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    It was a milestone for progressive education in California. Then it unraveled

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    View image in fullscreenIt was celebrated at the time as a major milestone for progressive education. In 2021, California became the first state to make ethnic studies a graduation requirement, mandating all high schools teach the subject by fall 2025.The idea, championed by California’s governor, Gavin Newsom, was to bring modern concepts into the classroom. At its core, ethnic studies, an academic discipline born on California campuses during the civil rights movement, elevates the experiences of historically marginalized groups. Its materials push students to question their biases, reimagine power structures, and think critically about the enduring legacies of colonialism. In California high schools, courses would bring to the fore the experiences of Chicano, Black and Indigenous communities in the state by diving into issues such as gentrification, the impact of pesticides on farm worker communities and the legacies of Indian boarding schools. Many school districts enthusiastically jumped on board.The idea to make ethnic studies part of the curriculum always had its detractors. But it gained significant support after the racial justice protests of 2020. Today, however, ideas that rose to the vanguard of American culture after that period’s uprising have fallen dramatically out of political favor, and ethnic studies is now the center of an acrimonious battle over what constitutes antisemitism – and whether students should be learning about international conflicts, namely the fraught histories of Israel and Palestine – in courses meant to lift up the diverse experiences of Californians. The controversy has resulted in lawsuits and threats to ban certain concepts and materials entirely.In a dramatic heel turn, state legislators earlier this year proposed a bill that would have significantly restricted how the subject could be taught. While the effort faltered, Newsom has since withheld the funding needed for the new course requirement to go into effect by the fall deadline, potentially propelling the initiative toward anticlimactic collapse. In some cases, districts are reeling initiatives back of their own accord; last week San Francisco unified school district announced it would pause the development of its own ethnic studies curriculum following complaints from parents that the material was too progressive.The saga underscores how deeply politics have infiltrated schools, even in a liberal state like California. It also has illuminated a gaping chasm in worldviews that is playing out nationally: what one side views as inclusivity the other views as leftwing indoctrination, and neither side appears willing to compromise. In the crosshairs are American public schools.California is the birthplace of ethnic studies as a discipline.In the late 1960s, as student protests roiled much of the world, students of color at San Francisco State University launched the longest student strike in US history to protest what they viewed as Eurocentrism in education. Among their demands was the establishment of ethnic studies departments that would give voice to marginalized groups.View image in fullscreenThe field’s interdisciplinary philosophies would come to be embraced by universities nationwide, and ethnic studies departments were established at a host of college campuses, including in more conservative states. After the racial reckoning of 2020 that came out of the murder of George Floyd, ideas previously reserved for the halls of universities and the pages of academic books – such as postcolonial theory and intersectionality – entered the public conscience.While 24 states have incorporated some elements of ethnic studies into their K-12 curricula, California lawmakers stand alone in having mandated it as a graduation requirement. In some ways, the most diverse state in the nation, where 60% of the population are people of color, was a natural fit for the requirement. But in hindsight, it’s not clear whether lawmakers understood the radical nature of the concepts they legislated into public school curricula.The policy’s rollout has been rife with disagreements from the beginning, stemming in large part from a spirit of flexibility that has made for murky guidelines.The law required California high schools to have a course available by the fall of 2025 and stated that to graduate, members of the class of 2030 would need a one-semester ethnic studies course on their transcript. That course could take a number of forms, depending on the school’s structure, resources and priorities, explained Tricia Gallagher-Geurtsen, an ethnic studies lecturer at the University of San Diego. A school can write its own course based on the state’s model curriculum or use one that has been pre-approved by the University of California system. And while most ethnic studies classes are categorized as history or English courses, there is nothing to stop a school from designating a math course as its ethnic studies prerequisite. “It could be a statistics course that looks into measuring racial inequities,” Gallagher-Geurtsen said.Ultimately, legislators left the development of curricula up to individual schools and teachers who weren’t necessarily trained in ethnic studies, which is a discipline with strict theoretical parameters. This lack of clarity has resulted in experimentation, disagreement and, in some cases, heated animosity, on the ground.In 2019, before the subject was made mandatory, the state released its first draft of an ethnic studies model curriculum that teachers could voluntarily incorporate or adapt for local school board approval. The model text, which was created with input from an 18-member committee of hired academic experts from universities around California, focused on the four populations considered by ethnic studies experts to be the driving force of the discipline in the US: Black, Chicano and Latino, Asian American and Pacific Islander, and American Indian and Native American.View image in fullscreen“This is how ethnic studies categorizes