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    Trump administration briefing: Democrats divided as funding bill passes; president rails against justice department

    The US Senate averted a government shutdown just hours before a Friday night deadline after 10 Senate Democrats joined nearly all Republicans to clear a key hurdle that advanced the six-month stopgap bill.The vote deeply dismayed Democratic activists and House Democrats who had urged their Senate counterparts to block the bill, which they fear would embolden Donald Trump and Elon Musk’s overhaul of the US government.Meanwhile, the US president used a speech at the Department of Justice – billed as a policy address for the administration to tout its focus on combating illegal immigration and drug trafficking – to focus on his personal grievances with that department.Here’s more on the key US politics news of the day:Senate averts shutdown but Democrats dismayedThe US Senate on Friday approved a Republican bill to fund federal agencies through September, averting a government shutdown hours before the midnight deadline after Democrats relented.The bill passed the Senate in a 54-46 vote, overcoming steep Democratic opposition. It next goes to Donald Trump to be signed into law.Read the full storyTrump vents fury about criminal cases in DoJ ‘victory lap’Taking over the justice department headquarters for what amounted to a political event, Donald Trump railed against the criminal cases he defeated by virtue of returning to the presidency in an extraordinary victory lap the department has perhaps never before seen.Read the full storyPutin praises Trump, likely raising alarm bells in Ukraine and Europe Vladimir Putin has praised Donald Trump for “doing everything” to improve relations between Moscow and Washington, after Trump said the US has had “very good and productive discussions” with Putin in recent days.The exchange of warm words between Trump and Putin is likely to cause further alarm in Kyiv and European capitals, already spooked by signs of the new US administration cosying up to Moscow while exerting pressure on Ukraine.Read the full storyVance booed at classical concertJD Vance, the US vice-president, was booed by the audience as he took his seat at a National Symphony Orchestra concert at Washington’s Kennedy Center on Thursday evening.Exclusive Guardian footage shows the vice-presidential party filing into the box tier. Booing and jeering erupted in the hall as Vance and his wife, Usha, took their seats.Read the full storyNewsom under fire for Bannon podcastGavin Newsom, the governor of California, was criticised for welcoming far-right provocateur Steve Bannon on to his podcast.Fellow potential future Democratic presidential candidate Andy Beshear, the governor of Kentucky, said “Bannon espouses hatred” and added “I don’t think we should give him oxygen on any platform, ever, anywhere”.Read the full storyMark Carney says Canada will never be part of USMark Carney has said Canada will never be part of the US, after being sworn in as the country’s 24th prime minister in a sudden rise to power.“We will never, in any shape or form, be part of the US,” the former governor of the Bank of Canada and the Bank of England told a crowd outside Rideau Hall in Ottawa, rejecting Donald Trump’s annexation threats. “We are very fundamentally a different country.”Read the full storyPro-Israel group touts US ‘deportation list’ of ‘thousands’ of namesA far-right group that claimed credit for the arrest of a Palestinian activist and permanent US resident who the Trump administration is seeking to deport claims it has submitted “thousands of names” for similar treatment.Mahmoud Khalil, an activist who recently completed his graduate studies at New York’s Columbia University, was detained this week and Donald Trump has said his arrest was the “first of many”. Betar US quickly claimed credit on social media for providing Khalil’s name to the government, adding that it had “been working on deportations and will continue to do so”.Read the full storyDemocratic senator ditches his Tesla over Musk cutsThe Arizona Democratic senator Mark Kelly announced he was ditching his Tesla car, because of brand owner Elon Musk’s role in slashing federal budgets and staffing and attendant threats to social benefits programs.“Every time I get in this car in the last 60 days or so, it reminds me of just how much damage Elon Musk and Donald Trump is doing to our country,” the former navy pilot said, in video posted to X.Read the full story60% of US voters disapprove of Musk cost-cuttingDonald Trump and Elon Musk face increasing headwinds in their attempt to slash federal budgets and staffing, after two judges ruled against the firing of probationary employees and public polling revealed strong disapproval of the Tesla billionaire’s work. A new Quinnipiac University poll found 60% of voters disapprove of how Musk and his so-called department of government efficiency are dealing with federal workers, while 35% approve.Read the full storyWhat else happened today:

    Marco Rubio told reporters that more visas of anti-war protesters who are on temporary status in the US will be revoked, Reuters reported.

