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    Trump temporarily spares carmakers from US tariffs on goods from Canada and Mexico

    Donald Trump has temporarily spared carmakers from sweeping US tariffs on goods from Canada and Mexico, one day after an economic strike on the US’s two biggest trading partners sparked warnings of widespread price increases and disruption.The US president extended his aggressive trade strategy at midnight on Tuesday by targeting the country’s two closest neighbors with duties of 25%.US retail giants predicted that prices were “highly likely” to start rising on store shelves almost immediately, raising questions about Trump’s promises to “make America affordable again” after years of heightened inflation.After a call with top executives at General Motors, Ford and Stellantis, however, Trump approved a one-month exemption from tariffs on “any autos coming through” the US, Mexico and Canada, the White House press secretary, Karoline Leavitt, announced on Wednesday.The exemption has been granted “at the request of the companies”, Leavitt told reporters, “so they are not at an economic disadvantage”.While Trump has claimed tariffs will embolden US industry by forcing global firms to build factories in the US, Ford CEO Jim Farley publicly cautioned last month that imposing steep tariffs on Canada and Mexico could “blow a hole” in the country’s auto industry.Shares in large carmakers rose sharply, with GM up 7.2%, Ford up 5.8% and Stellantis up 9% in New York. The benchmark S&P 500 increased 1.1% on Wall Street.A separate call between Trump and Justin Trudeau, the Canadian prime minister, did not lead to any larger breakthrough, however. Trudeau “largely caused the problems we have with them because of his Weak Border Policies”, Trump declared on his Truth Social platform after they spoke. “These Policies are responsible for the death of many people!”Trudeau insisted there had been improvements at the border, the US president claimed, adding that he told him this was “not good enough”.During Trump’s joint address to Congress on Tuesday evening, he acknowledged that tariffs would cause disruption. There will be “a little disturbance, but we’re OK with that”, he said.He blamed cost of living challenges on his predecessor, Joe Biden, from whom he claimed to have inherited “an economic catastrophe and an inflation nightmare”.The US economy has, in fact, remained resilient in recent years, and inflation has fallen dramatically from its peak – at the highest level in a generation – three years ago.“Among my very highest priorities is to rescue our economy and get dramatic and immediate relief to working families,” said Trump. “As president, I am fighting every day to reverse this damage and make America affordable again.”skip past newsletter promotionafter newsletter promotionTrump spoke on Wednesday with Trudeau. “Even though you’re a very smart guy, this is a very dumb thing to do,” Trudeau told Trump publicly after the US imposed tariffs this week.Trump had initially pledged to target Canada and Mexico with tariffs on his first day back in office. Upon his return, however, he said he was considering imposing the tariffs at the start of February. Last month, he offered Canada and Mexico a one-month delay at the 11th hour.Trump and his allies claim that higher tariffs on US imports from across the world will help “Make America great again”, by enabling it to obtain political and economic concessions from allies and rivals on the global stage.But businesses, both inside the US and worldwide, have warned of widespread disruption if the Trump administration pushes ahead with this strategy.Since winning November’s presidential election, the president has focused on China, Canada and Mexico, threatening the three markets with steep duties on their exports unless they reduced the “unacceptable” levels of illegal drugs crossing into the US. More

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    As Republicans thunderously applauded and Democrats walked out in droves, Trump’s Congress speech showcased the US divide | Lloyd Green

