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    Will global climate action be a casualty of Trump’s tariffs?

    Donald Trump’s upending of the global economy has raised fears that climate action could emerge as a casualty of the trade war.In the week that has followed “liberation day”, economic experts have warned that the swathe of tariffs could trigger a global economic recession, with far-reaching consequences for investors – including those behind the green energy projects needed to meet climate goals.Fears of a prolonged global recession have also tanked oil and gas prices, making it cheaper to pollute and more difficult to justify investment in clean alternatives such as electric vehicles and low-carbon heating to financially hard-hit households.But chief among the concerns is Trump’s decision to level his most aggressive trade tariffs against China – the world’s largest manufacturer of clean energy technologies – which threatens to throttle green investment in the US, the world’s second-largest carbon-emitter.‘A tragedy for the US’The US is expected to lag farther behind the rest of the world in developing clean power technologies by cutting off its access to cheap, clean energy tech developed in China. This is a fresh blow to green energy developers in the US, still reeling from the Trump administration’s vow to roll back the Biden era’s green incentives.Leslie Abrahams, a deputy director at the Center for Strategic and International Studies (CSIS) in Washington DC, said the tariffs would probably hinder the rollout of clean energy in the US and push the country to the margins of the global market.Specifically, they are expected to drive up the price of developing clean power, because to date the US has been heavily reliant on importing clean power technologies. “And not just imports of the final goods. Even the manufacturing that we do in the United States relies on imported components,” she said.The US government’s goal to develop its manufacturing base by opening new factories could make these components available domestically, but it is likely to take time. It will also come at considerable cost, because the materials typically imported to build these factories – cement, steel, aluminium – will be subject to tariffs too, Abrahams said.“At the same time there are broader, global economic implications that might make it difficult to access inexpensive capital to build,” she added. Investors who had previously shown an interest in the US under the green-friendly Biden administration are likely to balk at the aggressively anti-green messages from the White House.Abrahams said this would mean a weaker appetite for investment in rolling out green projects across the US, and in the research and development of early-stage clean technologies of the future. This is likely to have long-term implications for the US position in the global green energy market, meaning it will “cede some of our potential market share abroad”, Abrahams added.Instead, countries like China are likely to divert sales of their clean energy tech away from the US to other countries eager to develop green energy, Abrahams said. “So on the one hand, that should help to accelerate adoption of clean energy in those countries, which is good for emissions, but for the US, that is future market share that we’re ceding,” she said.‘Clean energy is unstoppable, with or without Trump’It’s important to distinguish between the US and the rest of the world, according to Kingsmill Bond, a strategist for the energy thinktank Ember.“The more the US cuts itself off from the rest of the world, the more the rest of the world will get on with things and the US will be left behind. This is a tragedy for the clean energy industry in the US, but for everyone else there are opportunities,” he said.Analysis by the climate campaign group 350.org has found that despite rising costs and falling green investment in the US, Trump’s trade war will not affect the energy transition and renewables trade globally.It said the US was already “merely a footnote, not a global player” in the race to end the use of fossil fuels. Only 4% of China’s clean tech exports go to the US, it said, in a trade sector where sales volume grew by about 30% last year.