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    The Guardian view on the IMF’s warning: Donald Trump could cost the world a trillion dollars | Editorial

    Wake up! When the most sober of global institutions, the International Monetary Fund, abandons its usual technocratic calm to sound the alarm on the political roots of global financial instability, it’s time to pay attention. The IMF is warning of a non-negligible risk of a $1tn hit to global output, as Donald Trump’s erratic “America first” agenda – part oligarchic enrichment scheme, part mobster shakedown – collides with a perfect storm of global financial vulnerabilities.Such a shock would be equivalent to a third of that experienced in the 2008 crisis. But it would be felt in a much more fragile and politically charged environment. This time, the crisis stems not just from markets but from the politics at the heart of the dollar system. The IMF’s latest Global Financial Stability Report sees the danger in Mr Trump’s trade policies, especially his “liberation day” announcements, which have pushed up America’s effective tariff rate to the highest in over 100 years.The IMF put investors on notice that Trumpian volatility was taking place as US debt and equities – especially tech stocks – were overvalued. It cautions that hedge funds have made huge bets that have gone sour, requiring them to sell US treasuries for cash and potentially deepening the chaos in bond markets. Ominously, the IMF draws the comparison, first made by the analyst Nathan Tankus, with the “dash for cash” in March 2020 during Covid, when the Federal Reserve rescued US treasury markets directly. Developing nations, already grappling with the highest real borrowing costs in a decade, may now be forced to take on even more expensive debt – the IMF warns – just to cushion the blow from Mr Trump’s new tariffs, risking a dreaded “sudden stop” in capital flows.At the heart of this chaos stands the US, the very country meant to uphold the global financial architecture. Just over a week ago, Adam Tooze of Columbia University wondered if markets had begun to “sell America” after US long-maturity bond prices fell precipitously. He thought that markets were no longer just responding to economic fundamentals but to politics as a systemic risk factor. In this case: Mr Trump’s tariff threats and his increasing political pressure on Fed’s chair, Jerome Powell. In essence, Prof Tooze gave us the theory; the IMF just confirmed the data.The US president’s continued attacks on the Fed chair over the weekend have only added to a flight from US equities, bonds and the dollar itself. The money is fleeing to safe havens such as gold. Some of the loss has been clawed back, but at what cost? Investors aren’t just jittery about inflation or growth – they’re hedging against political chaos. That might explain the seemingly divergent IMF messaging: blunt systemic warnings in its report versus the soothing market-facing comments from a senior official at the fund’s press conference. This is central bank diplomacy. The institution is signalling that it is worried while trying not to spark a self-fulfilling panic in treasuries and the dollar.The real concern here is not technical dysfunction in treasury markets or the mechanics of the Fed, which are the bedrock of the global financial system. It’s about the politicisation of the monetary-fiscal nexus under a Trumpian regime that is fundamentally hostile to the norms of liberal-democratic governance. When even the dollar is no longer a safe haven, what – or who – can be?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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    Trump’s very beautiful tariffs will fix America, masculinity and the family. It said so on Fox News | Arwa Mahdawi

