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Trump to end funding for Colombia after the country’s leader accused the U.S. of assassination amid strikes in Caribbean

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President Donald Trump said Sunday he would slash U.S. funding to Colombia because the country’s leader “does nothing to stop” drug production, in what is the latest sign of friction between Washington and one of its closest allies in Latin America.

In a social media post, Trump referred to Colombian President Gustavo Petro as “an illegal drug dealer” who is “low rated and very unpopular.” He warned that Petro “better close up” drug operations “or the United States will close them up for him, and it won’t be done nicely.”

Trump, while at his Mar-a-Lago resort in Florida, wrote on his Truth Social platform that Petro is “strongly encouraging the massive production of drugs, in big and small fields” across Colombia, which the Republican president initially misspelled as Columbia before deleting his post and replacing it the correct spelling of the country. “Petro does nothing to stop it, despite large scale payments and subsidies from the USA that are nothing more than a long term rip off of America,” Trump said.

“AS OF TODAY, THESE PAYMENTS, OR ANY OTHER FORM OF PAYMENT, OR SUBSIDIES, WILL NO LONGER BE MADE TO COLOMBIA,” Trump said. He also said Petro had “a fresh mouth toward America.”

Earlier Sunday, Petro accused the U.S. government of assassination and demanded answers after the latest American strike in Caribbean waters. The U.S. said on Saturday it was repatriating to Colombia and Ecuador two survivors from that attack, the sixth since early September. At least 29 people have been killed in strikes that the U.S. has said are targeting alleged drug traffickers.

In September, the Trump administration accused Colombia of failing to cooperate in the drug war, although at the time Washington issued a waiver of sanctions that would have triggered aid cuts. Colombia is the world’s largest exporter of cocaine, and the cultivation of the critical ingredient of coca leaves reached an all-time high last year, according to the United Nations.

More recently, the State Department said it would revoke Petro’s visa while he was in New York for the U.N. General Assembly because of his participation in a protest where he called on American soldiers to stop following Trump’s commands. “I ask all the soldiers of the United States’ army, don’t point your rifles against humanity” and “disobey the orders of Trump,” Petro said.

Petro said a Colombian man was killed in a Sept. 16 strike and identified him as Alejandro Carranza, a fisherman from the coastal town of Santa Marta. He said that Carranza has no ties to drug trafficking and that his boat was malfunctioning when it was hit.

“U.S. government officials have committed murder and violated our sovereignty in territorial waters,” Petro wrote on X. “The Colombian boat was adrift and had a distress signal on, with one engine up. We await explanations from the US government.”

Petro said that he has alerted the attorney general’s office and demanded that it act immediately to initiate legal proceedings internationally and in U.S. courts. He continued to post a flurry of messages into early Sunday about the killing.

“The United States has invaded our national territory, fired a missile to kill a humble fisherman, and destroyed his family, his children. This is Bolívar’s homeland, and they are murdering his children with bombs,” Petro wrote.

Meanwhile, Noticias Caracol, a Colombian news program, reported that the man injured in the most recent strike was hospitalized after he was repatriated and remains in serious condition.

It quoted Colombian Interior Minister Armando Benedetti as saying that the Colombian “will be prosecuted, he will be received — forgive the harsh expression — as a criminal, because so far what is known is that he was carrying a boat full of cocaine, which in our country is a crime, and despite the fact that it was in international waters, his repatriation will be as if he were being prosecuted in the United States.”

Petro said the man had been aboard a “narco submarine.”

Ecuador’s Ministry of the Interior confirmed in a statement sent to The Associated Press on Sunday that the U.S. had repatriated an Ecuadorian man injured in the most recent strike. Officials identified him as Andrés Fernando Tufiño Chila and said a doctor found him to be in good health.

The ministry noted that two prosecutors met with Tufiño Chila and determined he had not committed any crimes within the country’s borders and that there was no evidence to the contrary.



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Rivian CEO says it’s a misconception EVs are politicized, with a 50-50 party split among R1 buyers

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December 10, 2025

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If Rivian’s sales are any indication, owning an electric vehicle isn’t such a partisan issue, despite President Donald Trump’s rollbacks of mandates, incentives, and targets for EVs.