itself,” explained Gallagher-Geurtsen. “[It] centers racialized groups of color first.”Different groups were upset about it for various reasons, but there was recurring protest over the model text’s representation of Israel as a colonial oppressor state: a characterization that academics in the field say is central to ethnic studies as a discipline. That drew protests from Jewish groups that criticized the material’s failure to address antisemitism. Rightwing advocacy organizations also accused the text of promoting a leftwing agenda grounded in critical race theory, objecting, for example, to its claim that the “war on drugs” was fundamentally racist.The curriculum was ultimately rejected by the California board of education, and a new committee was brought in to draft more politically palatable guidelines that were “free of bias”.When that happened, Ndindi Kitonga, an ethnic studies lecturer at California State University, Long Beach and founder of an alternative school in Los Angeles, grew concerned that the new panel lacked direction from experts trained in the academic discipline. She wanted to make sure that the guidelines sent to classrooms reflected topics that are fundamental to the academic field – such as resistance to oppression and solidarity across social movements – rather than the priorities of policymakers. On those points, the discipline cannot compromise, Kitonga and other ethnic studies scholars emphasized.So Kitonga, along with fellow academics and activists in the field, decided to make material of their own for teachers to use. Independent of the state, they designed sample ethnic studies lesson plans for teachers to access free of charge online. The lessons are organized into units themed around the four groups of focus, and primarily focus on teaching hyper-local histories. Students are encouraged to learn about how phenomena such as gentrification have unfolded in their own neighborhoods, for instance, and to visit local archives.But the materials also make connections between the experiences of marginalized groups in America and those of oppressed groups around the globe, including Palestinians.In a slide from a model lesson plan focused on contemporary Arab American identities and experiences, for instance, images showing the loss of land belonging to Indigenous groups in the US is pictured alongside images showing shrinking Palestinian territory in the century that followed the 1917 Balfour Declaration, through which Britain voiced support for the establishment of a Jewish state in the region. Students are invited to draw comparisons between the two histories.View image in fullscreenKitonga and her colleagues called the initiative the Liberated Ethnic Studies Model Curriculum Consortium – “liberated”, that is, from legislators’ interests.The response from teachers in the two dozen districts that have adopted curricula designed by the consortium has been positive, said Gallagher-Geurtsen, who helped found the consortium. “It affirms who students are and recognizes their experiences in a deeper way than any curriculum ever has,” she said. “Teachers have said it’s the most rewarding teaching they’ve ever done in their lives.”Research shows that teaching ethnic studies raises grades and test scores for students of all backgrounds across all subjects, increases graduation rates, and improves relations and understanding across races and ethnicities. And for Kitonga, the controversy distracts from those benefits.“That’s never talked about in the news,” she said.Instead, headlines have been drawn to accusations of antisemitism in ethnic studies classrooms.Across the state, groups of concerned parents have sued school districts, alleging that teachers have exposed students to antisemitic material and ideas in ethnic studies lessons that characterize Israel’s actions towards Palestine as an example of colonial oppression and genocide. While these accusations predated the Hamas attacks of 7 October 2023 and Israel’s subsequent bombing campaigns in Gaza, the frequency and intensity of tensions have mounted since.In LA, parents lost a suit claiming that teachers who identified as Zionist felt unwelcome in ethnic studies classrooms; in San Jose, an ongoing suit alleges that an ethnic studies teacher characterized Jews and Israelis as oppressors and “exploitative capitalists”, leading Jewish students to be be ostracized and harassed; and in Santa Ana, the school district settled with Jewish parents and community members who claimed to have been deliberately excluded from public discussions in which curricula were developed and approved – a violation of the state’s Brown Act, which demands open legislative meetings.View image in fullscreenRachel Lerman, vice-chair of the Louis D Brandeis Center for Human Rights Under Law, which filed claims on behalf of plaintiffs in the Santa Ana and Sequoia cases, claims that parents in Santa Ana were refused access to class materials after directly approaching schools and teachers, and that school board members considered holding meetings on Passover, a major Jewish holiday, so that Jewish community members could not attend.Lerman said the deliberate exclusion of the Jewish community from civic discourse is both antisemitic and directly harms Jewish kids. “It leads to bullying of Jewish students, to the exclusion of Jewish students from school clubs,” she said, adding that she had spoken with many Jewish parents who have elected to take their children out of local public schools, citing antisemitism.But advocates – as well as school districts and even courts – have pushed back, arguing that criticizing power structures, including foreign governments, drives ethnic studies and is not discriminatory. Last year, a Palo Alto school district rejected parents’ claims that its ethnic studies course was politically radical, while a judge threw out the case brought against LA ethnic studies educators on the grounds that “learning about Israel and Palestine” does not constitute “injury”.Teachers have pushed back, too. In April, Chloe Gentile-Montgomery, a Bay Area ethnic studies teacher who was placed on leave for allegedly including antisemitic material in a slideshow concerning Israel and Palestine, sued her former school district. Gentile-Montgomery claims racial discrimination and failure on the part of her employer to protect her from harassment from students and parents. While other teachers in the district taught about Israel and Palestine without consequence, Gentile-Montgomery, who is Black, was “singled out” and targeted, according to the lawsuit.Asserting that she has seen no convincing evidence of prejudice levied against ethnic studies educators, Gallagher-Geurtsen said that these incidents are examples of antisemitism being conflated with criticisms against a foreign government – with the latter being a perfectly acceptable exercise for high schoolers to undertake, she said.