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    Trump has called the US postal service ‘a joke’. But don’t expect Amazon to replace it | Niamh Rowe

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    In towns where Washington DC is an abstraction, the post office is the front desk of American democracy – sometimes the only public space at all. Here, postmasters are “the human side of government”, as the senator Jennings Randolph put it in 1976. “When such offices are closed,” he warned, “the American flag really comes down.”Championed by Benjamin Franklin in 1775, the roots of the US postal service – whose mandate is to “bind the nation together” – are older than the republic itself. The constitution calls for “post offices and post roads”. The USPS is still legally obligated to provide a “basic and fundamental” service to all Americans. In Scottsbluff, Nebraska, a rural carrier drives more than 700 miles a year to serve just two households.But after years in the red – and amid open hostility from the Trump administration – its future looks uncertain.The USPS has lost about $114bn since 2007, according to financial reports, amid declining letter volume, competition from private carriers and rising employee costs. Meanwhile, the specter of privatization looms larger than ever.“The postal service is a joke,” Donald Trump told reporters in 2020. A reform plan during his previous administration called for restructuring it “to return it to a sustainable business model or prepare it for future conversion from a Government agency into a privately-held corporation”.Given this historical scorn, it was no surprise when reports broke in February that Trump was considering dissolving the agency’s leadership and absorbing it into the Department of Commerce.“The fate of the USPS is no longer financial or managerial, but political,” James O’Rourke, a professor of management at the University of Notre Dame, recently told me. “Putting the post office up for an IPO would not be much of a stretch in the current climate. The checks and balances are gone.”Indeed, a Wells Fargo memo to investors titled “USPS Privatization: A Framework” was leaked last month. It reads: “Parcel could be carved out and sold or IPOed.” The plan predicts parcel prices would increase 30%–140% across product lines and proposes a post office sell-off so that “value can be harvested” from the real estate.Yet if the parcel segment were “carved out”, not all of the carcass would bear meat. Investors will seize only the parts they can further monetize, O’Rourke says. That would mean closing small-town post offices and ending home delivery on unprofitable routes.Think of the mule train that descends into Havasupai territory in the Grand Canyon; the small aircraft and seasonal boats that serve Little Diomede, Alaska, where residents can see Russia from their windows; or Point Roberts, Washington, where mail crosses Canada to reach a US town. If universal service falters, those addresses are likely to be abandoned first.People in affected zip codes – already more likely to be lower income – will have to travel to pick up parcels or pay steep delivery costs. “Those people will do with less or do without,” O’Rourke says.But the cost of losing universal service would be more than financial. Vote-by-mail and absentee ballots are particularly critical in rural areas with distant polling stations, and the USPS ensures those ballots reach voters. It also handles 1.2bn prescription-drug shipments each year, as of 2020, according to the National Association of Letter Carriers union. In places with no nearby banks, the post office may be the only location where residents can pay bills.Rural postal workers also fulfill a civic role that transcends transporting mail. A study of village postmasters from the 1970s illustrates how closely woven they can become into civic life: “People going out of town commonly leave their house keys with the postmaster … residents leave notes with the postmaster for friends to retrieve later in the day.”While the advent of the internet renders that depiction somewhat antiquated, its essence remains true. “Rural carriers are still the fabric that knits some communities together,” Don Maston, president of the National Rural Letter Carriers’ Association, told me. In some towns, carriers may be the only contact residents have with the outside world – and thus a lifeline, he added. Carriers still carry out “wellness checks” if a resident fails to collect their mail.Mark Jamison spent 15 years as a postmaster in a remote office in the mountains of North Carolina, where he was the town’s only government worker. Many residents were not literate, so he assisted with written tasks. Older residents would stop by the post office on their way home so he could open their jars. He assembled bicycles at Christmas. Locals referred to him as the “bartender”, because people came in with stories to tell and advice to seek.“There are still postal employees who do that,” Jamison said.While the USPS has staved off a formal sell-off so far under the current administration, its universal service is already being eroded in de facto terms. This year, its 10-year “Delivering for America” modernization plan kicks off in a bid to save at least $36 billion. The plan will slow service for about three-quarters of the country’s zip codes, according to the advocacy group Save the Post Office, with rural areas bearing the brunt. The Postal Regulatory Commission voiced opposition to the plan in January, noting it was “very concerned” about how it would disadvantage rural communities.Louis DeJoy, the former US postmaster general, announced a plan in March to cut 10,000 USPS jobs. Amid reports Trump urged the USPS board of governors to appoint FedEx board member David P Steiner as postmaster general, Brian Renfroe, president of the National Association of Letter Carriers, alleged a “hostile takeover” of the postal service. (Steiner, who took the job in July, has said he does not believe the USPS should be privatized and that he believes “in the current structure of the postal service as a self-financing, independent entity of the executive branch”.)At the same time, Amazon Logistics is on track to surpass the USPS as the nation’s largest parcel carrier by volume. The company is also speeding up in rural America, as AI-driven efficiencies make more routes economically viable. In April, it announced a $4bn investment to expand its rural “last-mile” network – tripling its size by the end of next year and reaching 13,000 more rural zip codes.This will be welcome news to those households. But Amazon drivers can’t go the extra mile. They lack the civic responsibilities of government workers, and their routes fluctuate algorithmically, meaning it’s harder to build community ties.What’s more, Amazon’s last-mile network will expand only as long as it’s profitable to do so. “I don’t see it going into the mule train business, right?” said Christopher W Shaw, author of First Class: The US Postal Service, Democracy, and the Corporate Threat. An Amazon driver will never sing the USPS’s unofficial motto: “Every piece, every address, every day.” Without a legal mandate, why would they?As one Minnesota town-hall clerk put it in the 1970s: “The post office is like drinking water. You don’t appreciate it till you don’t have it.”

