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      Obama condemns Trump’s $2.3bn Harvard funding freeze as ‘unlawful and ham-handed’ – US politics live

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      Good morning and welcome to our US politics blog.Former US president Barack Obama has condemned the education department for freezing $2.3bn in federal funds to Harvard University after the elite college rejected a list of demands from the White House.In some of his most vocal criticism of this Trump administration, Obama praised Harvard, the country’s oldest university, for setting an example for other higher education institutions to reject federal overreach into its governance practices.He wrote in a post on X:
      Harvard has set an example for other higher-ed institutions – rejecting an unlawful and ham-handed attempt to stifle academic freedom, while taking concrete steps to make sure all students at Harvard can benefit from an environment of intellectual inquiry, rigorous debate and mutual respect. Let’s hope other institutions follow suit.
      His comments came after Harvard decided to fight the White House’s demands that it crack down on alleged antisemitism and civil rights violations. It is the first major US university to defy pressure from the White House to change its policies.In a letter to Harvard on Friday, the administration called for broad government and leadership reforms, a requirement that Harvard institute what it calls “merit-based” admissions and hiring policies as well as conduct an audit of the study body, faculty and leadership on their views about diversity.The demands, which are an update from an earlier letter, also call for a ban on face masks, which appeared to target pro-Palestinian protesters; close its diversity, equity and inclusion programs, which it says teach students and staff “to make snap judgments about each other based on crude race and identity stereotypes”; and pressured the university to stop recognizing or funding “any student group or club that endorses or promotes criminal activity, illegal violence, or illegal harassment”.The administration also demanded that Harvard cooperate with federal immigration authorities.Harvard’s president said in a letter that the university would not comply with the Trump administration’s demands to dismantle its diversity programming and to limit student protests in exchange for its federal funding.“No government – regardless of which party is in power – should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue,” Alan Garber, the university president, wrote, adding that Harvard had taken extensive reforms to address antisemitism.The department of education announced in March that it had opened an investigation into 60 colleges and universities for alleged “anti-Semitic harassment and discrimination”. It came after protests against Israel’s war on Gaza were put on across campuses last year, demonstrations that many Republicans framed as antisemitic.Harvard’s response to the White House’s demands was in sharp contrast to the approach taken by Columbia University, the epicentre of last year’s protests against Israel’s assault on Gaza.The Trump administration cut $400m in grants to the private New York school, accusing it of failing to protect Jewish students from harassment. The school caved in to demands and responded by agreeing to reform student disciplinary procedures and hiring 36 officers to expand its security team.Stay with us throughout the day as we have more reaction to this story and many others.Hugo Lowell is a reporter in the Washington bureau of the Guardian covering Donald Trump and the Justice DepartmentThe Trump administration on Monday misrepresented a US supreme court decision that compelled it to return a man wrongly deported to El Salvador, using tortured readings of the order to justify taking no actions to secure his release.The supreme court last week unanimously ordered the administration to “facilitate” the release of Kilmar Abrego García, who was supposed to have been protected from deportation to El Salvador regardless of whether he was a member of the MS-13 gang.But at an Oval Office meeting between Trump and El Salvador’s president Nayib Bukele, Trump deferred to officials who gave extraordinary readings of the supreme court order and claimed the US was powerless to return Abrego García to US soil.“The ruling solely stated that if this individual at El Salvador’s sole discretion was sent back to our country, we could deport him a second time,” said Trump’s policy chief Stephen Miller, about an order that, in fact, upheld a lower court’s directive to return Abrego García…The remarks at the Oval Office meeting marked an escalation in the Trump administration’s attempts to claim uncertainty with court orders to avoid having to take actions it dislikes. In Abrego García’s case, officials appeared to manufacture uncertainty in particularly blatant fashion.And the fact that the US is paying El Salvador to detain deportees it sends to the notorious Cecot prison undercut the notion that the administration lacked the power to return Abrego García into US custody.The case started when