More stories

  • in

    Trump announces 100% tariffs on movies ‘produced in foreign lands’

    Donald Trump on Sunday announced on his Truth Social platform a 100% tariff on all movies “produced in Foreign Lands”, saying the US film industry was dying a “very fast death” due to the incentives that other countries were offering to draw American film-makers.In his post, he claimed to have authorised the commerce department and the US trade representative to immediately begin instituting such a tariff.“This is a concerted effort by other Nations and, therefore, a National Security threat,” Trump said in the Truth Social post. “It is, in addition to everything else, messaging and propaganda!”“WE WANT MOVIES MADE IN AMERICA, AGAIN!” Trump added.Commerce secretary Howard Lutnick posting on X said: “We’re on it.” Neither Lutnick nor Trump provided any details on the implementation. It was not immediately clear whether the move would target production companies, foreign or American, producing films overseas.Film and television production in Los Angeles has fallen by nearly 40% over the last decade, according to FilmLA, a non-profit that tracks the region’s production. At the same time, governments around the world have offered more generous tax credits and cash rebates to lure productions, and capture a greater share of the $248bn that Ampere Analysis predicts will be spent globally in 2025 to produce content.Politicians in Australia and New Zealand said on Monday they would advocate for their respective film industries, after the president’s announcement.Australia’s home affairs minister Tony Burke said he had spoken to the head of the government body Screen Australia about the proposed tariffs. “Nobody should be under any doubt that we will be standing up unequivocally for the rights of the Australian screen industry,” he said in a statement.New Zealand prime minister Christopher Luxon told a news conference the government was awaiting further detail of the proposed tariffs. “We’ll have to see the detail of what actually ultimately emerges. But we’ll be obviously a great advocate, great champion of that sector in that industry,” he said.The announcement from Trump comes after he triggered a trade war with China, and imposed global tariffs which have roiled markets and led to fears of a US recession. The film industry has already been feeling the effects of the tariffs, as China in April responded to the announcements by reducing the quota of American movies allowed into that country.China is the world’s second largest film market after the US, although in recent years domestic offerings have outshone Hollywood imports.Former senior commerce department official William Reinsch, a senior fellow with the Center for Strategic and International Studies, said retaliation against Trump’s foreign movies tariffs would be devastating.“The retaliation will kill our industry. We have a lot more to lose than to gain,” he said, adding that it would be difficult to make a national security or national emergency case for movies. More

  • in

    NPR and PBS push back against Trump’s order to cut funding: ‘This could be devastating’

    The heads of embattled US public broadcasters, National Public Radio (NPR) and the Public Broadcasting Service (PBS), defended themselves against efforts by the Trump administration to cut off taxpayer funding, with both telling a Sunday political talk show they were looking at legal options.PBS chief executive, Paula Kerger, told CBS News’s Face the Nation that Republican-led threats to withdraw federal funding from public broadcasters had been around for decades but are “different this time”.Kerger said: “They’re coming after us on many different ways … we have never seen a circumstance like this, and obviously we’re going to be pushing back very hard, because what’s at risk are our stations, our public television, our public radio stations across the country.”Donald Trump last week issued an executive order blocking NPR and PBS from receiving taxpayer funds through the Corporation for Public Broadcasting (CPB).The White House said that unlike in 1967, when the corporation was established, the media landscape is now filled with news options and the concept of government funded news media was “not only outdated and unnecessary but corrosive to the appearance of journalistic independence”.The order added: “Which viewpoints NPR and PBS promote does not matter. What does matter is that neither entity presents a fair, accurate, or unbiased portrayal of current events to taxpaying citizens.”On Sunday, Kerger warned that some stations in smaller communities across the US could lose 40 to 50% of their funding. “And for them, it’s existential, and that’s what’s at risk if this funding goes away,” she said.NPR chief executive, Katherine Maher, who like Kruger was grilled by Republicans on Capital Hill last month over claims that programing at both operations was politically-biased, said her organization is “looking at whatever options are available to us”.But she added: “I think it’s a little preliminary for us to speak to the specific strategies that we might take.”Maher warned that the impact to local radio stations was immediate, “especially in a time where we’re seeing an advance of news deserts across the nation, 20% of Americans don’t have access to another local source of news. The impact of this could really be devastating, particularly in rural communities.”But the NPR boss also sought to resist the US president’s claims that her operation is left-leaning and pointed to reluctance by Trump administration officials to come on NPR shows.The point of public broadcasting, Maher said, is to “bring people together in those conversations and so, we have had a whole host of conservative voices on air of late”.Maher added: “We’ve been making requests of the Trump administration to have their officials air. We would like to see more people accept those invitations. It’s hard for us to be able to say we can speak for everyone when folks won’t join us.”skip past newsletter promotionafter newsletter promotionIn a university commencement address in Alabama last week, Trump told journalism majors that he’s not sure he likes the press, but acknowledged a free press is important even though he has repeatedly called American journalists “enemies of the people”.“We need a brilliant press. They’re like a watch-keeper. They’re very important. And you can go out and take it down a new track. Help save the country. The people of this country, they know the truth when they hear it. That’s why the ratings, the approval numbers of the media, are so low.”However, ongoing arguments over media bias and threats to defund public broadcasters put children’s programming is at risk, including those that are not enrolled in formal pre-K schooling, Kerger warned on CBS.“That was the idea of Sesame Street and Mister Rogers, and everything that has followed since, is to make sure that children that do not have an access to a full array of resources have the opportunity to learn … That’s what’s at risk.” she said. More

