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      Here’s one key thing you should know about Trump’s shock to the world economy: it could work | James Meadway

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      It’s less than a week since Donald Trump’s sensational announcement that he was unilaterally ending the world’s trading system with the imposition of a 10% minimum tariff for trading with the US – and a very much higher rate for those countries unfortunate enough to have the US as a major export partner. Long-term allies such as Japan and South Korea have been hammered with tariffs of around 25%, while export-dependent poorer countries such as Vietnam, which sells about a third of its exports to the US, have been hit with tariffs in excess of 45%. A further round of global debt crises is possible as heavily indebted countries face the sudden loss of export earnings.Global stock markets have tumbled as panicked investors dump shares, and political condemnation has been near-universal. China has already retaliated with 34% tariffs, threatening an escalating trade war. Right now, it looks and feels like disastrous overreach by a uniquely erratic administration at the behest of a president with a terrifyingly limited grasp of how the modern economy works.Trump has talked about imposing tariffs on the world since he first rose to prominence in the 1980s, when his target was Japan. In a political career notable for its jack-knifes in policy and direction, tariffs – “the most beautiful word in the dictionary” – have been a constant. But this is about far more than his long-cherished whims. However inconsistent or even confused Trump may sometimes appear to be, those around him have a clear-eyed view of what they want to achieve.His Treasury secretary, hedgefund billionaire Scott Bessent, has spoken of a “global economic reordering” that he intends to shape to the benefit of the US’s elite. Trump’s new chair of the Council of Economic Advisers, Stephen Miran, wrote a lengthy paper, A User’s Guide to Restructuring the Global Trading System, shortly before his appointment. The latter is particularly ambitious – detailing how the US should use not only tariffs but also the threat of withdrawing its security support to compel its friends and allies to accept cuts in payments due from the Federal Reserve on their US Treasury bills. This would be a potentially massive loss to them, akin, in reality, to a US debt default. But it is tariffs that are the cutting edge of the plan – leveraging the US’s power as the world’s largest consumer and greatest debtor to compel other countries into a negotiation on terms.After decades winning in an international trading game it wrote and refereed the rules for, the US is now facing serious competition – primarily from China, but with Europe as an expensive irritant. The response of this administration is to kick over the table, and demand everyone starts again. What it ultimately wants is a cheaper dollar to revive US manufacturing and Chinese competition held off, all the while keeping the dollar as the world’s reserve currency. And the rest of the world will pay the price.There are precedents. In October 1979, Paul Volcker, newly appointed as chair of the Federal Reserve, drove up interest rates to a remarkable 13% in a bid to tackle inflation, later raising them to 17%. Soon the US was in recession. Millions lost their jobs over the next two years, notably in manufacturing, where soaring interest rates had driven up the value of the dollar, making US exports less affordable on the world market. After a light easing of interest rate hell by the Fed, Volcker applied a second dose of the medicine, driving interest rates up to 19% and forcing the economy back into a double-dip recession. Unemployment peaked at around 10% in late 1982.View image in fullscreenBut by mid-1983, inflation had come down to 2.5%. For the rest of the 1980s, the US economy boomed. The “Volcker shock” appeared to have worked. Volcker is today a folk hero among central bankers: Ben Bernanke, chair of the Federal Reserve during the 2008 crisis, praised Volcker’s “independence” and willingness to brazen out the political storm.More decisive than lower inflation, however, was the reshaping of the US economy Volcker’s interest-rate shock accelerated: with manufacturing in freefall, investment flooded into finance and property, firing up what became the great credit bubble of the 1990s and 2000s. The world economy was reordered around a US that acted as a giant sink for its output – swallowing exports from the rest of the world on seemingly limitless borrowing. China’s extraordinary boom was the flipside of US debt and deindustrialisation. The Volcker shock, more than any other single action, created the globalised world system that Trump is now bent on destroying.Few would have bet on Volcker’s world-shaping capacity at the time. The stock market response to the shock was immediate and unanimous. US shares plunged by a record 8% in the two days after his announcement. The S&P 500 lost 27% of its value before August 1982 – two years of grinding decline. Manufacturers and unions hated it, understandably: they were on the wrong side of an epochal reconfiguration of US capitalism. But they were not the only losers: rising interest rates in the US meant less developed countries had to spend more on servicing debts, just as recession squeezed their major export markets. The result was the so-called “third world” debt crisis, as heavily indebted countries across the global south plunged into spirals of economic decline and soaring indebtedness.Over the weekend, Bessent and commerce secretary Howard Lutnick were doing the media rounds, insisting that there would be no climbdown on the tariffs. Trump is not for turning on what is clearly for him a personal crusade. Already, countries such as Vietnam are promising to cut all their tariffs on US goods – a clear and brutal demonstration of the US’s continuing economic power. The administration has claimed 50 other countries have also asked to open negotiations. By the end of the week, expect Trump to be triumphantly announcing more such concessions from economies in the global south. His real target – China – will be a far tougher nut to crack, if it breaks at all.Perhaps the rolling market chaos will become too much. Perhaps the administration will blink first. There is no guarantee this extraordinary gamble will work, not even for those in the clique around Trump. But it would be a mistake to assume it cannot work – and however the pieces now land, they will not return to their old places.

