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My condolences to everyone who spent days trying to play 5D chess with Donald Trump’s market-exploding tariff mess. Where Trump is involved, there is a cloud of malevolent chaos, and there is grift amid the chaos. What grandmasters there are to be found are almost certainly grandmasters of grift.When markets dump $10tn in three days and then gain trillions back in a single afternoon on the erratic decisions of one deeply corrupt person, you can be sure that a small number of people have made immense sums of money out of that volatility. Were the people responsible for abnormal spikes of buying into the markets (including call options on various indexes and exchange-traded funds) on Wednesday morning – and again, 20 minutes before the tariff announcement went public – extraordinarily lucky? Were they in the right Signal group? Or were they just simply following Trump on Truth Social, where he posted: “THIS IS A GREAT TIME TO BUY!!! DJT” –just a few hours before dropping the news that he was kind of pulling back.The first takeaway for the EU – beyond the potential stock tips – is that Trump will back down under pressure. So don’t grovel: the 10% universal tariff is still there, as are last month’s tariffs on steel and aluminum, so why has the EU unilaterally stepped down its retaliatory tariffs without a corresponding step-down from the US?Trump, of course, is spinning his partial U-turn as a result of “these countries … calling me, kissing my ass”, as he bragged to a gathering of congressional Republicans on Tuesday night. I have no doubt that Trump – whom hundreds of mental health professionals have described as having such a striking and serious case of malignant narcissism that they were willing to break a professional rule and diagnose him from a distance – would have loved for that to be true. But let me go out on a limb and say that it wasn’t the ass-kissing or any “deals”. It was that investors and funds the world over were fleeing anything and everything linked to the US – including its sovereign debt.There is a longstanding phenomenon whereby Europe tends to overvalue the US’s power and underestimate its own. Europe neither “kissed ass” nor retaliated over the “liberation day” tariffs; it observed as the market carnage and threat to US Treasury bonds punched a hole in the idea of the US as impregnable. Imagine how much faster the flood away from the US and to safety elsewhere (including the euro) would have been if the EU hadimmediately used its so-called bazooka, the anti-coercion instrument – a powerful new regulation that would allow it to target US services industries such as banking and tech.The second takeaway is that the rest of the world is ready to bypass the US’s chaos and unpredictability – it just needs Europe to be the alternative. What Trump also does not understand is that the US may have a trade deficit, but it was a net exporter of trust – until it blew up an interlocking economic and security order that it had designed, built and maintained over eight decades – and of which it was the primary beneficiary. As a result, the view from Brussels now is that “there is no long-term credibility” with the US, Claus Vistesen, of Pantheon Macroeconomics, told me.Europe, on the other hand, plays by the rules. In the long run the more dents Trump pounds into the rule of law and the idea that the US is stable, rather than erratic, the stronger the euro’s argument for replacing the dollar as the world’s reserve currency. Which brings me to the third takeaway.In the face of the Trump administration’s very real animosity towards it, the EU must act as swiftly as possible to shore up its greatest weakness: its dependence on fossil-fuel imports. Sometimes, the animosity is almost laughably tragicomic, such as when US commerce secretary Howard Lutnick ranted that Europeans “hate our beef because our beef is beautiful and theirs is weak”. Other times, it’s more transparent, such as when Trump claimed there would be no negotiations unless the Europeans “pay us a lot of money on a yearly basis, number one for present, but also for past”. As in, in Trump’s mind, $350bn in annual purchases of US natural gas in exchange for lifting tariffs.Over the past few months, the refrain that governments should weaken climate regulation in order to promote growth has picked up. This would be a truly pyrrhic victory – primarily because Europe is acutely vulnerable to climate breakdown, the human and financial costs of which are staggeringly worse at every half-degree of heating, but also because the EU’s dependence on imported fossil fuels – from Russia, or from the US – is a glaring strategic and economic weakness. In fact, the grand irony of Trump’s pro-fossil fuel agenda is that he has exploded the green re-industrialisation that actually was taking place, thanks to Joe Biden’s Inflation Reduction Act, leaving the door wide open for someone else.So, to paraphrase the tech bros, if Trump is going to move fast and break things, then let’s move fast and build things.“Europe can turn this into a window of opportunity to further its edge with the US on clean tech,” says Simone Tagliapietra of the Brussels thinktank Bruegel. He advocates for a decarbonisation bank, completing the single market as urged by Mario Draghi, and issuing new eurobonds.The mantra going forward should be “whatever it takes” to fully replace fossil fuels with renewables – designed in Europe, built in Europe – so that it never spends $350bn to import gas from the US, Russia, or anywhere else.