  • in

    Trump says he ‘doesn’t rule out’ using military force to control Greenland

    Donald Trump would not rule out using military force to gain control of Greenland, the world’s largest island and an autonomous territory within Denmark, a fellow Nato member with the US.Since taking office, the US president has repeatedly expressed the idea of US expansion into Greenland, triggering widespread condemnation and unease both on the island itself and in the global diplomatic community. Greenland is seen as strategically important both for defense and as a future source of mineral wealth.In an interview on NBC’s Meet The Press on Sunday, Trump was asked whether he would rule out using force against the territory.“I don’t rule it out. I don’t say I’m going to do it, but I don’t rule out anything. No, not there. We need Greenland very badly. Greenland is a very small amount of people, which we’ll take care of, and we’ll cherish them, and all of that. But we need that for international security,” Trump said.The exchange came as part of wide-ranging interview following Trump’s first 100-days in office last week and he was also asked about the idea of using military force against Canada – an idea once unthinkable but now a subject of speculation amid Trump’s repeated assertion he would like to make Canada the US’s 51st state.“It’s highly unlikely. I don’t see it with Canada. I just don’t see it, I have to be honest with you,” Trump said.Trump said he had spoke with Canada’s new prime minister, Mark Carney, and confirmed that the pair had not spoken about making his country part of the US.But he said they could discuss the topic when Carney visits Washington DC “this week or next week”. Carney, along with around 90% of Canadians, oppose the idea of folding Canada into the US. But Trump said he was open to a discussion.“I’ll always talk about that. You know why? We subsidize Canada to the tune of $200bn a year,” Trump said. “We don’t need their cars. In fact, we don’t want their cars. We don’t need their energy. We don’t even want their energy. We have more than they do. We don’t want their lumber. We have great lumber. All I have to do is free it up from the environmental lunatics.”skip past newsletter promotionafter newsletter promotionTrump said that if “Canada was part of the US it wouldn’t cost us. It would be great … it would be a cherished state. And, if you look at our map, if you look at the geography – I’m a real estate guy at heart. When I look down at that without that artificial line that was drawn with a ruler many years ago – was just an artificial line, goes straight across. You don’t even realize.”“What a beautiful country it would be,” he added.A poll published last month found that 68% of Americans believe Trump is serious about the US trying to take over Greenland, and 53% think Trump is serious when he talks about the US trying to take control of Canada.But the survey, commissioned by ABC News found that respondents didn’t think either annexation would be a good idea. About 86% said they opposed the US trying to take control of Canada, and 76% opposed trying to take control of Greenland. More

  • in

    Sheet show: MyPillow pitchman Mike Lindell’s Trumpified ‘news venture’

