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      White House officials rush to defend Trump after shaky economic week

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      Donald Trump administration officials fanned out on Sunday’s US political shows to defend the president’s policies after a bruising week of poor economic, trade and employment numbers that culminated with the firing of labor statistics chief Erika McEntarfer.US trade representative Jamieson Greer said Trump has “real concerns” about the jobs numbers that extend beyond Friday’s report that showed the national economy added 73,000 jobs in July, far below expectations. Job growth numbers were revised down by 285,000 for the two previous months as well.On CBS News’s Face the Nation, Greer defended Trump’s decision to fire McEntarfer, a respected statistician, saying: “You want to be able to have somewhat reliable numbers. There are always revisions, but sometimes you see these revisions go in really extreme ways.”He added: “The president is the president. He can choose who works in the executive branch.”But William Beach, who served as Trump’s commissioner of the Bureau of Labor Statistics (BLS) in his first presidency, warned that McEntarfer’s dismissal would undermine confidence in the quality of US economic data.The BLS gave no reason for the revised data but noted that “monthly revisions result from additional reports received from businesses and government agencies since the last published estimates and from the recalculation of seasonal factors”.“This is damaging,” Beach said on Sunday on CNN’s State of the Union. “I don’t know that there’s any grounds at all for this firing.“And it really hurts the statistical system. It undermines credibility in BLS.”McEntarfer on Friday published a statement on social media reacting to her dismissal, calling it the “honor my life” to have served as BLS commissioner.She said the BLS employs “many dedicated civil servants tasked with measuring a vast and dynamic economy”.“It is vital and important work, and I thank them for their service to this nation,” McEntarfer’s statement on the Bluesky platform said.Uproar over McEntarfer’s firing has come as a series of new tariff rates are due to come into effect this month. While the president has predicted a golden age for the US economy, many economists warn that higher import tariffs could ultimately weaken American economic activity.On CBS, Greer said that Trump’s tariff rates are “pretty much set” and unlikely to be re-negotiated before they come into effect.The first six months of Trump’s second terms have been characterized by a seesawing of tariff rate announcements that earned the president the moniker on Wall Street of Taco – “Trump always chickens out”. But last week he issued an executive order outlining tariff modifications for dozens of countries after he had twice delayed implementation.Yet Greer also said many of the tariff rates announced “are set rates pursuant to deals”.“Some of these deals are announced, some are not, others depend on the level of the trade deficit or surplus we may have with the country,” he said.On NBC’s Meet the Press, the national economic council (NEC) director, Kevin Hassett, said modified US tariff rates were now “more or less locked in, although there will have to be some dancing around the edges about exactly what we mean when we do this or that”.Asked if tariff rates could change again, he said, “I would rule it out because these are the final deals.”On Fox News Sunday, Hassett said he also supported McEntarfer’s dismissal. “I think what we need is a fresh set of eyes at the BLS, somebody who can clean this thing up,” he remarked.But former treasury secretary Larry Summers told ABC’s This Week that McEntarfer’s firing was “way beyond anything that Richard Nixon ever did”, alluding to the late former president who resigned in 1974 over the Watergate scandal.Summers said Trump’s claim that the poor job numbers were “phony” and designed to make him look bad “is a preposterous charge”.“These numbers are put together by teams of literally hundreds of people following detailed procedures that are in manuals,” Summers said. “There’s no conceivable way that the head of the BLS could have manipulated this number. The numbers are in line with what we’re seeing from all kinds of private sector sources.”Summers placed McEntarfer’s firing, Trump’s pressure on Jerome Powell, the Federal Reserve chair, to lower interest rates, and the strong-arm tactics that the administration has aimed at universities, law firms and media institutions in the same bucket.“This is the stuff of democracies giving way to authoritarianism,” Summers said. “Firing statisticians goes with threatening the heads of newspapers.“It goes with launching assaults on universities. It goes with launching assaults on law firms that defend clients that the elected boss finds uncongenial. This is really scary stuff.” More

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      Despite Trump, the US economy remains surprisingly resilient. But for how long? | Richard Partington

