Business

Subterms

    More stories

    • 163 Shares159 Views

      in US Politics

      Trump temporarily spares carmakers from US tariffs on goods from Canada and Mexico

      by

      Donald Trump has temporarily spared carmakers from sweeping US tariffs on goods from Canada and Mexico, one day after an economic strike on the US’s two biggest trading partners sparked warnings of widespread price increases and disruption.The US president extended his aggressive trade strategy at midnight on Tuesday by targeting the country’s two closest neighbors with duties of 25%.US retail giants predicted that prices were “highly likely” to start rising on store shelves almost immediately, raising questions about Trump’s promises to “make America affordable again” after years of heightened inflation.After a call with top executives at General Motors, Ford and Stellantis, however, Trump approved a one-month exemption from tariffs on “any autos coming through” the US, Mexico and Canada, the White House press secretary, Karoline Leavitt, announced on Wednesday.The exemption has been granted “at the request of the companies”, Leavitt told reporters, “so they are not at an economic disadvantage”.While Trump has claimed tariffs will embolden US industry by forcing global firms to build factories in the US, Ford CEO Jim Farley publicly cautioned last month that imposing steep tariffs on Canada and Mexico could “blow a hole” in the country’s auto industry.Shares in large carmakers rose sharply, with GM up 7.2%, Ford up 5.8% and Stellantis up 9% in New York. The benchmark S&P 500 increased 1.1% on Wall Street.A separate call between Trump and Justin Trudeau, the Canadian prime minister, did not lead to any larger breakthrough, however. Trudeau “largely caused the problems we have with them because of his Weak Border Policies”, Trump declared on his Truth Social platform after they spoke. “These Policies are responsible for the death of many people!”Trudeau insisted there had been improvements at the border, the US president claimed, adding that he told him this was “not good enough”.During Trump’s joint address to Congress on Tuesday evening, he acknowledged that tariffs would cause disruption. There will be “a little disturbance, but we’re OK with that”, he said.He blamed cost of living challenges on his predecessor, Joe Biden, from whom he claimed to have inherited “an economic catastrophe and an inflation nightmare”.The US economy has, in fact, remained resilient in recent years, and inflation has fallen dramatically from its peak – at the highest level in a generation – three years ago.“Among my very highest priorities is to rescue our economy and get dramatic and immediate relief to working families,” said Trump. “As president, I am fighting every day to reverse this damage and make America affordable again.”skip past newsletter promotionafter newsletter promotionTrump spoke on Wednesday with Trudeau. “Even though you’re a very smart guy, this is a very dumb thing to do,” Trudeau told Trump publicly after the US imposed tariffs this week.Trump had initially pledged to target Canada and Mexico with tariffs on his first day back in office. Upon his return, however, he said he was considering imposing the tariffs at the start of February. Last month, he offered Canada and Mexico a one-month delay at the 11th hour.Trump and his allies claim that higher tariffs on US imports from across the world will help “Make America great again”, by enabling it to obtain political and economic concessions from allies and rivals on the global stage.But businesses, both inside the US and worldwide, have warned of widespread disruption if the Trump administration pushes ahead with this strategy.Since winning November’s presidential election, the president has focused on China, Canada and Mexico, threatening the three markets with steep duties on their exports unless they reduced the “unacceptable” levels of illegal drugs crossing into the US. More

