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      Donald Trump expected to announce framework of US-UK trade deal – UK politics live

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      Good morning. I’m Andrew Sparrow, picking up from Martin Belam.Here is a timetable for what we are expecting today. We will be mostly focused on the US-UK trade deal announcement, but there will be some other politics too.9am: Keir Starmer gives a speech at the London defence conference. He is not expected to take questions.9.30am: Steve Reed, the environment secretary, takes questions in the Commons.10.30am: Lucy Powell, the leader of the Commons, takes questions on next week’s Commons business.11.30am: Downing Street holds a lobby briefing.Noon: Starmer and other political leaders join the king and queen in Westminster Abbey for the service to commemorate the 80th anniversary of VE Day.After 12pm: After the two minutes’ silence to commemorate the 80th anniversary of VE Day, the Bank of England announces its interest rate.After 12pm: John Swinney, Scotland’s first minister, takes questions from MSPs.3pm (UK time): Donald Trump is due to make his announcement in the White House about the US-UK trade deal. He posted this on his Truth Social account earlier.Afternoon: Starmer is expected to make a statement about the trade deal.There will be a ministerial statement in the Commons this afternoon on the US-UK trade deal, Lindsay Hoyle, the Speaker, told MPs at the start of business questions. But he said he did not know yet when this would be.Steve Reed, the environment secretary, has accused the opposition of trying to “weaponise” tragedy after his Tory opposite number claimed farmers are taking their lives because of Labour’s inheritance tax policy.The government announced in the budget last year that more valuable farms will lose their exemption from inheritance tax. Older farmer have complained that, having planned on the basis that they will be able to leave their farms to their children without an inheritance tax liability, they have had little time to make alternative arrangements before the tax change comes into force in April next year.Speaking during environment questions in the Commons, Victoria Atkins, the shadow environment secretary, said:
      Before Christmas, I warned the secretary of state that a farmer had taken their own life because they were so worried about the family farm tax. He responded with anger and later stopped the farming resilience fund, which helped farmers with mental ill health.
      This week, I have received the devastating news that several more farmers have taken their own lives because of the family farm tax. This is the secretary of state’s legacy, but he can change it, because it is not yet law.
      Will he set out these tragedies to the prime minister, demand that Labour policy is changed, or offer an appointed principal his resignation?
      In his reply, Reed said he was sorry that Atkins was seeking “to politicise personal tragedy in this way”. He went on:
      I think it’s immensely, immensely regrettable that she would seek to do that. None of us have been sure what happens in matters of personal tragedy. But I think it’s beneath her, actually, to try to weaponise it in a way that she has done this.
      This government takes the issues of mental health very, very seriously indeed. That is why we are setting up mental health hubs in every community so that we can support farmers and others who are suffering from mental health, which I would again remind her is a problem that escalated during her time in office the secretary of state for health, where she failed to address the problems people are facing.
      Keir Starmer used his speech to the London Defence Conference to announce a £563m contract for Rolls-Royce for the maintenance of Britain’s fleet of Typhoon fighter jets. “The work to maintain 130 Typhoon engines will take place at Rolls-Royce’s sites, supporting hundreds of jobs in Bristol and beyond,” No 10 said.He also said that British workers would gain from what he described as the “defence dividend” – the benefits to be had from the government’s decision to increase defence spending. Starmer said:
      Our task now is to seize the defence dividend – felt directly in the pockets of working people, rebuilding our industrial base and creating the jobs of the future.
      A national effort. A time for the state, business and society to join hands, in pursuit of the security of the nation and the prosperity of its people.
      An investment in peace, but also an investment in British pride and the British people to build a nation that, once again, lives up to the promises made to the generation who fought for our values, our freedom and our security.
      The phrase “defence dividend” is an allusion to the term “peace dividend” – which referred to the advantage Britain and other western countries gained at the end of the cold war when they could cut defence spending, meaning more government money was available for other priorities.What Starmer refers to as the “defence dividend” has been funded in part by huge cuts to aid spending. But Starmer has repeatedly sought to show that his policy will bring, not just defence gains, but employment gains too.Keir Starmer has said that acting in the national interest has been his priority in the talks on the UK-US trade deal expected to be announced later.Speaking to the London Defence Conference, Starmer:
      Talks with the US have been ongoing and you’ll hear more from me about that later today.
      But make no mistake, I will always act in our national interest, for workers, businesses and families, to deliver security and renewal for our country.
      The conventional wisdom at Westminster is that trade deals are a good thing, and that voters welcome them. But the US-UK deal could challenge this assumption because at least some of its features may look like protection racket payments handed over to an administration using tariffs as an instrument of extortion.In a post on social media, Robert Peston, ITV’s political editor, says British voters might not necessarily applaud what has been agreed.
      The UK’s soon-to-be announced tariff deal with the US matters hugely for two reasons.
      First, it is the first since Trump announced his coercive global tariffs on the whole world. So it will be a template for further such deals with bigger manufacturing nations and areas like Japan and the EU.
      Second, it can only be judged against the yardstick of how far the UK has been forced to grant the US better terms of trade in response to the American president’s gangsterish bullying.
      The prospect of the UK being seen as a net winner from a deal that would abuse the meaning of “free trade” is nil.
      The question, soon to be answered, is how far we have surrendered – on access to the UK for US farmers, on reducing the tax for the likes of Google and Amazon – to save the bacon of our motor and steel manufacturers.
      Politically in the UK for the prime minister I am not sure how it will play out. British voters don’t like Trump. They won’t want Starmer to have capitulated to him.
      The Green party is joining the Liberal Democrats (see 8.05am) in demanding that MPs get a vote on the proposed US-UK trade deal (as well as the UK-India one). The Green MP Ellie Chowns posted this on Bluesky.
      Reports that Labour may scrap the Digital Services Tax to secure a trade deal with Trump are deeply concerning. I’m urging the govt to guarantee MPs get a vote on any such deal. MPs must have a say in decisions that affect our digital economy and ability to tax corporate giants.
      In 2021 the Labour party published a policy paper saying it would give MPs a vote on trade deals. It said:
      We will reform the parliamentary scrutiny of trade agreements, so that MPs have a guaranteed right to debate the proposed negotiating objectives for future trade deals, and a guaranteed vote on the resulting agreements, with sufficient time set aside for detailed scrutiny both of the draft treaty texts, and of accompanying expert analysis on the full range of implications, including for workers’ rights.
      In the Commons, Ed Davey, the Lib Dem leader, has repeatedly pressed Keir Starmer to confirm that he will give MPs a vote on the proposed US-UK trade deal. But Starmer has refused to commit to this. When this last come up, he told Davey: “If [a deal] is secured, it will go through the known procedures for this house.”This was a reference to the CRAG (Constitutional Reform and Governance Act 2010) process – which does not guarantee MPs get to vote on treaties.Unlike Donald Trump, Keir Starmer does not have his own social media platform. He still uses X, and this morning he has been tweeting, not about the US-UK trade deal, but about the 80th anniversary of VE Day.
      Their victory will always be one of our finest hours.
      Today we come together to celebrate those who fought for our freedom.
      #VEDay80
      He has also posted a link to an article he has written for the Metro about the VE Day generation, and his own grandfather. Here is an extract.
      This is the thing about our greatest generation.
      Not only did they sacrifice so much, they often bore their burden in silence.
      I think of my own grandfather, who fought during the Second World War. We never did find out exactly what he saw. He simply didn’t want to talk about it.
      But this VE Day and every VE Day, we must talk about them. Because without their bravery, the freedom and joy of today’s celebrations may never have come to pass.
