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in US PoliticsTroops on the streets, Ice thuggery – and prices still climbing: welcome to Trump’s ‘golden age’ | Steven Greenhouse
In his inauguration speech last January, Donald Trump bombastically declared: “The golden age of America begins right now.” Our braggadocious president has stuck to that theme ever since, telling the United National general assembly in late September: “This is indeed the golden age of America.”With the federal government shut down for more than two weeks, the nation more polarized than at any time since the civil war, political violence growing and the job market slowing, it doesn’t feel remotely like a golden age, unless one focuses on Trump’s Louis XIV-like effort to gild as many things as possible in the Oval Office.Decoration spree aside, it in no way feels like a golden age when Trump sends the national guard into Los Angeles and Chicago to fight “the enemy within” or when he says the governor of Illinois and mayor of Chicago should be in jail for opposing his plans to deploy troops to Chicago. I doubt that the 27 Chicago police officers who were accidentally teargassed by Ice agents think it’s a golden age and ditto for the growing number of US citizens Ice has arrested.Nor does the US seem like the shining city upon a hill when Ice agents slam a 79-year-old US citizen to the ground in Los Angeles. Nor when Trump’s Department of Homeland Security posts thuggish videos of stormtrooper-like Ice agents – videos that seem more like Germany in the 1930s than any golden vision of the US as it approaches its 250th birthday.Only a huckster would boast of a golden age when his public approval ratings are deep underwater. According to a CBS/YouGov poll in early October, 58% of the US public disapproves of Trump’s performance, while 42% approve. Another poll found that 62% of Americans believe the country is heading in the wrong direction.As part of his golden vision, Trump promised good times for working-class Americans, but 74% of the US public says the economy is in poor or fair condition and nearly two-thirds oppose his signature policy of tariffs and more tariffs. In a big thumbs down for Trump, 53% of the public says his policies are making the economy worse.Candidate Trump promised that prices would begin falling on his first day back as president, but prices have continued to climb since he returned to office, partly because of the tariffs he’s imposed. What’s more, Trump’s tariff mania has created so much economic uncertainty that job growth has slowed hugely under Trump compared with under Joe Biden. According to Mark Zandi, the chief economist at Moody’s Analytics, there was “essentially no job growth” in September.Trump promised blue-collar Americans he would increase manufacturing and the number of factory jobs, but factory activity has declined for seven straight months, and factory employment has fallen since April, too. There’s nothing golden about any of that.Showing Americans’ increased pessimism under Trump, a Wall Street Journal-Norc poll found in September that the share of Americans who say they have a good chance of improving their standard of living has fallen to just 25%, a record low in surveys taken since 1987.The 10 million Americans who will lose health coverage because of Trump’s One Big (Not So) Beautiful Bill Act probably don’t consider this a golden age. Likewise with the 22 million Americans whose health insurance premiums will double on average, often soaring by thousands of dollars, unless Trump and congressional Republicans extend subsidies for the Affordable Care Act.Scientists complain that Trump is singlehandedly ending America’s golden age of scientific research with his deep, myopic cuts – cuts that could end US leadership in medicine and other vital fields of research. At the same time, Robert F Kennedy Jr is undermining trust in vaccines, with the US seeing the highest number of measles cases since Bill Clinton was in office and signed a law establishing free universal vaccinations for children.It seems like anything but a golden age for justice when the Department of Justice indicts the former FBI director James Comey and the New York state attorney general Letitia James after Trump in effect ordered prosecutors to get them (or get fired). Nor does one feel golden about the attorney general Pam Bondi not only stonewalling a Senate hearing (especially when asked about Trump’s relationship with Jeffrey Epstein), but insulting several senators – she called Adam Schiff of California a “failed lawyer”. In the same crude vein, a White House spokesperson slimed the Illinois governor, JB Pritzker, calling him “an incompetent slob”. It doesn’t look like transparency or civility are part of Trump’s golden age.Trump can’t possibly feel golden about an August poll that found that nearly two-thirds of Americans believe he is corrupt, with 45% viewing him as “very corrupt”.When Trump spoke at the UN in September, the assembled diplomats must have thought it was a dark age for US diplomacy, not a golden one, when Trump berated them by saying: “Your countries are going to hell.” The next day, Britain’s Daily Mirror ran a front-page photo of Trump with the headline: “DERANGED – World’s Most Powerful Man-Baby.”In his inauguration speech, Trump said: “From this day forward, our country will flourish and be respected again all over the world.” But people from many countries are giving low marks to second-term Trump. When Pew asked residents of various countries whether they have confidence that Trump will do the right thing in world affairs, in Canada 77% of respondents said they had no confidence, while 22% had confidence. In Mexico, 91% had no confidence. In Germany 81% had no confidence, while 18% had confidence. In the UK, 62% had no confidence to 37% who had confidence.skip past newsletter promotionafter newsletter promotionSince Trump returned to office, many countries’ views of the US have soured substantially