Tag Archives: Donald Trump

Tillerson says he and Trump disagree over Iran nuclear deal

Tillerson says he and Trump disagree over Iran nuclear deal

By Yeganeh Torbati

WASHINGTON (Reuters) – U.S. Secretary of State Rex Tillerson acknowledged on Tuesday that he and President Donald Trump disagree over the 2015 Iran nuclear deal, and said the two men discuss how to use the international agreement to advance administration policies.

Trump at times vowed during the 2016 presidential election campaign to withdraw from the agreement, which was signed by the United States, Russia, China and three European powers to curb Iran’s nuclear program in return for lifting most Western sanctions.

Trump has preserved the deal for now, although he has made clear he did so reluctantly after being advised to do so by Tillerson.

“He and I have differences of views on things like JCPOA, and how we should use it,” Tillerson said at a State Department briefing, using the acronym for the deal, formally called the Joint Comprehensive Plan of Action (JCPOA).

Tillerson said that Washington could “tear it up and walk away” or stay in the deal and hold Iran accountable to its terms, which he said would require Iran to act as a “good neighbor.”

Critics say the deal falls short in addressing Iran’s support for foreign fighters in Iraq and Syria, arms shipments around the Middle East and ballistic missile tests.

The White House did not immediately respond to a request for comment on Tillerson’s remarks.

Trump said in an interview with the Wall Street Journal last month that he predicts Iran will be judged “noncompliant” with the Iran deal at the next deadline in October, and that he would have preferred to do so months ago.

Tillerson expressed a more nuanced view of the deal’s potential benefits on Tuesday.

“There are a lot of alternative means with which we use the agreement to advance our policies and the relationship with Iran, and that’s what the conversation generally is around with the president as well,” Tillerson said.

European officials would likely be reluctant to re-impose sanctions, especially the broader measures that helped drive Iran to negotiate over its nuclear program in the first place, he said.

New U.S. sanctions on Iran in July were a breach of the nuclear deal and Tehran had lodged a complaint with the body that oversees the pact’s implementation, a senior Iranian politician said.

Tillerson acknowledged that the United States is limited in how much it can pressure Iran on its own and said it was important to coordinate with the other parties to the agreement.

“The greatest pressure we can put to bear on Iran to change the behavior is a collective pressure,” he said.

(Reporting by Yeganeh Torbati; editing by Grant McCool)

Top Senate Democrat urges Trump to block China deals over North Korea

Senate Minority Leader Chuck Schumer, accompanied by Senator Patty Murray (D-WA) and Senator Debbie Stabenow (D-MI), speaks with reporters following the successful vote to open debate on a health care bill on Capitol Hill in Washington, U.S., July 25, 2017. REUTERS/Aaron P. Bernstein

WASHINGTON (Reuters) – The top Democrat in the U.S. Senate called on President Donald Trump on Tuesday to block some Chinese investments in the United States to pressure China “to help rein in North Korea’s threatening and destabilizing behavior.”

In a letter to Trump, Senate Democratic leader Chuck Schumer urged him to use his authority through the Committee on Foreign Investment in the United States, or CFIUS, to pressure Beijing by suspending approval of “all mergers and acquisitions in the U.S. by Chinese entities.”

Schumer’s request comes amid concern about North Korea, which fired a missile Friday that experts said was capable of hitting Los Angeles. Trump has repeatedly urged China to rein in its ally North Korea, and Schumer agreed.

“It is my assessment that China will not deter North Korea unless the United States exacts greater economic pressure on China,” Schumer wrote to Trump, a Republican. “The U.S. must send a clear message to China’s government.”

Senator John Cornyn, a Republican on the Senate Intelligence Committee, was unconvinced that CFIUS was the right tool.

“That’s not specifically the purpose of CFIUS. CFIUS is a national security vehicle to try to make sure that high-tech investments by foreign countries don’t steal our cutting-edge technology,” Cornyn said outside his Senate office.

“I’m happy to work with Senator Schumer to figure out what his concerns are,” added Cornyn, who has urged changes at CFIUS because of China. His worry, however, was not North Korea but that China would close the technology gap between the U.S. and Chinese militaries.

Led by the U.S. Department of Treasury, CFIUS reviews foreign acquisitions of U.S. companies on national security grounds and can take action on its own or refer cases to the president.

In an interview with Reuters Friday, the top U.S. counter-intelligence official suggested the Trump administration was already working on a plan to toughen CFIUS.

“We’re making significant progress on that, working with both sides of Pennsylvania Avenue,” said William Evanina, National Counterintelligence Executive, referring to the White House and Congress. “I think it’s going to look a lot different than it does now.”

