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    Trump’s latest tariffs ‘are real’ unless deals improve, economic adviser says

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    Donald Trump has seen some trade deal offers and thinks they need to be better, Kevin Hassett, the White House economic adviser, said on Sunday, adding that the president will proceed with threatened tariffs on Mexico, the European Union and other countries if they don’t improve.“Well, these tariffs are real if the president doesn’t get a deal that he thinks is good enough,” Hassett told ABC’s This Week program. “But you know, conversations are ongoing, and we’ll see where the dust settles.“Hassett told ABC’s This Week program that Trump’s threatened 50% tariff on goods from Brazil reflect Trump’s frustration with the South American country’s actions as well as its trade negotiations with the US.On Thursday, Brazil threatened to retaliate against Trump’s plan with its own 50% tariff on US goods. “If he charges us 50%, we’ll charge him 50%,” Luiz Inácio Lula da Silva, the Brazilian president, told local news outlet Record, a day after Trump threatened to impose steep duties on Brazilian goods.Hassett’s comments come one day after Trump announced on his Truth Social social media platform that goods imported from both the European Union and Mexico will face a 30% tariff rate starting on 1 August, angering European capitals who had thought they had previously reached a deal with Trump. The prior deal would have involved a 10% tariff, five times the pre-Trump tariff, which the bloc already described as “pain”.The German chancellor, Friedrich Merz, on Sunday said he will work intensively with French president Emmanuel Macron and European Commission president Ursula von der Leyen to resolve the escalating trade war with the United States.“I discussed this intensively over the weekend with both Macron and Ursula von der Leyen,” Merz told German broadcaster ARD, adding he had also spoken with Trump about the matter.“We want to use this time now, the two and half weeks until August 1 to find a solution. I am really committed to this,” Merz said.Merz said the German economy would be hit hard by the tariffs, and he was doing his best to make sure US tariffs of 30% were not imposed.Unity in Europe and a sensible dialogue with the US president were now needed, Merz said, although countermeasures should not be ruled out. “But not before August 1,” he said.EU trade ministers are scheduled to meet on Monday for a pre-arranged summit and will be under pressure from some countries to implement €21bn ($24.6bn) in retaliatory measures, which are now paused until 1 August, the same day as Trump’s new deadline.Macron has called on the EU to “defend European interests resolutely” in response to Trump’s threats.French cheese and wine producers have warned of the damaging impact that Trump’s threatened 30% tariffs on imports from the EU would have on the country’s agriculture industry.A 30% duty would be “disastrous” for France’s food industry, said Jean-François Loiseau, the president of food lobby group ANIA, while Francois Xavier Huard, the CEO of dairy association FNIL, said: “It’s a real shock for milk and cheese producers – this is an important market for us.”In the interview with ABC News on Sunday, Hassett also said that Trump has the authority to fire the Federal Reserve chair, Jerome Powell, for cause if evidence supports that, adding that the Fed “has a lot to answer for” on renovation cost overruns at its Washington headquarters.Any decision by Trump to try to fire Powell over what the Trump administration calls a $700bn cost overrun “is going to depend a lot on the answers that we get to the questions that Russ Vought sent to the Fed”, Hassett said.Vought, the White House budget director, last week slammed Powell over an “ostentatious overhaul” of the Fed’s buildings and answers to a series of questions. Trump has repeatedly said that Powell should resign because he has not lowered interest rates, and the Wall Street Journal reported this week, citing anonymous sources, that Hassett is vying to succeed him as the Fed chair. More

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      Ice is about to become the biggest police force in the US | Judith Levine

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      On Thursday, congressional Republicans passed Trump’s 1,000-page budget, and the president signed it on Saturday. The rich will get obscenely richer. The poor will be hungrier and sicker, work more precarious, and the planet unrelentingly hotter. The symmetry is elegant: cuts to healthcare and food programs average about $120bn each year over the next decade, while the tax cuts will save households earning more than $500,000 about $120bn a year.Trump got what he wanted. But enriching himself and his wealthy friends at the expense of everyone else has long been his life purpose. It was not until he became president, with the Heritage Foundation’s wonks, the deportation czar Stephen Miller, and six loyal supreme courtiers behind him, that he could reshape the US in his own amoral, racist, violence-intoxicated image. In fact, the latter goal may be dearer to him than the former.The night before the Senate vote, JD Vance summed up the administration’s priorities: “Everything else,” including the Congressional Budget Office’s deficit estimates and “the minutiae of the Medicaid policy”, he posted, “is immaterial compared to the ICE money and immigration enforcement provisions”.The vice-president’s indifference to the lives of millions of Americans – particularly to the class of Americans from which this self-described “hillbilly” hails – enflamed the Democrats and the left. But his comment also woke everyone up to another major set of appropriations in the budget. As Leah Greenberg, co-chair of the progressive activist group Indivisible, put it on Twitter/X: “They are just coming right out and saying they want an exponential increase in $$$ so they can build their own personal Gestapo.”The press had been focused on the wealth gap the budget turns into the San Andreas fault. It had been dutifully mentioning increases in funding for the military – to an unprecedented $1.3tn – and “border security”.Set aside for a moment that phrase’s implication, that the US is being invaded – which it isn’t – and it is still not apt. The jurisdiction of the federal police force that this budget will finance promises to stretch far beyond immigration; its ambitions will outstrip even the deportation of every one of the nearly 48 million immigrants in the country, including the three-quarters of them who are citizens, green-card holders or have temporary visas.The colossal buildup of Immigration and Customs Enforcement (Ice) will create the largest domestic police force in the US; its resources will be greater than those of every federal surveillance and carceral agency combined; it will employ more agents than the FBI. Ice will be bigger than the military of many countries. When it runs out of brown and Black people to deport, Ice – perhaps under another name – will be left with the authority and capability to surveil, seize and disappear anyone the administration considers undesirable. It is hard to imagine any president dismantling it.Ice will receive $45bn for immigrant detention, to be spent over four years – more than the Obama, Biden and first Trump administrations combined. The agency says it is planning on a total of 100,000 beds. But grants to the states loosely slated for “enforcement” total $16.5bn. If they use the money to build and lease more detention camps, the American Immigration Council estimates, capacity could reach 125,000, just under the population of the federal prisons.Dipping into a pot totaling $170bn, the Department of Homeland Security intends to hire 10,000 new Ice agents, bringing the total to 30,000, as well as 8,500 border patrol agents. For comparison, the FBI has about 23,700 employees, including 10,000 special agents.Like Ice’s budget, DHS’s is fat with redundancies: $12bn to DHS for border security and immigration; $12bn to Customs and Border Protection for hiring, vehicles and technology; $6.2bn for more technology. And then there’s over $45bn to complete the jewel in the king’s crown: Trump’s “beautiful” border wall. That’s on top of approximately $10bn spent during his first term for a project he promised would cost less than $12bn – and be bankrolled by Mexico.To balance the expenses of the hunt, the government will raise revenue from its prey. The cruelty written into the fees seems almost an afterthought. According to the New York Times’s breakdown, for a grant of temporary legal residence, for instance, a refugee pays $500 or $1,000, depending on whether they are fleeing armed conflict or humanitarian crisis. There’s a new $250 fee to apply for a visa for a child who’s been abused, abandoned or neglected by a parent.Immigrants must fork over as much as $1,500 for status adjustments ordered by a judge. And if they are arrested after a judge’s removal order for missing a hearing, they will be charged $5,000. The budget does not specify whether you pay for a downward adjustment to your status or what it costs to be snatched when you do show up at court, which is now regular Ice procedure.Observed as from a Google satellite, the outlines of a wide-ranging, increasingly coherent police state come into focus. The boundaries between federal and local, military operations and civilian law enforcement are smudged. During the anti-Ice protests in Los Angeles, Trump federalized the national guard to put down an uprising that didn’t exist, and an appeals court let him. The marines, restricted by the Posse Comitatus Act from civilian law enforcement, detained a US citizen anyway. To circumvent the prohibition against deploying the military to enforce immigration law, the president declared an “invasion” at the southern border, and the Pentagon took more territory under its control. Last week it added 140 miles of land to the marine air station in Arizona and has announced plans for 250 miles more, in Texas, under the air force’s aegis. Heather Cox Richardson reports that national guard troops have been deployed by Governor Ron DeSantis to “Alligator Alcatraz”, the new immigrant lockup in the Florida Everglades. Two hundred marines have been sent to Florida to back up Ice, and Ice agents will be stationed at marine bases in California, Virginia and Hawaii. The military budget earmarks $1bn for “border security”.A budget is the numerical representation of its makers’ values. So the upward redistribution of wealth that this budget exacerbates and the police state it invests trillions of dollars in are of a piece. What connects them is not just the profit to be made building, leasing and managing the infrastructure. When people lack food, medicine and housing, when public spaces deteriorate and families have little hope of security, much less mobility, rage and crime rise. And when that happens, the police – whether Ice or the marines, local cops or private security officers – will be mobilized to put down dissent and protect the oligarchs’ property from a desperate populace.