and not just because they’re livid about Trump’s tariff war. It’s harder than ever to view the US as a bulwark of democracy and freedom, considering that Trump has embraced Vladimir Putin, deployed troops to major cities, declared war on leading universities, dispatched masked agents to make mass arrests, and pushed to indict his political enemies. In Mexico, the favorability rating of the US has plummeted 32 percentage points since 2024, to just 29%, while in Canada, it has fallen 20 points to just 34% favorable. In Sweden, the US’s favorability rating is down 28 points to 19%, and in Germany it’s down 16 points, to 33%.I’m sure that many rightwing, “don’t tread on me” Americans don’t see this as a golden age. I can’t imagine they like seeing masked agents snatching people off the streets or Black Hawk helicopters descending on apartment buildings or Ice agents bashing in doors and windows. That’s not what freedom looks like.Even the country music star Zach Bryan – a navy veteran who calls himself “confused” politically – is complaining, with a new song saying Ice “is going to come bust down your door” and “the middle finger’s rising, and it won’t stop showing/ Got some bad news / The fading of the red, white and blue.”Trump, the salesman and showman, always feels the need to boast – to brag that things are the best ever under him. But his high disapproval ratings at home and abroad suggest many people think he is ushering in a dark age – an age of disinformation and division, of suppressing critics and indicting enemies, of taking one authoritarian, anti-democratic action after another.For a lucky few, it is a golden age. For the craftsmen hired to gild Trump’s Oval Office and his humongous new ballroom, it’s certainly a golden payday. As they grow ever richer, the country’s billionaires are no doubt basking in this new gilded age as Trump slashes their taxes, strips away regulations and steers deals to his buddies (like Larry Ellison, the world’s second-richest person). And Trump no doubt thinks it is a golden age for himself as he grabs ever more power, dominates the headlines, enriches himself further and decorates the White House with ever more gold.But to millions of us it feels like the opposite of a golden age as Trump takes a wrecking ball to truth, democracy and the rule of law. In declaring that it is a golden age, Trump is like the fraudster who says: “I have some wonderful, shiny gold I’ll sell you for $4,000 an ounce.” But in truth it’s just worthless fool’s gold.No one should be fooled by Trump’s delusional boasts.
Steven Greenhouse is a journalist and author, focusing on labor and the workplace, as well as economic and legal issues More
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in US PoliticsTrump news at a glance: layoffs for federal workers begin and president threatens China with tariffs
Mass firings of US federal workers have begun, as Republicans work to exert pressure on Democrat lawmakers to end a government shutdown. The White House budget office said the layoffs were “substantial”, with unions for federal workers taking the matter to court. President Donald Trump said of the job losses “it’ll be a lot” and suggested those losing their jobs would be in areas that were “Democrat oriented”.The government shutdown comes as the US president has revived the trade war with China, this time promising to increase tariffs on Chinese imports by 100%. His administration is also considering using visa restrictions and sanctions against countries that support the International Maritime Organization’s “net zero framework” proposal.White House announces federal worker layoffsThe White House announced layoffs of federal workers on Friday, making good on a threat it had made in response to the US government shutdown, which now appears likely to stretch into a third straight week. Russell Vought, the director of the White House office of management and budget, wrote on social media that “RIFs have begun”, referring to the government’s reduction-in-force procedure to let employees go.Read the full storyTrump threatens 100% China tariffsDonald Trump has threatened to impose additional US tariffs of 100% on China from next month, accusing Beijing of “very hostile” moves to restrict exports of rare earths needed for American industry. Wall Street fell sharply after the US president reignited public tensions with the Chinese government, and raised the prospect of another acrimonious trade war between the world’s two largest economies.Read the full storyNational guard troops seen on Memphis streetsNational guard troops were seen patrolling in Memphis for the first time on Friday, as part of Donald Trump’s controversial federal taskforce, amid fierce legal challenges as he was blocked from sending troops to Chicago and a court ruling was awaited in Portland, Oregon.Read the full storyMIT rejects White House proposal to overhaul policiesThe Massachusetts Institute of Technology (MIT) has become the first US university to formally turn down a Trump administration proposal that would overhaul university policies in return for preferential access to federal funding.Read the full storyWhite House slams Trump’s perceived Nobel peace prize snubThe White House has denounced the Norwegian Nobel committee’s decision to award the Nobel peace prize to someone other than Donald Trump.“The Nobel committee proved they place politics over peace,” wrote Steven Cheung, a Trump aide and the White House’s director of communications.Read the full storyWhat else happened today:
Donald Trump had what he has described as a “semiannual physical” at the Walter Reed national military medical center.
Up to 40 US academics have been dismissed or disciplined after rightwing campaigns targeted their comments on Charlie Kirk’s assassination, creating a “climate of fear” on campuses.
Leading New York Democrats have rallied behind Letitia James a day after she was indicted on mortgage fraud charges by a federal prosecutor appointed by Trump.
