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      in US Politics

      ‘It’s going to be messy’: Americans on how Trump’s tariffs are shaping their spending

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      A few weeks ago, Dane began stocking up on “paper products”, “cases of paper towels, toilet paper”, “piddle-pads” for their shih-tzu, and his wife upgraded from an iPhone 8 to 14.The 73-year-old in South Carolina said the purchases – which were made to get ahead of Donald Trump’s trade policies – reminded him of the early weeks of the Covid pandemic, when he scrambled to buy masks, gloves and toilet paper.“It’s scary,” Dane said. “Prices are going to go up because of tariffs … It’s going to be messy.”While campaigning last year, Trump constantly touted his love of tariffs. But it was not until his so-called “liberation day” on 2 April – where the president announced sweeping duties on incoming goods, punishing competitors, allies and small and developing countries alike – that he spooked global financial markets and provoked fears of spiralling inflation and stagnant growth.Amid a US government bond sell-off, the president paused his most eye-watering tariffs for 90 days, apart from China, whose goods are set to be hit with a 145% levy.Hundreds of Americans got in touch with the Guardian to share how the uncertainty is affecting their consumption habits.Dane, who is retired, worked as an entrepreneur with his wife most of his career before later becoming an English teacher. He said he was a Republican in the 1980s but is fearful about how the US is “not going the right way” under Trump, and is unhappy with his “dystopian” policies towards global allies, the economy, education, scientific research and more.View image in fullscreenCurrently, Dane is on a trip to Paris and plans to bring home consumer goods potentially hit by 10% tariffs on European Union imports.“We’ll probably be getting tea, bringing back some cheese, some butter,” he said. “I would love to bring back eggs but that would be a disaster. I’d have scrambled eggs in my suitcase.”Amid tariff uncertainty, Heather, a 61-year-old college professor in Texas, said she and her husband can mostly weather food cost fluctuations, but brought forward the purchase of a new car “inanticipation of price hikes”.She said they owned a 14-year-old Mini Cooper, which ran on gas, that they planned to replace with a hybrid vehicle at some point. They decided to replace their car now to avoid potential inflation – and reduce expenditure on gas.“The economic instability of the Trump administration certainly gives one pause,” she said. “It’s just so much instability, chaos and [the] unknown.”It’s a similar story for Stefanie, a 56-year-old educator and former tech worker in Nevada, who bought a Toyota Tacoma to replace her old Jeep as well as converting some investments into cash.Stefanie began strategizing about being more resilient to tariffs as soon as Trump was elected.“The one thing I learned in the first administration is to believe him: he says bizarre things, and then he does bizarre things,” she said.She’s cutting back on subscriptions and future travel plans, while stockpiling kitchen staples such as rice, cooking oils, vinegar and flour and replacing worn-out clothes including shoes and jeans, “before inflation hits”.“The supply chain is so globalized that tariffs really hit everything,” Stefanie said.But for Ishaan*, a 51-year-old engineer in Texas, the economic picture means he is abstaining from major purchases.“Everyone I know has started tightening their belts,” he said. “I am cutting out unnecessary expenses, cancelled my gym membership, focusing on savings.”The focus for Ishaan, who fears higher prices and an economic slowdown, is to build up his savings in cash. He feels “scared to invest in any stocks or bonds right now” amid market volatility.Likewise for Jonathan*, a 70-year-old in New Jersey, the financial fallout from Trump’s trade wars means he has been forced to rule out planned purchases and strip consumption back to the essentials.Jonathan said his individual retirement account (IRA) was initially “decimated” – although it ticked up slightly after Trump paused his tariffs on Wednesday. He said it was currently down about 15%.That means cancelling plans to redo the carpet in his house and replace two old televisions, Jonathan said. “In short, we’ll buy only necessities and pay bills until this stupidity ends.”Russ a 35-year-old physicist in New Mexico, said the Trump administration’s policies were “causing me to think about what kinds of spending behavior I could have done without this whole time”.He has an eight-year-old phone and nine-year-old MacBook computer that still work fine, which he will not be replacing. The prospect of runaway price rises for consumer electronics, often from China, have led him to reconsider: “Do I really need this, or do I just want this?“I see these things as being as much toys as necessities,” he said. “Maybe I’ll just go back to a dumbphone or something like that – I fantasize sometimes about not getting all these notifications all the time, like the phones we had back in 2005. But maybe that’s a Luddite fantasy.”Russ said that he was already boycotting Amazon and Target – companies that many feel have aligned themselves with Trump’s agenda such as rolling back their own DEI schemes. He’s trying to shop more at local, independent shops rather than “everything stores”, which he notes is more expensive and time consuming but ultimately worth it.“As an American citizen and registered voter, nobody really cares what you think until November of every other year, you feel kind of voiceless,” he said. “You think, well, if dollars are the only tools we have any more, then damn it, I’m going to cast those votes and allocate my spending accordingly.”View image in fullscreenLikewise, small business owner Christine* said the disruption could cause a wider re-evaluation of US consumer habits.Amid the uncertainty, Christine, 41, stocked up on supplies for her Miami acupuncture business for two years, and bought her son’s fifth birthday present – a bike – early for July. But she said she had already noticed less demand for her work.More broadly, the prospect of inflationary tariffs is accelerating Christine’s reconsideration of how much “stuff” she needs. She’s recently attended “these lovely parties” where friends bring unwanted clothes and they “switch it all around” rather than buying fast fashion.“I really resent being drafted into this mad trade war,” Christine said, “but if there is a silver lining, maybe it’s that at least some people like me will question their unsustainable capitalistic practices.”*Some names have been changed. More