      Judith Levine is Brooklyn-based journalist, essayist and author of five books. Her Substack is Today in Fascism More

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      Trump takes on the Fed – but he has little power over central bank, economists say

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      For months, Donald Trump has ranted on social media and, at one point, threatened to fire the Federal Reserve chair, Jerome Powell. Last week, he took on a new, unusual tactic: a handwritten note.“You have cost the USA a fortune and continue to do so. You should lower the rate – by a lot!” Trump wrote to Powell, whom he calls “Too Late” in one of his less compelling nicknames.That Trump has targeted the Fed isn’t surprising. In the midst of Trump’s trade war, consumers and business owners alike have expressed anxiety about the economy. The stock market tanked in April, when the president announced the highest of his tariffs, and only went on the upswing when he pulled back the bulk of his levies.The Fed has the ability to sway the US economy through its ability to adjust interest rates. When rates are high, as they have been for the last few years, borrowing money becomes more expensive. This means higher rates for mortgages, business loans, credit card debt and more. People are less likely to invest when interest rates are high, which can slow activity in the economy. The Fed lowering interest rates would excite investors and spur economic activity, but the price could be steep in the long run.But how much sway does Trump really have over the Fed?While Trump’s aggression toward the Fed, particularly his personal attacks against Powell, are a remarkable departure from the relationship a US president typically has with the Fed, economists say the structure of the central bank limits the amount of power Trump actually has – at least in the short term.Historically, the Fed has been a nonpartisan, independent central bank within the federal government. Economists have found that countries without central banks are prone to high inflation and unemployment.“A central bank’s independence is pretty much the only thing macroeconomists know of that’s a free lunch,” said Jason Furman, a former economic adviser to Barack Obama. “When you look at authoritarian leaders that have effectively taken over the central banks, like in Turkey, you can end up with 70% inflation rates and really, really big economic problems.”In late June, Trump told reporters that he has zeroed in on “three or four people who I’m going to pick” to replace Powell. When the treasury secretary, Scott Bessent, whose name has been floated, was asked if he would take the job, Bessent said: “I will do what the president wants.”That the White House is already talking about replacing Powell almost a year out from the end of his term has raised concerns that a new appointee would act as Trump’s “shadow chair”, or someone who has power over Powell before he leaves office.But those familiar with the Fed’s structure say that a powerful “shadow chair” is unlikely, especially since the Fed’s structure encourages consensus among its leaders.When setting interest rates, the Fed chair doesn’t act alone. The chair is one of 12 members of the Federal Open Market Committee (FOMC), which meets eight times a year to vote on any adjustments to the interest rate.The amount of control Trump has over who gets on to the FOMC is limited. The committee has seven Fed governors who serve 14-year terms. Those governors are appointed by the president and confirmed by the Senate. The other five members are presidents of regional Federal Reserve banks, who are selected within the Federal Reserve system.During the next four years, because of upcoming term limits, Trump will have the ability to appoint two of the 12 members of the FOMC – what would be a small fraction of the committee.“They’re going to have a hard time persuading other people on the committee to go along with anything like what Trump wants,” Furman said.skip past newsletter promotionafter newsletter promotionRyan Sweet, chief US economist for Oxford Economics, said that Fed governors on the FOMC already voice dissenting views on the economy in public, but come together to form a consensus during their meetings.“It’s built [into the Fed] that they go into a meeting and they’ve got to come to a consensus on what the outcome is,” Sweet said.And even though Trump may want to replace Powell before his term is up, the supreme court signaled that the president can’t constitutionally fire him. Sweet pointed out that the court’s preemptive protection of the Fed chair has likely soothed stock markets, which had gone into a panic when Trump first threatened to oust Powell.Powell, whom Trump first appointed in 2018, has publicly resisted the president’s efforts to sway the Fed. He has said he would not step down if Trump asks and has said the Fed will not lower interest rates prematurely, at risk of raising inflation.In his most pointed statement against Trump’s economic policies, Powell said that the Fed paused interest rate cuts “when we saw the size of the tariffs”.“Essentially all inflation forecasts for the United States went up materially as a consequence of tariffs,” Powell said. “We didn’t overreact, in fact we didn’t react at all.” This article was amended on 7 July 2025. Powell said the Fed paused interest rate cuts due to Trump’s tariffs, not interest rate increases. More

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      ‘It’s harsh. It’s mean, brutal’: Trump bill to cause most harm to America’s poorest