      Good morning. I’m Andrew Sparrow, picking up from Martin Belam.Here is a timetable for what we are expecting today. We will be mostly focused on the US-UK trade deal announcement, but there will be some other politics too.9am: Keir Starmer gives a speech at the London defence conference. He is not expected to take questions.9.30am: Steve Reed, the environment secretary, takes questions in the Commons.10.30am: Lucy Powell, the leader of the Commons, takes questions on next week’s Commons business.11.30am: Downing Street holds a lobby briefing.Noon: Starmer and other political leaders join the king and queen in Westminster Abbey for the service to commemorate the 80th anniversary of VE Day.After 12pm: After the two minutes’ silence to commemorate the 80th anniversary of VE Day, the Bank of England announces its interest rate.After 12pm: John Swinney, Scotland’s first minister, takes questions from MSPs.3pm (UK time): Donald Trump is due to make his announcement in the White House about the US-UK trade deal. He posted this on his Truth Social account earlier.Afternoon: Starmer is expected to make a statement about the trade deal.Defence secretary John Healey has just appeared on the BBC Radio 4 Today programme, where he did not have much to add to his earlier comments about the prospect of a UK-US trade deal, repeating that negotiations had been “hard” and that ministers had refrained from offering a running commentary in order to give negotiators space.He was asked whether ministerial silence on some of the more controversial things Donald Trump’s administration had said or done since coming to office was part of the UK trying to secure a trade deal, and also asked why it did not appear to be “a full deal, as opposed to something responding to tariffs, as it seems to be.”Healey essentially side-stepped those questions, saying “the single purpose of the government is to get a good economic deal. And this discussion reminds us that the US is an indispensable ally for our economic security and our national security.”The Liberal Democrats treasury spokesperson Daisy Cooper has reiterated the party’s position that any trade deal with the US should be put to parliament for approval before being ratified, saying Labour “should not be afraid” of a vote if they are confident a deal is in the country’s best interests.Cooper, the MP for St Albans, said in a statement:
      Parliament must be given a vote on this US trade deal so it can be properly scrutinised.
      A good trade deal with the US could bring huge benefits, but Liberal Democrats are deeply concerned that it may include measures that threaten our NHS, undermine our farmers or give tax cuts to US tech billionaires.
      If the government is confident the agreement it has negotiated with Trump is in Britain’s national interest, it should not be afraid to bring it before MPs.
      Shadow defence secretary James Cartlidge has appeared on Times Radio this morning, and the Conservative MP for South Suffolk said “the devil is in the detail” over prospects for a US-UK trade deal.He told listeners the Conservatives “obviously” would support a deal “in principle”. He continued:
      If it’s correct, and you know, whilst we haven’t been named publicly, it does sound like something’s happening, nevertheless, it would be wholly speculative [to comment].
      As you appreciate and know full well, with any deal like that, the devil is in the detail. What is the nitty gritty? What does it mean for individual sectors and so on.
      So obviously, yes, we wanted to see a trade deal with the US. It’s a big benefit of our position with an independent trade policy since we left the EU but as I say, the devil will be in the details. So should there be an agreement, we would then need to study that in depth.
      Asked by presenter Kate McCann if there was anything the Tories would not want to see in any deal, he said:
      I think if we don’t know at all what’s in it, or even if it’ll definitely happen, I think to try and sort of pre-judge what might or might not be in is not something I’m going to get into respectfully. I totally understand why you’re asking that. I think it’s an incredibly important issue, particularly with the wider challenge of tariffs and so on. I’m a big free trader. Our party wants us to see the UK growing by striking trade deals. But I just think you’ve got to wait and see, because who knows, quite frankly.
      In 2021, then prime minister Boris Johnson said his Conservative government was “going as fast as we can” to secure a post-Brexit trade deal with the US, but the successive administrations of Liz Truss and Rishi Sunak failed to secure one.The defence secretary has said he is confident that UK negotiators will secure “a good deal with the US”, describing the country as “an indispensable ally for our economic security.”John Healey declined to comment on the timing of any update from Keir Starmer, which No 10 said would happen today. Asked whether it was correct that Donald Trump was going to make an announcement at 3pm UK time, and whether Starmer would speak at the same time, Healey said “I don’t account for the movements in Downing Street.”Appearing on Sky News the defence secretary reiterated his lines from an earlier Times Radio interview, saying:
      We’ve been conducting hard negotiations with the US ever since Keir Starmer went to the White House in February, trying to secure any good economic deal for Britain.
      And during that time, I have to say, ministers like me have stepped back and refrained from commenting on those discussions in order to give the negotiators the space to secure the best possible deal for Britain. So any live discussions or timelines really aren’t for me.
      He was pressed on Sky News on whether a US trade deal would have repercussions for the NHS, farm workers and steelworkers in the UK. He said:
      I’m not going to comment on potential content of any economic deal or timelines. What I will say is that for steelworkers like those in sconthorpe, they’ve seen now a UK Government, a Labour government, willing to step in to secure the future of their industry.
      And as defence secretary, you know, I’m going to make sure that the increased defence spending that we will use to secure our defence for the future also brings a premium – a dividend, if you like – and is measured in more British jobs, more British apprentices, more successful British firms right across the country.
      Keir Starmer will give an update on the prospects for a UK-US trade deal later today, it has been announced.PA Media reports a Number 10 spokesperson said:
      The prime minister will always act in Britain’s national interest – for workers, for business, for families. The US is an indispensable ally for both our economic and national security. Talks on a deal between our countries have been continuing at pace and the prime minister will update later today.
      Defence secretary John Healey is appearing on Sky News at the moment, speaking from Westminster ahead of VE Day commemorations later today.He has already appeared earlier on Times Radio, where he was coy about commenting on the prospects for a UK-US trade deal. PA Media report he told listeners of that station:
      It’s certainly true that the US is an indispensable ally for the UK, both on economic and national security grounds. It’s also true that since the prime minister visited the White House in February we have been in detailed talks about an economic deal.
      But I have to say, throughout that period, ministers like me have been keen to give the negotiations the space to get the best possible deal for the UK. So, we just haven’t been giving a running commentary on developments or timelines, so I’m not going to start now.
      In the morning Politico newsletter, Andrew McDonald makes the following point worth bearing in mind. He writes:
      This was never meant to be a comprehensive free trade agreement (FTA) with the US, of the sort that previous Tory governments tried and failed to win. Instead, this had been pitched by UK officials as a narrow economic pact to avoid tariffs and work together on AI and critical tech. How narrow or otherwise, we should know soon.
      Here is our earlier report from my colleague Hugo Lowell in Washington …Labour’s defence secretary John Healey and the Conservative shadow defence secretary James Cartlidge are on the media round this morning. They are likely to be questioned about the prospects for a US-UK trade deal announcement, as well as the conflict this week in Kashmir. I’ll bring you the key lines that emerge.In its report suggesting that a trade deal between the US and UK would be the subject of Donald Trump’s promised announcement, the New York Times quotes Timothy C Brightbill, an international trade attorney at Wiley Rein, who suggested any announcement would consist of “an agreement to start the negotiations, identifying a framework of issues to be discussed in the coming months.“We suspect that tariff rates, non-tariff barriers and digital trade are all on the list –and there are difficult issues to address on all of these,” he added.The UK government is likely to have in its sights a reduction in the 25% tariff on automobile sales that the Trump administration imposed. That has led to some British manufacturers pausing shipments across the Atlantic.A team of senior British trade negotiators is in Washington in the hopes of seucuring the trade deal. Last night, government sources said the recent announcement by the US president, Donald Trump, of film industry tariffs had proved a significant setback.One person briefed on the talks said: “We have a senior team on the ground now, and it may be that they are able to agree something this week. But the reality is the Trump administration keeps shifting the goalposts, as you saw with this week’s announcement on film tariffs.”Another said Trump’s threat of 100% tariffs on films “produced in foreign lands”, which could have a major impact on Britain’s film industry, had “gone down very badly in Downing Street”.UK officials say they are targeting tariff relief on a narrow range of sectors in order to get a deal agreed before they begin formal negotiations with the EU over a separate European agreement. A draft deal handed to the US a week ago would have reduced tariffs on British exports of steel, aluminium and cars, in return for a lower rate of the digital services tax, which is paid by a handful of large US technology companies.Officials from the trade department hoped to reach an agreement on two outstanding issues, pharmaceuticals and films. Trump has said he will impose tariffs on both industries, mainstays of the British economy, but has not yet given details.Keir Starmer has ruled out reducing food production standards to enable more trade of US agricultural products, as officials prioritise signing a separate agreement with the EU, which is likely to align British standards with European ones.Donald Trump is expected to announce the framework of a trade agreement with the UK after teasing a major announcement with a “big and highly respected, country.”The specifics of any agreement were not immediately clear and there was no comment from the White House or the British embassy in Washington on whether an actual deal had been reached or if the framework would need further negotiation. Any agreement would mark the first such deal for the administration since it imposed sweeping tariffs against trade partners last month.In a post on Truth Social previewing the announcement, Trump was vague and did not disclose the country or the terms.“Big news conference tomorrow morning at 10:00am, the Oval Office, concerning a MAJOR TRADE DEAL WITH REPRESENTATIVES OF A BIG, AND HIGHLY RESPECTED, COUNTRY. THE FIRST OF MANY!!!” Trump wrote in a post on Truth Social. More