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      in US Politics

      Sledgehammer-wielding Musk critics smash up Tesla in London art project

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      Protective helmets were donned and sledgehammers wielded as Elon Musk critics vented their frustration at the Tesla boss and billionaire by smashing up a disused Tesla bound for the scrap heap.The public art project was organised by the social media campaign group Everyone Hates Elon. A 2014 Tesla Model S was provided by an anonymous donor “to create a debate about wealth inequality”, a spokesperson for the group said.The participants gathered at Hardess studios in south London on Thursday to take it in turns to swing at the car with sledgehammers and baseball bats. The destroyed electric vehicle, which retails for about £14,000, will be auctioned in the next few weeks, with all proceeds going to food bank charities.“We’re giving Londoners a chance to stand up to far-right hatred and billionaires and express how they feel about the current state of the world,” said the group. “Therapy is expensive, but this is free.”Talia Denisenko, a 32-year-old writer, wore a Ukrainian flag as she took a hammer to the car’s bonnet as Britney Spears’s Hit Me Baby One More Time blared from a speaker. “My family is Ukrainian and Elon Musk wants to keep us occupied,” she said. “Things feel very disempowering at the moment. This is a little bit of therapy.”Alice Rogers, a 24-year-old University of Cambridge researcher from Illinois, said: “Musk is acting in ways which violates our constitution. I’m very concerned by what I’m seeing – he’s gutting agencies and cutting USAID. This felt really cathartic. I’m not normally a smasher, but that felt really good.”View image in fullscreenEveryone Hates Elon, which garnered attention this year for distributing stickers with the slogan “Don’t buy a Swasticar”, said it had made clear that the stunt, called London vs Musk, should not be replicated outside the event.“This is a private event with a used Tesla that was destined for the scrapyard – it’s a supervised, controlled art piece and there are proper safety measures in place,” said a spokesperson. “We urge people not to damage other Teslas or any other cars.”The battery of the scrap car had been removed and recycled.“I’m just aghast at what I see going on in America at the moment,” said Lee Woods, a 45-year-old university lecturer who had travelled two hours from Hampshire for the event. “I think Musk is using his obscene wealth to promote the far right.”Musk, the world’s richest person, leads the Trump administration’s “department of government efficiency” (Doge), which the president tasked with drastically reducing US government jobs and cutting national debt.View image in fullscreenTesla’s shares dropped 13% in the first three months of 2025 – an indication of buyer backlash as a result of Musk’s rightwing politics. Protests calling for a boycott of the electric vehicle company have been taking place on both sides of the Atlantic in recent months, including a global day of action where hundreds of Tesla branches were targeted by protesters from the US group Tesla Takedown.“My opinion [on Musk] has changed hugely,” said Giles Pearson, 32, who dealt the first blow on Thursday. “Since buying Twitter he’s become seriously rightwing and alienated a lot of people by doing so. I would never normally do something like this … but I’ve always wanted to smash a car.”Tesla was approached for comment. More

    • 200 Shares82 Views

      in US Politics

      Federal workers fear Musk’s ‘efficiency’ agency is using AI to spy on them: ‘They are omnipresent’