Abrego García was detained by police in 2019 in Maryland, outside a Home Depot, with several other men, and asked about a murder. He denied knowledge of a crime and repeatedly denied that he was part of a gang.Abrego García was subsequently put in immigration proceedings, where officials argued they believed he was part of the MS-13 gang in New York based on his Chicago Bulls gear and on the word of a confidential informant.The case went before a US immigration judge, who suggested that Abrego García could be a member of MS-13 and agreed to a deportation order but shielded him from being sent to El Salvador because he was likely to face persecution there by a local gang.The Trump administration did not appeal against that decision, and Immigration and Customs Enforcement has since said in a court filing that Abrego García’s deportation to El Salvador was an “administrative error”. The supreme court also called his removal illegal.You can read the full story here:One of China’s lead officials overseeing Hong Kong has condemned punitive US tariffs on China as “shameless” and attacked American “hillbillies” amid a continuing trade war between Beijing and Washington that has caused turmoil in global markets.Xia Baolong, director of the Hong Kong and Macao Work Office, said Hong Kong has never levied taxes on imports and that the US enjoyed a $272 bn trade surplus in the city over the past decade.US President Donald Trump has increased the levies imposed on China to 145%, while Beijing has set a retaliatory 125 percent toll on American imports – a move not followed by Hong Kong.Imposing tariffs on the city is “hegemonic and shameless in the extreme”, and shows that the US does not want Hong Kong to thrive, Baolong said in a pre-recorded speech at an event to mark the 10th iteration of China’s annual national security education day.He said the US “is the greatest culprit in undermining Hong Kong’s human rights, freedom, rule of law, prosperity and stability.”“It is not after our tariffs – it wants to take our lives,” Baolong was quoted as saying.He added that the sweeping US tariffs would not shake the determination of Beijing and Hong Kong governments and that “victory must belong to the great Chinese people”.“Let those American ’hillbillies’ wail before the 5,000-year-old civilisation of the Chinese nation” he said, adding that anyone seeking to bring China into poverty was an “enemy”.Hong Kong is a former British colony that became a special administrative region of China in 1997. In theory, it is governed under a system known as “one country, two systems”, a constitutional arrangement that promised Hong Kong a high degree of autonomy and rights protections.But it is widely seen to have reneged on the deal, crushing pro-democracy protests and imposing a national security law in 2020 – targeting secession, subversion, terrorism and collusion with foreign forces – which has in effect silenced opposition voices among Hong Kong’s once-vibrant civil society.Hong Kong is subject to the high US tariffs imposed on China as it is no longer considered a separate trading entity by Washington so means is not entitled to favourable trading terms anymore. Trump ended Hong Kong’s preferential trade status following China’s security crackdown on Hong Kong in 2020.As my colleague Martin Belam reports in our UK politics live blog, JD Vance has said the US is optimistic it can negotiate a “great” trade deal with the UK.In an interview with online outlet Unherd, the US vice president told Sohrab Ahmari:
      We’re certainly working very hard with Keir Starmer’s government. The president really loves the UK. He loved the queen. He admires and loves the king. It is a very important relationship. And he’s a businessman and has a number of important business relationships in [the UK].
      But I think it’s much deeper than that. There’s a real cultural affinity. And of course, fundamentally America is an Anglo country. I think there’s a good chance that, yes, we’ll come to a great agreement that’s in the best interest of both countries.
      Unlike China, Britain was spared the most punitive treatment in Trump’s initial tariff announcement on 2 April, but British imports in the US still incur a 10% charge while its steel and car sectors incur a rate of 25%.The UK government has been hopeful of a deal to exempt the UK from Trump’s tariffs.The UK’s chancellor, Rachel Reeves, will aim to continue negotiations for an economic deal with the US later this month when she travels to Washington to attend the International Monetary Fund’s spring meetings with other finance ministers. You can read more about Vance’s comments today in this article by my colleague Rachel Hall.South Korea has announced plans to invest an additional $4.9bn in the country’s semiconductor industry, citing “growing uncertainty” over US tariffs.“An aggressive fiscal investment plan has been devised to help local firms navigate mounting challenges in the global semiconductor race,” the finance ministry said.