Rubio fields questions on Russia-Ukraine, Gaza and Venezuela at wide-ranging news conference

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By MATTHEW LEE and DAVID KLEPPER

WASHINGTON (AP) — Secretary of State Marco Rubio weighed in on Russia-Ukraine and Israel-Hamas peace efforts and defended the Trump administration’s increasing military pressure on Venezuela during a rare, end-of-year news conference Friday.

In a freewheeling meeting with reporters running more than two hours, Rubio also defended President Donald Trump’s radical overhaul in foreign assistance and detailed the administration’s work to reach a humanitarian ceasefire in Sudan in time for the new year.

Rubio’s appearance in the State Department briefing room comes as key meetings on Gaza and Russia-Ukraine are set to be held in Miami on Friday and Saturday after a tumultuous year in U.S. foreign policy. Rubio has assumed the additional role of national security adviser and emerged as a staunch defender of Trump’s “America First” priorities on issues ranging from visa restrictions to a shakeup of the State Department bureaucracy.

The news conference is taking place just hours before Trump’s special envoy Steve Witkoff meets with senior officials from Egypt, Turkey and Qatar to discuss the next phase of the Republican president’s Gaza ceasefire plan, progress on which has moved slowly since it was announced in October.

Witkoff and other U.S. officials, including Trump son-in-law and informal adviser Jared Kushner, have been pushing to get the Gaza plan implemented by setting up a “Board of Peace” that will oversee the territory after two years of war and create an international stabilization force that would police the area.

On Saturday, Witkoff, Kushner and Rubio, who will be at his home in Florida for the holidays, are to meet with Russian President Vladimir Putin’s adviser Kirill Dmitriev in Miami to go over the latest iteration of a U.S.-proposed plan to end the Russia-Ukraine war.

Rubio said there would be no peace deal unless both Ukraine and Russia can agree to the terms, making it impossible for the U.S. to force a deal on anyone. Instead, the U.S. is trying to “figure out if we can nudge both sides to a common place.”

“We understand that you’re not going to have a deal unless both sides have to give, and both sides have to get,” Rubio said. “Both sides will have to make concessions if you’re going to have a deal. You may not have a deal. We may not have a deal. It’s unfortunate.”

The U.S. proposal has been through numerous versions with Trump seesawing back and forth between offering support and encouragement for Ukraine and then seemingly sympathizing with Putin’s hard-line stances by pushing Ukrainian President Volodymyr Zelenskyy to agree to territorial concessions. Kyiv has rejected that concession in return for security guarantees intended to protect Ukraine from future Russian incursions.

On Venezuela, Rubio has been a leading proponent of military operations against suspected drug-running vessels that have been targeted by the Pentagon in the Caribbean Sea and the eastern Pacific Ocean since early September. The Trump administration’s actions have ramped up pressure on leftist Venezuelan President Nicolás Maduro, who has been charged with narco-terrorism in the U.S.

In an interview with NBC News on Friday, Trump would not rule out a war with Venezuela. But Rubio and Defense Secretary Pete Hegseth have publicly maintained that the current operations are directed at “narco-terrorists” trying to smuggle deadly drugs into the United States. Maduro has insisted the real purpose of the U.S. military operations is to force him from office.

Rubio sidestepped a direct question about whether the U.S. wants “regime change in 2026” in the South American country.

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“We have a regime that’s illegitimate, that cooperates with Iran, that cooperates with Hezbollah, that cooperates with narco-trafficking and narco-terrorist organizations,” Rubio said, “including not just protecting their shipments and allowing them to operate with impunity, but also allows some of them to control territory.”

Rubio defended Trump’s prerogatives on Venezuela and said the administration believes “nothing has happened that requires us to notify Congress or get congressional approval or cross the threshold into war.” He added, “We have very strong legal opinions.”

Trump has spoken of wanting to be remembered as a “peacemaker,” but ceasefires his administration helped craft are already in trouble due to renewed military action between Cambodia and Thailand in Asia and Rwanda and the Democratic Republic of the Congo in Africa. Rubio, however, said those deals helped create a list of commitments that can now be used to bring both sides back to peace.

“Those commitments today are not being kept,” Rubio said of the Thailand-Cambodia conflict, which now threatens to reignite following Thai airstrikes. ”The work now is to bring them back to the table.”

Rubio’s news conference comes just two days after the Trump administration announced a massive $11 billion package of arms sales to Taiwan, a move that infuriated Beijing, which has vowed to retake the island by force if necessary.