    Niamh Rowe is a New York-based writer and podcast producer More

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      ‘This is the looting of America’: Trump and Co’s extraordinary conflicts of interest in his second term

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      The South Lawn of the White House had never seen anything like it. The president of the United States was posing for the world’s media against a backdrop of five different models of Tesla, peddling the electric vehicles with the alacrity of a salesman on commission.“I love the product, it’s beautiful,” Donald Trump said as he sank into the driver’s seat of a scarlet Model Y. With the Tesla CEO, Elon Musk, beside him, he went on to enlighten the American people that some Tesla models retail for as little as $299 a month, “which is pretty low”.That same day, within hours of the White House’s makeover into a Tesla showroom, the New York Times revealed that Musk had decided to invest $100m in political groups working for Trump. The massive injection of capital would enhance the nearly $300m Musk had already spent getting Trump elected.A week after the commercial on the South Lawn, on 19 March, Trump’s commerce secretary, the billionaire investment banker Howard Lutnick, went on Fox News and exhorted viewers to “buy Tesla”. “Who wouldn’t invest in Elon Musk’s stock?” he gushed. “He is probably the best person to bet on I’ve ever met.”At the time Lutnick made those remarks, he had yet to divest himself from Cantor Fitzgerald, the financial services firm he had led for 35 years. He was talking up stock in which he still had a vested interest – Cantor held $300m in Tesla shares, a stake that has since soared to $555m. And the commerce secretary was also bigging up his friend Musk, whose SpaceX and Starlink businesses are regulated by the commerce department that Lutnick now controlled.Eight days in March, three friendly billionaires, one of them the world’s most powerful person, another the world’s richest person. Doing what friends do: scratching each other’s backs. Even though Musk later fell out with Trump – in a shocking social media spat that roiled US politics – the imagery remains powerful and highly symbolic of Trump’s second term in the White House.View image in fullscreenBetween them they committed in those eight days acts that, had they occurred during any previous presidency – including Trump’s own first administration – would have provoked howls of protest concerning quid pro quo. Yet those eight days represent just a tiny slice of the graft and possible misconduct that is unfolding.The gift by the Qatari government of a $400m luxury jetliner to be repurposed as Air Force One has become the paradigm of the blitz of ethical dilemmas unleashed by Trump. The Pentagon last month accepted possession of the plane, which will be transferred to Trump’s presidential library once he leaves office.That Trump doggedly accepted the Qatari “palace in the sky” despite widespread condemnation speaks volumes about how indomitable he feels at this moment. He has shrugged aside the rebukes even of devoted Trump supporters, including the rightwing commentator Ben Shapiro, who bridled at the transfer’s grubby appearance, calling it “skeezy stuff”.It also shows Trump’s disdain for the US constitution, given the emoluments clause’s clear prohibition. Presidents are not allowed to accept high-value gifts from foreign governments without congressional consent.Yet the luxury jumbo jet is also just the thinnest edge of a very fat wedge. There has been so much more that has flown, if not under the radar, then partially obscured from sight amid the ethical blizzard of corruption and influence.There have been multimillion-dollar TV packages, real estate deals in Arab petrostates, dinners with the president going for $5m a pop, plum job offers for contributors to Trump’s inaugural fund, cryptocurrency ventures attracting lucre from secret foreign investors, “drill, baby, drill” enticements for oil and energy donations – the list goes on, and on … and on.View image in fullscreenTrump and his team of billionaires have led the US on a dizzying journey into the moral twilight that has left public sector watchdogs struggling to keep up. Which is precisely the intention, said Kathleen Clark, a government ethics lawyer and law professor at Washington University in Saint Louis.“They have mastered the technique of flooding the zone – doing so much so fast that they are overwhelming the ability of ethics groups and institutions to respond.”Chris Murphy, the Democratic US senator from Connecticut, has delivered two long speeches on the floor of his chamber in which he has itemised Trump and Co’s most controversial transactions. The record already stretches to scores of entries, chronicling what Murphy calls Trump’s “efforts to steal from the American people to enrich himself and his friends”.In an interview with the Guardian, the senator said that Trump’s was a “pay-for-play administration. That’s the underlying theme. You pay Donald Trump money, he does favors for you. That’s old-fashioned corruption.”Clark’s analysis is even more pointed. “People talk about ‘guardrails’ and ‘norms’ and ‘conflict of interest’, which is all very relevant,” she said. “But this is theft and destruction. This is the looting of America.”Trump signaled that he would be a president like no other at the start of his first term, when he became the only occupant of the Oval Office in modern times to refuse to divest his assets by putting them into a blind trust. Though presidents are not bound by conflict of interest laws applying to other elected officials, the norm has been for incumbents to set themselves high standards, the archetype being Jimmy Carter’s sale of his peanut farm.Trump, by contrast, put his assets in a trust that remained under the control of his family, with him as its sole beneficiary. He incurred numerous accusations of first-term conflicts of interest, as foreign officials from 20 countries descended on his hotels, while Secret Service agents in Trump’s security detail were made to pay premium rates, pouring at least $10m into his bank account.Such unprecedented disregard for time-honored ethical boundaries was shocking at the time. Now it looks merely quaint.“In the first Trump administration there were ethical lapses,” said Danielle Caputo, senior legal counsel for ethics at the Campaign Legal Center watchdog organization. “With this new administration, there’s not just a disregard for ethics rules, there’s contempt.”The conversion of political power into cash began even before Trump re-entered the White House. Weeks before the inauguration, Melania Trump sealed a $40m deal with Jeff Bezos for an Amazon Prime “behind-the-scenes” documentary on her life.Trump banked millions of dollars of his own by leveraging his status as president-elect to browbeat tech companies. He settled disputes over the freezing of his then Twitter and Facebook accounts in the wake of the 6 January 2021 insurrection at the US Capitol, prising $10m out of his friend Musk, and $25m from Meta.View image in fullscreenTrump used the months leading up to November’s election to test-run what, as Murphy noted, has become a theme of his second presidency – pay-to-play. He invited oil executives to Mar-a-Lago and, as the Washington Post revealed, offered them a “deal” in which they would donate $1bn to his campaign and in return he would tear up profit-limiting environmental regulations once he was back in the White House.He kept his promise: on day one of his new administration he discharged a barrage of pro-fossil fuel actions.Donors to his record-breaking $239m inaugural fund have also found Trump to be a grateful benefactor. Warren Stephens, an investment banker who gave $4m, was rewarded with the role of US ambassador to the UK; Jared Issacman, a billionaire pilot and close associate of Musk’s, gave $2m to the fund and was tapped to lead Nasa (he was abruptly yanked from the appointment last month after he was reportedly discovered to have been been donating to Democrats).The pattern has continued into 1600 Pennsylvania Avenue. Three months into the administration, Trump’s eldest son, Don Jr, launched an elite private members’ club named Executive Branch which commands a sign-in fee of a cool $500,000.Its attraction? Access to cabinet members and top Trump advisers.Not to be outdone by his own son, Trump himself has followed the same playbook at his Mar-a-Lago resort. In March, he began inviting business leaders to dine with him in group settings at $1m a seat.Prefer something more intimate? No problem. One-on-one meetings are also available, yours for $5m.For a seasoned observer such as Norman Eisen of the Brookings Institution, the sheer mass of problematic transactions puts the administration beyond the pale. “It’s over the line, unlawful, corrupt and unethical. It is un-American.”Eisen has experience dealing with knotty ethical issues. He was special counsel for ethics during Barack Obama’s first year in the White House.Obama notes in his autobiography, A Promised Land, that Eisen earned himself the title of Dr No, so strict was his approach to conflicts of interest. He would tell White House officials hoping to attend outside events that “if it sounds fun, you can’t go”.View image in fullscreenEisen told the Guardian that he prevented Obama from refinancing his family home in Chicago. “He was regulating the banking industry at the time, in the midst of the Great Recession.”The contrast between such almost pedantic strictures and the free-for-all in today’s White House astonishes and dismays Eisen. “If my somewhat tongue in cheek motto for Obama was ‘If it’s fun, you can’t do it,’ then the motto of the Trump White House seems to be ‘If you can make a buck, grab it.’”Exhibit one of such conduct, Eisen suggests, is the Trump family’s dive into the world of crypto. Shortly before the inauguration, they launched personal lines of meme coins, $Trump and $Melania.Then they issued a new cryptocurrency pegged to the dollar, known as a stablecoin. Taken together, Eisen believes that the two crypto ventures from the family of a sitting president amount to “one of the worst and most shocking conflicts of interest in our nation’s history”.Trump bragged on the campaign trail that he would turn the US into the “crypto capital of the planet”. He was more circumspect in front of his faithful followers about the big plans his sons were simultaneously developing to cash in on the currency.Since his election victory, Trump has used his presidential status and executive power to boost not only the general standing of crypto but also his personal stake within it. One of his early executive orders created a “strategic bitcoin reserve” designed to bolster the industry.At the same time, he eviscerated basic regulatory controls, halted federal crypto-related lawsuits and disbanded a taskforce trained to hunt down crypto criminals. “We have a president whose net worth now includes very substantial investments in cryptocurrency who at the same time is loosening regulations on the crypto industry,” Eisen said.The unrivalled magnetism of the US presidency helped Trump to blast his nascent meme coin, a currency almost entirely reliant on hype, into the stratosphere. It rocketed from $6.50 on inauguration day to a peak of $73.Then, when it predictably plummeted back down to below $10, he used his presidential allure brazenly once again to boost the coin. This time he announced a “private intimate dinner” for the top 220 $Trump investors, followed by an exclusive White House tour for the top 25.The ensuing scramble for a seat at the presidential dining table reportedly earned the Trump family $148m.The $Trump meme coin is an ethics regulator’s waking nightmare. There is little transparency around who is channelling money into it, and even less around the potentially nefarious motives of investors.The same might be said about the Trumps’ other big crypto venture, World Liberty Financial, which was launched last September by Trump’s sons. The president himself is listed by the company as its “chief crypto advocate”.skip past newsletter promotionafter newsletter promotionFederal law sets tight rules against foreign parties donating to presidential campaign or inaugural funds. Yet there is nothing to prevent outside interests with connections to foreign governments engaging with World Liberty and its new product, the USD1 stablecoin.One of its biggest backers is the Chinese-born crypto billionaire Justin Sun (best known for paying $6.2m at a New York art sale for a banana taped to a wall, then eating it). Before the inauguration, Sun pumped $75m into World Liberty. A few weeks later, the Securities and Exchange Commission paused an investigation into him for alleged securities fraud.View image in fullscreenUSD1 is currently valued at $2.3bn, the lion’s share of which comes from a $2bn transaction by MGX, a firm which happens to be chaired by the intelligence chief of the United Arab Emirates. That a company with ties to the government of an Arab petrostate should be able to make such a giant investment in a crypto venture generating profit for the sitting US president and his family goes against the grain of decades of robust accountability work countering conflicts of interest.“We’ve been pretty successful in this country rooting out corruption, or at least pushing it into the shadows,” Murphy, the US senator, told the Guardian. “Now it happens out in the open.”And it doesn’t stop there. Over the past few months Trump’s second son, Eric, has been frenetically traveling the globe in search of real estate deals, throwing to the winds the pledge Trump made in his first administration to eschew any foreign business transactions.In his second administration, Trump has made no such promise. All he has conceded this time, in a document released by his lawyers in January, is that the Trump Organization will avoid cutting business deals with foreign governments.Even that boundary has been pushed close to breaking point. Eric Trump sealed his first deal since Trump re-entered the White House in April.It involves the construction of the Trump International Golf Club & Villas outside the Qatari capital, Doha, as part of a $5bn luxury beachside resort. The company managing the development, Qatari Diar, is owned by the sovereign wealth fund of the Qatari government.Two weeks after the Trump Organization announced the deal, the president himself arrived in Doha as part of his three-country tour of the Middle East. He declared the trip a huge success, having drummed up trillions of dollars of business and investments for the US.The Guardian invited the White House to comment on complaints that the president has blurred his public duties with his family’s personal profit-making activities to a degree never before seen in the US. A White House spokesperson replied with a statement which they asked us to print in its entirety, so here goes:“There are no conflicts of interest. President Trump’s assets are in a trust managed by his children. It is shameful that the Guardian is ignoring the GOOD deals President Trump has secured for the American people, not for himself, to push a false narrative. President Trump only acts in the best interests of the American public – which