“To foster a dynamic, private sector-led ecosystem for semiconductor innovation and growth, the government will increase its investment in the sector from 26 trillion won ($18.2bn) to 33 trillion won,” the ministry added.Semiconductors are tiny chips that power just about everything, including computers, mobile phones and cars. They are central to the global economy. The UK, the US, Europe and China rely heavily on Taiwan for semiconductors.But South Korea – Asia’s fourth largest economy – is also a major exporter to the US and concerns about the semiconductor sector have hit the Seoul-listed shares of the world’s largest memory chip maker Samsung, and largest memory chip supplier SK Hynix.The statement of extra investment from South Korea’s finance ministry comes after the Trump administration launched investigations into imports of pharmaceuticals and semiconductors on national security grounds.These industries – so far exempt from the 10% US import charges that began on 5 April – may face tariffs after the probes are complete.US President Donald Trump has directed the US commerce department to conduct a three-week investigation into the imports, during which time public comments on the issue will be heard before a decision is made.Trump said on Sunday he would be announcing a tariff rate on imported semiconductors over the next week, adding that there would be flexibility with some companies in the sector.On 2 April, Trump announced sweeping tariffs on global trading partners, including the 25 percent on South Korean goods, before backtracking and suspending their implementation for 90 days.Even so, “duties targeting specific sectors such as semiconductors and pharmaceuticals, remain on the horizon”, finance minister Choi Sang-mok said during a meeting.“This grace period offers a crucial window to strengthen the competitiveness of South Korean companies amid intensifying global trade tensions,” he added.Good morning and welcome to our US politics blog.Former US president Barack Obama has condemned the education department for freezing $2.3bn in federal funds to Harvard University after the elite college rejected a list of demands from the White House.In some of his most vocal criticism of this Trump administration, Obama praised Harvard, the country’s oldest university, for setting an example for other higher education institutions to reject federal overreach into its governance practices.He wrote in a post on X:
      Harvard has set an example for other higher-ed institutions – rejecting an unlawful and ham-handed attempt to stifle academic freedom, while taking concrete steps to make sure all students at Harvard can benefit from an environment of intellectual inquiry, rigorous debate and mutual respect. Let’s hope other institutions follow suit.
      His comments came after Harvard decided to fight the White House’s demands that it crack down on alleged antisemitism and civil rights violations. It is the first major US university to defy pressure from the White House to change its policies.In a letter to Harvard on Friday, the administration called for broad government and leadership reforms, a requirement that Harvard institute what it calls “merit-based” admissions and hiring policies as well as conduct an audit of the study body, faculty and leadership on their views about diversity.The demands, which are an update from an earlier letter, also call for a ban on face masks, which appeared to target pro-Palestinian protesters; close its diversity, equity and inclusion programs, which it says teach students and staff “to make snap judgments about each other based on crude race and identity stereotypes”; and pressured the university to stop recognizing or funding “any student group or club that endorses or promotes criminal activity, illegal violence, or illegal harassment”.The administration also demanded that Harvard cooperate with federal immigration authorities.Harvard’s president said in a letter that the university would not comply with the Trump administration’s demands to dismantle its diversity programming and to limit student protests in exchange for its federal funding.“No government – regardless of which party is in power – should dictate what private universities can teach, whom they can admit and hire, and which areas of study and inquiry they can pursue,” Alan Garber, the university president, wrote, adding that Harvard had taken extensive reforms to address antisemitism.The department of education announced in March that it had opened an investigation into 60 colleges and universities for alleged “anti-Semitic harassment and discrimination”. It came after protests against Israel’s war on Gaza were put on across campuses last year, demonstrations that many Republicans framed as antisemitic.Harvard’s response to the White House’s demands was in sharp contrast to the approach taken by Columbia University, the epicentre of last year’s protests against Israel’s assault on Gaza.The Trump administration cut $400m in grants to the private New York school, accusing it of failing to protect Jewish students from harassment. The school caved in to demands and responded by agreeing to reform student disciplinary procedures and hiring 36 officers to expand its security team.Stay with us throughout the day as we have more reaction to this story and many others. More

