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      Trump’s Tariff Agenda Bets on Americans Giving Up Cheap Goods

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      Treasury Secretary Scott Bessent argues that the American dream is about more than cheap televisions, but inflation-weary consumers might disagree.President Trump’s sweeping tariffs are expected to raise the cost of cars, electronics, metals, lumber, pharmaceuticals and other products that American consumers and businesses buy from overseas.But Mr. Trump and his advisers are betting that it can sell an inflation-weary public on a provocative idea: Cheap stuff is not the American dream.“I couldn’t care less if they raise prices, because people are going to start buying American-made cars,” Mr. Trump said on NBC’s Meet the Press show on Sunday in response to fears of foreign car prices spiking.The notion that there is more to life than low-cost imports is an acknowledgment that tariffs could impose additional costs on Americans. It is also a pitch that the burden will be worth it. Mr. Trump’s ability to convince consumers that it is acceptable to pay more to support domestic manufacturing and adhere to his “America First” agenda could determine whether the president’s second term is a success or a calamity.But it is not an easy sell. The onslaught of tariffs has roiled markets and dampened consumer confidence. Auto tariffs that go into effect on Thursday will add a 25 percent tax on imports of cars and car parts, likely upending pricing in the sector. Mr. Trump has already imposed tariffs of 20 percent on Chinese goods and more are expected later this week, when the president announces his “reciprocal” tariffs on major trading partners, including those in Asia and Europe.In confronting anxiety over the trade uncertainty, Mr. Trump and his top economic aides have resorted to asking Americans to think about the bigger picture. They espouse the view that Mr. Trump’s trade wars are necessary to correct decades of economic injustice and that paying a bit more should be a matter of national pride.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump Says He ‘Couldn’t Care Less’ if Auto Tariffs Raise Car Prices in the U.S.

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      President Trump has said that “tariffs are the greatest thing ever invented.” For someone who once called himself a “tariff man,” tariffs are the solutions to many economic problems.He has argued that imposing tariffs would protect American factories, spur manufacturing, create new jobs and bend uncooperative governments to his will. Since his inauguration, while imposing and then suspending and then imposing tariffs again, Mr. Trump has upended the global trading system.But over that time Mr. Trump has also begun conceding that tariffs could cause financial discomfort for Americans. That possibility came up in stark terms in an interview with NBC’s “Meet the Press” from Saturday, when Mr. Trump said that he “couldn’t care less” about the prospect of higher car prices.The president repeated the sentiment twice when asked about the 25 percent tariffs on imported cars and auto parts that he has promised will go into effect on Thursday. He told the NBC News host Kristen Welker that the tariffs were permanent, and that he would encourage auto companies and their suppliers to move to the United States.In one exchange, Ms. Welker asked Mr. Trump if he was at all concerned with the effect of tariffs on car prices, which experts have said could go up by thousands of dollars. “No, I couldn’t care less,” he said, “because if the prices on foreign cars go up, they’re going to buy American cars.”After the interview, an aide to the president told NBC that Mr. Trump was referring to the increase in foreign car prices.While the White House sought to emphasize foreign-made vehicles, the tariffs will affect American companies like Ford Motor and General Motors, which build many of their vehicles in Canada and Mexico. Nearly half of the vehicles sold in the United States are imported, according to S&P Global Mobility data, and almost 60 percent of auto parts in cars assembled in the country.A study by the Yale Budget Lab, a nonpartisan research center, forecast that tariffs would cause vehicle prices to increase by an average of 13.5 percent — an additional $6,400 to the price of an average new 2024 car.On Sunday, Shawn Fain, the president of the United Automobile Workers union, said that the tariffs were indeed a “motivator” for carmakers to bring jobs back to the United States. But, he said on CBS’s “Face the Nation,” they were not an “end-all solution” to help American auto workers. If jobs are being brought back to the United States, Mr. Fain said, they need to be “good paying union jobs that set standards.”Peter Navarro, a senior trade adviser to Mr. Trump, defended the tariffs and said they would raise about $100 billion, which would translate to tax credits for people who buy American cars. He, too, told Americans not to worry about the effects of the tariffs.Instead, he said on Sunday, they should “trust in Trump.” More

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      Democrats: Still Under Construction