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      Last November, Donald Trump made a solemn vow to all Americans: “Every citizen, I will fight for you, your family and your future every single day.” Eight months later, Trump is vigorously backing many policies that will mean pain for millions.Trump has pushed to enact the Republican budget bill, which would make significant cuts to Medicaid, Obamacare, and food assistance, and would do the greatest damage to those Americans struggling hardest to make ends meet – the 30% of the US population that lives in households earning under $50,000 a year.Even as Trump and Republican lawmakers are rushing to cut over $1.4tn in health and food assistance for non-affluent Americans, Trump continues to pressure Congress to extend over $3tn in tax cuts that disproportionately help the wealthy and corporations.Trump has embraced these Robin-Hood-in-reverse policies, even though it was voters earning less than $50,000 a year who delivered victory to him last November. They favored him over Kamala Harris by 50% to 48%, according to exit polls, while Trump and Harris tied among voters earning $50,000 or more a year.Several social policy experts said Trump has engaged in hypocrisy at best and betrayal at worst when it comes to the working-class and blue-collar Americans he promised to fight for. Speaking about the Republicans’ “big, beautiful” budget bill, Sharon Parrott, president of the Center for Budget and Policy Priorities, said: “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.”View image in fullscreenThe budget bill would mean a net financial loss for the bottom 30% of American households by income – after factoring in its tax provisions and cuts in benefits. The House bill would hit the lowest-earning 10% of Americans hardest: for them, it would mean a painful $1,600 cut in income on average (a 3.9% drop), according to the Congressional Budget Office (CBO). At the same time, the Trump-backed bill would be a boon to wealthy households – it would mean a $12,000 increase in net income, on average, for households in the top 10%, those earning above $692,000 a year. According to the Yale Budget Lab, the top 0.1% – those with income over $3.3m – would receive tax cuts of $103,500 on average.The CBO says the income of the bottom 10% tops off at $22,868 (before factoring in government transfers). The second lowest decile earns from $22,868 to $43,137; the third decile earns up to $55,628; and the fourth up to $68,601.The Yale Budget Lab found that the bottom 20% of US households would see their incomes drop by 2.9% on average over the next decade, and the second lowest quintile – moderate-income households – would suffer a 0.4% loss of income on average. But the richest 20% would see their incomes rise by 2.3%. Those in the top 1% would see their incomes climb by $29,585 on average.Trump is demanding these big tax cuts for the rich even though the CBO says the budget bill will increase the federal debt by $3.3tn – a move that will push up interest rates and make mortgages and home-buying more expensive.According to the Institute of Taxation and Economic Policy, a left-leaning thinktank, the $121bn tax cuts that would go just to the richest 1% next year are significantly more than all the tax cuts that would go to the bottom 60% of Americans in terms of income.The poorest 20% of Americans would receive just 1% of the bill’s tax cuts next year, while the highest earning 5% would receive 44% of the cuts.Last week, Trump urged lawmakers to enact the bill, saying: “There are hundreds of things in there. It is so good.” At a news conference, the president said the more than $1tn in Medicaid and food assistance cuts wouldn’t hurt anyone.“It won’t affect anybody,” he said. “It is just fraud, waste and abuse.”But Parrott took a sharply different view: “The bill stands alone historically for its unique upside-down mix of large tax cuts for the top, deep cuts that affect low- and middle-income people, and massive increases in deficits and debt.”John Ricco, the Yale Budget Lab’s associate director of policy analysis, said: “It’s unambiguous that low- and moderate-income Americans will be worse off on average under the budget bill, and that’s principally because the cuts in Medicaid and Snap [the Supplemental Nutrition Assistance Program] would by definition fall most heavily on these groups,” Ricco said.Jeanne Lambrew, the Century Foundation’s director of health policy reform, estimates that at least 16 million Americans will lose health coverage because of the budget bill – refuting White House claims that “no one will lose coverage”. Lambrew said the bill would cause a more than 50% increase in the number of uninsured nationwide, to nearly 45 million people.What’s more, the Trump-backed plan sharply reduces Affordable Care Act subsidies, and that will force millions of Americans to either drop coverage or pay far more for coverage. Millions of Americans will find it harder to obtain healthcare, with many forced to take on far more medical debt.While Trump and many Republicans say the Medicaid cuts are all about reducing “waste, fraud and abuse”, Lambrew calculates that a mere 3.5% of the $1tn in healthcare cuts come from cutting waste and abuse. “What Trump has been saying is, ‘We’re not cutting Medicaid. We’re just cutting fraud.’ That’s gaslighting.” Lambrew said.Archbishop Timothy Broglio, president of the US Conference of Catholic Bishops, sent the Senate a letter that harshly criticized the budget bill. “As Pope Leo XIV recently stated, it is the responsibility of politicians to promote and protect the common good, including by working to overcome great wealth inequality,” he wrote. “This bill does not answer this call. It takes from the poor to give to the wealthy.”According to a Quinnipiac University poll, only 27% of registered voters support the GOP budget bill, while 53% oppose it. A Fox News poll found that 38% support the bill, while 59% oppose it.The House bill’s deep cuts in food benefits will cause 7 million people, including over 2 million children, to lose food aid or have their food aid cut significantly. The Trump-supported bill also makes sharp cuts in Pell grant awards. The Center for American Progress says this means 4.4 million students from low- and moderate-income families could lose some or all of their federal grant aid.In another blow to Americans earning under $50,000, Trump pushed to have the budget bill eliminate the “Low-Income Home Energy Assistance Program”, which, as one website put it, “keeps poor people from freezing to death at home”. Killing the program would end heating subsidies for 6 million Americans, but so far congressional Republicans have spared the program and not bowed to Trump on this.View image in fullscreenIn another blow to blue-collar Americans, the bill would undo much of Joe Biden’s efforts to speed the creation of clean-energy industries, and that could put hundreds of thousands of potential jobs at risk, many of them factory jobs.“In this bill, folks in Congress went out of their way not to give anything to low-income people,” said Chuck Marr, vice-president for federal tax policy at the Center for Budget and Policy Priorities. He noted that in previous tax cut bills that favored the rich, GOP lawmakers made sure to include some sweeteners for low- and moderate-income Americans.“But in this bill,” Marr said, “folks in Congress said: no, we’re going to go after these people. They’re going after healthcare and food, and these are the people who are also going to get hammered by Trump’s tariffs.” Lower-income people spend a higher percentage of their income on goods.“This bill is a major shift,” Marr added. “They’re taking away from poor people and working-class people and channeling it to very high-income people. I think it’s punitive. It’s harsh. It’s mean, brutal.”Trump’s tariffs would also hit less affluent Americans hardest. One study found that Trump’s planned tariffs would cause the bottom 20% of households to pay up to 5.5% of their income toward tariff-caused higher prices. That’s more than two and a half times the percentage that those in the top 20% would pay (2.1% of income).Trump has repeatedly boasted that the bill contains several provisions he championed to help working-class Americans. At a White House event to promote the bill, he pointed to a DoorDash driver from Wisconsin who was on hand to help make his case that the “no tax on tips” provision would help workers.But tax experts say that provision will help only a tiny fraction of those earning under $50,000. Only 4% of workers in the bottom half by income are in tipped jobs. Moreover, nearly two-fifths of tipped workers are already earning so little that they don’t pay federal income taxes.“Given how the current income tax system works, this provision will provide little or no benefit to those workers,” said Ricco. “Those workers tend to have low incomes, and the US system doesn’t basically tax their incomes, and this won’t offer them any additional tax reduction.” In other words, the server making $100,000 a year at a high-end restaurant will benefit substantially from no tax on tips, while the hotel housekeeper or 20-hour-a-week waiter at a diner making $25,000 a year will be helped little or not at all.As for Trump’s much-ballyhooed “no tax on overtime” provision, that, too, will do little for those earning under $50,000, Ricco said. “That provision is really geared to middle- and upper-middle groups,” he said. “People in the bottom 50% aren’t paying much income tax, and so no tax on overtime wouldn’t benefit them much. People in the bottom 40%, they’re often in a precarious employment situation. They’re generally not working 45 or 50 hours a week.”Ricco estimated that for Americans in the bottom 40% by income, the no tax on overtime provision will mean “less than a $10 tax cut per year”. “It’s essentially a rounding error,” he said.Republicans boast that increasing the child-tax credit will help millions of struggling families – the House bill would increase that credit, now $2,000, to $2,500, while the Senate raises it to $2,200. Under current law, one in four children – about 17 million – are ineligible to qualify for the full $2,000 credit because their family’s income is too low to qualify for the full credit. A two-parent family with two children needs to earn over $48,000 to obtain the full credit.Under the House bill, a single parent with two children who earns $16,000 a year would get no additional tax credit, while a married couple with two kids and a $400,000 income would see their tax credit jump by $1,000.With their eagerness to cut the social safety net, Republicans seem to be treating millions of Americans who earn less than $50,000 as undeserving takers. “People earning under $50,000 are major targets of the Republican agenda. Their health coverage is targeted. Their food security is targeted,” said Marr. “They are left out of key provisions expanding tax cuts, like the child tax credit. They are most at risk from the Republican tariffs. They’ll be hurt across the board.”Marr said the budget bill treats “these people very harshly”.“It’s the harshest bill we’ve ever seen since budget deficits became an issue 40 years ago,” he said. “This is the first bill that simultaneously targets programs for poor people and working-class people to pay for it, and then takes that money to pay for tax cuts for very wealthy people. It makes poor and working-class people worse off. That’s not been done before.” More

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      The Trump-Musk feud exposes America’s wealth-hoarding crisis | Gabriel Zucman