Catching up? Here’s what happened on 9 October 2025. More138 Shares156 Views
in US PoliticsBoom time for US billionaires: why the system perpetuates wealth inequality
To many Americans, the economy of the past five years has been rough. Prices have soared yet pay remains stagnant. High mortgage rates have made buying a home a dismal prospect. The unemployment rate has been creeping up.Most people have indicated they are delaying major life decisions, including having kids or switching jobs, because of the instability. But for a very small group of people, the last five years couldn’t have been any better.The wealth of the world’s billionaires grew 54% in 2020, at the height of the pandemic. And even amid all the economic instability, the stock market has only continued to grow. This growth has largely benefited just a small number of Americans: 10% of the population owns 93% of stock market wealth.As uneven as this distribution seems, it’s the system working as it is currently designed.In his new book Burned by Billionaires, inequality researcher Chuck Collins argues that the system that perpetuates wealth inequality is purposely opaque to most Americans.“[The wealthy] have bought their jets, they’ve bought their multiple houses and mansions, but now they’re buying senators and media outlets,” Collins told the Guardian in an interview. “We’re now entering this other chapter of hyper-extraction where the wealthy are preying on the system of inequality.”Collins, a director at the Institute for Policy Studies, is no stranger to wealth. A great-grandson to Oscar F Mayer, the founder of the meat processing brand, he is a member of the Patriotic Millionaires, a non-partisan group of wealthy Americans who advocate for higher taxes for the rich and higher wages.To help others understand what exactly it means to be “wealthy” in the US, Collins borrows a concept from journalist Robert Frank who, in a 2007 book on the rich, imagined the different levels of wealth as “Richistan” villages: Affluent Town, Lower Richistan, Middle Richistan, Upper Richistan and Billionaireville.To modernize the concept, Collins categorizes these “wealth villages” based on income levels. At the lowest tier, Affluent Town, are the 10 million Americans who have a household income of at least $110,000 and an overall wealth of over $1.5m. The villages get more exclusive as wealth goes up: Lower Richistan has 2.6 million households who have wealth between $6m and $13m; Middle Richistan has 1.3 million households who have assets worth an average of $37m; while Upper Richistan, made up of 130,000 Americans (roughly the size of a small city) has between $60m to $1bn in wealth.Altogether, the residents of these villages make up the top 10% of the wealth income distribution, about 14 million Americans altogether, though their experiences vary dramatically.“You could be in Lower Richistan, and you’re still sitting in the coach section of a commercial plane,” Collins said. “Whereas in Upper Richistan, you’re flying in a private jet. That’s a really different cultural experience. You fly private, you have no stakes in the commercial aviation system. You don’t care if the whole system shuts down – you’re set.”The highest hill in “Richistan” is Billionaireville, which is made up of about 800 American billionaires who are some of the world’s wealthiest. The power that this group has far surpasses those who are simply affluent, let alone the average American who doesn’t reside in “Richistan” at all.But Collins thinks the progressive slogan “billionaires shouldn’t exist” or “abolish billionaires” misses the point and has a “whiff of exterminism” to it.“It’s the distinction between individual behaviors and a system of rules and policies,” Collins said. “We should be concerned about an economic system that funnels so much wealth upward to the billionaires.”In other words, it’s not about the billionaires themselves, but about the system that allows them to have an enormous amount of influence and control over society today.To understand how wealth at the billionaire level works, Collins breaks it down into four parts: getting the wealth, defending the wealth, political capture and hyper-extraction.When many Americans think about wealth, they usually think solely about the first step, Collins said. People can create a modest amount of wealth through starting or running a successful business, which could get them residency in Affluent Town.But getting to Billionaireville requires serious investment and strategy in those next three steps. Collins describes what he calls the “wealth defense industry”: the tax layers, accountants and wealth managers who use their expertise to ensure that the super rich are being strategic about their taxes.“Wealth defense professionals use a wide variety of tools such as trusts, offshore bank accounts, anonymous shell companies, charitable foundations and other vehicles to hold assets,” he writes.To further a wealth defense strategy, a family needs political support. Wealth of over $40m translates to political power, Collins says, and can be used to defend wealth and protect its accumulation. He notes that the 2010 landmark supreme court decision Citizens United v Federal Election Commission allowed the wealthy to pump a seemingly unlimited amount of money into elections, which has dramatically increased the power the ultra-wealthy have on politics.The last stage is a different kind of wealth accumulation, one that Collins calls “hyper extraction”, to describe how the wealthy have come to touch nearly every single part of an Americans’ everyday life largely through private equity, which allows wealthy individuals to invest in private companies.“Private equity is looking for those corners of the economy where they can squeeze things a little bit harder,” Collins said. “One thing I don’t think people understand is these billionaire private-equity funds are what happens when so much wealth is parked in so few hands, and they can kind of turn around and say, ‘Where else can we squeeze money out of the economy?’ Healthcare? Great. Mobile home parks? These people can’t go anywhere, [so] you can raise their rents.”Collins writes about the Mars family, best known for their dominance in the confectionary market, with M&Ms, Snickers and Skittles, but who have also cornered the pet industry. Along with being the biggest owner of pet care products in the US, the Mars family owns more than 2,500 pet care facilities across the US.The effects of this inequality go beyond the wealth getting wealthier. It’s about people paying more for their healthcare, rent and vet bills without seeing any meaningful wage increases. And Collins said the pain and frustration of this kind of society can lead to deep discontent.“The most powerful oligarchs understand people are being left behind [and] are economically suffering,” Collins said, adding that Republicans have been good at tapping into a potent “phony populism”.