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    Bessent Pitches Skittish Investors to Bet on Trump’s Economic Plan

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    The Treasury secretary urged executives and entrepreneurs to look beyond the Trump administration’s trade agenda.Treasury Secretary Scott Bessent urged skittish global business leaders on Monday to ignore President Trump’s economic naysayers and ramp up investment in the United States, defending an economic agenda that economists warn will slow economic growth and exacerbate inflation.Speaking to executives, entrepreneurs and policymakers, Mr. Bessent argued that the Trump administration’s economic plans go beyond trade policy and will pay off in the long run. He urged them to also focus on Mr. Trump’s plans to cut taxes and regulation, which he said would spur job creation and output.“Tariffs are engineered to encourage companies like yours to invest directly in the United States,” Mr. Bessent said in remarks at the Milken Institute Global Conference in Los Angeles. “You’ll be glad you did — not only because we have the most productive work force in the world. But because we will soon have the most favorable tax and regulatory environment as well.”His comments came just hours after Mr. Trump ordered up new tariffs on foreign film producers, a decision that left many in Hollywood puzzled about how such a tax would work.The Treasury Secretary has been working to ease concerns among investors that Mr. Trump’s trade plans will destabilize the global economy. Mr. Trump last month levied tariffs on countries around the world and escalated a trade fight with China, which sent financial markets plunging.Since then, Mr. Bessent has been racing to negotiate trade deals with dozens of countries. He has also signaled that the China tariffs are not sustainable, offering hope that Mr. Trump would soon begin negotiations to lower them.”Our goal with trade policy is to level the playing field for our great American workers and companies,” Mr. Bessent said.The Trump administration is working closely with congressional Republicans ]on tax legislation that would extend the 2017 tax cuts and offer new tax breaks for overtime pay, tips and Social Security benefits. Mr. Bessent made the case on Monday that investors need to consider the broader agenda when thinking about where to park their money.Describing Mr. Trump’s policies as “mutually reinforcing,” Mr. Bessent said, “acting in concert, they push toward the same goal — to solidify our position as the home of global capital.”Investors have grown increasingly wary of Mr. Trump’s policies in recent months, with stocks, bonds and the dollar all showing signs of weakness as fund managers fret over the uncertainty surrounding Mr. Trump’s policymaking approach.The International Monetary Fund projected last month that global output will slow to 2.8 percent this year from 3.3 percent in 2024 and sharply downgraded its outlook for the U.S. economy.On Monday, Mr. Bessent said that Mr. Trump would prove “critics in establishment circles” wrong.“We have the world’s reserve currency, the deepest and most liquid markets, and the strongest property rights,” Mr. Bessent said. “For these reasons, the United States is the premier destination for international capital.” More

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      Someone Should Tell Trump He’s About to Make the Trade Deficit Worse

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      There are many reasons President Trump should not be pushing Congress to pass huge tax cuts, but here’s one you may not have heard: Budget deficits and trade deficits are twins. When the former go up, so, generally, do the latter. So at the same moment Mr. Trump is upending the global economy in a feckless attempt to eliminate America’s trade deficit, he’s essentially pressuring Congress to increase it.Here’s how it happens. The United States buys a lot of goods from other countries, and we pay for the goods with dollars. But those dollars are no good abroad, so the countries we buy from invest them here. Some of the money goes, directly or indirectly, into businesses that are raising cash to build new data centers or expand natural gas facilities or construct new apartment complexes. Other dollars go into Treasury bonds or bills, which the federal government uses to fund our large budget deficit. (The same thing happens in reverse when other countries buy from the United States — but to a lesser degree, since our imports are larger than our exports.)If the budget deficit rises, American investors could theoretically cover the shortfall, but that would mean putting their money in Treasury securities rather than businesses and their capital needs. The other option is that foreign countries amass more dollars and plow them back into the U.S. economy. How would they get those additional dollars? From all the German cars and Chinese electronics and imported beer that Americans will buy with the money from their tax cuts.More generally, a larger budget deficit will require the government to borrow more money, which drives up interest rates. Higher interest rates mean a stronger dollar, which makes it more expensive for people in other countries to buy our products, cheaper for us to buy theirs, and thus the trade deficit widens.So cutting taxes, as Mr. Trump has told Congress to do, will drive up the budget deficit — and the trade deficit. All of this may seem counterintuitive, but it’s one of the few things that economists agree about.The budget deficit is already worryingly high and the tax cuts Mr. Trump is seeking would make it even larger. Last year the United States ran a $1.8 trillion budget deficit, or 6 percent of the gross domestic product — higher than at any other time except during World War II, the late-2000s financial crisis and the Covid-19 pandemic — despite strong economic growth and no unusual emergencies.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump Has Destroyed What Made America Great. It Only Took 100 Days.