Evanina, whose office oversees U.S. government efforts to counter spying and industrial espionage, declined to be more specific but noted that China’s direct investment in the United States quadrupled from 2015 to 2016, to $48 billion annually.

China’s UN ambassador, on the other hand, has said that it was up to Washington and Pyongyang to work toward talks on North Korea’s weapons programs.

“(The United States and North Korea) hold the primary responsibility to keep things moving, to start moving in the right direction, not China,” China’s U.N. Ambassador Liu Jieyi told reporters on Monday. “No matter how capable China is, China’s efforts will not yield practical results.”

While China worries about North Korea’s nuclear and missile programs, and the U.S. reaction to them, its overriding concern, U.S. officials say, is to avoid a North Korean collapse, which could send millions of refugees fleeing toward China and lead to a reunified Korea allied with Washington.

Schumer’s plan to prohibit CFIUS from approving Chinese deals would be technically legal but would stretch CFIUS’ mandate, CFIUS experts said.

“What sounds like effectively a bar on Chinese investment that is being suggested is probably legal but quite different than the case-by-case process that CFIUS has used in the past,” said Stephen Heifetz of the law firm Steptoe & Johnson LLP who represents clients before CFIUS. “The U.S. government should consider the potential for a Chinese response.”

The task force this year faces what could well be a record number of deals, many of them controversial as Chinese firms scout U.S. targets as varied as hotels and film studios to hedge against a weaker yuan <CNY=>.

(Additional reporting by Diane Bartz, Susan Cornwell and Warren Strobel; Writing by Susan Heavey; Editing by Bill Trott and James Dalgleish)

Trump administration sends conflicting signals on Russia sanctions

U.S. Vice President Mike Pence (L) arrives with Secretary of State Rex Tillerson (R) to attend a joint press conference held by U.S. President Donald Trump and Colombian President Juan Manuel Santos at the White House in Washington, U.S., May 18, 2017. REUTERS/Yuri Gripas

By Yeganeh Torbati

WASHINGTON (Reuters) – President Donald Trump grudgingly accepted new congressional sanctions on Russia, the top U.S. diplomat said on Tuesday, remarks in contrast with those of Vice President Mike Pence, who said the bill showed Trump and Congress speaking “with a unified voice.”

The U.S. Congress voted last week by overwhelming margins for sanctions to punish the Russian government over interference in the 2016 presidential election, annexation of Crimea and other perceived violations of international norms.

U.S. Secretary of State Rex Tillerson told reporters that he and Trump did not believe the new sanctions would “be helpful to our efforts” on diplomacy with Russia.

Trump has been clear that he wants to improve relations with Russia, a desire that has been hamstrung by findings of U.S. intelligence agencies that Russia interfered to help the Republican against Democrat Hillary Clinton. U.S. congressional panels and a special counsel are investigating. Moscow denies any meddling and Trump denies any collusion by his campaign.

Tillerson, who did business in Russia when he was chief executive of Exxon Mobil, has said repeatedly that the world’s two major nuclear powers cannot have such a bad relationship.

“The action by the Congress to put these sanctions in place and the way they did, neither the President nor I were very happy about that,” Tillerson said. “We were clear that we didn’t think it was going to be helpful to our efforts, but that’s the decision they made, they made it in a very overwhelming way. I think the president accepts that.”

Tillerson stopped short of saying definitively that Trump would sign the sanctions, saying only that “all indications are he will sign that bill.”

Vice President Mike Pence, at a press conference in Georgia with Prime Minister Giorgi Kvirikashvili, said unequivocally that “President Trump will sign the Russia sanctions bill soon.”

Pence acknowledged that the administration objected to earlier versions of the sanctions bill because it did not grant enough flexibility to the administration, but said it “improved significantly” in later versions.

“And let me say that in signing the sanction, our President and our Congress are speaking with a unified voice,” Pence said.

White House spokeswoman Sarah Sanders said on Tuesday the sanctions bill was under review and would be signed.

“There’s nothing holding him back,” Sanders said at a news briefing. Trump has until Aug. 9 to sign the bill, or veto it, or it will automatically become law.

In retaliation for the sanctions, Russian President Vladimir Putin said on Sunday that the U.S. diplomatic mission in Russia must reduce its staff by 755 people. Russia is also seizing two properties near Moscow used by American diplomats.

Tillerson said Putin probably believes his response was a symmetrical action to Washington seizing two Russian properties in the United States and expelling 35 diplomats last December.

“Of course it makes our lives more difficult,” he said.