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      UK officials land in Washington as talks over trade agreement continue

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      A team of senior British trade negotiators has landed in Washington as talks over a deal between the two countries gather pace.Officials from the business and trade department are in the US for much of this week, attempting to get an agreement signed before the planned UK-EU summit on 19 May.Downing Street did not deny reports the deal could be signed as early as this week, although government sources said the recent announcement by the US president, Donald Trump, of film industry tariffs had proved a significant setback.One person briefed on the talks said: “We have a senior team on the ground now, and it may be that they are able to agree something this week. But the reality is the Trump administration keeps shifting the goalposts, as you saw with this week’s announcement on film tariffs.”Another said Trump’s threat of 100% tariffs on films “produced in foreign lands”, which could have a major impact on Britain’s film industry, had “gone down very badly in Downing Street”.UK officials say they are targeting tariff relief on a narrow range of sectors in order to get a deal agreed before they begin formal negotiations with the EU over a separate European agreement. A draft deal handed to the US a week ago would have reduced tariffs on British exports of steel, aluminium and cars, in return for a lower rate of the digital services tax, which is paid by a handful of large US technology companies.The Guardian revealed last week the Trump administration had made negotiating a trade deal with the UK a lower-order priority, behind a series of Asian countries. UK officials said they have been able to continue talks with their US counterparts despite that, describing the Trump administration’s approach as “chaotic”.Officials from the trade department arrived in Washington this week hoping to reach an agreement on two outstanding issues, pharmaceuticals and films.Trump has said he will impose tariffs on both industries, mainstays of the British economy, but has not yet given details.This week, the US president said the US film industry was dying a “very fast death” because of the incentives other countries were offering to draw American film-makers, and promised to impose a 100% tariff on foreign-made films. Britain offers producers generous reliefs on corporation tax to locate their projects there, which help support an industry now worth about £2bn, with major US films such as Barbie having recently been shot in Britain.Trump also said that he planned to unveil tariffs on imports of pharmaceutical products “in the next two weeks”. The UK exported £6.5bn worth of such goods to the US last year.Keir Starmer, the prime minister, has ruled out reducing food production standards to enable more trade of US agricultural products, as officials prioritise signing a separate agreement with the EU, which is likely to align British standards with European ones.Officials are racing to sign the US agreement before the planned UK-EU summit, at which both sides will set out their formal negotiating positions. Leaked documents revealed on Wednesday the two remain far apart on their demands for a youth mobility scheme, with Britain demanding that visas issued under the scheme should be limited in number and duration, and should exclude dependents.EU ambassadors met in Brussels on Wednesday to discuss the progress of the deal. One diplomat said: “Negotiations are going well, the mood is still good but it is a bit early to see bold moves from one side or another.”This week Starmer also signed an agreement with India after giving way on a demand from Delhi for workers transferring to the UK within their companies to avoid paying national insurance while in the country.The concession has caused some unease in the Home Office, with Yvette Cooper, the home secretary, not having been told about it in advance.It was also criticised by Kemi Badenoch, who accused the prime minister of bringing in a “two-tier” tax system. The Tory leader denied reports, however, that she had agreed to the same concession when she was business secretary.The prime minister defended the deal on Wednesday, telling MPs at PMQs it was a “huge win” for the UK. Other senior Tories have also praised the deal, including Steve Baker, Oliver Dowden and Jacob Rees-Mogg, the latter of whom said it was “exactly what Brexit promised”.British officials say they have been surprised at the willingness of the Labour government to sign agreements which have been on the table for years but previously rejected by the Conservative government.With economists having recently downgraded the UK’s growth outlook, Starmer is understood to have decided to sign deals such as that with India, even though they do not include a number of British demands, such as increased access for services.One source said the approach was to clinch a less ambitious agreement and use that to build a fuller economic partnership in the coming years. More