      James Meadway is the host of the podcast Macrodose More

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      Deported over a speeding ticket? Dozens of US students’ visas abruptly revoked

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      Lisa was eating takeout at a friend’s place when the email from her university landed. She clicked into her inbox and skimmed the message:“ISS [International Student Services] is writing to inform you that your SEVIS record was terminated …”The wording felt unfamiliar. She read it again, but it still sounded like a scam – absurd and unreal.Lisa is an international student at the University of Wisconsin–Madison, just one month away from graduation. She asked to use a pseudonym due to concerns about retaliation and an ongoing legal case.Before going to bed, she found someone posted a similar notice on social media. It was through these posts that Lisa understood what the email had actually meant: with her Student and Exchange Visitor Information System record terminated, she was now considered out of status in the US. Staying could mean violating immigration laws.The Department of Homeland Security maintains the Sevis database that tracks international students and scholars on F, M and J visas. Once a Sevis record is terminated, a student’s legal status becomes immediately invalid. They must either leave the US within the grace period, typically 15 days, or take steps to restore their status. Otherwise, they risk deportation and future visa restrictions.She dug through comment sections. Joined group chats. Searched for patterns. One emerged: most of the affected students had been fingerprinted. Some had been cited for non-criminal offenses, but the messages they received said they had criminal records.That’s when she remembered: a year ago, she was driving home when she got two speeding tickets: one for speeding and another for failing to stop. She hadn’t seen the police car behind her until it was too late. To get the charges dismissed, she showed up in court, where she was fingerprinted.Lisa is one of several students across states who found their legal status revoked by the US government on 4 April, without prior notice or clear explanation. University statements show that at least 39 students have been affected, including UC Berkeley, UCLA, UC San Diego, Stanford, Ohio State, the University of Tennessee, the University of Kentucky, Minnesota State University and the University of Oregon.An online self-reported data sheet created by affected students suggests the issue may be more widespread. Students from 50 universities reported their visas were canceled around 4 April, with many noting that they had prior records, some limited to citations or non-criminal offenses.View image in fullscreenThis secret wave of revocation came a few days after the US secretary of state, Marco Rubio, announced the revocation of 300 or more student visas. “We do it every day. Every time I find one of these lunatics, I take away their visas,” he said at a news conference on 27 March, referring to students he described as national security threats.Lisa’s university had included a screenshot of her Sevis record in the message. Termination was logged on 4 April by a system administrator, with a note: “Individual identified in criminal records check and/or has had their VISA revoked.”Shenqi Cai, a California immigration attorney and managing attorney at Lashine Law, said she got the first call from a student on 3 April. “At the time, we thought it was a one-off. It seemed strange.”But by Friday, more cases kept coming in. She contacted designated school officials at several partner universities and confirmed that the terminations were visible in the Sevis system.Cai said this round of Sevis terminations appeared to be unprecedented. “Students weren’t given any chance to explain their situation. As long as the system flagged them, what we believe is a kind of criminal screening trigger, they were terminated under one broad directive.”Based on the information collected so far, Cai said about 90% of the affected students had been fingerprinted. But she explained that the criteria used to flag students can vary by state. “Each state defines these triggers differently. The thresholds are inconsistent. A student may be arrested in one state, but that doesn’t mean they’ll be convicted, because the power to decide guilt or innocence lies with the judge.”David, a Chinese student who completed his undergraduate degree, was immediately unable to continue working. He requested a pseudonym due to fears of retaliation and an ongoing legal case.In 2024, David was reported to police after a verbal argument with his partner. When officers arrived, they were still arguing, but there was no physical contact, he said. Because of a language barrier, his partner couldn’t clearly explain what had happened. David was detained overnight and later ordered to appear in court.“My partner wrote a statement to the prosecutor explaining it wasn’t domestic violence,” he said. The charge was eventually dropped. Court records show the case was dismissed with prejudice, and the judge ordered the arrest record and biometric data to be destroyed.Three years later, David received a Sevis termination notice.Unlike enrolled F-1 students, David is working under Optional Practical Training, a work authorization linked to the Sevis system. Once a Sevis record is terminated, that authorization ends and is nearly impossible to recover.David was nearing the end of his first year of employment when he got the notice on Friday. He scheduled a lunch meeting with his manager, who said the company would try to help him relocate to Canada. But because the termination took effect immediately, he was subjected to the 15-day departure rule.“I told my family, and they felt just as powerless,” he said. “But we don’t come from wealth, and there’s not a lot they can do.”Bill is facing the same dilemma. He graduated in December 2024 and is currently job-hunting. He asked not to use his real name due to a pending case.In early 2025, Bill hit another car while making a turn. At the time, his driver’s license had just expired. Police cited him for driving with an expired license. After renewing it, he followed the instructions and appeared in court.skip past newsletter promotionafter newsletter promotion“I went with a temporary license. The court staff were friendly,” he said. “One even joked, ‘This is no big deal, handsome,’ while taking my fingerprints and photos. It felt like a scene out of a movie.”His initial appearance only involved ID verification. When he asked if the hearing could be held that day, a staff member told him it was scheduled for May and suggested he come back then.“I thought it was fine. My license was updated, I just had to show up again.” But on 3 April, he suddenly received a notice from the school that his Sevis record had been terminated.Now, Bill has no idea what to do. Legally, he should leave the country immediately, but his case is still open and he’s required to appear in court in May. He doesn’t know whether showing up would put him at risk of detention.On 4 April, he met with his university’s international office. Staff there were willing to help, he said, but had few tools. They asked him to write a personal statement, which they promised to pass along to university leadership. The only formal support offered was a referral to a discounted lawyer – $150 an hour.View image in fullscreen“The dust of history falls on me, and it becomes a mountain. That’s all there is to it,” he said.By Sunday evening, the panic had spread. Three hundred students joined a Zoom info session hosted by Brad Banias, a federal court immigration litigator and former justice department trial attorney. Questions poured into the chat box: “Should we leave our apartments right now in case ICE shows up?” “Will an unpaid parking ticket be a problem?”Banias called the terminations a political move, not a legal one. “It makes me angry to see 19-year-olds just trying to study, and suddenly a parking ticket they didn’t even know about shows up on a criminal background check,” he said. “Don’t let them convince you it’s reasonable to leave the country over a parking ticket.”For Lisa, the future was just starting to take shape. She is about to graduate in one month, with a job offer and grad school acceptance. But now, she said she wasn’t even sure if she should go to class on Monday.Back in April 2024, she was pulled over in Madison for speeding. She hadn’t noticed the patrol car behind her right away, and by the time she stopped, two officers approached. One told her not to worry – it was her first offense, and all she needed to do was pay the fine. But the other issued two citations: one for speeding, the other for failing to stop.They told her it was just a miscommunication, something she could clear up in court.But that never really happened.“My first court date was just for ID,” she said. “They fingerprinted me, took a photo, measured my height. The judge barely said anything. No hearing, just a new court date.”She asked if the case could be resolved sooner and was told to schedule an online meeting. She did. During that meeting, the case was dropped. No record. They asked if she accepted. She said yes.Everything after that went smoothly: her work visa was approved, the company background checks cleared, and she had no trouble leaving and re-entering the country. She thought it was behind her.Then the email came.“I don’t know if I’m still allowed to graduate,” she said. “If I don’t get my degree, does the grad school still take me? Does the company push back the offer? Worst case, I don’t graduate. I go home and start college again. Four more years. And then what?” More