Tillerson said he and Russian Foreign Minister Sergei Lavrov would meet in Manila on the margins of next weekend’s meetings of the Association of Southeast Asian Nations.

(Reporting by Yeganeh Torbati; additional reporting by Ayesha Rascoe and Patricia Zengerle; editing by Grant McCool)

Wray confirmed by Senate to lead FBI after Comey firing

Wray confirmed by Senate to lead FBI after Comey firing

By Julia Edwards Ainsley

WASHINGTON (Reuters) – The U.S. Senate on Tuesday confirmed former Justice Department lawyer Christopher Wray as FBI chief, nearly three months after the agency’s previous director, James Comey, was fired by President Donald Trump.

Wray, who was confirmed by vote of 92-5, will take charge of the country’s top domestic law enforcement agency during a federal probe into allegations of collusion between the Trump presidential campaign and Russia.

Since the dismissal of Comey on May 9, the Justice Department has appointed Robert Mueller as special counsel to oversee the investigation with the help of the FBI. Russia denies any interference, and Trump has denied collusion with Russia.

Wray vowed in his confirmation hearing last month to remain independent and not be swayed by politics or pressure from the president. He also praised Muller as the “consummate straight shooter.”

He also worked with Comey on the government’s case in the Enron Corp fraud scandal in the early 2000s.

During the confirmation hearing, Republican Senate Judiciary Committee Chairman Chuck Grassley said Wray’s background showed he was committed to independence, an attribute he said was “vitally important” in the next FBI director.

Wray served as assistant attorney general in charge of the criminal division at the Justice Department under former Republican President George W. Bush.

Former Attorney General Eric Holder and former Deputy Attorney General Sally Yates, both Democrats who served under President Barack Obama, endorsed Wray.

(Reporting by Julia Edwards Ainsley; Editing by Peter Cooney)

Trump signs Russia sanctions law, but slams it as ‘flawed’

U.S. President Donald Trump meets with Russian President Vladimir Putin during their bilateral meeting at the G20 summit in Hamburg, Germany July 7, 2017. REUTERS/Carlos Barria

By Roberta Rampton and Patricia Zengerle

WASHINGTON (Reuters) – U.S. President Donald Trump grudgingly signed into law on Wednesday new sanctions against Russia that Congress had approved overwhelmingly last week, criticizing the legislation as having “clearly unconstitutional” elements.

After signing a bill that runs counter to his desire to improve relations with Moscow, and which also affects Iran and North Korea, the Republican president laid out a lengthy list of concerns.

“While I favor tough measures to punish and deter aggressive and destabilizing behavior by Iran, North Korea, and Russia, this legislation is significantly flawed,” Trump said in a statement announcing the signing.

The Republican-controlled Congress approved the legislation by such a large margin on Thursday that it would have thwarted any effort by Trump to veto the bill.

The legislation has already provoked countermeasures by Russian President Vladimir Putin, who has ordered big cuts to the number of staff at the U.S. diplomatic mission to Russia.

Congress approved the sanctions to punish the Russian government over interference in the 2016 presidential election, annexation of Ukraine’s Crimea and other perceived violations of international norms.

Trump said he was concerned about the sanctions’ effect on work with European allies, and on American business.

“My administration … expects the Congress to refrain from using this flawed bill to hinder our important work with European allies to resolve the conflict in Ukraine, and from using it to hinder our efforts to address any unintended consequences it may have for American businesses, our friends, or our allies,” he said.

The president also complained about what he said were “clearly unconstitutional provisions” in the legislation relating to presidential powers to shape foreign policy.

The new sanctions measure, the first major foreign policy legislation approved by Congress since Trump took office in January, includes a provision allowing Congress to stop any effort by the president to ease existing sanctions on Russia.

Trump has long said he would like improved ties with Russia. But any such efforts by his administration have been hamstrung by findings by U.S. intelligence agencies that Russia interfered to help the Republican against Democratic presidential candidate Hillary Clinton. U.S. congressional committees and a special counsel are investigating. Moscow denies any meddling and Trump denies any collusion by his campaign.

In a second statement on the legislation, Trump said that, “Despite its problems, I am signing this bill for the sake of national unity.”

“It represents the will of the American people to see Russia take steps to improve relations with the United States,” he added.

The legislation will affect a range of Russian industries and might further hurt the Russian economy, already weakened by 2014 sanctions imposed after Russia annexed Crime from Ukraine.

It also cracks down on Iran and North Korea for activities that include their missile development programs and human rights abuses, including seeking to punish foreign banks that do business with North Korea.