is why they overwhelmingly re-elected him to this office, despite years of lies and false accusations against him and his businesses from the fake news media.”The argument that there is no conflict of interest because Trump’s business is handled by his children, specifically his sons – Don Jr leading on crypto and his social media empire, Eric on real estate – is an interesting one. Sons seem to be de rigueur, to the extent that members of Trump’s inner circle who lack them might feel the need to borrow one.View image in fullscreenTake other key figures in Trump’s cabinet, which is packed with so many banking and energy billionaires that it ranks as the richest presidential cabinet in modern history. Lutnick, the commerce secretary, who has a personal fortune of about $2.2bn, has been involved in various accusations of conflict of interest since he encouraged Fox News viewers to “buy Tesla”.At the start of this year Cantor Fitzgerald, the Wall Street firm Lutnick led for almost four decades, increased its investment in Strategy, the biggest corporate holder of bitcoin in the world. Cantor’s stake rose by several hundred million dollars to $1.3bn, research by the watchdog Accountable.US has found.At the same time, Lutnick was actively helping Trump create his strategic bitcoin reserve, a move that greatly strengthened the cryptocurrency.Last month, Lutnick divested himself of his Cantor stake, but he did so by transferring his ownership to his two sons. Cantor is now controlled by Brandon Lutnick, 27, and Kyle Lutnick, 28.Or take Robert F Kennedy Jr, the vaccine-skeptic health secretary. Under intense pressure from Democratic senators, he agreed to divest his 10% stake in any payout from an ongoing lawsuit in which he is engaged against Merck over its HPV vaccine, Gardasil.Government officials are not allowed under federal law to participate personally in official matters in which they have a financial interest. So what did Kennedy do? He transferred his stake in the case to one of his adult sons.And then there’s Mehmet Oz, the multimillionaire physician better known by his TV name, Dr Oz, whom Trump put in charge of Medicare and Medicaid. As the Washington Post has reported, Oz co-founded a health benefits company, ZorroRX, that helps hospitals save on prescription drugs.This would have been an indisputable conflict of interest, because in his job as head of the Centers for Medicare and Medicaid Services, Oz wields huge sway over hospital drug policies, and thus ZorroRX profits. Since taking up the position Oz, whose wealth is put at up to $300m, has divested himself of some of his investment portfolio and is no longer mentioned on ZorroRX’s website.View image in fullscreenHis fellow co-founder of ZorroRX, however, is still listed as the firm’s head of medical affairs. That’s his son, Oliver Oz.Under federal conflict of interest law, there is no prohibition on adult children managing the interests of parents who hold public office. Yet the spirit of the law does force us to reflect on why so many Trump administration leaders are so fond of handing sensitive money-making portfolios to their sons.“By giving over to your son, you are immediately raising questions about how separate you are going to be from the success of this business,” said Caputo of the Campaign Legal Center. “Will you be focused on what’s best for the public, or will you be guided in your decision-making by what would most benefit your family?”In the last analysis, what matters most perhaps about the financial dealings of the Trump administration is what impact they are having on the American people. In particular, what is it doing to the 77 million voters who put their trust in Trump and sent him back to the Oval Office?Trump returned to the White House partly on his promise to working-class Americans that he would “drain the swamp”, liberating Washington from the bloodsucking of special interests. Yet a review by the Campaign Legal Center found that Trump nominated at least 21 former lobbyists to top positions in his new administration, many of whom are now regulating the very industries on whose behalf they recently advocated.Eight of them, the Campaign Legal Center concluded, would have been banned or restricted in their roles under all previous modern presidencies, including Trump’s own first administration.They include Pam Bondi, the US attorney general. She approved the gift of the Qatari luxury jetliner as “legally permissible”, having herself worked as a lobbyist for Qatar.Trump’s other great pledge was that he would put the wellbeing of “forgotten” working people before that of the vested elites. His appeal was pitched at the millions of rural and working-class Americans who have languished from mounting income inequality, the decline of manufacturing jobs in the globalised economy, and what he claimed was the negative effects of millions of undocumented immigrants.Evan Feinman has witnessed personally and up close how this promise has fared in Trump 2.0. For the past three years, Feinman was busy leading a $42.5bn program created by Congress to bring affordable high-speed internet to every American home and business that needed it.The project was vast and ambitious, on a par with the rural electrification drive that transformed the heartlands of America in the 1930s. Located within the US commerce department, its success is critical to the future prosperity of millions of Americans, especially those in hard-bitten rural areas of the sort that solidly backed Trump in the last election.Studies have shown that giving families access to the internet improves the grades of school students, increases college enrolment and reduces the likelihood of households falling into debt. It also helps older Americans stay in their own homes and avoid residential care.By the inauguration, the broadband project was well under way, with several states only weeks away from breaking ground and laying the cables. Then Lutnick took over the reins of the commerce department.Within a days of his confirmation, Lutnick met with senior managers and informed them he wanted to scale back on the use of fibre optic and switch to satellite. According to an account of the meeting that was given to Feinman by someone present, Lutnick specifically inquired after his friend Musk, the CEO of Starlink, which provides internet services through low-Earth orbit satellites.View image in fullscreenDays after that, Feinman was told he was being let go. His contract was up for renewal, and it wasn’t being extended.“I was dismayed,” Feinman told the Guardian, insisting that his distress was not so much related to his own dismissal but out of concern for the Americans who would be harmed by the shift. By his reckoning, satellite internet would not only be slower than broadband, it would also be much more expensive – costing users an extra $840 a year in fees.“For Americans in rural locations, that’s going to really hurt. Many of the president’s strongest supporters – up to hundreds of thousands of families who voted for Trump – are going to see slower, more expensive internet services, and all to the benefit of the wealthiest man on earth.”According to some estimates, Musk’s Starlink stands to make $10bn to $20bn should the shift from broadband to satellite internet go ahead.The episode has left Feinman “deeply saddened. I see my nation harming itself in ways that are inexplicable and entirely avoidable.”He fears for rural Americans who will pay the price. “These are communities who put their trust in this administration. They are going to find that their trust has not been honored, and it will be to their significant future detriment.” More