    Donald Trump is busy while the world around him is mired in chaos. Six weeks into his second term, he has reversed the course of US policy towards Ukraine, imposed tariffs on China, Canada and Mexico, and delegated the task of slashing government to Elon Musk. The stock market swoons.Recession and stagflation are no longer hypotheticals. The term “trade war” fills the headlines. The Dow sits hundreds of points below where it stood on Inauguration Day. Trump’s second term is already consequential and controversial.In the opening words of his speech to a joint session of Congress, he proclaimed that America was back, that the country’s golden age lay ahead, and that “momentum” had returned. He spoke for nearly two hours, the longest speech to Congress ever. Trump was nakedly partisan, the reception in the House chamber was raucous.Republicans thunderously applauded while Democrats delivered a chorus of catcalls. Early on, Speaker Mike Johnson demanded order, and called the sergeant-at-arms to remove Al Green, a Texas Democrat, from the hall. Democrats walked out in droves. The speech showcased the American divide.Throughout the night, Trump made Joe Biden his foil and punching bag. He labeled his predecessor the worst president in American history, lambasting his policies a disaster. Trump also took congressional Democrats to task for their refusal to stand or applaud during his speech. He continues to yearn for adulation.On that note, he compared himself as second to only George Washington, the first president. As ever, self-deprecation and modesty were nowhere to be found.Immigration and social issues policy took pride of place. Here, the speech sounded like a continuation of the fall campaign. Trump pointed to quiet at the southern border and read a laundry list of changes implemented by his administration.He bragged of making English the official language of the US, abolishing DEI in and out of government, and barring transgender athletes from competing in women’s sports. Said differently, his campaign slogan, “Kamala is for they/them, President Trump is for you”, continues to retain its salience.Trump remains a culture warrior, a tack that twice led him to the White House. Throughout the evening, he returned to immigration as a rhetorical touchstone. He also attacked street gangs, urban crime and street violence. For the Democrats to regain competitive political footing, they will need to reconcile themselves to the reality that mass immigration is unpopular, that being tough on crime is a winner, and that the language of “wokeness” goes no further than the faculty lounge.Past demands to defund the police will likely haunt the party for the foreseeable future. The fact that Trump repeated his call for an immigration gold card, with citizenship sold to Russian oligarchs at $5m a pop, does not detract from the potency of immigration as an issue.By the numbers, nearly half the US supports building a wall along the entire US-Mexico border. At the same time, support for conferring legal status to undocumented or illegal immigrants brought to the US as children declines.As to be expected, Trump ignored the stock market drop and instead pointed to a decline of interest rates. Whether the latter is a harbinger of a decline in inflation, a slowing economy, or both, remains to be seen. He repeated his call to “drill, baby, drill”. He also gave Elon Musk, his largest campaign donor and the head of Doge, star treatment and a shout-out.Foreign policy occupied little space. Trump repeated his threat toward Denmark over Greenland. “I think we’re going to get it – one way or the other, we’re going to get it.” He again staked a US claim to Panama. Ukraine came late, almost as an afterthought.Despite market turmoil, “tariffs” remained a beautiful word in the Trumpian lexicon. On Tuesday night, he announced that US-imposed reciprocal tariffs will kick in on 2 April, less than a month away. Much can go wrong between now and then.The possibility of averting a trade war does not appear to have lessened during the course of the speech. He said tariffs are about the “soul” of the country while acknowledging that they may bring temporary dislocation. Still, he didn’t seem all that bothered.The speech won’t unite a nation, but it will rally the Republican base. More

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    Democratic senator says democracy ‘at risk’ in rebuttal to Trump address

    Michigan senator Elissa Slotkin followed Donald Trump’s record-long joint congressional address on Tuesday by focusing on the risk of a declining democracy, directly challenging citizens to take an active role in holding elected officials accountable – herself included.The first-term Democratic senator, who represents a state won by the president, explained how preserving democracy requires constant, active participation from voters.“Our democracy, our very system of government, has been the aspiration of the world, and right now it’s at risk,” Slotkin said in the official Democratic response. “It’s at risk when the president decides you can pick and choose what rules you want to follow, when he ignores court orders and the constitution itself, or when elected leaders stand by and just let it happen.”The first-term senator outlined a three-step approach for citizens: staying informed, monitoring elected representatives’ voting records, and actively organizing around issues that matter to any given person. She framed citizen oversight as “American as apple pie”.Slotkin fact-checked claims about Trump’s narrative on a booming economy, explaining that while the administration had touted overwhelming success, “the national debt is going up, not down”.The International Chamber of Commerce echoed those concerns earlier today, warning that the massive Trump-activated tariffs on Canada and Mexico risked triggering an economic downturn that could devastate the global economy that followed a mass tumble in the stock market. Slotkin added that risking cuts to social security and other critical programs were not the way to solve the national debt, or government efficiency either.“We need a more efficient government. You want to cut waste, I’ll help you do it. But change doesn’t need to be chaotic or make us less safe,” she said.Drawing from her national security background, Slotkin warned that democracies are fragile institutions that can “flicker out” without real, around-the-clock protection.skip past newsletter promotionafter newsletter promotion“If previous generations had not fought for this democracy, where would we be today?” Slotkin said. More