NO FANFARE FOR BILL SIGNING

After Congress approved the sanctions, the Kremlin ordered the United States to cut about 60 percent of its diplomatic staff in Russia. Putin said on Sunday that Russia had ordered the United States to cut 755 of its 1,200 embassy and consulate staff by September, and was seizing two diplomatic properties.

Besides angering Moscow, the legislation has upset the European Union, which has said the new sanctions might affect its energy security and prompt it to act, too.

Trump’s fellow Republicans praised him for signing the bill.

However, one Republican senator, Lindsey Graham, while welcoming the signing, was critical of the low-key way it was done, without the typical array of television cameras and reporters present.

“The fact (that) he does this kind of quietly I think reinforces the narrative that the Trump administration is not really serious about pushing back on Russia. And I think that is a mistake, too, because Putin will see this as a sign of weakness,” Graham said in a CNN interview.

Several provisions of the sanctions target the Russian energy sector, with new limits on U.S. investment in Russian companies. American companies also would be barred from participating in energy exploration projects where Russian firms have a stake of 33 percent or higher.

The legislation includes sanctions on foreign companies investing in or helping Russian energy exploration, although the president could waive those sanctions.

It would give the Trump administration the option of imposing sanctions on companies helping develop Russian export pipelines, such as the Nord Stream 2 pipeline carrying natural gas to Europe, in which German companies are involved.

(Reporting by Roberta Rampton and Patricia Zengerle; Additional reporting by Doina Chiacu, Susan Heavey and Caren Bohan; Writing by Frances Kerry; Editing by Jonathan Oatis)

China hits back at Trump criticism over North Korea

Soldiers carry a PLA flag and Chinese national flags before the military parade to commemorate the 90th anniversary of the foundation of China's People's Liberation Army (PLA) at Zhurihe military base in Inner Mongolia Autonomous Region, China, July 30, 2017. REUTERS/Stringer

By Ben Blanchard and Elias Glenn

BEIJING (Reuters) – China hit back on Monday after U.S. President Donald Trump tweeted he was “very disappointed” in China following North Korea’s latest missile test, saying the problem did not arise in China and that all sides need to work for a solution.

China has become increasingly frustrated with American and Japanese criticism that it should do more to rein in Pyongyang. China is North Korea’s closest ally, but Beijing, too, is angry with its continued nuclear and missile tests.

North Korea said on Saturday it had conducted another successful test of an intercontinental ballistic missile that proved its ability to strike the U.S. mainland, drawing a sharp warning from Trump and a rebuke from China.

Video of the latest missile test appears to show it breaking up before landing, indicating Pyongyang may not yet have mastered re-entry technology needed for an operational nuclear-tipped missile, a think tank reported on Monday.

Japanese Prime Minister Shinzo Abe spoke with Trump on Monday and agreed on the need for more action on North Korea just hours after the U.S. Ambassador to the United Nations said Washington is “done talking about North Korea”.

A White House statement after the phone call said the two leaders “agreed that North Korea poses a grave and growing direct threat to the United States, Japan, the Republic of Korea, and other countries near and far”.

It said Trump “reaffirmed our ironclad commitment” to defend Japan and South Korea from any attack, “using the full range of United States capabilities”.

Trump tweeted on Saturday after the missile test that he was “very disappointed” in China and that Beijing profits from U.S. trade but had done “nothing” for the United States with regards to North Korea, something he would not allow to continue.

Asked by a reporter on Monday how he plans to deal with Pyongyang, Trump said at the start of a Cabinet meeting: “We’ll handle North Korea… It will be handled.”

China’s Foreign Ministry, in a statement sent to Reuters responding to Trump’s earlier tweets, said the North Korean nuclear issue did not arise because of China and that everyone needed to work together to seek a resolution.

Russia said on Monday the United States and other countries were trying “to shift responsibility for the situation to Russia and China” following the most recent missile test.

“We view as groundless attempts undertaken by the U.S. and a number of other countries to shift responsibility to Russia and China, almost blaming Moscow and Beijing for indulging the missile and nuclear ambitions of the DPRK (North Korea),” the Russian Foreign Ministry said in a statement.

At the United Nations in New York, China’s U.N. ambassador said on Monday it is primarily up to the United States and North Korea, not Beijing, to reduce tensions and work toward resuming talks to end Pyongyang’s nuclear weapon and missile programs.

The United States and North Korea “hold the primary responsibility to keep things moving, to start moving in the right direction, not China,” China’s U.N. Ambassador Liu Jieyi told a news conference to mark the end of Beijing’s presidency of the U.N. Security Council in July.