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      As the world watches Donald Trump and Elon Musk publicly fight over the sweeping legislation moving through Congress, we should not let the drama distract us. There is something deeper afoot: unprecedented wealth concentration – and the unbridled power that comes with such wealth – has distorted our democracy and is driving societal and economic tensions.Musk, the world’s richest man, wields power no one person should have. He has used this power to elect candidates that will enact policies to protect his interests and he even bought his way into government. While at the helm of Doge, Musk dramatically reshaped the government in ways that benefit him – for instance, slashing regulatory agencies investigating his businesses – and hollowed out spending to make way for tax cuts that would enrich him.Musk is just one example of the ways in which unchecked concentration of wealth is eroding US democracy and economic equality. Just 800 families in the US are collectively worth almost $7tn – a record-breaking figure that exceeds the wealth of the bottom half of the US combined. While most of us earn money through labor, these ultra-wealthy individuals let the tax code and their investments do the work for them. Under the current federal income tax system, over half of the real-world income available to the top 0.1% of wealth-holders (those with $62m or more) goes totally untaxed. As a result, billionaires like Elon Musk and Jeff Bezos have gotten away with paying zero dollars in federal income taxes in some years, even when their real sources of income were soaring.On the other side, millions of hard-working Americans are struggling to make ends meet. Their anxiety is growing as tariffs threaten to explode already rising costs.A broken tax code means unchecked wealth-hoarding. The numbers are staggering: $1tn of wealth was created for the 19 richest US households just last year (to put that number into perspective, that is more than the output of the entire Swiss economy). That was the largest one-year increase in wealth ever recorded. I have studied this rapidly ballooning wealth concentration, and like my colleagues who focus on democracy and governance, I am alarmed by the increasingly aggressive power wielded by a small number of ultra-wealthy individuals.The good news is, hope is not lost. We can break up this dangerous concentration of wealth by taxing billionaires. There is growing public support for doing just this, even among Republican voters. A recent Morning Consult poll found that 70% of Republicans believed “the wealthiest Americans should pay higher taxes”, up from 62% six years ago.With many of Trump’s 2017 tax cuts for the wealthy set to expire this year, legislators have an opportunity to reset the balance driving dangerous wealth-hoarding. Rather than considering raising taxes on middle-class Americans or even households earning above $400,000, they must focus on the immense concentration of wealth among the very top 0.1% of Americans. This would not only break up concentrated wealth, but also generate substantial revenue.One mechanism for achieving this goal is a wealth tax on the ultra-wealthy. The Tax Policy Center recently released an analysis of a new policy called the Five & Dime tax. This proposal would impose a 5% tax on household wealth exceeding $50m and a 10% tax on household wealth over $250m. The Five & Dime tax would raise $6.8tn over 10 years, slow the rate at which the US mints new billionaires, and reduce the billionaires’ share of total US wealth from 4% to 3%.While breaking up dangerous wealth concentration is reason enough to tax billionaires, this revenue could be invested in programs that support working families and in turn boost the economy. Lawmakers could opt for high-return public investments like debt-free college, helping working families afford childcare, expanding affordable housing, rebuilding crumbling infrastructure, and strengthening climate initiatives.Ultimately, taxes on the ultra-rich could transform American society for the better and grow the economy by discouraging unproductive financial behaviors and promoting fair competition – leading to a more dynamic and efficient system.Critics will inevitably claim such a tax would stifle economic growth or prove too challenging for the IRS to implement. But in our highly educated nation, the idea that growth and innovation comes from just a handful of ultra-wealthy individuals does not withstand scrutiny. And while there are challenges for administering any bold proposal, America has always been up for a challenge.After witnessing the consequences of billionaire governance firsthand under this administration, Americans understand what’s at stake. We are seeing how unchecked, astronomical wealth has corrupted American democracy and stifled the economy. It’s not too late to act. Now it’s time for lawmakers who care about the country’s future to embrace solutions that empower everyone, not just the few at the top.

      Gabriel Zucman is professor of economics at the University of California Berkeley and the Paris School of Economics More

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      Trump’s tariffs have become his Vietnam – and the right is breaking ranks | Sidney Blumenthal