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      Home Alone 2 director says he fears he will be deported if he cuts Trump cameo

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      Film-maker Chris Columbus says he has come to regard Donald Trump’s cameo in his movie Home Alone 2: Lost in New York as “an albatross” that he wishes to remove.But, Columbus added, he fears the president’s administration would deport him if he followed through with nixing the scene from more than 30 years ago.“It’s become this curse,” Columbus told the San Francisco Chronicle in an interview published Monday. “It’s become an albatross for me. I just wish it was gone.”Though born and raised in the US, the San Francisco resident of Italian ancestry said he worried he would “have to go back to Italy or something” if he erased the cameo.Columbus’s comments – made in advance of a tribute he is scheduled to receive at the 68th San Francisco international film festival on 26 April – revisited a controversy that began in 2020, toward the conclusion of Trump’s first presidency. The director of both Home Alone films told Business Insider that Trump’s cameo in the 1992 sequel was a condition of being able to film inside New York’s Plaza hotel, which Trump owned at the time.Trump, best known at that time as a real-estate development tycoon, “did bully his way into the movie”, Columbus told Business Insider, describing how the cameo was on top of a fee. He claimed Trump told him: “The only way you can use the Plaza is if I’m in the movie.”In late 2023, less than a year before he became president for the second time, Trump went on his Truth Social platform and accused Columbus of lying. He said Columbus’s team was “begging” him to make a cameo and that it ended up being “great for the movie”.Columbus opted against immediately responding to those claims from Trump. Yet in Monday’s interview, the director made it a point to say: “I’m not lying. … There’s no world I would ever beg a non-actor to be in a movie. But we were desperate to get the Plaza hotel.”According to Columbus, his instinct was to cut the cameo and regrets that he changed his mind after viewers at a screening in Chicago “cheered … and cheered and … thought it was hilarious”.“I never thought that was going to be considered hilarious,” Columbus said, referring to the seven-second scene in which Trump gives star Macaulay Culkin’s character directions on the Plaza Hotel. “It’s become this thing that I wish … was not there.”The idea of removing Trump from Home Alone – which made $359m (£280m) to become 1992’s third-highest grossing film – has been tested before.Trump supporters complained in 2019 when a cut of Home Alone 2 screened on Canadian television removed his cameo. Then, in early 2021, Culkin himself said he was “sold” on the concept of digitally removing Trump from the film.Columbus’s remark to the Chronicle that he fretted being ousted from the US if he did trash Trump’s cameo alluded to prominent deportation cases being pursued by the White House.In one instance since he retook the Oval Office, Trump’s administration erroneously deported a man living in Maryland to a mega-prison in El Salvador. And immigration officials under his command have detained academic scholars around the US for deportation proceedings after their support of pro-Palestine protests.The Trump administration has also sought to punish media figures which it considers to have crossed the president. Trump has demanded $20bn from CBS News in a lawsuit over the editing of a 60 Minutes interview with his opponent in the 2024 election, former vice-president Kamala Harris. He also sued the Des Moines Register over an Iowa election poll that turned out to be inaccurate.ABC News recently settled a lawsuit with Trump for $15m over incorrectly saying the president had been found civilly liable for raping E Jean Carroll. A jury had actually found Trump “sexually abused” Carroll but had not raped her.“I can’t cut it,” Columbus – whose other blockbusters include Mrs Doubtfire and the first two Harry Potter films – reportedly said of Trump’s cameo.“If I cut it, I’ll probably be sent out of this country. I’ll be considered sort of not fit to live in the United States.” More

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      US begins inquiry into pharmaceutical and chip imports in bid to impose tariffs

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      The Trump administration is kicking off investigations into imports of pharmaceuticals and semiconductors into the US as part of an attempt to impose tariffs on both sectors on national security grounds, notices posted to the Federal Register on Monday showed.The filings scheduled to be published on Wednesday set a 21-day deadline from that date for the submission of public comment on the issue and indicate the administration intends to pursue the levies under authority granted by the Trade Expansion Act of 1962. Such inquiries need to be completed within 270 days after being announced.The Trump administration has started 232 investigations into imports of copper and lumber, and inquiries completed in the US president’s first term formed the basis for tariffs rolled out since his return to the White House in January on steel and aluminum and on the auto industry.The US began collecting 10% tariffs on imports on 5 April. Pharmaceuticals and semiconductors are exempt from those duties, but Trump has said they will face separate tariffs.Trump said on Sunday he would be announcing a tariff rate on imported semiconductors over the next week, adding there would be flexibility with some companies in the sector.The US relies heavily on chips imported from Taiwan, something the then president, Joe Biden, sought to reverse by granting billions in Chips Act awards to lure chipmakers to expand production in the US.Taiwan’s economy minister, Kuo Jyh-huei, said its government would run simulations for various levels of tariffs on semiconductors and seek talks with the US.Taiwan is home to TSMC, the world’s leading producer of the most advanced chips and a main contributor to the island’s GDP. Speaking to reporters outside parliament, Kuo said he would seek to ensure “fair competition” for the Taiwanese industry.The Taiwanese and US chip sectors are complementary, he added.The investigation announced on Monday will include pharmaceuticals and pharmaceutical ingredients as well as other derivative products, the notice showed.Drugmakers have argued that tariffs could increase the chance of shortages and reduce access for patients. Still, Trump has pushed for the fees, arguing that the US needs more drug manufacturing so it does not have to rely on other countries for its supply of medicines.Companies in the industry have lobbied Trump to phase in tariffs on imported pharmaceutical products in hopes of reducing the sting from the charges and to allow time to shift manufacturing.Large drugmakers have global manufacturing footprints, mainly in the US, Europe and Asia, and moving more production to the US involves a major commitment of resources and could take years. More

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      Trump news at a glance: El Salvador’s Bukele vows to keep wrongly deported man

