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    Trump policies could fuel illicit drug trade despite vow to curb fentanyl

    Donald Trump’s policies could leave the US more vulnerable to dangerous synthetic drug trafficking from abroad, even as the administration has vowed to stop fentanyl from entering the country, former government officials say.This week, Trump imposed tariffs on Mexico, Canada and China, ostensibly as a tactic to stem the flow of illicit drugs into the US.Jim Crotty, the former Drug Enforcement Administration deputy chief of staff, called the approach “coercive” and said it has the potential to backfire. Federal funding cuts could also leave US borders more insecure, according to Enrique Roig, a former Department of State official who oversaw Bureau of International Narcotics and Law Enforcement Affairs (INL) portfolios and who has also worked with USAid.US overdose deaths began to decrease significantly for the first time in 2023, after rising for decades. But Crotty notes this progress is fragile.“We’re seeing this decrease in overdose deaths and everyone’s still trying to suss out exactly why. I don’t think now is the time that we want to stop any of those existing efforts because we know that at least some, or a combination of them, have been working,” Crotty said.Roig agreed: “All this has to be working together in concert.”Federal funding cuts could put the US behind when it comes to drug detection technology. The global drug supply has increasingly shifted towards highly potent synthetic substances such as fentanyl and newly emerging nitazenes. Often, these drugs arrive in the US in the form of powders or precursor chemicals that take up minimal space, and are difficult to detect by odor.Roig says advanced drug detection technology is therefore vital, but Trump’s federal funding and staff cuts mean less money for the latest technology and equipment, and fewer people to install it.Ram Ben Tzion, the CEO of Publican, which provides drug detection technology to government agencies outside the US, says cutting-edge methods detect suspicious shipments even before they get to the border. Publican uses large language models to flag shipments that “don’t make sense” and are likely to contain illicit substances. For example, his company once found fentanyl precursors in a shipment to a residential address in California. The shipment claimed to contain fashion items, but came from a Chinese construction company.Similarly, the UN Container Control Programme, which has historically received state department funding, helps authorities flag suspicious shipments before they reach their destination. This program has helped authorities around the world seize hundreds of tonnes of illicit drugs each year. Roig says federal funding cuts have stalled CCP’s implementation in Mexico, even though it’s a primary security target for Trump.Some of Trump’s measures are more showy than they are constructive, Crotty and Roig said. The designation of certain cartels as terrorist organizations “doesn’t do much of anything”.It’s symbolic, says Crotty, given that they were already designated transnational criminal organizations. Other measures are a harmful waste of money, according to Roig. Just this week, for instance, the administration suspended the use of military planes to deport immigrants, including those accused of drug related crimes, due to the extravagant cost.Roig says this measure was completely unnecessary, as “Ice already has its own fleet of airplanes” that are much cheaper.Crotty is concerned the aggression could backfire.“The Mexican people are protective of their culture and their sovereignty. If you push them too hard, could it do more harm than good?” he said.Mexico sent 10,000 troops to its US border to cooperate with Trump’s demands, but Crotty says “while in a vacuum that sounds like a whole lot”, Mexico’s border is vast, and drugs are often transported in “minute quantities”. So, the US needs Mexico’s cooperation when it comes to intelligence – otherwise “you’re not going to find the proverbial needle in the haystack”, Crotty said.Roig said that “it’s important that we do this in cooperation with Mexico and not alienate them,” adding that Trump’s aggressive stance toward China could harm the Biden administration’s progress negotiating with the Chinese government to cooperate on counternarcotics initiatives.Massive USAid cuts also threaten programs intended to curb the “root causes” of the drug trade, says Roig. Some USAid-funded programs simultaneously tackled drug smuggling and another one of Trump’s key issues, migration – as cartels that traffic drugs also traffic people.When Roig worked with USAid, he says he spent a lot of time on “community violence prevention efforts”, including programs to keep young people from joining international crime organizations and cartels. (Notably, the Trump administration has purged many websites describing USAid programs.)If the drug supply does increase, it could mean US overdoses begin to rise again as well. But Crotty is worried we won’t even know if that happens. Layoffs at the Centers for Disease Control and Prevention could leave fewer people to track overdose deaths, and Trump’s attack on government data sharing could keep everyone in the dark.“​​ CDC maintains the overdose death dashboard. A lot of that stuff is data driven. Are they still going to have access to the data?” he said.The Guardian contacted INL and UNODC for comment. More