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      Chaotic and unpredictable, keeping up with Donald Trump’s volatile trade war – never mind his presidency – can be tough.Back in April after his “Liberation Day” tariff announcement, the talk was of the president crashing the global economy. Then, after a Wall Street backlash, the world learned the acronym “Taco”, which stands for “Trump Always Chickens Out”. Now, things are heating up again.The president’s decision to hit US trading partners – including Canada, Brazil, India and Taiwan – with new tariffs after his self-imposed 1 August deadline certainly reignites a threat to the world economy. Dozens of countries have been left reeling, and US consumers are expected to pay a heavy price.However, there is a sense that things could have been worse. Nowhere more clearly is this reflected than on Wall Street: despite the chaos of the president’s trade war, the stock market remains close to record levels.After the latest escalation on Friday, and some worrying US jobs numbers, share prices took a hit, sliding by about 1%. But this is a setback rather than a rout.A further slide could be ignited by this capricious president. Trump’s decision to fire the official in charge of labour market data and his war on the independence of the US Federal Reserve will make matters worse.But despite the warnings of untold economic damage from the US tariff war earlier this year, the American economy has proven surprisingly resilient in recent months.Last week, the president seized on US growth figures showing the economy had expanded at an annualised rate of 3% in the second quarter, far in excess of the 2.4% rate predicted on Wall Street. Could the “fake news” media have it wrong? Are tariff wars “good, and easy to win,” as Trump claims?While inflation has ticked up, from 2.4% in May to 2.7% in June, it is well below the peak that followed the height of the pandemic disruption and Russia’s invasion of Ukraine, and is far from hitting the levels feared.Back in April, in a country wrought with division, Democratic voters reckoned inflation was on track to hit 7.9% within a year, while Republicans said it would collapse to 0.9%.Butthere is good reason why the US economy has so far defied the prophecies of Armageddon. For starters, the hot-cold nature of Trump’s tariff war means investors still anticipate further deals will be done to avoid the worst threats from ever materialising. The toughest tariffs introduced on Friday are only just arriving, too, meaning any impact has yet to emerge.Most countries have not hit back with retaliatory measures, which would have dramatically worsened things by putting international trade into a deeper tailspin.Meanwhile, knowing full well the dangers of this erratic president, businesses have been planning for months to avoid the worst-case scenarios.US companies rushed to stockpile goods before the trade war, helping them to keep prices down for now. Some firms have taken a hit to profits, according to analysts at Deutsche Bank, reckoning this is better than testing struggling American consumers – worn out by years of high inflation – with further price increases.The tariff costs are also being spread by multinationals, by increasing prices across the markets they operate in. In one high-profile example, Sony has put up the price of its PlayStation 5 by as much as 25% in some markets, including the UK, Europe, Australia and New Zealand. But not in the US.Still, there are signs that consequences are coming. When US businesses exhaust their pre-tariff stockpiles, it is likely that prices will creep higher. Meanwhile, the uncertainty of an erratic president is hitting jobs and investment.skip past newsletter promotionafter newsletter promotionLast week’s US jobs market data has reignited fears over the resilience of the American economy. Tariffs are weighing on business confidence and steadily creeping into consumer prices.GDP growth of 3% might appear robust on the face of things, but this figure was heavily influenced by the 0.5% fall in output in the first quarter, when the surge in US firms rushing to beat Trump’s tariffs distorted activity. Growth in the first half averaged 1.25%, markedly slower than the 2.8% rate for 2024 as a whole.Part of the reason Wall Street remains sanguine about this is the continued belief that things could have turned out worse. Deals are still expected, with the pause in tariffs for key US trade partners Mexico and China suggesting this most clearly.The investor view is that rather than tariffs the president would prefer a string of box-office moments in front of the TV cameras with trade partners paying tribute to the court of Trump.However, it would be wrong to underestimate the self-described “tariff man’s” love of border taxes. And even though his most extreme threats will be negotiated down, the final destination will still be much worse than before. An economic hurricane might be avoided but a storm is still the last thing businesses and consumers need.Britain’s US trade deal is a case in point. A 10% US tariff on British goods has been welcomed as a big victory for Keir Starmer given the alternative, but it is still far worse than before.British cars will face a tariff rate four times higher than previously, costing jobs and growth in Britain while hitting American consumers in the pocket.For the US consumer, the average tariff had been close to 2% before Trump’s return to the White House. After his 1 August escalation, that figure leaps to about 15% – the highest level since the 1930s.Almost a century ago a similar wrong-headed protectionist approach in Washington made the Great Depression far worse: the Smoot-Hawley tariffs hit the US and triggered a domino effect among the main industrialised nations, ultimately leading to the second world war.In the unpredictability of Trump’s trade war, hope remains that similar mistakes can be avoided. But significant damage is still being done. More