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      The trade deficit isn’t an emergency – it’s a sign of America’s strength

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      When U.S. President Donald Trump imposed sweeping new tariffs on imported goods on April 2, 2025 – upending global trade and sending markets into a tailspin – he presented the move as a response to a crisis. In an executive order released the same day, the White House said the move was necessary to address “the national emergency posed by the large and persistent trade deficit.”

      A trade deficit – when a country imports more than it exports – is often viewed as a problem. And yes, the U.S. trade deficit is both large and persistent. Yet, as an economist who has taught international finance at Boston University, the University of Chicago and Harvard, I maintain that far from a national emergency, this persistent deficit is actually a sign of America’s financial and technological dominance.

      The trade deficit is the flip side of an investment magnet

      A trade deficit sounds bad, but it is neither good nor bad.

      It doesn’t mean the U.S. is losing money. It simply means foreigners are sending the U.S. more goods than the U.S. is sending them. America is getting more cheap goods, and in return it is giving foreigners financial assets: dollars issued by the Federal Reserve, bonds from the U.S. government and American corporations, and stocks in newly created firms.

      That is, a trade deficit can only arise if foreigners invest more in the U.S. than Americans invest abroad. In other words, a country can only have a trade deficit if it also has an equally sized investment surplus. The U.S. is able to sustain a large trade deficit because so many foreigners are eager to invest here.

      Why? One major reason is the safety of the U.S. dollar. Around the world, from large corporations to ordinary households, the dollar is used for saving, trading and settling debts. As the world economy grows, so does foreigners’ demand for dollars and dollar-denominated assets, from cash to Treasury bills and corporate bonds.

      Because the dollar is so attractive, the Federal Reserve gets to mint extra cash for use abroad, and the U.S. government and American employers and families can borrow money at lower interest rates. Foreigners eagerly buy these U.S. financial assets, which enables Americans to consume and invest more than they ordinarily could. In return for our financial assets, we buy more German machines, Scotch whiskey, Chinese smartphones, Mexican steel and so on.