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      In 1941, as President Franklin D. Roosevelt marshaled support for the fight against fascism, his chief antagonists were isolationists at home. “What I seek to convey,” he said at the beginning of an address to Congress, “is the historic truth that the United States as a nation has at all times maintained clear, definite opposition to any attempt to lock us in behind an ancient Chinese wall while the procession of civilization went past.” Roosevelt prevailed, and that victory expanded America’s relationship with the world in ways that remade both.Eighty-four years later, President Trump is systematically severing America from the globe. This is not simply a shift in foreign policy. It is a divorce so comprehensive that it makes Britain’s exit from the European Union look modest by comparison.Consider the breadth of this effort. Allies have been treated like adversaries. The United States has withdrawn from international agreements on fundamental issues like health and climate change. A “nation of immigrants” now deports people without due process, bans refugees and is trying to end birthright citizenship. Mr. Trump’s tariffs have upended the system of international trade, throwing up new barriers to doing business with every country on Earth. Foreign assistance has largely been terminated. So has support for democracy abroad. Research cuts have rolled back global scientific research and cooperation. The State Department is downsizing. Exchange programs are on the chopping block. Global research institutions like the U.S. Institute of Peace and the Wilson Center have been effectively shut down. And, of course, the United States is building a wall along its southern border.Other countries are under no obligation to help a 78-year-old American president fulfill a fanciful vision of making America great again. Already a Gaza cease-fire has unraveled, Russia continues its war on Ukraine, Europe is turning away from America, Canadians are boycotting our goods and a Chinese Communist Party that endured the Great Famine and the Cultural Revolution seems prepared to weather a few years of tariffs. Travel to the United States is down 12 percent compared with last March, as tourists recoil from America’s authoritarian turn.The ideologues driving Mr. Trump’s agenda defend their actions by pointing to the excesses of American foreign policy, globalization and migration. There is, of course, much to lament there. But Mr. Trump’s ability to campaign on these problems doesn’t solve them in government. Indeed, his remedies will do far more harm to the people he claims to represent than to the global elites that his MAGA movement attacks.Start with the economic impact. If the current reduction in travel to the United States continues, it could cost up to $90 billion this year alone, along with tens of thousands of jobs. Tariffs will drive up prices and productivity will slow if mass deportations come for the farm workers who pick our food, the construction workers who build our homes and the care workers who look after children and the elderly. International students pay to attend American universities; their demonization and dehumanization could imperil the $44 billion they put into our economy each year and threaten a sector with a greater trade surplus than our civilian aircraft sector.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Scott Bessent Accuses IMF and World Bank of ‘Mission Creep’