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      Why Donald Trump’s plan to weaken the dollar is flawed | Kenneth Rogoff

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      Now that US President Donald Trump’s tariff war is in full swing, investors around the world are asking: what’s next on his agenda for upending the global economic order? Many are turning their attention to the “Mar-a-Lago Accord” – a plan proposed by Stephen Miran, chair of Trump’s Council of Economic Advisers, to coordinate with America’s trading partners to weaken the dollar.At the heart of the plan is the notion that the dollar’s status as the world’s reserve currency is not a privilege but a costly burden that has played a major role in the deindustrialisation of the American economy. The global demand for dollars, the argument goes, drives up its value, making US-made goods more expensive than imports. That, in turn, leads to persistent trade deficits and incentivises US manufacturers to move production overseas, taking jobs with them.Is there any truth to this narrative? The answer is yes and no. It’s certainly plausible that foreign investors eager to hold US stocks, bonds, and real estate could generate a steady flow of capital into the United States, fuelling domestic consumption and boosting demand for tradable goods such as cars and non-tradables such as real estate and restaurants. Higher demand for non-tradable goods, in particular, tends to push up the dollar’s value, making imports more attractive to American consumers, just as Miran suggests.But this logic also overlooks crucial details. While the dollar’s reserve-currency status drives up demand for Treasuries (Treasury bills, Treasury bonds, and Treasury notes), it does not necessarily increase demand for all US assets. Asian central banks, for example, hold trillions of dollars in Treasury bills, to help stabilise their exchange rates and maintain a financial buffer in the event of a crisis. They generally avoid other types of US assets, such as equities and real estate, since these do not serve the same policy objectives.This means that if foreign countries simply need to accumulate Treasury bills, they don’t have to run trade surpluses to obtain them. The necessary funds can also be raised by selling existing foreign assets such as stocks, real estate, and factories.That is precisely what happened in the 1960s through the mid-1970s. By then, the dollar had firmly established itself as the global reserve currency, yet the US was almost always running a current account surplus – not a deficit. Foreign investors were accumulating US Treasuries, while American firms expanded abroad by acquiring foreign production facilities, either through direct purchases or “greenfield” investments, in which they built factories from the ground up.The postwar era was hardly the only time when the country issuing the world’s reserve currency ran a current account surplus. The British pound was the undisputed global reserve currency from the end of the Napoleonic wars in the early 1800s until the outbreak of the first world war in 1914. Throughout that period, the UK generally ran external surpluses, bolstered by high returns on investments across its colonial empire.There is another way to interpret the US current account deficit that helps explain why the relationship between the exchange rate and trade imbalances is more complicated than Miran’s theory suggests. In accounting terms, a country’s current account surplus equals the difference between national savings and investment by the government and the private sector. Importantly, “investment” here refers to physical assets such as factories, housing, infrastructure, and equipment – not financial instruments.When viewed through this lens, it is clear that the current account deficit is influenced not just by the exchange rate but by anything that affects the balance between national saving and investment. In 2024, the US fiscal deficit was 6.4% of GDP, significantly larger than the current account deficit, which was under 4% of GDP.While closing the fiscal deficit would not automatically eliminate the current account deficit – that would depend on how the gap is closed and how the private sector responds – it is a far more straightforward fix than launching a trade war. Reducing the fiscal deficit would, however, involve the difficult political task of convincing Congress to pass more responsible tax and spending bills. And unlike a high-profile trade confrontation, it wouldn’t cause foreign leaders to curry favour with Trump; instead, it would shift media attention back to domestic politics and congressional negotiations.Another key factor behind the current account deficit is the strength of the American economy, which has been by far the most dynamic among the world’s major players in recent years. This has made US businesses particularly attractive to investors. Even manufacturing has grown as a share of GDP. The reason employment has not kept pace is that modern factories are highly automated.skip past newsletter promotionafter newsletter promotionMiran’s plan, clever as it might be, is based on a flawed diagnosis. While the dollar’s role as the world’s leading reserve currency plays a part, it is just one of many factors contributing to America’s persistent trade deficits. And if the trade deficit has many causes, the idea that tariffs can be a cure-all is dubious at best. Kenneth Rogoff is professor of economics and public policy at Harvard University. He was the IMF’s chief economist from 2001-03.© Project Syndicate More

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      The Guardian view on Trump’s shock therapy: warehouse and transport workers are the first victims of a class war | Editorial