Alexander Hurst is a Guardian Europe correspondent More
It was another day of chaos on Thursday as markets sank again after a short-lived rally . The optimism brought about by Donald Trump’s retreat on global “reciprocal” tariffs quickly evaporated amid investor fears over ongoing uncertainty. Near the end of a wild week – with the US imposing 145% tariffs on China and Beijing looking like it won’t back down – the markets are weary.Stocks were even unresponsive to news on Thursday morning that the European Union announced it would suspend 25% retaliatory tariffs against US imports and new data showed inflation in the US cooled to 2.4% in March – both would typically be cause for optimism on Wall Street.Former US treasury secretary Janet Yellen called Trump’s economic policies the “worst self-inflicted wound” an administration had ever imposed on a “well-functioning economy”.Trump inflicts more pain on marketsUS stocks fell again on Thursday after a historic rally following Donald Trump’s shock retreat on Wednesday on the hefty tariffs he had just imposed on dozens of countries.The falls came as the president blamed “transition problems” for the market reaction and the sell-off deepened after a White House clarification noted that total tariffs on China had been raised by 145% since Trump took office.Read the full storySupreme court orders US to return wrongly deported manThe supreme court told the Trump administration it must return a Salvadorian man wrongly deported from the United States. It follows an order by a US district judge that the administration “facilitate and effectuate” the return of Kilmar Abrego Garcia, in response to a lawsuit filed by the man and his family challenging the legality of his deportation.Read the full storyTrump escalates crackdown on top US university, reports sayThe Trump administration is considering placing Columbia university under a consent decree, according to a report by the Wall Street Journal, a dramatic escalation in the federal government’s crackdown on the Ivy League institution.Read the full storyUS can deport activist for his beliefs, claims governmentUS secretary of state Marco Rubio has argued Columbia university activist Mahmoud Khalil could be deported for his beliefs alone.Faced with a deadline to submit evidence for its attempt to remove Khalil, the federal government instead submitted a brief memo, signed by Rubio, citing the Trump administration’s authority to expel noncitizens whose presence in the country damages US foreign policy interests. The memo does not allege criminal conduct and argues instead Khalil can be deported for his beliefs.Read the full storyCourt rules noncitizens must register with US governmentA federal judge is allowing the Trump administration to move forward with a requirement that noncitizens in the US must register with the federal government, in a move that could have far-reaching repercussions for immigrants across the country.Read the full storyHouse passes bill on proving citizenship to voteThe US House approved a bill on Thursday that would require people to prove they are citizens when they register to vote, which opponents claim could disenfranchise millions of Americans.The bill, sponsored by the Texas Republican Chip Roy, calls for people who register to vote or update their registration to show documentary proof of citizenship, which could be a passport or birth certificate. While the bill says Real IDs, which have enhanced security standards, could be used if they indicate whether the applicant is a US citizen, these IDs ordinarily do not include that information, and lawful residents who are not citizens and ineligible to vote can still get Real IDs.Read the full storySpeaker muscles through Trump budget frameworkThe House Republican speaker, Mike Johnson, muscled through a multitrillion-dollar budget framework that paves the way for Donald Trump’s “big, beautiful bill”, a day after a rightwing rebellion threatened to sink it.The resolution passed in a 216-214 vote, with just two Republicans – fiscal conservatives Thomas Massie of Kentucky and Victoria Spartz of Indiana – joining all Democrats in opposition.Read the full storyWhat else happened today:
More than 600 international students and recent graduates in the US have had their visas revoked or their legal status changed by the state department, according to data aggregated from around the country.
Almost $4m in federal funding has been stripped from an Ivy League university’s prestigious climate research department because the Trump administration has determined it exposed students and other young people to “climate anxiety”.