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      Donald Trump’s trade war has become his quagmire: legal, economic and political. On 28 May, the court of international trade ruled his tariffs exceeded his constitutional authority. Point by point, the decision decimated Trump’s arguments as flimsy and false, implicitly castigated the Republican Congress for abdicating its constitutional responsibility, and reminded other courts, not least the supreme court, of the judicial branch’s obligation to exercise its authority regardless of the blustering of the executive and the fecklessness of the legislative branches.Trump’s tariffs, along with his withdrawal of active support for Ukraine and passivity toward his strongman father figure Vladimir Putin, have broken the western alliance, forcing the west to make its own arrangements with China, and cementing the idea for a generation to come that the United States is an untrustworthy and unstable partner.On the economic front, Trump’s tariffs have already begun to increase inflation, shutter trade, devalue the dollar, and undermine manufacturing. They will soon create shortages of all sorts of goods, ruin small business, and force layoffs that bring about stagflation that has not been seen since the 1970s, which was then the result of an external oil shock, not self-harm. On 3 June, the Organization for Economic Cooperation and Development reported that as a result, principally, of Trump’s tariffs, the US will suffer a decline in the rate of growth from what had been forecast this year. “Lower growth and less trade will hit incomes and slow job growth,” the OECD stated.As a political matter, besides being unpopular, Trump’s tariffs, in combination with his assaults on the institutions of civil and legal society, have drawn out the most intelligent and skillful members of the conservative legal establishment, who themselves have been some of the most crucial players in the rise of the right wing, to man the ramparts against him. These are not the familiar Never Trumpers, but newly engaged and potentially more dangerous foes.While corporate leaders uniformly abhor Trump’s tariffs, they have stifled themselves into a complicit silence on the road to serfdom. But Trump’s new enemies coming from the conservative citadel of the Federalist Society are filing brief after brief in the courts, upholding the law to halt his dictatorial march.Trump naturally cannot help but turn everything he touches into sordid scandal. After announcing his “Liberation Day” tariffs, which tanked the stock market, Trump declared a pause during which he promised he would sign, seal and deliver 90 deals in 90 days. But he has announced only a deal with Britain. Most of the deals Trump has seen have been with the Trump Organization. Under the shadow of a threatened 46% tariff, Vietnam, after a visit from Eric Trump, granted a $1bn Trump Tower in Ho Chi Minh City and a $1.5bn golf club and resort near Hanoi with “two championship golf courses”, relative crumbs alongside the billions the Trump family has accrued from across the Middle East, not to mention the $400m jet that his team solicited from Qatar to serve as his palatial Air Force One.Standing before the white marble plinth of the Unknown Soldier at Arlington national cemetery on Memorial Day, 26 May, after reading prepared remarks about “our honored dead” to a gathering of Gold Star families, Donald Trump fell into a reverie about his divine destiny. “I have everything,” he said. He spoke about the parade of troops and tanks he has ordered for 14 June, his 79th birthday, which happens to coincide with the date that George Washington created the Continental army. “Amazing the way things work out. God did that, I believe that too. God did it.”Two days after Trump had mused about his election by heaven to possess “everything”, the court of international trade issued what the Wall Street Journal called the “ruling heard ‘round the world … proving again that America doesn’t have a king who can rule by decree’”.The US court of appeals for DC then temporarily stayed the ruling while it considered the case. But the trade court’s decision to deny Trump his toys was comprehensive, blistering and devastating. Now, Trump’s trade war is his Vietnam, a quagmire of his own.Trump’s entire program dances on the head of his tariffs. By fiat, without congressional approval, he has willfully invoked the International Emergency Economic Powers Act as cover for his helter-skelter gyrations to reshape the global economy according to his desire for domination of the Earth. He has further explained that his tariffs are necessary to pay for the vast tax cuts for the wealthy in his budget bill that would increase deficits. He claims that the tariffs will replace the revenue raised from income tax, fixed in the constitution by the 16th amendment, ratified in 1913. Without tariffs on the scope he projects his dream house of cards collapses. With his tariffs even as his stated minimal goal he blows up the world.The court of international trade, a court based on specialized expertise, whose judges have lifetime appointments, flatly stated that Trump’s use of the emergency law under which he claimed his authority does “not permit the president to impose tariffs in response to balance-of-payments deficits”, “exceeds any tariff authority delegated to the president”, “would create an unconstitutional delegation of power”, and is “contrary to law”.Having ruled that Trump’s worldwide tariffs are illegal, the court deemed his “trafficking tariffs” imposed on Canada and Mexico also lawless. Trump has asserted them on a contrived national security rationale of preventing the importation of fentanyl. But the court stated that Trump’s “use of tariffs as leverage … is impermissible not because it is unwise or ineffective but because … [the federal law] does not allow it”. Thus, the court concluded in both instances, “the worldwide and retaliatory tariff orders exceed any authority granted to the president … to regulate importation by means of tariffs. The trafficking tariffs fail because they do not deal with the threats set forth in those orders.”The trade court’s ruling suddenly exposed the extent to which Trump’s relationship with the conservative legal movement is unraveling. The fissure runs deeper and wider than name-calling. Trump’s trade war has morphed into a widespread civil war within the right with the core of the conservative legal establishment resisting him.Trump’s venomous social media posts against Leonard Leo, the Federalist Society co- chairman and rightwing powerhouse, reads like a memoir of an ingenue taken advantage of in the big city by strangers. “I was new to Washington,” Trump explained, “and it was suggested that I use The Federalist Society as a recommending source on Judges. I did so, openly and freely, but then realized that they were under the thumb of a real ‘sleazebag’ named Leonard Leo, a bad person who, in his own way, probably hates America, and obviously has his own separate ambitions.”Slowly, Trump has come to the realization that this Leonard Leo “openly brags how he controls Judges, and even Justices of the United States Supreme Court”. Trump was revealing that Leo understood his power beyond his influence over Trump on appointments. “Backroom ‘hustlers’ must not be allowed to destroy our Nation!” He is victim of a con, Donald Chump.