    Millions of votes were stolen in the presidential election – only in the 2020 one, the 2024 one was fine. Freedom is under attack! DEI judges are going after Americans! President Trump is keeping his promises. Freedom is making a comeback! Bed sheets, any size, any color, are available for $25 a set if you use the promo code L77, offer is for a limited time only.Welcome to LindellTV, a strange mashup of a rightwing conspiracy theory news channel and bedroom-focused shopping platform.LindellTV is one of several pro-Trump media outlets that was granted highly prized White House press credentials earlier this year – a move the government said would boost democracy, but which so far seems to have only boosted “make America great again” propaganda.Founded by Mike Lindell, a pillow company CEO turned election fraud obsessive, LindellTV features fawning coverage of Trump and his allies, mixed in with conspiracy theories about voting machines – an issue which has already seen Lindell sued for millions of dollars. The channel isn’t carried by any actual television network, and its production values are comically poor, but that hasn’t stopped LindellTV working its way into the highest arena of US journalism.Access to the White House briefing room, where the press secretary, Karoline Leavitt, holds daily briefings for the world’s media, is highly coveted, and eyebrows were raised when the likes of LindellTV and Steve Bannon’s podcast were invited in. Only about 60 journalists can fit in the room, where they get a chance to ask tough questions of the government, an opportunity to hold the White House to account on behalf of the US and the world.LindellTV reporters rarely take that chance.“Will you guys also consider releasing the president’s fitness plan?” Cara Castronuova asked Leavitt in April, after the White House said it would share results from Trump’s annual medical exam.“He actually looks healthier than ever before, healthier than he looked eight years ago, and I’m sure everybody in this room can agree. Is he working out with Bobby Kennedy, and is he eating less McDonald’s?”The addition of friendly media outlets like LindellTV has helped take the edge off what has been a traditionally adversarial relationship between journalists and the White House press secretary. But it has also denied a seat at the table for people who might ask questions not about the remarkable health of the 78-year-old, 224lb president.Instead, LindellTV’s daily content features hourlong shows from obscure rightwing podcasters, each lining up to tell the viewers – no data is available on how many people actually watch the network – what a superb job the Trump administration is doing.The flagship show is hosted by Lindell himself, a Minnesota-born, moustachioed businessman whose MyPillow business enjoyed relative success before being dropped by almost all high street retailers after Lindell descended into election conspiracy chaos.Lindell broadcasts his litany of conspiracy theories from what appears to be his home, but sometimes he does a walkabout, as was the case on Thursday, when he co-hosted The Mike Lindell Show from outside the White House. Most of his theories relate to judges “going after” him over his sustained and untrue claims that the 2020 election was stolen.A segment on Thursday afternoon, nominally on “election integrity”, featured Lindell speaking into the camera for almost an hour, flanked by two women from LindellTV, each holding a microphone in front of their boss and each looking very bored.Atypically for a broadcaster, Lindell was on a phone call while speaking to the camera, and at one point put the caller on speaker so he could also address the viewers. The sound was muffled, and Lindell eventually hung up the phone – “I’ll call you later,” Lindell said – before throwing to a woman called Vanessa in the LindellTV studio.Vanessa wasn’t listening. “Are you there?” Lindell said.Vanessa snapped to attention. Lindell talked at her for three minutes, before asking that the channel’s producers show a photo on screen of him talking to the press. LindellTV duly flashed to a blurry photo of Lindell speaking to a row of cameras.Lindell paused, and Vanessa finally got the chance to say something.“The people are depending on you,” she told Lindell.skip past newsletter promotionafter newsletter promotionVanessa, with Lindell still on screen, asked her production team to play a clip of Trump speaking about Lindell at a rally. The viewers heard a panicked producer saying they didn’t have that footage, a message Vanessa relayed to viewers, before Lindell took charge, imploring people to buy his pillows and bedsheets.“They’re $25 a set,” Lindell said. “Any size, any color, while they last,” he added. The network then showed the MyPillow website, as Lindell told the production team to scroll down to the particular product he wanted people to buy. “We have over 250 products!” Lindell told the viewers.One of the reporters then joined in to tout the benefits of MyPillow “dream sheets”. “Most comfortable, best, softest sheets of my life,” she said.It was an unusual segment for a news network, and got stranger when one of the reporters then went on to urge people to buy Lindell’s book.“You will not ever have a dull moment,” the reporter said. “And praise Jesus for bringing you through this whole journey.”This shopping channel oeuvre is interspersed with a difficult-to-follow list of Lindell’s grievances.Earlier this week, above a chyron that read “DEI judge is going after Mike!!!!”, Lindell continued his four-year crusade to, in his words, restore election integrity.“The United States has the worst, everybody, elections on planet Earth. There’s nobody worse than us. You can find communist countries – nobody has worse elections than the United States,” Lindell said.The channel then cut to an advert for MyPillow, of course, but also invited viewers to claim $20,000 in silver from a website called MikeLindellGold.com.When the Guardian tried to access the website, Google Chrome denied access, warning that it “might be trying to steal your information”.It was a neat metaphor for a channel that is built on chaos and slip-ups and dodgy facts and figures, a channel that despite those flaws, has been granted much sought-after access to the Trump administration. More