    Former Democratic House speaker Nancy Pelosi released a statement in response to the government funding bill, calling it a “devastating assault on the wellbeing of working-class families”.

    Elon Musk’s Tesla has warned that Trump’s trade war could expose the electric carmaker to retaliatory tariffs that would also affect other automotive manufacturers in the US. The company said it “supports fair trade” but that the US administration should ensure it did not “inadvertently harm US companies”.
    Catching up? Here’s the roundup from 13 March. More

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    Democrats help advance Republican funding bill to avoid US shutdown

    A handful of Senate Democrats on Friday helped pave the way to approve a Republican-drafted bill that would fund the government and avert a shutdown ahead of the midnight deadline.In a 62-38 vote, 10 Senate Democrats joined nearly all Republicans to break the filibuster and move the seven-month funding bill to a final vote. As part of a deal to secure the Democratic votes, the parties agreed to allow a series of amendments on the measure.The result will deeply disappoint Democratic activists and House Democrats who had urged their Senate counterparts to block the bill that they fear would embolden Donald Trump and Elon Musk’s overhaul of the US government.The California Democratic representative and former House speaker Nancy Pelosi came out against the continuing resolution (CR) on Friday after the Senate minority leader, Chuck Schumer, announced on Thursday he would urge Senate Democrats to advance the bill. Schumer argued that allowing a government shutdown would be “a far worse option” than passing the “deeply partisan” Republican legislation, but Pelosi called the bill a “devastating assault on the wellbeing of working-class families”.“Democratic senators should listen to the women,” she said in a statement. “Appropriations leaders Rosa DeLauro and Patty Murray have eloquently presented the case that we must have a better choice: a four-week funding extension to keep government open and negotiate a bipartisan agreement. America has experienced a Trump shutdown before – but this damaging legislation only makes matters worse.”Alexandria Ocasio-Cortez also condemned Schumer for caving to Republican demands on a government funding bill, saying the move had created a “deep sense of outrage and betrayal” among Democrats.Speaking to reporters in Leesburg, Virginia, where House Democrats were gathered for their annual policy retreat, Ocasio-Cortez said she was mobilizing Democratic supporters to push Schumer to oppose what she characterized as an “acquiesce” to the GOP bill.“We have time to correct course on this decision. Senate Democrats can vote no,” the New York Democrat said.The rift has reportedly sparked such anger among House Democrats that some are encouraging Ocasio-Cortez to challenge Schumer in a primary election, according to CNN. When asked about these suggestions, she declined to comment.On Thursday, Schumer said on the Senate floor: “The Republican bill is a terrible option. But I believe allowing Donald Trump to take even much more power via a government shutdown is a far worse option.”Trump praised Schumer on Truth Social, writing: “Congratulations to Chuck Schumer for doing the right thing – Took ‘guts’ and courage!”Schumer reiterated his support for the spending bill on the Senate floor on Friday, warning that a government shutdown would mean that Trump, Elon Musk and the so-called “department of government efficiency” (Doge) would be free to make even more disruptive cuts to federal agencies.“If government were to shut down, Doge has a plan in place to exploit the crisis for maximum destruction,” Schumer said. “A shutdown will allow Doge to shift into overdrive. It would give Donald Trump and Doge the keys to the city, state and country. Donald Trump and Elon Musk would be free to destroy vital government services at a much faster rate than they can right now and over a much broader field of destruction that they would render.”But the Federal Unionists Network, a group of federal employees that opposes the administration’s campaign to dramatically downsize government, disagreed, saying the funding bill under consideration would make the situation worse.“Once again, Congress is failing in its responsibility to the American people,” spokesperson Chris Dols said in a statement. “If passed, this CR will give Trump and Musk the power to complete their assault on federal workers.”skip past newsletter promotionafter newsletter promotionThe Senate majority leader, John Thune, a Republican, told reporters on Friday that he may allow some amendment votes on the spending bill, which could potentially offer a way to assuage Democrats’ concerns.The funding bill represents the first major leverage point in Trump’s second term, with House Democrats urging the Senate to instead consider a 30-day funding stopgap to allow more time for negotiations.Unlike the House vote, where all but one Democrat voted against the government funding bill, the response in the Senate is fractured. Republicans hold a 53-47 majority, and the Kentucky senator Rand Paul is expected to vote against the bill. If that is the case, eight Democratic votes will be needed to send the bill to Trump’s desk.While facing intense pressure from within their party to resist Trump and his billionaire ally Musk, the Senate Democrats who are leaning yes are worried about the impacts of a government shutdown, and what bill they could get passed from their minority position anyway.The yes crowd includes the Pennsylvania senator John Fetterman, who told MSNBC on Tuesday: “We don’t agree with what’s been sent to us but, you know, if we withhold our votes, that is going to shut the government down.”Still, Ocasio-Cortez particularly criticized Senate Democrats for even considering withdrawing support from a vote that nearly all battleground House Democrats were willing to take.“There are members of Congress who have won Trump-held districts in some of the most difficult territory in the United States who walked the plank and took innumerable risks in order to defend the American people,” she said. “Just to see Senate Democrats even consider acquiescing to Elon Musk, I think, is a huge slap in the face.” More