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      in US Politics

      ‘Stay below the radar’: corporate America goes quiet after Trump’s return

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      From vast protests and all-caps social media posts to acrimonious legislative hearings and pugnacious White House statements, Washington has perhaps never been noisier. But since Donald Trump’s return to office, one corner of civil society has been almost eerily quiet.Those leading corporate America rapidly turned down the volume after the president’s re-election. Gone are the days of political and social interventions, highly publicized diversity initiatives and donations to important causes.For months, some of the most powerful firms in the world have nervously navigated a dangerous US political landscape, desperate to avoid the wrath of an administration as volatile as it is vocal.“CEOs like two things. They like consistency and predictability,” said Bill George, former chairman and CEO of Medtronic and serial board director. “They like to know where things are going. No one can figure out where this administration’s really going, because everything is transactional.”View image in fullscreen“Stay below the radar screen,” George has been advising senior executives across the US. “Do not get in a fight with this president.”Industry leaders from David Solomon of Goldman Sachs to Dara Khosrowshahi of Uber extoled the benefits of “Trump accounts” for babies this week. It was the latest example of knee-flexing that began on the patio of Mar-a-Lago in the aftermath of Trump’s victory last November.The genuflections have been backed by big money, with millions of dollars thrown into the president’s inaugural fund by companies and executives. That started to look like chump change before long. Amazon reportedly paid $40m for a documentary about Melania Trump. Apple announced plans to invest $500bn in the US.But those moves do not appear to have bought much favor. The White House accused Amazon of being “hostile and political” following a report (upon which the company later poured cold water) that it would start disclosing the impact of Trump’s tariffs on prices. And the president threatened Apple with vast tariffs.No CEO seemed closer to Trump than Elon Musk, the billionaire industrialist behind Tesla and SpaceX, who gave almost $300m to Republican campaigns last year, and worked in the administration for months. Their explosive fallout, days after Musk’s exit, prompted the president to threaten the cancellation of federal contracts and tax subsidies for Musk’s companies.View image in fullscreenThe pair’s rupture underlined why many executives are struggling to trust the president, according to Paul Argenti, professor of corporate communication at the Tuck School of Business at Dartmouth. “The mercurial nature of this guy kind of just seeps in, and people start to realize they’re dealing with something that’s a bit more difficult.”His advice? “Proceed with extreme caution.”“Loyalty only goes one way with Trump,” said Dan Schwerin, co-founder of Evergreen Strategy Group, and former speechwriter for Hillary Clinton, who has previously worked with firms including Levi Strauss and Patagonia. “This is like doing business with the mafia: you’re not going to win, and you’re not going to be safe.”The standard playbook is clear: “You make a big splashy announcement: the details don’t matter, you don’t have to follow through, but you placate the White House,” said Schwerin. “That maybe buys you a little time and a little goodwill.“But history suggests that Trump will do whatever is best for Trump, and he will turn on you in an instant, if it’s better for him. And that is true for his friends, so it will certainly be true for a company that he has no loyalty to.”Extreme caution has become the name of the game – anything to avoid your company getting drawn into the crosshairs of this administration. But companies can’t just focus on the president: they have shareholders, customers and employees to answer to.View image in fullscreen“You can’t base everything on getting through the next four years,” said George. “Yeah, it’s going to be chaotic. Yes, it’s going to be challenging. But you better hold firm to your purpose and your values.”He pointed to retailer Target, where he served on the board for 12 years. “They were very, very big on differentiating themselves from Walmart, using diversity as the criteria – and particularly being, they called themselves, the most gay-friendly company in town.“And then [Target CEO] Brian Cornell, six days after the inauguration, abandoned all that,” said George. The chain faced a backlash – and boycotts – for abruptly announcing the rollback of diversity, equity and inclusion (DEI) initiatives. Breaking his silence in an email to employees three months later, Cornell claimed: “We are still the Target you know and believe in.”Contrast this with Costco, another retailer, which in January faced a shareholder proposal against DEI efforts from a conservative thinktank. The firm’s board robustly defended its “commitment to an enterprise rooted in respect and inclusion” before the proposal was put to its investors for a vote.“They got a 98% vote to stay the course, to stay true to what they were,” said George. “And their customer base is very conservative. This is not like they have some liberal customer base.”Argenti believes the period of strategic silence by many companies, and knee-flexing to the White House, might be coming to a close following Musk’s messy exit. “We’re at an inflection point,” he said. “There’s going to period where people realize you’re damned if you do and damned if you don’t.”CEOs of companies counting the cost of Trump’s policies are “not going to suffer in silence”, he said. “You can’t win. It’s not like you can be secure in knowing if you follow this strategy, he’ll leave you alone.”View image in fullscreen“We are starting to see the pendulum swing back,” according to Schwerin, who claimed the administration’s erratic execution of tariffs had “opened some people’s eyes” that its policies were bad for business.“I think it’s crucial that we start to see a little more pushback. Better to have a backbone than to just bend the knee.”On controversial issues at the heart of political discourse, however, George does not expect much of a shift from CEOs. “It is radio silence, and I think you’ll see that continuing. There’s not much to be gained from speaking out today.”“Stick to your lane,” he has been counseling executives. “If you’re a banker, you can talk about the economy. If you’re an oil expert … talk to the energy industry. But you can’t speak ex-cathedra to everyone else.”“Only a handful” of business figures are deemed able to stand up and make bold public statements on any issue, according to George, who points to Jamie Dimon, the veteran JPMorgan Chase boss, and Warren Buffett, the longtime head of Berkshire Hathaway.“There are certain people who are really hard to take on. Jamie’s one,” he said. “If you were president of the United States, would you take on Warren Buffett?” More