“Trump’s tariffs won’t slow the global energy transition – they’ll only hurt ordinary people, particularly Americans,” said Andreas Sieber, an associate director at 350.org. “The transition to renewables is unstoppable, with or without him. His latest move does little to impact the booming clean energy market but will isolate the US and drive up costs for American consumers.”View image in fullscreenOne senior executive at a big European renewable energy company said developers were likely to press on with existing US projects but in future would probablyinvest in other markets.“So we won’t be doing less, we’ll just be going somewhere else,” said the executive, who asked not to be named. “There is no shortage of demand for clean energy projects globally, so we’re not scaling back our ambitions. And excluding the US could make stretched supply chains easier to manage.”Countries likely to benefit from the fresh attention of renewable energy investors include burgeoning markets in south-east Asia, where fossil fuel reliance remains high and demand for energy is rocketing. Australia and Brazil have also emerged as countries that stand to gain.“In times like these, countries will be increasingly on the hunt for domestic solutions,” Bond said. “And that means clean energy and local supply chains. There are always climate reasons to go green, but there are national security reasons now too.”The challenge for governments hoping to seize the opportunity provided by the US green retreat will be to assure rattled investors that they offer a safe place to invest in the climate agenda.Dhara Vyas, the chief executive of Energy UK, the UK industry’s trade body, said: “Certainty has always been the thing that investors say they need. The UK is seen as a stable country with a stable government, but now more than ever we need to double down on giving certainty to investors.”“Investors do like certainty,” Bond agreed. “But they also like growth and opportunity, so that’s why there is some confidence that they will continue to deploy capital in the sector.”‘The US still matters’Although the green investment slowdown may be largely limited to the US, this still poses concerns for global climate progress, according to Marina Domingues, the head of new energies for the consultancy Rystad Energy.“The US is a huge emitter country. So everything the US does still really matters to the global energy transition and how we account for CO2,” she said. The US is the second most polluting country in the world, behind China, which produces almost three times its carbon emissions. But the US’s green retreat comes at a time when the country was planning to substantially increase its domestic energy demand.After years of relatively steady energy demand, Rystad predicts a 10% growth in US electricity consumption from a boom in AI datacentres alone. The economy is also likely to require more energy to power an increase in domestic manufacturing as imports from China dwindle.In the absence of a growing energy industry, this is likely to come from fossil fuels, meaning growing climate emissions. The US is expected to make use of its abundance of shale gas, but it is planning to use more coal in the future too.In the same week that Trump set out his tariffs, he signed four executive orders aimed at preventing the US from phasing out coal, in what climate campaigners at 350.org described as an “abuse of power”.Anne Jellema, the group’s executive director, said: “President Trump’s latest attempt to force-feed coal to the US is a dangerous fantasy that endangers our health, our economy and our future.” More

