More stories

  • in

    Trump transition team signs agreement to begin takeover from Biden

    Donald Trump’s team announced on Tuesday it had signed an agreement to start the complex process of transferring control of the federal government to themselves, although the details of the plan suggested some breaks with standard practice.The incoming White House chief of staff Susie Wiles said the team would now be sending in “landing teams” into the various departments and agencies as it prepares to take over the bureaucracy of the executive branch.“After completing the selection process of his incoming cabinet, president-elect Trump is entering the next phase of his administration’s transition,” Wiles said. “This engagement allows our intended cabinet nominees to begin critical preparations.”But the agreement with the Biden administration, known as a memorandum of understanding, appeared to be a pared-down version of what is normally signed by presidential transitions with caveats that indicated a departure from usual restrictions.The signing of the memo normally unlocks up to $7.2m in government funding to help staffing costs and other expenses, as well as the use of government office space through the nonpartisan General Services Administration.The financial assistance comes with strings attached – the transition team has to agree to disclose its donors and impose a $5,000 limit on contributions – and the agreement was supposed to be signed months before the election.The transition team is normally supposed to sign an ethics agreement, which paves the way for transition aides to start receiving government information such as classified briefings and the granting of security clearances.The announcement by Wiles in a press release suggested that the Trump team had negotiated its own language around some of those restrictions.While the Trump team was committed to making the identities of its donors public, and would not accept any foreign contributions, Wiles said that it would not be using any government money and its entire operation would be privately funded.Government ethics experts have previously noted that such an arrangement would allow people seeking to curry favor with the Trump White House to donate directly to him, raising concerns about possible conflicts of interest.Wiles also said that the Trump team had its own ethics plan, rather than the formal government one, leaving unclear whether all relevant transition aides would be eligible to receive full government briefings that included classified information.That caveat on the ethics plan dovetailed with reporting by the Guardian that the Trump team is planning for political appointees to receive temporary security clearances on the first day and only face FBI background checks after it had taken over the bureau.Trump’s lack of interest in engaging with the formal transition stems from the first Trump administration, when officials turned over transition team records to the Russia investigation, according to people familiar with the matter.Trump has previously broken convention with the transfer of power. In 2016, his campaign organized what appeared to be a standard process, until Trump fired his transition team’s leadership after he won the election and cut off communications with the Obama administration.In 2020, Trump again seemed to follow standard procedure until immediately after the election, pressuring the General Services Administration to not recognize Joe Biden’s election win so his team could not access the federal financial assistance. More

  • in

    Canada PM under pressure to stand up to Trump over tariff plan; US motorists could face higher gas prices – live