“No matter how capable China is, China’s efforts will not yield practical results because it depends on the two principal parties,” Liu said.

Chinese Vice Commerce Minister Qian Keming told a news conference there was no link between the North Korea issue and China-U.S. trade.

“We think the North Korea nuclear issue and China-U.S. trade are issues that are in two completely different domains. They aren’t related. They should not be discussed together,” Qian said.

China, with which North Korea does most of its trade, has repeatedly said it strictly follows U.N. resolutions on North Korea and has denounced unilateral U.S. sanctions as unhelpful.

Nikki Haley, U.S. Ambassador to the United Nations, said in a statement China must decide if it is willing to back imposing stronger U.N. sanctions on North Korea over Friday night’s long-range missile test, the North’s second this month.

Any new U.N. Security Council resolution “that does not significantly increase the international pressure on North Korea is of no value”, Haley said, adding that Japan and South Korea also needed to do more.

Abe told reporters after his conversation with Trump that repeated efforts by the international community to find a peaceful solution to the North Korean issue had yet to bear fruit in the face of Pyongyang’s unilateral “escalation”.

“International society, including Russia and China, need to take this seriously and increase pressure,” Abe said. He added Japan and the United States would take steps towards concrete action but did not give details.

Abe and Trump did not discuss military action against North Korea, nor what would constitute the crossing of a “red line” by Pyongyang, Deputy Chief Cabinet spokesman Koichi Hagiuda told reporters.

“Pyongyang is determined to develop its nuclear and missile program and does not care about military threats from the U.S. and South Korea,” state-run Chinese tabloid the Global Times said on Monday.

“How could Chinese sanctions change the situation?” said the paper, which is published by the ruling Communist Party’s official People’s Daily.

China wants both balanced trade with the United States and lasting peace on the Korean peninsula, its official Xinhua news agency added in a commentary.

“However, to realize these goals, Beijing needs a more cooperative partner in the White House, not one who piles blame on China for the United States’ failures,” it added.

The United States flew two supersonic B-1B bombers over the Korean peninsula in a show of force on Sunday in response to the missile test and the July 3 launch of the “Hwasong-14” rocket, the Pentagon said. The bombers took off from a U.S. air base in Guam and were joined by Japanese and South Korean fighter jets during the exercise.

“North Korea remains the most urgent threat to regional stability,” Pacific Air Forces commander General Terrence J. O’Shaughnessy said in a statement.

“If called upon, we are ready to respond with rapid, lethal, and overwhelming force at a time and place of our choosing.”

(Additional reporting by Chang-ran Kim in Tokyo, Christine Kim in Seoul, Michelle Nichols and Riham Alkousaa at the United Nations, Polina Devitt in Moscow and Steve Holland in Washington; Editing by Michael Perry and James Dalgleish)

U.S. medic awarded Medal of Honor for Vietnam War heroism

U.S. President Donald Trump awards the Medal of Honor to James McCloughan, who served in the U.S. Army during the Vietnam War, during a ceremony at the White House in Washington, U.S. July 31, 2017. REUTERS/Joshua Roberts

By Ian Simpson

WASHINGTON (Reuters) – A 71-year-old former Army medic from Michigan who saved wounded comrades under fire during the Vietnam War was given the highest U.S. military award by President Donald Trump in a White House ceremony on Monday.

James McCloughan, a retired high school teacher and coach from South Haven, received the Medal of Honor for his valor in saving the lives of 10 members of his platoon at the Battle of Nui Yon Hill in May 1969.

“Jim, I know I speak for every person here when I say that I am in awe of your actions and your bravery,” Trump said before fastening the medal with its star and blue ribbon around the white-haired veteran’s neck.

It was Trump’s first award of the Medal of Honor since taking office in January.

Ten men from McCloughan’s unit attended the medal ceremony, including five he saved, the president said.

McCloughan was 23 and serving as an Americal Division medic when he returned to the battlefield multiple times over 48 hours of fighting to retrieve the wounded soldiers, despite being hit himself with grenade shrapnel and gunfire, his citation said.

He refused to be evacuated to treat his wounds and held a strobe light in an open area at night for a resupply air drop, it said. He also destroyed a North Vietnamese Army position with a grenade.

The Medal of Honor generally must be awarded within five years of the actions that justify it. A former platoon leader began campaigning in 2009 for McCloughan to get the award, resulting in an act of Congress in December to waive the time limit.

President Barack Obama signed the act, making McCloughan eligible for the medal before he left office.

McCloughan left the service with a rank of specialist five and returned to Michigan. He taught psychology and sociology at South Haven High School and coached football, wrestling and baseball.