  • in

    Trump says he doesn’t know if he needs to uphold constitutional due process

    Donald Trump said “I don’t know” when asked if he needed to uphold the US constitution when it comes to giving immigrants the right of due process as he gave a wide-ranging TV interview broadcast on Sunday.At the same time the US president also said he saw himself as leaving office at the end of his current term and not seeking a third one – something he has not previously always been consistent on even though a third term is widely seen as unconstitutional.But when it comes to giving immigrants full rights in US law in the face of Trump’s long-promised campaign of mass deportations, Trump was less clear on the need for due process and following US law and court decisions.“I don’t know. I’m not, I’m not a lawyer. I don’t know,” Trump replied when asked by Meet the Press moderator Kristen Welker whether he agreed with his secretary of state Marco Rubio who had previously expressed support for the idea that everyone had the right to due process.When pressed Trump continued: “I have to respond by saying, again, I have brilliant lawyers that work for me, and they are going to obviously follow what the supreme court said. What you said is not what I heard the supreme court said. They have a different interpretation,” the US president added.Trump also gave his clearest indication to date that he plans to leave office at the end of his second term, acknowledging the constitutional constraints preventing him from seeking a third term.“I’ll be an eight-year president, I’ll be a two-term president. I always thought that was very important,” Trump said. But he acknowledged that some people want him to serve a third term, which is currently prohibited by a constitutional amendment passed in 1947.“I have never had requests so strong as that,” told the broadcaster. “But it’s something that, to the best of my knowledge, you’re not allowed to do. I don’t know if that’s constitutional that they’re not allowing you to do it or anything else.”“I’m looking to have four great years and turn it over to somebody, ideally a great Republican, a great Republican to carry it forward,” he added.Trump described the support for a third term as sign of approval, “because they like the job I’m doing, and it’s a compliment. It’s really a great compliment.”The president’s comments downplaying the idea of a third term come as the Trump Organization began selling Trump 2028-branded red hats. The $50 hats are listed with the description: “The future looks bright! Rewrite the rules with the Trump 2028 high crown hat.”In January, Tennessee Republican congressman Andy Ogles introduced a resolution in January seeking to amend the Constitution to allow the president to be elected for up to three terms. That was followed by calls to reaffirm the 22nd amendment’s prohibition on a third term.Trump refused to be drawn on whom he might support as a successor, a position typical to president’s without the option to run again who do not want to be seen as lame ducks as party succession issues begin to bubble up.Trump praised both vice president JD Vance and Rubio – two names that are consistently mentioned – and was asked if he saw Vance as his successor.“It could very well be … I don’t want to get involved in that. I think he’s a fantastic, brilliant guy. Marco is great. There’s a lot of them that are great. I also see tremendous unity. But certainly you would say that somebody’s the VP, if that person is outstanding, I guess that person would have an advantage.” More

  • in

    Federal workers in limbo amid whiplash White House firings and court-ordered rehirings