    There’s been a lot of doom-mongering about tariffs recently, hasn’t there? Oh no, my life savings are going to get wiped out and I’m never going to be able to retire! Oh no, grocery prices are going to triple! Oh no, it looks suspiciously as if Donald Trump has used ChatGPT to guide his fiscal policy and now we’re going to see another Great Depression! Moan, moan, moan.While it might be true that much of these predictions are coming from highly credentialed economists and people who tend to know what they’re talking about, I’d like to remind you that there are two sides to every story – and it’s always worth looking at both of them. You’ve already heard from voices who reckon Trump’s tariffs are misguided and dangerous. Now it’s time to focus on the people who support the president’s assessment that tariffs are a “very beautiful thing” that will usher in a new golden age.Where do we find such people? Fox News, of course. The place where up is down, left is right, and Oceania has always been at war with Eastasia if King Trump says that’s the case. As the stock market plunges, Fox News has wheeled out a bunch of pundits and anchors to explain how your savings getting obliterated is a good thing, actually.First, there’s Fox News host Jesse Watters, who is known for making thoughtful and nuanced statements such as: “When a man votes for a woman, he actually transitions into a woman”; and announcing that men shouldn’t eat soup in public because it isn’t “manly”. In a recent segment, Watters said that these tariffs – which will make life more expensive – are actually “going to make it easier for people to start families”. He added: “These tariffs are for the children.” I polled my own child, who is three, on this, and she would rather have an Elsa doll than a tariff, but what does she know, eh?While Watters believes the children are our future, and tariffs will help them lead the way, Free Press columnist Batya Ungar-Sargon reckons Trump’s economic policy is going to fix the “crisis of masculinity”. On Sunday, Ungar-Sargon told Fox News that the US had “shipped jobs that gave men who work with their hands for a living, and rely on brawn and physicality, off to other countries … and imported millions and millions of illegals to work in construction, manufacturing, landscaping, janitorial services – jobs that used to give men access to the American dream.”Ah yes, as the old adage goes: if you’ve got nothing intelligent to say, go on Fox News and demonise immigrants. There are in fact plenty of jobs available in the US that rely on “brawn and physicality”; the problem is many of them wreck your body and don’t pay a living wage. You know the workers who cut quartz slabs for kitchen countertops, for example? They’re predominantly young Latino men who are said to be suffering from lung disease because of the silica dust created by cutting said slabs. Meanwhile, construction workers are more likely to die of a drug overdose than those in any other occupation because the physical nature of the work results in an increased likelihood of injury and the subsequent prescription of addictive opioids. Romanticising these sorts of jobs – particularly when your own job consists of typing on a computer – does absolutely nothing to help men.As I said, it’s always important to look at both sides, even if one side of an argument appears completely demented. Still, I’m squinting very hard and I’m afraid that, despite Ungar-Sagon and Watters’s very persuasive arguments, I can’t see an upside to tariffs. Let’s say that more manufacturing jobs do open up in the US (a process that would take years). It seems unlikely Trump would fight for them to come with decent wages – he recently rescinded one of Joe Biden’s executive orders that raised the minimum wage for federal contractors. I’m not sure doing hard labour for a low salary gives you access to the American dream, unless your dream is going bankrupt from medical bills.But look at me: moan, moan, moan. You know what I’ve just realised my problem is? I think I need to watch more Fox News. And, if you’re feeling down about the state of the world, then you may need to, too. Now that Trump has started posturing over Iran, I can’t wait for Fox pundits to explain how accidentally inviting a nuclear war is going to be great, actually. Nothing like a little bit of radiation poisoning to fix the crisis of masculinity. More

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    Who will win bigly from Trump tariffs? | Brief letters

    After Donald Trump raised a range of tariffs, the US stock market tanked (Report, 4 April). If Trump rescinded these, within weeks the stock market would bounce back. Wouldn’t it be interesting to know in advance when that was going to happen? Somebody could make a great deal of money.John KinderRomsey, Hampshire In the past, we referred to the ABC of the cost of living crisis: Austerity, Brexit, Covid. Now, it seems, we have to add D for Donald and E for Elon. I don’t want to think about what F might stand for.Ruth EversleyPaulton, Somerset Re your article (‘She treats everyone with a deep growl’: can you train an angry cat to be more sociable?, 30 March), sometimes it just requires patience: in his 20th year my adopted feral cat Twix finally gave up being antisocial and climbed on to my lap for a cuddle, and there he remains at every opportunity, living his best life.Rosemary JacksonLondon Re your report (Birmingham declares major incident over bin strike as piles of waste grow, 31 March), we can now acknowledge that, like medical staff, binmen are essential frontline workers, without whom public health collapses? The solution to the impasse? Attlee got it right. Stuff their mouths with gold.Jenny MittonSutton Coldfield, West Midlands I hadn’t noticed seat heights on Mastermind (Letters, 1 April) but I comment every week to my wife about the amount of manspreading, to the extent that when we board a bus or train, we often say quietly to each other: “A few potential Mastermind contestants here.”Ray JenkinCardiff More

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    How could Donald Trump’s tariffs affect UK households and their finances?

