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--:-- John Bickley: Good morning, I'm John Bickley, editor-in-chief of the Daily Wire, and this is Morning Wire.
--:-- Georgia Howe: [absent, on vacation] I'm Georgia Howe, co-host of Morning Wire. Today, we're talking about the latest developments in Russia, China, and the United States.
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--:-- John Bickley: Russian President Vladimir Putin's control over the country remains in question following the short-lived rebellion of Wagner Group mercenaries. We're going to continue to stand with Ukraine. So whatever occurred in Russia this past weekend did not change those facts.
--:-- John Bickley: How are other countries reacting to the dramatic turn of events and what does it mean for the war in Ukraine?
--:-- John Bickley: Cabot Phillips is our senior editor, and he's been following this story closely. Cabot, what's the latest out of Moscow?
--:-- Cabot Phillips: Yeah, on Monday, Russian President Vladimir Putin offered his first comments to the public since the mutiny fizzled out. Essentially declaring victory, saying the country had consolidated around his government. He did, however, thank Wagner soldiers for avoiding bloodshed, saying they were misled by their leaders, before reiterating that he would have crushed them with force if necessary.
--:-- Cabot Phillips: He also promised to abide by the deal he struck, which offered legal immunity to those who took part in the uprising.
--:-- Cabot Phillips: One of the big questions now facing Putin is whether their rebellion results in shakeups at the Kremlin. Specifically, will he replace the country's embattled defense minister, who was at the heart of the mutiny attempt?
--:-- Cabot Phillips: For his part, Wagner leader Yevgeny Prigozhin has tried to downplay the rebellion, posting a video on Monday calling it a protest, not a coup attempt, and saying he never intended to overthrow Putin, which is obviously quite the about-face from what we saw over the weekend when he was marching on Moscow.
--:-- Cabot Phillips: Yeah, it is. This all centered on the Wagner Group.
--:-- Cabot Phillips: Yeah, it's important to understand the Wagner Group might technically be a private company, but they're essentially a small military of their own. The group employs tens of thousands of some of the most battle-hardened soldiers on the planet, and their mercenaries have been deployed by Putin everywhere from Syria and Libya to Mali, fighting wherever Russian interests are at stake.
--:-- Cabot Phillips: Much of the unit is composed of convicts who have been released from prison in exchange for years of service, and their tactics are notoriously brutal.
--:-- Cabot Phillips: For example, videos this year appear to show Wagner leaders killing deserters and those caught retreating with a sledgehammer.
--:-- Cabot Phillips: Yeah, shocking stuff. How could this turmoil in Russia impact the war in Ukraine?
--:-- Cabot Phillips: Well, Ukrainian officials have been clear that they viewed the mutiny as a sign that they're winning the war. They're optimistic that the rebellion will also serve as a distraction in Moscow and demoralize Russian troops opening the door for military success on the front lines.
--:-- Cabot Phillips: Remember to this point in the war Wagner forces have seen more success than traditional Russian troops.
--:-- Cabot Phillips: On that note, here's Secretary of State Antony Blinken speaking to CBS.
--:-- Cabot Phillips: To the extent that it presents a real distraction for Putin and for Russian authorities, that they have to look at sort of mind their rear, even as they're trying to deal with the counteroffensive in Ukraine. I think that creates even greater openings for the Ukrainians to do well on the ground.
--:-- Cabot Phillips: But it is worth noting, to this point, we have not seen any real gains for the Ukrainians. Their long-awaited counter-offensive has been off to a rocky start with little to show for their renewed efforts.
--:-- Cabot Phillips: Right. Now, what does Putin's struggle for power mean for the West?
--:-- Cabot Phillips: So there was initially some cautious optimism that a fractured Russia could present a window of opportunity in Ukraine, but there are just as many fears associated with the turmoil.
--:-- Cabot Phillips: First, Western allies have expressed concern over how the mutiny could impact Putin's strategy in Ukraine. His relative lack of success in taking the country has really dragged on his popularity. And there's now growing fear that he'll resort to even more brutal tactics in an attempt to assert dominance and show his people the war can be won and that he's still in total control.
--:-- Cabot Phillips: A damaged Putin is a dangerous Putin, as he's likely to become even more unpredictable.
--:-- Cabot Phillips: The other big fear here is that Purgosian or even some other leader launches another mutiny and plunges the country into civil war.
--:-- Cabot Phillips: Yeah. And what about American adversaries? How have they reacted to this development?
--:-- Cabot Phillips: Yeah, one of the big questions this week has been how China in particular would react. Remember, President Xi Jinping has become one of Putin's closest allies.
--:-- Cabot Phillips: But despite that very close relationship, as the mutiny raged, there was radio silence from Chinese officials.
--:-- Cabot Phillips: It wasn't until Sunday evening, well after Putin prevailed, that Beijing finally issued a statement in support of Putin, saying, quote, as Russia's friendly neighbor and comprehensive strategic partner, China supports Russia in maintaining national stability and achieving development and prosperity.