“Curriculum that makes you feel uncomfortable does not violate your rights,” she said.In some ways, the fight against ethnic studies is a story very specific to California. In others, it’s a microcosm of trends playing out on a national stage: polarization, censorship, and a cultural and political retreat from progressive ideas, especially in education.Those divisions have only been exacerbated since the war in Gaza and Donald Trump’s return to office. Since the 7 October attacks, the US Department of Education has investigated at least 40 K-12 schools for discrimination and antisemitism. Under Trump, the assault on educational institutions has escalated dramatically with antisemitism investigations against dozens of universities and a dramatic campaign against the academic independence of schools such as Harvard and Columbia.In California, a group of state lawmakers have tried to address what they describe as an unbridled course mandate that has given teachers too much leeway, paving the way for antisemitism to enter the classroom.“School districts have proceeded with content that isn’t appropriate for all kids and [that is] antisemitic,” said assembly member Rick Chavez Zbur.Zbur and fellow assembly member Dawn Addis co-authored Assembly Bill 1468, which proposed more stringent oversight over how the subject would be taught and the restriction of material to “domestic” experiences. The bill was pulled by its authors last month and replaced with a new bill focused on targeting antisemitism in schools.Zbur, a Democrat, is adamant that his critiques and policy aims have nothing to do with events at the national level. “This is completely separate,” he said. “I wouldn’t even put this in the bucket of things that the federal administration is focusing on.”Academics and policy experts see things differently. To them, ethnic studies is becoming another flashpoint term with academic origins – not unlike critical race theory (CRT) – being used to quash the teaching of subjects like colonialism and racism.“It’s using the language of civil rights to go against civil rights,” said Rachel Perera, a fellow at the Brown Center on Education Policy at the Brookings Institution. “It all seems very similar to trends we’ve seen nationally.”Ben Olinsky, senior vice-president of structural reform and governance at the Center for American Progress, echoed her point. “You have to view all this within a much broader push to censor opposing voices by Trump and folks on the right.”The ethnic studies drama also builds on trends that first emerged during pandemic-era lockdowns and the racial reckoning that followed the murder of George Floyd. Many parents saw what their children were learning in school over Zoom and were unhappy about the content. Rightwing politicians have seized on this, turning what began as local cultural disagreements into a “parents’ rights” movement that seeks to mute the discussion of certain topics – such as race and gender – in schools.“Rightwing groups have a stranglehold on our electeds,” said Gallagher-Geurtsen, claiming the California lawsuits were the product of a rightwing political engine intent on quashing free speech and weakening anti-racist efforts. “This is precisely the moment to step up and show white nationalists that they will not win.”When it comes to the Jewish parents’ antisemitism allegations, she rejects them out of hand. “Are you referring to white supremacist folks who don’t want us talking about race and racism?” she asked.Lerman, who represents Jewish families in several lawsuits, paints a very different picture – one in which progressive parents who want to protect their kids from harassment are being cornered and maligned as hateful racists. In reference to parents who have moved schools as a result of the conflict, she said: “These are liberals who went to live there because they believed in living in a diverse society, because they’ve upheld civil rights for so long, and suddenly their children are being bullied and humiliated and put in a position that’s just untenable,” she said.It is unclear whether there is a middle ground in this battle of opposing worldviews, where each side is convinced the other is perpetuating harmful and discriminatory ideas.The result of such rancor is that the quality of public education goes down, experts say. Teachers, fearing retribution, are silenced or leave the profession entirely; parents with means move their kids to private schools; and school districts see much-needed funding disappear. “These events are going to shape how educators talk about and teach these topics that they know are politically contentious,” said Perera.Perera thinks that the dissolution of America’s public school system, which shapes the minds of 80% of the nation’s K-12 students, is a goal of the Trump administration’s war on education. “That’s the endgame: to dismantle the public education system by sowing distrust and creating poor experiences.”Experts also fear that the infighting and its focus on Israeli politics distracts from what they see as a very real, and growing, threat of antisemitism, especially on the right. “It is really hard to take Trump and his administration seriously on this issue when one of his senior advisers gave a Nazi salute and they seek to weaponize the label of antisemitism to silence protected free speech on campuses,” said Olinsky.Added Kitonga: “Antisemitism is a real and scary phenomenon. Coming for ethnic studies will not resolve any bit of it.” More