      Blaming foreigners for the trade deficit, therefore, is like blaming the bank for charging a low interest rate. We have a trade deficit because foreigners willingly charge us low interest rates – and we choose to spend that credit.

      US entrepreneurship attracts global capital – and fuels the deficit

      Another reason for foreigners’ steady demand for U.S. assets is American technological dominance: When aspiring entrepreneurs from around the world start new companies, they often decide to do so in Silicon Valley. Foreigners want to buy stocks and bonds in these new companies, again adding to the U.S. investment surplus.

      This strong demand for U.S. assets also explains why Trump’s last trade war in 2018 did little to close the trade deficit: Tariffs, by themselves, do nothing to reduce foreigners’ demand for U.S. dollars, stocks and bonds. If the investment surplus doesn’t change, the trade deficit cannot change. Instead, the U.S. dollar just appreciates, so that imports get cheaper, undoing the effect of the tariff on the size of the trade deficit. This is basic economics: You can’t have an investment surplus and a trade surplus at the same time, which is why it’s silly to call for both.

      It’s worth noting that no other country in the world enjoys a similarly sized investment surplus. If a normal country with a normal currency tries to print more money or issues more debt, its currency depreciates until its investment account – and its trade balance – goes back to something close to zero. America’s financial and technological dominance allows it to escape this dynamic.

      That doesn’t mean all tariffs are bad or all trade is automatically good. But it does mean that the U.S. trade deficit, poorly named though it is, does not signify failure. It is, instead, the consequence – and the privilege – of outsized American global influence.

      The president’s frenzied attacks on the nation’s trade deficit show he’s misreading a sign of American economic strength as a weakness. If the president really wants to eliminate the trade deficit, his best option is to rein in the federal budget deficit, which would naturally reduce capital inflows by raising domestic savings.

      Rather than reviving U.S. manufacturing, Trump’s extreme tariffs and erratic foreign policy are likely to instead scare off foreign investors altogether and undercut the dollar’s global role. That would indeed shrink the trade deficit – but only by eroding the very pillars of the country’s economic dominance, at a steep cost to American firms and families. More

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      Why Donald Trump’s decision to slash USAID is hurting American soft power and making the world less safe

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      The Trump administration’s foreign policy has raised alarms. It seems to have shifted America away from its traditional Nato allies, favouring instead a closer relationship with Russia. There has also been talk of plans to control Greenland, the Panama Canal – possibly even Canada. This has caused sleepless nights for political leaders, especially in Europe.

      However, in the developing world, the biggest concern is the US government’s suspension of development aid. For people in these regions, access to clean water, seeds for crops and vaccines is a matter of life or death.

      The suspension is presently the subject of a battle in the US Supreme Court, but at the end of February, the administration said it planned to cut 90% of all overseas aid contracts. With a single stroke of President Trump’s Sharpie pen, this has struck out US$60 billion (£39 billion) of US aid assistance, globally. Internal projections by the US Agency for International Development (USAID), published by the New York Times at the beginning of March, forecast dire consequences, including a massive increase in diseases such as malaria and polio as well as a rise in cases of malnutrition of up to a million children.

      USAID was founded in 1961 under John F. Kennedy’s administration. It operated with an annual budget of about US$58 billion – orders of magnitude larger than any other country’s development portfolio. It maintains a staff of diplomats, subject experts, and also employs local nationals around the world. It is a critical component of US soft power and works in close proximity to the country’s national security interests.

      USAID’s absence will be felt around the world. Perhaps the most consequential effect lies with the freezing of American food aid. Experts have already predicted that without this lifeline, Sudan could face a famine to compound the effects of the civil war that has raged there. The consequences of this will be very public, producing heartbreaking headlines and images.

      But there is another side to this that the Trump administration seems to be overlooking. USAID is one of the largest single customers of American farm products that constitute the country’s food aid packages – 1 million metric tonnes in 2024 alone.

      One of the most misunderstood concepts of foreign aid is the fact that large portions of its budget are spent domestically. A report may say that billions of dollars of food aid were given by the US to Sudan – but much of that represents payments to American farmers who are growing the food that is then donated to starving people – not just in Sudan, either.

      America’s farmers already exist on very tight margins, so an unexpected loss in revenue such as this, is likely to be a serious blow to them as well. It’s just one example of the effect this decision will have both at home and abroad.

      Pulling away the safety net

      Without USAID the world is less safe. There is a large body of research on how development assistance is a critical component of an effective national security strategy. In 2018, the then secretary of defense, Jim Mattis, who was appointed by Trump, said in an interview that his message to the world is: “Work with our diplomats because you do not want to fight the Department of Defense.”

      To illustrate Mattis’s point, consider the academic work done on the emergence of climate-driven conflicts driven by water and food shortages. One crisis simulation I use in my classrooms puts students in the role of solving a kinetic (shooting) war over water rights in the Horn of Africa. This particular crisis, while used as a game to teach national security, could very easily become a reality. It’s the sort of thing USAID helps to prevent.