    • 113 Shares119 Views

      in US Politics

      ‘The relationship is broken’: Canadians respond to Trump’s tariffs

      by

      “Since Donald Trump began his tariff threats against Canada and his ‘jokes’ about making Canada the 51st US state, I have not bought a single product originating in the US,” said Lynne Allardice, 78, a retired business owner from New Brunswick, Canada.“Not a single lettuce leaf or piece of fruit. I have become an avid reader of labels and have adopted an ‘anywhere but the US’ policy when shopping. I will not visit the States while Trump remains in office, and most of the people I know have adopted the same policy.”Acquaintances, Allardice added, were selling US holiday properties they had owned for many years.View image in fullscreenMany Canadians have responded to Trump’s economic tariffs and political messaging with a consumer boycott of US products and services – no more California wines or American Bourbon; local shopping instead of Amazon Prime; analogue entertainment and cable TV instead of Netflix; holidays in the Kootenays instead of Disney World.Hundreds of people from across Canada shared with the Guardian their reactions to Washington’s political and economic gear change, and how they may be affected personally.Many expressed defiance and anger over what they saw as a hostile new US administration that was no longer an ally and, voicing economic fears and a sense of permanent loss, said they would no longer buy US goods nor cross the border again – at least while Trump was in office.Pam, a 64-year-old retired woman from British Columbia, said she and her husband had cancelled a five-week trip to Palm Springs, losing their $5,000 (£3,900) deposit. They were planning, she said, to buy a Honda truck now instead of a Ford.Many said their local supermarkets had displayed labels marking Canadian products and that they were happy to pay significantly more for non-US goods, for example 50% more for Mexican lemons; others said they hoped Canadian companies would expand offerings and services after cancelling Amazon Prime and streaming platform subscriptions.One woman from British Columbia who lives a 10-minute drive from the US border and is participating in the boycott pointed to the irony of having joined several Facebook groups promoting Buy Canadian campaigns – one of which had now ballooned to 1.2 million members.View image in fullscreenAmid fiery pledges to stand up to the US government, hundreds of Canadians shared grave concerns about the impact of the trade tariffs on their personal finances.Many said they were anxious about their retirement savings amid the market turmoil and economic uncertainty that have followed what they referred to as Trump’s “economic warfare”.Scores said hiring and budget freezes were already happening in the companies they worked for, while a number of business owners highlighted a loss of sales since Trump’s election that was likely to worsen.People working in sectors including hospitality, tourism, retail, entertainment, the wider service industry, manufacturing, the auto industry, aviation, property and construction, agriculture, marketing and financial services, among others, shared concerns about their business or line of work being negatively affected by the tariffs and resulting economic uncertainty.Ian Hallett, the owner of an architectural bureau, from Seaforth, Ontario, said: “With steel, wood and aluminum tariffs, the construction industry will be hit hard and fast, which means a slowdown in building. We will likely have to lay off staff.”The owner of a landscaping business in Calgary, Alberta, said his sector would be “highly impacted” by the tariffs. “People won’t spend money to maintain or redesign their lawn. I may have to reduce my workforce and potentially shut down the season early. This will have a domino effect,” he said.View image in fullscreenAdrian, a business owner from Northern Ontario, said: “The tariffs have created chaos, anxiety and depression, a loss of hope. My US sales have dropped and if the tariffs [stay in place], I will have to close my business, as American customers are half my sales.”A 65-year-old support worker at an elementary school from Toronto said: “I’m worried my husband may lose his manufacturing job because the company he works for has a lot of American customers. Tariffs may make the building materials products his company makes too expensive.”Various business owners who were expecting a collapse in North American sales predicted that it would be impossible to make up the difference by increased exports to Europe or other parts of the world, where the markets were either saturated or shipping was too expensive.“I’m stressed about my investments and the financial markets, and I’m concerned about prices going up,” said Susan, an accountant from Toronto, mirroring the fears of many.While most of those who got in touch were outraged by Trump’s America First protectionism, scores of Canadians signalled an appetite for an isolationist approach for Canada, too.