Catching up? Here’s what happened on 9 April. More
Cory Singer, co-owner of the homebuilding firm Dolan Design & Build, raced to start construction as quickly as possible in the wake of the Los Angeles wildfires. He was determined to stay ahead of the demand surge he saw coming and eager to help his clients begin to rebuild their lives.The firm broke ground in the Pacific Palisades on Saturday – one of the first companies to do so.But by that time, Singer had a new crisis to contend with: tariffs.Singer, whose firm is currently working on 10 homes in the Palisades, is in talks with clients to place shipping containers on their burned lots and store construction materials there, allowing him to order and stockpile materials in bulk before tariff price increases hit the market.“I’m definitely nervous,” he said.The Trump administration announced, walked back, and continually modified tariff policies in recent weeks, throwing the global stock market into chaos. The tariffs are widely expected to substantially increase construction costs in California and across the country.Singer is already dealing with tariff-related price hikes. One of his tile vendors placed a tariff surcharge on an order on 2 April, the same day the Trump administration announced sweeping tariffs, even though the materials had already been imported. Singer is especially worried about materials like plumbing, tiles and fixtures, which are often imported from China, and he is advising clients to factor in a 10% contingency to their budgets in anticipation of the costs.“If you don’t spend it, great,” he said, “but at least mentally prepare.”Three months after the worst wildfires in Los Angeles’s recent history flattened miles of city blocks and killed 30 people, signs of life are emerging. Insurance payouts have begun arriving. Contractors have plastered streets in Altadena and the Palisades with flyers and signs advertising their services. The Army Corps of Engineers is slowly clearing and flattening lots, replacing the charred and toxic mess of cars, washing machines and chimneys with the blank canvases of empty lots.View image in fullscreenBut homeowners, contractors, architects and developers across fire-ravaged Los Angeles are girding themselves for the tariffs. For homeowners seeking to rebuild, the tariffs add a new layer of stress to the uncertainties of navigating insurance, mortgages, short-term housing and piecing together plans for the future.The Trump administration is currently levying a 10% tariff on most countries, a 25% tariff on steel, aluminum and cars and car parts, and a massive 125% tariff on Chinese goods. The administration on Wednesday retreated on further planned global hikes after news of the tariffs prompted trillions in stock market losses worldwide, but Angelenos remain uncertain about what this means for their homes and plans.In Altadena, a middle-class neighborhood with fewer resources than the wealthy Palisades, the strain is especially acute. Homeowners worry tariffs will hinder their ability to afford rebuilding and exacerbate already widespread issues with underinsurance.“It’s really scary,” said Ken Yapkowitz, a longtime Altadena resident who lost his home and two rental income properties in the Eaton fire.Yapkowitz is waiting to see what his final insurance payouts will be and starting to map out how to rebuild his properties. He had already been factoring in a 25% bump in materials costs before the tariffs were announced, he said, and figured there would be a surge in demand for materials and labor. He expects tariffs to add substantial costs, and wonders if he will be able to rebuild on his lots as planned.Jose Flores, owner of JV Builders & Development, a small business in Pasadena, said many of his Altadena clients want to rebuild. But he worries that tariffs, paired with a painfully slow permitting process and other skyrocketing costs, will cause them to change their minds. He has three clients in the process of drawing up plans with architects, but many others have called him for estimates only to disappear.“By the time people are ready to start construction, I believe the prices are going to be higher,” he said. Flores has noticed the prices of lumber, copper and roofing tick up in recent months. But he can’t afford to stockpile materials, he said, and has no place to store them even if he could. He has no choice but to wait and see what happens.“I think that’s the case for most of us contractors in the area,” Flores said.Following the tariffs’ announcement, the California governor, Gavin Newsom, asked his administration to pursue independent trade relationships with other countries and to explore ways to protect access to construction materials in the wake of the California wildfires. But he did not specify what measures the state could deploy to do that.Flores, the contractor, said he doubted that the governor’s office could actually rein in prices.Newsom’s office did not respond to a request for comment.