“They can basically project this message that actually, Democrats are elitists. They just care about rich Hollywood executives and woke politics, and the people who care about you are over here. They’re the Donald Trumps of the world. They hear your pain, they feel your pain,” he said.The irony, Collins points out in his book, is that Trump has appointed a string of billionaires to his cabinet. Along with Elon Musk, who had a brief but powerful role as head of the so-called “department of government efficiency”, which oversaw massive cuts to the federal workforce, Trump’s secretaries for commerce, treasury, education and the interior are also all billionaires.His cabinet, along with help from Republicans in Congress, helped him pass his huge tax bill, which will make permanent tax cuts for the wealthy and corporations.While Republican continue to argue that immigration and bad trade agreements are the source of everyone’s economic problems, “the question becomes: Will the Democratic party, which has also been captured by the billionaires and big money, be able to meaningfully address the underlying harms?” Collins said.Democrats, he argues, know what policies are needed to “reverse the updraft of wealth”, including deep changes to the tax system, increasing the minimum wage and strengthening unions.Collins recalled four years ago, when the Democrats were in control of the White House and both chambers of Congress. The Democrats introduced the $4.3bn Build Back Better bill, which would have seen deep investments in the climate crisis, Medicaid, housing and childcare, among other things. The bill was going to be partially funded through changes in the tax system, including higher taxes on the ultra-wealthy and closing out tax loopholes.But while the bill passed the House in November 2021, it ultimately died in the Senate because two centrist Democrats, Joe Manchin of West Virginia and Kyrsten Sinema of Arizona, blocked it. Both Manchin and Sinema have since both left their Senate seats.“It was so, so close, and the bill really did reflect the will of the majority of people who really want lawmakers to solve some of these urgent problems,” Collins said. “Oligarchic power is not about creating so much as blocking. It’s easier to block than it is to make something meaningful happen, but the muscle memory is there. We know what that looks like.”Collins is optimistic that there can be change, but said it would require sustained political momentum.“It may be before we know it that the pendulum swings back, and then it really is about maintaining a sustained really popular movement to make progress on this extreme inequality we’re living in,” he said. “We can fix this. It is fixable.” More
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in US PoliticsAmericans and US food banks brace for Trump cuts: ‘Battling hunger is no longer a priority’
Americans are bracing for the impact of the largest cuts to the government’s food assistance program for low-income people in US history that have begun to take effect as a result of Donald Trump’s One Big Beautiful Bill Act.Effective 1 October, the beginning of fiscal year 2026, funding for Snap-Ed, part of the Supplemental Nutrition Assistance Program (Snap) that provided funding for food banks across the US, is being eliminated. The cuts are part of the sweeping spending bill Trump signed in July.A report this month by the Center on Budget and Policy Priorities noted “some low-income families will see their food assistance terminated or cut substantially (or will be denied benefits) this fall, though most current participants will face cuts when their SNAP eligibility is next recertified,” with estimates that 4 million Americans in a typical month will lose some or all of their Snap benefits when the cuts are fully implemented.A Snap recipient in Camden county, New Jersey, who works as a cake decorator at a small business and requested to remain anonymous, said their Snap benefits were cut off in September without receiving a notice.“Snap was my way to finally not pay half to three-quarters of my paycheck on groceries. Now, I have nothing in my house regularly and it just feels like no one wants to help people any more,” they said. “I only got a little over $110 a month, but it helped tremendously.”They said it’s made it more difficult to work at a job they love, but that doesn’t pay enough.Jessica Griffin of Fort Smith, Arkansas, a mother of three, said she lost her job about five months ago and has struggled to find another, with her family relying on her husband’s income.After rent and utility bills, there isn’t much left over to buy groceries and she doesn’t have reliable transportation to get to food banks, she said.“I used to be able to buy $100 worth of groceries a week to feed a family of five, now even with one child out of the house $100 will only go a couple days,” she said. “The rent rates are so high now as well as groceries that families can barely afford to feed their kids and keep a roof over their heads at the same time. So it almost feels like we have two options, to either live in a house or live on the street and not starve.”View image in fullscreenFunding cuts to states, which will be expected to share costs of Snap for the first time as well as cover more administrative costs, are phased for fiscal years 2027 and 2028, but several provisions and changes to Snap are being implemented as states have to grapple with drastic costs shifted on to them from the federal government.“States don’t have enough administrative staff or capacity to handle this,” said Gina Plata-Nino, interim Snap director at the Food Research and Action Center. “I think we’re on a downward path. Polling and data is showing that one of the biggest obstacles that people are having in being able to eat is just how expensive food is at the moment. This is a direct result of tariffs and other policy choices that the administration has made. It’s something that everyone, regardless of income, can understand.”The looming Snap cuts come as food prices are still rising under the Trump administration and are expected to continue rising due to tariffs and labor shortages in the food industry due to Trump’s immigration policies.From January 2022 to August 2025, overall food cost in the US increased by about 17.8%, according the consumer price index, and has increased 2.0% since January 2025, when Trump took office. Trump’s tariffs are expected to drive further increases, with food prices set to rise 3.4% in the short term and stay 2.5% higher in the long run, according to the Yale Budget Lab.Food banks have been struggling across the US to keep up with demand and manage rising food prices, while bracing for further cuts, higher prices, and a surge in demand once Snap cuts begin taking effect.At a food bank in Charlottesville, Virginia, Jane Colony Mills, executive director of Loaves & Fishes, said the food bank has “experienced a 20% increase in the numbers of people coming for food assistance in 2025, likely driven not only by the cost of groceries in our community, but by the overall cost of living in Charlottesville and Albemarle area.”She noted their food supply has decreased as well, since they rely on food that stores cannot sell, and have also been affected by cuts at the US Department of Agriculture (USDA) to programs that support food banks. Colony Mills noted Snap cuts haven’t taken effect yet in Virginia, but local social service departments are bracing for those reductions or cancellations starting 1 October.