--:-- Cabot Phillips: Reading between the lines, the fact that Xi only supported Putin after it was clear he'd remain in power shows the alliance might not be as deep as one would imagine.
--:-- Cabot Phillips: This apparent crack in Putin's armor could alter the power dynamic between the two leaders.
--:-- Cabot Phillips: Keep an eye on that in the coming months.
--:-- Cabot Phillips: Kappa, thanks for reporting.
--:-- Cabot Phillips: Anytime.
--:-- John Bickley: Coming up, how two Chinese companies are dominating the import game. Every day, hundreds of thousands of packages arrive from China directly at U.S. homes, all duty free.
--:-- John Bickley: Some lawmakers say that's causing a trade imbalance, and they want to lower the threshold of goods that qualify for free entry.
--:-- John Bickley: Daily Wire culture reporter Megan Basham is here now with more.
--:-- Megan Basham: So Megan, to set the stage, what's the tax rule now on foreign imports?
--:-- Megan Basham: So in 2016, Congress changed the rules so that any packages that come into the country that are valued at less than $800 face no tariffs as long as they're going to individual buyers. And that's what they call the de minimis rule.
--:-- Megan Basham: Now, before 2016, the tax ceiling was much lower, only $200. Critics say that this has created a major trade imbalance with China, which especially benefits from this rule because so many inexpensive goods are manufactured there.
--:-- Megan Basham: A hearing in the House last month that focused on economic competition with China delved into this issue, and former U.S. Trade Representative Robert Lighthizer testified as to why he believes that duty-free limit needs to be dramatically lowered.
--:-- Megan Basham: Nobody dreamt this would ever happen. Now we have packages coming in 2 million packages a day almost all from China. We have no idea what in them. We don't really know what the value is. There's no way to check any of it.
--:-- Megan Basham: There's a recent study that's come out saying that the value of this could be as much as $190 billion a year, largely additional trade deficit with China.
--:-- Megan Basham: Half a trillion, 3% of their entire growth is really transferred to the United States.
--:-- Megan Basham: In my opinion, and Congress should completely get rid of the de minimis rule and go back to what it was meant to be. That is to say, $50 or $100.
--:-- Megan Basham: But I fear that even that won't work because there are billion-dollar companies that exist solely because of this loophole.
--:-- Megan Basham: Now, Lighthizer went on to say that fast fashion companies like Shein and Timu would not exist without that loophole.
--:-- Megan Basham: In fact, a report released last week found that those two companies account for more than 30% of all de minimis shipments.
--:-- Megan Basham: So last year, it was like 600,000 a day.
--:-- Megan Basham: Wow, so 30% from Sheehan and Teemu.
--:-- Megan Basham: Yes, and if you're not familiar with those companies, I'll just tell you that as a mom of a teenage daughter, they are very popular in that age group because the clothes are so cheap.
--:-- Megan Basham: So they are now the top two shopping apps in the country, bigger than Amazon.
--:-- Megan Basham: And speaking of Amazon, American companies like Amazon also help these Chinese manufacturers exploit that loophole.
--:-- Megan Basham: They'll ship packages from China that would be over the $800 limit into Canada first, for example. And there they'll divide them into smaller packages so that they qualify as duty-free before then shipping them into the U.S.
--:-- Megan Basham: All right. So that definitely seems questionable.
--:-- Megan Basham: Why is this such a problem?
--:-- Megan Basham: Well, the concern is that it's hurting U.S. workers in manufacturing and retail.
--:-- Megan Basham: American companies like Gap and H&M pay hundreds of millions of dollars in import duties.
--:-- Megan Basham: Meanwhile, you have these Chinese companies that are paying virtually nothing.
--:-- Megan Basham: So small Chinese imports have exploded. Before the new rule in 2016, about 200 million packages a year qualified for that de minimis rule. By 2021, it was nearly 800 million.
--:-- Megan Basham: And China accounts for about 60% of that.
--:-- Megan Basham: So politically, that could make for some pretty interesting bedfellows, as this is a major issue for labor unions, who, of course, typically align with the left.
--:-- Megan Basham: And in the past, it was Democrats who actually tried and failed to change this rule.
--:-- Megan Basham: So you could start to see some bipartisan support for it.
--:-- Megan Basham: And there have been some complaints raised by human rights groups, correct?
--:-- Megan Basham: Right. And they say that those low tariff thresholds allow companies like Sheen and Timu to avoid complying with regulations that require companies not to use forced labor.
--:-- Megan Basham: Now, on the other side of the coin, we're seeing pushback from business interests.
--:-- Megan Basham: Representatives at the U.S. Chamber of Commerce want to see that current law preserved because they say that it speeds up the pace of commerce and it keeps costs slow for consumers.