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    The big lesson for Europe? Trump backed down under pressure | Alexander Hurst

    My condolences to everyone who spent days trying to play 5D chess with Donald Trump’s market-exploding tariff mess. Where Trump is involved, there is a cloud of malevolent chaos, and there is grift amid the chaos. What grandmasters there are to be found are almost certainly grandmasters of grift.When markets dump $10tn in three days and then gain trillions back in a single afternoon on the erratic decisions of one deeply corrupt person, you can be sure that a small number of people have made immense sums of money out of that volatility. Were the people responsible for abnormal spikes of buying into the markets (including call options on various indexes and exchange-traded funds) on Wednesday morning – and again, 20 minutes before the tariff announcement went public – extraordinarily lucky? Were they in the right Signal group? Or were they just simply following Trump on Truth Social, where he posted: “THIS IS A GREAT TIME TO BUY!!! DJT” –just a few hours before dropping the news that he was kind of pulling back.The first takeaway for the EU – beyond the potential stock tips – is that Trump will back down under pressure. So don’t grovel: the 10% universal tariff is still there, as are last month’s tariffs on steel and aluminum, so why has the EU unilaterally stepped down its retaliatory tariffs without a corresponding step-down from the US?Trump, of course, is spinning his partial U-turn as a result of “these countries … calling me, kissing my ass”, as he bragged to a gathering of congressional Republicans on Tuesday night. I have no doubt that Trump – whom hundreds of mental health professionals have described as having such a striking and serious case of malignant narcissism that they were willing to break a professional rule and diagnose him from a distance – would have loved for that to be true. But let me go out on a limb and say that it wasn’t the ass-kissing or any “deals”. It was that investors and funds the world over were fleeing anything and everything linked to the US – including its sovereign debt.There is a longstanding phenomenon whereby Europe tends to overvalue the US’s power and underestimate its own. Europe neither “kissed ass” nor retaliated over the “liberation day” tariffs; it observed as the market carnage and threat to US Treasury bonds punched a hole in the idea of the US as impregnable. Imagine how much faster the flood away from the US and to safety elsewhere (including the euro) would have been if the EU hadimmediately used its so-called bazooka, the anti-coercion instrument – a powerful new regulation that would allow it to target US services industries such as banking and tech.The second takeaway is that the rest of the world is ready to bypass the US’s chaos and unpredictability – it just needs Europe to be the alternative. What Trump also does not understand is that the US may have a trade deficit, but it was a net exporter of trust – until it blew up an interlocking economic and security order that it had designed, built and maintained over eight decades – and of which it was the primary beneficiary. As a result, the view from Brussels now is that “there is no long-term credibility” with the US, Claus Vistesen, of Pantheon Macroeconomics, told me.Europe, on the other hand, plays by the rules. In the long run the more dents Trump pounds into the rule of law and the idea that the US is stable, rather than erratic, the stronger the euro’s argument for replacing the dollar as the world’s reserve currency. Which brings me to the third takeaway.In the face of the Trump administration’s very real animosity towards it, the EU must act as swiftly as possible to shore up its greatest weakness: its dependence on fossil-fuel imports. Sometimes, the animosity is almost laughably tragicomic, such as when US commerce secretary Howard Lutnick ranted that Europeans “hate our beef because our beef is beautiful and theirs is weak”. Other times, it’s more transparent, such as when Trump claimed there would be no negotiations unless the Europeans “pay us a lot of money on a yearly basis, number one for present, but also for past”. As in, in Trump’s mind, $350bn in annual purchases of US natural gas in exchange for lifting tariffs.Over the past few months, the refrain that governments should weaken climate regulation in order to promote growth has picked up. This would be a truly pyrrhic victory – primarily because Europe is acutely vulnerable to climate breakdown, the human and financial costs of which are staggeringly worse at every half-degree of heating, but also because the EU’s dependence on imported fossil fuels – from Russia, or from the US – is a glaring strategic and economic weakness. In fact, the grand irony of Trump’s pro-fossil fuel agenda is that he has exploded the green re-industrialisation that actually was taking place, thanks to Joe Biden’s Inflation Reduction Act, leaving the door wide open for someone else.So, to paraphrase the tech bros, if Trump is going to move fast and break things, then let’s move fast and build things.“Europe can turn this into a window of opportunity to further its edge with the US on clean tech,” says Simone Tagliapietra of the Brussels thinktank Bruegel. He advocates for a decarbonisation bank, completing the single market as urged by Mario Draghi, and issuing new eurobonds.The mantra going forward should be “whatever it takes” to fully replace fossil fuels with renewables – designed in Europe, built in Europe – so that it never spends $350bn to import gas from the US, Russia, or anywhere else.

    Alexander Hurst is a Guardian Europe correspondent More

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    Noaa fires hundreds of climate workers after court clears way for dismissals