“I think that we should take a tip from Trump and build our own wall to keep the USA out,” said a 56-year-old single mother from Montreal. Scores of Canadians said they felt Canada needed to strengthen its military.Sarah from Nova Scotia said the Trump administration’s tactics and “threats against sovereignty, water, resources and territory” had “fired people up to be less dependent and integrated economically”.Antoine Delorme, a 43-year-old self-employed heavy machinery mechanic from Montreal, who has to order parts and material from the US every week, appeared to blame globalisation for Canada’s perceived vulnerability.skip past newsletter promotionafter newsletter promotion“With free trade, we lost a lot of economic independence. Many distributors are centralised south of the border [and] no longer need to keep Canadian facilities,” he said. Like many others, he felt Canada was now exposed, economically and militarily. “If the USA turns into a hostile neighbour, no one will be in a position to meaningfully help us,” he said.View image in fullscreenJean Whieldon, a retired journalist from Ontario, said: “We have become too dependent upon America – Trump is right about that. Who can we turn to for help and protection? Nato? The UK? Don’t make me laugh, it hurts too much.”Hundreds of people expressed fury over a perceived lack of solidarity from allied nations and were particularly critical of the British prime minister, Sir Keir Starmer, and King Charles.“Canada’s relationship with the rest of the world has changed for ever,” said Katy, a finance professional from Toronto. “We just came to the stark realisation that allies are an illusion. As we endure the Maga onslaught, our supposed ‘allies’, including Britain, remain silent. Our ‘head of state’, King Charles, remains silent. Nato countries remain silent. We will weather the economic storm, but [I am] not so sure about our relationships with other nations.”Canada, Katy added, could leave international partnerships as it was “blessed with innumerable natural resources”. “If things don’t change, then Canada needs to extricate itself and consider becoming a neutral country. Dismantling the constitutional monarchy is now a must. The Commonwealth is dead.”Hundreds of Canadians reported a palpable, freshly ignited rise of patriotism, as well as a kind of nationalism usually frowned upon in Canada.“Canadians have become much more nationalistic,” said a woman from Ontario. “Some of us have been booing at the US national anthem at hockey games, which is not typical Canadian behaviour. We are furious about the tariffs that will deeply hurt Canadian businesses and quite likely see other companies move their operations south of our border.”View image in fullscreenDonna, a retired woman living in a small city in British Columbia, said: “We have lost our trust in the USA as a friendly country. Patriotism was never something that Canadians celebrated enthusiastically. Today I see more Canadian flags than I have ever seen – in front yards, hanging from porches and hedges, and adorning cars. Both sides of the political spectrum and a majority of citizens are much more united than before.”A woman in her 40s from British Columbia who works in tech agreed: “There’s a huge sense of national unity around the country, and a lot of focused action to build our nation up.” She said she had “quit the US cold turkey”.“This is a shift unlike any I have seen in my lifetime, and unlike anything my parents have seen either. Canada is turning away from the US – if not forever, at least for a long time. Goodbye America, we’ll miss what we had, but not what you have become.”While some people said they were differentiating between the Trump administration and their American neighbours, others shared feelings of personal hostility towards the American population, saying they wanted to “stick it to” their “poorly educated neighbours to the south”, as one woman from British Columbia put it, echoing the remarks of many.Scores of Canadians said they had fallen out with American friends and even family members over the political tensions between the two countries and ideological disagreements over American and Canadian democracy, freedoms and Trump himself.View image in fullscreenA silver lining to the economic upheaval, various people pointed out, were renewed efforts to improve intra-Canadian trade between provinces.Matt, 41, a university employee from Vancouver Island, said: “Having a common opponent in the USA is drawing many people of my vast country together in ways that were seemingly impossible just a year ago. The work being done to dismantle inter-provincial trade barriers, with the potential to add tens to hundreds of billions of dollars to our economy, would never have had the political backing without Canada facing a significant external threat.”Most Canadians who got in touch felt that ties between Canada and the US had been permanently damaged.“The relationship is broken,” said Allardice, the pensioner from New Brunswick. “A great many Canadians hate the USA now. How can you remain on good terms with a neighbour who threatens your economy and jokes about bringing you to your knees?” More