‘We just don’t know right now’Some residents and business owners are already seeing the tariffs affect wildfire response. Brett Taylor, an Altadena resident who owns a local window and door supplier and who lost his home in the Eaton fire, said his suppliers mostly manufacture domestically, but that many of them source parts from abroad. In late March, he reached out to approximately 10 window vendors to ask whether they would be open to providing package discounts to fire victims. Almost all of them said yes.But before the deals could be finalized, the administration announced tariffs. At least one of Taylor’s vendors walked back their commitment, citing price uncertainty, and Taylor anticipates others will do the same in coming days.View image in fullscreenOthers are tapping personal connections and devising makeshift plans to try to defray costs. James Peddie, an Altadena realtor who lost his home, has been helping develop plans for a group of homeowners hoping to rebuild collectively. He knows from his years in construction that a substantial portion of southern California’s lumber is imported from Canada, and when tariffs were announced, he understood that meant increased costs.Peddie went to high school in Montana, and has friends in the lumber industry there. He also knows a builder who personally went to Oregon to source lumber when prices soared during the rebuilding of Paradise, California, after the devastating 2018 Camp fire.So he called up his high school friends with a question: can you help me source lumber for LA?They were eager to help. They promised to keep their commissions low and to keep him updated on price fluctuations. “They’re people I can trust,” he said. “We can probably get the lumber for a really good deal.”This shift – from purchasing overseas to domestically – is exactly what the administration hopes the tariffs will prompt.But with the rebuilding process still in its earliest phases, and plans and permits far from finalized and approved, it felt premature to put a deposit down and commit to the lumber, Peddie said. Doing so would mean needing to find and pay for long-term storage, as well as betting that the cost of lumber was only going to increase.“Where is it going to be stored? Is it going to be more expensive to ship it in?” he said. “We just don’t know right now.”He estimated it would be seven months before he would be ready to order. It’s anyone’s guess what the tariff landscape – and market – would look like by then. More
US stocks fell again on Thursday after a historic rally following Donald Trump’s shock retreat on Wednesday on the hefty tariffs he had just imposed on dozens of countries.The falls came as the president blamed “transition problems” for the market reaction and the sell-off deepened after a White House clarification noted that total tariffs on China had been raised by 145% since Trump took office.Speaking at the White House, Trump said: “We think we’re in very good shape. We think we’re doing very well. Again there will be a transition cost, transition problems, but in the end it’s going to be a beautiful thing.”The sell-off comes as Democrats continue to react with anger over the sudden retreat that rattled markets, while Republicans praised Trump’s “art of the deal” in action, referencing Trump’s 1987 book.By the end of Thursday, the Dow was down 2.5% after soaring on Wednesday afternoon. The Nasdaq Composite was down more than 4%, after posting its biggest gain in more than two decades on Wednesday, and the S&P 500 down 3.4%.The market seems to be in a state of fatigue after a rollercoaster week. Stocks were even unresponsive to news on Thursday morning that the European Union announced it will suspend 25% retaliatory tariffs against US imports and new data showed inflation in the US cooled to 2.4% in March – both would typically be cause for optimism on Wall Street.On CNN, former US treasury secretary Janet Yellen called Trump’s economic policies the “worst self-inflicted wound” an administration had ever imposed on a “well-functioning economy”.Trump said in an abrupt announcement on Wednesday that he would be implementing a 90-day pause on his tariff plan, and that goods entering the US from most countries would now face a 10% blanket tariff until July, except for Chinese exports, which he said would face tariffs totaling 145% effective immediately – 125% in “reciprocal” tariffs plus 20% already imposed for China’s alleged role in the fentanyl crisis.Republican lawmakers praised the decision to pause the tariffs, with the House speaker, Mike Johnson, stating on social media: “Behold the ‘Art of the Deal.’ President Trump has created leverage, brought MANY countries to the table, and will deliver for American workers, American manufacturers, and America’s future!”Before the pause was announced, a small but growing number of Republican lawmakers and Trump supporters in the business world expressed concerns about the risks of the president’s tariff policy.By Wednesday afternoon, many were praising Trump for the rollback as part of a purported strategy.Bill Ackman, a billionaire hedge fund manager and Trump supporter who advocated for Trump to pause his trade war over the weekend, reacted to the announcement saying that “this was brilliantly executed by @realDonaldTrump. Textbook, Art of the Deal.”The benefit of Trump’s approach, Ackman claimed, “is that we now understand who are our preferred trading partners, and who the problems are. China has shown themselves to be a bad actor. Our counterparties also have a taste of what life is like if they don’t take down their trade barriers. This is the perfect set-up for trade negotiations over the next 90 days.”But some industry leaders criticized the administration’s back-and-forth and tariff decisions.On Thursday, Amazon’s CEO, Andy Jassy, said the company was still waiting to see the impact of the tariffs but warned third-party sellers may “pass that cost on” to consumers.