    Letters went out to hundreds of workers at the National Oceanic and Atmospheric Administration (Noaa) on Thursday, informing them their jobs had been terminated – again.The probationary employees, many who performed important roles at the US’s pre-eminent climate research agency, have spent weeks in limbo after being dismissed in late February, only to be rehired and put on administrative leave in mid-March following a federal court order.“Well after about 3 weeks of reinstatement, I, along with other probationary employees at NOAA, officially got “re-fired” today,” Dr Andy Hazelton, a scientist who worked on hurricane modeling at Noaa posted on X. “What a wild and silly process this has been.”The fired Noaa employees were among the roughly 16,000 people terminated across the federal workforce in a sweeping move by the Trump administration that targeted workers in “probationary” status. Some were categorized that way because they were new in their careers, but others had recently received promotions or been added full-time to agencies after years of contract or temporary work.“The majority of probationary employees in my office have been with the agency for 10+ years and just got new positions,” said one worker who still had their job, and who spoke to the Guardian under the condition of anonymity for fear of reprisal in February, when the firings first happened.“If we lose them, we’re losing not just the world-class work they do day-to-day, but also decades of expertise and institutional knowledge.”This week’s news caps a rollercoaster period for Noaa employees. On Tuesday, the US supreme court struck down the March court decision that said fired probationary workers must be rehired, ruling that the nonprofit groups who sued on behalf of the workers did not have legal standing.The letters sent to Noaa staff, reviewed by the Guardian, were signed by John Guenther, acting general counsel of the US Department of Commerce, and consisted of two simple paragraphs: one reiterating that employees were reinstated and put in non-duty paid status, and a second explaining that the temporary restraining order protecting their jobs was no longer in effect.“Accordingly, the department is reverting your termination action to its original effective date,” Guenther wrote, adding that fired employees would not receive any pay beyond their termination date.It’s unclear whether those fired will receive all the pay they are owed. Hazelton told the Guardian that paychecks for the last two weeks have not been issued yet. His access to healthcare, which was terminated immediately, was never reinstated.These firings are already hampering the agency’s ability to provide essential climate and weather intelligence. Noaa is also bracing for more cuts as leaders make moves to comply with Trump’s “reduction in force”, an order that could cull 1,029 more positions.In an interview with the Guardian last month, Hazelton said the firings across the agency and the pressures felt by those still there will affect the outcome of the work. Vital work has slowed or stopped as teams try to navigate the chaos, along with the threat of severe budget cuts and political restrictions.“It’s going to create problems across the board,” he said, adding that people are going to do their best but it will be a lot harder to achieve the mission. “It may be a slow process but the forecasts are going to suffer and as a result people will suffer.”While the losses are expected to have a profound impact on the American public, it will be felt globally, too. Scientists and forecasters around the world depend on Noaa satellites, studies, and intelligence, including data-sharing that tracks severe weather across Europe, coordination for disaster response in the Caribbean, and monitoring deforestation and the effects of the climate crisis in the Amazon rainforest.The official terminations also came just days after the White House pulled funding for the national climate assessment, which summarizes the effects of rising global temperatures on the US.The crackdown on climate science comes as the dangers from extreme weather events and deadly billion-dollar disasters continue to rise. Experts say these cuts, which will do little to limit the federal government’s budget, will only add to the threats.Among 800 positions cut were workers who track El Niño-La Niña weather patterns around the world, people who model severe storm risks, and scientists contributing to global understanding of what could happen as the world warms. More

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    Trump news at a glance: no end in sight to tariff pain; wrongly deported man wins US return