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      India to still buy oil from Russia despite Trump threats, say officials

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      Indian oil refineries will continue to buy oil from Russia, officials have said, before threatened US sanctions next week against Moscow’s trading partners over the war in Ukraine.Media reports on Friday had suggested India, a big energy importer, would stop buying cheap Russian oil. Trump later told reporters that such a move would be “a good step” if true.“I understand that India is no longer going to be buying oil from Russia,” he said. “That’s what I heard. I don’t know if that’s right or not. That is a good step. We will see what happens.”However, official sources in India, quoted by the news agency ANI, rebutted Trump’s claim, saying Indian oil companies had not paused Russian imports and that supply decisions were based on “price, grade of crude, inventories, logistics and other economic factors”.Trump’s remarks came a day after the White House announced tariffs of 25% on all Indian goods, along with a penalty for buying arms and energy from Russia amid the war in Ukraine.Trump has given an 8 August deadline for Vladimir Putin to stop the war or risk further sanctions on tariffs on countries that import Russian oil.Earlier this week, Reuters reported that Indian state-owned refineries had suspended Russian oil purchases amid the tariff threats and narrowing price discounts.But on Saturday, the New York Times cited two unnamed senior Indian officials who said there had been no change in Indian government policy related to importing Russian oil. One said the government had “not given any direction to oil companies” to cease buying oil from Russia.“These are long-term oil contracts,” one of the sources said. “It is not so simple to just stop buying overnight.”The sources cited by ANI said Indian oil refineries operated in full compliance with international norms, and that Russian oil had never been directly sanctioned by the US or EU. “Instead, it was subjected to a G7-EU price-cap mechanism designed to limit revenue while ensuring global supplies continued to flow.”They added: “India’s purchases have remained fully legitimate and within the framework of international norms.”The sources also noted that if India had not “absorbed discounted Russian crude combined with Opec+ production cuts of 5.8 mb/d [millions of barrels a day], global oil prices could have surged well beyond the March 2022 peak of US$137/bbl [a barrel], intensifying inflationary pressures worldwide”.skip past newsletter promotionafter newsletter promotionRussia is the top oil supplier to India, responsible for about 35% of the country’s supplies. India says that as a major energy importer it must find the cheapest supplies to protect its population against rising costs.On Friday, India’s foreign ministry spokesperson, Randhir Jaiswal, said: “We look at what is available in the markets, what is on offer, and also what is the prevailing global situation or circumstances.”Jaiswal added that India had a “steady and time-tested partnership” with Russia.This partnership has been a point of contention for the White House, with Trump posting on Truth Social on 30 July that while India was “our friend”, it had always bought most of its military equipment from Russia and was “Russia’s largest buyer of ENERGY, along with China, at a time when everyone wants Russia to STOP THE KILLING IN UKRAINE – ALL THINGS NOT GOOD!”In a second post, Trump added: “I don’t care what India does with Russia. They can take their dead economies down together, for all I care.”Ukraine’s military said on Saturday it had hit oil facilities inside Russia, including a refinery in Ryazan, causing a fire on its premises. The strike also hit an oil storage facility, a military airfield for drones and an electronics factory. More

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      Trump news at a glance: president unleashes slew of new tariff rates for trading partners