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      View image in fullscreenAt the Department of Veterans Affairs, a senior official warned employees in an email that virtual meetings were being secretly recorded. Anyone dissatisfied with Donald Trump’s decisions should be careful about voicing their opinions, the official cautioned.Over at the state department, IT staff said new monitoring software had been loaded onto computers. Some staffers had started using white noise machines in their offices, or even turned on an office breakroom sink, to muffle conversations in case there might be any hot mics within range.A supervisor at one water management organization that works closely with the Environmental Protection Agency sent a warning to staffers that their meetings and phone calls with the agency were being monitored by an artificial intelligence tool.Anecdotes like these are rife among federal employees now, amid fears that senior agency leaders or agents from Elon Musk’s so-called “department of government efficiency” may be snooping on conversations, using software to track computer activity and, possibly, using artificial intelligence to scan for disloyalty or mentions of diversity, equity and inclusion (DEI) buzzwords. Many fear losing their jobs, as thousands already have.“It’s like being in a horror film where you know something out there [wants] to kill you but you never know when or how or who it is,” one employee from the US Department of Housing and Urban Development said.These details arose from conversations with more than two dozen federal employees who spoke with the Guardian and Crooked Media’s What a Day newsletter, and shared emails from agency officials and screengrabs.The employees described a culture of fear among those who remain in the federal workforce, after waves of layoffs left many of their peers unemployed or stuck in professional limbo amid confusing and unresolved legal cases.The US government has long been transparent with federal employees about its ability to monitor them with software. But now, top officials across the government are warning employees to exercise extreme caution, over fears about what this administration might do with the information, what technology might be used, who would receive the info and whether stray talk might form the basis for fresh job cuts.Trump administration representatives denied some of the assertions and concerns raised by sources for this article, but didn’t respond to all of them. The EPA denied recording meetings, but didn’t specifically address the use of artificial intelligence. Other agencies, including the Department of Veterans Affairs and education department, didn’t respond to requests for comment.A manager at the Association of Clean Water Administrators (ACWA), which brings together state officials to work with the EPA on water quality and management, recently distributed an email warning staffers that meetings with EPA staffers may be monitored by AI.The email reads: “We recently learned that all EPA phones (landline/mobile), all Teams/Zoom virtual meetings, and calendar entries are being transcribed/monitored.”The information is then fed into “an AI tool” to be analyzed and scrutinized, the email’s author continues, adding “we saw” an AI notetaker listed as a participant in one of the meetings. “I do not know if DOGE is doing the analysis or … the agency itself,” the author writes. Participants aren’t being notified that the call is being transcribed, the email states.The EPA denied that it is recording meetings. It also didn’t specifically address the question of an AI tool.“This is fake news,” an EPA spokesperson said in a statement. “EPA is not monitoring or transcribing phone calls, meetings, or calendar entries.”But Trump political appointees have told EPA managers that Musk’s team is implementing AI to monitor workers and look for disparaging comments about Trump or Musk, according to a Reuters report.During a meeting on Wednesday morning, EPA managers told employees that Doge is “using AI to scan through agency communications to find any anti-Musk, anti-Doge, or anti-Trump statements”, an employee told the Guardian and What a Day. Employees should be “very careful” about what they say in private messages and virtual meetings, the managers added.“I honestly just think the Doge spying is kind of pathetic,” the employee said. “If they’re that confident about what they’re doing, they wouldn’t be so paranoid.”According to another email shared with the Guardian and What a Day, a Department of Veterans Affairs official also warned employees that virtual meetings were being secretly recorded.The VA didn’t respond to a request for comment.Top veterans affairs researchers across the country were recently put on administrative leave, according to an email obtained by What a Day. One of them was put on administrative leave for the “inappropriate distribution of VA material”, according to the internal email. But it’s not clear whether the individual was accused of speaking to the press or committing some other infraction.A representative for Doge did not respond to a request for comment.At the now-shuttered US Agency for International Development (USAID), employees said they discovered that their private communications were being monitored by leadership who arrived after Trump’s inauguration, prompting staff to abandon official channels altogether.“They went into our chats, like our private group chats,” said a former USAID employee who lost their position during the mass firing wave in February. “It was [the acting administrator] Jason Gray, not Doge directly. But he was put in place when they fired everybody” because he knew the systems well.The intrusions became so blatant that Gray – who was also the agency’s chief information officer – suddenly appeared in one group chat with more than 40 contractors.“We knew they were watching,” the former USAID employee, who was in the chat, said. “Everybody went on either Signal or WhatsApp because nobody was trusting [leadership] at that point.”Gray’s turbulent tenure culminated in USAID’s website being taken offline.In February, IT staff at the state department warned some employees that monitoring software was being uploaded onto computers, according to an employee, who provided images showing a record of their individual keystrokes being tracked in the software.Others worry that Doge could begin combing through conversations for anti-Trump sentiments or diversity, equity and inclusion “buzzwords”, which could then be used as grounds to fire employees.Supervisors began sharing unofficial guidance to “act as though we are always on a hot mic”, the state department employee said.“We’re turning on sinks and shit to have conversations,” they added. “It’s really funny to think about the Dogebags sitting there, watching and learning in real time, that the ‘deep state’ is really a bunch of goobers just doing our boring jobs for middling pay.”Government employees should expect that they’re being watched, top officials in the Department of Veterans Affairs said at an employee town hall in New England. “There shouldn’t be any expectation of privacy,” an official told employees, according to a list of questions and answers at the town hall provided to What a Day.At the National Oceanic and Atmospheric Administration in February, managers warned some employees to be extra careful about what they say on calls, according to an employee. “I personally think they are watching us,” they said.Some workers at the education department are fearful of speaking out, describing the atmosphere as “total paranoia”. Doge has infiltrated the education department, where half of the staff has already been fired as Trump seeks to dismantle the entire agency.“They are just so omnipresent and the work environment is so toxic and hostile, it feels like anything is possible,” a former senior education department official said about the potential for surveillance.This story is published in collaboration with Crooked Media More

