Day: May 16, 2025

As Republicans look to broker a sweeping budget deal, top GOP leadership in the House of Representatives unveiled a series of cuts this week to the provisions of the Inflation Reduction Act (IRA) aimed at tackling climate change. This includes proposing to curtail tax credits for clean electricity generation and domestic clean technology manufacturing. To enact the proposed language would deal a swift blow to U.S. efforts to cut emissions and transition to cleaner energy sources. It would also stifle a surge in manufacturing investment that has swept much of the country.

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“It will come to a screeching halt without the credits,” says George Strobel, co-CEO at Monarch Private Capital, which finances solar projects. “That’s just the way it is.”

Since the language was announced on May 12, many Senate Republicans, who would need to approve the measure before it becomes law, have balked, fearing that such a pullback would kill jobs in their home states and harm American businesses. For that reason, they say, the language should represent a starting point, certain to be revised in the lengthy negotiations necessary to approve the changes. “Anything that comes over from the House, almost by law, we’ve got to redo,” Alaska GOP Senator Lisa Murkowski told reporters.

The debate on the fate of the clean technology tax incentives is likely to center on immediate concerns: on one side jobs and the implications for American businesses and, on the other, simple number crunching to fund other priorities including a continuation of broad corporate tax cuts. But jobs in congressional districts and U.S. carbon emissions represent just the tip of the iceberg when it comes to the massive implications of a U.S. pullback from clean technology. 

The U.S. is already behind in developing an economy around mature technologies—namely wind, solar, and electric vehicles. To nix IRA incentives without a considered replacement would effectively wave the white flag, acknowledging that the U.S. has no plausible way to catch up. Perhaps more significantly, abandoning the incentives would make it even more difficult for the U.S. to capture the market of early-stage technologies where the country can still compete—think of geothermal, advanced forms of nuclear energy, and hydrogen, to name a few. 

All of this is of significant consequence for the shape of the global economy. China already dominates manufacturing in technologies like electric vehicles and, with an absent U.S., could do the same with future tech, too. All of which is to say: these negotiations will matter for decades to come. “To some extent, I think it’s hanging in the balance,” says Greg Bertelsen, CEO of the Climate Leadership Council, a non-profit that works at the intersection of climate and economic policy. “This is a critical period of time.”

To understand what enacting the proposed changes to tax incentives would mean, it’s helpful to sit with some numbers. In a research note Tuesday, the Rhodium Group said that the cuts would risk “a meaningful amount” of the $522 billion clean technology manufacturing investment already in the pipeline in the U.S. It could result in a greater than 70% decline in domestic clean energy deployment through 2035—and higher electricity prices for consumers and industry alike. 

The clean technologies in question are part of a global market expected to total more than $100 trillion by 2050, according to a 2022 report from the Boston Consulting Group. And the ripples extend beyond clean tech: higher energy prices would make the U.S. a less attractive place for AI and manufacturing investments.        

In the past, a U.S. pullback might have been enough to derail this global clean tech momentum. The U.S. is, after all, the world’s largest economy. But, in 2025, the rest of the world is less likely to shift gears in response to one administration. 

A big reason for that is China. The country has become a manufacturing hub for a wide range of clean technologies and has facilitated their export around the world. And, in many cases, the clean technologies manufactured there have simply become better than traditional alternatives. Chinese electric vehicles, for example, are widely thought to offer a better experience at a lower price point than anything coming out of the U.S. or Europe. (Indeed, they’re quickly expanding not just in China but around the world.) More broadly, in parts of the developing world, solar power has become cheap enough that it’s the fastest and simplest way to rapidly electrify. 

Since President Trump took office, I’ve spent much of my time outside of Washington, talking to policymakers and business leaders from around the world. As shocked as many have been by the Trump Administration’s assault on climate policy, few have expressed interest in following suit and instead continue to see opportunity in green investments. 

And so the question for members of Congress is how much, if any, of that $100 trillion market they want to capture. The text proposed by GOP House leadership is just the start of the discussion and unlikely to become law in its current form, but for those looking to capture a share of the future of energy technologies it isn’t an encouraging one.

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President Donald Trump has wrapped up his three-country tour of the Middle East, during which significant moves were made to transform the United States’ relationship with the region.