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    Oz vows to make Americans healthier but dodges questions on Trump cuts

    Dr Mehmet Oz promised senators on Friday to fight healthcare fraud and push to make Americans healthier if he becomes the next leader of the Centers for Medicare and Medicaid Services.But the former heart surgeon and TV personality dodged several opportunities to say broadly whether he would oppose cuts to Medicaid, the government-funded program for people with low incomes.Oz, Donald Trump’s pick to be the next CMS administrator, also said technology such as artificial intelligence and telemedicine can be used to make care more efficient and expand its reach.“We have a generational opportunity to fix our healthcare system and help people stay healthy for longer,” he said in his opening remarks.He faced over two and a half hours of questioning before the Republican-controlled Senate finance committee, which will vote later on whether to forward his nomination to the full Senate for consideration.Leading the Centers for Medicare and Medicaid Services presents a “monumental opportunity” to make the country healthier, Oz told senators on Friday morning.“We don’t have to order people to eat healthy, we have to make it easier for people to be healthy,” adding that he considered maintaining good health a “patriotic duty”.Republicans, who have coalesced around Trump’s nominees for the health agencies, asked Oz about his plans for eliminating fraud from the $1tn programs.Democrats, meanwhile, tried to pin him down on potential cuts to the state and federally funded Medicaid program that Republicans are considering.The 64-year-old was a respected heart surgeon who turned into a popular TV pitchman. Now he has his sights on overseeing health insurance for about 150 million Americans enrolled in Medicare, Medicaid or Affordable Care Act coverage.Republicans, who have coalesced around Trump’s nominees for the health agencies, are likely to ask Oz about his plans for Medicare and Medicaid, including the Trump administration’s focus on eliminating fraud from the $1tn programs.Democrats, meanwhile, will question Oz’s tax filings, which they say show he has used a tax code loophole to underpay taxes by thousands of dollars on Medicare, the program he will oversee. They will also grill Oz on any cuts he would make to the health insurance coverage as well as comments on his TV show supporting privatized Medicare.The US office of government ethics has done an “extensive review” of Oz’s finances, a spokesperson, Christopher Krepich, said in a statement about Oz’s taxes. He added that the office had indicated “any potential conflicts have been resolved and he is in compliance with the law”.Oz has hawked everything from supplements to private health insurance plans on his former TV series, The Dr Oz Show, which ran for 13 seasons and helped him amass a fortune.Oz’s net worth is between $98m and $332m, according to an analysis of the disclosure, which lists asset values in ranges but does not give precise dollar figures. His most recent disclosure shows he also holds millions of dollars’ worth of shares in health insurance, fertility, pharmaceutical and vitamin companies. He has promised to divest from dozens of companies that would pose conflicts for him as the CMS administrator.In the job, he could wield significant power over most health companies operating in the US because he can make decisions about who and what are covered by Medicare and Medicaid.Oz’s hearing comes as the Trump administration seeks to finalize leadership posts for the nation’s top health agencies. On Thursday, Senate committees voted to advance the nominations of Marty Makary, poised to lead the Food and Drug Administration, and Jay Bhattacharya, set to helm the National Institutes for Health, for a full Senate vote. The nomination of Dave Weldon to the Centers for Disease Control and Prevention was abruptly withdrawn on Thursday.Those men have all leaned into Robert F Kennedy Jr’s call to “Make America healthy again”, a controversial effort to redesign the nation’s food supply, reject vaccine mandates and cast doubt on some long-established scientific research.“Americans need better research on healthy lifestyle choices from unbiased scientists,” Oz wrote late last year in a social media post praising Kennedy’s nomination to be health secretary.This is not Oz’s first time testifying before senators. In 2014, several senators scolded him during a hearing about the questionable weight loss products he hawked on his television show. More