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      Two visions within Trump world are battling for primacy. Which will win? | Ben Davis

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      The start of the second Trump administration has been chaotic, to put it mildly. It is difficult for Americans to understand what exactly the administration is trying to do and how it will affect them. It has been simultaneously a colossal remaking of the US state and the entire global order, but also seemingly haphazard, with significant policy decisions such as spending cuts and tariff rates clearly made with little thought or preparation. Analysts and commentators of all stripes have speculated on the motives and strategy behind the Trump administration’s huge overhaul of society. But what is the Trump administration’s plan for the US?The primary moves the administration has made are major cuts to federal government capacity through the “department of government efficiency” (Doge) and now an unprecedented tariff regime that has sent financial markets into a free fall. Some view these changes as part of a grand overarching strategy to rebuild some version of an imagined past America: globally hegemonic and able to exercise power nakedly over other countries, economically self-sufficient with a large manufacturing base, and a reassertion of the previous social norms and order around gender, race, and sexuality. But a deeper dive into the Trump administration’s explanation of their policies and vision reveals that rather than a single, coherent ideological project, the Trump administration is sclerotic and being used as a vehicle for more than one competing ideological project.While the first Trump administration had no real ideological project, with Donald Trump’s surprise win being based on a personalist coalition without the backing of an organized movement, and different factions within the administration battling for control over policy and favor from the president, the second Trump administration was backed and is staffed by two major ideological projects, representing different segments of capital: the oft-discussed “national conservatism” of the Claremont Institute, the Heritage Foundation and Project 2025, and tech capital, which has used Trump as a vehicle for its own priorities.These two overarching political projects and visions both see Trump as able to advance their goals, but these projects are competing with each other. Both have accepted that Republicans will lose the midterms in 2026, as the president’s party nearly always does, and are thus trying to radically reshape society in that time in ways that can’t easily be reversed. They have deeply different visions for the future, and whether one wins out or both of their incompatible sets of policies are carried out will have enormous implications for the lives of Americans and people around the globe.On tariffs, the administration has offered multiple, mutually exclusive visions: with some viewing tariffs as primarily a way to rebuild US manufacturing by incentivizing producers to build in the US; some viewing tariffs as primarily a way to raise revenue, cut the deficit, and in the long-term replace the income tax entirely; and some viewing tariffs primarily as a negotiating tool to force countries to make concessions to the US on a variety of issues.Trump personally has suggested that the US become an autarky, with no trade of any kind with the outside world. It’s unclear which of these will be the plan because they each have dramatically different implications for how the tariffs are structured in the long-term, how long they will last, and their effects on US workers.In the first two views, the tariffs are a part of the national conservative project of returning the US to a previous social order. They view the nation-state as the primary actor in a zero-sum anarchic global order of competing nation-states seeking to dominate each other. Tariffs are then a way of reasserting US national power relative to other states. This fits in with Trump’s rhetoric about the US, taking the country back and reasserting American nationhood, and is the primary way analysts and commentators have viewed the administration.The tech capital that oversees Doge, however, has a different project entirely. Elon Musk, who has personally overseen the large-scale slashing of the federal government, rejects tariffs entirely. The Doge project and the tariff project are at odds. The Doge project is cloaked in the rhetoric of retro America First nationalism that would seem on its face (and is understood as by its supporters) to be precisely the opposite of what it is in practice: the outmoding of the nation-state entirely.It’s notable that the first target for Doge’s cuts were not the New Deal programs conservatives have long wanted to cut, but instead the cold war-era nodes of American state power: scientific research, funding for education and the arts, foreign aid, and other programs that were created to allow the US to outcompete the Soviet Union and other countries. Musk does not care about American great power competition, such as with China, as Trump does. Indeed, Musk has close ties with the Chinese state.For Musk and his cohorts, the US must progress past the nation state model – where the state exist to project power against other nation states and part of this bargain is keeping a certain social compact of living standard with citizens – to the vendor state model where international firms are paramount and states exist instead to compete for their favor. The Doge project of Silicon Valley technolibertarianism aims to sublimate the state to capital entirely and to outsource state capacity to transnational tech firms. This is, rather than an end of globalization as the national conservatives want, the final conclusion of globalization, where international capital exists above and beyond the bounds of the nation-state.This is the reason large swathes of tech capital reversed course on Trump during the Biden administration and became his biggest financial backers. For them, Trump exists as a vehicle for their overall project.Both of these projects are disastrous for the American people on their own, but both being partially implemented in opposing ways is even worse and will lead to disaster for US workers and our society’s basic capacity to function.While the tariffs by themselves are devastating to US consumers and could lead to a major economic crisis, the Doge cuts strip state capacity that would be needed to implement the most positive vision of tariffs returning manufacturing jobs. While tariffs drive up prices on things like semiconductors or electric vehicles, the government is simultaneously slashing the programs designed to encourage these goods to be manufactured domestically. And while the Doge cuts have slashed the state and led to the direct capture of swathes of the state by tech capital, their overall project of global tech hegemony cannot progress in a world where international trade has broken down completely.Trump and the national conservative’s dream of a return to a pre-financialization manufacturing-based economy, where the US has security through economic self-reliance, and the tech right’s commitment to creating shareholder value at all costs, and whose entire model is based entirely on the result of financialization, are incompatible and on a collision course. Different sections of capital – tech on the one hand, and the revanchist small capital class who form national conservatism’s base on the other – have different and competing interests and control of different sections of administration policy. The consequences of this intranecine competition are enormous, but either way, the next four years look dire for the American working class. The damage may take generations to fix.