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      in US Politics

      White House calls Amazon ‘hostile’ for reportedly planning to list tariff costs

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      The White House accused Amazon of committing a “hostile and political act” after a report said the e-commerce company was planning to inform customers how much Donald Trump’s tariffs would cost them as they shopped.The press secretary, Karoline Leavitt, was responding to a report in Punchbowl News, which, citing a person familiar with the matter, reported that Amazon would begin displaying on its site how much the tariffs had increased the prices of individual products, breaking out the figure from the total listed price.“Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?” Leavitt asked during a press briefing.Trump himself called Jeff Bezos, Amazon’s billionaire founder, shortly after the report published to complain about the change, according to multiple reports.Amazon’s online marketplace has seen prices rise across the board since Trump announced sweeping tariffs at the start of April, particularly on China, where many products listed on Amazon.com ship from. In response, the company has pressured its third-party sellers to shoulder the burden of the extra import costs rather than pass them on to customers. Amazon did not immediately respond to a request for comment.“This is another reason why Americans should buy American,” Leavitt continued, though Amazon is headquartered in Seattle.Amazon moved to distance itself from the report, saying the idea had been considered by Amazon Haul, the company’s recently launched low-cost shopping hub, but had been rejected.“The team that runs our ultra-low-cost Amazon Haul store considered the idea of listing import charges on certain products. This was never approved and is not going to happen,” said Tim Doyle, Amazon spokesperson.Online shopping has been upended by Trump’s trade policies. The day before the White House took aim at Amazon, discount retailers Temu and Shein, which ship from China, began displaying 145% “import charges” in customers’ totals to reflect the surcharge on Chinese goods.Asked if the strident statement from the White House signaled a rift between Trump and Bezos, who stepped down as CEO in 2021 and donated $1m to Trump’s inauguration fund earlier this year, Leavitt said: “I will not speak to the president’s relationships with Jeff Bezos.”Bezos and Trump endured a strained relationship during the president’s initial run for the White House. During the 2016 campaign, the Amazon founder publicly argued that some of Trump’s rhetoric, including threats to lock up his political opponents, damaged democracy, while Trump accused the tech giant of failing to pay enough taxes.Scrutiny of Trump’s first term by the Washington Post, which is owned by Bezos, angered the US president. He was further infuriated by Bezos’s apparent refusal to intervene. In a bid to pile pressure on Amazon, Trump threatened to block federal aid for the US Postal Service unless it hiked shipping rates for online firms.Since Trump’s return to power, however, Bezos has taken a noticeably different approach to the president. He attended Trump’s inauguration, alongside a string of other big tech founders, and Amazon donated $1m to Trump’s inauguration fund.Days before last November’s presidential election, the Washington Post announced its editorial board would not endorse a candidate for the first time in more than three decades – prompting an exodus of subscribers. Bezos insisted the move was a “principled decision” and claimed that “inadequate planning” had led to the last-minute call.The Post went a step further in February, announcing an overhaul of the newspaper’s opinion section to focus its output “in support and defense of two pillars: personal liberties and free markets”, Bezos said. The decision angered readers and staff and prompted the resignation of the opinions editor, David Shipley.His actions drew a sharp rebuke from Marty Baron, the highly regarded former editor of the Washington Post, who told the Guardian that Bezos’s plan for the newspaper’s opinion section amounted to a “betrayal of the very idea of free expression” that had left him “appalled”.Amazon, meanwhile, is reportedly paying some $40m to license a documentary on the life of the first lady, Melania Trump. More

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      ‘They’ve lost my trust’: consumers shun companies as bosses kowtow to Trump

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      In late January, Lauren Bedson did what many would likely find unthinkable: she cancelled her Amazon Prime membership. The catalyst was Donald Trump’s inauguration. Many more Americans are planning to make similar decisions this Friday.Bedson made her move after seeing photos of Jeff Bezos, the Amazon founder, sitting with other tech moguls and billionaires, including Elon Musk, Mark Zuckerberg and Google’s Sundar Pichai, just rows behind Trump at his inauguration.“I just couldn’t stand to see them so cowardly,” Bedson, of Camas, Washington, told the Guardian. “I lived in Seattle for over a decade. I was a fan of Amazon for a long time, I think they have a good product. But I’m just so disgusted. I don’t want to give these billionaire oligarchs any more of my money.”It’s a sentiment that many Americans have been feeling since Trump entered the White House. Companies and business leaders who were once passive or vocally critical of Trump are now trying to cozy up to him, leading consumers to question the values of the brands they used to trust. A recent Harris poll found that a quarter of American consumers have stopped shopping at their favorite stores because of shifting political stances.Many are being inspired by calls to boycott coming from social media. One boycott has gone viral over the last few weeks: a “blackout” of companies that dropped some of their diversity, equity and inclusion (DEI) goals, including Target, Amazon and Walmart, is planned for 28 February with protesters planning to halt all spending at these corporations for the day.View image in fullscreenBut people are also making the decision to boycott at their kitchen tables, trying to figure out how to resist Trump, and perhaps corporate capitalism at large, within their own communities.The Guardian asked readers how their shopping habits have changed over the last few months, as the political climate started to shift after Trump’s win. Hundreds from across the country said that they have stopped shopping at stores such as Walmart and Target that publicly announced the end of DEI goals. Dozens like Bedson had cancelled long held Prime accounts. Others have shut down their Facebook and Instagram accounts in protest of Meta.“I’m just trying to do little things that make me feel a little bit empowered, to stake my claim against what’s happening and how companies are acting in ways that are opposed to my values,” said Kim Wohlenhaus, of St Louis, Missouri, who cancelled her Prime membership, deleted her Meta accounts and has stopped shopping at Target. “It feels good to be able to do something.”Erica Bradley, of Reno, Nevada, said she stopped shopping at Target because of their changing DEI policies.“I don’t plan on going there ever again, just because I feel like they’ve shown that they’re not really committed to these things,” Bradley said. “They’ve lost my trust.”View image in fullscreenFor many consumers, the shift away from the big companies has revealed how much they have come to rely on them. As of last spring, 75% of American consumers had Amazon Prime memberships, a total of 180m Prime accounts, according to Bloomberg.Bedson said cancelling her account made her aware of a culture of consumerism in American where “in some ways, it feels like we don’t have a choice”.“Amazon is so convenient,” she said. “I think we all have become very complacent or complicit, and it’s hard to make these changes. But on the other hand, what else can we do?”It’s been a year since Bradley cancelled her Prime account, after she saw Amazon’s union busting. She recalls a transition period as she was adjusting to life without Prime, but it ultimately led her to spend less overall.“I just decided I don’t really need a lot of these things. Like I don’t need more clothes, I don’t really need more house decorations, which are things I used to spend a lot of money on,” Bradley said. “It’s not retail therapy anymore.”The Harris poll found that a third of Americans are similarly trying to “opt out” of the economy, cutting down on overall spending as the political stances of corporations have become murky.View image in fullscreen“It’s like a Whac-a-Mole now,” Wohlenhaus said. “You could really look in any direction and find something you dislike about the way corporations are caving to this administration.”Wohlenhaus said she has started to prioritize shopping at local businesses. She kept her Costco membership, since the company affirmed its DEI policies.During Joe Biden’s presidency, many of the boycotts against companies actually came from conservatives who felt corporations were caving to a “woke” mob. But boycotts didn’t amount to any serious consequences – with two exceptions. Bud Light saw a drop in sales after it sponsored a post by a transgender influencer and Target removed some of its Pride merchandise after conservative backlash.It’s unclear what the consequences of the current backlash will be. But Wohlenhaus and others voiced optimism that consumers are thinking critically about the choices they’re making at checkout.“Hopefully if thousands of other families are doing what we’re doing, I think they’ll start to feel it,” she said. “We don’t care about your products as much as we care about those values that we cherish.” More