    Other members of Canada’s parliament are calling on prime minister Justin Trudeau to ready a “war room” for the coming battle over tariffs with the United States.“The only thing a bully responds to is strength. So where is our plan to fight back?” Jagmeet Singh, leader of the New Democratic Party, asked Trudeau. “Where is the war room?”“I don’t think the idea of going to war with the United States is what anyone wants. What we will do is stand up for Canadian jobs,” Trudeau said. “Stand up for the prosperity we create when we work together.”Meanwhile, members of Canada’s liberal and conservative parties are debating ways Trudeau could promote a “Canada First” policy or work collaboratively with “our US partner.”In an election post-mortem today, top Harris campaign officials said there was little else Kamala Harris could have done to win the 2024 election.Speaking on the podcast “Pod Save America”, David Plouffe, Jen O’Malley Dillon, Quentin Fulks and Stephanie Cutter said Harris couldn’t have distanced herself further from Joe Biden because she was loyal and faced backlash over inflation that’s hurt incumbent politicians across the globe this year.“She had tremendous loyalty to President Biden,” Cutter said. “Imagine if we said, ‘Well, we would have taken this approach on the border.’ Imagine the round of stories coming out after that, of people saying, ‘Well, she never said that in the meeting.’”Plouffe added that the campaign’s internal polling never showed Harris leading president-elect Donald Trump.“We didn’t get the breaks we needed on Election Day,” he said. “I think it surprised people, because there was these public polls that came out in late September, early October, showing us with leads that we never saw.”Fulks noted that Democrats could learn from how Republicans support their own, even amid controversy.“Democrats are eating our own to a very high degree, and until that stops, we’re not going to be able to address a lot of the things that just need to be said,” he said.During a thank-you call today, Kamala Harris told small-dollar donors that they helped to raise $1.4 billion over the course of her 107-day campaign.“The outcome of the election, of this election, obviously, is not what we wanted. It is not what we worked so hard for, but I am proud of the race we ran and your role was critical — what we did in 107 days was unprecedented,” she said. “The fight that fueled our campaign, a fight for freedom and opportunity, did not end on November 5th.”Harris’s running mate, Minnesota governor Tim Walz, joined the call and urged supporters to “find the place in your community to heal both yourselves and your community.” He acknowledged feels of grief that supporters might be feeling and added, “You did everything that was asked.”Donald Trump’s team has announced that it has signed transition paperwork with the White House, which the incoming administration appeared to be dodging after failing to sign the agreement by its 1 October due date. The agreement, which directs $7.2m in federal funding to the transition, requires the incoming presidential administration to agree to an ethics pledge and cap private donations.The announcement that Trump’s team had signed the memorandum of understanding with the White House came in a press release from Trump’s chief-of-staff Susie Wiles.“After completing the selection process of his incoming Cabinet, President-elect Trump is entering the next phase of his administration’s transition by executing a Memorandum of Understanding with President Joe Biden’s White House. This engagement allows our intended Cabinet nominees to begin critical preparations, including the deployment of landing teams to every department and agency, and complete the orderly transition of power,” she said.Speaking from the White House, Joe Biden has announced a ceasefire agreement between Israel and Hezbollah.“Under the deal reached today, effective at 4am tomorrow local time, the fighting across the Lebanese-Israeli border will end,” he said. “This is designed to be a permanent cesation of hostility.”Explaining the terms of the deal, Biden said, the Lebanese army will take control of the region as Israel withdraws its forces over the next 60 days. Hezbollah will not be allowed to rebuild its infrastructure. “There will be no US troops deployed in southern Lebanon,” he said, adding that the US and France would continue to provide support to Lebanon. If Lebanon fails to abide by the terms of the agreement, Biden said, Israeli retains the right to defend itself.“Now Hamas has a choice to make,” Biden said, gesturing to the ongoing war in Gaza. “Over the coming days, the United States will make another push – with Turkey, Egypt, Qatar, Israel and others – to achieve a ceasefire in Gaza.”A day after Elon Musk claimed to have met with “senior military officers,” the Pentagon told reporters it was not aware of any meetings with Trump transition officials, the Washington Post reports.“The president-elect’s transition team has not contacted the department yet to conduct those transitions, so I’m not aware of any official meetings,” Pentagon press secretary Patrick Ryder told reporters. Donald Trump’s transition team has declined to sign paperwork that would require the incoming administration to agree to an ethics pledge and cap private donations, which has slowed the transition.Yesterday, Musk claimed to have met with “senior military officers today” in a social media post responding to a statement from Vivek Ramaswamy about government efficiency.“In a meeting with senior military officers today, they told me that it now takes longer to renovate stairs (24 months) in the Pentagon than it took to build the WHOLE Pentagon (16 months) in the 1940s!!” Musk wrote.Speaking at an emergency gathering of the Canadian parliament today, Justin Trudeau urged unity while leaders of two of the country’s largest industrial and oil-rich provinces raised concerns over US-Canada relations, Reuters reports.The premier of Ontario, the country’s industrial heartland, said Trump had good reason to be worried about border security.“Do we need to do a better job on our borders? 