    • 138 Shares189 Views

      in US Politics

      China and Canada retaliate after Trump trade tariffs come into effect

      by

      China and Canada unveiled retaliatory measures against the US after Donald Trump imposed his sweeping tariffs plan at midnight US time, despite warnings it could spark an escalating trade war.US tariffs have come into force of 25% against goods from Canada and Mexico, the US’s two biggest trading partners, and 20% tariffs against China – doubling the levy on China from last month.The duties will affect more than $918bn-worth (£722bn) of US imports from Canada and Mexico.China on Tuesday said it would impose fresh tariffs on a range of agricultural imports from the US next week. Its finance ministry said additional 15% tariffs would be imposed on chicken, wheat, corn and cotton, with further 10% tariffs on sorghum, soya beans, pork, beef, aquatic products, fruits, vegetables and dairy products.The Canadian prime minister, Justin Trudeau, said Ottawa would respond with immediate 25% tariffs on C$30bn-worth ($20.7bn) of US imports. He said previously that Canada would target US beer, wine, bourbon, home appliances and Florida orange juice.Tariffs will be placed on another C$125bn ($86.2bn) of US goods if Trump’s tariffs were still in place in 21 days.“Tariffs will disrupt an incredibly successful trading relationship,” Trudeau said, adding that they would violate the US-Mexico-Canada free trade agreement signed by Trump during his first term.Mexico’s president, Claudia Sheinbaum, was expected to announce her response on Tuesday morning, the country’s economy ministry said.Asian markets were down – after sharp falls in US markets on Monday – as Japan’s Nikkei fell 1.6%, Taiwan’s benchmark TWII index was off 0.5% and Hong Kong’s Hang Seng was down 0.$%.The Canadian dollar and the Mexican peso fell to their lowest levels in a month on Tuesday.In Europe, the FTSE 100 dropped by 57 points, or 0.65%, at the start of trading to 8,813 points, a day after rising more than 8,900 points for the first time. France’s CAC 40 fell 0.9% and Spain’s Ibex was down 0.8%.Trump and his allies claim that higher tariffs on US imports from across the world will help make America great again by enabling it to obtain political and economic concessions from allies and rivals on the global stage.Businesses, inside the US and worldwide, have warned of widespread disruption if the Trump administration pushes ahead with this strategy.Since winning November’s presidential election, the president has focused on China, Canada and Mexico, threatening the three markets with steep duties on their exports unless they reduced the “unacceptable” levels of illegal drugs crossing into the US.skip past newsletter promotionafter newsletter promotionWhile he slapped a 10% tariff on China last month, Trump has repeatedly delayed the imposition of tariffs on Canada and Mexico. The president has pledged to bring down prices in the US, but economists have warned that consumers in the country could be aversely affected by his trade plans.A 25% tariff on Canada and Mexico and a 10% levy on China would amount to “the largest tax increase in at least a generation”, according to the Peterson Institute for International Economics, a thinktank, which estimated such a move would cost the typical US household more than $1,200 each year.Trump has vowed to go further, threatening to introduce “reciprocal” tariffs on countries that have their own duties on goods made in the US. He has said these will come into effect as soon as next month.China’s finance ministry said in a statement: “The US’s unilateral tariff increase damages the multilateral trading system, increases the burden on US companies and consumers, and undermines the foundation of economic and trade cooperation between China and the US.”The ministry said products shipped from the US to China that departed before 10 March and arrived before 12 April would not be subject to the tariffs.Trump has said the tariffs on China are because the government has failed to stop illicit fentanyl entering the US, which Beijing says is a “pretext” to threaten China.“China opposes this move and will do what is necessary to firmly safeguard its legitimate interests,” a foreign ministry spokesperson, Lin Jian, said.Chris Weston, an analyst at the brokerage Pepperstone, said: “Market anxiety levels have been dialled up, and we see traders having to react aggressively and dynamically to the deluge of headlines and social posts confirming that tariffs on China, Mexico and Canada are to be implemented in full and as threatened.” More