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      Donald Trump has signed an executive order placing tariffs on dozens of US trading partners just hours before the 1 August deadline he set for deals to be done.The new tariffs, the next step in his trade agenda that will test the global economy, are set to go into effect in seven days. The extension reflects the government’s need for more time to harmonize the tariff rates, AP reports, according to a senior official who spoke to reporters on condition of anonymity.The order applies to 68 countries and the 27-member European Union. Rates were set at 25% for India’s US-bound exports, 20% for Taiwan, 19% for Thailand and 15% for South Korea.Trump also increased duties on Canadian goods to 35% from 25% for all products not covered by the US-Mexico-Canada trade agreement, but gave Mexico a 90-day reprieve from higher tariffs to negotiate a broader trade deal. Trump had threatened on Wednesday that Ottawa’s move to recognise a Palestinian state would make agreeing a trade deal “very hard”.Asian shares fell on Friday after the tariffs announcement.Read on for more on tariffs and other key US politics news of the day:Trump imposes tariffs of 10% to 41% on dozens of countries, hours before deadlineUS president Donald Trump has signed an executive order imposing reciprocal tariffs ranging from 10% to 41% on imports from dozens of countries and foreign locations, as he extended the deadline for a tariff deal with Mexico by another 90 days.Rates were set at 25% for India’s US-bound exports, 20% for Taiwan and 30% for South Africa ahead of Trump’s self-imposed deadline to strike trade deals with countries around the world by 1 August. Brazil’s tariff rate was set at 10%, but a previous order signed by Trump placed a 40% tariff on some Brazilian goods, to punish the country for prosecuting its former president, Jair Bolsonaro, for trying to overturn an election he lost and inspiring his supporters to storm the seat of government.Separately, the White House announced that Canadian imports will face tariffs of 35%, not the current 25%. Trump had threatened on Wednesday that Ottawa’s move to recognise a Palestinian state would make agreeing a trade deal “very hard”.Read the full storyTrump signs order increasing tariffs on Canadian goods from 25% to 35%Donald Trump signed an executive order on Thursday increasing tariffs on Canadian goods imported to the United States from 25% to 35%.The new import tax rates goes into effect on Friday, according to a White House factsheet. The tariff would cover all products not covered by the US-Mexico-Canada trade agreement. Goods transshipped to another country to evade the new tariffs would be subject to a transshipment levy of 40%.The decision comes after months of tariff threats from the Trump administration, and escalating trade tensions that have sowed anger in Canada.Read the full storyTrump threatens drug giants with crackdown over pricesDonald Trump has threatened to use “every tool in our arsenal” to crack down on pharmaceutical companies if they fail to cut drug prices for Americans within 60 days.The president wrote to executives at 17 companies on Thursday, demanding they match their US prices for prescription drugs with the lowest price offered in other developed nations.Read the full storyExecutive order brings back presidential fitness test in schoolsDonald Trump signed an executive order on Thursday to bring back the presidential fitness test, a series of physical tests for schoolchildren in the US that was in place for decades but suspended 12 years ago to focus less on competition and more on healthy lifestyles.Read the full storyHegseth aides used polygraphs against colleaguesSenior aides to the defense secretary, Pete Hegseth, conducted polygraphs on their own colleagues this spring, in some cases as part of an effort to flush out anyone who leaked to the media and apparently to undercut rivals in others, according to four people familiar with the matter.Read the full storyFema denies grants to Kentucky counties ravaged by stormsThe Federal Emergency Management Agency (Fema) denied requests for three Kentucky counties affected by severe storms last spring, and deemed the state ineligible for hazard mitigation grants that would help prepare for future disasters.Read the full storyTrump to build ‘beautiful’ $200m ballroom at White HouseThe White House will soon begin construction of a new $200m ballroom to be ready before Donald Trump’s term ends in early 2029.Press secretary Karoline Leavitt said the building will be 90,000 sq ft and will hold up to 650 seats.It will be the latest change introduced to what’s known as “the People’s House” since the Republican president returned to office in January. It also will be the first structural change to the executive mansion itself since the addition of the Truman Balcony in 1948.Read the full storyWhat else happened today:

      British singer Jess Glynne says she feels “sick” that the Trump administration was using her music to promote immigration deportations.

      The Pentagon will remove 1,350 national guard troops from Los Angelesoriginally sent to the state by the Trump administration to deal with protests over its immigration policies.