    It was another day of chaos on Thursday as markets sank again after a short-lived rally . The optimism brought about by Donald Trump’s retreat on global “reciprocal” tariffs quickly evaporated amid investor fears over ongoing uncertainty. Near the end of a wild week – with the US imposing 145% tariffs on China and Beijing looking like it won’t back down – the markets are weary.Stocks were even unresponsive to news on Thursday morning that the European Union announced it would suspend 25% retaliatory tariffs against US imports and new data showed inflation in the US cooled to 2.4% in March – both would typically be cause for optimism on Wall Street.Former US treasury secretary Janet Yellen called Trump’s economic policies the “worst self-inflicted wound” an administration had ever imposed on a “well-functioning economy”.Trump inflicts more pain on marketsUS stocks fell again on Thursday after a historic rally following Donald Trump’s shock retreat on Wednesday on the hefty tariffs he had just imposed on dozens of countries.The falls came as the president blamed “transition problems” for the market reaction and the sell-off deepened after a White House clarification noted that total tariffs on China had been raised by 145% since Trump took office.Read the full storySupreme court orders US to return wrongly deported manThe supreme court told the Trump administration it must return a Salvadorian man wrongly deported from the United States. It follows an order by a US district judge that the administration “facilitate and effectuate” the return of Kilmar Abrego Garcia, in response to a lawsuit filed by the man and his family challenging the legality of his deportation.Read the full storyTrump escalates crackdown on top US university, reports sayThe Trump administration is considering placing Columbia university under a consent decree, according to a report by the Wall Street Journal, a dramatic escalation in the federal government’s crackdown on the Ivy League institution.Read the full storyUS can deport activist for his beliefs, claims governmentUS secretary of state Marco Rubio has argued Columbia university activist Mahmoud Khalil could be deported for his beliefs alone.Faced with a deadline to submit evidence for its attempt to remove Khalil, the federal government instead submitted a brief memo, signed by Rubio, citing the Trump administration’s authority to expel noncitizens whose presence in the country damages US foreign policy interests. The memo does not allege criminal conduct and argues instead Khalil can be deported for his beliefs.Read the full storyCourt rules noncitizens must register with US governmentA federal judge is allowing the Trump administration to move forward with a requirement that noncitizens in the US must register with the federal government, in a move that could have far-reaching repercussions for immigrants across the country.Read the full storyHouse passes bill on proving citizenship to voteThe US House approved a bill on Thursday that would require people to prove they are citizens when they register to vote, which opponents claim could disenfranchise millions of Americans.The bill, sponsored by the Texas Republican Chip Roy, calls for people who register to vote or update their registration to show documentary proof of citizenship, which could be a passport or birth certificate. While the bill says Real IDs, which have enhanced security standards, could be used if they indicate whether the applicant is a US citizen, these IDs ordinarily do not include that information, and lawful residents who are not citizens and ineligible to vote can still get Real IDs.Read the full storySpeaker muscles through Trump budget frameworkThe House Republican speaker, Mike Johnson, muscled through a multitrillion-dollar budget framework that paves the way for Donald Trump’s “big, beautiful bill”, a day after a rightwing rebellion threatened to sink it.The resolution passed in a 216-214 vote, with just two Republicans – fiscal conservatives Thomas Massie of Kentucky and Victoria Spartz of Indiana – joining all Democrats in opposition.Read the full storyWhat else happened today:

    More than 600 international students and recent graduates in the US have had their visas revoked or their legal status changed by the state department, according to data aggregated from around the country.

    Almost $4m in federal funding has been stripped from an Ivy League university’s prestigious climate research department because the Trump administration has determined it exposed students and other young people to “climate anxiety”.
    Catching up? Here’s what happened on 9 April. More

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    After losing homes and businesses, LA wildfire victims face a hurdle to rebuilding: Trump’s tariffs