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    Trump administration briefing: Trump changes tack on tariffs – again – as US plans to close consulates

    Donald Trump has performed another reversal on tariffs, delaying duties on many goods from Canada and Mexico again. Trump said the reversal has “nothing to do” with turbulence in the stock market in recent days, as investors weighed his economic plans. On Wall Street, the S&P 500 fell 1.8% on Thursday. “I’m not even looking at the market,” he claimed.It was also a day where the focus fell on the power wielded by Elon Musk and the president’s plans for US consulates in Europe. Trump shelves Canada-Mexico tariffs – for a timeDonald Trump pulled back from his trade war with Canada and Mexico on Thursday, temporarily delaying tariffs on many goods from the two countries once again. Two days after imposing sweeping tariffs on all imports from his country’s closest trading partners, the US president announced that duties on a wide range of products would be shelved until April.Read the full storyElon Musk says he isn’t to blame for mass firings of federal workersElon Musk is telling Republican lawmakers in private meetings that he is not to blame for the mass firings of federal workers that are causing uproar across the country, while Donald Trump reportedly told his cabinet secretaries on Thursday that they are ultimately in charge of hiring and firings at their agencies – not billionaire aide Musk.The men appeared to be making parallel efforts to distance Musk from radical job slashing made over the last two months. This despite the tech entrepreneur boasting about cuts, recommending the US “delete entire agencies” and taking questions on the issue alongside the US president, then wielding a chainsaw at an event to symbolize his efforts – all amid legal challenges and skepticism from experts.Trump said on Thursday he has instructed department secretaries to work with Doge but to “be very precise” about which workers will stay or go, using a “scalpel rather than a hatchet”.Read the full storyUS plans to close European consulates and cut state department workforceThe US state department is preparing to shut down a number of consulates that are mainly in western Europe in the coming months and looking to reduce its workforce globally, multiple US officials said on Thursday.The state department is also looking into potentially merging a number of its expert bureaus at its headquarters in Washington that are working in areas such as human rights, refugees, global criminal justice, women’s issues and efforts to counter human trafficking, the officials said.Reuters reported last month that US missions around the world had been asked to look into reducing US and locally employed staff by at least 10% as Donald Trump and his billionaire aide Elon Musk have unleashed an unprecedented cost-cutting effort across the US federal workforce.Read the full story‘Not a king’: Trump is told firing of labor chief is illegalA federal court ruled that Trump’s abrupt firing of a former senior official at the top US labor watchdog was illegal, and ordered that she be reinstated. Gwynne Wilcox was the first member of the National Labor Relations Board to be removed by a US president since the board’s inception in 1935.The framers of the US constitution “made clear that no one in our system of government was meant to be king – the president included – and not just in name only”, the judge Beryl A Howell, wrote in the ruling.Read the full storyMusk and Texas governor celebrate after worker fired over pronounsThe Texas governor, Greg Abbott, and, later, Elon Musk showed support on Wednesday for the firing of a state employee who refused to remove his pronouns from his work email signature. Frank Zamora, 31, was let go from his job as a program manager at the Texas real estate commission.Abbott celebrated the move on X. Musk then replied to Abbott’s post with two fire emojis.Read the full storyUS attorney threatens top law school over DEIA Trump-appointed US attorney has told Georgetown – one of the country’s top law schools – to immediately end diversity, equity and inclusion (DEI) efforts, warning that his justice department office will not hire students or other affiliates associated with a university that utilizes DEI.In an extraordinary letter sent to the dean, the recently appointed interim US attorney for the District of Columbia, Ed Martin, said he was investigating the academic institution after it had come to his “attention reliably” that they were teaching and promoting DEI.Read the full storyDoJ investigating California universities over alleged antisemitismThe US Department of Justice is investigating the University of California system for possible antisemitic discrimination after demonstrations against Israel’s war in Gaza took place on campuses last year.Read the full storyDemocrats join in censure of Al GreenThe House voted on Thursday to censure Al Green for disrupting Trump’s joint session address, with a handful of Democrats voting to condemn the Democratic Texas representative along with Republicans.The House voted 224-198, with 10 Democrats voting in favor of the censure, which accuses Green of a “breach of proper conduct”.Read the full storyCanadians protest against US toxic wasteThe proposed expansion of a Quebec landfill that accepts hazardous waste from the United States has ignited a turf war between the Quebec provincial government and local leaders, who say they oppose putting US trash into a local peat bog. Local leaders are protesting against the move – saying the province is capitulating to a US company in the midst of a tariff war between Canada and the United States.Read the full storySmall US agency stands up to MuskMembers of Elon Musk’s so-called “department of government efficiency” (Doge) unit were barred from entering a small, independent federal agency promoting economic development in Africa on Wednesday after a tense standoff with federal staff they had been sent to fire.Workers at the US African Development Foundation (USADF), which Donald Trump has ordered to be closed, refused to allow Doge operatives to enter after they arrived at its Washington headquarters.Read the full storyWhat else happened today:

    In an escalation of his pressure campaign, Trump said the US will not fight for Nato allies who don’t spend enough on their own defense. “I think it’s common sense,” the president said. “They don’t pay, I’m not going to defend them.”

    The state department is hunting for evidence that foreign students who express support for Palestinians under Israeli occupation while studying in the US are “pro-Hamas”, and can have their visas revoked, based on an AI review of their social media accounts, Axios reports.

    Trump told reporters in the Oval Office that he will “probably” extend TikTok’s deadline to find a US buyer or face a ban.
    Catching up? Here’s what happened on 5 March. More

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    Cheap goods ‘not essence of American dream’, Trump official says amid tariff price fears

    Buying cheap products is “not the essence of the American dream”, Donald Trump’s top economic official has declared, amid warnings that the US president’s trade wars risk increasing prices.The US treasury secretary, Scott Bessent, defended the new administration’s aggressive trade strategy on Thursday, two days after it imposed sweeping tariffs on Canada and Mexico and hiked duties on China.Top retail CEOs have cautioned the move would swiftly lead to higher prices for US consumers. Trump, too, has acknowledged there would be “a little disturbance” as a result.During an appearance at the Economic Club of New York on Thursday, Bessent conceded there could be what he referred to as “a one-time price adjustment” as a result of Trump’s tariffs.“Access to cheap goods is not the essence of the American dream,” he said. The American dream was “the concept that any citizen can achieve prosperity, upward mobility, economic security”, he added. “For too long, designers of multilateral trade deals have lost sight of this.”It comes a few days after Bessent said he was “laser-focused” on high prices in the US. At the weekend, he announced the treasury would recruit an “affordability czar” to help address the issue.“I think President Trump said that he’ll own the economy in six or 12 months, but I can tell you that we are working to get these prices down every day,” Bessent told Face the Nation on CBS.The US president has already watered down key parts of this week’s US trade onslaught, suspending tariffs on Mexico and Canada for carmakers on Wednesday, before temporarily halting tariffs on many other goods from the two countries on Thursday.Trump has repeatedly pledged to rapidly bring down prices for consumers, and declared during a joint address to Congress on Tuesday evening that he was “fighting every day” to “make America affordable again”. More

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    Trump temporarily spares carmakers from US tariffs on goods from Canada and Mexico

    Donald Trump has temporarily spared carmakers from sweeping US tariffs on goods from Canada and Mexico, one day after an economic strike on the US’s two biggest trading partners sparked warnings of widespread price increases and disruption.The US president extended his aggressive trade strategy at midnight on Tuesday by targeting the country’s two closest neighbors with duties of 25%.US retail giants predicted that prices were “highly likely” to start rising on store shelves almost immediately, raising questions about Trump’s promises to “make America affordable again” after years of heightened inflation.After a call with top executives at General Motors, Ford and Stellantis, however, Trump approved a one-month exemption from tariffs on “any autos coming through” the US, Mexico and Canada, the White House press secretary, Karoline Leavitt, announced on Wednesday.The exemption has been granted “at the request of the companies”, Leavitt told reporters, “so they are not at an economic disadvantage”.While Trump has claimed tariffs will embolden US industry by forcing global firms to build factories in the US, Ford CEO Jim Farley publicly cautioned last month that imposing steep tariffs on Canada and Mexico could “blow a hole” in the country’s auto industry.Shares in large carmakers rose sharply, with GM up 7.2%, Ford up 5.8% and Stellantis up 9% in New York. The benchmark S&P 500 increased 1.1% on Wall Street.A separate call between Trump and Justin Trudeau, the Canadian prime minister, did not lead to any larger breakthrough, however. Trudeau “largely caused the problems we have with them because of his Weak Border Policies”, Trump declared on his Truth Social platform after they spoke. “These Policies are responsible for the death of many people!”Trudeau insisted there had been improvements at the border, the US president claimed, adding that he told him this was “not good enough”.During Trump’s joint address to Congress on Tuesday evening, he acknowledged that tariffs would cause disruption. There will be “a little disturbance, but we’re OK with that”, he said.He blamed cost of living challenges on his predecessor, Joe Biden, from whom he claimed to have inherited “an economic catastrophe and an inflation nightmare”.The US economy has, in fact, remained resilient in recent years, and inflation has fallen dramatically from its peak – at the highest level in a generation – three years ago.“Among my very highest priorities is to rescue our economy and get dramatic and immediate relief to working families,” said Trump. “As president, I am fighting every day to reverse this damage and make America affordable again.”skip past newsletter promotionafter newsletter promotionTrump spoke on Wednesday with Trudeau. “Even though you’re a very smart guy, this is a very dumb thing to do,” Trudeau told Trump publicly after the US imposed tariffs this week.Trump had initially pledged to target Canada and Mexico with tariffs on his first day back in office. Upon his return, however, he said he was considering imposing the tariffs at the start of February. Last month, he offered Canada and Mexico a one-month delay at the 11th hour.Trump and his allies claim that higher tariffs on US imports from across the world will help “Make America great again”, by enabling it to obtain political and economic concessions from allies and rivals on the global stage.But businesses, both inside the US and worldwide, have warned of widespread disruption if the Trump administration pushes ahead with this strategy.Since winning November’s presidential election, the president has focused on China, Canada and Mexico, threatening the three markets with steep duties on their exports unless they reduced the “unacceptable” levels of illegal drugs crossing into the US. More