“Talk about friendly fire,” editorialized the Wall Street Journal. But there was more to the story than Trump revealed, which the Journal’s editorial page, Leonard Leo’s friend in court as it were, happily provided. The judge on the trade court whom Trump appointed and blames on Leo, Timothy Reif, was in fact, according to the Journal, “recommended to the White House by Robert Lighthizer, who was Mr Trump’s first-term trade representative. Mr Leo had nothing to do with it.” Perhaps Trump is suffering from memory loss.Trump bellowed that the reason for the trade court’s ruling must be “purely a hatred of ‘TRUMP’? What other reason could it be?” “Well,” suggested the Journal, “how about the law and the constitution?” After Leo had been the one to give Trump the names of the three justices he appointed to the supreme court who made possible the infamous decision granting him “absolute immunity” for “official acts” that enabled his evasion of prosecution during the 2024 campaign, this was a thick and rich ragu.The Journal also rushed to Leo’s side with a podcast featuring John Yoo, who as deputy assistant attorney general under George W Bush and the author of the notorious Torture Memos. Yoo said it was “truly outrageous to accuse Leonard Leo, one of the stalwarts or the conservative movement, of being something like a traitor”. Yoo stated: “Why would President Trump turn his back on one of his greatest, if not his greatest achievements from the first term, appointing three justices?” Indeed, Yoo was right that Leo had dictated Trump’s choices, exactly as Trump confessed. What neither disclosed is that it was the price Trump paid for a political armistice with the mighty rightwing Koch political operation. Some deal, some art.And Yoo added in an admission of truth-telling about the supreme court’s invention of absolute presidential immunity for “official acts”: “If it weren’t for Federalist Society judges, he would be in jail right now because it was the Roberts court that said former presidents just can’t be prosecuted for crimes.”But to Trump, the betrayal is cutting. The trade court’s ruling against him echoed the amicus brief filed by a bipartisan group of legal eminences that included leading conservative lights. There was Steven Calabresi, professor at Northwestern Law School, the co-founder and co-chairman of the Federalist Society, and the chief theorist of the conservative doctrine of the “unitary executive”. There was Michael W McConnell, former federal judge, Stanford law professor, and a chief defender of religious right lawsuits. There was Michael Mukasey, former federal judge and George W Bush’s attorney general. There was Peter Wallison, President Reagan’s White House counsel. They all signed the brief stating: “The president’s tariff proclamations bypass the constitutional framework that lends legitimacy and predictability to American lawmaking.”The breaking of ranks on the right is not isolated. Other well-known members of the conservative legal establishment have done more than submit an amicus brief. They have become counsels to some of the most important institutions in Trump’s crosshairs – Harvard University, National Public Radio and the WilmerHale law firm.William Burck and Robert Hur are co-counsels representing Harvard in its suit against the Trump administration order denying its enrollment of international students unless the university submits to his draconian control over its academic processes.Burck, former deputy White House counsel to George W Bush and a current member of the board of directors of the Fox Corporation, is the head of “one of a few top US firms that seemed well placed not only to avoid Donald Trump’s wrath but also benefit from connections to the president’s inner circle”, according to the Financial Times. He was hired to be an ethics adviser to the Trump Organization – that is, until he chose to represent Harvard. Trump ranted against him: “Harvard is a threat to Democracy, with a lawyer, who represents me, who should therefore be forced to resign, immediately, or be fired. He’s not that good, anyway, and I hope that my very big and beautiful company, now run by my sons, gets rid of him ASAP!” Eric Trump, who had previously called Burck “one of the nation’s finest and most respected lawyers”, wielded the executioner’s axe for his father.Hur had been appointed the US attorney for Maryland by Trump and served as the special counsel investigating President Biden’s alleged mishandling of classified documents stored in boxes in his home’s garage. Hur filed no charges, but said of Biden that he was “a sympathetic, well-meaning, elderly man with a poor memory”.In Harvard’s suit against the Trump administration, Burck and Hur state that its actions against the university are “a blatant violation of the first amendment, the due process clause, and the Administrative Procedure Act. It is the latest act by the government in clear retaliation for Harvard exercising its first amendment rights to reject the government’s demands to control Harvard’s governance, curriculum, and the ‘ideology’ of its faculty and students. The government’s actions are unlawful for other equally clear and pernicious reasons.”For its representation in its suit against the Trump administration, which seeks to slash its funding, National Public Radio has hired Miguel Estrada, a star of the conservative legal firmament, whose nomination to the federal bench by George W Bush was blocked by Senate Democrats in 2002. According to the NPR complaint, Trump’s action “violates the expressed will of Congress and the first amendment’s bedrock guarantees of freedom of speech, freedom of the press, and freedom of association, and also threatens the existence of a public radio system that millions of Americans across the country rely on for vital news and information”.When Trump issued executive orders against big law firms that had somehow offended him, coercing their surrender to his whim, one of those firms, WilmerHale, subject to such an order for having had as a senior partner Robert Mueller, the former FBI director who headed the investigation into Russian influence in the 2016 election, did not cave. Instead, it hired Paul Clement, George W Bush’s solicitor general, who has argued on behalf of many of the most controversial conservative causes before the supreme court, including against the Defense of Marriage Act and against the Affordable Care Act, or Obamacare.Citing the example of John Adams, who defended British soldiers in the Boston Massacre, Clement argued against the Trump administration that “British monarchs’ practice of punishing attorneys ‘whose greatest crime was to dare to defend unpopular causes’ – which threatened to reduce lawyers to ‘parrots of the views of whatever group wields governmental power at the moment’ – helped inspire the Bill of Rights”.Then, Ed Whelan, who holds the Antonin Scalia chair in constitutional studies at the rightwing Ethics and Public Policy Center, and is a close surrogate for Leonard Leo, savaged Trump’s nomination of Emil Bove, who was his personal attorney in the New York hush-money trial and whom he had appointed as deputy attorney general, to be a judge on the US court of appeals for the third circuit.Bove ordered corruption charges dropped against the New York City mayor, Eric Adams, which a federal judge said “smacks of a bargain: dismissal of the indictment in exchange for immigration policy concessions”. The US attorney for Manhattan, Danielle Sassoon, a conservative Republican, resigned in protest, stating that the deal “amounted to a quid pro quo” and that Bove had ordered her not to take notes during meetings. Seven members of the public integrity section of the justice department also resigned.Whelan, writing in the conservative magazine National Review, called Bove Trump’s “henchman”, decried his “bullying mishandling” of the Adams case, and suggested he might be put on the federal bench to “position him well for the next supreme court vacancy. A rosier possibility is that Bove is tired of being Stephen Miller’s errand boy.”Now, Trump is worried about what conservatives on the supreme court might rule when presented with the trade court’s decision. He rails in private against Justice Amy Coney Barrett, whom he appointed to the supreme court, for her unexpected occasional independence. The Journal, with the inside track, writes that “the White House boasts it will win at the supreme court, but our reading of the trade court’s opinion suggests the opposite. Mr Trump’s three court appointees are likely to invoke the major-questions precedent” – which would uphold the trade court and force Trump either to bring his policy before the Congress or drop it.Trump is enraged that his betrayers from the Federalist Society have claimed roles in the resistance. He has no loyalty to anyone or thing, but demands personal fealty, certainly now above any ideological litmus tests. The only ideological tests are to be imposed on universities. Trump has learned his lesson. In his insistence on obedient judges, Trump is returning to his first principle as he was taught in the beginning by his mob attorney Roy Cohn, who said: “Don’t tell me what the law is, tell me who the judge is.”