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      The president of El Salvador said in a meeting with Donald Trump in the White House on Monday that he would not order the return of a Maryland man who was deported in error to a Salvadorian mega-prison.“The question is preposterous,” Nayib Bukele said in the Oval Office on Monday. “How can I smuggle a terrorist into the United States? I’m not going to do it.”He added: “I don’t have the power to return him to the United States,” and said he would not release the man, Kilmar Abrego García, into El Salvador either. “I’m not very fond of releasing terrorists into the country.”The comments came a day after the Trump administration claimed it was not legally obligated to secure the return of Abrego García, despite the US supreme court ruling that the administration should “facilitate” bringing him back.Earlier this month, the Trump administration acknowledged that Abrego García, an immigrant from El Salvador who was living in Maryland with protected status, was deported to a prison in El Salvador on 15 March as a result of an “administrative error”. In 2019 an immigration judge had prohibited the federal government from deporting him.Trump officials defiant over wrongly deported manThe Trump administration escalated its stubborn defiance against securing the release of a man wrongly deported to El Salvador on Monday, advancing new misrepresentations of a US supreme court order.“The ruling solely stated that if this individual at El Salvador’s sole discretion was sent back to our country, we could deport him a second time,” said Trump’s policy chief Stephen Miller. His remarks went beyond the tortured reading offered by the US attorney general, Pam Bondi, who also characterized the supreme court order as only requiring the administration to provide transportation to Abrego García if released by El Salvador.Read the full storyPalestinian Columbia student activist detained by IceA Palestinian green card holder and student at Columbia University was apprehended by US immigration authorities on Monday, according to his lawyers and a video of the incident. Mohsen Mahdawi, who was a leader of the pro-Palestinian protests at Columbia last spring, was arrested by Ice on Monday morning in Colchester, Vermont, while he was attending a naturalization interview, his lawyer said in a statement to the Guardian.Read the full storyTrump administration sued over tariffs in trade courtA legal advocacy group on Monday asked the US court of international trade to block Donald Trump’s sweeping tariffs on foreign trading partners, arguing that the president overstepped his authority. The lawsuit was filed by the Liberty Justice Center, a legal advocacy group, on behalf of five US businesses that import goods from countries targeted by the tariffs.Read the full storyUS begins inquiry into pharmaceutical and chip imports, paving way for tariffsThe Trump administration is kicking off investigations into imports of pharmaceuticals and semiconductors as part of a bid to impose tariffs on both sectors on national security grounds, notices posted to the Federal Register on Monday showed.Read the full storyHarvard will not ‘yield’ to Trump demands over $9bn in cutsHarvard University said on Monday that it will not comply with a new list of demands from the Trump administration issued last week that the government says are designed to crack down on antisemitism and alleged civil rights violations at elite academic institutions.Read the full storyMemo outlines plan to slash US state department budget in halfThe Trump administration is reportedly proposing to slash the state department budget by nearly half in a move that could drastically reduce US international spending and end its funding for Nato and the United Nations, according to an internal memorandum.Read the full storyRepublican supporters of Ukraine put pressure on TrumpRepublican supporters of Ukraine are using the Kremlin’s deadly missile strikes as their latest evidence to convince Donald Trump that he must increase pressure on Vladimir Putin if he wants to reach a ceasefire deal.Read the full storyUS soldier revealed as neo-Nazi TikTok followerAn active-duty serviceman in the US army is openly following a proscribed neo-Nazi terrorist group on social media, one that has vowed to recruit soldiers in preparation for a so-called race war. Experts say examples like this shows how under Pete Hegseth, the Pentagon is allowing extremism to go unchecked.Read the full storyWhat else happened today:

      A man who broke into Pennsylvania governor Josh Shapiro’s mansion – where he set a fire – had planned to beat him with a hammer because he hates the politician, according to court documents released on Monday.

      A jury was selected on Monday to hear a retrial of Sarah Palin’s claims that the New York Times libeled her in an editorial eight years ago.