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    Democrats are acting sedate and silent during Trump’s worst excesses | Moira Donegan

    What was the point of Donald Trump’s address to Congress on Tuesday night? The annual speech – called the “State of the Union” address in every year except the one just after the president’s ascent to office – has long been a somewhat outdated bit of political theater, an event light on policy specifics and heavy on messaging in an era in which political messaging’s most effective venues have long since moved online.It’s perhaps even less clear what a speech to Congress is supposed to mean for this president, who has proven himself so indifferent to constitutional limits on his power – or for this Congress, which has shown itself so willing to abdicate its own constitutional responsibilities. It seems, like so many of the formalities of American politics do now, a bit like a phantom limb: something that Americans keep feeling for long after it has been excised. How long will it be, one wonders, until everyone stops bothering to go through the motions?But Trump, for one, seems to delight in any opportunity to make a spectacle of himself. On Tuesday, with a captive audience of all of Congress, many military leaders, about half of the US supreme court, and large swaths of the American public, he set about indulging all of his worst whims and lowest impulses. He repeatedly and extensively insulted his predecessor, the former president Joe Biden, by name and in strong terms. He relitigated old grievances, from his many prosecutions to his annoyance that not everyone likes him. He threatened the sovereignty of Panama and Greenland, went into extended discussions of the careers of various transgender athletes, boasted of ending “the tyranny of diversity, equity and inclusion” and removing “the poison of critical race theory”, and reminded his audience that he had renamed the Gulf of Mexico the “Gulf of America”. Occasionally, the gathered Republicans in the crowd would burst into grunting chants of “USA! USA!” It was worse than merely vulgar. It was stupid.Trump boasted of the rapid pursuit of his agenda in the weeks since he returned to power, declaring that the US was entering its “greatest, most successful era” and that “our country is on the verge of a comeback the likes of which the world has never seen, perhaps never will see”. In fact, the country is on the verge of an economic recession. Thousands of federal workers have been laid off, and Trump’s hefty tariffs on the US’s largest trading partners – namely Canada, Mexico and China – sent the stock market into a freefall earlier that day. In the past, Trump has got cold feet, and backed off his tariff threats. On stage in the House chamber, he doubled down on them, declaring that he would pursue his trade wars, and acknowledging: “There will be a little disturbance.”Trump spoke intensely and at length about his culture war grievances, touting his executive orders declaring English to be the United States’ official language and that the federal government would recognize “only two genders”. “Our country will be woke no longer,” he said.He also touted his record on immigration, boasting of his administration’s mass deportation plans and the decreased number of migrants and asylum seekers at the southern border. He dwelt at length on stories of violence by undocumented immigrants, pointing to the families of murdered Americans in the crowd and describing undocumented people as “savages”. Alluding to a fringe legal theory that could be deployed to support his unconstitutional effort to end birthright citizenship, he referred to the immigrant population as an “occupation”, and cast his own mass deportation effort as something like the expulsion of an invading army – which sounds a lot more noble than the chaotic and brutal humiliations and human rights abuses that have actually taken place as a part of Trump’s deportation effort.In a section on economic issues, he blamed