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    China promises ‘countermeasures’ after Trump threatens additional 10% tariff

    Donald Trump has threatened China with an additional 10% tariff on its exports to the US, prompting a promise of “countermeasures” from Beijing and setting the stage for another significant escalation in the two governments’ trade war.The US president also claimed he planned to impose tariffs on Canada and Mexico starting next Tuesday, having delayed their imposition last month after talks with his counterparts.Posting on Truth Social on Thursday, Trump said illicit drugs such as fentanyl were being smuggled into the US at “unacceptable levels” and that import taxes would force other countries to crack down on the trafficking.“We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled,” the Republican president wrote. “China will likewise be charged an additional 10% Tariff on that date.”If Trump makes good on this latest threat, the move would further strain relations between the US and its largest trading partners.In response, China’s commerce and foreign ministries on Friday vowed to retaliate if Chinese companies were affected by the tariffs, accusing the US of using fentanyl as a “pretext” to threaten China.“Such behaviour is purely ‘shifting blame and shirking responsibility,’ which is not conducive to solving its own problems,” a commerce ministry spokesperson said. “If the US insists on proceeding with this course of action, China will take all necessary countermeasures to safeguard its legitimate rights and interests.”Canada and Mexico have promised to retaliate if the US imposes tariffs on their exports. China hit back swiftly when Trump imposed a 10% tariff on its exports earlier this month.The Trump administration has repeatedly raised the threat of tariffs, vowing to rebalance the global economic order in the US’s favor. A string of announced measures have yet to be introduced, however, as economists and businesses urge officials to reconsider.The duties on imports from Canada and Mexico have been repeatedly delayed; modified levies on steel and aluminum will not be enforced until next month, and a wave of “reciprocal” tariffs, trailed earlier this month, will not kick in before April.This week, the US president vowed to slap 25% tariffs on the EU, claiming the bloc was “formed to screw the United States”, although details remain sparse. Duties will be applied “generally”, Trump said, “on cars and all other things”.The prospect of escalating tariffs has already thrown the global economy into turmoil – with consumers expressing fears about inflation worsening and the auto sector possibly suffering if the US’s two largest trading partners in Canada and Mexico are slapped with taxes.The prospect of higher prices and slower growth could create political blowback for Trump.Associated Press contributed reporting More

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    ‘It’s been a lifesaver’: millions risk going hungry as Republicans propose slashing food stamps