“The effective tariff rate is actually HIGHER with the pause than it was as announced on April 2, due to the tariffs on China,” Diane Swonk, the chief economist of the professional services firm KPMG, wrote on social media. “There will be some diversion through connector countries. However, the effective tariff rate now peaks at 30.5% during the pause. That is worse than our worst case scenarios.”skip past newsletter promotionafter newsletter promotionWhile Republicans and White House officials praised Trump’s decisions, Democratic lawmakers such as Senator Chuck Schumer pushed back. Schumer told his supporters that “this chaos is all a game to Donald Trump”.“He thinks he’s playing Red Light, Green Light with the economy,” Schumer said. “But it is very real for American families.”Some Democrats have made accusations of possible market manipulation.“These constant gyrations in policy provide dangerous opportunities for insider trading,” Senator Adam Schiff said. “Who in the administration knew about Trump’s latest tariff flip-flop ahead of time? Did anyone buy or sell stocks, and profit at the public’s expense? I’m writing to the White House – the public has a right to know.”The New York representative Alexandria Ocasio-Cortez echoed similar concerns, urging any member of Congress who purchased stocks over the last two days to disclose that.“I’ve been hearing some interesting chatter on the floor,” she said. “Disclosure deadline is May 15th. We’re about to learn a few things. It’s time to ban insider trading in Congress.”The Democratic House whip, Katherine Clark, wrote: “Two hours before announcing his tariff pause, Trump told his paid Truth Social subscribers it was ‘a great time to buy’ on the stock market. Corruption is the name of their game.”The Nevada representative Steven Horsford questioned the US trade representative, Jamieson Greer, asking the representative during a committee hearing whether the climbdown was market manipulation.“How is this not market manipulation?” Horsford asked, to which Greer responded: “No.”“If it was always a plan, how is this not market manipulation?” Horsford asked again.“Tariffs are a tool, they can be used in the appropriate way to protect US jobs and small businesses, but that’s not what this does,” Horsford said. “So if it’s not market manipulation, what is it? Who’s benefiting? What billionaire just got richer?” More
It was Donald Trump who blinked first. Never forget that. China is unlikely to overlook its importance. A week after launching an all-out global trade war, the US president paused significant parts of it for 90 days. Having insisted that he would stick with the random tariffs he imposed on most trading nations, Mr Trump suddenly decreed that he would reduce most of them to 10%. It was a major humiliation.Yet 10% is still a significant tariff to bear for nations exporting to the US. This is also only a pause until July, not a withdrawal, so the uncertainty remains. And huge tariffs still remain on China (now hiked to 145%), Canada and Mexico (both 25%), as well as on all US imports of steel, aluminium and cars (also 25%). Mr Trump is now substituting a US-world conflict with a US-China one. The two largest economies in the world – which between them have generated around half of global economic growth in the 21st century – are, in effect, no longer doing business with each other.Even so, this was a necessary step back from the cliff edge. It was enough to trigger a temporary bounceback on stock markets around the globe, though prices slipped back on Thursday and remain much lower than at the start of April. In the week since Mr Trump’s absurd “liberation day”, more than $6tn dollars of value was wiped from stocks on the S&P 500 index. It is a shameful outcome.Mr Trump claims he made the move because more than 75 nations had been willing to negotiate or “kiss my ass”. This is nonsense. He has got nothing out of the tariff war. He has not won. No one has negotiated. Mr Trump is making his usual efforts to claim yet another triumph. The plain truth is that he backed down because he was forced to.That Mr Trump can retreat is good news, as far as it goes. Overall, however, the past week has been an indictment of the president, his policies, his instincts and his behaviour. The pause should on no account be seen as proof that rational business can be done with him. For one thing, this week’s mayhem may easily kick off again as July nears. The White House has merely given itself more time to make some very big calls.Two things appear pivotal in the decision announced on Wednesday. The first was the overheating of the US bond market, subverting the established assumption that dollar bonds will always be a safe asset, and drawing the Federal Reserve to the threshold of intervention. A similar crisis doomed Liz Truss’s economic strategy in the UK in 2022, but the destructive potential of a US bond crisis is far greater. Mr Trump’s tariffs were threatening all-out recession.The second factor was some limited elite domestic pushback. Anxious senators appeared on Fox News (which the president watches) and pressed the case for dialling down. The head of JPMorgan Chase warned about recession. So did a handful of world leaders and some Trump cabinet members in telephone calls.These realities were a brake on Mr Trump this time. It is possible the trauma has left its mark and there will now be no repeat. But there is no case for confidence, let alone for accepting that this outcome had been schemed all along. Even Mr Trump admitted that Americans were “getting yippy”. They had every right to be. So did the markets, along with the rest of the world. Trust disappeared long ago, replaced now by uncertainty. There is no way that this is over. More