      Ben Davis works in political data in Washington DC. He worked on the data team for the Bernie Sanders 2020 campaign More

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      Labour: changes to EV rules will have ‘negligible’ impact on UK emissions

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      Labour’s changes to electric vehicle (EV) rules in response to Donald Trump’s tariffs will have a negligible impact on emissions, the transport secretary has said.Keir Starmer has confirmed plans to boost manufacturers, including reinstating the 2030 ban on the sale of new petrol and diesel cars.But regulations around manufacturing targets on electric cars and vans will also be altered, to help companies in the transition, and new hybrids will be on the market for a further five years.Heidi Alexander said the taxes on imports announced by the US president last week, which spurred reciprocal action by some affected countries, “are bad news for the global economy, because it’s bad for global demand, it’s bad for prices and it’s bad for consumers”.Speaking on BBC Breakfast about the impact on carbon emissions of the government’s changes to electric vehicle rules, she said: “The changes we are making have been very carefully calibrated so as not to have a big impact upon the carbon emissions savings that are baked into this policy. In fact, the impact on carbon emissions as a result of these changes is negligible.”Under the measures, luxury supercar companies such as Aston Martin and McLaren will be allowed to keep producing petrol cars beyond 2030 because they manufacture only a small number of vehicles a year. New hybrids and plug-in hybrid cars will be allowed to be sold until 2035. Petrol and diesel vans will be able to be sold until 2035, as well as all hybrid models.Alexander said the government had “struck the right balance” between protecting British businesses and cutting carbon emissions.Asked whether the retention of a 2030 target for the phasing out of all pure petrol and diesel cars would restrict free markets at a time when the car industry was on its knees, she said: “It is an opportunity for the car industry to remain at the cutting edge of the transition to EVs, but it’s right that we’re pragmatic.“It’s right that we are looking at how we can be flexible in the way in which car manufacturers make this transition, because we want cheaper EVs to be available for consumers. We want people to be able to benefit from those lower running costs as well.“And so it’s important that, as a government, we do everything that we can – not only to support British businesses and manufacturing to grow the economy, but also to cut those carbon emissions, and I think we’ve struck the right balance in the package that we’re announcing today.”Asked on BBC Radio 4’s Today programme if Starmer was prepared to use the relationship he has built with Trump to ask him to change course, she said: “Obviously when the prime minister has discussions internationally with allies he will be honest about what is in the best interests of the British people.”Challenged that the EV measures were planned before the announcement of the tariffs and were a tweak to policy rather than dramatic change, she told Today: “These are significant changes to the car industry. You are right to say we started the consultation on Christmas Eve and that we closed the consultation in the middle of February.”skip past newsletter promotionafter newsletter promotionShe said Trump’s imposition of tariffs meant the UK government had to look at its EV plans with “renewed urgency”.The Green party MP Siân Berry said: “The government is wrong to apply the brakes on the sale of EV cars. This is just the latest in a series of boosts the Labour government has given fossil fuel industries. We’ve also seen the green light being given to airport expansion and a new road tunnel under the Thames. This suggests Labour is weakening its climate commitments, and its health-related policy goals because all these moves will have a detrimental impact on air quality.“Slowing down the move away from fossil-fuelled transport makes no economic sense either, since green sectors of the economy are growing three times faster than the overall UK economy.”Colin Walker, the head of transport at the Energy and Climate Intelligence Unit, said: “In weakening the mandate elsewhere by extending flexibilities and allowing the sale of standard hybrids between 2030 and 2035, the government risks reducing the competition it has stimulated between manufacturers, meaning prices for families seeking an EV might not fall as fast, and sales could slow.“The growth of the secondhand EV market, where most of us buy our cars, would in turn be stunted, leaving millions of families stuck in petrol and hybrid cars paying a petrol premium of hundreds, and even thousands, of pounds a year.” More