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    Trump takes on the Fed – but he has little power over central bank, economists say

    For months, Donald Trump has ranted on social media and, at one point, threatened to fire the Federal Reserve chair, Jerome Powell. Last week, he took on a new, unusual tactic: a handwritten note.“You have cost the USA a fortune and continue to do so. You should lower the rate – by a lot!” Trump wrote to Powell, whom he calls “Too Late” in one of his less compelling nicknames.That Trump has targeted the Fed isn’t surprising. In the midst of Trump’s trade war, consumers and business owners alike have expressed anxiety about the economy. The stock market tanked in April, when the president announced the highest of his tariffs, and only went on the upswing when he pulled back the bulk of his levies.The Fed has the ability to sway the US economy through its ability to adjust interest rates. When rates are high, as they have been for the last few years, borrowing money becomes more expensive. This means higher rates for mortgages, business loans, credit card debt and more. People are less likely to invest when interest rates are high, which can slow activity in the economy. The Fed lowering interest rates would excite investors and spur economic activity, but the price could be steep in the long run.But how much sway does Trump really have over the Fed?While Trump’s aggression toward the Fed, particularly his personal attacks against Powell, are a remarkable departure from the relationship a US president typically has with the Fed, economists say the structure of the central bank limits the amount of power Trump actually has – at least in the short term.Historically, the Fed has been a nonpartisan, independent central bank within the federal government. Economists have found that countries without central banks are prone to high inflation and unemployment.“A central bank’s independence is pretty much the only thing macroeconomists know of that’s a free lunch,” said Jason Furman, a former economic adviser to Barack Obama. “When you look at authoritarian leaders that have effectively taken over the central banks, like in Turkey, you can end up with 70% inflation rates and really, really big economic problems.”In late June, Trump told reporters that he has zeroed in on “three or four people who I’m going to pick” to replace Powell. When the treasury secretary, Scott Bessent, whose name has been floated, was asked if he would take the job, Bessent said: “I will do what the president wants.”That the White House is already talking about replacing Powell almost a year out from the end of his term has raised concerns that a new appointee would act as Trump’s “shadow chair”, or someone who has power over Powell before he leaves office.But those familiar with the Fed’s structure say that a powerful “shadow chair” is unlikely, especially since the Fed’s structure encourages consensus among its leaders.When setting interest rates, the Fed chair doesn’t act alone. The chair is one of 12 members of the Federal Open Market Committee (FOMC), which meets eight times a year to vote on any adjustments to the interest rate.The amount of control Trump has over who gets on to the FOMC is limited. The committee has seven Fed governors who serve 14-year terms. Those governors are appointed by the president and confirmed by the Senate. The other five members are presidents of regional Federal Reserve banks, who are selected within the Federal Reserve system.During the next four years, because of upcoming term limits, Trump will have the ability to appoint two of the 12 members of the FOMC – what would be a small fraction of the committee.“They’re going to have a hard time persuading other people on the committee to go along with anything like what Trump wants,” Furman said.skip past newsletter promotionafter newsletter promotionRyan Sweet, chief US economist for Oxford Economics, said that Fed governors on the FOMC already voice dissenting views on the economy in public, but come together to form a consensus during their meetings.“It’s built [into the Fed] that they go into a meeting and they’ve got to come to a consensus on what the outcome is,” Sweet said.And even though Trump may want to replace Powell before his term is up, the supreme court signaled that the president can’t constitutionally fire him. Sweet pointed out that the court’s preemptive protection of the Fed chair has likely soothed stock markets, which had gone into a panic when Trump first threatened to oust Powell.Powell, whom Trump first appointed in 2018, has publicly resisted the president’s efforts to sway the Fed. He has said he would not step down if Trump asks and has said the Fed will not lower interest rates prematurely, at risk of raising inflation.In his most pointed statement against Trump’s economic policies, Powell said that the Fed paused interest rate cuts “when we saw the size of the tariffs”.“Essentially all inflation forecasts for the United States went up materially as a consequence of tariffs,” Powell said. “We didn’t overreact, in fact we didn’t react at all.” This article was amended on 7 July 2025. Powell said the Fed paused interest rate cuts due to Trump’s tariffs, not interest rate increases. More

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    The Trump administration pushed out a university president – its latest bid to close the American mind | Robert Reich

    Under pressure from the Trump administration, the University of Virginia’s president of nearly seven years, James Ryan, stepped down on Friday, declaring that while he was committed to the university and inclined to fight, he could not in good conscience push back just to save his job.The Department of Justice demanded that Ryan resign in order to resolve an investigation into whether UVA had sufficiently complied with Donald Trump’s orders banning diversity, equity and inclusion.UVA dissolved its DEI office in March, though Trump’s lackeys claim the university didn’t go far enough in rooting out DEI.This is the first time the Trump regime has pushed for the resignation of a university official. It’s unlikely to be the last.On Monday, the Trump regime said Harvard University had violated federal civil rights law over the treatment of Jewish students on campus.On Tuesday, the regime released $175m in previously frozen federal funding to the University of Pennsylvania, after the school agreed to bar transgender athletes from women’s teams and delete the swimmer Lia Thomas’s records.Let’s be clear: DEI, antisemitism and transgender athletes are not the real reasons for these attacks on higher education. They’re excuses to give the Trump regime power over America’s colleges and universities.Why do Trump and his lackeys want this power?They’re following Hungarian prime minister Viktor Orbán’s playbook for creating an “illiberal democracy” – an authoritarian state masquerading as a democracy. The playbook goes like this:First, take over military and intelligence operations by purging career officers and substituting ones personally loyal to you. Check.Next, intimidate legislators by warning that if they don’t bend to your wishes, you’ll run loyalists against them. (Make sure they also worry about what your violent supporters could do to them and their families.) Check.Next, subdue the courts by ignoring or threatening to ignore court rulings you disagree with. Check in process.Then focus on independent sources of information. Sue media that publish critical stories and block their access to news conferences and interviews. Check.Then go after the universities.Crapping on higher education is also good politics, as demonstrated by the congresswoman Elise Stefanik (Harvard 2006) who browbeat the presidents of Harvard, University of Pennsylvania and MIT over their responses to student protests against Israel’s bombardment of Gaza, leading to several of them being fired.It’s good politics, because many of the 60% of adult Americans who lack college degrees are stuck in lousy jobs. Many resent the college-educated, who lord it over them economically and culturally.But behind this cultural populism lies a deeper anti-intellectual, anti-Enlightenment ideology closer to fascism than authoritarianism.JD Vance (Yale Law 2013) has called university professors “the enemy” and suggested using Orbán’s method for ending “leftwing domination” of universities. Vance laid it all out on CBS’s Face the Nation on 19 May 2024:
    Universities are controlled by leftwing foundations. They’re not controlled by the American taxpayer and yet the American taxpayer is sending hundreds of billions of dollars to these universities every single year.
    I’m not endorsing every single thing that Viktor Orbán has ever done [but] I do think that he’s made some smart decisions there that we could learn from.
    His way has to be the model for us: not to eliminate universities, but to give them a choice between survival or taking a much less biased approach to teaching. [The government should be] aggressively reforming institutions … in a way to where they’re much more open to conservative ideas.”
    Yet what, exactly, constitutes a “conservative idea?” That dictatorship is preferable to democracy? That white Christian nationalism is better than tolerance and openness? That social Darwinism is superior to human decency?The claim that higher education must be more open to such “conservative ideas” is dangerous drivel.So what’s the real, underlying reason for the Trump regime’s attack on education?Not incidentally, that attack extends to grade school. Trump’s education department announced on Tuesday it’s withholding $6.8bn in funding for schools, and Trump has promised to dismantle the department.Why? Because the greatest obstacle to dictatorship is an educated populace. Ignorance is the handmaiden of tyranny.That’s why enslavers prohibited enslaved people from learning to read. Fascists burn books. Tyrants close universities.In their quest to destroy democracy, Trump, Vance and their cronies are intent on shutting the American mind.