      Donald Trump evaded the question when asked if he agrees with Marjorie Taylor Greene that “what is occurring [in Gaza] is a genocide”. Trump replied: “Oh it’s terrible what’s occurring there, yeah”, before repeating his complaint that “nobody said thank you” when the US donated money to feed the people of Gaza, and his false claim that the recent donation of $30m was $60m.

      Reuters reports the Trump administration has sent a letter to Harvard informing the university it has referred been referred to the Department of Justice, to address allegations of antisemitic discrimination.
      Catching up? Here’s what happened 30 July 2025. More

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      Trump’s tariffs face skepticism in court hours before latest round is set to kick in

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      Donald Trump’s global tariffs faced significant skepticism in a federal appeals court on Thursday, as judges investigated whether the president had overstretched his powers just hours before the latest sweeping round of duties is set to kick in.The full 11-strong bench of the US court of appeals for the federal circuit in Washington DC is considering whether Trump exceeded his authority in imposing “reciprocal” tariffs on a large number of US trading partners.Judges repeatedly asked if Trump was justified in relying on emergency powers to effectively tear up the US tariff schedule without consulting Congress.Businesses challenging his strategy accused the White House of engineering a “breathtaking” attempt to force it through, unlike any trade move attempted by a US administration in two centuries.The 1977 International Emergency Economic Powers Act (IEEPA), which Trump has used to invoke emergency powers and enforce many of his tariffs, “doesn’t even say ‘tariffs’”, one of the judges noted. “Doesn’t even mention them.”In May a three-judge panel of the court of international trade blocked the import duties on grounds that Trump’s use of IEEPA was unjustified. The appeals court has stayed that ruling pending the outcome of Thursday’s hearing.“The government uses IEEPA all the time,” said Brett Shumate, assistant attorney general in the justice department’s civil division, representing the administration, to the court. He conceded, however, that it was the first IEEPA had been used to implement tariffs.The US trade deficit – the gap between what it imports to and exports from the world – has “reached a tipping point”, claimed Shumate, enabling Trump to take emergency action. “It’s affecting our military readiness,” he said. “It’s affecting our domestic manufacturing capability.”But Neal Katyal, a lawyer representing businesses challenging the tariffs, argued that Trump was laying a “breathtaking claim to power that no president has asserted in 200 years”.The administration is effectively saying “that our federal courts are powerless; that the president can do whatever he wants, whenever he wants, for as long he wants – so long as he declares an emergency”, Katyal argued.Trump posted about the hearing on his Truth Social platform on Thursday, calling it “America’s big case”. He said: “If our Country was not able to protect itself by using TARIFFS AGAINST TARIFFS, WE WOULD BE ‘DEAD,’ WITH NO CHANCE OF SURVIVAL OR SUCCESS.”“Now the tide has completely turned, and America has successfully countered this onslaught of Tariffs used against it,” the president claimed. “ONE YEAR AGO, AMERICA WAS A DEAD COUNTRY, NOW IT IS THE ‘HOTTEST’ COUNTRY ANYWHERE IN THE WORLD.”The challenge to Trump’s use of emergency powers has been brought by five small businesses acting alongside 12 Democratic-controlled states. They argue that the IEEPA was designed to address “unusual and extraordinary” threats arising in national emergencies, and that the reason for the tariffs do not meet that standard.The small businesses are being represented by a libertarian public interest law firm, the Liberty Justice Center. The non-profit is supported by billionaire rightwing donors including Robert Mercer and Richard Uihlein, who, paradoxically, have also been major backers of Trump’s presidential campaigns. More

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      Canada braces as tariff deadline looms and talks with US ‘chaos machine’ drag