Trump has veered between conciliatory and aggressive messages to China since returning to the Oval Office in January, hitting Chinese imports with major tariffs but at the same time offering to ease commercial pressure on Beijing in conversations with China’s President Xi Jinping. The Trump administration, though, has consistently decried China’s increasingly aggressive posture toward Taiwan and its smaller neighbors in disputes over the South China Sea.

Since taking over the State Department, Rubio has moved swiftly to implement Trump’s “America First” agenda, helping dismantle the U.S. Agency for International Development and reducing the size of the diplomatic corps through a significant reorganization. Previous administrations have distributed billions of dollars in foreign assistance over the past five decades through USAID.

Critics have said the decision to eliminate USAID and slash foreign aid spending has cost lives overseas, although Rubio and others have denied this, pointing to ongoing disaster relief operations in the Philippines, the Caribbean and elsewhere, along with new global health compacts being signed with countries that previously had programs run by USAID.

“We have a limited amount of money that can be dedicated to foreign aid and humanitarian assistance,” Rubio said. “And that has to be applied in a way that furthers our national interest.”

Associated Press writer Bill Barrow contributed to this report.

Follow the AP’s coverage of Secretary of State Marco Rubio at https://apnews.com/hub/marco-rubio.

Paris court rejects bid to suspend Shein platform in France

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PARIS (AP) — A Paris court on Friday rejected a government request to suspend Chinese fast-fashion platform Shein in France after authorities found illegal weapons and child-like sex dolls for sale on the fast-fashion giant’s website.

Shein welcomed the decision, saying it remains committed to strengthening its control processes in cooperation with French authorities.

“Our priority remains protecting French consumers and ensuring compliance with local laws and regulations,” the company said in an emailed statement to The Associated Press.

The controversy dates to early November, when France’s consumer watchdog and Finance Ministry moved toward suspending Shein’s online marketplace after authorities said they had found childlike sex dolls and prohibited “Class A” weapons listed for sale, even as the company opened its first permanent store in Paris.

French authorities gave Shein hours to remove the items. The company responded by banning the products and largely shutting down third-party marketplace listings in France.

French officials have also asked the European Commission to examine how illegal products were able to appear on the platform under EU rules governing large online intermediaries.

French authorities were not immediately available for comment.

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States faces a choice on whether to embrace Trump’s tax cuts on tips, overtime and more

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By DAVID A. LIEB

JEFFERSON CITY, Mo. (AP) — To tax tips or not? That is a question that will confront lawmakers in states across the U.S. as they convene for work next year.

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President Donald Trump’s administration is urging states to follow its lead by enacting a slew of new tax breaks for individuals and businesses, including deductions for tips and overtime wages, automobile loans and business equipment.

In some states, the new federal tax breaks will automatically apply to state income taxes unless legislatures opt out. But in many other states, where tax laws are written differently, the new tax breaks won’t appear on state tax forms unless legislatures opt in.

In states that don’t conform to the federal tax changes, workers who receive tips or overtime — for example — will pay no federal tax on those earnings but could still owe state taxes on them.

States that embrace all of Trump’s tax cuts could provide hundreds of millions of dollars of annual savings to certain residents and businesses. But that could financially strain states, which are being hit with higher costs because of new Medicaid and SNAP food aid requirements that also are included in the big bill Trump signed.

Most states begin their annual legislative sessions in January. To retroactively change tax breaks for 2025, lawmakers would need to act quickly so tax forms could updated before people begin filing them. States also could apply the changes to their 2026 taxes, a decision requiring less haste.

So far, only a few states have taken votes on whether to adopt the tax breaks.

“States in general are approaching this skeptically,” said Carl Davis, research director at the nonprofit Institute on Taxation and Economic Policy.

Trump’s treasury presses states to `immediately conform’

A bill Trump signed on July 4 contains about $4.5 trillion of federal tax cuts over 10 years.

It creates temporary tax deductions for tips, overtime and loan interest on new vehicles assembled in the U.S. It boosts a tax deduction for older adults. And it temporarily raises cap on state and local tax deductions from $10,000 to $40,000, among other things. The law also provides numerous tax breaks to businesses, including the ability to immediately write off 100% of the cost of equipment and research.

Forty-one states levy individual income taxes on wages and salaries. Forty-four states charge corporate income taxes.

Treasury Secretary Scott Bessent this month called on those states “to immediately conform” to the federal tax cuts and accused some Democratic-led states that haven’t done so of engaging in “political obstructionism.” Though Bessent didn’t mention it, many Republican-led states also have not decided whether to implement the tax deductions.