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      The White House, eager to win a trade war it barely understands, has yanked the emergency brake on China-US trade without checking who’s inside the vehicle. Donald Trump’s early April trade decree has taken a month to hit the economy – that’s how long Chinese containers need to reach Los Angeles. And on cue, US pacific ports registered a 45% drop in container bookings this week from China. When warehouses fall quiet and trucks idle in California, the silence will creep eastward. Unemployment will surely tick upwards.Even if Washington reverses course by the end of May, and Beijing plays nice, the best-case scenario is delayed damage. Some goods are being rerouted to avoid charges, but you can’t reboot global logistics overnight. This isn’t strategic decoupling – it’s economic self-harm. By the time the Trump administration notices, it will be too late. The consequences of the US president’s rash tactics will reverberate through Main Street. Mr Trump offers a flippant excuse: blame 11-year-olds with too many dolls – not his own tariffs – for rising hardship.US gross domestic product just shrank for the first time in three years – despite Mr Trump’s promise of a “golden era”. His tariffs are steering the world toward a downturn. Even the International Monetary Fund (IMF) knows it. According to its latest modelling, the fund now sees the probability of global growth falling below 2%, a threshold widely seen as equivalent to a global recession, as approaching one in four. That’s double the risk it estimated six months ago. Escalating US tariffs, says the IMF, are the main reason behind the darkening skies.What does this mean for the world? Below 2% global growth, much of the per capita gains vanish. Most of what’s left is soaked up by expanding giants in Asia and Africa – places with the people and industrial catch-up capacity to grow even in a weakened global economy. The UK does not have this. Britain is an ageing, post-industrial economy in a productivity slump without the momentum of demographics or the slack of underdevelopment. That’s why Labour can’t afford to sit back. Rising living standards and real economic security require government to invest, build and redistribute – because the market alone won’t.Commentators still blindly cling to David Ricardo’s 1817 theory of comparative advantage – as if today’s global capitalism mirrors Georgian England’s trade in wine and cloth. It doesn’t. Ricardo assumed nations specialise based on domestic costs. But in a world of mobile capital, it’s companies that specialise, not countries. That’s what the economist Dani Rodrik warned in the late 1990s: free capital flows undermine comparative advantage. Development now depends not on obeying trade patterns, but on shaping them – through industrial policy.But Maga protectionism isn’t rebuilding US industry – it’s shock therapy. Mr Trump engineers a trade crisis to hike prices, kill off “uncompetitive” firms and clear the way for a leaner, capital-heavy economy. Meanwhile, tax cuts hand America’s oligarchic tendency even more power to reshape markets in its image. Mr Trump’s narrative promises a revival for US workers – particularly the unionised holdouts in places such as Detroit – but what they will get is higher costs, stagnant wages and patriotic slogans. This isn’t industrial policy. It’s class politics disguised as economic nationalism – a controlled demolition of what remains of US labour’s bargaining power, sold as a populist renaissance.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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      Ukraine, Gaza and Iran: can Witkoff secure any wins for Trump?