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      After months of tariff threats from the US and escalating trade tensions that have sowed anger in Canada and fractured a once-close alliance, the country is now fast approaching a 1 August deadline to reach a deal with the Trump administration – which has shown no signs of backing down.And observers are keeping a close eye on negotiations this week to determine whether too large a chasm has grown between the countries, resulting in what could be an explosive end to what was decades of free-flowing trade.Canada is also in a highly vulnerable position, as it has closely intertwined its economy with the US’s, and is extremely reliant on a low-barrier trade environment, said William Huggins, an assistant professor in economics at McMaster University in Ontario.“Canada has tried to negotiate sort of forcefully from a position of not acquiescing to every demand, but by the same token, has also realised it’s not in the strongest position to do so … We’ve had to navigate carefully,” said Huggins.The Canadian public is also anxiously awaiting the deadline to strike up a deal. Economists and political scientists say the country’s prime minister, Mark Carney, was elected on the belief that he’s the right person to be at the helm of negotiations and lead Canada through a tenuous period with their southern neighbour.His successes or failures in this arena could affect public perception – as he has characterised his government as being the most adept in the crisis around its sovereignty due to the tariffs and Donald Trump’s persistent claims that he’d like to make Canada the 51st state.“[Carney] is in a situation where he doesn’t hold all the cards and whoever we put in was going to have to figure out a way through this … [His] ability to plan is severely limited by the chaos machine that is operating south of the border,” said Dennis Pilon, the chair of the politics department at York University in Ontario.On Monday, Carney said at a news conference on Prince Edward Island that the trade negotiations are at an “intense pace” and that they are “complex”. But he projected tentative optimism, stating that the negotiations are “tough” because the government is standing up for Canadian interests.“There is a landing zone that’s possible but we have to get there. We’ll see what happens,” he told reporters.But Trump spoke of the negotiations flippantly when asked by reporters outside the White House last Friday. “We haven’t really had a lot of luck with Canada … Canada could be one where there’s just a tariff, not really a negotiation,” he said.So far, much of the talks have happened behind closed doors. There was a glimpse into what could be the dynamic between Carney and Trump when the prime minister had his first meeting with the president in the Oval Office in early May. There were positive tones in both initially offering praise for each other, but the encounter quickly grew tense as Trump repeated his annexation claims, which were subsequently rebuffed by Carney.Since March, Trump has imposed several tariffs on Canadian goods and energy resources. There is a 25% tariff on all goods, excluding potash and energy products. But there’s separately a 10% tariff on energy resources, including potash. Additionally, there’s a further 50% tariff on steel and aluminum imports and a 25% tariff on autos and auto parts.At this stage, the tariffs have seemingly not delivered a significant blow to Canada’s economy, but that could change quickly. The Royal Bank of Canada noted in its June forecast that nearly 90% of Canadian goods are exempt from tariffs under the United States-Mexico-Canada Agreement (USMCA), the free trade deal that replaced Nafta in 2020 and which provides a degree of insulation.In an assessment published by the Toronto-Dominion Bank (TD) on Tuesday, it reported that energy exports have not been significantly affected by the tariffs, as most exports are compliant under the USMCA, and are therefore exempt from tariffs.Some of the insulation so far from tariffs could be from opening Canada up to other markets. TD said that in the past four months, Canadian businesses rapidly moved to reorient supply chains and export to non-US markets. Now about 30% of exports go outside the US – a level not seen since the pandemic, when TD notes there was disorientation in trade.But TD also warned that the negative effects of the tariffs might be beginning to emerge. It said that Canadian exports to the US are “generally underperforming” in tariff-targeted industries, particularly steel and automaking. Canada’s auto exports fell to levels not seen since late 2022, following the April imposition of tariffs. Automakers have also “slashed” production in response, it said.Andrea Lawlor, an associate professor of political science at McMaster University, said that while there haven’t been many layoffs or a complete reorientation of production lines yet, industries targeted by tariffs are preparing to do so.Lawlor also said that Carney has been prudent in his negotiation strategy so far, and right in waiting for deals to be brokered between the US and other nations, as they were this month with Japan and the EU, to help inform Canada’s strategy.skip past newsletter promotionafter newsletter promotionAnd despite concerns about marred relationships with First Nations people, pushing forward controversial infrastructure legislation and his quick scrapping of Canada’s digital services tax – which many, including top former diplomats, viewed as fawning capitulation toward Trump – the prime minister is still enjoying fairly positive polling in his term’s infancy.Abacus Data reported at the end of June that 52% of Canadians surveyed approve of the Carney government. The research firm states it shows that his post-election honeymoon period is “far from over”.Lawlor said the best outcome for Carney in the negotiations is a favourable trade deal – however, there has been signalling from Carney, in his discussion of “tough” talks so far, that Canadians may have to accept a baseline of tariffs.“Many Canadians just simply will not be satisfied if that is the outcome,” she said. But due to Carney facing limited criticism of his interactions with the Americans so far, Lawlor said she believes the prime minister will not face extreme negative blowback if he doesn’t trounce tariffs for good this week.But he will be more vulnerable if the tariffs start to place downward pressure on multiple industries, she said.As Canadians are waiting and watching for the Friday deal deadline, the real fears are around the cementing of a new world order and whether long-term business and consumer decisions need to be made in response, said Preetika Joshi, an assistant professor at McGill University in Quebec that specialises in taxation.“If you were a business owner and you knew Trump is going to be in power for only three, four years, would you necessarily make big, significant changes in your supply chain … or would you just wait it out?” she said.But given some grim messaging from those close to Carney – Canadians might be facing tough decisions. Dominic LeBlanc, the federal minister responsible for Canada-US trade, said last week there’s a lot of work ahead of them and minimised the 1 August deadline.“We’re going to continue to work toward the 1 August deadline,” said LeBlanc to reporters in Washington. “But all of these deadlines are with the understanding that we’ll take the time necessary to get the best deal,” he said.Deal or no deal, the negotiations might reveal that there isn’t a best-case scenario, said Joshi.“What we were used to before Trump, where there were very little tariffs, that reality is slightly over,” she said. “We’ll have to wait and see … but the reality is that there are going to be some tariffs.” More