“People who rely on these incremental supports will be struggling even more to provide food for their households each month,” she added.In Washington, the Thurston County Food Bank said they are bracing for significant cuts to Snap that will increase demand and make it more difficult to meet the current demand, let alone handle increases. They have already had to lay off staff positions funded by the Snap-Ed program that was cut by the Trump administration.“We have been told to brace for cuts that could be as much as 20% to 25% of the food we received in prior years. For us, 25% is $1m worth of food in 2024 prices, so with rising food costs, we can assume that is a gap of well over a million dollars,” said executive director of the Thurston County Food Bank.Ahead of the cuts to Snap and rising food prices, the Trump administration announced the cancellation of the annual hunger survey that measures food insecurity in the US and food researchers at the USDA were put on leave.USDA deferred comment to a press release, where they claimed “these redundant, costly, politicized, and extraneous studies do nothing more than fear monger.”The decision is viewed by anti-hunger advocates as an effort by the Trump administration to obfuscate the impacts of their cuts to Snap and other policies affecting food insecurity for Americans.“By cancelling the survey, USDA is sending a signal that tracking and battling hunger is no longer a priority,” Eric Mitchell, president of the Alliance to End Hunger, said in a statement. “It is further troubling that the decision comes amid predictions that hunger may increase in the coming months and years. Hunger will not disappear simply because it is no longer tracked.” More
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in US PoliticsTrump says US will impose new tariffs on heavy trucks, drugs and kitchen cabinets
Donald Trump on Thursday announced a new round of punishing tariffs, saying the United States will impose a 100% tariffs on imported branded drugs, 25% tariff on imports of all heavy-duty trucks and 50% tariffs on kitchen cabinets.The US president also said he would start charging a 50% tariff on bathroom vanities and a 30% tariff on upholstered furniture next week, with all the new duties to take effect from 1 October.Drug companies warned earlier this year that Americans would suffer the most if Trump decided to impose tariffs on pharmaceuticals.In 2024, the US imported nearly $233bn in pharmaceutical and medicinal products, according to the Census Bureau. The prospect of prices doubling for some medicines could send shock waves to voters as healthcare expenses, as well as the costs of Medicare and Medicaid, potentially increase.Pascal Chan, vice-president for strategic policy and supply chains at the Canadian Chamber of Commerce, warned that the tariffs could harm Americans’ health with “immediate price hikes, strained insurance systems, hospital shortages, and the real risk of patients rationing or foregoing essential medicines”.“We are already being crushed by the highest prescription drug costs in the world and this will cause them to skyrocket further,” 314 Action, a US advocacy group that tries to elect scientists to office, said in a statement. “If [Trump] goes through with these tariffs, people across the country will die.”Trump had previously suggested that pharmaceutical tariffs would be phased in over time so that companies had time to build factories and relocate production, making the sudden announcement of a 100% tariff more of a shock. On CNBC in August, Trump said he would start by charging a “small tariff” on pharmaceuticals and raise the rate over a year or more to 150% and even 250%.Trump said on Truth Social that the pharmaceutical tariffs would not apply to companies that are building manufacturing plants in the United States, which he defined as either “breaking ground” or being “under construction”. It was unclear how the tariffs would apply to companies that already have factories in the US.Several major pharmaceutical companies, including AstraZeneca, Roche, Novartis, Eli Lilly, and Johnson & Johnson, had already announced plans to invest in or increase manufacturing of their drugs in the US in an attempt to prepare for potential tariffs. Trump’s White House has touted these changes as a win.Markets dropped following the news, as concerns about the impact of Trump’s tariffs mounted. All three main indexes on Wall Street were down, having already fallen every day since Monday.Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Wellington, Taipei and Manila retreated on Friday, with some pharmaceutical companies in Japan and South Korea leading the way.While Trump did not provide a legal justification for the tariffs, he appeared to stretch the bounds of his role as commander-in-chief by stating on Truth Social that the taxes on imported kitchen cabinets and sofas were needed “for National Security and other reasons”.He said the new heavy-duty truck tariffs were to protect manufacturers from “unfair outside competition” and said the move would benefit companies such as Paccar-owned Peterbilt and Kenworth and Daimler Truck-owned Freightliner.“We need our Truckers to be financially healthy and strong, for many reasons, but above all else, for National Security purposes!” Trump added.The new tariffs are another dose of uncertainty for the US economy with a solid stock market but a weakening outlook for jobs and elevated inflation. These new taxes on imports could pass through to consumers in the form of higher prices and dampen hiring, a process that economic data suggests is already underway.“We have begun to see goods prices showing through into higher inflation,” Federal Reserve chair, Jerome Powell, warned in a recent news conference, adding that higher costs for goods account for “most” or potentially “all” of the increase in inflation levels this year.Trump has pressured Powell to resign, arguing that the Fed should cut its benchmark interest rates more aggressively because inflation is no longer a concern.The US Chamber of Commerce urged the department not to impose new tariffs, noting the top five import sources are Mexico, Canada, Japan, Germany, and Finland “all of which are allies or close partners of the United States posing no threat to U.S. national security”.Trump has launched numerous national security inquiries into potential new tariffs on a wide variety of products. He said the new tariffs on kitchen, bathroom and some furniture were because of huge levels of imports which were hurting local manufacturers.skip past newsletter promotionafter newsletter promotion“The reason for this is the large scale ‘FLOODING’ of these products into the United States