    In the 100 days since Donald Trump returned to power, the new administration has driven tens of thousands of federal workers from a civil service it has denigrated as “bloated” and “corrupt”. Among its first targets: probationary workers like Cindi Hron.Hron, a landscape architect with the US Forest Service, was one of thousands abruptly fired across the agency on 14 February, in an action some now refer to as the Valentine’s Day massacre, executed by Elon Musk’s newly empowered “department of government efficiency”, or Doge.“As much as I could see it coming, it was still a gut punch,” she said. Hron was given just two hours to return her equipment before losing access to her government email.In the weeks that followed, similar scenes played out across the government – nurses at the Department of Veterans Affairs, food safety regulators at the Department of Agriculture, scientists at the Department of Health and Human Services. Employees, along with unions and legal groups, challenged the legality of the widespread terminations. At least 24,000 of those dismissals led to court-ordered reinstatements, which have since been paused.Whiplashing court orders have left probationary workers in a fragile state of limbo. Some have been rehired, while others remain on administrative leave. Some have received backpay and benefits, while others have not. Some were returned to work, put on administrative leave and then fired again, after an intervention by the supreme court.“There is a state of confusion as to anybody’s status,” said Jeffrey Grant, a former deputy director at the Centers for Medicare and Medicaid Services.Hron had already moved back to Pennsylvania, where she had relocated from to accept the Forest Service job in Utah, when she learned that she would be reinstated, in compliance with a ruling by the Merit Systems Protection Board, an independent agency responsible for protecting federal employees. The reversal was welcome but the return to work felt precarious. When her department extended a second “deferred resignation” offer, she decided to take it.“Doge has just taken a baseball bat and it’s just breaking things,” she said. “It’s certainly not the way I ever anticipated leaving a job.”Probationary workers are employees who generally have less than a year in their role after being hired or promoted, though they are often highly skilled and have years of prior experience in the federal government. While they lack the full job protections of longer-tenured civil servants during this period, probationary workers can only be removed for poor performance or conduct.In late April, a federal judge in California said the administration’s suggestion that tens of thousands of probationary workers were dismissed because of their performance was “a total sham” and order several agencies to provide a retraction in writing.View image in fullscreenBut in a blow to efforts to challenge their removals, the office of special counsel, an independent watchdog agency, announced it was dropping its inquiry into a torrent of complaints that the Trump administration had unlawfully terminated probationary workers. The decision was a reversal of the conclusion reached by the previous head of the agency, Hampton Dellinger, who was fired by Trump.Craig Becker, senior counsel for the AFL-CIO, which is challenging the administration’s firings of probationary employees, said a legal defense network established to provide assistance to federal workers has fielded many calls from employees struggling with questions over benefits and job status.“It’s been a hellish way of treating people,” said Tom Di Liberto, a public affairs specialist and climate scientist at the National Oceanic and Atmospheric Administration (Noaa) who was among the probationary employees dismissed in February, rehired and put on administrative leave in March and dismissed again on 10 April.Di Liberto’s probationary period would have ended before he was refired on 10 April, but the termination was backdated to 27 February.“They didn’t want us basically to be able to say that we had employment,” he said. “I’m sure that’s not legal, but I’m sure that’s what the courts will decide.”It is not clear how many federal employees were in a probationary status when Doge began its mass firings earlier this year. An analysis by the Partnership for Public Service estimates the number was roughly 250,000. At the time Trump won the election in November, the federal workforce employed just over 3 million people, excluding the roughly 1.3 million active-duty military personnel.Musk initially promised Doge would slash $1tn – a sum so large he and Trump suggested some of the savings could be distributed to taxpayers. This month, Musk revised his target to $150bn – just 2% of the federal budget. A tracker of the savings Doge claims to have achieved is riddled with well-documented errors, duplications and inaccuracies.The Doge team’s efforts have also cost billions of dollars. The Partnership for Public Service estimated Doge’s firings, rehirings, lost productivity and paid leave will cost upwards of $135bn this fiscal year, not including costs associated with court battles their actions have incited.View image in fullscreenAmericans broadly support Doge’s stated mission – tackling waste and inefficiency in government. And experts on the federal bureaucracy as well as workers themselves acknowledge that reforms are needed.But the stories of fired workers, shared at town halls and protests, have helped rally raucous – and even poignant – opposition to Musk’s government-slashing initiative. Polls show Musk and Doge are increasingly unpopular. According to a recent Washington Post/ABC News/Ipsos poll, 56% of respondents agreed that Trump was “going too far” in laying off government employees.