If it’s brown, lie down. If it’s black, fight back. If it’s white, say goodnight.The rhyme we learned hiking as a family through Yellowstone national park last summer is meant as a cheery reminder of how not to get eaten, if you meet a bear. Brown bears are best appeased by playing dead; black bears need to know this will hurt them more than it hurts you; and luckily there aren’t any polar bears in Yellowstone, because nothing deters them.Until this week the world remained unsure what kind of bear Donald Trump was. Keir Starmer treated him like a brown bear, dropping to the floor when threatened with tariffs and offering up a trade deal. China saw a black bear, to be met with maximum aggression. Though one day we may have to contemplate the prospect of a polar bear president – one who actually means what he said about invading his neighbours – for now what we actually seem to be facing is a crazy bear. There’s no discernible strategy or pattern here: just untrammelled ego, dragging the global financial system to the brink of meltdown and vaporising his own supporters’ retirement savings for no obvious reason beyond the pleasure of seeing impoverished allies desperately “kissing my ass”. And though this bear has lumbered back into the woods for now, seemingly spooked by a concerted revolt in the bond markets, the damage is done.What is still for the cheerfully news-avoidant just a faintly incomprehensible story about rising and plummeting stock markets will, in coming weeks, start shaping everyday lives for the worse. British businesses who have barely been able to work out if they’re coming or going for the last few weeks will pause big decisions while they try to calculate their losses. Our car and steel industries still face job-destroying higher tariffs, while Trump has talked ominously of new tariffs on pharmaceuticals to come (British drug companies rely heavily on US export markets). Along with all countries that did not retaliate against Trump, we remain saddled with a random 10% tariff on all exports, which could presumably still change on a whim. And if the US keeps up its self-harming tariff on China – now an eye-watering 145%, according to the White House, which is adding Wednesday’s 125% to the pre-existing 20% – then before long it won’t just be a case of prices rising for American shoppers but of trade between them breaking down completely, leaving American shelves empty. All this makes nervous consumers worldwide less inclined to spend and employers less likely to hire or invest, raising the risk of recessions – one reason that on Thursday, the markets fell again. There’s no security for working people in any of this, and vanishingly little prospect of growth. For a Labour government elected to deliver both, that is an existential challenge.You can either be the disrupter or the disrupted, Starmer warned his cabinet in February, rather startlingly for someone whose watchword was caution. His chief of staff, Morgan McSweeney, has however concluded that the new political divide isn’t left v right but “smash the system” v “look like the system and get smashed”. The obvious disruptive influence then was Nigel Farage’s resurgent Reform UK party, not a trade war, but one may now feed the other.Farage has gone very quiet lately about his now toxic friendship with Trump, but his local election message to England’s post-industrial heartlands is a blatantly Trumpian one about the glory days of manufacturing. This week he went to the pub with workers from British Steel’s endangered Scunthorpe plant – though it was Labour ministers who put in the unsung hours on a deal to save jobs there – before visiting a long-closed colliery to explain that he always thought the miners were betrayed. (Let’s just say that must have been an unusual view in the City, where at the time of the miners’ strike, Farage was working as a commodities trader.) It’s preposterous – Reform’s blend of tax cuts for the rich and dead-end nostalgia for everyone else would do nothing to revive former coal and steel communities – but Trump posing as the rust belt’s saviour seemed preposterous once, too. Farage knows where the electoral sweet spot is, in the seats where Reform is nipping at Labour heels: tacking right on issues such as immigration but left on economics. And while Starmer’s government is quick to compete with Reform on the former, it is more wary of the latter, even though ageing “red wall” voters now complain in focus groups of markets being rigged against them in ways that uncannily echo the disenchanted, Green-leaning southern young.But if Trump is really killing growth, meaning there will be no generous rising tide to lift public services and living