He is a member of the Michigan High School Coaches Hall of Fame. South Haven is about 180 miles (290 km) west of Detroit.

(Editing by Jeffrey Benkoe and Steve Orlofsky)

Trump fires communications director Scaramucci in new White House upheaval

FILE PHOTO: New White House Communications Director Anthony Scaramucci, flanked by White House Press Secretary Sarah Sanders, speaks at the daily briefing at the White House in Washington, U.S. July 21, 2017. REUTERS/Jonathan Ernst/File Photo

By Roberta Rampton and Ayesha Rascoe

WASHINGTON (Reuters) – U.S. President Donald Trump ousted recently hired White House communications chief Anthony Scaramucci on Monday over an obscene tirade, sources familiar with the decision said, in the latest staff upheaval for the six-month-old administration.

The move, coming just 10 days after the Republican president named Scaramucci to the post, took place on the first day of work for Trump’s new chief of staff, retired Marine Corps General John Kelly, who sources said was seeking to impose order on a White House riven with factions and backbiting.

“There’s a new sheriff in town,” said Barry Bennett, a former Trump campaign adviser.

A Republican close to Trump said the president fretted on the weekend over what to do about Scaramucci, calling his advisers to ask their opinion, all of whom told him the tough-talking aide had to go.

Trump was annoyed about Scaramucci’s lewd comments to The New Yorker magazine published last Thursday and at how the abrasive New York financier appeared to inflate the strength of their friendship, since he had started the 2016 presidential election cycle as a fundraiser for two Trump rivals, Scott Walker and Jeb Bush.

Trump decided it was time to cut him loose, the source said.

Kelly, who also wanted him removed, summoned Scaramucci to Kelly’s office on Monday morning and fired him on the spot, the official said. It was one of Kelly’s first acts as chief of staff.

“A great day at the White House!” Trump tweeted on Monday evening.

The departure of Scaramucci followed one of the rockiest weeks of Trump’s presidency in which a major Republican effort to overhaul the U.S. healthcare system failed in Congress and both his spokesman and previous chief of staff left their jobs as White House infighting burst into the open.

Scaramucci’s comments to The New Yorker included a profanity-laced attack against then-White House chief of staff Reince Priebus and Trump’s chief strategist, Steve Bannon.

“The president certainly felt that Anthony’s comments were inappropriate for a person in that position,” spokeswoman Sarah Sanders told reporters.

In a change from previous procedure at the Trump White House, all staff will now report to Kelly, including Trump’s daughter Ivanka and son-in-law Jared Kushner, Sanders said.

A Republican official close to the White House said Kelly had been given wide authority to impose order on the unruly Trump White House.

“Things will run with regular order,” the official said, adding that even the president’s daughter and her husband, who both have senior roles at the White House, are “not above the law.”

At a dinner on Saturday night at Trump’s hotel near the White House, Trump told Treasury Secretary Steven Mnuchin and Commerce Secretary Wilbur Ross to expect some staff changes, the official said. Kelly attended the dinner as well.

INNER CIRCLE

Tensions in Trump’s inner circle erupted last week when Scaramucci assailed Priebus and Bannon, two of the West Wing’s most senior figures. He accused Priebus of leaking information to the media. Priebus later resigned.

Trump appeared on Monday with Kelly in the Oval Office and in a Cabinet meeting where he predicted the new chief of staff would do a “spectacular job.” He praised Kelly for his tenure overseeing border security issues at the Department of Homeland Security.

“With a very controversial situation, there’s been very little controversy, which is really amazing by itself,” Trump said.

Republicans fear that staff chaos at the White House could derail any attempt to revive efforts to repeal and replace the Obamacare healthcare law and a plan to overhaul the U.S. tax system.

The U.S. dollar hit a more than 2-1/2-year low against the euro on Monday on month-end portfolio adjustments and uncertainty over the U.S. political outlook after Scaramucci’s departure.

Aside from domestic challenges, Trump is weighing how to respond to North Korea’s latest missile test – a sore point between Washington and Beijing. Trump has been critical of China, North Korea’s closest ally, saying it should do more to rein in Pyongyang.

He is also dealing with several investigations into allegations of Russian meddling in the 2016 U.S. presidential election, and has been frustrated that the probes are also looking into potential collusion by his campaign. Moscow rejects the charge it tried to swing the election in Trump’s favor, and Trump denies his campaign had anything to do with such interference.