The President solidified investment agreements, conducted the first meeting between U.S. and Syrian Presidents in 25 years, hinted at the potential for a nuclear deal with Iran, and much more.

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Trump kickstarted his visit on Tuesday, May 13, when he landed in Saudi Arabia’s capital, Riyadh, and was greeted by luxury at the Royal Saudi Palace. He signed deals and agreements worth billions of dollars, covering a number of industries.

Qatar was Trump’s next stop. He landed in the capital city of Doha on Wednesday, May 14. Another flurry of agreements were made—including a $96 billion Boeing deal—followed by a roundtable with business leaders, where Trump resurfaced his idea of a U.S. takeover of the Gaza strip.

Trump arrived in the United Arab Emirates on Thursday, May 15, for the final leg of his tour, during which he signed an agreement on AI worth around $1.4 trillion.

Reflecting on his trip, Trump lamented that future Presidents may well take credit for what he has achieved. “Somebody’s going to be taking the credit for this. You remember, press, this guy did it,” Trump told reporters during the flight home on Air Force One.

As Trump returns to Washington, D.C., here’s a look back at the key moments from his whirlwind tour of the Middle East:

Signing a $142 billion arms deal in Saudi Arabia

Trump’s trip started off with a glitzy welcome from Saudi Crown Prince Mohammed bin Salman. The President was joined by Tesla CEO and Department of Government Efficiency (DOGE) lead Elon Musk, as well as other important U.S. business figures including OpenAI CEO Sam Altman and BlackRock CEO Larry Fink.

In Riyadh, Trump announced that the U.S. had agreed to sell Saudi Arabia an arms package worth nearly $142 billion. The two leaders also signed agreements on security and intelligence cooperation, technology, and energy. 

The White House has said that Saudi investments signed during Trump’s visit are worth a total of $600 billion.

Plans to lift U.S. sanctions on Syria and a meeting with Syrian President Ahmed al-Sharaa

In an unexpected announcement during a U.S.-Saudi Investment Forum on Tuesday, May 13, Trump said he plans to lift U.S. sanctions on Syria, some of which have been in place for over 45 years.

Trump called the sanctions “brutal and crippling,” but noted their necessity before the collapse of the Bashar Assad regime in December 2024. Trump said that now, in this new era, it’s time for Syria to “shine.”

Many experts, including Benjamin Feve, a senior research analyst at Karam Shaar Advisory, have said that Trump’s plan to list the sanctions may not be straightforward.

“He [Trump] cannot just declare it, you have to go through a specific process which involves barriers in the Administration. You have the Secretary of State, the Treasury, Congress,” Feve tells TIME. “They have to be re-thought, redesigned in order to continue who they will be imposed upon.”

The collapse of the Assad regime in December occurred when Ahmed al-Sharaa’s group Hay’at Tahrir al-Sham (HTS) led a rebel coalition. Assad fled Syria with his family and sought asylum in Russia. HTS has been designated a terrorist organization by the United States, and al-Sharaa had a $10 million reward for his arrest placed on him by the U.S. government, before it was lifted in December.

On Wednesday, May 14, Trump and al-Sharaa met in Riyadh. They were accompanied by the Saudi Crown Prince, while Turkish President Recep Tayyip Erdogan joined remotely via telephone.

Talking to reporters afterwards on Air Force One, Trump described the Syrian leader, a former militant, as a “young, attractive guy. Tough guy. Strong past. Very strong past. Fighter… He’s got a real shot at holding it together.”

White House press secretary Karoline Leavitt later revealed that Trump had urged al-Sharaa to normalise ties with Israel, clamp down on terrorism in Syria, and work with the U.S. to stop any resurgence of ISIS.

Read More: Trump Meets With Syria’s President After Announcing Plans to Lift U.S. Sanctions on Country

The controversy of Qatar’s luxury plane gift

Trump’s plan to accept a luxury Boeing from Qatar had caused controversy before the President left for his tour of the Gulf.

Valued at roughly $400 million, the gifted plane—and the potential of Trump going through with accepting it—has raised ethical, legal, and security concerns.

“He’s going to turn Air Force One into Bribe Force One,” Democratic Sen. Ed Markey of Massachusetts told TIME. “Congress has to be involved with such a clear threat to our national security.”