1,000 percent … we do have to listen to the threat of too many illegals crossing the border,” Doug Ford told reporters. “We have to squash the illegal drugs, the illegal guns.”Ford has called on Trudeau to abandon the U.S.-Canada-Mexico trade deal in favor of a bilateral agreement with the US, and called Trump’s comparison of Canada to Mexico “the most insulting thing I have ever heard”.Likewise, the premier of the oil-rich province of Alberta said yesterday that Trump had valid concerns over border security.“We are calling on the federal government to work with the incoming administration to resolve these issues immediately, thereby avoiding any unnecessary tariffs on Canadian exports to the U.S.,” Danielle Smith said in a social media post. She added, “The vast majority of Alberta’s energy exports to the U.S. are delivered through secure and safe pipelines which do not in any way contribute to these illegal activities at the border.”A federal judge has rejected Rudy Giuliani’s request to reschedule a January trial date for after Donald Trump’s inauguration. The judge has ordered Giuliani to pay two Georgia election workers $148 million for spreading falsehoods after the 2020 election. The 16 January trial had been set to determine whether Giuliani would have to relinquish assets such as a Palm Beach condo and Yankees World Series rings to pay the judgement.“My client regularly consults and deals directly with President-elect Trump on issues that are taking place as the incoming administration is afoot as well as inauguration events,” Giuliani’s attorney Joseph Cammarata said. “My client wants to exercise his political right to be there.”“The defendant’s social calendar does not constitute good cause [to delay the trial],” US District Court Judge Lewis Liman said. He did suggest that he would be open to moving the trial forward a few days.Other members of Canada’s parliament are calling on prime minister Justin Trudeau to ready a “war room” for the coming battle over tariffs with the United States.“The only thing a bully responds to is strength. So where is our plan to fight back?” Jagmeet Singh, leader of the New Democratic Party, asked Trudeau. “Where is the war room?”“I don’t think the idea of going to war with the United States is what anyone wants. What we will do is stand up for Canadian jobs,” Trudeau said. “Stand up for the prosperity we create when we work together.”Meanwhile, members of Canada’s liberal and conservative parties are debating ways Trudeau could promote a “Canada First” policy or work collaboratively with “our US partner.”Canadian prime minister Justin Trudeau is discussing the United States’ proposed tariffs with the leader of the opposition, Pierre Poilievre, before the Canadian parliament. Poilievre has criticized Trudeau, calling on him to “put Canada first” in its relations with the United States and do more to fix Canada’s “broken borders” and “liberalization of drugs”.“The prime minister’s disastrous legalization and liberalization of drugs has the Americans worried,” Poilievre said. “Where’s the plan to stop the drugs and keep our border open to trade?”Canadian prime minister Justin Trudeau is expected to speak shortly at today’s gathering of the nation’s parliament, just a day after Donald Trump threatened to levy 25% tariffs against the US’s northern neighbor.Trudeau spoke with Trump earlier today, and said “it was a good call,” adding that they “obviously talked about laying out the facts, talking about how the intense and effective connections between our two countries flow back and forth.”Donald Trump’s team is discussing pursuing direct talks with North Korean leader Kim Jong Un, hoping a fresh diplomatic push can lower the risks of armed conflict, according to two people familiar with the matter, Reuters reports.Several in Trump’s team now see a direct approach from Trump, to build on a relationship that already exists, as most likely to break the ice with Kim, years after the two traded insults and what Trump called “beautiful” letters in an unprecedented diplomatic effort during his first term in office, the people said.The policy discussions are fluid and no final decisions have been made by the president-elect, the sources said.Trump’s transition team did not respond to a request for comment.What reciprocation Kim will offer Trump is unclear. The North Koreans ignored four years of outreach by outgoing president Joe Biden to start talks with no pre-conditions, and Kim is emboldened by an expanded missile arsenal and a much closer relationship with Russia.
    We have already gone as far as we can on negotiating with the United States,” Kim said last week in a speech at a Pyongyang military exhibition, according to state media.
    During his 2017-2021 presidency, Trump held three meetings with Kim, in Singapore, Hanoi, and at the Korean border, the first time a sitting US president had set foot in the country.Their diplomacy yielded no concrete results, even as Trump described their talks as falling “in love.” The US called for North Korea to abandon its nuclear weapons, while Kim demanded full sanctions relief, then issued new threats.North Korea has sent troops to fight alongside Russia in its war with Ukraine.Donald Trump’s pledge to impose 25% tariffs on Canadian and Mexican imports in his first day in office does not exempt crude oil from the trade penalties, two sources familiar with the plan told Reuters today.Oil producers already warned that tariffs on crude would drive up the price of gas for US motorists, the FT reported earlier.“A 25% tariff on oil and natural gas would likely result in lower production in Canada and higher gasoline and energy costs to American consumers while threatening North American energy security,” Lisa Baiton, head of the Canadian Association of Petroleum Producers, told the business-focussed newspaper.In the vagaries of the markets and geopolitics, oil prices rose earlier on news of Trump’s tariffs pledge, over predictions they would discourage production, thereby raising prices, but now have dropped slightly, Reuters reports, on news of a pending ceasefire between Israel and Hezbollah in Lebanon, apparently because Wall Streeters, leaping 10 steps ahead, imagine it could lead to a relaxing of sanctions on Iran and therefore a glut of oil supply, suppressing prices…. More