      I have had the fortune to serve my country in several capacities. Before I started my doctorate in intelligence and national security, I spent four years working for the US government, both as a development worker and in the diplomatic and defence sectors. While diplomacy, defence and development work might look very different on the surface, I can attest that they are quite similar – and very closely linked.

      Street vendors selling bread in Kabul, Afghanistan where cutting of USAid assistance will make people’s lives harder than they already are.
      EPA-EFE/Samiullah Popal

      They operate in very different spheres – but the goal is ultimately the same: to help partner nations enhance their own safety and prosperity. Without this help they may turn to adversaries such as Russia and China to provide assistance and security. These adversaries then have an opportunity to expand their influence around the world, which can include supporting dictatorships and predatory lending, such as seen in the Chinese belt and road initiative.

      Peacekeeping through soft power

      As a US peace corps volunteer, I called on USAID funding to help the community I was assigned to. In Akhaltsikhe, Georgia I taught English and coordinated youth development programmes.

      The Akhaltsikhe region is one of the poorest in the country – and the school was in a sorry state of affairs. With a USAID grant, we were able to renovate part of the school and create an English language learning centre, which still thrives today, 12 years later. I can say first-hand that this project had a big impact on the image of the US among the Georgian people in my community.

      It should go without saying that the US has a chequered past when it comes to some of its foreign policy interventions. But the country’s wealth and resources offer it the unique position to help grow and enhance western values in parts of the world that deserve the same freedom that developed countries in the west take for granted. In my opinion, that is money well spent.

      Whatever value one might place on the US global footprint does not erase the truth of its existence. America is called upon to uphold democracy, to lift people out of poverty, and to respond to crises no matter where they are. Donald Trump, Elon Musk and his Doge staffers should have paid greater heed to USAID’s motto: “For the American people.” More

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      ‘Trump and Musk are setting the example’: how companies are becoming emboldened to be more anti-union

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      Donald Trump’s aggressive wave of anti-union actions is already spurring some US employers to take a more hostile stance toward unions, as labor leaders voice fears that the president’s moves will embolden more and more companies to fight harder against unions and slow their recent progress.Indeed, some worker advocates worry that unions will be walloped during Trump’s second term the way they were under Ronald Reagan after he crushed the 1981 air traffic controllers’ strike and inspired many corporations to fight harder against unions. As Trump and Elon Musk carry out their anti-union agenda in Washington DC, Utah passed a law that prohibits collective bargaining by public sector workers, and a Michigan company refused to move forward with a union election.“If history is any indicator on this – and I think it is – when you see a president’s administration basically declaring war on unions, that’s going to certainly embolden private sector employers,” said Joseph McCartin, a labor historian at Georgetown University and author of the definitive book about the disastrous 1981 strike by the Professional Air Traffic Controllers Organization (Patco).Labor experts point to several Trump administration actions that show a huge hostility toward unions, including Trump’s order to end collective bargaining by 50,000 airport screeners and then a far-reaching order to rip up union contracts and prohibit bargaining for over a million federal employees at more than a dozen agencies, including the state department, the treasury and health and human services. Trump and Musk have also fired tens of thousands of federal workers while disregarding protections in their union contracts. Moreover, Trump fired Gwynne Wilcox, who was the National Labor Relations Board’s (NLRB) acting chair. Wilcox insists her dismissal was illegal, but on 28 March a federal appeals court declined to reinstate her, at least for now.“What we’re seeing is Patco on steroids,” Sara Nelson, the president of the Association of Flight Attendants, said in an interview. “This is the president saying even the idea of having a union contract and having something in black and white to protect workers and having collective bargaining – he’s saying none of this should exist.”Trump’s anti-union and anti-worker actions have been piling up. He rescinded the $17.75-an-hour minimum wage that federal contractors must pay their workers. He issued an order to kill the Federal Mediation and Conciliation Service, which seeks to settle potentially disastrous labor disputes. He nominated a management-side lawyer, Crystal Carey, to be the NLRB’s general counsel; her law firm represents anti-union employers, including Amazon, SpaceX and Tesla. Even the Teamsters’ president, Sean O’Brien, who has sought good relations with Trump, condemned that appointment, saying: “Carey has spent her entire professional career backing Big Business to the detriment of working people … [S]he wants to decimate labor unions.” (O’Brien did praise Trump’s choice of labor secretary, Lori Chavez-DeRemer.)Beyond that, Trump has repeatedly insulted the nation’s 2 million federal workers, saying: “Many of them don’t work at all. Many of them never showed up to work.”Eric Blanc, a labor studies professor at Rutgers University, said these actions have “demonstrated that Trump’s rhetoric about being pro-worker and pro-union was just that: pure rhetoric. This is an administration that is pushing the limits on how far you can go to destroy the labor movement and people’s labor standards.”Blanc said Trump’s replacing of the pro-union Joe Biden as president, has “certainly emboldened the big corporations that were already stonewalling their unions: Starbucks, Amazon, REI, where we saw the most emblematic union successes of the past few years”.In February, Utah’s governor signed a law that prohibits unions representing teachers, firefighters, police officers and other government employees from bargaining for better pay and working conditions. In a move directly inspired by Trump’s actions, a Michigan amusement and water park refused to move forward with a union election, believing that the NLRB was paralyzed after Wilcox was fired, leaving it without a quorum.“Companies could definitely get more anti-union because Trump and Musk are setting the example,” said Thomas Kochan, a longtime professor of industrial relations at MIT. “They’re firing workers who are unionized. They’re ignoring their labor contracts.”Kochan said he fears the consequences for unions if the supreme court upholds the firing of federal workers despite their contract protections or upholds Trump’s dismissal of Wilcox, leaving the NLRB without a quorum. “Then I think we will see companies come out of the woodwork to be more anti-union because there’s so little risk,” Kochan said. “We’ll see companies like SpaceX and Tesla just ignore the law because there will be no consequences. That’s the big risk now.”In his high-profile role, taking a figurative chainsaw to federal agencies and firing tens of thousands of workers, the fiercely anti-union Musk could inspire corporate executives to follow in his anti-union footsteps. SpaceX is even seeking to have the NLRB declared unconstitutional. “Musk is sort of the praetorian guard of the anti-union movement,” McCartin said. “He’s the tip of the spear.”But Blanc said corporate executives might hesitate about following Musk. “He is extremely unpopular, and his policies are not popular,” Blanc said. “Corporate America is not blind to that, and they’ll think twice about unleashing a backlash like the one Musk has unleashed.”Labor experts said it could take a few years before many companies become visibly more hostile toward unions. That was the case after the Patco strike. It was not until two or three years after that strike that several prominent employers –International Paper, Greyhound and Phelps Dodge – showed a harder attitude toward unions. They broke their unions’ strikes by hiring large numbers of replacement workers – an unusual move at the time.That tougher behavior under former president Ronald Reagan sped the decline of private sector unions. Today, just 6% of private sector workers are in unions, while 32% of public sector workers are. Anti-union ideologues are increasingly targeting public sector unions, which often support Democrats.“Because almost half of the labor movement is now in the public sector, the assault that we’re seeing now is really focused on the public sector,” McCartin said. “That really threatens to break the spine of the labor movement.”The flight attendants’ Nelson said it’s imperative for the labor movement to stand up and stand together to resist Trump’s and Musk’s anti-union actions: “It’s on all of us to use the power we have to stop this before everything is broken and every safety net is stolen by the oligarchs,” including Musk. Nelson said the labor movement has very few options at this point except to mobilize for a general strike.