(Additional reporting by Steve Holland and Mark Hosenball; Writing by Alistair Bell and Steve Holland; Editing by Peter Cooney)

Trump replaces chief of staff Priebus with retired General Kelly

U.S. President Donald Trump talks to reporters about the departure of his Chief of Staff Reince Priebus as he arrives aboard Air Force One at Joint Base Andrews, Maryland, U.S. July 28, 2017. REUTERS/Jonathan Ernst TPX IMAGES OF THE DAY

By Steve Holland and Roberta Rampton

WASHINGTON (Reuters) – President Donald Trump replaced his beleaguered White House chief of staff, Reince Priebus, after only six months on the job on Friday, installing retired General John Kelly in his place in a major shake-up of his top team.

Trump announced the move in a tweet a day after his new communications director, Anthony Scaramucci, accused Priebus of leaking information to reporters in a profanity-laced tirade.

Kelly, 67, a retired four-star Marine Corps general, is currently secretary of the Department of Homeland Security and will assume the chief of staff post on Monday. He was hired with the goal of bringing more discipline to the White House, a senior White House official said.

Trump issued his decision just as he landed aboard Air Force One after a visit to Long Island and hours after Republican efforts to repeal Obamacare failed in the Senate.

Priebus was on the plane with the Republican president and made no comment. Reporters had noticed no sign of stress from Priebus during the day.Priebus told CNN he had been talking to Trump for some time about exiting the White House, and is the latest in a long line of officials to leave or not take a job at the White House.

“The president has a right to hit a reset button. I think it’s time to hit the reset button,” Priebus said in a televised interview from the White House. “He intuitively determined that it was time to do something different, and I think he’s right.”

Trump had lost confidence in Priebus, privately questioning his competence after major legislative items failed to pass the U.S. Congress, a Trump confidant said.

A source close to Priebus said the former Republican National Committee chairman turned in his resignation on Thursday night, after Scaramucci’s rant against him was published by the New Yorker magazine.

A senior White House official said Trump had informed Priebus two weeks ago that he would be replacing him and that the move had no connection to Scaramucci, whose hiring a week ago prompted Sean Spicer, a Priebus ally, to abruptly resign as press secretary.

After frequent conversations with Kelly, Trump recently warmed up to the idea of naming Kelly chief of staff to more effectively manage personnel and offered it to him earlier this week, a senior White House official said.

KELLY ‘A STAR’

Carrying an umbrella, Trump approached reporters as he stepped off Air Force One, with rain storming down.

“Reince is a good man. John Kelly will do a fantastic job. General Kelly has been a star, done an incredible job thus far, respected by everybody. He’s a great, great American. Reince is a good man,” Trump said.

Priebus’ 189-day tenure was the shortest in modern history for a White House chief of staff. He had hoped to stay on at least a year but struggled to manage his unpredictable boss and was unable to get a handle on conflicting factions in the White House who have frequently squabbled.

In a statement, Priebus said it had been one of the great honors of his life to serve Trump and the country.

“I will continue to serve as a strong supporter of the president’s agenda and policies. I can’t think of a better person than General John Kelly to succeed me and I wish him God’s blessings and great success,” he said.

Trump loyalists had chafed at Priebus, feeling he had installed his RNC allies at the White House and overlooked the people close to Trump who helped get him elected president in November.

But Priebus allies felt he was an important link to establishment Republicans in Washington as the capital attempted to adjust to the anti-establishment style of the president.

“He has served the president and the American people capably and passionately,” House of Representatives Speaker Paul Ryan said of his close friend in a statement. “He has achieved so much, and he has done it all with class. I could not be more proud to call Reince a dear friend.”

White House spokeswoman Sarah Sanders said she did not think Priebus’ exit would affect the White House’s relationship with the Republican Party.

“I think we’ve still got a good relationship. We’re going to continue working with the party and doing what we came here to do,” she said.

Homeland Security Deputy Secretary Elaine Duke will become the acting chief of the department on Monday, DHS said in a statement.

U.S. Representative Michael McCaul, a Texas Republican who chairs the House Homeland Security Committee, is among those being considered for Homeland Security secretary, a DHS official said.

(Additional reporting by Ayesha Rascoe and David Shepardson; Editing by Lisa Shumaker)

Trump to sign Russia sanctions, Moscow retaliates

FILE PHOTO - U.S. President Donald Trump shakes hands with Russia's President Vladimir Putin during their bilateral meeting at the G20 summit in Hamburg, Germany July 7, 2017. REUTERS/Carlos Barria/File Photo

By Eric Beech and Andrew Osborn

WASHINGTON/MOSCOW (Reuters) – U.S. President Donald Trump will sign legislation that imposes sanctions on Russia, the White House said on Friday, after Moscow ordered the United States to cut hundreds of diplomatic staff and said it would seize two U.S. diplomatic properties in retaliation for the bill.