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      UK marketplace sellers face ‘second Brexit’ hit from Trump’s US import rules

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      Many UK-based independent sellers on marketplaces such as eBay and Amazon could suffer a significant hit to US sales from planned changes to import rules under Donald Trump, with experts comparing the impact to a second Brexit.The new rules, which mean all parcels originating or made in China and being sold into the US must pay import duty – of as much as 15% on fashion items – and an additional 10% tariff, are also expected to impact bigger online clothing retailers such as Asos and Boohoo.The changes were introduced at the start of February in an attempt to protect US retailers from a surge in competition from the likes of Chinese online marketplaces Shein and Temu, but were indefinitely paused after the US customs service struggled to cope with the massive increase in parcels requiring checks last week.However, they are expected to be implemented within the coming months, potentially driving up prices for US consumers and hitting sales for online retailers.Before the change, parcels with a value of less than $800 (£635) shipped to individuals in the US were exempt from import tax and did not pass through the usual customs checks. That scheme, originally designed to help smooth online shopping, is being revoked after it emerged that the number of shipments under the “de minimis” rules had ballooned to more than 1bn, valued at $54.5bn by 2023 – most of them from China or Hong Kong via firms including Shein and Temu.“You are looking at an increase of $30 to $50 per consignment [group of parcels],” said Brad Ashton at the advisory firm RSM. “It is creating a perfect storm for online retailers putting goods into the US market. It has a lot of the hallmarks of Brexit in terms of its potential impact on small traders.“Businesses will see their margins eroded because costs will increase. We may get to a point where the changes make a UK business uncompetitive in selling to the US.”The widespread use of Chinese factories for many British brands, particularly in fashion, means businesses such as Asos and Boohoo will be drawn in, as well as many UK independent marketplace sellers.It will not just affect goods made in China and then sent from the UK, but potentially a much wider array, as any package containing even one product made in China may have to pay import tax and pass through customs checks, further increasing costs, according to experts.There is also an expectation that the de minimis rules will eventually be scrapped for all imports, no matter their origin.About $5bn worth of parcels were exported to the US from the UK under de minimis rules in 2021, according to a Congressional Research Service analysis of data from US Customs and Border Protection. About 80% of that was estimated to be related to online retail, with fashion likely to be a large proportion of it.Chris White, at the logistics company Fulfilmentcrowd, said that during the brief period when the rules were in place in early February, one-third of the parcels it shipped to the US from the UK were found to be of Chinese origin and subject to the new taxes.Fast-fashion specialists Asos and Boohoo sell about £300m of clothing a year to the US. Both are already struggling to compete with the rise of Shein and high street retailers, which have revived after the Covid pandemic. John Stevenson, a retail analyst at Peel Hunt, said Asos and Boohoo would have to “adjust prices or take a view on [the] profitability of operating in the US”.As well as the higher tax charges, customs checks required after the rule change will add as much as two days to the processing of orders, making UK retailers less competitive with US-based operators on the speed of delivery.skip past newsletter promotionafter newsletter promotionStevenson said the hit to Asos and Boohoo was “not business-critical” in the way it could be for Shein or Temu, which he believed were heavily reliant on the tax benefit, but that it would have an impact.In the short term, online sellers will probably have lower sales because of uncertainty among US shoppers over possible taxes. White said that during the period when the new rules were in place, similar parcels were loaded with different levels of duty as local customs officers made different decisions.He said a further element of the rule change might be to expose brands that were “trading on an image of being British or European” as being “made in China and not Savile Row”, potentially damaging their appeal.There would be “lots of crossed fingers and puzzled faces” over the changes in legislation, with retailers potentially opening more US warehousing or, longer term, to switch sources of supply, White added.Boohoo closed its US warehouse earlier this year, and Asos is scheduled to close its facility there in November. However, a reversal could be on the cards if the de minimis rules are confirmed. Many fast-fashion companies have already diversified their supply chains – making more in India, Bangladesh or Turkey. Trump’s tax changes could accelerate this further.Shein is reportedly incentivising Chinese suppliers to set up in Vietnam, according to a report by Bloomberg.It is not clear when the new rules might be implemented as the US tries to put the technology and workforce in place to handle the new system. Experts say it could take weeks or months.While there is a chance that Trump will change his mind, as he has done on tariffs with Canada and Mexico, no business can bet on which way the US might jump. More

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      Want to defeat Trump? Support unions | Eric Blanc