  • in

    Trump border chief threatens jail for Denver mayor amid deportation dispute

    Tom Homan, Donald Trump’s hardline incoming border czar, has threatened to put the mayor of Denver in jail after the latter said he was willing to risk incarceration to resist the president-elect’s migrant mass deportation plan.The threat was issued against Mike Johnston, a Democrat, who said he was not afraid of being jailed and encouraged people to protest against mass round-ups of immigrants in their cities and communities.Johnston’s remarks came after Trump focused during the presidential election campaign on the Denver suburb of Aurora, which he said had become “a war zone” where apartment buildings had been taken over by Venezuelan gang members.Asked to respond by Fox News’s Sean Hannity, Homan said: “Me and the Denver mayor, we agree on one thing; he’s willing to go to jail. I’m willing to put him in jail.”Johnston had originally been asked by a local Denver television station to respond to Homan’s previous vows to arrest local leaders and politicians who stood in the way of deportation efforts.He said he was not willing to go to jail, though he is “not afraid of that” in a Friday interview with 9 News.“I think the goal is we want to be able to negotiate with reasonable people how to solve hard problems,” he told the outlet.He said previously, in a separate interview, that he would send Denver police to the city line to confront federal agents – an action he likened to Tiananmen Square. He later withdrew the comments.Speaking to Hannity, Homan insisted that he was willing to put Johnston “in jail because there’s a statute”.“What it says is that it’s a felony if you knowingly harbour and conceal an illegal alien from immigration authorities. It’s also a felony to impede a federal law enforcement officer. So if he don’t help, that’s fine. He can get the hell out of the way, but we’re going to go do the job,” he said, before adding: “I find it hard to believe that any mayor or governor would say they don’t want public safety threats removed from their neighbourhoods.“I don’t know what the hell is going on in Denver, but we’re going to go in and we’re going to go and we’re going to fix it. If you don’t want to fix it, if you don’t want to protect his communities, President Trump and Ice [Immigration and Customs Enforcement] will.”Homan, who was deputy director of Ice in Trump’s first administration, said the president-elect had a “mandate from the American people … to save American lives”.He has taken a similarly unbending stance against other local and state Democratic politicians who have declared their local fiefdoms “sanctuary cities” safe from Trump’s deportation plans.Gavin Newsom, the California governor, and the Illinois governor, JB Pritzker, have both vowed opposition. Pritzker recently told journalists: “If you come for my people, you come through me.”In a separate Fox News interview at the weekend, Homan said the incoming administration would respond to blocking tactics by withholding federal funding from non-compliant cities and states.“That’s going to happen, I guarantee you,” he told the network’s Mark Levin. More