Republicans, such as Senate Majority Leader John Thune and Sen. Ted Cruz of Texas, also raised concerns.

Read More: Trump Doubles Down on Plan to Receive Qatar’s Plane Gift: ‘Only a Fool Would Not Accept This’

But the President has doubled down on his intentions to accept the plane, which he says will be used as a temporary Air Force One while two more jets are still in production to replace current models.

In a May 14 post on his social media platform, TruthSocial, Trump said: “The Boeing 747 is being given to the United States Air Force/Department of Defense, NOT TO ME! It is a gift from a Nation, Qatar, that we have successfully defended for many years… “Only a FOOL would not accept this gift on behalf of our country.”

He also defended his stance during an interview with Fox News’ Sean Hannity on Air Force One.

Qatar’s Prime Minister and Foreign Affairs Minister Sheikh Mohammed bin Abdulrahman Al Thani gave his take on the gift controversy during an interview with CNN.

“It’s still under legal review. I don’t know why it became so big as news… We have done a lot together with the U.S.,” he said, adding that it was just a case of “very simple government-to-government dealing.”

When asked whether this was an instance of “buying influence” with the U.S., the Qatari leader said: “Why would we buy influence in the United States? If you look at the last 10 years of the U.S.-Qatar relationship, Qatar has always been there for the U.S. when it’s needed… We believe this friendship needs to be mutually-beneficial for both countries. It cannot be a one-way relationship.”

Trump suggests that the U.S. takes over Gaza and makes it a “freedom zone”

A notable absence from Trump’s list of stops during his Middle East tour was Israel, but the ongoing Israel-Hamas war has still been a central point of discussion for the President. Trump expressed hope for the “safety and dignity” for Palestinians in Gaza during a Gulf Cooperation Council Summit in Riyadh on Wednesday.

The next morning, at a roundtable discussion with business leaders in Doha, Trump once again raised his idea for a U.S. takeover of Gaza. It’s an idea that has been previously condemned by many world leaders, as it would likely involve the displacement of the entire Palestinian population. “I think I’d be proud to have the United States have it, take it, make it a freedom zone,” Trump said.

“They’ve never solved the Gaza problem and if you look at it, I have aerial shots, I mean there’s practically no building standing, there’s no building. People are living under the rubble of buildings that collapsed, which is not acceptable, it’s tremendous death. And I want to see that be a freedom zone.”

Trump’s remarks came amid another series of airstrikes on Gaza. Israel has previously announced plans to expand military occupation over the entire Gaza Strip indefinitely.

Read More: Trump Suggests U.S. Should ‘Take’ Gaza and Turn It Into a ‘Freedom Zone’

Possible progress on an Iran nuclear deal

The President’s trip to the Gulf also involved discussions on Iran and the potential progress of a deal with the country. In his first term, Trump withdrew from the nuclear deal the Obama Administration had secured with Iran after years of negotiations.

“I want to make a deal,” Trump said Wednesday during the GCC Summit. He stipulated that a deal would be dependent on Iran halting its support for terrorism and fueling proxy wars in the region, as well as the country not having nuclear weapons.

In an interview with NBC on Wednesday, Ali Shamkhani—a key political, military and nuclear adviser to the Iranian Supreme Leader Ayatollah Ali Khamenei—said that the country is ready to sign a nuclear deal with the U.S., subject to conditions.

Shamkhani said that if a deal were to take place, Iran would not make nuclear weapons, would reduce stockpiles of enriched uranium to a level only needed for civilian use, and would allow international inspectors to supervise the process. In return, all economic sanctions on Iran would need to be lifted. Shamkhani said that if those conditions were met, Iran would sign an agreement on the day.

During Thursday’s roundtable in Doha, Trump said that talks between Steve Witkoff, the U.S. Special Envoy to the Middle East, and Abbas Araghchi, Iran’s Foreign Affairs Minister, were progressing as “very serious negotiations.”

However, Araghchi later said that enriching uranium was a core right for Iran and it was a red line regarding negotiations.

On Friday, after departing the UAE, his final stop of the tour, Trump said that Iran had received a proposal from the U.S. regarding the nuclear programme. Talking to reporters on Air Force One, he said: “They have a proposal, but more importantly, they know that they have to move quickly, or something bad, something bad’s gonna happen.”