    Robert Reich, a former US secretary of labor, is a professor of public policy emeritus at the University of California, Berkeley. He is a Guardian US columnist. His newsletter is at robertreich.substack.com More

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    Donald Trump calls Elon Musk’s new political party ‘ridiculous’ and says Tesla owner is ‘off the rails’ – US politics live

    Welcome to our live coverage of US politics and the second Trump administration.Donald Trump has hit out at Elon Musk’s decision to start and bankroll a new US political party that the tech billionaire believes can offer a viable alternative to the Democrats and Republicans.Speaking to reporters before boarding Air Force One yesterday, the US president said:
    I think it’s ridiculous to start a third party. It’s always been a two-party system and I think starting a third party just adds to the confusion.
    Shortly after speaking about his former ally, Trump posted further comments on his Truth Social platform, writing:
    I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks.
    Trump and Musk were formerly close allies, with the Tesla boss and X owner appointed to slash federal spending through the unofficial Department of Government Efficiency (Doge) from January through May.Musk fell out with the Republican president over his sprawling tax and spending plan, signed into law on Friday, which is expected to add at least $3 trillion (£2.2 trillion) to the US’s already huge $37tn (£27tn) debt pile. Musk has argued that the bill, which he has described as “utterly insane and destructive”, would irresponsibly add to the US national debt.Musk, the world’s richest person, posted on X over the weekend that he had set up the America Party to challenge the Republican and Democratic “Uniparty”. The details of the structure of the new venture or a timeline for its creation are still unclear.But some of his social media posts suggests the new political party would focus on two or three Senate seats, and eight to 10 House districts.We will have more on this and other US politics stories throughout the day so stick with us.Donald Trump has said his administration plans to start sending letters on Monday to US trade partners dictating new tariffs, amid confusion over when the new rates will come into effect.“It could be 12, maybe 15 [letters],” the president told reporters, “and we’ve made deals also, so we’re going to have a combination of letters and some deals have been made.”With his previously announced 90-day pause on tariffs set to end on 9 July, the president was asked if the new rates would come into effect this week or on 1 August, as some officials had suggested.“No, there are going to be tariffs, the tariffs, the tariffs are going to be, the tariffs,” the president began uncertainly. “I think we’ll have most countries done by July 9, yeah. Either a letter or a deal.”Sensing the confusion, his commerce secretary, Howard Lutnick, jumped in to add: “But they go into effect on August 1. Tariffs go into effect August 1, but the president is setting the rates and the deals right now.”You can read the full story, by my colleagues Robert Mackey, Lauren Almeida and Lisa O’Carroll, here:The US is extremely mindful of BRICS’ economic might and its growing influence on the diplomatic stage. The group, often described as the developing world’s alternative to the G7 group of nations, has undergone a recent rapid expansion.BRICS was founded by Brazil, Russia, India, China and South Africa, but the group last year expanded to include Indonesia, Iran, Egypt, Ethiopia and the UAE.Some of its members have denounced US tariff policies and have suggested reforms to how major currencies are valued.The group pushes for greater representation for emerging economies and thinks western countries have a disproportionate influence on global organisations like the World Bank and International Monetary Fund.In other news, Donald Trump has widened his trade war after saying the US will impose an additional 10% tariff on any countries aligning themselves with the “anti-American policies” of the BRICS group of developing nations that include China and Russia.Trump wrote on social media:
    Any country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% tariff. There will be no exceptions to this policy.
    His comments came after a joint Sunday statement from the opening of the BRICS summit in Rio de Janeiro in which the group warned the rise in tariffs threatened global trade, continuing its veiled criticism of Trump’s erratic tariff policies.Since his return to the White House, Trump has announced a series of steep import taxes on foreign goods, arguing they will protect American jobs and the US manufacturing industry.In April, in line with this protectionist view, Trump announced a 10% base tariff rate on most countries and additional duties ranging up to 50%, although he later delayed the effective date for all but 10% duties until 9 July.The negotiating window until 9 July has led to announced deals only with the UK and Vietnam. You can read more on Trump’s tariff threat in our business live blog.My colleagues Richard Luscombe and Robert Mackey have a little more detail about how the feud between the world’s richest man and the world’s most powerful man has recently escalated. Here is an extract from their story:
    When the pair fell out earlier in the summer, Musk lashed out during an astonishing social media duel in which he stated Trump’s name was in the files relating to associates of the late pedophile and sex trafficker Jeffrey Epstein.
    Musk later deleted the post and apologized to the president as they embarked on an uneasy truce. On Sunday, however, Musk returned to the subject, reposting a photo of the jailed Epstein facilitator Ghislaine Maxwell that questioned why she was the only person in prison while men who engaged in sex with underage girls – a crime colloquially known in the US as statutory rape – were not.
    In other posts he said it would be “not hard” to break the two-party stranglehold in US politics enjoyed by Democrats and Republicans…
    Trump has made clear his feelings about his former friend in recent days after criticism of the bill. In response to Musk’s posts calling the bill “insane”, Trump said he might “look into” deporting the South African-born, naturalized US citizen billionaire.
    Welcome to our live coverage of US politics and the second Trump administration.Donald Trump has hit out at Elon Musk’s decision to start and bankroll a new US political party that the tech billionaire believes can offer a viable alternative to the Democrats and Republicans.Speaking to reporters before boarding Air Force One yesterday, the US president said:
    I think it’s ridiculous to start a third party. It’s always been a two-party system and I think starting a third party just adds to the confusion.
    Shortly after speaking about his former ally, Trump posted further comments on his Truth Social platform, writing:
    I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks.
    Trump and Musk were formerly close allies, with the Tesla boss and X owner appointed to slash federal spending through the unofficial Department of Government Efficiency (Doge) from January through May.Musk fell out with the Republican president over his sprawling tax and spending plan, signed into law on Friday, which is expected to add at least $3 trillion (£2.2 trillion) to the US’s already huge $37tn (£27tn) debt pile. Musk has argued that the bill, which he has described as “utterly insane and destructive”, would irresponsibly add to the US national debt.Musk, the world’s richest person, posted on X over the weekend that he had set up the America Party to challenge the Republican and Democratic “Uniparty”. The details of the structure of the new venture or a timeline for its creation are still unclear.But some of his social media posts suggests the new political party would focus on two or three Senate seats, and eight to 10 House districts.We will have more on this and other US politics stories throughout the day so stick with us. More