    Cory Singer, co-owner of the homebuilding firm Dolan Design & Build, raced to start construction as quickly as possible in the wake of the Los Angeles wildfires. He was determined to stay ahead of the demand surge he saw coming and eager to help his clients begin to rebuild their lives.The firm broke ground in the Pacific Palisades on Saturday – one of the first companies to do so.But by that time, Singer had a new crisis to contend with: tariffs.Singer, whose firm is currently working on 10 homes in the Palisades, is in talks with clients to place shipping containers on their burned lots and store construction materials there, allowing him to order and stockpile materials in bulk before tariff price increases hit the market.“I’m definitely nervous,” he said.The Trump administration announced, walked back, and continually modified tariff policies in recent weeks, throwing the global stock market into chaos. The tariffs are widely expected to substantially increase construction costs in California and across the country.Singer is already dealing with tariff-related price hikes. One of his tile vendors placed a tariff surcharge on an order on 2 April, the same day the Trump administration announced sweeping tariffs, even though the materials had already been imported. Singer is especially worried about materials like plumbing, tiles and fixtures, which are often imported from China, and he is advising clients to factor in a 10% contingency to their budgets in anticipation of the costs.“If you don’t spend it, great,” he said, “but at least mentally prepare.”Three months after the worst wildfires in Los Angeles’s recent history flattened miles of city blocks and killed 30 people, signs of life are emerging. Insurance payouts have begun arriving. Contractors have plastered streets in Altadena and the Palisades with flyers and signs advertising their services. The Army Corps of Engineers is slowly clearing and flattening lots, replacing the charred and toxic mess of cars, washing machines and chimneys with the blank canvases of empty lots.View image in fullscreenBut homeowners, contractors, architects and developers across fire-ravaged Los Angeles are girding themselves for the tariffs. For homeowners seeking to rebuild, the tariffs add a new layer of stress to the uncertainties of navigating insurance, mortgages, short-term housing and piecing together plans for the future.The Trump administration is currently levying a 10% tariff on most countries, a 25% tariff on steel, aluminum and cars and car parts, and a massive 125% tariff on Chinese goods. The administration on Wednesday retreated on further planned global hikes after news of the tariffs prompted trillions in stock market losses worldwide, but Angelenos remain uncertain about what this means for their homes and plans.In Altadena, a middle-class neighborhood with fewer resources than the wealthy Palisades, the strain is especially acute. Homeowners worry tariffs will hinder their ability to afford rebuilding and exacerbate already widespread issues with underinsurance.“It’s really scary,” said Ken Yapkowitz, a longtime Altadena resident who lost his home and two rental income properties in the Eaton fire.Yapkowitz is waiting to see what his final insurance payouts will be and starting to map out how to rebuild his properties. He had already been factoring in a 25% bump in materials costs before the tariffs were announced, he said, and figured there would be a surge in demand for materials and labor. He expects tariffs to add substantial costs, and wonders if he will be able to rebuild on his lots as planned.Jose Flores, owner of JV Builders & Development, a small business in Pasadena, said many of his Altadena clients want to rebuild. But he worries that tariffs, paired with a painfully slow permitting process and other skyrocketing costs, will cause them to change their minds. He has three clients in the process of drawing up plans with architects, but many others have called him for estimates only to disappear.“By the time people are ready to start construction, I believe the prices are going to be higher,” he said. Flores has noticed the prices of lumber, copper and roofing tick up in recent months. But he can’t afford to stockpile materials, he said, and has no place to store them even if he could. He has no choice but to wait and see what happens.“I think that’s the case for most of us contractors in the area,” Flores said.Following the tariffs’ announcement, the California governor, Gavin Newsom, asked his administration to pursue independent trade relationships with other countries and to explore ways to protect access to construction materials in the wake of the California wildfires. But he did not specify what measures the state could deploy to do that.Flores, the contractor, said he doubted that the governor’s office could actually rein in prices.Newsom’s office did not respond to a request for comment.‘We just don’t know right now’Some residents and business owners are already seeing the tariffs affect wildfire response. Brett Taylor, an Altadena resident who owns a local window and door supplier and who lost his home in the Eaton fire, said his suppliers mostly manufacture domestically, but that many of them source parts from abroad. In late March, he reached out to approximately 10 window vendors to ask whether they would be open to providing package discounts to fire victims. Almost all of them said yes.But before the deals could be finalized, the administration announced tariffs. At least one of Taylor’s vendors walked back their commitment, citing price uncertainty, and Taylor anticipates others will do the same in coming days.View image in fullscreenOthers are tapping personal connections and devising makeshift plans to try to defray costs. James Peddie, an Altadena realtor who lost his home, has been helping develop plans for a group of homeowners hoping to rebuild collectively. He knows from his years in construction that a substantial portion of southern California’s lumber is imported from Canada, and when tariffs were announced, he understood that meant increased costs.Peddie went to high school in Montana, and has friends in the lumber industry there. He also knows a builder who personally went to Oregon to source lumber when prices soared during the rebuilding of Paradise, California, after the devastating 2018 Camp fire.So he called up his high school friends with a question: can you help me source lumber for LA?They were eager to help. They promised to keep their commissions low and to keep him updated on price fluctuations. “They’re people I can trust,” he said. “We can probably get the lumber for a really good deal.”This shift – from purchasing overseas to domestically – is exactly what the administration hopes the tariffs will prompt.But with the rebuilding process still in its earliest phases, and plans and permits far from finalized and approved, it felt premature to put a deposit down and commit to the lumber, Peddie said. Doing so would mean needing to find and pay for long-term storage, as well as betting that the cost of lumber was only going to increase.“Where is it going to be stored? Is it going to be more expensive to ship it in?” he said. “We just don’t know right now.”He estimated it would be seven months before he would be ready to order. It’s anyone’s guess what the tariff landscape – and market – would look like by then. More