      Sidney Blumenthal, a former senior adviser to President Bill Clinton and Hillary Clinton, has published three books of a projected five-volume political life of Abraham Lincoln: A Self-Made Man, Wrestling With His Angel and All the Powers of Earth. He is a Guardian US columnist and co-host of The Court of History podcast More

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      ‘Saying Trump is dangerous is not enough’: Bernie Sanders on Biden, billionaires – and why the Democrats failed

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      ‘I think what Trumpism is about, is an understanding that the system in America is not working for working-class people,” says Bernie Sanders, sitting in the Guardian’s offices in London. “In a phoney, hypocritical way, Trump has tapped into that. His quote-unquote ‘solutions’ will only make a bad situation worse.”View image in fullscreenIn person, Sanders’ 83 years read differently than in photograph, perhaps because of how conversational he is. His voice is magnetic – a Brooklyn accent that feels both warm and tough. “But what I have been aware of, and I’ve talked about it for years, is that in America, the very richest people are doing phenomenally well, while 60% of our people live paycheck to paycheck.”Later, he will say the same thing to an audience in London – only with more emphasis and passion. “Sixty per cent. Six-zero. Do you know what paycheck to paycheck means?” It’s exhilarating to hear Sanders speak to a crowd: his zeal is reflected back in their faces, his moral clarity is such a relief, set against the cynicism and resignation of most of the Democratic party’s opposition to Trump and his administration. Class war is as old as time, but it’s a peculiarity of this age that you rarely hear a politician name it. “I do,” he tells me. “There is a class war going on. The people on top are waging that war.”It’s a look at what could have been. Sanders ran, of course, to be the Democratic presidential candidate in 2016, and again in 2020. The first time, there was a real sense, in the US and abroad, that something incredible might happen: that someone with “almost no name recognition,” he says, a senator from the small state of Vermont, might successfully challenge Hillary Clinton, whom the party had already anointed. We all know how that worked out. Was it the greatest disappointment of his political life? “Well, you’re too busy to feel things,” he says. “You’re just working very hard.”What is absolutely unequivocal is his criticism of the Democrats. The party, he thinks, lacks any real progressive promise. “What they say is, ‘The status quo is working pretty good, and we will tinker around the edges’, and that is not a message that resonates with working people”. He refuses to indulge in any personal ill-will towards Joe Biden or Kamala Harris. The most he’ll voice is a weary resignation about 2020, when his campaign “won the first three states, primary states, in terms of popular votes. Then the Democratic establishment made sure the other candidates dropped out, and they rallied around Joe Biden. You know, that’s the world that we live in. We are taking on not just the Republican leadership, we are taking on a Democratic establishment which is tied to elements of corporate America.”During the 2024 election, he “worked very hard to see that Kamala Harris was elected. I was all over the country and was one of her major surrogates. We begged our campaign to start talking about the needs of working people. But their consultants and the money people behind them thought of another strategy, showing that she was more conservative, that she worked with people like Liz Cheney, worked with Republicans, had billionaires going out and saying that she’s wonderful. They thought that was the right approach. I did not think that was the approach, and I was public about that.” He pauses, and not for effect: it’s hard to relive November 2024. “But my voice did not carry,” he says.Sanders started his political life in 1981, when he was elected mayor of Burlington, Vermont. His brother, Larry, is 90 and lives in Oxfordshire. He stood as a Green candidate in David Cameron’s old parliamentary seat in 2016. In a speech that year, supporting Sanders as the Democratic nominee, Larry gave a brief portrait of their parents. “Eli Sanders and Dorothy Wexford Sanders. They did not have easy lives, and they died young,” he said. Dorothy was born in New York, to Jewish immigrant parents fleeing Russian pogroms. Eli arrived in the US in 1921, most of his family remaining in what is now Poland and what was then Austrian Galicia, to be “wiped out by Hitler,” Sanders has said in the past. Eli worried constantly about providing for his family and both he and Dorothy were political, Larry said in the speech: “They loved the New Deal of Franklin D Roosevelt, and would be especially proud that Bernard is renewing that vision.”View image in fullscreenSanders’ charge to the Democrats now is twofold. “Their weakness is, I think, that their credibility is now quite low. And they don’t have much of a message for working people, other than to say Trump is dangerous. I think that’s just not enough.” He point blank refuses to get into Trump’s administration – its excesses, surprises, non-surprises, without first walking through everything that was already wrong with the US. “What the Democrats have to absolutely make clear is this: we’re going to take on the billionaire class. They’re going to start paying their fair share of taxes. We’re going to have healthcare for all people as a human right. We’re going to have a strong childcare system that every American can afford. We’re going to make public colleges and universities tuition-free. We’re going to create millions of jobs transforming our energy system away from fossil fuel. We’re going to build housing – boy, housing is like it is here, just a huge crisis. We’re going to build millions of units of low-income and affordable housing. Do Democrats say that? No.”That Sanders will not be drawn on every new Trump calumny, instead focusing on an economic reality that’s been worsening for decades, does help him keep on course. And it definitely doesn’t stop him giving Trump both barrels. “We don’t usually have presidents suing the media, threatening the media if they write bad stories about them. We don’t usually have presidents threatening to impeach judges. We don’t have presidents suing law firms. You add all that together, it is a movement for authoritarianism.” Is it worse than he predicted? I was thinking specifically about the extrajudicial detentions and deportations, students dragged off campus and held for weeks, perfectly legal migrants sent to El Salvador, when they weren’t even from there. “First time around, Trump was not as well organised. They’ve had four years to get their act together, so to speak. And that’s what this Project 2025 document was about.”Project 2025 was a document published by rightwing thinktank the Heritage Foundation in 2024, offering a terrifying vision for a second Trump term. An outright proposal to dismantle the US government, it was a roadmap to crackdown on immigration, LGBTQ+ rights, abortion rights – as well as being against action on the climate crisis and against vaccines. If it looked like a blueprint for The Handmaid’s Tale and The Road combined, none of the alarm last year could ever have encompassed the reality that would come. Among many other things, the Trump administration would go on to deport people without due process, and then ignore a supreme court ruling that an 18th-century wartime declaration about “alien enemies” was not a proper legal instrument.I ask a question about who funds the Heritage Foundation – as it keeps all donations secret, which raises questions about whose interests Project 2025 is really serving. His reply is impatient: “It doesn’t matter who it is they have. There’s no lack of well-paid, right-wing consultants and intellectuals who can move this country to an oligarchic authoritarian society.” His tone is clear – stop getting lost in detail, stop looking for hidden connections, stop messing around and start fighting.“One of the frightening aspects of what’s going on is the degree to which the establishment-type folks have caved in, and so quickly,” he says. “That was much less the case, during Trump’s first term.” He mentions Jeff Bezos, “who one had assumed was kind of a moderate Democrat”, losing his editorial board because they were going to endorse Kamala Harris. “Same thing in the Los Angeles Times. When you have ABC agreeing to a settlement with Trump; the bogus lawsuit against CBS that Paramount are negotiating right now. When you have major, billion-dollar law firms saying, ‘OK, we plead guilty to having clients who went to court against you and your friends, that was a terrible crime, we’re going to give you millions of dollars.’ Harvard has buckled up a little bit and appears not to be caving in, but a lot of universities have. None of this was the case eight years ago. They are creating the overall mentality that it will be dangerous to be strongly critical of Donald Trump.”View image in fullscreenIn other areas, money is talking so loudly in politics that it’s all you can hear. Sanders has used Gaza as an example when he says that politicians are afraid to speak out on Israel’s actions in case Super Pacs – which can put forward unlimited amounts of money for a candidate – will penalise them at the next election. Today, he says it’s not just Gaza, but a host of other issues. “If you say, ‘Do you really think it’s a good idea to cut Medicaid and give tax breaks to billionaires? Do you really think that climate change is a hoax?” there will be a number, not a majority, but a number of Republicans who would say: ‘No. But if I stand up and vote ‘no’, the next day, Elon Musk would say, “All right, you are going to be primaried [a candidate will be fielded against you], and Trump will support your opponent. I will put unlimited sums of money to elect your opponent.”’ Good luck to you.’”While that pattern is undoubtedly visible across many issues, the example of Gaza is particularly stark – with groups such as Aipac, funded by pro-Israel billionaires, putting tens of millions of dollars against congressional candidates, mainly Democrats, that it did not deem to be sufficiently supportive of Israel in the run-up to 2024. As the atrocities in Gaza leave many in civil society dumbfounded, what is the long game here, I ask. “That’s a difficult question, and I don’t know the answer. I will tell you that the United States has had a long-term relationship with Israel, and there are many people who have intellectually chosen not to understand that Netanyahu does not represent the Israel of 20 years ago. The moderate democratic society is now controlled by right-wing racist extremists who have done, and are doing today, absolutely horrific things to the Palestinian people in violation of American law and international law. They refuse to recognise that.” In Dublin, he was heckled for not using the word genocide, and some US progressives were dismayed, two years ago, when he didn’t call for an immediate ceasefire. He speaks out now, choosing his words carefully; he’s not on the fence.Since the end of March, Sanders and Alexandria Ocasio-Cortez (he always calls her that, never AOC), have been holding campaign rallies all over the US from Arizona to Utah. They are deliberately not skipping the diehard Democratic states – but have been more surprised by the numbers they’ve been getting in red states. “This is not a campaign. This is a political rally, and I think the numbers are almost unprecedented. Large numbers of people, including in conservative areas, do not want to see oligarchy in America, do not want to see authoritarianism, do not want to see massive tax breaks for the rich and cuts to the programmes that working-class people desperately need.” Sure, he and AOC sometimes disagree, “my wife and I disagree on issues! But Alexandria, I think, comes pretty much from where I come from.”View image in fullscreenHe has hope for the future, too. There are a couple of dozen people in the house Progressive Caucus – a 98-strong group of the more left-wing members of the Democratic party in Congress – that are “strong progressives”, he says. “Alexandria is maybe one of the most articulate and charismatic, but there are others there as well.” Ilhan Omar, Ayanna Pressley and Rashida Tlaib to name a few.Sanders is clear that he and Ocasio-Cortez are not trying to start a third political party. Instead, they’re “trying to build a grassroots movement of working-class people and young people … If you’re seeing candidates now arising who are progressive, that’s down to a lot of the work that we are doing for the 2026 midterms.”Sanders in person is very much as he is in his book, It’s OK to Be Angry About Capitalism, in which he lays out some principles, among them, “wars and excessive military budgets are not good”; “carbon emissions are not good”; “racism, sexism, homophobia and xenophobia are not good”; “exploiting workers is not good”. It’s really the sight of him igniting a crowd that’s so hopeful, which holds for him, too – he keeps his optimism because he has the “fortune of being able to go around the country and speak to large numbers of wonderful people”. The message doesn’t change, though – it doesn’t have to be new: it just has to be true.As he leaves to make his way upstairs to the photography studio, he strides on ahead, his wife Jane O’Meara Sanders, an activist herself, making small talk with me in his wake. It’s not that he’s performing vigour in an era where politicians’ ages are relentlessly analysed. It’s just his manner – all this urgent change should have happened yesterday. More

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      Trump’s tax bill helps the rich, hurts the poor and adds trillions to the deficit | Katrina vanden Heuvel