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    Tesla shares dive as investors fear new Elon Musk political party will damage brand

    Shares in Tesla are heading for a sharp fall in the US as investors fear Elon Musk’s launch of a new political party will present further problems for the electric carmaker.Tesla stock was down more than 7% in pre-market trading on Monday, threatening to wipe approximately $70bn (£51bn) off the company’s value when Wall Street opens.If the shares fell by that much, the value of Musk’s stock would fall by more than $9bn to about $120bn. The Tesla and Space X boss remains comfortably the world’s richest person, with a wealth of about $400bn, according to Forbes.Tesla is valued at just under $1tn but its shares have come under pressure owing to the Tesla CEO’s relationship with Donald Trump.First, Musk’s strong support for the US president created a consumer backlash and now the antagonistic turn in his relationship with Trump has investors worried Musk will be distracted from his day job, or that the White House will punish his businesses.Dan Ives, analyst at Wedbush Securities, said Musk’s announcement that he is bankrolling a US political party will alarm investors.“Very simply, Musk diving deeper into politics and now trying to take on the Beltway establishment is exactly the opposite direction that Tesla investors/shareholders want him to take during this crucial period for the Tesla story,” Ives said, adding that there was a “broader sense of exhaustion” among Tesla investors that Musk – the company’s largest shareholder – will not stay out of politics.Trump on Sunday called Musk’s plans to form the America party “ridiculous”, launching new barbs at the world’s richest person.skip past newsletter promotionafter newsletter promotionIn a post on the Truth Social tech platform, Trump wrote: “I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks.”Musk announced the creation of the America party on his X platform at the weekend. He wrote: “When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy. Today, the America party is formed to give you back your freedom.” More

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    Trump and US commerce secretary say tariffs are delayed until 1 August, sparking confusion