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      Treasury Secretary Scott Bessent on Wednesday called for major overhauls to the missions of the International Monetary Fund and the World Bank but said that the United States remained committed to maintaining its leadership role at the global economic institutions.The comments, made at a speech on the sidelines of the spring meetings of the I.M.F. and the World Bank, come at a moment of concern among policymakers that the Trump administration could withdraw the United States entirely from the fund and the bank.The United States has upended the global trading system in recent months, and the views of the Trump administration on climate change, international development and economic equity are often at odds with those of the other nations that are shareholders in the global institutions.The speech came a day after the I.M.F. downgraded its outlook for growth globally and in the United States as a result of President Trump’s punishing tariffs. Trade tension between the United States and China, the world’s largest economies, threaten to weigh on output this year and next.In his remarks, Mr. Bessent defended the Trump administration’s trade actions and called for China to curb economic practices that he said were destabilizing international commerce. He noted that the United States was actively engaged in trade talks with dozens of countries and expressed optimism that these negotiations would help rebalance the world economy and make the global trading system more fair.It remains unclear when, or if, the United States and China will begin to engage in talks. Mr. Trump has said he expects to speak with Xi Jinping, China’s leader, but no formal conversations have been scheduled.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s ‘Gold Card’ Set Off Panic in an Unexpected Place: Real Estate

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      The president initially said his $5 million green card alternative would replace a visa for foreign investors that has become a favorite financing tool of major developers.President Trump’s plan to sell green cards for $5 million each, a program he is calling a “gold card,” has largely been met with a shrug. It’s not clear exactly how the program would work, if it’s legal or how many potential immigrants would really pay $5 million for a path to U.S. citizenship.But in a niche area of dealmaking, alarm bells are blaring.Howard Lutnick, the commerce secretary, said on Tuesday that the plan to effectively sell green cards would replace the EB-5 investor visa, a favorite source of funding for major real estate projects.Massive developments — from New York’s Hudson Yards to the San Francisco Shipyard to, yes, Trump Plaza in Jersey City — have been financed in part by overseas investors applying to the EB-5 program, which grants permanent U.S. residence. Such investors are motivated by a green card, not by maximizing returns, and so for developers their capital tends to be less expensive than borrowing money from a typical commercial lender.The real estate company owned by the family of Trump’s son-in-law, Kushner Capital, drew scrutiny for its use of EB-5 funding during the first Trump administration.Overall, the EB-5 program does not bring in a lot of money — about $4 billion last year in the context of the $28 trillion U.S. economy — but it represents a huge profit bump for a small but powerful political contingency: major real estate developers. They are not likely to see EB-5 killed without a fight.“Cheap capital is the crack cocaine to the real estate industry and probably every other industry,” said Matt Gordon, the C.E.O. of E3iG, which advises both foreign investment-based visa applicants and U.S. companies seeking funding.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      The Sunday Read: ‘The For-Profit City That Might Come Crashing Down’

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      Tanya Pérez and Diane Wong and Listen and follow ‘The Daily’Apple Podcasts | Spotify | Amazon Music | YouTube | iHeartRadioIf Próspera were a normal town, Jorge Colindres, a freshly cologned and shaven lawyer, would be considered its mayor. His title here is “technical secretary.” Looking out over a clearing in the trees in February, he pointed to the small office complex where he works collecting taxes and managing public finances for the city’s 2,000 or so physical residents and e-residents, many of whom have paid a fee for the option of living in Próspera, on the Honduran island of Roatán, or remotely incorporating a business there.Nearby is a manufacturing plant that is slated to build modular houses along the coast. About a mile in the other direction are some of the city’s businesses: a Bitcoin cafe and education center, a genetics clinic, a scuba shop. A delivery service for food and medical supplies will deploy its drones from this rooftop.Próspera was built in a semiautonomous jurisdiction known as a ZEDE (a Spanish acronym for Zone for Employment and Economic Development). It is a private, for-profit city, with its own government that courts foreign investors through low taxes and light regulation. Now, the Honduran government wants it gone.There are a lot of ways to listen to ‘The Daily.’ Here’s how.We want to hear from you. Tune in, and tell us what you think. Email us at thedaily@nytimes.com. Follow Michael Barbaro on X: @mikiebarb. And if you’re interested in advertising with The Daily, write to us at thedaily-ads@nytimes.com.Additional production for The Sunday Read was contributed by Isabella Anderson, Anna Diamond, Sarah Diamond, Elena Hecht, Emma Kehlbeck, Tanya Pérez, Frannie Carr Toth and Krish Seenivasan. More

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      Why House Republicans Are Targeting China Weeks Before the Election