    Foreign Secretary David Lammy has said people across the country are “very concerned” about how the move by the United States to place 10 per cent import taxes on goods would hit their own finances.Here is a look at how households may find their finances could be affected:What about prices in shops?Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “The impact on prices isn’t nailed on at this stage.“There are a number of forces that could keep a lid on inflation. Worries about growth around the world mean central banks may keep interest rates as low as possible in order to support whatever growth is around.”Fluctuations in sterling against other currencies will have an impact on prices.Ms Coles said: “We might also see some of the goods that were destined for the US being diverted elsewhere around the world – including the UK.“If it means a glut, it could mean there are some decent bargains around. Plus, some companies will want to hold prices lower, in order to compete more effectively against US businesses, so we could benefit from that.President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House in Washington (Mark Schiefelbein/AP) More

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    Voices: Energy, water, council tax – how are you coping with rising bills this ‘awful April’? Join The Independent Debate

    Millions of households across the UK are bracing for yet another wave of price hikes, as bills for energy, water, council tax, and more increase from 1 April. Dubbed ‘awful April,’ these rising costs are putting even more pressure on household budgets, prompting fresh calls for government intervention.Energy bills for millions on standard variable tariffs will rise by an average of £111 a year, while water bills in some areas will jump by nearly 47 per cent. Council tax increases will also hit households across England, Scotland, and Wales, with some local authorities imposing hikes of almost 10 per cent. On top of this, the cost of road tax, broadband, and TV licences is also climbing.With so many expenses going up at once, we want to hear from you: Are you feeling the pinch? Have these rising costs affected your household, and what steps are you taking to manage?And crucially, has ‘awful April’ changed your view of Sir Keir Starmer’s government and Labour? Do you think the current government is doing enough to tackle the cost of living crisis?Vote in our poll or share your thoughts in the comments – we’ll feature the most compelling responses and share the results in the coming days.All you have to do is sign up and register your details – then you can take part in the discussion. You can also sign up by clicking ‘log in’ on the top right-hand corner of the screen. More

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    Will families be £500 better off after Reeves’ Spring Statement? Here’s what experts say

    In her Spring Statement, Rachel Reeves promised that the average household would be “over £500 a year better off” under Labour – even after inflation. For millions feeling the pinch, it was a headline moment.As a positive, it was one for the chancellor to hang her hat on – though pales in comparison to 250,000 being sent into poverty by other cuts to the welfare bill.But how real is that £500? Is it money in your pocket, or just clever forecasting? Within minutes, the message had already started to shift – and the fine print tells a very different story.The first question is easy to answer in part: given the data was from the Office of Budget Responsibility (OBR), it should be trusted to have been arrived at in diligent fashion, factoring in the latest economic data to give Ms Reeves the headline that household disposable income was growing “at almost twice the rate” as had been forecast last year.However, there may have already been some revisionism on that within minutes – and the lack of clarity and consistency is arguably as concerning as any quickfire change – with Labour posting to social media that average households would be £500 better off in the final year of parliament, not each year. But the second part of the question is arguably more real for those families she’s talking about – and, sadly, it probably isn’t one they’ll be delighted by.It is not, of course, as though it means £500 is suddenly deposited in bank accounts or pockets.Some have even interpreted those words as being £500 better off across the entire course of parliament, with Martin Lewis of MoneySavingExpert.com surmising on social media from OBS notes that the sum is generated “over the life of parliament not per year.”“Most of it comes in the last two years, after [it] drops first, and is based on assumptions that some current tax proposals eg. freezing tax thresholds will end,” he continued.Economics experts are largely in agreement and even suggested the sums meant a more modest improvement of the national economy over the mid-term than Ms Reeves and co had initially been forecasting. Get a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteGet a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to website“This is hardly ground breaking and I’m not sure anyone will or should be celebrating this modest increase,” Blick Rotherberg CEO Nimesh Shah told The Independent.“This, in itself, suggests that the economy is not going to grow to anywhere near the extent that Labour were promising when they came into government and the policies aren’t working – despite Rachel Reeves suggesting otherwise at the start of her Spring Statement.“Households being £500 a year better off [over the full term] is less than £2 per week. But sticky inflation will wipe that out with some ease.“When inflation remains high, interest rates aren’t coming down as quickly as expected and the economic growth has been halved, £500 in five years (an awfully long time away) doesn’t touch the sides and I don’t expect provides any encouragement.”As to exactly where that increase in money comes from, the outlook is uncertain – and it is a lower real income rise than families have seen previously too, says Oxford Economics analyst Michael Saunders.“The rise in real incomes per household comes from pay growth running slightly ahead of inflation, in the OBR’s forecast,” he told The Independent.“As to whether it matters: to put it in context, real disposable income per head in 2024 Q3 (the latest available data) was just 1.0 per cent above the 2019 level.“We don’t know what the per cent rise implied by the £500 is, but the OBR expect real disposable income per head to rise by 3.2 per cent from the end of 2024 to the start of 2031.“Will people notice this faster income? Perhaps, but its not going to transform things. From 1997 to 2007, real income rose by 27 per cent, so the OBR’s outlook is pretty low compared to that.” More