      This article was amended on 7 April 2025 to clarify the timing of an order to rip up union contracts and an appeals court declining to reinstate Gwynne Wilcox. More

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      Corporate America won’t stop Trump’s tariffs. Here’s why | Alex Bronzini-Vender

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      Few historical analogies exist for Donald Trump’s newly announced tariffs. The investment bank Evercore estimates that the so-called “liberation day” announcement has raised the weighted average US tariff to 29% – its highest rate since 1900. To call it a generational action would be an understatement; my grandmother was born in 1939.These tariffs, if they remain in place, will raise prices, eliminate jobs and shrink retirements. No one will pay for them more dearly than American workers. Yet a shock to capitalism inevitably raises the question of whether, and how, capitalists will respond. Faced with Trump’s tariffs, what will the US’s business class do?Some commentators have hoped that, once the effects of Trump’s economic misrule become apparent, executives will finally turn on the Maga movement. But the answer, as during Trump’s previous tariff scares, is likely to disappoint. The Chamber of Commerce, National Association of Manufacturers, and International Dairy Foods Association have each issued strongly worded statements against Trump’s trade action. Others are likely forthcoming. But those words are unlikely to become meaningful action, for it is simply not in the business lobby’s nature to fight the Republican party.Unlike much of the developed world, the US lacks a single, representative organization for big business. Barring extraordinary initiative by political actors, or moments of deep and protracted crisis, unified and cross-sectoral corporate lobbies rarely appear in American history. The National Association of Manufacturers and the Chamber of Commerce began as initiatives of presidents William McKinley and William Howard Taft, respectively; the Business Roundtable, founded through a merger of two union-busting business groups in 1972, stands as a rare business lobby organized by business itself.If these organizations have a difficult time coming together, they have an even harder time sticking together. The roundtable and the chamber experienced their greatest momentum during the economic turbulence of the 1970s: at last, their managers were able to unite the otherwise fractious American business community under the banner of fighting organized labor and its New-Dealer allies within the Democratic party. But by the middle of Ronald Reagan’s presidency, those enemies had been vanquished – and the chamber and roundtable hemorrhaged membership in turn.Business organizations never regained the command of American capitalism they had won in the late 70s and early 80s. The Chamber of Commerce has maintained stature only by becoming, essentially, an all-purposes lobbying firm. Its primary function is to receive contributions from industries attempting to obscure their hand in pushing politically unpopular causes: tobacco seeking to shield itself from liability, the auto industry seeking to relax safety standards, the health insurance sector seeking to stall healthcare reform, etc.Though the chamber and roundtable briefly stepped into more activist roles during the disruptions of the Tea Party, their success was, at best, mixed. At once, they found themselves dueling against the oil, gas and utilities sectors, each of whom fervently backed rightwing insurgents. By 2014, they had largely eliminated the Tea Party’s beachhead in Congress. Even so, they failed to repel the advance of Trump during the 2016 primaries; nor did they manage to sap the influence of the Freedom Caucus, today a king-making group among House Republicans.Though business organizations managed to significantly shape Trump’s 2017 Tax Cuts and Jobs Act, they notably failed to shape his administration’s 2018 trade war. Rather than mount a united front against Trump’s tariff regime, nearly 4,000 firms attempted to individually lobby the office of Robert Lighthizer for individual exemptions for their imports of interest. This, the political scientist Jack Zhang explains, had the ironic effect of overwhelming the United States trade representative’s office, and crowding out most lobbyists: few ultimately received exemptions, while the rest continued paying the cost of high tariffs.That period’s patterns are telling: American business, given the weakness of its coordinating institutions, is essentially incapable of coordinating significant challenges to the Republican party’s governance. A previous generation of corporate leadership might have met a shock of Wednesday’s magnitude with a coordinated response felt