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      Donald Trump’s version of Pax Americana, the idea that the US can through coercion impose order on the world, is facing its moment of truth in Ukraine, Gaza and Iran.In the words of the former CIA director William Burns, it is in “one of those plastic moments” in international relations that come along maybe twice a century where the future could take many possible forms.The US’s aim has been to keep the three era-defining simultaneous sets of negotiations entirely separate, and to – as much as possible – shape their outcome alone. The approach is similar to the trade talks, where the intention is for supplicant countries to come to Washington individually bearing gifts in return for access to US markets.The administration may have felt it had little choice given the urgency, but whether it was wise to launch three such ambitious peace missions, and a global trade war, at the same time is debatable.It is true each of the three conflicts are discrete in that they have distinctive causes, contexts and dynamics, but they are becoming more intertwined than seemed apparent at the outset, in part because there is so much resistance building in Europe and elsewhere about the world order Donald Trump envisages, and his chosen methods.In diplomacy nothing is hermetically sealed – everything is inter-connected, especially since there is a common thread between the three talks in the personality of the property developer Steven Witkoff, Trump’s great friend who is leading the US talks in each case, flitting from Moscow to Muscat.View image in fullscreenTo solve these three conflicts simultaneously would be a daunting task for anyone, but it is especially for a man entirely new to diplomacy and, judging by some of his remarks, also equally new to history.Witkoff has strengths, not least that he is trusted by Trump. He also knows the president’s mind – and what should be taken at face value. He is loyal, so much so that he admits he worshipped Trump in New York so profoundly that he wanted to become him. He will not be pursuing any other agenda but the president’s.But he is also stretched, and there are basic issues of competence. Diplomats are reeling from big cuts to the state department budget and there is still an absence of experienced staffers. Witkoff simply does not have the institutional memory available to his opposite numbers in Iran, Israel and Russia. For instance, most of the Iranian negotiating team, led by the foreign minister, Abbas Araghchi, are veterans of the 2013-15 talks that led to the original Iran nuclear deal.Yuri Ushakov, Vladimir Putin’s chief foreign policy adviser, who attended the first Russian-US talks this year in Saudi Arabia, spent 10 years in the US as Russian ambassador. He was accompanied by Kirill Dmitriev, the head of the Russian sovereign wealth fund who then visited the US on 2 April.In the follow-up talks in Istanbul on 10 April, Aleksandr Darchiev, who has spent 33 years in the Russian foreign ministry and is Russian ambassador to the US, was pitted against a team led by Sonata Coulter, the new deputy assistant secretary of state for European and Eurasian affairs, who does not share Trump’s benign view of Russia.View image in fullscreenAs to the Gaza issue, Benjamin Netanyahu has lived the Palestinian conflict since he became Israel’s ambassador to the UN in 1984.Richard Nephew, a former US Iran negotiator, says the cuts to state department means the US “is at risk of losing a generation of expertise … It’s beyond tragedy. It’s an absolutely devastating national security blow with the evisceration of these folks. The damage could be permanent, we have to acknowledge this.”One withering European diplomat says: “It is as if Witkoff is trying to play three dimensional chess with chess grandmasters on three chessboards simultaneously, not having played the game before.”Bluntly, Witkoff knows he needs to secure a diplomatic win for his impatient boss. But the longer the three conflicts continue, the more entangled they become with one another, the more Trump’s credibility is questioned. Already, according to a Reuters Ipsos poll published this month, 59% of Americans think Trump is costing their country its credibility on the global stage.The risk for Trump is that the decision to address so much so quickly ends up not being a show of American strength but the opposite – the public erosion of a super power.In the hurry to seal a deal with Iran inside two months, Trump, unlike in all previous nuclear talks with Tehran, has barred complicating European interests from the negotiation room.To Iran’s relief, Witkoff has not tabled an agenda that strays beyond stopping Iran acquiring a nuclear bomb. He has not raised Iran’s supply of drones to Russia for use in Ukraine. Nor has he tabled demands that Iran end arms supplies to its proxies fighting Israel.That has alarmed Israel, and to a lesser extent Europe, which sees Iran’s desire to have sanctions lifted as a rare opportunity to extract concessions from Tehran. Israel’s strategic affairs minister, Ron Dermer, and Mossad’s head, David Barnea, met Witkoff last Friday in Paris to try to persuade him that when he met the Iran negotiating team the next day in Rome, he had to demand the dismantling of Tehran’s civil nuclear programme.Witkoff refused, and amid many contradictory statements the administration has reverted to insisting that Iran import the necessary enriched uranium for its civil nuclear programme, rather than enrich it domestically.Russia, in a sign of Trump’s trust, might again become the repository of Iran’s stocks of highly enriched uranium, as it was after the 2015 deal.Israel is also wary of Trump’s aggrandisement of Russia. The Israeli thinktank INSS published a report this week detailing how Russia, in search of anti-western allies in the global south for its Ukraine war, has shown opportunistic political support not just to Iran but to Hamas. Israel will also be uneasy if Russia maintains its role in Syria.But if Trump has upset Netanyahu over Iran, he is keeping him sweet by giving him all he asks on Gaza.Initially, Witkoff received glowing accolades about how tough he had been with Netanyahu in his initial meeting in January. It was claimed that Witkoff ordered the Israeli president to meet him on a Saturday breaking the Sabbath and directed him to agree a ceasefire that he had refused to give to Joe Biden’s team for months.As a result, as Trump entered the White House on 19 January, he hailed the “EPIC ceasefire agreement could have only happened as a result of our Historic Victory in November, as it signalled to the entire World that my Administration would seek Peace and negotiate deals to ensure the safety of all Americans, and our Allies”.But Netanyahu, as was widely predicted in the region, found a reason not to open talks on the second phase of the ceasefire deal – the release of the remaining hostages held in Gaza in exchange for a permanent end to the fighting.Witkoff came up with compromises to extend the ceasefire but Netanyahu rejected them, resuming the assault on Hamas on 19 March. The US envoy merely described Israel’s decision as “unfortunate, in some respects, but also falls into the had-to-be bucket”.View image in fullscreenNow Trump’s refusal to put any pressure on Israel to lift its six-week-old ban on aid entering Gaza is informing Europe’s rift with Trump. Marking 50 days of the ban this week, France, Germany and the UK issued a strongly worded statement describing the denial of aid as intolerable.The French president, Emmanuel Macron, is calling for a coordinated European recognition of the state of Palestine, and Saudi Arabia is insisting the US does not attack Iran’s nuclear sites.Witkoff, by contrast, has been silent about Gaza’s fate and the collapse of the “EPIC ceasefire”.But if European diplomats think Witkoff was naive in dealing with Netanyahu, it is nothing to the scorn they hold for his handling of Putin.The anger is partly because Europeans had thought that, after the Volodymyr Zelenskyy’s public row with Trump in the Oval Office, they had restored Ukraine’s standing in Washington by persuading Kyiv to back the full ceasefire that the US first proposed on 11 March.View image in fullscreenThe talks in Paris last week between Marco Rubio, the US secretary of state, and European leaders also gave Europe a chance to point out it was Putin that was stalling over a ceasefire.But instead of putting any countervailing pressure on Russia to accept a ceasefire, Witkoff switched strategy. In the words of Bruno Tertrais, a non-resident fellow at the Institut of Montaigne, Witkoff is “is now presenting a final peace plan, very favourable to the aggressor, even before the start of the negotiations, which had been due to take place after a ceasefire”.No European government has yet criticised Trump’s lopsided plan in public since, with few cards to play, the immediate necessity is to try to prevent Trump acting on his threat to walk away. At the very least, Europe will argue that if Trump wants Ukraine’s resources, he has to back up a European force patrolling a ceasefire, an issue that receives only sketchy reference in the US peace plan.The Polish foreign minister, Radosław Sikorski, addressing the country’s parliament on Wednesday, pointed to the necessity of these security guarantees. “Any arrangement with the Kremlin will only last so long as the Russian elite dreads the consequences of its breach,” he said.View image in fullscreenBut in a sense, Trump and Putin, according to Fiona Hill at the Brookings Institution, a Russia specialist in Trump’s first administration, may already have moved beyond the details of their Ukrainian settlement as they focus on their wider plan to restore the Russian-US relationship.It would be an era of great power collusion, not great power competition in which Gaza, Iran and Ukraine would be sites from which the US and Russia could profit.Writing on Truth Social about a phone call with Putin in February, Trump reported” “We both reflected on the Great History of our Nations, and the fact that we fought so successfully together in World War II … We each talked about the strengths of our respective Nations, and the great benefit that we will someday have in working together.”Witkoff has also mused about what form this cooperation might take. “Shared sea lanes, maybe send [liquefied natural] gas into Europe together, maybe collaborate on AI together,” he said, adding: “Who doesn’t want to see a world like that?” More

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      China’s top leaders pledge to oppose ‘unilateral bullying’ in global trade in veiled rebuke to Trump – US politics live

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      China’s top leaders pledged on Friday to step up support for the economy and oppose “unilateral bullying” in global trade, offering a veiled rebuke of hefty tariffs recently imposed by US president Donald Trump.The world’s two largest economies are engaged in a high-stakes tit-for-tat trade war that has spooked markets and spurred major manufacturers to reconsider supply chains.Since returning to the White House in January, Trump has slapped most trading partners with 10% tariffs. But China has received the worst, with many products from the country now facing a 145% tariff. Beijing has responded with new 125% tariffs of its own on US goods.A spokesperson for Beijing’s commerce ministry said on Thursday that “there are currently no economic and trade negotiations between China and the United States”. But hours later, asked about the state of negotiations with Beijing, Trump maintained: “We’ve been meeting with China.”Chinese financial news outlet Caijing reported on Friday that Beijing was considering the exemption of certain US semiconductor products from recent additional tariffs, citing sources familiar with the matter. Beijing’s commerce ministry did not immediately respond to an Agence France-Presse (AFP) request to confirm the reports.Meanwhile, the Hill reports that China cancelled 12,000 metric tons of US pork shipments, according to data from the US Department of Agriculture (USDA), with Bloomberg News reporting that this represents the biggest cancellation of pork orders since the Covid-19 pandemic.More on this story in a moment, but here are some other recent developments:

      US defense secretary Pete Hegseth had an unsecured internet connection set up in his Pentagon office so that he could bypass government security protocols and use the Signal messaging app on a personal computer.