“Efficiency is a cloak for a Project 2025 operation to gut the federal workforce and replace career civil servants with Trump loyalists,” said Rob Shriver, the former director of the office of personnel management, referring to the far-right blueprint for overhauling the federal government.Shriver, who now serves as managing director of the Civil Service Strong initiative at Democracy Forward, a legal group contesting the administration’s sweeping dismissals of government employees, expressed concern that Doge’s brute-force approach to government cost-cutting could have lasting repercussions on the civil service.skip past newsletter promotionafter newsletter promotionThe administration’s treatment of federal workers risked eroding longstanding expectations of job security and confidence in its public service mission – advantages that help the government recruit new talent.“I think that the stability has been completely undermined by these antics,” Shriver said. “And I think folks have a lot of questions about what they would be asked to do were they to come in and work for a federal agency – whether what they would be asked to do would be in line with their values as somebody who wants to serve the public and takes an oath to the constitution.”Even after Musk said recently he would step back from leading Doge, the administration has made clear its government-shrinking crusade is far from complete. And probationary workers say they feel more vulnerable than ever. Last week, Trump signed an executive order making it easier to fire probationary employees by expanding agency discretion over whether they attain full status.Doge did not reply to multiple requests for comment.“President Trump is the chief executive of the executive branch and reserves the right to fire anyone he wants,” the White House press secretary, Karoline Leavitt, said in a statement.The day-to-day stress brought about by the administration’s demonization of federal workers as “deep state” bureaucrats working to thwart the president’s agenda has left the workforce deeply demoralized.One reinstated probationary employee with the US Forest Service in Alaska, who spoke on condition of anonymity for fear of professional reprisal, said some days she feels so “downtrodden” that she can’t stop crying. At the same time she feels a deep sense of resolve to “hold the line” and “not comply in advance”.“We are the indicator species in this situation,” she said. “This is happening to us first, but the ripple effects of not having us – and not having all of those protections that the federal government provides for the resources that people care so much about, and the lands that they subsist on – will be absolutely enormous.”View image in fullscreenThe anxiety and fatigue is by design. A destabilized civil service was central to the vision laid out by Russell Vought, head of the office of management and budget and chief architect of Project 2025, who once said: “We want the bureaucrats to be traumatically affected.”Multiple probationary employees told the Guardian they expect to be targeted in future rounds of layoffs. Several said they were pursuing other opportunities or had accepted their agency’s buyout offer, while some remained hopeful they would prevail in court.The mass exodus of probationary workers has already disrupted government functions and services – and is raising alarms about the loss of scientific and technical expertise.“The US has been a leader in hurricane science and in weather forecasting,” said Andy Hazelton, a physical scientist who worked on hurricane modeling at Noaa. “We have so much talent, so much knowledge and data. But everything that’s happened, it’s kind of threatening that.”Hazelton, who was among the probationary employees caught in the chaotic cycle of being fired, reinstated and dismissed again, said Noaa staff were already stretched thin. Staff reductions, coupled with proposed budget cuts, could affect work on the agency’s lifesaving forecasts just as hurricane season approaches, he warned.“I worry that the forecasts, perhaps the improvements we’ve come to rely on, may not be as reliable going forward,” he said.As Hron prepares to leave the Forest Service, she has been thinking about the oath she took nearly one year ago.During a security training as part of her onboarding, Hron remembers incorrectly answering a question about the type of threat facing the agency. She assumed the answer was “foreign”, but the correct response was “domestic”. At the time, she found it surprising.Now she has come to believe that the Trump administration’s war on federal workers is the very kind of domestic threat the agency warned of: “We just departed from the ethics, the guidelines and policies that shape what I understood the Forest Service to be.” More