at all levels of American society – whether through lobbying efforts in Washington or advertisements in local newspapers. But American business is too disunited to mount similar campaigns today. “The pursuit of individual self-interests,” as Zhang noted in 2020, “left none to defend the public goods associated with a free and open market between the US and China.”That phenomenon is a persistent feature of the Trump era. The chamber’s boycott of campaign contributions to the Republican party after the January 6 insurrection lasted little more than two months. And the agricultural lobby, once a powerful pro-immigration voice on Capitol Hill, has all but abandoned its public advocacy for immigrants: organizing on the issue, where it exists, is done through quiet lobbying behind closed doors. If history is any guide, then, there will be no meaningful corporate break with the Republican party.“We are living through the nightmare edition of ‘Great Men Make History’,” wrote the leftwing theorist Mike Davis shortly before his death in 2022. “Unlike the high Cold war when politburos, parliaments, presidential cabinets and general staffs to some extent countervailed megalomania at the top, there are few safety switches between today’s maximum leaders and Armageddon.”Our moment, as Davis observed, is the apogee of a long-brewing structural crisis of American liberalism, where even the mechanisms that once aligned state policy with corporate interests have fundamentally broken down. Whether among executives, lobbyists or university trustees, an elite-led backlash to the Trump administration – on trade, immigration, the rule of law or anything else – is not forthcoming. Only an organized working class, then, can resist Trump.

      Alex Bronzini-Vender is a writer living in New York More

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      Bernie Sanders: law firms that cut deals with Trump administration ‘sell out their soul’

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      Law firms that cut deals with Donald Trump’s administration after the president issued executive orders targeting attorneys who challenge his priorities are demonstrating “absolute cowardice”, the independent US senator Bernie Sanders has said.“They’re zillion-dollar law firms, and money, money, money” is all that motivates them, the popular Vermont lawmaker who caucuses with Democrats said in a feature interview on the latest CBS News Sunday Morning. “So they’re going to sell out their souls to be able to make money here in Washington.”Sanders’ remarks provided a notable condemnation of law firms who had represented political rivals of Trump then chose the path of least resistance after he aimed orders that threatened to cripple them. The orders sought to revoke security clearances, ban attorneys from accessing federal buildings, and – if they do business with the government – to force the targeted firm’s clients to disclose existing relationships with them.Some of the US’s most prominent legal practices subsequently capitulated. Willkie, Farr and Gallagher; Milbank LLP; and Skadden, Arps, Slate, Meagher & Flom all reached deals with the White House meant to avoid Trump’s orders.In exchange, the firms would perform pro bono work for causes that are dear to them and Trump while also declining to engage in race-based hiring.Some firms, on the other hand, have sought to stand up to Trump. Perkins Coie got a court injunction blocking much of an executive order from Trump that targeted the firm. Hundreds of law firms and former judges have signed on to court briefs supporting Perkins Coie in its opposition to Trump.Meanwhile, after suing over Trump orders directed at them, Jenner & Block as well as WilmerHale were able to secure court mandates impeding most of his measures against them.Alums of the law firms which have yielded to Trump have voiced some of the strongest criticism for choosing that course of action.On Sunday, CBS asked Sanders what the cost was to the US when some of its most well-heeled institutions folded in that manner amid a standoff with Trump.skip past newsletter promotionafter newsletter promotion“It is indescribable,” Sanders said.Sanders on Sunday also contended that many of Trump’s maneuvers nearly three months into his second presidency had rendered the US into a “pseudo-democracy”. He singled out how Trump tasked Elon Musk, the world’s richest person, with slashing the size as well as funding of various federal government agencies and services.The multibillionaire owner of Tesla, SpaceX and X landed the role after spending more than $270m supporting Trump’s successful run for the White House in November.“Look, you get one vote, and Elon Musk can spend $270m to help elect Trump,” Sanders told CBS. “Does that sound like a democracy to you?” More