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    White House may seek legally binding control over Columbia through consent decree – report

    The Trump administration is considering placing Columbia University under a consent decree, according to a report by the Wall Street Journal, a dramatic escalation in the federal government’s crackdown on the Ivy League institution.The university has already accepted a series of changes demanded by the administration as a pre-condition for restoring $400m in federal grants and contracts that the government suspended last month over allegations that the school failed to protect students from antisemitism on campus.A consent decree – a binding agreement approved by a federal judge – would be an extraordinary move by the Trump administration, which has threatened government funding as a way to force colleges and universities to comply with Donald Trump’s political objectives on a range of issues from campus protests to transgender women in sports and diversity and inclusion initiatives.As a party to the consent decree, Columbia would have to agree to enter it – and the Journal report states that it is unclear whether such a plan has been discussed by the university board.In a statement to the Guardian, the university did not directly address the report. “The University remains in active dialogue with the Federal Government to restore its critical research funding,” a spokesperson said.skip past newsletter promotionafter newsletter promotionAccording to the Journal, the proposal comes from the administration’s antisemitism taskforce, composed in part of justice department lawyers, who have reportedly expressed skepticism that Columbia was acting in “good faith”. If Columbia resists, the justice department would need to present its case for the agreement in court, a process that could drag on for years with the university risking its federal funding in the interim.Republicans and the Trump administration have sought to make an example of Columbia University, which was at the center of a student protest movement over Israel’s war in Gaza that broke out on campuses across the country. Last month, federal immigration authorities arrested Mahmoud Khalil, a Columbia graduate and prominent Palestinian activist who participated in campus protests. He remains in detention.During a cabinet meeting on Thursday, Trump pressed his education secretary, Linda McMahon, to elaborate on the department’s efforts to withhold federal funds from universities that were “not behaving”.“You’re holding back from $400 Columbia?” he asked McMahon. She nodded and named other schools, noting that the administration had frozen nearly $1bn in funding from Cornell.“We’re getting calls from the presidents of universities who really do want to come in and sit down and come in and sit down and have discussions,” she said. “We’re investigating them but in the meantime we’re holding back the grant fund money.” More

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    US stocks fall again after rally following Trump’s shock retreat on tariffs