by other outside Countries,” Trump said.Mexico is the largest exporter of medium- and heavy-duty trucks to the United States. A study released in January said imports of those larger vehicles from Mexico have tripled since 2019.Higher tariffs on commercial vehicles could put pressure on transportation costs just as Trump has vowed to reduce inflation, especially on consumer goods such as groceries.Tariffs could also affect Chrysler-parent Stellantis which produces heavy-duty Ram trucks and commercial vans in Mexico. Sweden’s Volvo Group is building a $700m heavy-truck factory in Monterrey, Mexico, due to start operations in 2026.Mexico is home to 14 manufacturers and assemblers of buses, trucks, and tractor trucks, and two manufacturers of engines, according to the US International Trade Administration.The country is also the leading global exporter of tractor trucks, 95% of which are destined for the United States.Mexico opposed new tariffs, telling the commerce department in May that all Mexican trucks exported to the United States have on average 50% US content, including diesel engines.Last year, the United States imported almost $128bn in heavy vehicle parts from Mexico, accounting for approximately 28% of total US imports, Mexico said.The Japanese Automobile Manufacturers Association also opposed new tariffs, saying Japanese companies have cut exports to the United States as they have boosted US production of medium- and heavy-duty trucks.Reuters and the Associated Press contributed reporting More
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in US PoliticsLisa Cook urges supreme court to reject Trump’s bid to fire her from Fed board
Federal Reserve governor Lisa Cook urged the US supreme court on Thursday to reject Donald Trump’s attempt to fire her, telling the justices the Republican president’s unprecedented move would destroy the central bank’s independence and disrupt financial markets.Lawyers for Cook filed a written response opposing the justice department’s 18 September emergency request to lift a federal judge’s order that blocked Trump from immediately removing Cook, an appointee of Democratic former president Joe Biden, while her legal challenge continues.Granting Trump’s request, her lawyers told the supreme court, “would dramatically alter the status quo, ignore centuries of history and transform the Federal Reserve into a body subservient to the president’s will”.Washington-based US district judge Jia Cobb ruled on 9 September that Trump’s claims that Cook committed mortgage fraud before taking office – allegations that Cook denies – likely were not sufficient grounds for removal under the 1913 law that created the Fed.The US court of appeals for the District of Columbia circuit in a 2-1 ruling on 15 September denied the administration’s request to put Cobb’s order on hold, ruling that Cook likely was denied due process in violation of the US constitution’s fifth amendment.In Thursday’s filing, Cook’s lawyers said the Fed’s “unique history of independence” has helped make the US economy the strongest in the world. Siding with Trump, they wrote, “would signal to the financial markets that the Federal Reserve no longer enjoys its traditional independence, risking chaos and disruption”.Cook, the first Black woman to serve as a Fed governor, sued Trump in August after the president announced he would remove her. Cook has said the claims made by Trump against her did not give him the legal authority to remove her and were a pretext to fire her for her monetary policy stance.Earlier on Thursday, a group of 18 former US Federal Reserve officials, Treasury secretaries and other top economic officials who served under presidents from both parties urged the supreme court in a brief to reject Trump’s petition to allow his attempt to fire Cook.The group included the past three Fed chairs – Janet Yellen, Ben Bernanke and Alan Greenspan – as well as former Treasury secretaries Henry Paulson, Lawrence Summers, Jacob Lew, Timothy Geithner and Robert Rubin. They argued that letting the president remove Cook while her legal challenge to Trump’s action is ongoing would threaten the central bank’s independence and erode public confidence in it.In its filing to the court last week, the justice department wrote: “This application involves yet another case of improper judicial interference with the President’s removal authority – here, interference with the President’s authority to remove members of the Federal Reserve Board of Governors for cause.”Congress included provisions in the law that created the Fed to shield the central bank from political interference. Under that law, Fed governors may be removed by a president only “for cause”, though the law does not define the term nor establish procedures for removal. No president has ever removed a Fed governor, and the law has never been tested in court.Trump has pursued a broad vision of presidential power since returning to office in January.The Cook legal battle has ramifications for the Fed’s ability to set interest rates without regard to the wishes of politicians, widely seen as critical to any central bank’s ability to function independently to carry out tasks such as keeping inflation under control.Trump this year has demanded that the Fed cut rates aggressively, berating Fed chair Jerome Powell for his stewardship over monetary policy as the central bank focused on fighting inflation. Trump has called Powell a “numbskull”, “incompetent” and a “stubborn moron.“Trump on 25 August said he was removing Cook from the Fed’s board of governors, citing the allegations that, before joining the central bank in 2022, she falsified records to obtain favorable terms on a mortgage. In blocking Cook’s removal, the judge found that the 1913 law only allows a Fed governor to be removed for misconduct while in office. The mortgage fraud claims against Cook relate to actions prior to her Senate confirmation in 2022. More
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in US PoliticsTrump wants to rebrand his tax bill as the ‘Working Families Tax Cut’. Don’t be fooled | Steven Greenhouse