Biden, specifically, for the price of eggs, which have soared in some places to nearly $20 a dozen. (According to reporting from NPR, some of Trump’s advisers have asked him to talk more about egg prices, which were a repeated talking point during his campaign but which he has mentioned rarely since taking office, though prices continue to climb.) He also repeated false claims by Elon Musk’s extra-constitutional government-slashing group, the “department of government efficiency”, that Musk’s band of sycophantic teenagers who are leading the decimation of government services have found “hundreds of billions of dollars in fraud and waste” in Musk-targeted programs, such as social security. They have not.In fact, he talked about Biden a lot. At times, when he seemed to get distracted or lose his place in the speech, Trump appeared to insert insults towards Biden almost as filler. “And think of where we were with Joe Biden,” he said, in one such non-sequitur. “Biden took us very low, the lowest we have ever been.” Other digressions included complaints about his own various grievances and mistreatment. “Nobody gets treated worse than I do online, nobody,” he said once, after a brief discussion of a bill to combat revenge porn.Where were the Democrats during all this? Mostly, they were quiet. A few high-profile Democratic leaders, like Alexandria Ocasio-Cortez and the senator Patty Murray, skipped the speech. Others stayed and sat, sedate. Reportedly, word had gone out from Democratic leadership that party members should have a “dignified” presence at the speech, neither seizing the spotlight nor protesting against Trump out loud. The result was underwhelming.Democrats, who have told their voters that Trump represents a threat to democracy, sat silently, holding up ping-pong paddles printed with the word “false”. In an apparent nod to women’s eroded rights, some of them wore pink. Trump, for his part, used their silent presence to his advantage, turning them into props. Even if he cured a terrible disease, he jeered at the Democrats: “They will not stand, they will not jeer, they will not clap.” In fact, Trump has frozen virtually all federal funding of research into those terrible diseases, like cancer and Alzheimer’s, that American scientists were once working to cure. An opposition worth the name could have pointed that out; the one we have raised their ping-pong paddles a little higher.Trump is not the figure he used to be. He no longer seems to be quite in control of his own administration: he has delegated most spending policy to Musk, and has busied himself instead merely with turning the federal law enforcement agencies, such as the FBI and the broader justice department, into instruments of his petty revenge. He’s not funny any more. But he is also more comfortable in power: even less deferential to formality, even less reverent towards his office, even more inclined to turn the presidency into what was always his greatest passion, a TV show.In Trump’s hands, an old State of the Union convention – pointing out citizens who had been brought to Congress as special guests – was given a new twist: Trump set the people up for surprises. One child, a 13-year-old aspiring police officer with cancer, was gifted with an honorary membership in the Secret Service; the cameras on him, his sunken eyes widened with surprise. A teenager who aspired to go to West Point stood up to wave to the crowd, and was told by Trump himself that he’d gotten in; his jaw momentarily hung open. The genre was the gameshow, the carnivalesque kind where nobodies see if they can catch some luck amid the random dispensation of gifts by the glamorous and benevolent host. Think of Oprah, in her decadent generosity, yelling: “You get a car!” In these moments, Trump seemed to be having fun. At least somebody is.

    Moira Donegan is a Guardian US columnist More

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    ‘Resist’ shirts and ‘a little disturbance’: key takeaways from Trump’s Congress speech