    • 188 Shares169 Views

      in US Politics

      Read the signs of Trump’s federal firings: AI is coming for private sector jobs too

      by

      The Trump administration recently announced that it would be laying off approximately 6,700 workers at the Internal Revenue Service, about 8% of the people employed by the agency. Tens of thousands of federal employees at other agencies are also losing their jobs.The timing could not be worse. We’re in the middle of the tax season with corporations and individuals facing filing deadlines in March and April. Millions of returns will need to be processed. Refunds will be due. Questions will need to be answered. But that’s not all.In just a few short months, Congress will be debating – and probably passing – new rules that will significantly change our tax laws. Republicans are pushing to either extend or make permanent many of the provisions of the 2017 Tax Cuts and Jobs Act, most of which expire at the end of this year. There are proposals to eliminate taxes on tips, social security income and overtime wages. The Democrats will be fighting some of these provisions, arguing their effect on future deficits. Regardless, there will be an enormous amount of change to rules, forms and guidance that will need to be made by the IRS.The remaining employees at the agency, already demoralized and now seriously short-staffed, will now be asked to handle this looming workload. Taxpayers and their accountants will need to be patient. I can already foresee my profession’s future frustration as they wait for guidance on a myriad of tax changes that will affect their clients. After barely recovering from all the disruptions caused by the pandemic, these layoffs are sure to set things back.But let’s not pretend this isn’t part of a wider trend.We all know the technology already exists to do much of the work that many IRS employees do now. My clients already use tech platforms to automate their accounts payment and payments. These systems – which leverage AI and optical character recognition – can very accurately (and affordably) scan, read and extract data from any document and ensure that the information is integrated into their accounting systems, where payments are automatically scheduled for review and disbursement. Considering that most of the tax returns filed are done in a similar fashion – and are mostly routine – it seems obvious that similar systems could be doing the same functions, which would probably eliminate a much greater percentage of workers who have already been chopped by the current administration.Look what technology is doing elsewhere. The financing platform Klarna announced last summer it was laying off about 2,000 workers – half of its workforce – as a result of its new AI customer service system that did their work instead. Morgan Stanley, JP Morgan Chase, UBS and other Wall Street firms are building AI-based systems that are eliminating the need for investment analysts, wealth managers and other human workers. Google, Ikea, Salesforce and a number of other firms are rapidly replacing their workers with AI systems. Mark Zuckerberg has publicly said that AI applications will be doing the work of mid-level engineers at Meta this year.About $80bn was allocated to the IRS under Joe Biden’s Inflation Reduction Act to “modernize” tax collection. Government being the government, I’m sure that progress has so far been slower than it should be. But if you’re working at the IRS, or any federal agency, do you not see the writing on the wall? And if you’re working in customer service, marketing, accounting or any of these jobs in the private sector do you also not see what’s happening?The firing of federal workers is a preview of what’s about to happen in the corporate world. CEOs at numerous companies have already demonstrated that technology can do the work of people and replace them. And they’re just getting started. The tech companies like to say that AI will “work alongside” humans or “increase employees’ productivity” but that’s nonsense. Like the federal workers, many in the private sector are about to be replaced too. More