  • in

    The Guardian view on Donald Trump’s tariffs: protectionism is no longer taboo in politics | Editorial

    Donald Trump’s broadside against America’s three largest trading partners, with whom it runs a $500bn trade deficit, should surprise no one. Since 2016, both Mr Trump and Mr Biden have departed from established norms in international trade. The two presidencies diverged significantly in approach: Mr Biden emphasised systemic reform while Mr Trump relied on rhetoric and theatrics. Although both administrations faced criticism for driving up costs through tariffs and industrial policy, global events were primarily behind rising prices.Mr Trump’s self-declared fondness for tariffs is closely tied to his ability to authorise them unilaterally, bypassing Congress under claims of national security. This may explain his recent announcement of plans to impose 25% tariffs on all goods from Canada and Mexico, and an additional 10% on Chinese imports, unless these countries address alleged issues of illegal immigration and fentanyl smuggling. The US president-elect clearly sees tariffs as more than mere policies; they are a calculated means of gaining leverage. By threatening to impose them, Mr Trump is signalling a desire to negotiate – but only on his terms.Mr Trump’s trade tactics reshaped relations with Mexico and Canada, setting the stage for a 2026 review of the 2019 agreement he secured with the US’s neighbours. However, his approach faltered with China. Despite the first Trump administration imposing $112bn in tariffs and threatening to levy $500bn more, Beijing negotiated a 2020 trade deal but did not, after Covid, meet its commitments, leaving Mr Biden to continue the confrontation.Trade involves sacrifices to achieve gains. Cheaper consumer goods might lead to fewer domestic jobs or lower wages in certain industries. Increased imports can mean a reduction in local manufacturing. Running a trade deficit is not necessarily harmful, but it requires an activist policy to ensure that the pain is not geographically concentrated. For decades, the neoliberal economic order championed a vision of a borderless world, where goods and services flowed freely with minimal barriers. This ideal dominated global trade policy and corporate strategy, rendering “protectionism” taboo in mainstream debate. However, since the global financial crash, scepticism about globalisation has steadily grown.An increasing focus on justice, sustainability and better working conditions has reshaped trade priorities worldwide. There has also been a growing shift toward producing goods closer to home, either through increased domestic manufacturing or by developing nearby supply chains. However, wealthy nations, led by the US, have consistently resisted granting poorer countries the flexibility to modernise, while claiming exceptions to rules they enforce on others. During the pandemic, the US prioritised its pharmaceutical industry profits over global vaccine access, blocking life-saving doses for developing countries.Globalisation’s decline began long before Mr Trump, with his protectionist policies reflecting rather than driving this shift. The retreat from globalisation will probably continue, fuelled by geopolitical tensions, post-pandemic supply chain restructuring, and rising demands for equitable trade. Mr Trump’s policies, however, will make an uncertain world even more volatile. His suspicion of win-win deals will make it harder for policymakers around the world who seek to balance their national interests with the need for global cooperation. More