    Donald Trump has said his administration plans to start sending letters on Monday to US trade partners dictating new tariffs, amid confusion over when the new rates will come into effect.“It could be 12, maybe 15 [letters],” the president told reporters, “and we’ve made deals also, so we’re going to have a combination of letters and some deals have been made.”With his previously announced 90-day pause on tariffs set to end on 9 July, the president was asked if the new rates would come into effect this week or on 1 August, as some officials had suggested.“No, there are going to be tariffs, the tariffs, the tariffs are going to be, the tariffs,” the president began uncertainly. “I think we’ll have most countries done by July 9, yeah. Either a letter or a deal.”Sensing the confusion, his commerce secretary, Howard Lutnick, jumped in to add: “But they go into effect on August 1. Tariffs go into effect August 1, but the president is setting the rates and the deals right now.”In April, Trump announced a 10% base tariff rate on most countries and additional duties ranging up to 50%, although he later delayed the effective date for all but 10% duties until 9 July.The new date of 1 August offers countries a further three-week reprieve but also plunges importers into an extended period of uncertainty because of the lack of clarity around the tariffs.Stock markets slipped in Asia on Monday amid the confusion. Japan’s Nikkei lost 0.3%, while South Korean stocks fell 0.7%. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1%.European stocks were mixed. In the UK, the blue chip FTSE 100 index slipped 0.3%, with Shell and BP the biggest fallers on the back of weaker oil prices. The German Dax index rose by 0.3%, while in France the Cac 40 was broadly flat. The Stoxx Europe 600, which tracks the biggest companies on the continent, was also flat.Industrial metals dropped, with copper down by 0.6% to $9,808 per tonne on the London Metal Exchange. Aluminium fell by 1.1% to $2,561 a tonne on the exchange, where all major metals were trading lower on Monday morning.In an update on his social media platform Truth Social, Trump said the US would begin delivering “TARIFF Letters, and/or Deals” from noon ET on Monday.“Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy,” he added in a separate post, referring to the developing nations bloc that includes Brazil, Russia, India, China and South Africa.After a summit in Brazil on Sunday, Brics leaders had issued a joint statement raising “serious concerns about the rise of unilateral tariff” measures, which they said risked hurting the global economy.On Monday, the Chinese government said it opposed tariffs being used as a tool to coerce others. Mao Ning, a spokesperson for the Chinese foreign ministry, said the use of tariffs served no one.Scott Bessent, the US treasury secretary, told CNN’s earlier on Sunday that several big announcements of trade agreements could come in the next days, noting that the EU had made good progress in its talks.He said Trump would also send out letters to 100 smaller countries with whom the US does not have much trade, notifying them that they would face higher tariff rates first set on 2 April and then suspended until 9 July.“President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along then on August 1 you will boomerang back to your April 2 tariff level. So I think we’re going to see a lot of deals very quickly,” Bessent told CNN.Since taking office, Trump has set off a global trade war that has roiled financial markets and sent policymakers scrambling to guard their economies, including through deals with the US and other countries.Bessent said on Friday that negotiations were focused on 15 to 18 agreements with important partners. So far, Trump has signed deals with only two of the 60 countries he threatened with tariffs in April – the UK and Vietnam.Indonesia, with which the EU hopes to sign a trade deal by the end of the summer, will sign a deal to import at least 1m tonnes of US wheat annually for the next five years, the country’s flour mills association told AFP on Monday, as Jakarta lays the groundwork to avoid the worst of Trump’s tariffs. More

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    Trump news at a glance: markets react with confusion as Trump appears to move goal posts on tariffs again

    Stock markets slipped amid confusion as to when – and at what level – new US tariffs would be applied, as Donald Trump’s self-imposed 9 July deadline edged closer.The US is close to finalising several trade agreements in the coming days and will notify other countries of higher tariff rates by Thursday, the president said on Sunday, with the higher rates to take effect on 1 August.“President Trump’s going to be sending letters to some of our trading partners saying that if you don’t move things along, then on August 1 you will boomerang back to your April 2 tariff level,” treasury secretary Scott Bessent told CNN.Trump in April announced a 10% base tariff rate on most countries and higher “reciprocal” rates ranging up to 50%. However, Trump also said levies could range in value from “maybe 60% or 70% tariffs to 10% and 20%”, further clouding the picture.With very few actual trade deals done, analysts had suspected the date would be pushed out, though it was still not clear if the new deadline applied to all trading partners or just some.Trump and US commerce secretary say tariffs will come into effect 1 AugustTrump said on Sunday that his administration plans to start sending letters on Monday to US trade partners, dictating new tariff rates to be imposed on goods they sell to Americans. “It could be 12, maybe 15,” the president told reporters, “and we’ve made deals also, so we’re going to have a combination of letters and some deals have been made.”Kevin Hassett, who heads the White House National Economic Council, told CBS that there might be wriggle room for countries engaged in earnest negotiations. “There are deadlines, and there are things that are close, and so maybe things will push back past the deadline,” Hassett said, adding that Trump would decide if that could happen.Read the full storyTrump says Musk is ‘off the rails’ and calls his new political party ‘ridiculous’Donald Trump called Elon Musk’s decision to start and bankroll a new US political party “ridiculous” on Sunday. “Third parties have never worked, so he can have fun with it but I think it’s ridiculous,” the president told reporters traveling with him back to the White House from his New Jersey golf club.He then elaborated, at great length, in a post on his social media platform, Truth Social. “I am saddened to watch Elon Musk go completely ‘off the rails,’ essentially becoming a TRAIN WRECK over the past five weeks,” the president wrote.Read the full storyBenjamin Netanyahu travels to Washington as ceasefire talks reach critical pointTrump said he believed a hostage release and ceasefire deal could be reached this week, which could lead to the release of “quite a few hostages.”He was speaking after Benjamin Netanyahu left Israel for talks in Washington, praising Trump’s return to the presidency.“We have never had such a friend in the White House … We have already changed the face of the Middle East beyond recognition, and we have an opportunity and the ability to change it further and to enable a great future for the state of Israel, the people of Israel and the entire Middle East,” Israel’s prime minister told reporters.Read the full storyAnalysis: Maga influencer and de facto national security adviser Laura Loomer holds outsized sway on TrumpLaura Loomer has emerged as the most prominent Maga America First influencer in the early days of Trump’s second term.In early April, Loomer, a 32-year-old pro-Trump online influencer widely seen as a rightwing conspiracy theorist, met with Trump and gave him a list of names of people on the staff of the national security council that she believed were not loyal enough to Trump or at least had professional backgrounds that she considered suspect. Trump fired six staffers.Later, national security adviser Mike Waltz, whom Loomer had criticized for his role in the Signalgate chat leak scandal, was ousted as well.Read the full storyTexas death toll rises as Trump refuses to say whether he still plans to shut FemaDonald Trump announced on social media that he had signed a federal emergency declaration that would free additional resources to support local efforts in search and rescue operations in Texas after deadly flooding. Trump also posted a letter saying federal efforts would be coordinated by Benjamin Abbott of the Federal Emergency Management Agency (Fema). In May, that agency’s acting administrator was fired after he told Congress he did not believe it was “in the best interest of the American people to eliminate” Fema, which Trump has said he plans to do.Asked on Sunday if he is still planning to phase out Fema, Trump told a reporter: “Well, Fema is something we can talk about later, but right now they’re busy working.”Read the full storyWhat else happened today:

    David Smith asks if Trump’s expansion of presidential powers is setting the stage for future Oval Office holders?

    Adam Gabbatt writes that although Trump’s mega-bill has been widely criticized in the press, Fox News sees it differently.
    Catching up? Here’s what happened 5 July. More

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    Musk should stay out of politics, treasury secretary says after ‘America’ party news

    Elon Musk should focus on running his companies and keep himself out of politics, Donald Trump’s treasury secretary said on Sunday, a day after the world’s richest person – and a former White House adviser – announced the formation of a new political party.“The principles of Doge were very popular – I think if you looked at the polling Elon was not,” Scott Bessent said on CNN’s State of the Union, referring to the so-called “department of government efficiency” that Musk temporarily headed after Trump’s second presidency began in January.Opinion polls found Doge and Musk’s work implementing brutal spending and job cuts within the federal government to be deeply unpopular. And Bessent alluded to how investors in Musk’s companies – including the electrical vehicle maker Tesla, whose sales have suffered during Doge’s existence – publicly pleaded for his time with the Trump administration to be short-lived.“So I believe that the boards of directors at his various companies wanted him to come back and run those companies,” Bessent remarked. “I imagine that those boards of directors did not like this announcement yesterday, and will be encouraging him to focus on his business activities, not his political activities.”Bessent’s reaction came after Musk delivered on his promise to form and bankroll a new US political party, and accused his one-time ally Trump of “bankrupting” the country by signing his massive tax and spending bill into law.The tech billionaire announced the creation of the America party in a series of posts late on Saturday and early Sunday to X, the social media platform he owns.“When it comes to bankrupting our country with waste & graft, we live in a one-party system, not a democracy,” he wrote.“Today, the America Party is formed to give you back your freedom.”Musk, who was appointed to slash federal spending through the unofficial Doge from January through May, has been a vocal critic of Trump’s “big, beautiful bill” that the non-partisan Congressional Budget Office said would increase the national deficit by $3.3tn (£2.85tn) through 2034.It provides substantial tax cuts for the super wealthy while slashing federal safety net welfare programs, with up to 10.6 million people losing healthcare insurance.The pair have feuded over its cost and impacts since Musk left the government in May, and on Friday, when Trump signed the bill into law in a Fourth of July picnic at the White House, the Tesla and SpaceX chief opened a poll on X: “the perfect time to ask if you want independence from the two-party (some would say uniparty) system”.Respondents voted two to one in the affirmative, Musk announced late on Saturday. He gave few details about the structure of his new venture or a timeline for its creation. But his earlier posts suggested it would focus on two or three Senate seats, and eight to 10 House districts.Both chambers of Congress are narrowly controlled by Republicans.“Given the razor-thin legislative margins, that would be enough to serve as the deciding vote on contentious laws, ensuring that they serve the true will of the people,” Musk said.Bessent was one Trump ally to quickly take a swipe at Musk’s move.Musk’s series of posts to X, which continued into the early hours of Sunday, also appeared to indicate that his on-again, off-again relationship with Trump was firmly back in negative territory.When the pair fell out earlier in the summer, Musk lashed out during an astonishing social media duel in which he stated Trump’s name was in the files relating to associates of the late pedophile and sex trafficker Jeffrey Epstein.Musk later deleted the post and apologized to the president as they embarked on an uneasy truce. On Sunday, however, Musk returned to the subject, reposting a photo of the jailed Epstein facilitator Ghislaine Maxwell that questioned why she was the only person in prison while men who engaged in sex with underage girls – a crime colloquially known in the US as statutory rape – were not.In other posts he said it would be “not hard” to break the two-party stranglehold in US politics enjoyed by Democrats and Republicans. And he questioned “when & where should we hold the inaugural American Party congress? This will be super fun!”There was no immediate comment from the White House about Musk’s announcement, but Trump has made clear his feelings about his former friend in recent days after criticism of the bill.In response to Musk’s posts calling the bill “insane”, Trump said he might “look into” deporting the South African-born, naturalized US citizen billionaire. The president also mused about slashing subsidies to his companies, especially SpaceX, which holds billions of dollars in government contracts.“Doge is the monster that might have to go back and eat Elon. Wouldn’t that be terrible?” Trump asked reporters on Tuesday.There is no requirement for new political parties in the US to register with the Federal Election Commission (FEC) initially, but reporting regulations kick in once spending surpasses what the FEC calls “certain thresholds”.Musk is estimated to have spent more than $275m of his personal fortune helping to get Trump elected to a second term in the White House in last November’s presidential election. More