      More than 370 alumni of Georgetown University joined 65 current students in signing on to a letter opposing immigration authorities’ detention of Dr Badar Khan Suri, a senior postdoctoral fellow.
      Catching up? Here’s what happened on 13 April 2025. More

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      Trump administration sued over tariffs in US international trade court

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      A legal advocacy group on Monday asked the US court of international trade to block Donald Trump’s sweeping tariffs on foreign trading partners, arguing that the president overstepped his authority.The lawsuit was filed by the Liberty Justice Center, a legal advocacy group, on behalf of five US businesses that import goods from countries targeted by the tariffs.“No one person should have the power to impose taxes that have such vast global economic consequences,” Jeffrey Schwab, Liberty Justice Center’s senior counsel, said in a statement. “The Constitution gives the power to set tax rates – including tariffs – to Congress, not the President.”The Liberty Justice Center is the litigation arm of the Illinois Policy Institute, a free market thinktank. It was instrumental in the supreme court case Janus v AFSCME in which it successfully fought to weaken public labor unions collective bargaining power.According to the group’s statement, the tariffs case was filed on behalf of five owner-operated businesses who have been severely harmed by the tariffs. The businesses include a New York-based company specializing in the importation and distribution of wines and spirits, an e-commerce business specializing in the production and sale of sportfishing tackle, a company that manufactures ABS pipe in the United States using imported ABS resin from South Korea and Taiwan, a small business based in Virginia that makes educational electronic kits and musical instruments, and a Vermont-based brand of women’s cycling apparel.Representatives of the White House did not immediately respond to an email seeking comment.The Trump administration faces a similar lawsuit in Florida federal court, where a small business owner has asked a judge to block tariffs imposed on China. More

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      Trump memo outlines plan to slash US state department budget in half

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      The Trump administration is reportedly proposing to slash the state department budget by nearly half in a move that could drastically reduce US international spending and end its funding for Nato and the United Nations, according to an internal memorandum.The memo based on spending cuts devised by the White House office of management and budget envisions the total budget of the state department and USAID, the main foreign assistance body which has been largely dismantled by Elon Musk’s “department of government efficiency”, or Doge, being reduced to $28.4bn, a reduction of $27bn or 48% from what Congress approved for 2025.The cuts would mean drastic decreases in funding for humanitarian assistance, global health and international organizations. Humanitarian assistance programs and global health funding would be slashed by 54% and 55% respectively, according to the memo, which was first reported by the Washington Post.The memo assumes that USAID, previously an independent agency before it was targeted by Doge, would be encompassed fully under the state department umbrella.There would also be drastic reductions to the state department workforce, which currently stands at 80,000.The memo proposes the elimination of 90% of support for international organizations, with financing for some 20 bodies – including the Nato alliance and the UN – eliminated.Targeted funding for the International Atomic Energy Agency and the International Civil Aviation Authority would continue but backing for international peacekeeping missions would end, according to the memo, citing unspecified “recent mission failures”.The cuts would also see the foreign service travel budget and benefits for staff severely curtailed, while the Fulbright scholarship, established by Congress in 1946 and which has facilitated educational exchanges involving more than 40 future heads of state or government, would be eliminated.So too would Bureau of Conflict and Stabilization Operations, which aims to anticipate and prevent wars around the globe.The cuts are yet to be agreed within the administration and would need to be approved by Congress, where they would be likely to encounter stiff resistance, even among many Republicans.The memo, dated 10 April, is signed by Douglas Pitkin, director of budget and planning at the state department, and Peter Marocco, who was until recently the department’s director of foreign assistance and acting deputy director of USAID.Marco Rubio, the secretary of state – who has hitherto favored an activist US role in international affairs – has until Tuesday to respond, the memo says.Chris Van Hollen, the ranking Democrat on the state department and USAID subcommittee of the Senate foreign relations committee, criticized the proposals as “an unserious budget”.“I predict it will hit a wall of bipartisan opposition,” he told the Post.The American Foreign Service Association called on Congress to reject any budget proposing cuts outlined in the memo, which it called “reckless and dangerous”. The cuts suggested “would empower adversaries like China and Russia who are eager to fill the void left by a retreating United States”, the association said. More

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      The Guardian view on Friedrich Merz’s grand coalition: gambling on a new centre ground | Editorial