  • in

    Trump’s tariff threat sets stage for bitter global trade war

    Donald Trump’s threat to impose steep tariffs on goods imported into the US has set the stage for a bitter global trade war, according to trade experts and economists, with consumers and companies warned to brace for steep costs.The president-elect announced on Monday night that he intended to hit Canada, Mexico and China with tariffs on all their exports to the US – until they reduce migration and the flow of drugs into the country.As officials in the three countries scrambled to respond, Keith Rockwell, a former director at the World Trade Organization, predicted that Trump’s move could spark a trade war. “The United States exports hundreds of billions of dollars worth of goods to these countries,” he said. “Anyone who expects that they will stand pat and not retaliate has not been paying attention.”China promptly suggested that both sides would lose from an escalation in economic tensions. “No one will win a trade war or a tariff war,” Liu Pengyu, a spokesperson at the Chinese embassy in Washington, wrote on X, formerly Twitter. Chrystia Freeland, Canada’s deputy prime minister, and Dominic LeBlanc, its public safety minister, touted the country’s “balanced and mutually beneficial” economic ties with the US.Hours after Trump issued the announcements on Truth Social, his social media platform, economists at ING released research that estimated his broader campaign proposals on trade – including a universal tariff of between 10% and 20% on all goods imported from overseas, and a 60% tariff on all goods from China – could cost each US consumer up to $2,400 each year.“This potential increase in consumer costs and inflation could have widespread economic implications, particularly in an economy where consumer spending accounts for 70% of all activity,” James Knightley of ING said.It is unclear whether Trump, who has described “tariff” as “the most beautiful word in the dictionary”, will follow through on this plan. Tariffs – levies paid for by the company importing foreign goods – are not popular with voters, even Trump’s voters. A Harris poll conducted for the Guardian found 69% of people believe they will increase the prices they pay.And while he threatened universal tariffs while campaigning for the White House, this proposal – a 25% duty on all goods from Mexico and Canada, and a 10% duty on China, on top of existing duties – is more targeted.“Trump’s statements clearly herald the dawn of a new era of US trade protectionism that will sweep many US trading partners into its ambit,” said Eswar Prasad, former head of the IMF’s China division. “Such tariffs will have a disruptive effect on US as well as international trade, as countries around the world jockey to soften the blow of US tariffs on their own economies and try to find ways to evade the tariffs.”On the campaign trail, Trump and his allies claimed such measures would help strengthen the US economy and “make America wealthy again”. Many economists took a different view, warning that sweeping tariffs would increase the price of goods for US consumers, and risk prompting other nations to retaliate, hitting US businesses exporting goods to the world.But in his announcements on Tuesday, Trump did not focus on the economic benefits has claimed tariffs would bring. Instead, he blamed Mexico and Canada for “ridiculous Open Borders” he alleged were prompting an immigration crisis, and China for “the massive amounts of drugs, in particular Fentanyl” arriving in the US – and pledged to impose tariffs on these countries until they addressed his concerns.“Trump apparently sees tariffs as a tool with broad uses in tackling a variety of malign external factors that have adverse effects on the US economy, society and national security,” noted Prasad, now a professor of trade policy at Cornell University.skip past newsletter promotionafter newsletter promotionThe billionaire hedge fund manager Bill Ackman, who endorsed Trump, wrote on X that the president-elect “is going to use tariffs as a weapon to achieve economic and political outcomes which are in the best interest of America”, in a bid to deliver on his “America First” policy strategy.Making such announcements on social media “is a great way for Trump to effect foreign policy changes even before he takes office”, Ackman claimed.As Trump builds out his broader trade strategy, Rockwell, formerly of the WTO, said a 10% universal tariff would me “more manageable” than 20%. “But if you raise it 20%, that creates a different dynamic,” he said. “You’re going to see much, much less demand for these products coming in.“There will also be, without any doubt, retaliation,” he added. European officials “have got their list drawn up”, he said. “It’s the most closely guarded secret in Brussels, but it’s drawn up.”Countries will hit back with tariffs on “political pinch points”, Rockwell predicted. Under the last Trump administration, the European Union targeted US exports including Harley-Davidson bikes, Levi’s jeans and Kentucky bourbon. More

  • in

    The Democrats’ next campaign should appeal to their base, not swing voters | Steve Phillips