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      White House to end US tariff exemption for all low-value overseas packages

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      The United States is suspending a “de minimis” exemption that allowed low-value commercial shipments to be shipped to the United States without facing tariffs, the White House said on Wednesday.Under an executive order signed by Donald Trump on Wednesday, packages valued at or under $800 sent to the US outside of the international postal network will now face “all applicable duties” starting on 29 August, the White House said.The US president earlier targeted packages from China and Hong Kong, and the White House said the recently signed tax and spending bill repealed the legal basis for the de minimis exemption worldwide starting on 1 July 2027.“Trump is acting more quickly to suspend the de minimis exemption than the OBBBA requires, to deal with national emergencies and save American lives and businesses now,” the White House said in a fact sheet, referring to the bill known as the One Big Beautiful Bill Act.Goods shipped through the postal system will face one of two tariffs: either an “ad valorem duty” equal to the effective tariff rate of the package’s country of origin or, for six months, a specific tariff of $80 to $200 depending on the country of origin’s tariff rate. More

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      ‘Shooting ourselves in the foot’: how Trump is fumbling geothermal energy

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      Geothermal is one of the most promising clean energy sources in the US, providing 24/7 renewable power that could meet rising energy demand from AI datacentres. But former Department of Energy officials are alarmed that Donald Trump is fumbling its potential.Compared with other clean energy sources such as solar and wind, geothermal enjoys rare bipartisan support. The US energy secretary, Chris Wright, has praised the technology, calling it “an awesome resource that’s under our feet”. And Trump’s One Big Beautiful Bill Act preserved tax credits for geothermal.But the administration’s slashing of Department of Energy staff, delays in issuing low-interest loans, and tariffs are together creating uncertainty for the industry and investors.The US has an advantage on geothermal over China and must move urgently, said David Turk, who served as the deputy secretary of energy under former president Joe Biden. “Anything that stops our ability to execute on a plan – staffing, other funding – I think, is shooting ourselves in the foot,” Turk said.The White House and Department of Energy did not respond to questions about how their policies are affecting enhanced geothermal.The potential of geothermalGeothermal energy uses the heat from the Earth’s crust to transform water into steam that turns turbines and generates electricity. It has been used for more than a century, but has been limited to places where hot water reached the Earth’s surface, including hot springs.Now there’s a new technique that can generate energy anywhere, known as enhanced geothermal. The same horizontal drilling approach used in fracking can reach hot rock deep below the surface. “It opens up enhanced geothermal all over the country, all over the world,” Turk said. “That’s just tremendous.”So far, enhanced geothermal systems are located in the Western US. One of the most promising geothermal projects by Fervo Energy can be found in Utah. But the technology can also work in the east.The US is ahead of other countries on enhanced geothermal because of its shale gas boom over the past 15 years, said Eva Schill, a staff scientist who leads the Geothermal Systems Program at Berkeley Lab. “The reason is that we have a lot of experience here from oil and gas fracking,” she said.The enhanced geothermal industry is nascent, generating only 1% of the US’s electricity. And it’s still too expensive to compete with coal and natural gas.View image in fullscreenBut under the right conditions, it could evolve into a cheap source of power. A January article in the journal Nature Reviews found that it could be cost competitive with the national average cost of electricity generation by 2030.The US is the world’s second-largest greenhouse gas emitter after China, and although US emissions have trended downward for the past two decades, the country is still not on track to meet its climate targets. The rapid growth of AI datacentres is further threatening those targets by fueling rising energy demand; datacentres need to run 24/7, so they tend to rely on fossil fuels.Geothermal can potentially solve that problem. It could create 80,000 megawatts of new power, according to a liftoff report published by the Department of Energy.