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      Some years ago, hundreds of German finance ministry staff dressed in black and formed a giant zero to salute their boss, Wolfgang Schäuble, as he left office. It was a tribute to Mr Schäuble’s extreme fiscal conservatism, which had delivered Germany’s first balanced budget in the postwar period. Amid resurgent prosperity in the Angela Merkel years, the so-called black zero – symbolising a constitutional prohibition on public debt – had gradually acquired cult status.As a new administration prepares to take power in Berlin, it seems unlikely that human euro signs will welcome the latest politician to take on Mr Schäuble’s former role. But in dramatic fashion, the spending taps are set to be turned on. Via a swiftly staged March vote in the outgoing Bundestag, “debt brake” dogma was consigned to history by the chancellor‑elect, Friedrich Merz. The way was thus paved for groundbreaking expenditure on defence, and the overhaul of an economy being left behind in a changed, suddenly menacing world.So much for the theory – now for the practice. Mr Merz, the centre-right leader of the Christian Democratic Union (CDU), last week concluded the fastest set of coalition talks since 2009. Pending approval of the deal by Social Democratic party (SPD) members, he is expected to be sworn in as chancellor in by early May. In office, the “grand coalition” agreed between the CDU and the SPD – handed seven ministries including finance and defence – will immediately be confronted by challenges that dwarf those faced by almost all its predecessors.The US under Donald Trump, whether as economic partner or military ally, can no longer be relied upon – an era-defining shift whatever the outcome of the current tariff wars and Mr Trump’s negotiations with Moscow over Ukraine. China, once a vast outlet for the exports which fuelled growth, has morphed into a fearsome competitor, including on German soil. A stagnant economy, combined with a post-Merkel backlash against migration, has accelerated the rise of Alternative für Deutschland (AfD), one of the most extreme far‑right parties in Europe. Last week, a poll fatefully placed the AfD in the lead for the first time.The pressure from the right – both from within his own party and from the AfD – is having an impact. Mr Merz’s Trumpian promise to turn asylum seekers away at German borders from his “first day”, along with other draconian measures, will only allow the far right to up the ante still further. Meanwhile, he also appears to be looking for wriggle room on agreed coalition commitments to the less well off and to climate targets.Nevertheless, the broad economic thrust of the deal remains right for troubling times. The European Central Bank must play its part – by keeping yields on a leash. As Germany’s neighbours deal with similar geopolitical threats and uncertainties, the ability of the EU’s most powerful member state to show leadership and forge a path through the crisis will be crucial. With short-term growth acutely vulnerable to mood swings in the White House, the effects of spending will take time to be felt in people’s everyday lives. But the prospect of a transformative increase in public investment offers the hope of industrial renaissance and a restoration of voters’ trust in the political centre.Alongside his SPD counterparts last week, Mr Merz confidently announced that Germany was “back on track”. Europe badly needs him to be right.

      Do you have an opinion on the issues raised in this article? If you would like to submit a response of up to 300 words by email to be considered for publication in our letters section, please click here. More

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      Tariff turmoil to continue as Trump warns nobody ‘off the hook’ amid smartphone exemption – US politics live