    Donald Trump delivered a divisive, falsehood-laden speech to a joint session of Congress on Tuesday, touting the successes of his first weeks back in office even as his tariff policies have rattled global markets and his criticism of Ukraine has stoked backlash among European allies.Addressing lawmakers for roughly an hour and a half in the longest such speech to a joint session, the president’s sweeping proclamations and biting attacks on Joe Biden prompted many Democrats to walk out of the House chamber as Republicans offered Trump one standing ovation after another.Here are the key takeaways from Trump’s address to Congress:1. Democrats voiced their discontent, with one House member even being removed from the chamberAs Trump kicked off his speech, he boasted about his electoral victory over Kamala Harris in November, describing his win as “a mandate like has not been seen in many decades”. Trump won the popular vote by 1.5 points last year, whereas Biden won it by 4.5 points in 2020. Trump’s electoral college vote count of 312 surpassed Biden’s vote count of 306 in 2020, but Barack Obama secured 332 electoral votes in 2012.Trump’s comment struck a nerve with with Representative Al Green, a Democrat of Texas, who began shouting at the president. “You don’t have a mandate,” waving his cane as he spoke.The Republican speaker of the House, Mike Johnson, then warned Green to “uphold and maintain decorum”. When Green continued shouting, Johnson instructed the sergeant at arms to remove him from the chamber.More Democrats voluntarily walked out of Trump’s speech as it went on, with some of them wearing black shirts bearing the word “resist”. Others displayed panels that read “false” and “save Medicaid” as Trump spoke.2. Trump doubled down on his divisive agenda and mocked BidenEchoing some of his most controversial rhetoric on the campaign trail, Trump warned about the dangers of “transgender ideology” and declared: “Our country will be woke no longer.”Trump repeatedly attacked his predecessor, labeling Joe Biden “the worst president in American history”. When Trump spotted Senator Elizabeth Warren, a Democrat of Massachusetts, in the crowd, he again deployed his derogatory nickname of “Pocahontas” against her.Trump also applauded the work of Elon Musk and his so-called “department of government efficiency” (Doge), even as the billionaire’s efforts have sparked protests across the country amid layoffs of federal workers.“He’s working very hard. He didn’t need this. He didn’t need this,” Trump said of Musk. Pointing to Democrats in the audience, Trump added: “Everybody here, even this side, appreciates it. I believe they just don’t want to admit that.”3. Trump downplayed the risks of his tariffs despite warning signs in the marketsOne of the most noteworthy moments came when the president defended his trade agenda, just hours after Canada and China announced retaliatory measures after Trump moved forward with heightened tariffs against the two countries and Mexico.“Tariffs are about making America rich again and making America great again, and it’s happening, and it will happen rather quickly,” Trump said. “There’ll be a little disturbance, but we’re OK with that.”Trump’s escalating trade war has already contributed to wiping out all of the gains since election day for the S&P 500, and US retail giants have warned consumers to brace for price hikes because of the tariffs on Mexican imports.4. Trump called for an end to the war in Ukraine after his spat with ZelenskyyJust days after he and the Ukrainian president, Volodymyr Zelenskyy, exchanged heated barbs in the Oval Office, Trump reiterated his desire to bring about an end to the war.Trump said he received a letter from Zelenskyy earlier on Tuesday, which seemed to align with the Ukrainian leader’s public statement that he and his team “stand ready to work under President Trump’s strong leadership to get a peace that lasts”.“I appreciate that he sent this letter,” Trump said. “Simultaneously we’ve had serious discussions with Russia and have received strong signals that they are ready for peace.”5. Trump repeated thoroughly debunked claimsTrump shared claims about the economy, social security and foreign assistance that have already been fact-checked and found to be false.The president claimed to have inherited “an economic catastrophe and an inflation nightmare” from the Biden administration. When Biden left office in January, inflation had fallen steeply from its peak in June 2022, and real gross domestic product consistently exceeded expectations in 2023 and 2024.Trump also repeated Musk’s incorrect claims that millions of dead Americans continue to receive social security benefits, pointing to the fact that at least one alleged recipient appeared to be 150 years old. But that data point reflects a well known flaw in the social security administration’s system in that it does not accurately track death records. A 2015 report found that only 13 people who had reached the age of 112 were receiving social security payments.6. Trump called for repealing a bipartisan bill signed by BidenRepublicans offered Trump repeated standing ovations throughout his address, even as the president called for repealing a bill that a number of them supported.“Your Chips Act is a horrible, horrible thing,” Trump said. “You should get rid of the Chip[s] Act, and whatever is leftover, Mr Speaker, you should use it to reduce debt or any other reason you want to,” Trump said.Signed into law by Biden in 2022, the Chips and Science Act has spurred investment in new semiconductor manufacturing sites in the US, and the bill was supported by 17 Senate Republicans and 24 House Republicans. And yet, Johnson and fellow Republicans still stood to applaud the suggestion. More

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    Tariffs can help US workers. But Trump’s doing them all wrong | Dustin Guastella