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    Tax calculator: See how Rachel Reeves’ spring statement will affect you

    Rachel Reeves has unveiled a £14bn package to repair the UK economy in her spring statement, as the UK’s budget watchdog halved its forecast for economic growth to just one per cent.The chancellor confirmed a squeeze on the welfare budget and cuts to the civil service, while detailing a rise in defence spending and an increase in Universal Credit (UC).Wednesday’s statement saw Ms Reeves face criticism from the Conservatives, who claimed she had “tanked the economy” and was “reckless” with the fiscal headroom she had left herself with.There was no change announced to limits on the cash Isa as had been mooted, but newly announced changes to UC and the impending alterations to National Insurance Contributions and the minimum wage may still affect your financial position. Follow reaction to Ms Reeves’ statement here in our live blog.The Independent’s Budget calculator below, created by tax advisory firm Blick Rothenberg, will help you to determine whether you are better or worse off following Wednesday’s statement.Enter your details including how much you earn, marital status and family details to see how your finances will be affected. More

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    Voices: What would you like to see from Rachel Reeves’ spring statement? Join The Independent Debate

    Rachel Reeves’ spring statement is fast approaching, bringing fresh debate about the future of living standards in the UK.A new forecast from the Joseph Rowntree Foundation suggests that average disposable incomes could fall by 3 per cent by 2030, with the lowest earners affected the most.The chancellor has hinted at spending cuts to address a £20bn gap in public finances while ruling out tax rises as a solution. Welfare budgets, local government funding, and other public services are all under scrutiny as departments look to reduce spending.Some argue that difficult decisions are necessary to maintain economic stability and avoid a repeat of Liz Truss’s mini-budget. Others warn that prioritising spending cuts over tax reform could further strain struggling families, making it harder for Labour to meet its pledge to improve living standards.With big decisions ahead, we want to hear from you: What do you want to see in the spring statement? Should Reeves introduce measures to protect living standards, such as targeted support for low-income households? Should she focus on economic growth and job creation through investment in infrastructure and skills? Or would you like to see tax reform, closing loopholes and raising revenue in a different way? Perhaps public services investment should take priority, ensuring the NHS, education, and local councils have the funding they need.What should the chancellor’s top priority be? Vote in our poll below and share your thoughts in the comments – we’ll feature the most compelling responses and share the results in the coming days.Get a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteGet a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteAll you have to do is sign up and register your details – then you can take part in the discussion. You can also sign up by clicking ‘log in’ on the top right-hand corner of the screen. More