    During a recent grocery store visit, Audrey Gwenyth spent $159.01 on items such as eggs, Greek yogurt, edamame snaps, bagels, chia seeds, brownie mix, oatmeal, milk, cilantro rice and pork sausage. The entire bill was paid via her electronic benefit transfer, or EBT, card, which is how recipients of the Supplemental Nutrition Assistance Program (Snap), pay for groceries at participating stores, farmers markets and restaurants.“Because I’m a single mom and I don’t receive child support, I don’t have a lot of help in the world,” said Gwenyth, a mother of two toddlers, whose food budget is around $100 per week. She shares many of her EBT purchases on social media to help others make the most of their benefits. “I could not pay for food if it wasn’t for EBT. It’s been a lifesaver.”In the US, more than one in eight households say they have difficulty getting enough food. Snap, formerly known as food stamps, helps more than 42 million people fill those gaps, and is considered the country’s most effective tool to fight hunger. But now, the USDA-run program is facing attacks from House Republicans who see deep cuts as a way to pay for an extension of the 2017 tax bill that benefits the very wealthy.On Tuesday night, the House narrowly passed a budget resolution that called for $4.5tn in tax cuts and a $2tn cut in mandatory spending, which includes programs such as Snap and Medicaid.While it is unknown exactly how much would be slashed from Snap, some estimates say funding could be reduced by at least 20%. The House budget resolution enables committees to cut $230bn from the agriculture committee over 10 years in order to help extend tax cuts for the top 1%, according to the nonpartisan Center on Budget and Policy Priorities.This means the millions who rely on Snap would receive less help, and many of them could lose assistance altogether, even amid rising food costs and inflation.“Hunger and poverty aren’t going to stop because you cut a program,” said Gina Plata-Nino, Snap’s deputy director at the Food Research & Action Center (Frac). “The price of food keeps going up, things are more expensive, people are concerned about tariffs in terms of consumer goods and people relying on these benefits will not have any recourse.”Cuts could be made by limiting how people use Snap, removing benefits from those who lose their jobs and arbitrarily capping maximum benefits. Congress could also convert Snap into a block grant and have states pay a portion of benefits, which could limit access to assistance at a time when families are struggling already.Anti-hunger groups are especially alarmed about proposed alterations to the Thrifty Food Plan, which the USDA uses to determine benefit amounts and the annual cost of living of living adjustment, or Cola. One Republican proposal would cut $150bn from the program by limiting Thrifty Food Plan updates, which means benefits would be slashed for every American using Snap, affecting one in five kids in the US.Republicans have sent mixed signals. The House agriculture chair GT Thompson (Republican of Pennsylvania) said last week there would be no Snap cuts in reconciliation or the upcoming farm bill. But other Republicans have signaled openness to this, and critics of the budget resolution question how lawmakers could possibly chop $230bn without affecting Snap.Even before cuts, the current average Snap benefit is only around $6 a day per person, which means that they often fall short of what people actually need. “When you think about the rising cost of food, that is such a small amount of food,” said Rachel Sabella, the director of No Kid Hungry New York, a non-profit that works to end childhood hunger. “People are making tough choices in the grocery store.”Six dollars doesn’t get you much these days at food retailers. This year, the average price of eggs hit a record high of $4.95, and is expected to keep climbing as the US deals with the ongoing bird flu outbreak. A gallon of milk costs more than $4 and a pound of ground chuck costs $5.50, according to the consumer price index.To get by, families often hide food to save so it lasts later into the month. Caretakers report eating less or cutting their portion sizes and mothers say they sometimes forgo food at the end of the month so their kids can eat. People also reduce protein and produce in favor of cheap filler foods like rice. For people already making concessions, these proposed cuts would be devastating.“I live in poverty, not ignorance, so I keep a monthly budget and watch my spending very closely, which requires precision,” said Brytnee Bellinger, who is visually impaired and receives around $80 per month in food assistance. Bellinger usually spends her Snap dollars on grass-fed bison, which she says helps combat her iron deficiency, and fresh produce from farmers markets. If her benefit amount was reduced, she would likely be unable to afford either.“How are people supposed to balance making healthy food choices with spending wisely if their Snap benefit amount doesn’t accurately reflect the current cost of a healthy diet?” she said. “Poor people buying food isn’t the cause of federal overspending.”After being founded in 1964 as part of Lyndon Johnson’s war on poverty, Snap has been targeted by both Republicans and Democrats. Cutbacks to the program were first made in the early 1980s under Ronald Reagan. Bill Clinton signed the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, which set time limits, reduced maximum allotments and eliminated eligibility of most legal immigrants for food stamps. During his first term, Donald Trump unsuccessfully attempted to cut Snap by 25 to 30%.While the Biden administration has been lauded for updating the Thrifty Food Plan to boost the amount of money people have to buy food, Republicans have made reversing the increase a major priority.GOP lawmakers and conservative thinktanks have falsely criticized the program as having high administrative costs and being rife with fraud and abuse. (In 2023, around 6% of Snap spending went to state administrative costs and few Snap errors are due to fraud on the part of recipients.) They’ve also attacked recipients for using Snap on things such as sweetened drinks. Trump officials have said that they want to ban sugary beverages, candy and more, although similar efforts have failed in the past.And the USDA secretary, Brooke Rollins, signaled on Tuesday that she plans to target Snap under the guise of keeping undocumented immigrants from receiving benefits even though they are already generally prohibited from receiving food assistance.When Snap benefits are cut, researchers have found that children were more likely to be food insecure, in poor health and at risk for development delays. Since Snap is part of a larger ecosystem, advocates say cutting the program will increase healthcare costs, poverty and hardship.Retail giants such as Walmart, Albertsons, Costco, Sam’s Club and Kroger would also be severely affected since Snap dollars are most often spent there. More than 25% of all Snap dollars are spent at Walmart and nearly 95% of the program’s recipients say they shop at the retailer.Food banks and pantries would also be massively affected by cutbacks. “If Snap is cut at the levels they’re talking about, food banks are not going to be able to fill that gap – we’re meant to be an emergency system,” said Jason Riggs, the director of policy and advocacy at Roadrunner Food Bank of New Mexico. “A cut to Snap at this time, when food costs are continuing to rise, the timing is horrifying. We can’t food bank our way out of this.” New Mexico has the eighth highest hunger rates in the nation and Riggs said many of their clients already use Snap.In Los Angeles, 25% of households face food insecurity, far higher than the national average of 14%, and rates are expected to increase due to the effects of the recent wildfires. “If cuts to Snap are enacted, we would need to further draw on philanthropic and community support to try to meet the increased demand for our services,” said Chris Carter, senior policy and research manager at Los Angeles Regional Food Bank, which has distributed $14.2m pounds of food and personal care products through their network, which is a 37% increase compared with last year.Advocates of Snap say there are still countless people who qualify for assistance but do not apply for it due to administrative burdens, social stigma and deeply ingrained myths about welfare and poverty in the US. Food insecure veterans are consistently less likely than nonveterans to be enrolled in Snap and data from the National Council on Aging shows that while nearly 9 million older adults are eligible for Snap, they are not enrolled. Immigrants who are permanent residents or green card holders are only able to apply for Snap after a five-year waiting period, although there are a few exceptions for children and disabled people receiving other benefits.Since being diagnosed with lupus, pancreatitis and gallbladder stones, Michele Rodriguez has been unable to work and had to change her diet to include daily servings of fresh vegetables for juicing to help with her health conditions. If her benefit was reduced, she said she would have to prioritize feeding her two children and rely on food pantries, which would have long lines, or free giveaways for produce.“It’s just devastating because people like myself and seniors and children need help with food,” said Rodriguez, who sees the proposed cuts as being unfair and contrary to what Trump said while campaigning. “The price of food has not gone down. It’s really sad to see he’s only fighting for and helping people like him, but the people in the middle and lower class, what about us? Don’t you want to protect all of us?” More