      Donald Trump directed his attorney general to investigate the Democratic fundraising platform ActBlue based on an unsubstantiated rightwing claim.

      Federal judges blocked several aspects of Trump’s agenda that he has tried to enact through executive orders, which do not carry the force of law. One judge blocked his efforts to add a proof of citizenship requirement to the federal voter registration form, a change that voting rights advocates warned would have disfranchised millions of voters.

      Another judge ruled the Trump administration’s attempt to make federal funding to schools conditional on them eliminating any DEI policies erodes the “foundational principles” that separates the United States from totalitarian regimes.

      On immigration, a judge ordered the Trump administration to make “a good faith request” to the government of El Salvador to facilitate the return of a second man sent to a prison there back to the US, saying his deportation violated a court settlement. Another judge blocked the Trump administration from withholding federal funding from several so-called sanctuary jurisdictions that have declined to cooperate with the president’s hardline immigration crackdown.

      Trump issued a rare rebuke against Vladimir Putin, and said he has his own deadline for the Russia-Ukraine war. Trump said that he still thinks the Russian leader will listen to him.

      The Trump administration is loosening rules to help US automakers like Elon Musk’s Tesla develop self-driving cars so they can take on Chinese rivals. US companies developing self-driving cars will be allowed exemptions from certain federal safety rules for testing purposes, the transportation department said on Thursday.

      The Trump store is now selling “Trump 2028” hats to fans of the president, who is barred by the US constitution from serving a third term, despite the fact that a new poll from Reuters/Ipsos found that three-quarters of respondents said Trump should not even try to run.
      The US justice department says it did not fire a former pardon attorney, Liz Oyer, after she refused to recommend reinstating Mel Gibson’s gun rights.But in the latest episode of Politics America Weekly Oyer tells Jonathan Freedland a different story, one she believes points to a wider crackdown by the Trump administration on the rule of law in the US.You can listen to the podcast here:A US push to approve deep-sea mining in domestic and international waters “violates international law”, China warned on Friday, after a White House order to ramp up permits, reports Agence France-Presse (AFP).“The US authorisation … violates international law and harms the overall interests of the international community,” Chinese foreign ministry spokesperson Guo Jiakun said.President Donald Trump on Thursday signed an executive order to “expedite the process for reviewing and issuing seabed mineral exploration licenses and commercial recovery permits in areas beyond national jurisdiction”.Private companies and governments have long considered the mineral and metal resources found in stretches of the ocean floor, but they have mostly held off while waiting for the International Seabed Authority (ISA) regulator to devise rules – a process that began in the 1990s.The US never ratified the agreements that empowered the Isa’s jurisdiction and is not a member of the UN-affiliated body, reports AFP.Trump’s order demands Washington become a “global leader” in seabed exploration and “counter China’s growing influence over seabed mineral resources”.Beijing, which has so far held off mining in international waters while awaiting Isa rules, warned Trump’s orders “once again expose the unilateral approach and hegemonic nature of the United States”.US peace envoy Steve Witkoff is in Moscow today for further talks with Russia, including president Vladimir Putin, on Donald Trump’s peace plan for Ukraine.Hoping to get results before Trump’s 100 days in the office next week, Witkoff will have to find a way to convey the sense of the president’s frustration with the Russian attack on Kyiv on Thursday, while hoping to make good progress as Washington tries to put pressure on Kyiv to agree to its proposal.During a gathering of the Chinese Communist party’s top decision-making body focused on economic work and attended by president Xi Jinping, leaders acknowledged that “the impact of external shocks is increasing”, reports Agence France-Presse (AFP), citing state news agency Xinhua.They also said they would seek to “work with the international community to actively uphold multilateralism and oppose unilateral bullying practices”, said Xinhua.Last year saw China achieve record exports, providing a key source of economic activity as domestic challenges in the property sector and deflationary pressure persisted.Friday’s politburo meeting “shows the government is ready to launch new policies when the economy is affected by the external shock”, Zhiwei Zhang, president and chief economist of Pinpoint Asset Management, wrote in a note, reports AFP.However, Zhang noted “it seems Beijing is not in a rush to launch a large stimulus at this stage”. “It takes time to monitor and evaluate the timing and the size of the trade shock,” he added.China’s top leaders pledged on Friday to step up support for the economy and oppose “unilateral bullying” in global trade, offering a veiled rebuke of hefty tariffs recently imposed by US president Donald Trump.The world’s two largest economies are engaged in a high-stakes tit-for-tat trade war that has spooked markets and spurred major manufacturers to reconsider supply chains.Since returning to the White House in January, Trump has slapped most trading partners with 10% tariffs. But China has received the worst, with many products from the country now facing a 145% tariff. Beijing has responded with new 125% tariffs of its own on US goods.A spokesperson for Beijing’s commerce ministry said on Thursday that “there are currently no economic and trade negotiations between China and the United States”. But hours later, asked about the state of negotiations with Beijing, Trump maintained: “We’ve been meeting with China.”Chinese financial news outlet Caijing reported on Friday that Beijing was considering the exemption of certain US semiconductor products from recent additional tariffs, citing sources familiar with the matter. Beijing’s commerce ministry did not immediately respond to an Agence France-Presse (AFP) request to confirm the reports.Meanwhile, the Hill reports that China cancelled 12,000 metric tons of US pork shipments, according to data from the US Department of Agriculture (USDA), with Bloomberg News reporting that this represents the biggest cancellation of pork orders since the Covid-19 pandemic.More on this story in a moment, but here are some other recent developments:

      US defense secretary Pete Hegseth had an unsecured internet connection set up in his Pentagon office so that he could bypass government security protocols and use the Signal messaging app on a personal computer.