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      More from our inbox:Domestic EnemiesNew housing under construction in Georgetown, Texas.Mike Osborne for The New York TimesTo the Editor:Re “There Is a Liberal Answer to the Trump-Musk Alliance,” by Ezra Klein (column, March 9):Mr. Klein gets some things right about government efficiency and some things absolutely wrong. I agree that Democrats should pursue policies of abundance rather than policies of constraint. But Democrats did make that argument repeatedly and provided real policy solutions — for example, an expanded child tax credit that reduced child poverty roughly by half within a two-year period.Mr. Klein underestimates the power of the media’s constantly hammering on the message of division and the false assumption that taking care of the poorest will disadvantage working- and middle-class white people. He also contrasts housing construction policy in California and Texas, blaming overregulation for California’s lack of progress in meeting needs. Earthquakes? Wildfires? Coastal erosion? Access to adequate water? Mr. Klein ignores those constraints. And has he been to Texas lately?I am from a large Texas family and lived in California for 40 years. “Accessible housing” in Texas has led to endless sprawl, long commutes, increasing air pollution alerts and limited access to amenities to improve the quality of life. With its diminishing investment in public goods like schools and parks, its poor family support and hostility to women and diverse people, and one of the most corrupt administrative and legislative governments in the United States, Texas is hardly a model.Terry L. AllisonMontrealTo the Editor:Ezra Klein suggests that “a politics of abundance” can defeat the “politics of scarcity” that fuels the fear driving people into the arms of authoritarians like Donald Trump. While I agree from a philosophical standpoint, I must ask: How can we pull that off in a world where more and more of our planet is becoming uninhabitable because of climate change?Climate change is at the root of most of the challenges we face today. Millions of people displaced by famine, fire or flood will move to the quickly dwindling parts of the planet that are habitable. People in these still habitable locations sense this at their deepest core, and thus the politics of scarcity are born — not from propaganda but from actual crisis.We cannot even begin to project any sense of “abundance” while this indisputable fact remains true. The only way to save not only our political representation but also our planet is to face this existential crisis squarely, so that maybe one day “abundance” becomes a word that we can use truthfully, and joyfully, once again.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      The Second Trump Administration Is About Ideology, Not Oligarchy

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      The Democrats, casting about for an anti-Trump narrative, have found a word: “oligarchy.” It was part of Joe Biden’s farewell address; it’s central to Senator Bernie Sanders’s barnstorming; it shows up in the advice given by ex-Obama hands. It aspires to fold together President Trump’s self-enrichment, Elon Musk’s outsize influence, the image of Silicon Valley big shots at the inauguration with a familiar Democratic criticism of the G.O.P. as the party of the superrich.I don’t want to pass premature judgment on its rhetorical effectiveness. But as a narrative for actually understanding the second Trump administration, the language of “oligarchy” obscures more than it reveals. It suggests a vision of Trumpism in which billionaires and big corporations are calling the shots. And certainly, the promise of some familiar Republican agenda items — like deregulation and business tax cuts — fits that script.But where Trump’s most disruptive and controversial policies are concerned, much of what one might call the American oligarchy is indifferent, skeptical or fiercely opposed.Start with the crusade against wokeness and D.E.I., a fight spreading beyond the federal bureaucracy to everything (state policymaking, university hiring) influenced by federal funding. Is this a central oligarchic agenda item? Not exactly. Sure, some corporate honchos were weary of activist demands and welcomed the rightward shift. But before the revolts that began with politicians like Ron DeSantis and activists like Christopher Rufo, the corporate oligarchy was an ally or agent of the Great Awokening, either accepting new progressivism’s strictures as the price of doing business or actively encouraging D.E.I. as both a managerial and a commercial strategy.Capital, in other words, is flexible. It can be woke or unwoke, depending on the prevailing winds, and it will adapt again if anti-D.E.I. sentiment goes away.Next, consider Musk’s so-called Department of Government Efficiency, with its frantic quest to slash contracts, grants and head counts at government agencies. Is this oligarchy? No doubt some corporations stand ready to fill spaces left open by the public-sector retreat. But the American corporate sector as a whole is deeply enmeshed with governmental contracting, heavily invested in public-private partnerships, accustomed to cozy lobbying relationships and eager to take advantage of government largess.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Why the Fed’s Job May Get a Lot More Difficult

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      President Trump’s plans risk stoking inflation and denting growth, an undesirable combination that economists warn could lead to much tougher trade-offs for the central bank.When inflation was too high and the economy was resilient in the aftermath of the pandemic, the Federal Reserve’s decision to sharply raise interest rates beginning in 2022 seemed like a no-brainer. The same was true just over two years later when inflation had fallen sharply from its recent peak and the labor market had started to cool off. That paved the way for the central bank to lower borrowing costs by a percentage point in 2024.What made those decisions relatively straightforward was the fact that the Fed’s goals of achieving low and stable inflation and a healthy labor market were not in conflict with each other. Officials did not have to choose between safeguarding the economy by lowering rates and staving off price increases by either keeping rates high or raising them further.Economists worry that could soon change. President Trump’s economic agenda of tariffs, spending cuts and mass deportations risks stoking inflation while simultaneously denting growth, an undesirable combination that could lead to much tougher trade-offs for the Fed.“We’re getting to a harder decision point for the Fed,” said Nela Richardson, chief economist at ADP, the payroll processing company.Jerome H. Powell, the Fed chair, indicated little concern about this dilemma on Wednesday after the Fed’s decision to keep interest rates unchanged for a second-straight meeting in light of a highly “uncertain” economic outlook.Mr. Powell did warn that “further progress may be delayed” on getting inflation back to the central bank’s 2 percent target because of tariffs. A combination of rising inflation and weaker growth would be “a very challenging situation for any central bank,” he conceded, but it was not one the Fed currently found itself in.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s Tariffs Have Sown Uncertainty. That Might Be the Point.