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    Trump threatens 25% tariffs on foreign cars and semiconductor chips

    Donald Trump stood firm against warnings that his threatened trade war risks derailing the US economy, claiming his administration could hit foreign cars with tariffs of around 25% within weeks.Semiconductor chips and drugs are set to face higher duties, Trump told reporters at a news conference on Tuesday.The White House has repeatedly raised the threat of tariffs since Trump returned to office last month, pledging to rebalance the global economic order in America’s favor.A string of announced tariffs have yet to be introduced, however, as economists and business urge the Trump administration to reconsider.Duties on imports from Canada and Mexico have been repeatedly delayed; modified levies on steel and aluminum, announced last week, will not be enforced until next month; and a wave of so-called “reciprocal” tariffs, also trailed last week, will not kick in before April.Tariffs are taxes on foreign goods. They are paid by the importer of the product – in this case, companies and consumers based inside the US – rather than the exporter, elsewhere in the world.Asked on Tuesday if he had decided the rate of a threatened tariff on cars from overseas, Trump said he would “probably” announce that on 2 April, “but it’ll be in the neighborhood of 25%”.Upon being asked the same question about threatened tariffs on semiconductors and pharmaceuticals, Trump replied: “It’ll be 25% and higher, and it’ll go very substantially higher over the course of a year.”The ramp-up, he explained, was designed to lure manufacturers to the US. “When they come into the United States, and they have their plant or factory here, there is no tariff.”Executives have cautioned that the administration’s plan for tariffs risks harming the US economy. A 25% tariff on Mexico and Canada “will blow a hole in the US industry that we have never seen”, Jim Farley, the Ford CEO, told an investor conference in New York last week. More

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    ‘It comes from racism’: immigrant workers on Trump’s deportation push