    US stocks fell again on Thursday after a historic rally following Donald Trump’s shock retreat on Wednesday on the hefty tariffs he had just imposed on dozens of countries.The falls came as the president blamed “transition problems” for the market reaction and the sell-off deepened after a White House clarification noted that total tariffs on China had been raised by 145% since Trump took office.Speaking at the White House, Trump said: “We think we’re in very good shape. We think we’re doing very well. Again there will be a transition cost, transition problems, but in the end it’s going to be a beautiful thing.”The sell-off comes as Democrats continue to react with anger over the sudden retreat that rattled markets, while Republicans praised Trump’s “art of the deal” in action, referencing Trump’s 1987 book.By the end of Thursday, the Dow was down 2.5% after soaring on Wednesday afternoon. The Nasdaq Composite was down more than 4%, after posting its biggest gain in more than two decades on Wednesday, and the S&P 500 down 3.4%.The market seems to be in a state of fatigue after a rollercoaster week. Stocks were even unresponsive to news on Thursday morning that the European Union announced it will suspend 25% retaliatory tariffs against US imports and new data showed inflation in the US cooled to 2.4% in March – both would typically be cause for optimism on Wall Street.On CNN, former US treasury secretary Janet Yellen called Trump’s economic policies the “worst self-inflicted wound” an administration had ever imposed on a “well-functioning economy”.Trump said in an abrupt announcement on Wednesday that he would be implementing a 90-day pause on his tariff plan, and that goods entering the US from most countries would now face a 10% blanket tariff until July, except for Chinese exports, which he said would face tariffs totaling 145% effective immediately – 125% in “reciprocal” tariffs plus 20% already imposed for China’s alleged role in the fentanyl crisis.Republican lawmakers praised the decision to pause the tariffs, with the House speaker, Mike Johnson, stating on social media: “Behold the ‘Art of the Deal.’ President Trump has created leverage, brought MANY countries to the table, and will deliver for American workers, American manufacturers, and America’s future!”Before the pause was announced, a small but growing number of Republican lawmakers and Trump supporters in the business world expressed concerns about the risks of the president’s tariff policy.By Wednesday afternoon, many were praising Trump for the rollback as part of a purported strategy.Bill Ackman, a billionaire hedge fund manager and Trump supporter who advocated for Trump to pause his trade war over the weekend, reacted to the announcement saying that “this was brilliantly executed by @realDonaldTrump. Textbook, Art of the Deal.”The benefit of Trump’s approach, Ackman claimed, “is that we now understand who are our preferred trading partners, and who the problems are. China has shown themselves to be a bad actor. Our counterparties also have a taste of what life is like if they don’t take down their trade barriers. This is the perfect set-up for trade negotiations over the next 90 days.”But some industry leaders criticized the administration’s back-and-forth and tariff decisions.On Thursday, Amazon’s CEO, Andy Jassy, said the company was still waiting to see the impact of the tariffs but warned third-party sellers may “pass that cost on” to consumers.“The effective tariff rate is actually HIGHER with the pause than it was as announced on April 2, due to the tariffs on China,” Diane Swonk, the chief economist of the professional services firm KPMG, wrote on social media. “There will be some diversion through connector countries. However, the effective tariff rate now peaks at 30.5% during the pause. That is worse than our worst case scenarios.”skip past newsletter promotionafter newsletter promotionWhile Republicans and White House officials praised Trump’s decisions, Democratic lawmakers such as Senator Chuck Schumer pushed back. Schumer told his supporters that “this chaos is all a game to Donald Trump”.“He thinks he’s playing Red Light, Green Light with the economy,” Schumer said. “But it is very real for American families.”Some Democrats have made accusations of possible market manipulation.“These constant gyrations in policy provide dangerous opportunities for insider trading,” Senator Adam Schiff said. “Who in the administration knew about Trump’s latest tariff flip-flop ahead of time? Did anyone buy or sell stocks, and profit at the public’s expense? I’m writing to the White House – the public has a right to know.”The New York representative Alexandria Ocasio-Cortez echoed similar concerns, urging any member of Congress who purchased stocks over the last two days to disclose that.“I’ve been hearing some interesting chatter on the floor,” she said. “Disclosure deadline is May 15th. We’re about to learn a few things. It’s time to ban insider trading in Congress.”The Democratic House whip, Katherine Clark, wrote: “Two hours before announcing his tariff pause, Trump told his paid Truth Social subscribers it was ‘a great time to buy’ on the stock market. Corruption is the name of their game.”The Nevada representative Steven Horsford questioned the US trade representative, Jamieson Greer, asking the representative during a committee hearing whether the climbdown was market manipulation.“How is this not market manipulation?” Horsford asked, to which Greer responded: “No.”“If it was always a plan, how is this not market manipulation?” Horsford asked again.“Tariffs are a tool, they can be used in the appropriate way to protect US jobs and small businesses, but that’s not what this does,” Horsford said. “So if it’s not market manipulation, what is it? Who’s benefiting? What billionaire just got richer?” More