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      The blush is off the rose, or, rather, the orange. The erstwhile “First Buddy” and born-again fiscal hawk Elon Musk recently said he was “disappointed” by Donald Trump’s spendthrift budget currently under debate in the US Senate. Squeaking through the House of Representatives thanks to the capitulation of several Republican deficit hardliners, this “big, beautiful bill” certainly increases the federal debt bigly – by nearly $4tn over the next decade.Equally disappointed are those who have been busy burnishing Trump’s populist veneer. Steve Bannon had repeatedly promised higher taxes for millionaires, but he has confessed he’s “very upset”. That’s because the bill would cut taxes by over $600bn for the top 1% of wage-earners, also known as millionaires. It amounts to the largest upward transfer of wealth in American history.Yet this double betrayal will do nothing to impede the sundry Maga apparatchiks’ breathless support for their dear leader. Musk has already tweeted his gratitude to the president for the opportunity to lead Doge (that is, slash funding for cancer research). So this bill has once again proven Republicans’ willingness to relinquish their convictions as long as they can keep their grasp on power. And for Trump, it has reaffirmed that his pledged golden age is really just a windfall for the uber-wealthy like him. Now there can be no mistaking that Republicans’ governing philosophy is neither conservatism nor populism but unabashed hypocrisy.Expecting the self-proclaimed King of Debt to balance the budget – or hoping workers would be protected by the billionaire whose personal motto is “You’re fired” – was always imaginative thinking at best. In his first term, Trump added $8tn to the national deficit. Even excluding Covid relief spending, that’s twice as much debt as Joe Biden racked up during his four years in the White House. Almost $2tn of that tab came from Trump’s vaunted tax cut, which delivered three times more wealth to the top 5% of wage earners than it did to the bottom 60%. Nor did its benefits trickle down, with incomes remaining flat for workers who earn less than $114,000.Trump’s disingenuousness on the deficit continues a hallowed Republican tradition. All four Republican presidents since 1980 have increased the federal debt. By combining reckless militarism with rampant corporatism, George W Bush managed to balloon it by 1,204%. When Bush’s treasury secretary Paul O’Neill expressed concern about that spending, Dick Cheney, the then-vice president, reportedly retorted: “Deficits don’t matter.”Except, of course, when a Democrat occupies the Oval Office. During his campaign for the US Senate in 2022, JD Vance derided Biden’s signature $1tn infrastructure package as a “huge mistake” that would waste money on “really crazy stuff”. Like improving almost 200,000 miles of roads and repairing over 11,000 bridges across the country.Apparently less crazy, but certainly more callous, are the vertiginous cuts to the social safety net proposed in Trump’s current budget bill. Its $1tn evisceration of Medicaid and Snap would leave 8 million Americans uninsured and potentially end food assistance for 11 million people, including 4 million children. When the Democratic Representative Ro Khanna introduced an amendment to maintain coverage for the 38 million kids who receive their healthcare through Medicaid, Republicans blocked it from even receiving a vote.But for all the budget’s austerity, it also provides $20bn in tax credits to establish a national school voucher program. And equally outrageous are its provisions that have nothing to do with the pecuniary, from easing regulations on gun silencers to hamstringing the power of courts to enforce injunctions.Perhaps most breathtaking of all, though, is how shamelessly the bill enriches the already mega-rich. In its first year, its tax breaks will grace Americans in the top 0.1% of the income bracket with an additional $400,000, while decreasing the earnings of people in the bottom 25% by $1,000. In other words, those who can least afford it are financing relief for those who least need it.When the 50% of working class Americans who broke for Trump in last year’s election realize they voted for a pay cut, they might begin to feel a bit disillusioned with the crypto trader-in-chief. They might even feel pulled to the authentically populist vision outlined by the progressives Bernie Sanders and Alexandria Ocasio-Cortez on their nationwide Fighting Oligarchy Tour.In the meantime, it is almost an inevitability that Republican senators will wring their hands before pressing the green button to vote “yea.” Josh Hawley has called the budget bill “morally wrong and politically suicidal”, criticism which Trump has previously mocked as “grandstanding”. The insult contains a typically Trumpian flash of psychological insight, because Hawley and his colleagues will no doubt do exactly what their counterparts in the House have already done – cave.Once Trump has scribbled his oversized signature onto the bill, his vision for the US will have become unmistakable. Try as they might, not even the spinmeisters at Fox News will be able to deny that he runs this country the way he ran his Atlantic City casinos, leading working Americans to financial ruin while he emerges all the richer for it.

      Katrina vanden Heuvel is editorial director and publisher of the Nation, a member of the Council on Foreign Relations, and a contributor to the Washington Post, the New York Times and the Los Angeles Times More

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      Trump announces 50% steel tariffs and hails ‘blockbuster’ deal with Japan

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      Donald Trump announced on Friday he was doubling foreign tariffs on steel imports to 50%, as the president celebrated a “blockbuster” agreement for Japan-based Nippon Steel to invest in US Steel during a rally in Pennsylvania.Surrounded by men in orange hardhats at a US Steel plant in West Mifflin, Trump unveiled the new levies, declaring that the dramatic rate increase would “even further secure the steel industry in the United States”.“Nobody is going to get around that,” Trump said, of the tariff rate hike from what was 25%.In a social media post after the conclusion of his remarks, Trump announced that the 50% tariffs on steel would also apply to imported aluminum and would take effect on 4 June.“This will be yet another BIG jolt of great news for our wonderful steel and aluminum workers,” he declared in the post.It was not immediately clear how the announcement would affect the trade deal negotiated earlier this month that saw tariffs on UK steel and aluminum reduced to zero.Trump’s Friday tariffs announcement came a day after a federal appeals court temporarily allowed his tariffs to remain in effect staying a decision by a US trade court that blocked the president from imposing the duties.The trade court ruling, however, does not impede the president’s ability to unilaterally raise tariffs on steel imports, an authority granted under a national security provision called section 232 of the Trade Expansion Act.The precise relationship between Nippon Steel and US Steel raised questions on Friday, even for some of Trump’s allies. The president has thrown his full support behind the deal, months after insisting he was “totally against” a $14.9bn bid by Nippon Steel for its US rival.The United Steelworkers union had previously urged Trump to reject Nippon’s bid, dismissing the Japanese firm’s commitments to invest in the US as “flashy promises” and claiming it was “simply seeking to undercut our domestic industry from the inside”.Speaking to steelworkers, Trump insisted that US Steel would “stay an American company” after what he is now calling “a partnership” with Nippon.But US Steel’s website links to a standalone site with the combined branding of the two companies that features a statement describing the transaction as “US Steel’s agreement to be acquired by NSC”.On the website touting the deal, there were also multiple references to “Nippon Steel’s acquisition of US Steel” and the “potential sale of US Steel to Nippon Steel”.Even pro-Trump commentators on Fox expressed bafflement over the exact nature of the deal.“This is being described as ‘a partnership’, this deal between Nippon and US Steel – but then it’s described as an acquisition on the US Steel website,” Fox host Laura Ingraham pointed out on her Friday night show.She asked a guest from another pro-Trump outlet, Breitbart: “Who owns the majority stake in this company?”When the guest said he did not know, Ingraham suggested Trump might not be aware of the details. “I don’t know if he was fully informed about the terms of the deal. We just don’t know.”Trump’s predecessor, Joe Biden, had blocked Nippon’s acquisition, citing national security concerns, during his final weeks in office.During his remarks at the rally, Trump gloated that the Nippon investment would once again make the American steelmaker “synonymous with greatness”. He said protections were included to “ensure that all steel workers will keep their jobs and all facilities in the United States will remain open and thriving” and said Nippon had committed to maintaining all of US Steel’s currently operating blast furnaces for the next decade.The president also promised that every US steel worker would soon receive a $5,000 bonus – prompting the crowd to start a round of “U-S-A!” chants.Trump told the steelworkers in attendance that there was “a lot of money coming your way”.“We won’t be able to call this section a rust belt any more,” Trump said. “It’ll be a golden belt.”During the event, Trump invited local members of United Steelworkers on to the stage to promote the Nippon deal, which saw its leader break with the union to support it. Praising the president, Jason Zugai, vice-president of Irvin local 2227, said he believed the investments would be “life-changing”.But the powerful United Steelworkers union remained wary.“Our primary concern remains with the impact that this merger of US Steel into a foreign competitor will have on national security, our members and the communities where we live and work,” United Steelworkers president David McCall said in a statement.“Issuing press releases and making political speeches is easy. Binding commitments are hard.”Trump framed the administration’s drive to boost domestic steel production as “not just a matter of dignity or prosperity or pride” but as “above all, a matter of national security”.He blamed “decades of Washington betrayals and incompetence and stupidity and corruption” for hollowing out the once-dominant American steel industry, as the jobs “melted away, just like butter”.“We don’t want America’s future to be built with shoddy steel from Shanghai. We want it built with the strength and the pride of Pittsburgh,” he said.In his remarks at a US steel plant, Trump also repeated many of the false claims that have become a feature of his rallies including the lie that the 2020 election was stolen from him. He gloated over his 2024 victory and, gesturing toward his ear that was grazed by a would-be assassin’s bullet last year at a rally in Butler, Pennsylvania, said it was proof that a higher power was watching over him.He also called on congressional Republicans to align behind his “one big, beautiful bill,” urging attendees to lobby their representatives and senators to support the measure.Lois Beckett and Callum Jones contributed reporting More