    • 150 Shares169 Views

      in US Politics

      Elon Musk’s quest for power has a new target: Wisconsin’s supreme court

      by

      He is slashing US government agencies, building electric vehicles and space rockets and running one of the world’s biggest social media platforms. But Elon Musk has still found time – and money – to meddle in a relatively obscure election in a state of 6 million people.The close ally of Donald Trump is spending millions of dollars in an effort to tip the scales in favor of a Republican candidate running for a seat on the highest court in Wisconsin. Critics regard it as a statement of intent by Musk to expand his political power in America by playing an insidious role in key races across the country.“It’s one of the most significant threats to our democracy in the current moment,” said Larry Jacobs, director of the Center for the Study of Politics and Governance at the University of Minnesota. “You’ve got money and power in one person who’s been given access to the upper echelon of the federal government. He’s fused the power of the Oval Office with his almost unlimited amount of money to support Republicans, both at the state level and national level.”Musk has grabbed attention during Trump’s first month in office with his so-called “department of government efficiency”, or Doge, a team of mostly young male software engineers who have laid waste to the federal government and dismissed thousands of workers in ways that have been challenged in the courts.Musk’s startling ascent was on vivid display when he spoke to reporters alongside Trump in the Oval Office and wielded a chainsaw before a cheering crowd at the Conservative Political Action Conference. Earlier this week, he held court at a cabinet meeting, where the president dared any of his officials to express discontent about Musk’s scorched-earth approach. No one did.But away from the TV cameras, Musk is also at work in Wisconsin, which holds an election for its state supreme court on 1 April. The vote will decide whether liberals maintain a 4-3 majority with major cases dealing with abortion, union rights, election law and congressional redistricting already under consideration by the court or expected to be argued before it soon.Such campaigns are now non-partisan in name only. Republicans are lining up behind Brad Schimel while Democrats are backing Susan Crawford. It could be the most significant US election since November, an early litmus test after Trump won every swing state, including Wisconsin.Crawford has received $3m from the state Democratic party, including $1m that the party received from the liberal philanthropist George Soros and $500,000 from the Illinois governor, JB Pritzker.Musk’s America political action committee is spending $1m to back Schimel, a former state attorney general who attended Trump’s inauguration last month. Another group Musk has funded, Building America’s Future, is spending $1.6m on TV ads attacking Crawford, a Dane county circuit judge. It reportedly had to withdraw one social media ad after it featured a photo of a different woman named Susan Crawford.Crawford told a recent meeting of the Wisconsin Counties Association: “Elon Musk is trying to buy a seat on our supreme court so Brad Schimel can rubber-stamp his extreme agenda.”Schimel denies that money would affect his independence on the court. He told reporters: “I don’t have any agenda that I’m working alongside anyone. I’m grateful for our supporters, but they’re getting nothing except me following the law.”But Musk has both business and political incentives to back him. Tesla, the electric car company owned by Musk, has a lawsuit pending in Wisconsin challenging the state’s decision blocking it from opening dealerships. The case could ultimately be decided by the Wisconsin supreme court and Schimel has not committed to stepping aside.Furthermore, in the event of a disputed election in the crucial swing state in 2028, the supreme court could be decisive. Musk tweeted last month: “Very important to vote Republican for the Wisconsin Supreme Court to prevent voting fraud!” And as Doge lays siege to the administrative state, the courts have provided the strongest pushback. Tilting them to the right could neutralise that opposition and work to Musk’s advantage.Ben Wikler, chair of the Democratic party of Wisconsin, said: “He is not the first far-right billionaire to pour money into a Wisconsin supreme court election but he is spending money hand over fist at the same time the whole world is wondering whether courts will ever be a check on the Musk/ Trump/GOP attack on the rule of law.“While he’s firing veterans with disabilities in Wisconsin from the veterans administration, he’s also working to buy a supreme court majority that could eliminate any possibility of accountability to state law.”Musk exploded onto the political stage last year, spending nearly $300m supporting Republican campaigns, according to Federal Election Commission filings. While most of his efforts went toward electing Trump, a super political action committee he founded also spent millions of dollars on House of Representatives races to keep Republicans in control.Musk also dabbled in state politics in Texas, where he had moved several of his businesses. In 2024, he gave $1m to a tort reform group supporting Republicans in state legislative races and $2m to a political action committee that campaigned to elect Republican judges in the state.Wikler believes there is more to come. “There’s been a question about whether Musk would follow Trump in only caring about elections when Trump is on the ballot. The answer is now clearly no. Musk wants control over every level of government at the same time as he takes control of people’s personal tax information and treasury payments that keep childcare centres open in Wisconsin,” he said.He added: “Musk is trying to execute a uniquely and profoundly grotesque perversion of justice by buying the court system while defying the constitution in order to rip off the poor and the middle class to enrich himself.”Not even Republicans are safe from the world’s richest man, whose fortune is estimated at $426bn. Musk threatened to fund primary election challengers to members of Congress who failed to back Trump’s cabinet picks and legislative priorities.Charlie Sykes, a conservative political commentator based in Wisconsin, said: “Elon Musk’s money is the bullets in the chamber aimed at wavering Republicans: ‘You don’t support us, Elon Musk will come into your state or your district [and] he will spend more money than God has to defeat you in a primary.’”Musk’s control of the X social media platform gives him profound influence over online discourse and the flow of information. His own feed, with 219 million followers, has become like a running commentary on the Trump administration.He has even sought to flex his muscles abroad, backing Germany’s far-right AfD party, calling for Nigel Farage to quit as leader of Britain’s Reform UK party and pushing false claims that white people are persecuted in South Africa.But while he currently appears omnipotent – a Time magazine cover depicted him sitting behind the Resolute desk like a president – there are signs of growing public discontent.In a Washington Post-Ipsos opinion poll, 34% of respondents said they approved of how Musk was handling his job, compared with 49% disapproving and 14% not sure. Protests against the tech oligarch have been held across the country and congressional Republicans have faced the backlash at raucous town halls.Sykes questions how long Musk’s political honeymoon can last: “He’s signalling that, at least for now, he’s going to be Trump’s enforcer and he’s going to be the force multiplier for the right wing. But as he does so, he’s also establishing himself as an independent force. The dilemma for Trump is that Musk is useful until he’s not but he’s not easy to get rid of.“In the end, there can only be one. The dilemma right now is it’s important to keep the focus on what Elon Musk is doing but not forget that the only reason he’s been empowered to do it is because of Donald Trump.” More