Just a few months ago, Donald Trump sought to bamboozle the American people into believing that his One Big Beautiful Bill Act – with its trillions in tax cuts for the rich – was a legislative wonder stuffed with one marvel after another. But a Pew opinion poll in August found that millions of Americans have wised up about the measure and now view it as a big, unbeautiful monstrosity.Many Americans have come to realize that Trump’s not-so-beautiful bill – instead of being filled with good things that benefit average Americans – is overflowing with big tax cuts for the wealthy as well as many unfortunate things that will hurt typical working families. As we saw in the town halls held across the US, many Americans are furious about some painful things that Trump and congressional Republicans inserted into the bill: cuts that will make health insurance more expensive, cuts that reduce food assistance, cuts that make it harder for students from working families to afford college. All this is bad news for working families who struggle to make ends meet.President Trump and his administration can’t hide from the fact that many Americans detest the bill — 46% disapprove of it, while just 32% approve (23% say they’re unsure what they think). What’s more, 33% of Americans “strongly disapprove” of the bill.Alarmed that the bill has become a public relations and political disaster, Trump and his allies have embraced a curious strategy to address that problem. Their strategy is not what you might hope – they’re not seeking to amend the bill to make it less painful for average Americans. Rather, their strategy is slick marketing: to simply rebrand the bill, to make it sound better. The White House is telling Republicans to stop calling it the One Big Beautiful Bill and instead call it the nice-sounding Working Families Tax Cut Bill.Unfortunately, that name is another effort to dupe America’s working families. The bill gives 45% of next year’s tax cuts to the highest-earning 5% of US households, while just 1% of the tax cuts go the lowest-earning 20% of households. Under the bill, far more in net tax cuts, $117bn, will go to the wealthiest 1% of households next year than will go to the bottom 60% ($77bn).If the White House and GOP lawmakers want to be accurate, they should call the bill the Billionaires’ and Millionaires’ Tax Cut Act. The bill gives a $13,622 tax cut to households in the top 10% by income, according to the non-partisan Congressional Budget Office (CBO). The top 0.1% of households (those with income of more than $3.3m a year) will receive annual tax cuts of $103,500 on average, according to the Yale Budget Lab.If you’re wealthy enough to have $15m in assets, the bill is very good for you. Under the bill, the first $15m in an individual’s assets are exempt from the estate tax, nearly triple the $5.5m in pre-Trump days. For couples, the first $30m in assets will be exempt. Does anyone think that these sound like working family tax cuts?Frankly, it would be more accurate to call the bill the Working Families Benefits Cut Bill. Containing a painful $1.4tn in Medicaid and other cuts that Republicans insisted on to help finance their tax cuts for the rich, the bill is filled with benefit cuts that hurt working families. Roughly 15 million Americans will lose health coverage and become uninsured because the bill cuts Medicaid funding and reduces subsidies for Obamacare.Other results of the bill: 4 million people will lose some or all of their food aid, while 4.4 million students from working families might lose all or some of their federal aid to go to college.“Who’s getting hit, who’s bearing the cost? It’s people with low and middle incomes, people that the president and many Republican policymakers promised to serve and support in the last election,” said Sharon Parrott, president of the Center on Budget and Policy Priorities.President Trump is correct that the bill contains some tax cuts for working Americans – for instance, it increases the standard income tax deduction by $750 for individuals and $1,500 for couples. The bad news is that for tens of millions of families, the bill’s benefit cuts, especially on health coverage, outweigh the meager tax cuts that the bill gives non-affluent Americans. In many ways, Trump and GOP lawmakers are making this a shell game – they say you’re benefiting from tax cuts, but the fact is that because of the benefit cuts, millions of working families will end up worse off.According to the CBO, Americans in the bottom 10% by income (averaging $23,751) will end up $1,214 worse off on average per year, while the next lowest 10% (averaging $43,092) will end up $392 worse off per year. Those in the third-lowest tenth ($54,453) will receive a mere $23 annual gain. Those in the fourth-lowest decile ($67,637) will see a very modest net gain of $379. Cutting through all these numbers, this shows that for tens of millions of families, the bill is a net loser or a wash.“This really is a big, beautiful bill for billionaires, but for the poor and the working class in this country, you are actually poorer,” said the representative Brendan Boyle, the top Democrat on the House budget committee.skip past newsletter promotionafter newsletter promotionFor those solidly in the middle class, the bill provides modest gains. Middle-class families earning between $86,000 and $108,000 would receive between $800 and $1,200, around 1% of income, the CBO says.Since we’re discussing taxes, we shouldn’t forget Trump’s massive tariffs – they are unarguably a tax, a sales tax on imports that will hit working-class Americans hardest. The reason: the non-wealthy spend a higher share of their income on imports, whether on furniture, electronics or coffee, than the wealthy do. The Yale Budget Lab found that when one combines the effects of Trump’s tariffs and the One Big Beautiful Bill Act, 90% of American families will end up worse off. Seventy per cent of households will face losses ranging from $780 to $2,570 each year.President Trump boasts that two provisions he championed – no tax on tips and no tax on overtime – will be great for working Americans. But those provisions will be far less helpful than people realize. Just 3% of US workers receive tips, and one-third of them earn so little that they don’t pay federal income taxes. So no tax on tips won’t help them.No tax on overtime won’t help workers nearly as much as many think. The deduction applies only to the “half” in “time and a half” overtime pay. So if a worker earns $20 an hour and receives $30 per overtime hour, that worker can deduct only the $10 premium per overtime hour, not the full $30. John Ricco, an analyst at the Yale Budget Lab, says that for the bottom 40% of Americans by income, no tax on overtime will mean “less than a $10 tax cut per year” – “essentially a rounding error”.By seeking to call this bill the Working Families Tax Cut Bill, Trump and the GOP are again seeking to hold themselves out as the best friends of American workers, even though Trump, since returning to office, has taken dozens of anti-worker actions. He halted enforcement of a regulation that protects miners from a debilitating, often fatal lung disease. He has stripped 1 million federal employees of their important right to bargain collectively and has torn up union contracts for hundreds of thousands. He fired the chair of the National Labor Relations Board, leaving the nation’s top labor watchdog without a quorum to protect workers from companies’ unlawful anti-union actions. Trump is also pushing to end minimum wage and overtime protections for 3.7 million home-care and domestic workers.People who care about working families – whether union leaders, clergy or community leaders – need to make clear to the public that the One Big Beautiful Bill Act hurts many working Americans. It is a bait and switch, telling working families that it’s good for them even as it cuts benefits for millions of working Americans while lavishing big tax cuts on the wealthiest Americans.