    Donald Trump has ramped up anti-immigration fervor into his second presidency, promising mass deportations, pushing to increase arrests and bolstering public relations efforts to amplify arrests. The moves have sent a wave of terror through the undocumented worker community that underpins large parts of the US economy.“Every day I wake up and walk out the door, I go with the hope of going to work, but with the fear of not being able to come back,” said a construction worker and single parent in Texas who obtained immigration protection under the Biden administration. She requested to remain anonymous due to fears about her immigration status.“Every day I worry if something happens, who will take my kids,” she said. “I have only one child born in the US. They are the only one who might be able to return, but me and the other kids would not be able to come back.”She claimed that since Trump took office for his second term, there had been fewer opportunities to work construction jobs given the increased fear of Immigration and Customs Enforcement (Ice) raids at workplaces.Despite being in the US for 10 years and constantly trying to obtain documentation, she explained it took her experiencing weeks of wage theft to be able to get documentation through the deferred action program, which provides temporary status and work authorization to immigrants who have been victims of labor abuses.“Unfortunately, these next few years will be years of fear, years of silence,” she said. “I believe the anti-immigrant pushes are racist. People have been taken away without criminal records. We used to have the ability to pay fines before because we didn’t have criminal records, but I’ve heard from other immigrants, anyone being taken into custody by Ice, regardless of their situation, will be deported.”Trump has signed an executive order to allocate military resources at the US border with Mexico and opened Guantánamo Bay prison in Cuba to the detention of undocumented immigrants. The Department of Homeland Security also rolled back a policy of restricting Ice arrests at sensitive locations such as hospitals, places of worship and schools and the agency is pushing to recruit IRS agents to assist in immigration enforcement. The administration is also reportedly planning to reopen family detention centers.View image in fullscreenThe changes come as Trump campaigned with misleading and false statements about immigrants, portraying them as criminals and taking away jobs, including making a baseless claim that Haitian immigrants in Ohio were eating pets.Despite this rhetoric fomenting xenophobic sentiments, an October 2024 report by the Economic Policy Institute on the benefits of immigration to the US cited the enabling of economic growth as the US-born workforce declines, and the payment of nearly $100bn annually in taxes, and noted mass deportations actually result in job losses for US-born workers due to reduced local demand output.Several industries rely heavily on immigrant workers. Nearly 2.9 million immigrants, the most in any occupation group, are employed in construction and extraction, comprising 34% of employment in these occupations in the US.The Guardian spoke with several immigrant workers in construction about their experiences and fears caused by Trump’s immigration policies and the anti-immigrant sentiments stoked by his rhetoric and policies.Another undocumented construction worker in Texas said there is a “constant fear” in going to work every day that his workplace will be raided by Ice or that he will return home to find his family, the majority of whom are undocumented, taken away.“It is a constant fear. It’s something we can’t take from our minds, every instance of the day,” they said. “My main worry is there will be one day where my family might be taken away from me and be sent back to Mexico.”Trying to acquire legal documentation has been “almost impossible”, they added. “The reason behind these policies, it comes from racism. The majority of immigrants aren’t criminals. Like myself, a lot of immigrants come to this country to be able to fulfill their dreams, to be able to work. We’re humans and we have rights. The things we go through when being held in immigration detention, unless you live them, you won’t be able to understand it.”Andres Surquia of Georgia currently has immigration protection through deferred action – a government policy that allows certain undocumented immigrants to work and avoid deportation for two-year periods.“I’m scared because Trump has said he wants to remove deferred-action protections, which took me so long to get,” he said. “As immigrants, we come into this country to work and we want to be respected and protected.”The International Union of Painters and Allied Trades, which represents 140,000 workers in the US and Canada, pushed to secure deferred-action immigration protections for workers experiencing labor abuses in construction for the past several years under the Biden administration.“It was one of the main pillars we put forth as a union, in coalition with other unions, that really view immigration as a working-class issue,” said the IUPAT general president, Jimmy Williams. “Now, under the Trump administration it’s going to go back to all these workers having no recourse, and the employers continuing to be able to use their status as a way to keep them further and further from being able to speak out.”Immigration is a labor and economic issue, Williams said. The union views it as a responsibility to fight and defend these workers because they are their union members. But he expressed disappointment with Democrats whom he feels have so far failed to support these workers.“Where’s the resistance?” Williams asked. “When will the Democratic party really get it right on framing this as a working-class issue and put the target solely on where it belongs, which is on the employers that have abused this system for decades now, keeping workers’ rights down, keeping wages down? You’ve seen limited to no response from the opposition.”A construction worker in Texas who has been pursuing asylum said she had seen fewer people show up to work out of fear in recent weeks.“There’s not many people going to work any more, because of the fear. The only reason why I go to work is it’s a necessity to bring food home and pay bills,” she said. “They want to extract the people that are working in the farms, that are working in the fields, that are working in the restaurants that they eat in, and now they’re taking them without any explanation. It’s not fair.”Milton Velásquez is a construction worker in Maryland from El Salvador who currently has temporary protected status (TPS), provisional protection given to nationals of some countries in crisis. Trump has already revoked these protections for 350,000 Venezuelans and has incited fears he will revoke or limit protections for 1 million immigrants in the US from 17 nations granted protections under the Biden administration.“It scares me because if my TPS does get revoked, I will lose a lot of job opportunities without it and it would limit my income,” he said. “There is always fear of deportation. I try not to think about it, but what scares me the most is having to go back to El Salvador. I would have to work 10 times as much to get paid $10 a day.”Under the first Trump presidential term, Velásquez faced issues with trying to bring his son and daughter to the US from El Salvador through the Central American Minors program, which Trump shut down in 2017. He is still separated from his daughter.“I tried to get her a visa,” Velasquez added. “I’ve been longing to bring them here. That’s what I work for, to provide for my family, to get my family to come here.”Send us a tipIf you have information you’d like to share securely with the Guardian about the impact of the Trump administration’s temporary protected status decision, please use a non-work device to contact us via the Signal messaging app at (929) 418-7175. More