    • 175 Shares159 Views

      in US Politics

      Trump can’t fulfil his promise to fix the economy, so he’s blaming workers instead

      by

      During his presidential campaign, Donald Trump never missed an opportunity to harp on inflation, promising that “on day one” he would “end inflation” and lower the costs of groceries, cars and other common goods.Well, it’s day 40, and inflation saw its largest increase in over a year. Blink and you might have missed that Trump and his fellow Republicans have largely abandoned their concerns about inflation to focus on government “waste”.While Trump hasn’t fulfilled his campaign promise, he is living up to his usual brand of politics: the blame game. And this blame, as usual, is rooted in generating anger against “undeserving” Americans.This time, the undeserving are federal workers and poor people who get nominal benefits from the federal government – like Snap, which administers food stamps, and Medicaid. To fix so-called waste, the president apparently has no choice but to crack down on spending (and enlist help from Elon Musk), an issue that barely registered in the public consciousness in the past 10 years but is somehow now a rampant problem, according to Trump.There are policy frameworks backing Trump and the GOP’s divisiveness, including the well-known Project 2025 and a lesser-known House proposal published in 2024, Fiscal Sanity to Save America, that centers government “waste” instead of corporate greed. And now, with Republicans controlling the House, Senate and presidency, Republicans have the power to act on cuts that will harm millions of Americans.Musk and Trump, of course, have already worked to cut thousands of federal workers’ jobs. And with the Trump-backed budget bill the House passed on Wednesday, including $800bn in likely cuts from Medicaid, Republicans are one step closer to bulldozing America’s already paltry social safety net.This isn’t just at the federal level. Republicans have been floating proposals in state governments that would restrict healthcare, housing and food benefits instead of making it easier to afford things.The party of “freedom” is endorsing government home visits to surveil “fraud” in all US states (according to page 43 of the GOP’s “Fiscal Sanity” plan). The party of “family values” is also turning its attention to school lunch and breakfast programs, which it claims are subject to “widespread” fraud and abuse (page 46). The party that wants to “make America healthy again” is floating restrictions to Medicaid that would make recipients work at least 80 hours a month, a proposal that wastes government time and money to verify work requirements and which would probably just deter people from getting healthcare, as a flailing GOP work requirement experiment in Georgia has shown.And as Trump touts himself as an anti-war president, his proposals belie the fact that much of these spending cuts will now be diverted to defense contracts and other military and border spending, not on improving the economic lives of everyday workers to whom he made sweeping campaign promises.Meanwhile, straightforward proposals to simply give people more money (which does have evidence of working), such as universal basic income, would be outright banned at the federal level under the GOP plan. So as the cost of living is primed to increase, Republicans have ready-made excuses to justify cutting billions of dollars from these programs, an exceptional sort of cruelty.Of course, no one wants to see public money being spent wastefully or fraudulently. But incessant focus on “waste” stems from faulty, selective evidence. According to reports from Musk’s own so-called “department of government efficiency”, nearly 40% of cancelled contracts to cut costs are expected to yield no savings. It also stems from something else that does have proven results: the utility of public outrage.Focusing on extreme examples and “undeserving” government beneficiaries animates America’s existing propensity for divisiveness, giving Trump and his party wide latitude to wreck the lives of millions of people who don’t engage in fraud, waste or abuse. When Reagan wanted tax cuts for the rich, we saw the “welfare queen” trope. When neoliberal Democrats and Republicans wanted to cut public housing at the federal and local level, we saw extreme stories about the criminality of people who lived there. We cannot waste the money of hard-working Americans on these “others”. It’s a narrative – often hinging on racism and sexism – that has great outcomes for America’s capitalist class and the politicians who support them.So instead of protesting against the rising cost of living or making demands for universal healthcare, federal job guarantees, increased labor rights, or Snap benefits for all, or cutting the bloated defense budget and increasing taxes on the super-rich to pay for the nominal social welfare benefits that other industrial countries have normalized, working-class Americans are engaging in petty debates about what kinds of groceries other working-class Americans should buy and deputizing themselves to root out “abuse” among other workers.Republicans redirecting blame towards people who are suffering in this economy under the guise of “waste” is a distraction. As inflation is poised to worsen under Trump, Americans would be wise to focus their anger more on the elected officials and billionaires who profit from their pain than on each other.