  • in

    Donald Trump’s cartoon-like chaos leaves US economy on unstable course | Heather Stewart

    Ten days reporting from the US – in Pittsburgh, Washington DC, and just across the Potomac River in Arlington, Virginia – gave me a fascinating snapshot of what feels like the slow-motion unravelling of the world’s largest economy.So many conversations featured uncertainty and wariness; and weariness, too, as businesses and consumers weigh up every decision, against the backdrop of the chaos emanating from the White House.Even the president conceded last week that the economy was in a “transition period”, claiming he had warned of this during his campaign. (When challenged, the White House could not come up with any examples of when he had done so.)The problem for Trump and his supporters, many of whom remain staunchly loyal, is that the transition period in question is starting to resemble that felt by the classic Looney Tunes character Wile E Coyote between charging off a cliff into midair and plunging to the ground.So far, the hard data from the US economy is holding up well. Friday’s payrolls report was strong, and the negative first quarter gross domestic product reading, while worrying, was hard to take a clear reading from because of the rise in imports as companies stocked up ahead of tariffs.There is little sign of anything as dramatic as mass job cuts, or a sudden stop in consumer spending – although the recent crop of data mainly relates to the period before “liberation day”.Look at the forward-looking surveys, though, and there are clear signs of anxiety. The long-running Michigan consumer sentiment index just had its steepest quarterly decline since the 1990 recession.Spend any amount of time talking to US consumers and businesses, and it is abundantly clear why: there are so many sources of policy ambiguity as to make the future not just uncertain but completely unknowable.There is a cliche that “markets hate uncertainty”, but in truth the same applies to everyone in the real economy, too: the company wondering what size order to put in and how many people to hire and the family thinking about buying that fridge or booking that holiday.It is not surprising they are uncertain. No one, even inside the administration, can say with any confidence what the tariff rates on imports from specific countries will be in July.Even if the tariff policy was crystal clear, its impact on prices would be hard to gauge – depending, as it does, on how much of the cost companies are willing to bear (or “eat”, as the Americans have it) at the expense of reduced profits, and how much is passed on to consumers.For the moment, as the Treasury secretary, Scott Bessent, has admitted, the tariffs on China, at 145%, are now so high as to amount to an effective trade embargo.Not every company will have the deep pockets and global reach of Apple to be able to bend its supply chain away from China to manufacture products for the US elsewhere (in the iPhone-maker’s case, India). Instead, many will be scrambling to find substitutes, which may be more expensive or not exist at all. Shortages of some products seem a distinct possibility.At the same time, sharp cuts in federal budgets, many of which have an ideological taint, including Robert F Kennedy Jr’s decimation of the National Institutes of Health, are raising short-term questions about unemployment and much longer-term worries about the US’s world-leading science base.Some of the most heartbreaking conversations I had were about aspects of Trump’s immigration policy: the man who said a Guatemalan friend’s six-year-old son had stopped going to school in case his mum was snatched by the authorities while he was there, and the restaurant manager who said it was becoming harder to hire Latinos because even fully documented workers feared they could face deportation anyway.skip past newsletter promotionafter newsletter promotionThese are first and foremost human tragedies, but clearly they also have an economic dimension. The credit rating agency Fitch warned in a report last week: “Risks associated with mass deportations could include potential worker shortages, production delays and increased wage inflation that hinders revenue growth, weakens profitability and lowers return on investment.”Of course, because the US economy’s abrupt gearshift has been driven by deliberate policy actions, it’s tempting to think: “It doesn’t have to be like this.”Much more of the real economy impact so far results from this widely shared uncertainty – or perhaps it is better to call it fear – than from the specifics of Trump’s policies.Business owners told me that if they just knew what the final tariffs on products from the various countries in their supply chain would be, for example, then over time they could adapt.It is not completely out of the question that a more settled policy position could arrive in the coming weeks.Certainly, Bessent appears to be trying to manoeuvre Trump towards striking a series of “deals” (in effect, promises of concessions in exchange for tariff carve-outs) with key economies.Yet the president appears to have such a love of political drama – and such an inability to choose a course and stick to it – that the unknowability of future policy seems to be the very essence of Trump 2.0.It seemed to be the mighty bond markets, driving up the cost of US borrowing, that checked Trump’s initial “liberation day” drive, prompting the “pause”.But if time drags on with no agreements in sight, the next wave of distress signals are likely to come not from Wall Street but from main street – in soaring prices and empty shelves. How Trump responds then is anyone’s guess. More