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      Someone Should Tell Trump He’s About to Make the Trade Deficit Worse

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      There are many reasons President Trump should not be pushing Congress to pass huge tax cuts, but here’s one you may not have heard: Budget deficits and trade deficits are twins. When the former go up, so, generally, do the latter. So at the same moment Mr. Trump is upending the global economy in a feckless attempt to eliminate America’s trade deficit, he’s essentially pressuring Congress to increase it.Here’s how it happens. The United States buys a lot of goods from other countries, and we pay for the goods with dollars. But those dollars are no good abroad, so the countries we buy from invest them here. Some of the money goes, directly or indirectly, into businesses that are raising cash to build new data centers or expand natural gas facilities or construct new apartment complexes. Other dollars go into Treasury bonds or bills, which the federal government uses to fund our large budget deficit. (The same thing happens in reverse when other countries buy from the United States — but to a lesser degree, since our imports are larger than our exports.)If the budget deficit rises, American investors could theoretically cover the shortfall, but that would mean putting their money in Treasury securities rather than businesses and their capital needs. The other option is that foreign countries amass more dollars and plow them back into the U.S. economy. How would they get those additional dollars? From all the German cars and Chinese electronics and imported beer that Americans will buy with the money from their tax cuts.More generally, a larger budget deficit will require the government to borrow more money, which drives up interest rates. Higher interest rates mean a stronger dollar, which makes it more expensive for people in other countries to buy our products, cheaper for us to buy theirs, and thus the trade deficit widens.So cutting taxes, as Mr. Trump has told Congress to do, will drive up the budget deficit — and the trade deficit. All of this may seem counterintuitive, but it’s one of the few things that economists agree about.The budget deficit is already worryingly high and the tax cuts Mr. Trump is seeking would make it even larger. Last year the United States ran a $1.8 trillion budget deficit, or 6 percent of the gross domestic product — higher than at any other time except during World War II, the late-2000s financial crisis and the Covid-19 pandemic — despite strong economic growth and no unusual emergencies.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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      2 Planes Abort Landings as Army Helicopter Flies Near D.C. Airport

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      The episode followed a fatal collision between a military helicopter and a commercial jet in January, and prompted concern and outrage among officials.Federal transportation safety officials were investigating on Friday after two commercial flights aborted landings because an Army helicopter had entered the airspace around Ronald Reagan Washington National Airport, where helicopter traffic has been restricted since a fatal collision in January.Air traffic controllers instructed Delta Air Lines Flight 1671 and Republic Airways Flight 5825 to abort their landings around 2:30 p.m. Thursday because of the helicopter’s presence, according to the Federal Aviation Administration, which has begun an investigation along with the National Transportation Safety Board.The helicopter was a Black Hawk headed to the nearby Pentagon, the safety board said.Both planes later landed safely, but the episode prompted outrage among officials in Washington.“Our helicopter restrictions around DCA are crystal clear,” Transportation Secretary Sean Duffy said in a social media post, using the airport’s code. He said he would speak to the Defense Department about “why the hell our rules were disregarded.”The Army said in a brief statement that the helicopter had been “directed by Pentagon air traffic control to conduct a ‘go-around,’ overflying the Pentagon helipad in accordance with approved flight procedures,” as it headed to the Pentagon.“The incident is currently under investigation,” the Army said. “The United States Army remains committed to aviation safety and conducting flight operations within all approved guidelines and procedures.”The F.A.A. had restricted nonessential helicopter traffic around the airport, which is just miles from the Capitol and the White House, after a Jan. 29 midair collision between an American Airlines flight and Army Black Hawk helicopter killed 67 people.The episode on Thursday also renewed concerns by lawmakers, many of whom use the airport.Senator Ted Cruz, the Texas Republican who leads the Senate’s committee that handles transportation, said the incident underscored continuing risks posed by military flights near the airport and called for legislation to improve civilian air safety.“Just days after military flights resumed in the National Capital Region, the Army is once again putting the traveling public at risk,” Mr. Cruz said on social media. “Thank God there was a decisive response from air traffic controllers and pilots, or else these two close calls could have resulted in the loss of hundreds of lives.”Senator Maria Cantwell of Washington, the committee’s top Democrat, criticized the military flight’s proximity to commercial traffic.She called it “far past time” for Defense Secretary Pete Hegseth and the F.A.A. “to give our airspace the security and safety attention it deserves.” More