    Many people are drawing the wrong conclusions about what happened in the 2024 election. The conventional wisdom is that large swaths of population groups shifted their political allegiances to Donald Trump, propelling him to victory over Kamala Harris.A more careful reading of the data, however, shows that those conclusions are inaccurate, and the biggest problem for Democrats was a failure to turn out Democratic voters. Coming to terms with the unfounded faith in voter persuasion – at the extent of tried and true voter turnout programs – will have profound implications for the future of the Democratic party and the country.The cause of the confusion is the fact that Trump won dozens of counties across the country that voted for Joe Biden in 2020. Seeing that the Democratic margin had shrunk or evaporated in these places, most in the media rushed to report a massive national shift to the right, replete with graphics showing maps with red arrows pointing rightward.Looking more closely at the results and comparing them to the data from the 2020 election, one can see that while the counties did swing, the voters, for the most part, did not. What leaps out from a careful comparison is the finding that Democratic voter turnout fell through the floor. Trump didn’t win those counties because people switched their votes to him; he won because significant numbers of people who voted for Biden in 2020 did not vote at all in 2024.The decline in voter turnout is first visible from the simple fact that the total number of votes cast in 2024 is smaller than the number cast in 2020 (153m in 2024 versus 155m in 2020). This is despite the fact that the size of the US population has increased by 4.5 million people since the last election.It is when one takes a closer look at the underlying data that the picture comes into sharper focus. In nearly a third of the top 50 counties that flipped from Democrat to Republican, Trump’s vote actually declined from his 2020 numbers. If Democratic voters are coming over to the Republican ranks, their vote total should go up, not down. In Pinellas county, Florida, for example, Trump got nearly 7,000 fewer votes than in 2020, but the Democratic vote total plummeted by 35,000 votes.This pattern is evident in nearly all of the counties that flipped. Even in the counties where Trump’s vote increased marginally over 2020, that increase was generally dwarfed by the Democratic decline. In Erie county in the critical swing state of Pennsylvania, Trump improved on his 2020 showing by 801 votes, but the votes for Harris dropped by 2,618 votes, more than enough to have carried the county had those voters cast ballots.Just as is the case in medicine, an effective treatment requires an accurate diagnosis. The anemic Democratic voter turnout is the result of a cataclysmic failure of theory of change, strategy and spending, most notably by the Democratic Super Pac Future Forward.Super Pacs have great freedom and flexibility in that there are no limits on the size of contributions they can receive and few restrictions on their electoral activities. I helped create one of the country’s first such committees, Vote Hope, in 2007 to help Barack Obama, and our theory of change was that boosting Black voter turnout would help elect the country’s first Black president. Accordingly, we spent our money on hiring canvassers to knock on doors and buses to drive voters to the polls.Future Forward embraced the view that they could devise clever television and digital ads that would persuade Trump-leaning voters to back the Democrats. Accordingly, they poured nearly $700m into an advertising avalanche that was redundant to Harris’s ads and obviously ineffective. In a fawning New York Times profile, their effort was described as “animated by the idea that a blend of data science, political science and testing can usher in a new era of rigor in advertising”.There were seven battleground states where the parties concentrated their time, energy, and resources. Imagine if Future Forward had spent $100m in each state, hiring canvassers, investing in community-based civic engagement organizations, and funding the labor-intensive and expensive yet effective work of getting out the vote. Such a program would have boosted voter turnout, bringing back out the coalition that defeated Trump in 2020.A failure of this magnitude demands soul-searching and brutal re-assessment of prior assumptions and strategies. The work of defending and ultimately taking back the country starts now, and a sober assessment of the election results makes clear that 2024 marks the requiem for the widely held but thinly supported view that it makes more sense to invest in persuasion over the power-building program of getting out the vote.

    Steve Phillips is the founder of Democracy in Color, and author of Brown Is the New White: How the Demographic Revolution Has Created a New American Majority and How We Win the Civil War: Securing a Multiracial Democracy and Ending White Supremacy for Good More

  • in

    Trump’s cabinet isn’t as anti-Wall Street as voters might want to believe | Robert Reich