      Malaika Jabali is a 2024 New America fellow, journalist and author of It’s Not You, It’s Capitalism: Why It’s Time to Break Up and How to Move On More

    • 150 Shares129 Views

      in US Politics

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

      by

      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

    • 113 Shares159 Views

      in US Politics

      China promises ‘countermeasures’ after Trump threatens additional 10% tariff

      by

      Donald Trump has threatened China with an additional 10% tariff on its exports to the US, prompting a promise of “countermeasures” from Beijing and setting the stage for another significant escalation in the two governments’ trade war.The US president also claimed he planned to impose tariffs on Canada and Mexico starting next Tuesday, having delayed their imposition last month after talks with his counterparts.Posting on Truth Social on Thursday, Trump said illicit drugs such as fentanyl were being smuggled into the US at “unacceptable levels” and that import taxes would force other countries to crack down on the trafficking.“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” the Republican president wrote. “China will likewise be charged an additional 10% Tariff on that date.”If Trump makes good on this latest threat, the move would further strain relations between the US and its largest trading partners.In response, China’s commerce and foreign ministries on Friday vowed to retaliate if Chinese companies were affected by the tariffs, accusing the US of using fentanyl as a “pretext” to threaten China.“Such behaviour is purely ‘shifting blame and shirking responsibility,’ which is not conducive to solving its own problems,” a commerce ministry spokesperson said. “If the US insists on proceeding with this course of action, China will take all necessary countermeasures to safeguard its legitimate rights and interests.”Canada and Mexico have promised to retaliate if the US imposes tariffs on their exports. China hit back swiftly when Trump imposed a 10% tariff on its exports earlier this month.The Trump administration has repeatedly raised the threat of tariffs, vowing to rebalance the global economic order in the US’s favor. A string of announced measures have yet to be introduced, however, as economists and businesses urge officials to reconsider.The duties on imports from Canada and Mexico have been repeatedly delayed; modified levies on steel and aluminum will not be enforced until next month, and a wave of “reciprocal” tariffs, trailed earlier this month, will not kick in before April.This week, the US president vowed to slap 25% tariffs on the EU, claiming the bloc was “formed to screw the United States”, although details remain sparse. Duties will be applied “generally”, Trump said, “on cars and all other things”.The prospect of escalating tariffs has already thrown the global economy into turmoil – with consumers expressing fears about inflation worsening and the auto sector possibly suffering if the US’s two largest trading partners in Canada and Mexico are slapped with taxes.The prospect of higher prices and slower growth could create political blowback for Trump.Associated Press contributed reporting More