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      Being a librarian was already hard. Then came the Trump administration

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      For many librarians, the stakes of the job are high – they’re facing burnout, book bans, legislation pushed by rightwing groups, and providing essential resources in an effort to fill gaps in the US’s social safety net.Now, as Donald Trump’s administration rolls out their agenda, many librarians are describing his policies as “catastrophic” to accessing information and the libraries themselves – institutions considered fundamental to democracy.Rebecca Hass, the programming and outreach manager at the Anne Arundel county public library in Maryland, has seen the effects of Trump’s second term ripple in.“The impact [is] on many different community partners and customers that are represented in some of the executive orders,” said Hass. “We get everyone at the library. When people lose their jobs, they come to the library. When they’re not sure what’s going on, they come to the library.”Hass said the library received some pushback about LGBTQ+ programming, including protesters showing up to its trans Pride event. But the library is undeterred in efforts to meet community needs and supply resources, creating new resource pages on immigration and LGBTQ+ communities, and updating others. They have expanded partnerships, including with social workers in the library. Usage of the community pantry has increased.Much of this is work the library has always done, Hass said, adding: “But now it’s taken on urgency and additional responsibilities.”Emily Drabinski, an associate professor at the Queens College Graduate School of Library and Information Studies at the City University of New York, said that what is happening to librarians now mirrors what is happening to other workers.“You don’t get paid enough to meet your basic needs. Your autonomy at work is consistently under threat. People who think that they know better how to do your job are trying to get the power to push you out of your position,” she said.Some librarians described the impact of institutions capitulating to censorship on their work. A librarian in the deep south, who asked to remain anonymous in order to protect their safety, described tensions rising on their library board, and how the library is taking pre-emptive measures to make it challenging to find titles considered “controversial”.“I see all that being as a measure of: ‘If we fly under the radar, we’ll be safe,’” they said. “But it’s sad because who gets left behind – for staff members of color, [or] who are visibly queer, who are disabled, we don’t get to turn off that part of ourselves.”Meanwhile, Imani, an academic librarian in Texas who declined to give their full name for privacy concerns, is an active public library user, said “DEI removal” happened in her workplace in 2023. Now, they’re seeing increased scrutiny on how funds are spent, especially in regard to large databases.“It’s really important that people know that this isn’t new at all,” she said, adding that she knew a school librarian who retired several years ago due to fears of criminalization. “At this point, many librarians have done every single thing they can to save things.”Also, Imani noted, librarians are doing their work with “very little money, very little support [and] higher, higher demand”.Elon Musk’s unofficial “department of government efficiency” recently gutted the Institute of Museum and Library Services, which the American Library Association noted greatly affects the important services they offer, including high-speed internet access, summer reading programs, veterans’ telehealth spaces and more, with the most intense losses in rural communities.While the majority of public library funding comes from city and county taxes, according to EveryLibrary, the IMLS provides grants that support these critical services in every state.Marisa Kabas, the independent journalist who writes the The Handbasket, obtained a copy of a letter sent by IMLS’s acting director, Keith Sonderling, announcing that state library grantee funding would be terminated immediately. (Sonderling previously declared his intention to “restore focus on patriotism” to the IMLS, which many groups noted as an attack on freedom of expression.)The IMLS submitted a budget request of $280m for 2025.“That’s nothing in terms of the federal budget, yet it’s going to affect every single library in the country,” said Jessamyn West, who works in a rural, public library in Vermont in addition to working with the Flickr Foundation. “It’s going to make them scramble, it’s going to make them worry, and it’s going to make them have to make really difficult choices for the services that they give to their patrons.”In many cases, the money is already spent because of contracts libraries had with governments, West added.“We’re all pretty furious,” West said.Librarians are speaking out about what communities could lose, including internet access and workforce development in Kentucky, the Talking Book and Braille Center in New Jersey, digital hotspots in North Carolina, and much more outlined in reporting from Book Riot. As librarians grappled with losses that would directly affect their work, the IMLS Instagram account issued posts appearing to mock grantees.“It’s catastrophic,” Drabinski said, adding that IMLS funds significant library infrastructure, including ebook platforms and interlibrary loan systems. “Without those funds, many of those systems will grind to a halt. All of our work is about to become harder at the same time that the need for our resources and services will explode.”Drabinski continued: “What we want is for people to be able to read, and for people to have enough. The problems that we face as American workers are similar to yours, and we share a fight.” More