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    Trump policies make US ‘scary place to invest’ and risk stagflation, says Stiglitz

    Donald Trump’s tariff threats have made the US “a scary place to invest” and may unleash stagflation, the Nobel prize-winning economist Joseph Stiglitz has said.“It risks the worst of all possible worlds: a kind of stagflation,” Stiglitz said in an interview with the Guardian.He argued that despite optimism about the US economy at the turn of the year, the uncertainty created by Trump’s on-off tariff plans and the president’s apparent contempt for the rule of law would deter investment.“If you’re a corporate in the US or in Europe, do you think you have a global market, or do you have just a European market? Where do you locate your factories?” he said.He highlighted Elon Musk’s efforts to slash government departments without congressional authority, and Trump’s disregard for contracts – including the trade pact he struck with Canada and Mexico in his first term – among damaging signals for investors considering the US as a destination.“The government has a huge number of contracts and we’re just tearing them up. How much risk do you want? The US has become, I would say, a scary place to invest,” he said.Stiglitz argued that the uncertainty was likely to slow economic growth, while at the same time Trump’s tariffs – and retaliation by other countries – would drive up inflation.The prospect of rising inflation in the world’s largest economy has led investors to pare back bets on the US Federal Reserve cutting interest rates since Trump’s return to office, amid mounting concern over the fallout from a global trade war.Stiglitz, a Columbia University professor and former World Bank economist who served as chair of Bill Clinton’s council of economic advisers, said the Fed was “clearly worried” about the inflationary effects of Trump’s policies, which could lead it to raise interest rates.“Almost all economists agree that the tariffs will increase prices. How much it will increase prices is a little bit affected by the magnitude of the appreciation of the exchange rate, but all economists think that the extent of the appreciation of the exchange rate won’t be anywhere near enough to compensate for the tariffs.skip past newsletter promotionafter newsletter promotion“I could certainly see a scenario where we get to stagflation – we get inflation, and a weak economy,” he said. “I cannot see a really robust economy, because I just see the global economy suffering so much from the uncertainty that Trump poses.”Scott Bessent, the US Treasury secretary, has suggested the administration wants to bring down 10-year US Treasury yields, an important interest rate, which would have a knock-on effect across global markets. Lower Treasury yields would make it cheaper for Washington to borrow.But Stiglitz suggested the only way the president’s policies would positively contribute to that goal was by running the US into the ground. “The inflation from the tariffs is going in the wrong way, and the only thing that is going in the right way for Bessent is his efforts to crater the economy,” he said.“In supporting Trump’s economic policies, [Bessent] is helping to get the yield curve down by crashing the US economy – not a good policy, I would say.” More