standards, the only remaining options are either redistribution or accepting inexorable decline. Time, in short, to pick some enemies; to disrupt something before getting disrupted.Which markets genuinely are stacked against consumers? Who is making profits that can’t be justified? If Trump really has broken the old model, could it be built back better? This can’t mean uncosted, utopian leftwing populism but serious-minded, rigorous reforms that demonstrably put money back in ordinary pockets.What voters seem to want, the American data scientist David Shor and the writer Ezra Klein argued recently in a podcast on the confused desires underpinning American politics, is an “angry moderate”: someone who sounds as furious as they are about the state of things without seeming too frighteningly radical. There is plenty a British angry moderate could attack: from the ongoing debacle of Thames Water to the bafflingly opaque “surge pricing” now operated by everyone from concert-ticket vendors to pubs and hotels; from inequities in the tax system, or the way linking electricity prices to gas keeps them frustratingly high, to the outsourcing of social services that has left private equity firms running children’s homes and nursing homes for profit. (Not entirely alien territory to Rachel Reeves, who once told me that investigating the collapse of the outsourcing company Carillion as a backbencher changed her politics, and who has long embraced the idea of an activist state working to make life less precarious.) But whatever form it takes, offering people “shelter … from the storm”, as Starmer rightly has this week, should mean more than corporate bailouts. If not, anger with Trump could easily morph into anger with domestic governments’ inability to protect their own people from the fallout.He won’t be president for ever. But the mess he’ll leave behind, the jobs lost, the dreams smashed, the neighbourhoods spiralling downwards? That’s the polar bear, the thing that really eats governments. Fight, or say goodnight.
Gaby Hinsliff is a Guardian columnist
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Although environmental considerations will not have been a motivation for Donald Trump, it is worth examining whether a comprehensive revision of global trade tariffs – notwithstanding the significant transitional economic and human costs – could generate substantial environmental benefits (Here’s one key thing you should know about Trump’s shock to the world economy: it could work, 7 April).The prevailing model of liberalised global trade facilitates the transoceanic movement of consumer goods, often to countries that possess the capacity to manufacture equivalent products domestically. The associated carbon emissions from maritime and air transport are considerable, particularly given the volume of low-cost, frequently low-durability goods entering developed markets.Restricting free trade to essential imports – goods that cannot be manufactured or grown locally – would materially reduce transport-related emissions. Additional benefits might include enhanced food system resilience, improved biosecurity and increased regulatory autonomy over quality and safety standards.Thus, albeit unintentionally, President Trump’s trade policies could contribute to environmental objectives that are traditionally pursued by other means.Patrick CosgroveChapel Lawn, Shropshire Donald Trump’s tariffs – why the fuss? As an ordinary UK citizen I see only upsides. First, it’s the Americans paying the tariffs, not us. The resulting fall in the price of oil and the value of the dollar should reduce the cost of my petrol. As Americans switch to bourbon and Californian wine, the price of my scotch whisky and French wine should come down. If other countries send more of their goods to the UK to avoid the tariffs, this will force UK producers to become more competitive to the benefit of ordinary people like me.I believe that US citizens rich enough to buy Range Rovers and the like will not balk at paying a bit more, especially as the US equivalents are so clunky. If the steel tariff forces us to nationalise British Steel, good. As for the global economic system, this is structured for the benefit of big corporations and shareholders. Perhaps it is overdue for a change.Christopher WoodageCamberley, Surrey I have long believed that the way we choose to spend our money is a political act. With an overcautious Labour government in power, spending power remains an important act of resistance. Now more than ever, I urge readers to think carefully about what they purchase and, in particular, to boycott American goods. I have lived happily without an Amazon product for over 15 years, for instance, and with the added pleasure of knowing that my spending in local shops is benefiting the local economy. If we can’t rely on our government to stand firm, let’s do it for ourselves.Prof Mark DoelSheffield “I am telling you, these countries are calling us up, kissing my ass,” Trump said during a speech at the National Republican Congressional Committee dinner in Washington on Tuesday evening. Please let the UK not be one of the countries. Surely we have more self-respect than that.Ann ClewerCanterbury Looking at recent events, it seems Donald Trump is the most successful anti-capitalist since Lenin.Keith FlettTottenham, London More