      Donald Trump directed his attorney general to investigate the Democratic fundraising platform ActBlue based on an unsubstantiated rightwing claim.

      Federal judges blocked several aspects of Trump’s agenda that he has tried to enact through executive orders, which do not carry the force of law. One judge blocked his efforts to add a proof of citizenship requirement to the federal voter registration form, a change that voting rights advocates warned would have disfranchised millions of voters.

      Another judge ruled the Trump administration’s attempt to make federal funding to schools conditional on them eliminating any DEI policies erodes the “foundational principles” that separates the United States from totalitarian regimes.

      On immigration, a judge ordered the Trump administration to make “a good faith request” to the government of El Salvador to facilitate the return of a second man sent to a prison there back to the US, saying his deportation violated a court settlement. Another judge blocked the Trump administration from withholding federal funding from several so-called sanctuary jurisdictions that have declined to cooperate with the president’s hardline immigration crackdown.

      Trump issued a rare rebuke against Vladimir Putin, and said he has his own deadline for the Russia-Ukraine war. Trump said that he still thinks the Russian leader will listen to him.

      The Trump administration is loosening rules to help US automakers like Elon Musk’s Tesla develop self-driving cars so they can take on Chinese rivals. US companies developing self-driving cars will be allowed exemptions from certain federal safety rules for testing purposes, the transportation department said on Thursday.

      The Trump store is now selling “Trump 2028” hats to fans of the president, who is barred by the US constitution from serving a third term, despite the fact that a new poll from Reuters/Ipsos found that three-quarters of respondents said Trump should not even try to run. More

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      Peter Navarro: the economist who has outsmarted Elon Musk and has the ear of Donald Trump

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      Elon Musk called him “dumber than a sack of bricks” but, in the raw contest for political power, Peter Navarro has outsmarted the billionaire.The tumult in global trade shows that for now it is the 75-year-old economist, not Musk, who has Donald Trump’s ear in the Oval Office.Navarro is the US president’s chief trade adviser and the intellectual driving force behind the global tariffs and trade war with China. The chaos and uncertainty have been too strong even for Musk, the great disrupter, but Navarro’s silky mien still assures the US all is well.Even after the tech tycoon publicly compared him to a sack of bricks, and added that he was “truly a moron”, Navarro retained his composure. “I’ve been called worse,” he told NBC.That is true. Navarro has been called a charlatan and a criminal who risks driving the world economy off a cliff.It is a remarkable metamorphosis for a man who a decade ago was a little-known academic nearing retirement at the University of California, Irvine, a respected, stolid institution in Orange County.Then the professor’s hawkish views on China caught the eye of Trump’s 2016 presidential campaign and vaulted him to Washington, where he played key roles in economic policy, the Covid pandemic and the attempt to overturn the 2020 election, a vortex that landed him in jail – for contempt of Congress – only for him to re-emerge, more influential than ever, in Trump’s second administration.“This is the land of reinvention, both cosmetic and ideological, and he is part of that,” said John Pitney, a political scientist and author at Claremont McKenna College.Critics worry that Navarro is trying to reinvent economic rules and the postwar global order with improvisation and bluster that could trigger recession and backlash. For Trump, Navarro is the expert who can articulate a daring and necessary pivot to protectionism.Navarro’s early life, and career, suggested a different trajectory. The son of a musician and a secretary, he grew up on the east coast and obtained a master’s degree in public administration and then a PhD in economics from Harvard. His doctoral dissertation was not on trade but on corporations’ charity motives.He taught economics at San Diego universities and did research on public utilities before landing a tenure position as professor of economics and public policy at UCI in 1989. Tanned and svelte, he had the look of a glossy politician and ran as a Democrat for elected office, including for mayor of San Diego and Congress, but lost.In 2001 he switched to writing get-rich investing books such as If It’s Raining in Brazil, Buy Starbucks: The Investor’s Guide to Profiting from News and Other Market-Moving Events.In 2006 the professor took another swerve by publishing the first of a series of books, and accompanying documentaries, that assailed China as an insatiable menace that bullies, lies and cheats, especially on trade rules through currency manipulation, illegal export subsidies, intellectual property theft and polluting sweatshops.There is no evidence of causality but Navarro’s alarm coincided with California’s proliferating number of Chinese investors and students, notably at UCI, which prompted racially tinged nicknames such as the University of Chinese Immigrants and the University of Caucasian Isolation.Other economists also accused Beijing of unfair practices but Navarro’s radical critique put him on the fringe.In 2016 Trump reportedly instructed his son-in-law Jared Kushner to do research to bolster his views on China. Kushner found Navarro’s book, Death By China, on Amazon, and Navarro ended up advising the campaign.In an interview that year with the Guardian near his Laguna Beach home, Navarro endorsed Trump’s use of the word rape to characterise Beijing’s impact on the US. “It’s an apt description of the damage and carnage that China’s trade policies have wrought on the American economic heartland. What’s happening is rapacious.” He also endorsed Trump’s proposed 45% tariffs on Chinese goods, which he said would compel Beijing to back down. “We’re already in a trade war with China. The problem is we’ve not been fighting back. Trump, through tariffs, wants to call a truce.”Trump had few credentialed academics on his team so Navarro served a useful purpose, Pitney said. “He provided a degree of scholarly cover for what Trump was saying. That’s why he was brought into the administration.”Navarro’s standing in the White House survived the disclosure that his books cited a fictitious expert, Ron Vara, that is an anagram of Navarro. He sought to shrug off the deception by calling it an “inside joke” with himself and a “Hitchcockian writing device”.In Trump’s first administration, more mainstream economic advisers prevailed and there was no trade war. Even so, Navarro expanded his remit to public health during the pandemic, which afforded more opportunity to assail China, and established personal chemistry with the president that made him a survivor amid White House personnel flux.After his chief lost the 2020 election, Navarro promoted the theory that the election was rigged and sought to delay its certification. For rebuffing a congressional committee that investigated the January 2021 attack on the Capitol he was found guilty of criminal contempt and last year served four months in prison.Now back in the White House as Trump’s senior counsellor for trade and manufacturing, Navarro’s influence has been felt in tariffs, stock market volatility and grim economic warnings despite a pause in the most severe tariffs for 90 days.Navarro has a combative streak yet he chose to project indifference over Musk’s insults. “It’s no problem,” he told CNN. A White House spokesperson shrugged off the row: “Boys will be boys.” 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