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      Under Trump and Musk, billionaires wield unprecedented influence over US national security

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      Just days before Donald Trump’s inauguration in January, Blue Origin, the space company owned by billionaire Jeff Bezos, launched its New Glenn rocket, named for John Glenn, the Mercury astronaut who was the first American to orbit the Earth. Around 2am on 16 January, the 30-story rocket powered by seven engines blasted off into the Florida night from Cape Canaveral’s historic launch complex 36, which first served as a Nasa launch site in 1962.The flight’s end was marred by a failure to bring the booster rocket back for further use, but the successful launch and orbit still marked a watershed moment for Blue Origin in its bid to compete with SpaceX, the company owned by Elon Musk, for dominance over American spy satellite operations. During the Trump administration, it is likely that both companies will play significant roles in placing spy satellites into Earth orbit, which could mean that the United States intelligence community will be beholden to both Bezos and Musk to handle the single most complex and expensive endeavor in modern espionage.In fact, Musk and Bezos are in a position during the Trump administration to personally exert significant influence over the direction of the Central Intelligence Agency, the National Security Agency and the rest of the US national security apparatus. The two pro-Trump billionaires have already been awarded massive contracts with the US intelligence community, including some that predate Trump’s first term in office.The emergence of Musk, Bezos and a handful of other pro-Trump billionaires as key players in US intelligence marks a radical change in US spy operations, which have traditionally been controlled by career government officials working closely with a few longstanding defense and intelligence contractors, giant corporations such as Lockheed Martin, RTX and Northrop Grumman that are adept at lobbying both Democrats and Republicans in Washington. But with Musk, Bezos and other pro-Trump Silicon Valley figures gaining an edge through their personal ties to Trump, civil servants in the intelligence community may be reluctant to deny them ever-larger contracts, especially since Trump has already fired several inspectors general who investigated Musk’s businesses in other areas of the government.Anticipating big rewards, Musk is reportedly joining forces with other pro-Trump billionaires to try to carve up the defense and intelligence business. SpaceX is working with Palantir, a hi-tech data analytics intelligence contractor co-founded by Peter Thiel, one of the most prominent rightwing figures in Silicon Valley; Anduril, a new defense contractor founded by 32-year-old pro-Trump tech bro Palmer Luckey; and several other Silicon Valley firms to form a consortium geared towards loosening the grip of the defense industry’s traditional players.Tech leaders eager to get into intelligence contracting have long complained that the business has become so consolidated around a few big players that it is nearly impossible for outsiders to compete, leading to a lack of innovation. “Consolidation bred conformity,” argued Shyam Sankar, the chief technology officer of Palantir, in a widely read public memo, The Defense Reformation.Swapping one oligarchy for anotherIt is hard to separate Silicon Valley’s calls for breaking up the oligarchy now controlling the defense and intelligence business from the eagerness of pro-Trump tech bros to grab as much power and cash as possible while creating a new oligarchy of their own.“The idea of overturning the contracting process did intrigue me, but now, under Trump, I think it is just about greed,” observed Greg Treverton, a former director of the National Intelligence Council, the intelligence community’s top analytical arm. “Now, with Trump, it is mostly about money and connections.”In the eyes of their critics, tech entrepreneurs offer a simplistic, black-and-white picture of the defense and intelligence business in which Silicon Valley conveniently has all the answers.“Beware the instant expert,” said Peter Singer, a defense analyst at the New America Foundation. “It’s like they are saying ‘I watched a YouTube video and now I know everything.’ They have this narrative that only Silicon Valley can drive innovation.”Elon Musk, satellite spymasterAs he eagerly slashes and burns through the ranks of federal employees with his Doge apparatus, Musk has emerged as the most powerful and polarizing figure in the Trump administration. But what is less well known is that Musk has also gained an influential role in the US intelligence community despite never having served inside the spy world.Musk’s SpaceX has already become one of the main rocket contractors launching American spy satellites and is seeking to overcome the edge held by United Launch Alliance, a joint venture between Boeing and Lockheed Martin, the traditional giant in the niche. In addition, Starlink, Musk’s commercial satellite communication network, is playing a critical role in US foreign policy, providing internet service in remote regions of the world including in Ukraine, where it operates a communications network for the Ukrainian army. Starlink’s role in the Ukraine war has placed Musk squarely in the middle of the dispute between Trump and the Ukrainian president, Volodymyr Zelenskyy. Meanwhile, questions about whether Musk is assuming a dual role as both a player in Trump’s national security policymaking and a major contractor grew after he received a private briefing at the Pentagon on 21 March and visited the CIA headquarters 10 days later.SpaceX has a head start over Blue Origin in the spy satellite business, and Musk has a big lead over Bezos in Trump world. But Blue Origin and Bezos are working hard to catch up in both.skip past newsletter promotionafter newsletter promotionBezos seeks to add to classified cloud contractDuring his first term, Trump repeatedly attacked Bezos over negative stories that were published in the Washington Post, which Bezos owns, and as revenge threatened Amazon’s business dealings with the US Postal Service. Since the 2024 election, though, Bezos has turned himself into a Trump booster, lavishing praise and large donations on the president while also working to transform the Washington Post’s opinion page, which he says should focus on “personal liberties and free markets”.Bezos’s move into an alliance with Trump has put him in a position to expand his reach into the spy satellite business while also protecting the large stake he already holds in other aspects of intelligence. The billionaire, the second-richest person in the world after Musk, has been involved in the spy world for more than a decade through Amazon Web Services, a cloud computing subsidiary of Amazon, which Bezos founded and where he remains executive chair. Amazon Web Services has managed the CIA’s classified cloud since it won a $600m contract with the spy agency in 2013, and dramatically expanded its intelligence role when it was awarded a $10bn contract to manage the NSA’s classified cloud in 2022 through a program code-named “Wild and Stormy”.Palmer Luckey and Silicon Valley’s clique of young defense contractorsPlenty of other Silicon Valley billionaires are also seeking to crowd into Washington alongside Musk and Bezos. Palantir’s Thiel is a mentor of the vice-president, JD Vance, and his firm has a longstanding relationship with the intelligence community that is likely to expand under Trump. The CIA’s investment firm, In-Q-Tel, was one of the early backers of Palantir after its 2003 founding, and the company has had a major role in the development of data integration and data analytics systems for the intelligence community. Palantir is now seeking a broader role in developing AI for both the Pentagon and the intelligence community.Luckey, who made his name as a virtual reality entrepreneur by founding Oculus, has become a prominent new face at the intersection of Trump world and national security. Luckey’s Anduril now has a contract with the US army to develop battlefield virtual reality headsets, which would allow data to be sent directly to soldiers while also allowing them to control unmanned drones and other weapons. In addition, Anduril won a $642m contract with the Marine Corps to develop countermeasures against small drones in March. Luckey first supported Trump in 2016, when that was an unpopular position in Silicon Valley, but now that Trump is back, he has said that he’s on an “I told you so tour”, trumpeting his America-first political views.Luckey said in a recent interview: “I don’t think the United States needs to be the world police. It needs to be the world’s gun store.”Google once committed to not building artificial intelligence for weapons or surveillance in a watershed moment of divorcing tech from the defense and intelligence industry. Earlier this year, though, the company scrapped that pledge. The campaign by the tech bros to win bigger roles for themselves in defense and intelligence represents a return to Silicon Valley’s roots. Hi-tech originally grew in northern California because of its early connections to the military and defense industrial base in the region, observed Margaret O’Mara, a tech industry historian at the University of Washington.“Silicon Valley has always been in the business of war,” O’Mara said. More

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      Doge eyes cuts to Peace Corps with in-person visit and records access