    In the run-up to the 2024 election, a lot of people were ringing alarms about Donald Trump’s tariffs. Kamala Harris called Trump’s policies a “tax on the American people” and warned of sky-high prices. According to the Nobel prize-winning economist Joseph Stiglitz, they are “very bad for America and for the world”. His fellow Nobel laureate Paul Krugman called them “small, ugly, and stupid”. More recently, the whirlwind tariff drama of the past two months – first a 25% tariff on Mexico and Canada, then a 30-day “pause” on that policy, a plan to raise tariffs on steel, aluminum and agricultural goods, plus an across the board tariff hike on China – has generated yet more frenzied debate about the danger of tariffs.Observers aren’t wrong to criticize the US president’s policies. His proposed tariffs seem unlikely to improve what ails the US economy. Worse, applying tariffs as broadly as he’s proposed, and without any supplementary industrial strategy, does risk needlessly raising prices while acting like a big corporate giveaway. Yet, despite what elite economists say, tariffs can be sound, and progressive, economic policy.In fact, liberals might be surprised to learn that during his administration Joe Biden actually raised the highest tariffs in recent American history: a 100% tariff on Chinese electric vehicles. Why? Because tariffs work.Tariffs are, simply put, taxes on certain imported goods, paid by the importer. The goal is to make foreign products more expensive than their Made-In-USA counterparts. This is why people refer to tariffs as “walls” that help “protect” domestic industry from global competition. Right now, China quickly and efficiently produces fleets of electric vehicles that are – thanks to the low cost of Chinese labor – a lot cheaper than the EVs made in the United States. Without tariffs, it would be impossible for US-made models to compete. Since making electric cars was a big goal for Biden, his administration raised an eye-watering tariff that would double the price of any Chinese-made import.The EV example is useful because it demonstrates the difference between Biden’s tariff policies and Trump’s.Trump has, for the most part, not focused on raising tariffs on particular imported goods but instead on all goods coming from certain countries. Mexico and Canada face across-the-board tariffs; China was already facing 10% tariffs, doubling to 20%. But raising the prices of all products from these countries doesn’t help develop any particular line of US manufacturing. Tariffs like these are both too broad and too small to make a positive impact. A 20% tariff on all Chinese goods might make it more expensive for Americans to continue to buy certain things from China. But nothing in that policy encourages Americans to buy American-made products; they might just as well find a Vietnamese supplier to avoid the tariff while continuing to reap the benefits of cheap labor. Moreover, it’s possible that some Chinese manufacturers will simply eat the additional costs and sell their goods at slightly slimmer profit margins. Or, equally likely, they will try to avoid the tariffs by having other companies assemble their products in neighboring countries before sending them to the US. As is, Trump’s country-based tariffs seem more like a geopolitical tool than an economic one. Frankly, they don’t make much sense if the goal is to bring factories home.Trump’s steel and aluminum tariffs are closer to the mark. By making all steel imports (regardless of national origin) subject to the same tariff, the policy could succeed in making US steel comparatively cheaper for domestic buyers.View image in fullscreenYet even this wouldn’t make US steel bigger or better, or make its production more efficient. Nor would it necessarily raise the wages of steel workers. Pure and simple protectionism will benefit existing US steel manufacturers, but no one much beyond that. Without the government stepping in to develop new manufacturing – encouraging the adoption of the latest techniques to make a superior product, actively building new demand for American steel, or providing social guarantees for steel workers – tariffs alone risk protecting a sick industry without much upside.So what would a labor-forward tariff program look like? It would combine tariffs with big investments in infrastructure to help steer industry, and the country, into better economic health.For steel, such a fix isn’t hard to imagine. The US benefits from being a continental-sized country, with hundreds of thousands of bridges, school buildings, libraries, miles of rail and highway. All of those things are made with steel. And all of them are falling apart. Major new investments in infrastructure upgrades would provide the tariff-protected steel industry the new demand needed to grow, and provide the requisite scale for industrial dynamism.In exchange, steel firms should be required to provide family-sustaining wages and benefits, and promise to stay neutral in union elections. Not only this, but the government should have some say in actually directing the production process. New steel plants should be built in places that need jobs, not isolated tax-free industrial parks, but in the very same areas that were obliterated by deindustrialization. That is, production should be directed, first and foremost, toward public use and social ends.Some might wonder: why bother with such an expensive experiment?Manufacturing is still a huge part of the US economy and it is among the only sectors that consistently provides high wages for a large base of workers. Protecting that industrial foundation is essential not only for those workers, but for the health of other sectors too. When a factory closes, it’s not just the high-wage blue-collar workers who are thrown out of jobs. So are all the middle-income truck drivers who deliver the goods. And all the high-skilled mechanics who fix the machines. Not to mention the servers and cooks who staff now empty local restaurants. The only businesses that grow in the wake of a factory closing are those related to opioids and alcohol.Since Nafta was signed, tens of thousands of factories have closed in the US. Millions of largely union jobs have been lost. This fact alone explains so much of the populist revolt against globalization. And while it’s unlikely that we could ever return to the industrial output of 1946, is it that hard to imagine returning to 1994? If Pearl Jam is still making albums, can’t the US still make steel?Rebuilding our manufacturing capacity will be a big part of building a better country. And tariffs – deployed wisely with big investments – are an indispensable tool for doing so.