--:-- Megan Basham: They also say it allows customs and border officials to focus on more important issues.
--:-- Megan Basham: It's always interesting to watch these issues where Republicans and Democrats seem to sort of swap sides.
--:-- Megan Basham: Yeah. Thanks, Megan.
--:-- John Bickley: Anytime.
--:-- John Bickley: New York Mayor Eric Adams is taking heat as he sends migrant families out of his city to other parts of the country after criticizing Republican governors who did the same.
--:-- John Bickley: After Politico reported the surprising and some argue hypocritical move last week, the mayor's office is scrambling to respond.
--:-- John Bickley: Daily Wire contributor David Marcus is here to discuss. Hey, Dave.
--:-- David Marcus: Thanks for having me on.
--:-- John Bickley: So it seems that the roles have been reversed here. What exactly is going on?
--:-- David Marcus: Basically what was discovered was that Mayor Adams between April of 2022 and April of 2023 was sending 114 migrant families who had arrived in New York City to other cities across the country at a cost of This, of course, came at a time when he was vociferously attacking Florida Governor Ron DeSantis and Texas Governor Greg Abbott for sending migrants to New York.
--:-- David Marcus: So it's difficult not to see the irony. Even though obviously 114 families is a drop in the bucket compared to the almost 80,000 migrants who have made their way to Gotham.
--:-- David Marcus: But regardless of the numbers, critics of Adams are saying that what was good for the goose is good for the gander.
--:-- David Marcus: Yeah. Has the mayor responded to this criticism and the claims of hypocrisy?
--:-- David Marcus: City Hall has. And the spokeswoman there attempted to draw a distinction, not just based on the wrong number, but also on Mayor Adams' allegation that at least some of the migrants either did not want to go from GOP states to New York City or didn't know that's where they were going, charges that the governors refute.
--:-- David Marcus: And honestly, there isn't much evidence behind the mayor's claims, which have been echoed by other Democrats, such as California Governor Gavin Newsom, who has gone so far as to threaten Ron DeSantis with arrest for kidnapping after sending migrants to the Golden State.
--:-- David Marcus: Right. We actually talked to DeSantis about that last week.
--:-- David Marcus: Now, New York City is a sanctuary city. So isn't the idea that it would provide for migrants itself rather than shipping them to other cities?
--:-- David Marcus: And what are the places where they're actually being sent?
--:-- David Marcus: Well, yeah. And the answer to your second question adds some further irony as the two top destinations for the migrants moved by Adams are, you guessed it, Florida and Texas.
--:-- David Marcus: But frankly, New York and other sanctuary cities are in a real jam. They never expected to be dealing with this many migrants this quickly.
--:-- David Marcus: And it's draining resources like a deadbeat sibling.
--:-- David Marcus: Adams is certainly aware of how this looks, but honestly, he's running out of good options.
--:-- David Marcus: And there have been concerns from towns upstate that the mayor is sending them their way too.
--:-- David Marcus: Is this just the latest step for Adams?
--:-- David Marcus: Yeah, and you're right. There's an ongoing battle in smaller towns and cities north of the Big Apple where hotels are being used to handle the overflow.
--:-- David Marcus: And of course, his honor has also floated the rather bizarre idea of migrants being housed in private homes.
--:-- David Marcus: I think what this shows more than anything else is the magnitude of the problem.
--:-- David Marcus: And really, that was the whole point of the Republican governor sending the migrants in the first place.
--:-- David Marcus: So the parts of the country untouched directly by the border crisis, aside from fentanyl and other drugs, that is, had some skin in the game.
--:-- David Marcus: And it seems to be working.
--:-- David Marcus: Yeah, even some legacy media outlets aren't able to ignore it at this point.
--:-- David Marcus: Dave, thanks for joining us.
--:-- John Bickley: Thanks for having me.
--:-- John Bickley: Another story we're tracking this week. Republican presidential candidate and Florida governor Ron DeSantis was in Eagle Pass, Texas on Monday, where he announced his plan to end mass illegal immigration and the flow of drugs across the border.
--:-- John Bickley: Daily Wire reporter Tim Pierce has more.
--:-- Tim Pierce: The plan, titled No Excuses, would complete Trump's border wall, authorize states to enforce immigration law, and crack down on sanctuary jurisdictions.
--:-- Tim Pierce: And in the move that's caused the biggest stir, the Florida governor said he would authorize the use of deadly force to deter Mexico's drug cartels.
--:-- Tim Pierce: Of course you use deadly force. I mean, would you let somebody just break into your house and do you harm? No.
--:-- Tim Pierce: And I can tell you in Texas, they wouldn't do that. If you drop a couple of these cartel operatives, you're not going to have to worry about that anymore.
--:-- John Bickley: That's all the time we've got this morning. Thanks for waking up with us.
--:-- John Bickley: We'll be back this afternoon with more of the news you need to know.
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