“By denying their residents access to these important tax cuts, these governors and legislators are forcing hardworking Americans to shoulder higher state tax burdens, robbing them of the relief they deserve and exacerbating the financial squeeze on low- and middle-income households,” Bessent said.

But some tax analysts contend there’s more for states to consider. The tax break on tips, for example, could apply to nearly 70 occupation fields under a proposed rule from the Internal Revenue Service. But that would still exclude numerous low-wage workers, said Jared Walczak, vice president of state projects at the nonprofit Tax Foundation.

“Lawmakers need to consider whether these are worth the cost,” Walczak said.

Only a few states offer tax breaks for tips and overtime

Because of the way state tax laws are written, the federal tax breaks for tips and overtime wages would have carried over to just seven states — Colorado, Idaho, Iowa, Montana, North Dakota, Oregon and South Carolina. But Colorado opted out of the state tax break for overtime shortly before the federal law was enacted.

Michigan this fall became first — and, so far, only — state to opt into the tax breaks for tips and overtime wages, effective in 2026. The overtime tax exemption is projected to cost the state nearly $113 million and the tips tax break about $45 million during its current budget year, according to the state treasury department.

Michigan lawmakers offset that by decoupling from five federal corporate tax changes the state’s treasury estimated would have reduced Michigan tax revenues by $540 million this budget year.

Republican state Rep. Ann Bollin, chair of the Michigan House Appropriations Committee, said the state could not afford to embrace all the tax cuts while still investing in better roads, public safety and education.

“The best path forward is to have more money in people’s pockets and have less regulation — and this kind of moved in that direction,” she said.

Arizona could be among the next states to act. Democratic Gov. Katie Hobbs has called upon lawmakers to adopt the tax breaks for tips, overtime, seniors and vehicle loans, and follow the federal government by also increasing the state’s standard deduction for individual income taxpayers. Republican state House leaders said they stand ready to pass the tax cuts when their session begins Jan. 12.

Several states have rejected corporate tax breaks

In addition to Michigan, lawmakers in Delaware, Illinois, Pennsylvania and Rhode Island have passed measures to block some or all of the corporate tax cuts from taking effect in their states.

A new Illinois law decoupling from a portion of the corporate tax changes could save the state nearly $250 million, said Democratic state Sen. Elgie Sims, chair of the Senate Appropriations Committee. He said that could help ensure continued funding for schools, health care and vital services.

Illinois Gov. JB Pritzker, an outspoken Democratic opponent of Trump, also cited budget concerns for rejecting the corporate tax cut provision. He said states already stand to lose money because of other provisions in Trump’s big bill, such as a requirement to cover more of the costs of running the Supplemental Nutrition Assistance Program.

“The decoupling is an effort to try to hold back the onslaught from the federal government to make sure that we can support programs like the one we’re announcing today,” Pritzker told reporters at a December event publicizing a grant to address homelessness in central Illinois.

Associated Press writer John O’Connor in Springfield, Illinois, contributed to this report.

Mystery as YouTube creator’s finance livestream appears on White House website

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By MICHELLE L. PRICE

WASHINGTON (AP) — The livestream of a YouTube content creator talking about investments mysteriously appeared to take over a White House website, raising questions about whether the site was hacked.

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The livestream appeared for at least eight minutes late Thursday on whitehouse.gov/live, where the White House usually streams live video of the president speaking.

It’s unclear if the website was breached or the video was linked accidentally by someone in the government. The White House said in a statement that it was “aware and looking into what happened.”

The video that appeared on the government-run website featured some of a more than two-hour livestream from Matt Farley, who posts as @RealMattMoney, as he answered financial questions.

Farley said in an email to The Associated Press on Friday that he had no idea what happened.

“If I had known my stream was going to go super public like that I would be dressed a bit nicer and had a few more pointed topics! And it likely wouldn’t have been about personal finance,” Farley wrote.

President Donald Trump’s administration and campaign have had a series of digital security breaches and challenges over the last year.

In May, government officials began investigating after elected officials, business executives and other prominent figures received text messages and phone calls from someone impersonating Susie Wiles, the Republican president’s chief of staff.

Last year, Iran hacked into Trump’s campaign. Sensitive internal documents were stolen and distributed, including a dossier on Vice President JD Vance, created before he was selected as Trump’s running mate.

Associated Press writer Bill Barrow contributed to this report from Atlanta.