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      Good morning and welcome to our US politics blog.In an announcement made late on Friday evening, Donald Trump’s presidential administration exempted smartphones and computers from the 125% levies imposed on imports from China as well as other “reciprocal” tariffs.The devices would be excluded from the 10% global tariff that Trump recently imposed on most countries, along with the much heftier import tax on China, in what seemed like a softening of the president’s trade positioning towards Beijing.US stock markets were expected to stage a recovery after the announcement. Shares in Apple and chip maker Nvidia were on course to surge after tariffs on their products imported into the US were lifted for three months.China’s commerce ministry said the exemption demonstrated the US taking “a small step toward correcting its erroneous unilateral practice of ‘reciprocal tariffs’,” and suggested the American administration cancel the whole punitive tariff regime.However, Trump’s commerce secretary, Howard Lutnick, said on Sunday that critical technology products from China would face separate new duties along with semiconductors within the next two months.“He’s saying they’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick said in an interview on ABC. “These are things that are national security, that we need to be made in America.”Amid the confusion over the White House’s tariff policy, Trump said he would provide more details on his administration’s approach on semiconductor tariffs later today.But he suggested any tariff exemption for China-made smartphones would be short-lived, writing on his social media: “Nobody is getting off the hook for unfair trade balances”. Stay with us throughout the day as we bring you the latest tariff developments and other US political stories.Spain’s economy minister, Carlos Cuerpo, is expected to meet the US treasury secretary, on Tuesday as he aims to bolster bilateral ties between the two countries.The Trump administration has slapped a 10% tariff on imports of most European goods, including olive oil, although it announced a 90-day pause last week on higher, 25% “reciprocal” duties.Spain is the world’s top exporter of olive oil and also sells important quantities of auto parts, steel and chemicals to the US. The country’s prime minister, Pedro Sánchez, has announced a €14.1bn (£12.2bn; $16bn) government aid package to industry to lessen the domestic impact of Trump’s levies.Maya Yang, a breaking news reporter and live blogger for Guardian US, has filed this story about a warning over the potential consequences of Trump’s erratic economic policies:Billionaire investor Ray Dalio said that he is worried the US will experience “something worse than a recession” as a result of Donald Trump’s trade policies.Speaking to NBC’s Meet the Press on Sunday, the 75-year-old hedge fund manager said: “I think that right now we are at a decision-making point and very close to a recession. And I’m worried about something worse than a recession if this isn’t handled well.”He went on to add: “A recession is two negative quarters of GDP and whether it goes slightly there. We always have those things. We have something that’s much more profound. We have a breaking down of the monetary order. We are going to change the monetary order because we cannot spend the amounts of money.”Dalio’s comments come in response to a tumultuous week across the global stock markets following the US president’s tariffs policies that include a 145% tariff raise on China. The billionaire also said there are “profound changes in our domestic order … and world order”, comparing current times with the 1930s.“I’ve studied history and this repeats over and over again. So if you take tariffs, if you take debt, if you take the rising power challenging existing power, if you take those factors and look at the factors, those changes in the orders, the systems, are very, very disruptive. How that’s handled could produce something that is much worse than a recession. Or it could be handled well,” he said.Dalio, who correctly predicted the 2008 recession, also said the current economic state of the US is “at a juncture”.“Let’s take the budget. If the budget deficit can be reduced to 3% of GDP, it will be about 7% if things are not changed. If it could be reduced to about 3% of GDP, and these trade deficits and so on are managed in the right way, this could all be managed very well,” he said.He went on to urge congressional members to take what he calls the “3% pledge”, adding that if they don’t, there will be a supply and demand problem for debt with results that will be “worse than a normal recession.”You can read the full story here:Chinese President Xi Jinping will be welcomed by Vietnam’s President Luong Cuong today as he seeks to strengthen economic ties in south-east Asia amid a trade war with Washington that has caused turmoil in global markets.In an article for the Nhan Dan newspaper, Xi called for more regional cooperation, saying China and Vietnam were “friendly socialist neighbours sharing the same ideals and extensive strategic interests”.He added that a “trade war and tariff war will produce no winner, and protectionism will lead nowhere”, without explicitly mentioning the US.The visit, planned for weeks, comes as Beijing faces 145% US duties, while Vietnam is negotiating a reduction of threatened US tariffs of 46%. China is Vietnam’s biggest trading partner; Hanoi has a good relationship with both Washington and Beijing.As my colleague Rebecca Ratcliffe notes in this story, officials in Hanoi were shocked when Vietnam was hit with the 46% tariff, even after various efforts to appease the Trump administration. The tariff, which has been paused, threatens to devastate the country’s ambitious economic growth plan.Xi will visit Vietnam, a manufacturing powerhouse, from 14 to 15 April, and Malaysia and Cambodia from 15 to 18 April. He last visited Cambodia and Malaysia nine and 12 years ago, respectively.Xi’s trip to Hanoi, his second in less than 18 months, aims to consolidate relations with a strategic neighbour that has received billions of dollars of Chinese investments in recent years as China-based manufacturers moved south to avoid tariffs imposed by the first Trump administration.Good morning and welcome to our US politics blog.In an announcement made late on Friday evening, Donald Trump’s presidential administration exempted smartphones and computers from the 125% levies imposed on imports from China as well as other “reciprocal” tariffs.The devices would be excluded from the 10% global tariff that Trump recently imposed on most countries, along with the much heftier import tax on China, in what seemed like a softening of the president’s trade positioning towards Beijing.US stock markets were expected to stage a recovery after the announcement. Shares in Apple and chip maker Nvidia were on course to surge after tariffs on their products imported into the US were lifted for three months.China’s commerce ministry said the exemption demonstrated the US taking “a small step toward correcting its erroneous unilateral practice of ‘reciprocal tariffs’,” and suggested the American administration cancel the whole punitive tariff regime.However, Trump’s commerce secretary, Howard Lutnick, said on Sunday that critical technology products from China would face separate new duties along with semiconductors within the next two months.“He’s saying they’re exempt from the reciprocal tariffs, but they’re included in the semiconductor tariffs, which are coming in probably a month or two,” Lutnick said in an interview on ABC. “These are things that are national security, that we need to be made in America.”Amid the confusion over the White House’s tariff policy, Trump said he would provide more details on his administration’s approach on semiconductor tariffs later today.But he suggested any tariff exemption for China-made smartphones would be short-lived, writing on his social media: “Nobody is getting off the hook for unfair trade balances”. Stay with us throughout the day as we bring you the latest tariff developments and other US political stories. More