Steven Greenhouse is a journalist and author, focusing on labour and the workplace, as well as economic and legal issues More
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in US PoliticsThe American system is badly broken | Bernie Sanders
Let’s take a deep breath and, for one moment, forget about Donald Trump, Jimmy Kimmel, the UN, Charlie Kirk, Gaza, a government shutdown and the other crises that we face.Let’s talk instead about the reality which the corporate-controlled media and the corporate-controlled political system don’t talk about very much.What we are witnessing right now is the rise of two Americas. One for the billionaire class. And one for everybody else.In one America, the richest people are becoming obscenely richer and have never, ever had it so good. That America is overflowing with unimaginable wealth, greed and opulence that makes the Gilded Age seem very modest.And then there is a second America – an America where a majority of people live paycheck to paycheck, struggling to secure the very basic necessities of life – food, healthcare, housing and education.The simple truth is that never before in our history have so few had so much wealth and power while so many live in economic desperation.In the first America, one man – Elon Musk, the richest man in the world, worth more than $480bn, owns more wealth than the bottom 52% of American households. After spending $290m to put Trump back into the White House, Musk has become more than $180bn richer since election day. That’s a pretty good return on his investment.But that’s apparently not good enough for Musk. In order to keep him “motivated” as CEO, Tesla’s board proposed giving him a $1tn pay package if he meets certain goals. A trillion dollars.Jeff Bezos, the fourth wealthiest person in the world, has a fortune of $233bn. He can sail to Venice on his $500m yacht for his reported $50m wedding, where he gave his wife a $3m-$5m ring – because, among other things, his effective tax rate is just a reported 1.1%.Mark Zuckerberg, the third richest person in the world, is worth $258bn. He has spent $110m to buy 11 homes in Palo Alto, California, to create his own private compound, and another $270m for more than 2,300 acres in Hawaii with a 5,000 sqft underground bunker and three yachts reportedly worth more than $530m.Larry Ellison, the second wealthiest person in the world – worth $377bn – recently became nearly $100bn richer in a single day. He owns a private island in Hawaii and a fleet of jets, and now he’s reportedly trying to buy up major media companies such as Warner Bros and CNN.Together, these four men alone are worth more than $1.3tn. But it’s not just them. The top 1% now owns more wealth than the bottom 93%.The 1% lives in a world completely removed from ordinary Americans. They don’t ride overcrowded subways to get to work or sit in traffic jams to get home. They fly on private jets and helicopters they own. They live in mansions all over the world, send their kids to the most elite private schools and vacation on their own islands. And, for fun, some spend millions to fly off into space on their own rocket ships.And then there is the other America, where the vast majority of our people live. For them, the economy is not just broken, it is collapsing. In this America, despite a massive increase in worker productivity, real weekly wages for the average American worker are lower today than they were more than 52 years ago.In this America, people are unable to afford a doctor’s visit (if they’re lucky enough to find one); are paying over half of their limited incomes on rent or a mortgage; and are unable to afford the outrageous cost of childcare or send their kids to college. In this America, the price of vegetables, fruit and other healthy foods is beyond the budget for many.For most Americans, the system is not just broken, it is collapsing and is increasingly resembling life in the third world.Everyone needs healthcare. Yet today, more than 85 million Americans are uninsured or underinsured – a number that will rise by at least 15 million under Trump’s so-called big, beautiful bill.Everyone needs housing. Yet today, nearly 800,000 Americans are homeless and more than 20m households pay more than 50% of their limited incomes on rent or a mortgage. Since 2000, average rents have more than doubled and the median price of a home has soared to more than $435,000.Everyone needs a decent education. Yet today, our childcare system is broken and wildly expensive. Many of our public schools are dilapidated with teachers underpaid and underappreciated, and American students are falling behind in math, science and reading compared with their international peers. College education is unaffordable for millions and vocational schools fail to train the workers we desperately need.Everyone needs a secure retirement. Yet, nearly half of older workers have no retirement savings and no idea how they will ever retire with any shred of dignity or respect. Meanwhile, 22% of seniors are trying to survive on an income of less than $15,000 a year.Enough is enough.As supreme court justice Louis Brandeis said in 1933: “We can have democracy in this country or we can have great wealth concentrated in the hands of the few, but we cannot have both.”That warning is even more relevant today.In this pivotal moment in American history, we must create a government and an economy that works for all, or we will continue sliding into oligarchy – where the billionaire class controls our government, our economy and our future.Let me say to my fellow Americans: I know day-to-day life can take a toll, but we must not allow ourselves to fall into despair. If we do not allow ourselves to be divided up by Trump and his oligarch allies, we can change the path we are on.The choice is clear. Let’s stand together for democracy and justice. More