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      The G.O.P. pushed through an array of legislation to get tough on China, seeking to persuade voters that they are the party that will protect Americans from economic and military threats from Beijing.The House this week tackled a long-promised package of bills to get tough on China, but few if any have a chance of becoming law after Republicans opted to prioritize a handful of politically divisive measures that Democrats oppose.For months, House leaders had promised a bipartisan show of force against the United States’ biggest economic and military adversary, including curtailing investments in sensitive Chinese industries, clamping down on data theft and espionage, and ensuring more Chinese imports were subject to taxes and forced labor standards.But only some of those proposals made it to the floor this week. Instead, Republican leaders added a handful of partisan measures that appear to be aimed at portraying their party as stronger on countering China and Democrats, including the Biden administration, as weak.It comes weeks before the elections in which the White House and control of Congress are up for grabs.“Because the White House has chosen not to confront China and protect America’s interests, House Republicans will,” Speaker Mike Johnson, Republican of Louisiana, told reporters on Tuesday.Here’s a look at what the House did, and why.Subjecting international pandemic agreements to Senate treaty approval.Republicans, who have castigated the World Health Organization for its response to the coronavirus pandemic, pushed through a bill that would require Senate ratification of any W.H.O. agreement on pandemic preparedness. The organization is exploring ways to streamline the international response to the next pandemic.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      China Woos Africa, Casting Itself as Global South’s Defender

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      More than 50 African leaders have gathered in Beijing for a summit aimed at projecting the influence of China’s leader, Xi Jinping, in the developing world.African flags have been flown over Tiananmen Square. Leaders of African nations have been greeted by dancers, honor guards and children waving flags. They have been escorted in extensive motorcades past banners celebrating “A Shared Future for China and Africa” and giant, elaborate flower arrangements.China has pulled out all the stops for a gathering of leaders and top officials from more than 50 African nations this week in Beijing, welcoming them with pomp and pageantry. “After nearly 70 years of hard work, China-Africa relations are at the best period in history,” China’s leader, Xi Jinping, told the gathering on Thursday. Mr. Xi has cast his country as a defender of the developing world, one that can push the West to listen to the voices of poorer countries. He hosted a banquet for the leaders at the start of the event on Wednesday, after three straight days of back-to-back bilateral talks with nearly two dozen leaders of nations ranging from impoverished Chad to the continental economic powerhouse of Nigeria. The three-day forum is meant to demonstrate Beijing’s global clout despite rising tensions with the West. Mr. Xi’s courtship of African countries is part of a great geopolitical competition with the United States that has intensified in recent years over Russia’s war in Ukraine and China’s aggressive posture toward Taiwan.China is “trying to take advantage of the space left by the U.S. and Europe, which are increasingly disengaged with Africa,” said Eric Olander, the editor in chief of the China-Global South Project website. “China sees an opportunity to really step up its engagement, and not necessarily just with money.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      U.S. Creates High-Tech Global Supply Chains to Blunt Risks Tied to China

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      The Biden administration is trying to get foreign companies to invest in chip-making in the United States and more countries to set up factories to do final assembly and packaging.If the Biden administration had its way, far more electronic chips would be made in factories in, say, Texas or Arizona.They would then be shipped to partner countries, like Costa Rica or Vietnam or Kenya, for final assembly and sent out into the world to run everything from refrigerators to supercomputers.Those places may not be the first that come to mind when people think of semiconductors. But administration officials are trying to transform the world’s chip supply chain and are negotiating intensely to do so.The core elements of the plan include getting foreign companies to invest in chip-making in the United States and finding other countries to set up factories to finish the work. Officials and researchers in Washington call it part of the new “chip diplomacy.”The Biden administration argues that producing more of the tiny brains of electronic devices in the United States will help make the country more prosperous and secure. President Biden boasted about his efforts in his interview on Friday with ABC News, during which he said he had gotten South Korea to invest billions of dollars in chip-making in the United States.But a key part of the strategy is unfolding outside America’s borders, where the administration is trying to work with partners to ensure that investments in the United States are more durable.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More