At the Fortune Brainstorm AI conference in San Francisco on Tuesday, Rivian CEO RJ Scaringe said it’s a misconception that electrification is politicized, explaining that most customers buy a product based on how it fits their needs, not their ideology. The questions car buyers ask, he said, are the same whether they’re purchasing one with an internal-combustion engine or a battery: “Is it exciting? Are you attracted to the product? Does it draw you in? Does the brand positioning resonate with you? Do the features answer needs that you have?”

Buyers of Rivian’s R1 electric SUV are split roughly 50-50 between Republicans and Democrats, Scaringe told Fortune’s Andrew Nusca. “I think that’s extraordinarily powerful news for us to recognize—that this isn’t just left-leaning buyers,” he added. “These are people that are saying, ‘I like the idea of this product, I’m excited about it.’ And this is thousands and thousands of customers. This is statistically relevant information.”

Buying an EV was once an indication of left-leaning politics, but the politics got scrambled after Tesla CEO Elon Musk became the top Republican donor and a close adviser to Trump. That drew some new customers to Tesla, and turned off a lot of progressive EV buyers, with many existing owners putting bumper stickers on their Teslas explaining that they bought their cars before Musk’s hard-right turn. Trump and Musk later had a stunning public feud, in part over the administration’s elimination of EV and solar tax credits.

But Scaringe said he started Rivian with a long-term view, independent of any policy framework or political trends. He also insisted that if Americans have more EV choices, sales would follow. Right now, Tesla dominates a key corner of the market, namely EVs in the $50,000 price range. Rivian’s forthcoming R2 mid-size SUV will represent a new choice in that market, with a starting price of $45,000 versus the R1’s $70,000.

Ten years from now, Scaringe said he hopes—and believes—that EV adoption in the U.S. will be meaningfully higher than it is today across the board, explaining that the main constraint isn’t on the demand side. Instead, it’s on the supply side, which suffers from “a shocking lack of choice,” especially compared to Europe and China, he added. EV options in the U.S. are limited by the fact that Chinese brands are shut out of the market.

More choices for U.S. EV buyers would presumably create more competition for Rivian—and indeed, the flood of low-priced Chinese EVs in other auto markets has created a backlash, with countries such as Canada imposing steep tariffs on them. But Scaringe appears to view more competition as positive for the market overall.

“I do think that the existence of choice will help drive more penetration, and it actually creates a unique opportunity in the United States,” he said.



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Powell warns of a ‘very unusual’ economy as inflation remains high amid a weakening job market

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December 10, 2025

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Federal Reserve Chair Jerome Powell on Wednesday described the U.S. economy as “very unusual,” saying policymakers are navigating a rare combination of tariff-driven goods inflation and a labor market that may already be weaker than official data suggests.

The Fed cut interest rates for the third consecutive meeting, a quarter-point reduction Powell framed not as a confident pivot toward easier policy, but as a defensive move meant to keep the labor market from slipping further. He repeatedly emphasized risks to employment have risen “in recent months,” and noted that behind the headline numbers, job creation may already be negative.

Powell made the striking admission the Fed believes the official payroll figures—which have slowed sharply since the summer—are overstating job growth by roughly 60,000 per month. 

“Forty thousand jobs could be negative 20,” he said, adding this dynamic is not well understood by the public because unemployment claims remain historically low—something both economists Mark Zandi and Claudia Sahm recently toldFortune could be giving people a false sense of security about the job market.

“I think a world where job creation is negative… we need to watch that very carefully,” Powell said. 

It is this weakening backdrop Powell said makes the current moment “very unusual”: Inflation remains elevated, but most of the remaining overshoot comes from goods categories directly affected by tariffs, as opposed to domestic economic overheating, which he said the Fed has worked hard to cool since its 2022 highs; inflation excluding tariff-affected goods is “in the low [two percent],” he said. Services inflation is cooling, wage pressures are easing, and neither the labor market nor business surveys suggest a “Phillips-curve” kind of inflation threat, Powell said, referring to the inverse relationship between inflation and unemployment. 

Instead, Powell said, the bulk of the problem is a “one-time price increase” pushing up goods categories as import levies work their way through supply chains. Goods inflation, he noted, should peak around the first quarter of 2026, assuming no additional tariff rounds.

