lands contracts totaling $1.2B

In the span of a week, -based management consulting contractor won multiple totaling over $1.2 billion.

On April 30, the U.S. Department of announced that Booz Allen landed a $743 million ceiling, time-and-materials and firm-fixed-price task order from the for enterprise application modernization and migration. According to the DOD, the contract was competitive, and five offers were received.

Booz Allen will perform work at its designated facilities across the contiguous United States and is expected to complete the project by Oct. 29, 2030. This contract was a competitive acquisition and five offers were received. The DOD says $1.3 million in fiscal 2025 operations and maintenance appropriations funds will be obligated at the time of award and lists the Air Force Life Cycle Management Center at the Hanscom Air Force Base in Massachusetts as the contracting activity.

On Monday, Booz Allen announced it was selected by the National -Intelligence Agency to deliver commercial geospatial intelligence and . Booz Allen will be a vendor for both the Luno A and Luno B commercial-data indefinite-delivery, indefinite-quantity contracts, which have a combined ceiling of $490 million. Each contract has a five-year base ordering period.

Under the contracts, Booz Allen will help provide unclassified satellite imagery and data analytics to support missions while also enabling the NGA to apply artificial intelligence to analyzing global economic, environmental, geopolitical and illicit activities. Booz Allen will leverage its scalable data science and analytics platform Modelpoint as well as its internal AI expertise.

“Booz Allen’s strategic wins under both Luno A and B demonstrate our deepened commitment to innovate and drive speed to outcomes for the intelligence community as an advanced technology company,” said Paul Chi, executive vice president in Booz Allen’s national security business, in a statement. “We’re focused on delivering high-impact solutions at unmatched speed and scale, empowering our clients to make informed decisions and address their evolving data needs with greater agility and precision.”

DOJ grants University of Virginia extension on DEI response

SUMMARY:

  • administration received May 30 extension to respond to U.S. .
  • Previous deadline was May 2, less than one week after April 28 letter was sent, requiring U.Va. provide proof it is dissolving and dismantling departments and operations.
  • DOJ’s Civil Rights Division says it has received complaints U.Va. administrators may not be following Board of Visitors’ dictate to dissolve DEI offices.

The University of Virginia has until May 30 to respond to an April 28 letter from the U.S. Department of Justice demanding proof — including video and audio from the U.Va. Board of Visitors’ closed sessions — that the university is dismantling and dissolving its diversity, equity and inclusion apparatuses.

According to U.Va. spokesperson Brian Coy, the university requested an extension of the previous May 2 deadline cited in the letter, which was sent to U.Va. President Jim Ryan, Rector Robert Hardie and university counsel Clifton M. Iler. The DOJ moved the deadline to May 30, Coy said Tuesday.

The department’s letter is related to the March 7 vote by U.Va.’s board of visitors to dissolve the university’s DEI office in compliance with ‘s executive order to dismantle DEI “apparatuses and instruments of discrimination based on race, skin color, ethnicity, national origin and other impermissible, immutable characteristics.” The board resolution also called for U.Va.’s administration to produce a report within 30 days with full updates on the university’s progress in ending all DEI initiatives.

Signed by Harmeet K. Dhillon, assistant attorney general for the DOJ’s civil rights division, as well as Deputy Assistant Attorney General Gregory W. Brown and senior counsel Jeffrey Morrison, the letter says that DOJ received complaints that Ryan’s “office and the university may have failed to implement these directives and further that you have refused to produce the report on the matter.”

The letter gave U.Va. officials until May 2 to provide the following to the DOJ:

  • The BOV’s March 7 resolution and “all written or electronic records (including audio or video recording) of the U.Va. Board of Visitors’ public and closed session meeting and deliberations”;
  • “Certify that for every university division, department, school, foundation, unit, system (such as the health system) and graduate or professional program and school (including but not limited to the school of , school of medicine and nursing school) of the university, the dictates of the Board of Visitors’ resolution have been fully and completely satisfied and accomplished.”
  • This would include “which departments, programs, preferences, preferential systems and positions/titles/chairs have been eliminated and terminated”;
  • For “employees, students, faculty members or administrators with any DEI responsibilities, ‘mandate,’ duties or title whatsoever,” the university must “identify whether that individual’s position and title have been eliminated, whether the individual is still associated with the university in any official or unofficial, paid or unpaid capacity, and if so, the name and nature of that individual’s current title or position”;
  • Finally, “produce all reports submitted by you or members of your administration to the Board of Visitors, the rector, or any other body or group on or around April 7, regarding your administration’s execution of the Board of Visitors’ March 7 direction to dissolve and dismantle DEI at the University of Virginia.”

The letter was sent to Ryan, Hardie and Iler the day before U.Va.’s board met in an April 29 special session and voted for a new DEI resolution rescinding a September 2020 resolution that called for U.Va. to double the number of faculty members from underrepresented racial and ethnic groups, as well as more women in certain fields, and to aim to diversify its student body as well.

The April 29 resolution also calls for the president, interim provost and an appointee of the Faculty Senate to report to the board at its next meeting in June on “work being done to ensure an intellectual climate and campus culture where all students, faculty and staff are able to express politically diverse views, engage in constructive discussion across differences, and respond to competing perspectives in good faith.”

Other public universities in Virginia and across the nation have taken similar action to dissolve DEI offices after Trump’s executive order, particularly with his administration’s threats to withhold federal funding from universities, accusing some of tolerating antisemitism related to pro-Palestine campus protests.

According to a May 2 New York Times report, seven universities have been explicitly warned they could lose hundreds of millions and even into the billions of federal funding: Harvard, Brown, Columbia, Cornell, Northwestern, the University of Pennsylvania and Princeton University. However, other schools are also under scrutiny by the U.S. Department of Education’s Office for Civil Rights, the story notes.

In March, U.Va. administration, including Ryan and other top leaders, sent an email to university faculty and staff urging them to curtail discretionary spending due to the possibility of reductions in federal funding and overall . That meant fewer salary increases and bonuses, potential postponement of planned hiring, and possible delays of capital projects, the email said.