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      Trump Considers Executive Order on College Athlete Payments

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      College athletes have signed deals worth millions of dollars since the N.C.A.A. allowed student-athletes to become paid endorsers.President Trump is considering an executive order to examine payments made to college athletes and whether they have created an unfair system, two people briefed on the matter said Friday.Mr. Trump’s focus on the issue — which he’s talked about in the past, one of the people briefed on the matter noted — was renewed after he spoke with Nick Saban, the famed former University of Alabama football coach, backstage at an event Thursday night in Tuscaloosa, where Mr. Trump delivered an address to graduates.The Wall Street Journal first reported on Mr. Trump’s consideration. The two people who were briefed on it were not authorized to speak publicly.The executive order would address newly expanded opportunities for student-athletes to monetize their athletic careers. Last year, the N.C.A.A., the organization that governs much of college sports, agreed to settle a class-action antitrust lawsuit that had accused it and its member schools of exploiting student-athletes while hoarding the profits of the lucrative college sports industry.The $2.8 billion settlement, which is nearing approval, created a revenue-sharing plan for college athletics in which schools would start directly paying their athletes, a major shake-up of the college sports landscape. The N.C.A.A. has already removed restrictions on athletes monetizing their athletic careers through endorsements and sponsorships — known as “name, image and likeness” payments.The changes initiated an arms race in college athletics, as wealthy teams offered larger and larger compensation packages to lure top talent into their programs. Star players have since signed deals worth millions of dollars.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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      Army Plans a Big Parade That Could Fall on Trump’s Birthday

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      The Army said the celebration was in honor of its 250th birthday but did not mention that the president’s birthday happened to be the same day.The United States Army said on Friday it is planning a parade in Washington with thousands of soldiers and military demonstrations celebrating the 250th anniversary of its founding on June 14, which is also President Trump’s 79th birthday.The parade is set to include 150 vehicles, 50 aircraft and participation from 6,600 soldiers, according to a statement from the Army. A fireworks display and a daylong festival are also planned, including equipment displays, musical performances and a fitness competition alongside the military demonstrations.The Army said the celebration was in honor of its 250th birthday but did not mention that the president’s birthday happened to be the same day.“Given the significant milestone of 250 years,” the statement said, “the Army is exploring options to make the celebration even bigger, with more capability demonstrations, additional displays of equipment, and more engagement with the community.”It was not clear from the Army statement on Friday which events would be held on June 14 and which would happen in the lead-up to the anniversary. The White House last month denied that a military parade was scheduled for Mr. Trump’s birthday. But The Associated Press reported on Thursday that it had reviewed military planning documents that had the parade scheduled for June 14.When asked for clarification on the schedule, a spokeswoman for the Army responded that planning was underway and suggested the festival with the display of military equipment would be held on the 14th.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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      Wisconsin Governor Tony Evers Is Not Afraid of Trump Administration Immigration Warning

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      Thomas Homan, the border czar, had said, “Wait to see what’s coming,” when asked about guidance sent to state workers about interacting with ICE agents.A dispute over a memo about how Wisconsin state workers should interact with federal immigration agents escalated this week into sharply worded warnings from the president’s border czar, Thomas Homan, and the state’s Democratic governor, Tony Evers.Mr. Evers and others interpreted comments by Mr. Homan to suggest that he and other elected officials could face arrest over local immigration policies, leading the Wisconsin governor to say he was “not afraid” of what he described as “chilling threats.”The Wisconsin dispute was the latest chapter in a long-running fight between President Trump’s administration and Democratic-led cities and states over whether local officials must cooperate with federal Immigration and Customs Enforcement agents.In Wisconsin, Republicans had for days pushed for Mr. Evers to rescind a message to state employees, issued on April 18 by the state’s Department of Administration. The single-page memo instructed workers to call a state lawyer if an ICE agent or other federal official visited their workplace. The memo told state workers to stay calm and notify their supervisors, to not immediately answer an agent’s questions and to not give them access to nonpublic areas. Chicago officials issued similar guidance to city workers earlier this year.Read the Memo to Wisconsin State WorkersRead Document 1 pageThe disagreement over the memo intensified outside the White House on Thursday when a person who identified himself as being from The Gateway Pundit, a right-wing website, asked Mr. Homan why the government was not simply arresting “the leaders who are harboring and shielding” people who should be deported.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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      Republicans Wrestle With Trump’s Demands for Tax Cuts