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      The Peace Corps is the latest federal agency to be targeted by Elon Musk’s unofficial “department of government efficiency”. It appears “Doge” could be eyeing cuts to the agency, which sends US volunteers around the world to work in local communities on health, education and environmental initiatives.“Staff from the Department of Government Efficiency are currently working at Peace Corps headquarters and the agency is supporting their requests,” the agency said in an email to the Guardian on Friday.One Doge representative, Bridget Youngs, visited the Peace Corps headquarters on Friday, according to two people familiar who spoke on the condition of anonymity. Those people say Peace Corps staff confirmed her identity with the White House and that she was in the building for a few hours. She asked for access to the agency’s financial records and said other Doge workers may visit the building over the weekend to continue the work, according to the two people.In an internal email shared with the Guardian, Peace Corps administrators wrote: “We will be welcoming the Doge folks this afternoon. We have been made aware that they intend to work on the weekend, so we will need you on standby.”The email instructs staffers to cooperate with any Doge workers and “if data from the system is requested, confirm what is required to meet their needs (data, format, etc)”.The email adds that “under all circumstances, ensure that clear records are kept on what is requested and provided”.In a separate agency-wide email sent to Peace Corps staffers around the world, the agency notified everyone that it received a visit from Doge on Friday and it expects “additional visits”.Since Donald Trump was inaugurated, Musk and his allies in Doge have been steadily working to slash budgets and layoff workers in federal agencies. They’ve targeted more than 20 agencies with the mission to identify “waste, fraud and abuse”.It’s unclear what Doge’s directive is with the Peace Corps. But obtaining access to the agency’s financial records indicates it could be looking to cut costs and cancel programs as it has done with other agencies that work on global issues and foreign aid, such as the US Agency for International Development (USAID).Reuters first reported Doge’s visit to Peace Corps headquarters.Musk and his top lieutenant at Doge, Steve Davis, did not return requests for comment.The National Peace Corps Association, a nonprofit that advocates for the Peace Corps and returned volunteers, sent an email to its members on Friday also confirming Doge’s visit to the Washington DC office. “One individual from the department reported on the premises and more on the way tomorrow,” the group wrote in the email.The Peace Corps has had more than 240,000 volunteers since its inception in 1961, when it was created by John F Kennedy. The agency’s mandate has been to send workers to the developing world to work on projects such as public health and economic development. The agency, which has an annual budget of about $400m, has long had support from Republicans and Democrats.In its email regarding Doge’s visit, the National Peace Corps Association said: “Our community is tens of thousands strong, and will unite to champion Peace Corps ideals with courage, hope, and perseverance.” More

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      Trump extends deadline for TikTok sale to non-Chinese buyer to avoid ban

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      Donald Trump said he will sign an executive order to extend the TikTok ban deadline. This is the second time the president will have delayed the ban or sale of the social media app, and will punt the deadline to 75 days from now.The TikTok deal “requires more work to ensure all necessary approvals are signed”, Trump announced on his Truth Social platform on Friday.ByteDance, TikTok’s parent company, issued a statement in response to the executive order: “ByteDance has been in discussion with the U.S. Government regarding a potential solution for TikTok U.S. An agreement has not been executed. There are key matters to be resolved. Any agreement will be subject to approval under Chinese law.”Congress passed a law last year forcing TikTok to either divest or sell its assets in the US. The law stemmed from concerns that the app’s Chinese owner, ByteDance, could use the social media platform to manipulate Americans. The first deadline to ban or force the sale of the app was 19 January. But, on his first day in office, Trump signed an executive order to delay that decision to 5 April. Now the new deadline will be in mid-June.Earlier this week, the president met with potential buyers for TikTok and said his administration is “very close” to a deal. Among those who’ve reportedly thrown in bids are a consortium of investors led by the software giant Oracle, asset manager Blackstone, Amazon, Walmart, billionaire Frank McCourt, a crypto foundation, and the founder of the adult website OnlyFans.TikTok is a tremendously popular social media app with 170 million users in the US. Investors and corporations see huge appeal with owning the app and its secretive algorithm.ByteDance has said it has no plans to sell TikTok and in previous court filings said a divestiture “is simply not possible: not commercially, not technologically, not legally”.After announcing sweeping tariffs on dozens of countries, Trump hinted on Thursday aboard Air Force One that he might lessen the trade penalties on China if ByteDance were to approve a sale. The country faces a 54% tariff on goods imported to the US. “We have a situation with TikTok where China will probably say we’ll approve a deal, but will you do something on the tariffs. The tariffs give us great power to negotiate,” he said.In his Truth Social post Friday, Trump reiterated that sentiment, saying: “We hope to continue working in Good Faith with China, who I understand are not very happy about our Reciprocal Tariffs (Necessary for Fair and Balanced Trade between China and the U.S.A.!).skip past newsletter promotionafter newsletter promotion“We do not want TikTok to ‘go dark,’” he continued. “We look forward to working with TikTok and China to close the Deal. Thank you for your attention to this matter!” More