    Will anything stop Trump?He’s got control over both chambers of Congress, a tractable supreme court, a political base of fiercely loyal Magas, a media ecosystem that amplifies his lies (now including Musk’s horrific X as well as Rupert Murdoch’s reliably mendacious Fox News) and a thin majority of voters in the 2024 election.He doesn’t worry about another election because he won’t be eligible to run again (or he’ll ignore the constitution and stay on).Of course, there are the midterm elections of 2026. But even if Democrats take back both chambers, Trump and his incipient administration are aiming to wreak so much damage on America in the meantime that Democrats can’t remedy it.The Republican-controlled Senate starting 3 January won’t restrain Trump. Yes, Trump overreached with his pick of Matt Gaetz for attorney general. Apparently even Senate Republicans can’t abide alleged sex trafficking of girls for drug-infested sex parties, but this is a very low bar. (Gaetz denies any wrongdoing.)So, as a practical matter, is anything stopping Trump?Yes, and here’s a hint of what it is: on Friday, Trump picked Scott Bessent to serve as US secretary of the treasury.Bessent is the man Elon Musk derided only a week ago as the “business-as-usual choice” for treasury secretary, in contrast to Howard Lutnick, whom Musk said would “actually enact change”.Musk’s view of “change” is to blow a place up, which was what Musk did when he bought Twitter.Over the last two weeks, Musk has convinced Trump to appoint bomb-throwers Robert F Kennedy Jr to health and human services and Pete Hegseth to defense and to put Musk and Vivek Ramaswamy in charge of cutting $2tn from the federal budget.But Bessent is the opposite of a bomb-thrower. He’s a billionaire hedge fund manager, founder of the investment firm Key Square Capital Management, and a protege of the Maga arch-villain George Soros. (He’s also gay, which the Maga base may not like, either.)Why did Trump appoint the “business-as-usual” Bessent to be treasury secretary? Because the treasury secretary is the most important economic job in the US government.Trump has never understood much about economics, but he knows two things: that high interest rates can throttle an economy (and bring down a president’s party) and that high stock prices are good (at least for Trump and his investor class).Trump doesn’t want to do anything that will cause bond traders to raise long-term interest rates out of fear of future inflation and he wants stock traders to be so optimistic about corporate profits they raise share prices.So he has appointed a treasury secretary who will reassure the bond and stock markets.Stock and bond markets constitute the only real constraint on Trump – the only things whose power he’s afraid of.skip past newsletter promotionafter newsletter promotionBut wait. What about Trump’s plan to raise tariffs? He has floated a blanket tariff of 10% to 20% on nearly all imports, 25% on imports from Mexico, and 60% or more on Chinese goods.Tariffs of this size would increase consumer prices and fuel inflation – driving interest rates upward. (The cost of tariffs are borne by American businesses and households, rather than foreign companies.)Tariffs could also invite retaliation from foreign governments and thereby dry up export markets for American-based corporations – in which case the stock market would tank. (The last time America raised tariffs on all imports – Herbert Hoover’s and congressmen Smoot and Hawley’s Tariff Act of 1930 – the Great Depression worsened.)In short, tariffs will rattle stock and bond markets, doing the exact opposite of what Trump wants.So Trump has appointed a treasury secretary who will soothe Wall Street’s nerves – not just because Bessent is a Wall Street billionaire who speaks its language but also because Wall Street doesn’t really believe Bessent wants higher tariffs.Bessent has described Trump’s plan for blanket tariffs as a “maximalist” negotiating strategy – suggesting Trump’s whole tariff proposal is a strategic bluff. Wall Street apparently thinks tariffs won’t rise much when other countries respond to the bluff with what Trump sees as concessions.Instead, Wall Street expects Bessent to be spending his energies seeking lower taxes, especially for big corporations and wealthy Americans, and helping Musk and Ramaswamy cut spending and roll back regulations.It’s a sad commentary on the state of American democracy when the main constraint on the madman soon to occupy the Oval Office is Wall Street.I suppose we should be grateful there’s any constraint at all.

    Robert Reich, a former US secretary of labor, is a professor of public policy at the University of California, Berkeley, and the author of Saving Capitalism: For the Many, Not the Few and The Common Good. His newest book, The System: Who Rigged It, How We Fix It, is out now. He is a Guardian US columnist. His newsletter is at robertreich.substack.com More