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      Since taking office, President Trump and his advisers have explained the president’s aggressive economic approach to tariffs with a litany of conflicting ideas. Other countries are “ripping off” America and need to be stopped. The United States is fighting a drug war with Canada, Mexico and China. Tariffs will help pay down the nation’s $36 trillion debt load.The messaging hodgepodge comes as the U.S. economy shows signs of strain in response to Mr. Trump’s steep tariffs on Canada, Mexico and China and as he prepares to enact “reciprocal” tariffs on imports from around the world on April 2.The tariffs have sowed uncertainty and dampened business investment and consumer sentiment while sending markets gyrating daily. They are also likely to prevent the Federal Reserve from cutting rates as policymakers wait to see exactly what measures Mr. Trump follows through with and how they affect the economy.But rather than trying to provide more coherence about their economic strategy, Mr. Trump and his advisers seem to be embracing the uncertainty of his approach as a feature, not a bug.“Absolutely, between now and April 2, there’ll be some uncertainty,” Kevin Hassett, the director of the White House’s National Economic Council, said on CNBC this week amid questions about what investors are to make of Mr. Trump’s trade agenda.Mr. Trump, when asked whether he would give the business community more clarity about his overall approach, largely dismissed concerns that corporations needed predictability.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s Trade War Will Slow Global Economic Growth, OECD Says

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      The growing trade war and rapid policy shifts are expected to drag down economic growth in the United States and around the world, according to projections released on Monday.The resilience that was evident last year is slipping, the Organization for Economic Cooperation and Development said in its latest interim economic report, which estimated that global growth would dip to 3.1 percent in 2025 and to 3 percent in 2026, from 3.2 percent last year. The United States is likely to see a sharper drop, falling to 2.2 percent this year and to 1.6 percent next year, from the 2.8 percent growth in 2024.“Some signs of weakness have emerged, driven by heightened policy uncertainty,” said Mathias Cormann, the organization’s secretary-general. “Increasing trade restrictions will contribute to higher costs both for production and consumption.”President Trump has imposed tariffs — including a sweeping 25 percent penalty on foreign steel and aluminum — on once-close allies like Canada, Mexico, the European Union, Japan and Britain, as well as on longtime rivals like China. Most have already issued countermeasures or have threatened to. Mr. Trump has vowed to impose another round of tariffs next month.One result of the tariffs is that inflation looks to be rising faster than previously thought, the O.E.C.D. said, explaining why it revised its previous estimate, published in December. Both business and consumer confidence have also ebbed.The outlook for the 20 countries that use the euro is limp. This year, growth is expected to increase 1 percent; next year, it should rise to 1.2 percent. The grimmest forecast is for Mexico, where growth is expected to decline to negative 1.3 percent this year and negative 0.6 percent in 2026.India, by contrast, is on track to record the strongest growth, according to the O.E.C.D. report, which estimates that gross domestic product, which rose last year to 6.3 percent, will increase to 6.4 percent in 2025 and 6.6 percent in 2026. China’s economy, too, looks to be in better health, with 4.8 percent growth expected in 2025 and 4.4 percent in 2026. If trade restrictions escalate, inflation could rise and economic growth could decline even more than anticipated, the organization warned.The one potential bright spot is artificial intelligence, said Álvaro Santos Pereira, the group’s chief economist. A.I. is expected “to significantly boost labor productivity growth over the next decade,” he said, with even greater gains if combined with advances in robotics. More

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      U.S. Consumer Sentiment Drops as Inflation Anxiety Soars

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      Policy uncertainty and tariff whiplash are making consumers less confident about the economic outlook and more worried about inflation, new data from the University of Michigan showed on Friday, the latest evidence that Americans are bracing for pain in President Trump’s second term.A new survey released on Friday showed consumer sentiment plummeting 11 percent in March as Americans of all ages, income groups and political affiliations turned even more downbeat about the trajectory for the economy. Consumer confidence has fallen for the third consecutive month, not only about personal finances, but also the job market and stock markets. Since December, sentiment has tumbled 22 percent.“Many consumers cited the high level of uncertainty around policy and other economic factors; frequent gyrations in economic policies make it very difficult for consumers to plan for the future, regardless of one’s policy preferences,” said Joanne Hsu, director of the Surveys of Consumers at the University of Michigan.Consumers also revised up their expectations for inflation, both for the year ahead and over a five-year horizon. Over the next 12 months, consumers expect inflation to rise to 4.9 percent, up from a forecast for 4.3 percent last month. Over the longer run, expectations rose to 3.9 percent in what was the largest monthly jump since 1993. According to the latest Consumer Price Index report, inflation stands at 2.8 percent.“This is an horrific report,” said Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics. “Elevated economic policy uncertainty and the sharp drop in stock prices have greatly undermined consumers’ confidence.”The preliminary data comes as President Trump and his top economic advisers have acknowledged that the president’s plans to reshape global trade through aggressive tariffs, to right size government spending and to alter the American immigration system, among other sweeping changes could hurt the economy or even push it into a recession.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More