Those crosscurrents have fractured the Fed. Three officials formally dissented from the rate cut on Wednesday, and several others offered what Powell described as “soft dissents,” when an official’s personal projection falls out of what they ultimately voted for. There were six such “soft dissents” this time, during one of the deepest divides inside the FOMC in years, driven by disagreement over how to weigh the risks of lingering inflation against the possibility that job growth is weaker—and much more fragile—than reported.

Powell stressed that policymakers cannot simply choose one mandate to prioritize. 

“There is no risk-free path,” he said, a refrain he’s repeated for months. “When both sides of the mandate are threatened, you should be kind of neutral.” 

He characterized the current stance as being at the “high end” of neutral, allowing the Fed to “wait and see” how the data evolve.



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Top economist Diane Swonk: Jerome Powell risks losing the Fed’s credibility on a gamble about AI and immigration

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December 10, 2025

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Federal Reserve Chair Jerome Powell warned Wednesday afternoon that the U.S. labor market may be significantly weaker than the official data suggest. But according to KPMG chief economist Diane Swonk, the Fed may be drawing the wrong conclusion—and in doing so, risks undermining its hard-won credibility on fighting inflation.

In a new analysis shared with Fortune, Swonk argues that Powell is treating the slowdown in hiring as a sign of weakening demand that must be offset with lower interest rates. But if that weakness is being driven instead by structural forces—specifically, AI adoption and sharp declines in immigration—then cutting rates won’t fix the underlying problem and could worsen inflation.

“Powell risks the Fed’s inflation-fighting credibility if the weakness in employment is due more to AI and curbs in immigration than weak demand,” Swonk wrote.

That warning comes after one of the most contentious Federal Open Market Committee meetings in years. The Fed cut rates by a quarter point for the third meeting in a row, taking the federal funds rate down to 3.5%–3.75%, but the vote fractured the committee. Swonk notes it was the first time since 2019 that there were three dissents, and they came “in opposite directions.”

Governor Stephen Miran — currently on leave from the White House Council of Economic Advisers — voted for a half-point cut, while Kansas City Fed President Jeff Schmid and Chicago Fed President Austan Goolsbee voted to hold rates steady.

Swonk highlights that the Fed’s statement resurrected language meant to indicate a pause: “In considering the extent and timing of additional adjustments… the Committee will carefully assess incoming data, the evolving outlook and the balance of risks.” Powell reinforced that stance, saying “We are well positioned to see how the economy evolves” and emphasizing that policymakers would need to “be a bit skeptical” of data distorted by the government shutdown.

But the bigger issue, Swonk argues, is that Powell kept pointing to imminent downward revisions to employment, revisions she warns may not mean what the Fed thinks they do.

If job growth is negative because automation is replacing workers or because the labor force is shrinking due to immigration policy, then monetary policy can’t solve the problem. That’s because rate cuts can stimulate demand, but they cannot create workers or reverse automation decisions already made by firms. 

“The challenge is if that weakness is due to AI and curbs on immigration, then rate cuts will not do much to shore up the labor market. More could show up in inflation,” she wrote.

Powell, during the conference, acknowledged that AI may be “part of the story” behind the cooling labor market, citing major employers like Amazon that have linked hiring freezes and job cuts to automation. But he stressed that it’s “not a big part of the story yet,” and said it’s too early to know whether this wave of technological change will ultimately destroy more jobs than it creates.

He also noted that labor supply has “come down quite sharply” due to a drop in immigration and participation.

A misread could become especially dangerous given the fiscal backdrop. Swonk notes that “expansions to tax cuts last year will show up as a record high tax refunds in early 2026,” warning that the windfall could “further entrench inflation much like we saw in the wake of the pandemic.” 

At the same time, federal debt is projected to surpass GDP for the first time since World War II, marking a level of issuance that is “a lot of debt for bond markets to absorb.”

Swonk also flags mounting risks to credibility inside the Fed itself.

Six participants wanted to hold rates steady, and the market openly dismissed Powell’s attempt at a hawkish spin: investors “priced in more cuts after the meeting,” she notes. Powell now appears to be one of the more dovish voices on the committee, raising questions about the direction of policy if the administration installs a new chair aligned with Miran’s more aggressive easing stance.

Swonk expects the Fed to pause early next year, but warns that if inflation fails to cool as expected, “the bond market could grow more skittish about rate cuts.”



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