The U.S. Senate had voted almost unanimously on Thursday to slap new sanctions on Russia, forcing Trump to choose between a tough position on Moscow and effectively dashing his stated hopes for warmer ties with the country or to veto the bill amid investigations in possible collusion between his campaign and Russia.

By signing the bill into law, Trump can not ease the sanctions against Russia unless he seeks congressional approval.

Moscow’s retaliation, announced by the Foreign Ministry on Friday, had echoes of the Cold War. If confirmed that Russia’s move would affect hundreds of staff at the U.S. embassy, it would far outweigh the Obama administration’s expulsion of 35 Russians in December.

The legislation was in part a response to conclusions by U.S. intelligence agencies that Russia meddled in the 2016 U.S. presidential election, and to further punish Russia for its annexation of Crimea in 2014.

Late on Friday, the White House issued a statement saying Trump would sign the bill after reviewing the final version. The statement made no reference to Russia’s retaliatory measures.

Russia had been threatening retaliation for weeks. Its response suggests it has set aside initial hopes of better ties with Washington under Trump, something the U.S. leader, before he was elected, had said he wanted to achieve.

Relations were already languishing at a post-Cold War low because of the allegations that Russian cyber interference in the election was intended to boost Trump’s chances, something Moscow flatly denies. Trump has denied any collusion between his campaign and Russian officials.

The Russian Foreign Ministry complained of growing anti-Russian feeling in the United States, accusing “well-known circles” of seeking “open confrontation”.

President Vladimir Putin had warned on Thursday that Russia would have to retaliate against what he called boorish U.S. behavior. Putin’s spokesman, Dmitry Peskov, told reporters on Friday that the Senate vote was the last straw.

Russian foreign minister Sergei Lavrov told U.S. Secretary of State Rex Tillerson by telephone that Russia was ready to normalize relations with the United States and to cooperate on major global issues.

Lavrov and Tillerson “agreed to maintain contact on a range of bilateral issues”, the Russian Foreign Ministry said.

The ministry said the United States had until Sept. 1 to reduce its diplomatic staff in Russia to 455 people, the number of Russian diplomats left in the United States after Washington expelled 35 Russians in December.

‘EXTREME AGGRESSION’

It was not immediately clear how many U.S. diplomats and other workers would be forced to leave either the country or their posts, but the Interfax news agency cited an informed source as saying “hundreds” of people would be affected.

A diplomatic source told Reuters that it would be for the United States to decide which posts to cut, whether occupied by U.S. or Russian nationals.

An official at the U.S. Embassy, who declined to be named because they were not allowed to speak to the media, said the Embassy employed around 1,100 diplomatic and support staff in Russia, including Russian and U.S. citizens.

Russian state television channel Rossiya 24 said over 700 staff would be affected but that was not confirmed by the foreign ministry or the U.S. embassy.

The Russian Foreign Ministry’s statement said the passage of the bill confirmed “the extreme aggression of the United States in international affairs”.

Deputy Foreign Minister Sergei Ryabkov met outgoing U.S. ambassador John Tefft on Friday to inform him of the counter measures, Russian news agencies reported. The U.S. Embassy said Tefft had expressed his “strong disappointment and protest”.

Most U.S. diplomatic staff, including around 300 U.S. citizens, work in the main embassy in Moscow, with others based in consulates in St Petersburg, Yekaterinburg and Vladivostok.

The Russian Foreign Ministry said it was also seizing a Moscow dacha compound used by U.S. diplomats for recreation, from Aug. 1, as well as a U.S. diplomatic warehouse in Moscow.

In December, the outgoing Obama administration seized two Russian diplomatic compounds – one in New York and another in Maryland – at the same time as it expelled Russian diplomats.

Trump and Putin met for the first time at a G20 summit in Germany this month in what both sides described as a productive encounter, but Russian officials have become increasingly convinced that Congress and Trump’s political opponents will not allow him to mend ties, even if he wants to.

The European Union has also threatened to retaliate against new U.S. sanctions on Russia, saying they would harm the bloc’s energy security by targeting projects including a planned new pipeline to bring Russian natural gas to northern Europe.

A European Commission spokesman in Brussels said the bloc would be following the sanctions process closely.

(Additional reporting by Dmitry Solovyov, Polina Devitt, Jack Stubbs and Denis Pinchuk in Moscow, Patricia Zengerle and Ayesha Rascoe in Washington; Editing by Kevin Liffey, Grant McCool and Christian Schmollinger)