“To put that in perspective, that could meet 100% of all of the AI datacenter load growth for the next 10 years,” said Jigar Shah, a clean energy entrepreneur who served as the director of the loan programs office at the Department of Energy under Joe Biden. “That’s pretty impressive.”Already, Google and Meta have signed deals that would see geothermal companies power their datacentres.How the Trump administration is fumbling geothermalEnhanced geothermal accelerated under Biden-era policies. But several former energy department officials say the Trump administration is failing to provide the business certainty needed to get the fledgling industry off the ground.“The whole ball game right now is bringing down those costs, proving it for investors,” Turk said.“This is really about feelings,” Shah said. “Do the investors feel like this administration really has their back when it comes to investing in these new technologies? They felt like we actually had their back when I was running the loan programs office, and when secretary [Jennifer] Granholm was running energy. They’re unsure whether this administration has their back on these technologies.”View image in fullscreenUnder the Biden administration, the loan programs office was working on closing a low-interest loan for geothermal. Similar loans previously boosted Tesla and utility-scale solar. However, the Trump administration has yet to close a low-interest loan for geothermal, Shah said.The gutting of energy department staff has lowered its capacity to support geothermal, several former energy department officials said. Thousands of scientists, analysts, engineers and procurement officers took deferred resignation offers or were fired. Politico reported that the administration was considering cutting loan programs office staff by half.The Department of Energy has lost “absolutely indispensable” experts on geothermal and loans, Turk said. “So I would worry about, have we lost some of that capacity to actually execute?”Trump’s zeal for tariffs is adding to the industry’s anxiety. Steel tariffs, now at 50%, are hurting companies that use steel in wells. Enhanced geothermal wells require installing miles of steel pipes.Behind the scenes, geothermal companies are “freaking out” about the steel tariffs, Shah said. “They don’t want to say anything negative, lest the Eye of Sauron find them,” he added.The survival of the Inflation Reduction Act tax credits for geothermal provides some certainty. Geothermal can still access the full tax credit, as long as they begin construction by 2033, when the value of the credit will begin phasing down.But geothermal projects now face strict restrictions on the involvement of “foreign entities of concern,” such as Chinese companies and individuals, known as FEOC requirements. Geothermal projects use rare earth elements in their drill bits, and China dominates the rare earth minerals market, said a former energy department official who requested anonymity.What Trump officials can do to boost geothermal“This is a good enough market opportunity that somewhere in the world is going to come true, and we are really well set up for it, if we’re not stupid,” the official said, talking generally about the industry. “But we’ve unfortunately been pretty stupid, and we’re making it harder on ourselves to win in an area that should be pretty easy to win.”There are actions the Trump administration can take immediately to bring down costs and boost the industry.The government can speed things along by “doing a lot of mapping of resources to make it cheaper and less risky for drilling in this area versus that area”, Turk said.“Close a loan,” Shah said, explaining that it would send a strong signal to investors.“We have the technology, we have the tools – the loan programs office and other tools – and I think now what we really need to do is establish the confidence,” Shah said. 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