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      House Republicans are planning to include several of President Trump’s campaign promises in the first draft of the bill, which they hope to release soon.It was easy to miss, but last weekend President Trump floated a fundamental rewrite of the American tax code. In a social media post, and again in remarks to reporters, Mr. Trump suggested the United States could stop taxing income under $200,000 and instead rely on revenue from his extensive tariffs.“It’ll take a little while before we do that, but we’re going to be cutting taxes, and it’s possible we’ll do a complete tax cut,” Mr. Trump told reporters on Sunday. “Because I think the tariffs will be enough to cut all of the income tax.”The idea was news to Republicans on Capitol Hill already in the throes of translating Mr. Trump’s impulses for cutting taxes into law.Senator Mike Crapo, a Republican from Idaho who leads the Finance Committee, said he had not heard from Mr. Trump or his staff about the proposal. “So I just don’t know what that’s referencing,” he said.Likewise in the House, where Republicans are preparing to release their first stab at the tax bill in the coming days. “We aren’t having that discussion at all — it’s never come up,” Representative Lloyd Smucker, a Republican from Pennsylvania and a member of the Ways and Means committee, said of not collecting income taxes on earnings under $200,000.Even if they take a pass on Mr. Trump’s most recent notion, congressional Republicans are straining to incorporate several of his previous tax proposals into the legislation. Those include not taxing tips, overtime pay or Social Security benefits, three of Mr. Trump’s campaign pledges that the White House has continued to push in his second term.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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      How Rubio Proved Himself as Trump’s Loyal Foreign Policy Foot Soldier

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      As Secretary of State, Marco Rubio has been Donald Trump’s reliable echo on issues like Iran, Ukraine and Gaza. But Steve Witkoff, the president’s friend, remains the chief negotiator.After President Trump ousted Mike Waltz, his national security adviser, on Thursday night, he settled on someone less hawkish on Russia and willing to remain in lock-step with his foreign policy approach to Iran, Gaza and China.He didn’t have to look far.By making Marco Rubio the top foreign policy adviser in the West Wing, in addition to his main day job as secretary of state, Mr. Trump turned to a one-time political rival who has spent the first three months of the administration as a loyal, globe-trotting foot soldier and a reliable echo of the president’s agenda.Now Mr. Rubio will help run that agenda from inside both the White House and the State Department headquarters — even as the president’s longtime friend, Steve Witkoff, remains the chief negotiator, in charge of finding an end to the wars in Ukraine and Gaza and reaching a deal with Iran on its nuclear weapons program.Leslie Vinjamuri, the director of the U.S. and the Americas Program at Chatham House, a London-based research institute, said Mr. Rubio is “willing to align and to follow with where Trump is. What we’re getting, throughout this administration, is: Loyalty comes first, loyalty to the man, loyalty to the mission.”But by consolidating so much foreign policy power in one person, she added, Mr. Trump risks losing someone who might provide him with different policy perspectives or competing advice.“You just reduce the number of potential points for somebody saying, ‘Actually, whoa. Look what just happened,’” she said. “‘Look at this piece of information that flies in the face of what we suspected.’”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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      For the U.S. and China, the Only Talking Is About Whether to Talk

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      The standoff over terms of negotiations, and whether they are happening, signals that a protracted economic fight lies ahead.As trade tensions flared between the world’s largest economies, communication between the United States and China has been so shaky that the two superpowers cannot even agree on whether they are talking at all.At a White House economic briefing this week, Treasury Secretary Scott Bessent demurred multiple times when pressed about President Trump’s recent claim that President Xi Jinping of China had called him. Although top economic officials might usually be aware of such high-level talks, Mr. Bessent insisted that he was not logging the president’s calls.“I have a lot of jobs around the White House; running the switchboard isn’t one of them,” Mr. Bessent joked.But the apparent silence between the United States and China is a serious matter for the global economy.Markets are fixated on the mystery of whether back-channel discussions are taking place. Although the two countries have not severed all ties, it does seem that they have gone dark when it comes to conversations about tariffs.“China and the U.S. have not held consultations or negotiations on the issue of tariffs,” Guo Jiakun, a spokesman for China’s foreign ministry, said at a news conference last Friday. “The United States should not confuse the public.”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