    Dustin Guastella is a research associate at the Center for Working Class Politics and the director of operations for Teamsters Local 623 More

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    China and Canada retaliate after Trump trade tariffs come into effect

    China and Canada unveiled retaliatory measures against the US after Donald Trump imposed his sweeping tariffs plan at midnight US time, despite warnings it could spark an escalating trade war.US tariffs have come into force of 25% against goods from Canada and Mexico, the US’s two biggest trading partners, and 20% tariffs against China – doubling the levy on China from last month.The duties will affect more than $918bn-worth (£722bn) of US imports from Canada and Mexico.China on Tuesday said it would impose fresh tariffs on a range of agricultural imports from the US next week. Its finance ministry said additional 15% tariffs would be imposed on chicken, wheat, corn and cotton, with further 10% tariffs on sorghum, soya beans, pork, beef, aquatic products, fruits, vegetables and dairy products.The Canadian prime minister, Justin Trudeau, said Ottawa would respond with immediate 25% tariffs on C$30bn-worth ($20.7bn) of US imports. He said previously that Canada would target US beer, wine, bourbon, home appliances and Florida orange juice.Tariffs will be placed on another C$125bn ($86.2bn) of US goods if Trump’s tariffs were still in place in 21 days.“Tariffs will disrupt an incredibly successful trading relationship,” Trudeau said, adding that they would violate the US-Mexico-Canada free trade agreement signed by Trump during his first term.Mexico’s president, Claudia Sheinbaum, was expected to announce her response on Tuesday morning, the country’s economy ministry said.Asian markets were down – after sharp falls in US markets on Monday – as Japan’s Nikkei fell 1.6%, Taiwan’s benchmark TWII index was off 0.5% and Hong Kong’s Hang Seng was down 0.$%.The Canadian dollar and the Mexican peso fell to their lowest levels in a month on Tuesday.In Europe, the FTSE 100 dropped by 57 points, or 0.65%, at the start of trading to 8,813 points, a day after rising more than 8,900 points for the first time. France’s CAC 40 fell 0.9% and Spain’s Ibex was down 0.8%.Trump and his allies claim that higher tariffs on US imports from across the world will help make America great again by enabling it to obtain political and economic concessions from allies and rivals on the global stage.Businesses, inside the US and worldwide, have warned of widespread disruption if the Trump administration pushes ahead with this strategy.Since winning November’s presidential election, the president has focused on China, Canada and Mexico, threatening the three markets with steep duties on their exports unless they reduced the “unacceptable” levels of illegal drugs crossing into the US.skip past newsletter promotionafter newsletter promotionWhile he slapped a 10% tariff on China last month, Trump has repeatedly delayed the imposition of tariffs on Canada and Mexico. The president has pledged to bring down prices in the US, but economists have warned that consumers in the country could be aversely affected by his trade plans.A 25% tariff on Canada and Mexico and a 10% levy on China would amount to “the largest tax increase in at least a generation”, according to the Peterson Institute for International Economics, a thinktank, which estimated such a move would cost the typical US household more than $1,200 each year.Trump has vowed to go further, threatening to introduce “reciprocal” tariffs on countries that have their own duties on goods made in the US. He has said these will come into effect as soon as next month.China’s finance ministry said in a statement: “The US’s unilateral tariff increase damages the multilateral trading system, increases the burden on US companies and consumers, and undermines the foundation of economic and trade cooperation between China and the US.”The ministry said products shipped from the US to China that departed before 10 March and arrived before 12 April would not be subject to the tariffs.Trump has said the tariffs on China are because the government has failed to stop illicit fentanyl entering the US, which Beijing says is a “pretext” to threaten China.“China opposes this move and will do what is necessary to firmly safeguard its legitimate interests,” a foreign ministry spokesperson, Lin Jian, said.Chris Weston, an analyst at the brokerage Pepperstone, said: “Market anxiety levels have been dialled up, and we see traders having to react aggressively and dynamically to the deluge of headlines and social posts confirming that tariffs on China, Mexico and Canada are to be implemented in full and as threatened.” More