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      Can anybody stop Trumpism? Progressives are understandably worried. Though federal judges may temporarily pause some of the new administration’s most brazenly illegal executive orders, a hyper-conservative supreme court lies waiting in the wings. And looking ahead to 2028, it’s hard to feel hopeful about defeating Maga given that the Democratic party continues to hemorrhage working-class voters.But there’s no need to despair. A powerful force in our society has the legitimacy, resources and leverage to turn things around: organized labor. Unions can beat back Donald Trump’s attacks, expose his sham populism, and – by uniting workers around their shared economic interests – help isolate his xenophobic scapegoating.Rather than hibernate for the next four years, or limit ourselves to posting online about the president’s latest outrages, each of us can lend support to workers organizing at federal agencies, schools, Starbucks, Amazon, auto plants and beyond. Just as importantly, we can expand the labor movement’s reach by unionizing our own workplaces. It won’t be easy to counter Trump’s shock-and-awe offensive, or to fill the void left by the Democrats’ disarray. But it’s both necessary and possible.Consider Trump’s latest moves. While he can appoint his cronies to head crucial civil service agencies, it is still unionized federal employees who make these institutions run. And their resistance to his power grab – through defying the new administration and enlisting public support – constitutes our best hope for protecting these services upon which millions of Americans depend.Remember the government shutdown during the first Trump administration? By late January 2019, the crisis had already lasted a month, with no end in sight. But then the flight attendant leader Sara Nelson began making national waves by agitating for a general strike, stressing the public safety dangers of not paying the people whose labor makes air travel possible. On 25 January, various air traffic controllers refused to come into work, resulting in a temporary grounding of New York flights. Only a few hours later, Trump announced a deal to end the shutdown.Resisting Maga’s barrage is crucial. But it would be a mistake to fight only on the right’s chosen political terrain. Trump’s achilles heel is that he won by speaking to the economic grievances of working people, but heads an administration of and for billionaires obsessed with maximizing their own profits and control. Centrist Democrats have generally been unable to expose this contradiction, as they too are often tied to big business. But combating corporate greed is the labor movement’s bread and butter, which is why unions in our era of rampant inequality are experiencing record-high levels of popularity, even among conservatives and independents.The administration’s connection to the world’s richest men – Elon Musk, Jeff Bezos, Mark Zuckerberg – makes it easier for anti-Trump sentiment to channel into workplace battles. When Tesla factory workers unionize, or coders at X push back against their boss, this is now de facto a confrontation with the White House. By scaling up high-publicity union drives and strikes for economic dignity across the country, labor and its supporters can force politicians to show which side they’re really on.Even labor struggles focused on economic issues can have dramatic political repercussions. Faced with Trump’s efforts to deprive workers of the right to unionize by kneecapping the National Labor Relations Board, every union drive is now on a collision course with the new regime. Moreover, since workplaces bring together people from a wide range of backgrounds and ideologies, union organizing requires listening to and persuading people who disagree with us, a skill sorely lacking among most progressives today. Effective persuasion happens not by haranguing or shaming others, but rather by finding points of commonality – often economic – around which working people can come together.Through this patient process of building solidarity across differences, labor organizing is uniquely positioned to convince large numbers of Americans to direct their anger at the bosses above (and their political proxies), instead of immigrants or trans people. Unsurprisingly, union members voted for Kamala Harris by a 16-point margin in the last election; indeed, Trump would probably have lost had the US labor movement represented a significantly higher percent of the American workforce.Despite Trump’s constriction of labor rights, conditions overall remain favorable for union growth. Organized labor, for example, is sitting on an unprecedented war chest of roughly $38bn in assets, over a third of which are highly liquid. This is more than enough to defend against Project 2025 while simultaneously going on the offensive against corporate America. Big, assertive unionization battles could lay bare Trump’s oligarchic allegiances, while pressuring Democratic politicians to champion economic populism.skip past newsletter promotionafter newsletter promotionUnfortunately, it’s unclear whether union officials will finally find the chutzpah to break from business as usual. Most remain exceedingly risk averse, narrowly focused, and deferential to establishment politicians. For that reason, labor’s post-pandemic upsurge has been driven from below, with young, left-leaning workers taking the lead – most recently at the Whole Foods in Philadelphia that voted for a union last Monday. But to scale up widely enough to transform the US, this grassroots uptick will need deep-pocketed labor leaders to fully jump into the fight.It remains to be seen whether unions can rise to the challenge of Trumpism. For the sake of our democracy, our livelihoods, and our planet, let’s hope they do.What’s giving me hope nowWhat’s giving me hope is that Philadelphia Whole Foods workers last Monday voted to unionize, 130 to 100. It’s a really big deal: this was only the second time American workers have defeated Amazon in a union election. Many in the labor movement were expecting a loss, since Maga is now in office and since management – headed by Trump’s new billionaire buddy Bezos – went scorched earth against the nascent union effort. But a multiracial crew of young, self-organized, left-leaning workers proved the skeptics wrong, as so often has been the case since 2021. Labor passed its first big test under Trump, and hopefully we’ll see many similar wins in the months to come.

      Eric Blanc is the author of We Are the Union: How Worker-to-Worker Organizing is Revitalizing Labor and Winning Big, which is out with UC Press in February 2025 More

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      Amazon donates $1m to Trump’s inaugural fund as tech cozies up to president-elect

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      Amazon is the latest tech giant to donate to Donald Trump’s inaugural fund.The company plans to give $1m to the fund, first reported by the Wall Street Journal. Amazon follows Meta, Facebook’s parent company, also handing over $1m to Trump’s inaugural committee. OpenAI CEO Sam Altman said on Friday that he, too, would make a personal donation of $1m, first reported by Fox News.As Trump prepares to enter office for a second time, several tech titans are cozying up in hopes of favorable treatment for their businesses. Amazon founder Jeff Bezos is slated to meet with Trump next week. And Meta CEO Mark Zuckerberg dined with him at his Mar-a-Lago estate last month. Google CEO Sundar Pichai reportedly had plans to meet with the president-elect this week at his club as well. And Time magazine, which is owned by Salesforce CEO Marc Benioff, has named Trump its “person of the year”.OpenAI’s Altman says that Trump will be a leader in technological progress. “President Trump will lead our country into the age of AI, and I am eager to support his efforts to ensure America stays ahead,” he said in a written statement to the Guardian.Donations to inaugural committees are fairly standard for big businesses looking to make nice with incoming administrations. Amazon donated $57,746 to Trump’s first inaugural fund in 2017, according to OpenSecrets. Google and Microsoft also donated. Meta confirmed to the Guardian that it did not donate that year.For Joe Biden’s 2021 inauguration, Amazon said the administration did not accept donations from tech companies, according to the Wall Street Journal.Trump is offering bonus perks to donors who give at least $1m to his inaugural committee, according to the New York Times. Those include several tickets to activities planned around the event, such as dinners with Trump, his cabinet picks and JD Vance.Bezos, who owns the Washington Post, had long been the focus of Trump’s ire. The president-elect had blasted the newspaper over its coverage of him, often zeroing in on Bezos for being at fault. At one point in 2018, Trump called the paper “the Amazon Washington Post” and said it had “gone crazy against me”. He also alleged the paper lobbied on behalf of Amazon.Those days of conflict may be over. Before the election, the Washington Post broke with longstanding tradition and announced it would not endorse a candidate in the presidential race, a move widely seen as Bezos not wanting to rankle Trump. Bezos defended the decision, saying it was to avoid “a perception of bias”.skip past newsletter promotionafter newsletter promotionWhen Trump won the election, Bezos praised him on X. “Big congratulations to our 45th and now 47th President on an extraordinary political comeback and decisive victory. No nation has bigger opportunities,” Bezos wrote. “Wishing @realDonaldTrump all success in leading and uniting the America we all love.”Amazon CEO Andy Jassy also lauded the win on X, saying it was a “hard-fought victory” and that “we look forward to working with you”. Amazon’s stock has risen 14% since the election. Amazon did not return a request for comment. More