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    Democratic Senator Mark Kelly to let go of his Tesla over Musk’s federal cuts

    The Arizona Democratic senator Mark Kelly announced he was ditching his Tesla car, because of brand owner Elon Musk’s role in slashing federal budgets and staffing and attendant threats to social benefits programs.“Every time I get in this car in the last 60 days or so, it reminds me of just how much damage Elon Musk and Donald Trump is doing to our country,” Kelly said, in video posted to X, the social media platform owned by Musk.Kelly also said he did not want to be “driving the car built and designed by an asshole”.Kelly and Musk first clashed recently after Musk responded to messages Kelly posted about a trip to Ukraine – criticizing Trump regarding military aid to Ukraine troops as they fight against Russian invaders – by calling him a “traitor”.Kelly called Musk “not a serious guy” and added: “Traitor? Elon, if you don’t understand that defending freedom is a basic tenet of what makes America great and keeps us safe, maybe you should leave it to those of us who do.”Musk is the world’s richest person but his focus is currently domestic, implementing brutal cuts through the so-called department of government efficiency, or Doge.Polling shows such cuts are unpopular. Musk’s move into politics has also had an adverse effect on some of his businesses, in the case of Tesla prompting boycotts and vandalism and seeing sales and shares fall. Earlier this week, it all led Trump to promote Teslas at the White House.On Friday, Kelly joined Americans including the singer Sheryl Crow in dumping his Tesla, alluding to his past as a Nasa astronaut by saying: “I bought a Tesla because it was fast like a rocket ship. But now every time I drive it, I feel like a rolling billboard for a man dismantling our government and hurting people. So Tesla, you’re fired!”In video shot near the Capitol, Kelly said he was driving to work in the car for the last time.View image in fullscreen“When I bought this thing,” he said. “I didn’t think it was going to become a political issue. Every time I get in this car in the last 60 days or so, it reminds me of just how much damage Elon Musk and Donald Trump [are] doing to our country, talking about slashing social security, cutting healthcare benefits for poor people, for seniors. It’s one bad thing after the next. [Musk is] firing veterans. I’m a veteran.”Kelly is also a former US navy pilot.“So I have a really hard time driving around in this thing,” he continued. “So I think it’s time for an upgrade today. So this is going to be my last trip in this car. There’s some things I really liked about it. There are things I didn’t like about it, but that doesn’t matter. What matters is … doing the right thing. I think it’s time to get rid of it.“You know, Elon Musk kind of turned out to be an asshole, and I don’t want to be driving the car built and designed by an asshole. So, looking forward to my new ride.”Kelly’s language reflected a trend of Democrats using profane language in an attempt to better communicate with voters, particularly on social platforms and podcasts, seeking to bypass traditional media.Lis Smith, a Democratic operative famous for her own F-bombs, told Politico: “Some of it is genuine, some of it is people trying to seem faux-edgy authentic.”On Friday, Musk did not immediately respond to Kelly. He did post complaints about vandalism done to Teslas and Tesla stores, one of which compared such actions to Kristallnacht, the “Night of the Broken Glass” in 1938 when Nazis in Germany attacked Jewish people and businesses.Musk remains the subject of controversy over his behavior at Trump’s inauguration, when he gave two Nazi-style salutes. More

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    The US government could shut down: here’s what you need to know

    The US stands hours away from a partial government shutdown as Democrats decide whether to play ball with Republicans on the first major legislative hurdle in Trump’s second administration.The House approved a stopgap funding measure called a continuing resolution last week, and the Senate minority leader, Chuck Schumer, has urged Democrats in the Senate to pass the measure in the upper chamber.Lawmakers face a midnight Friday deadline, or the government will be partly shut downIt is an event with the potential to inflict disruption to a range of public services, cause delays in salaries and wreak significant damage on the national economy if it becomes prolonged.Schumer faces intense backlash from House Democrats and others in his party, many of whom see any compliance with the Trump agenda as giving up the little leverage Democrats have.What happens when a US government shutdown takes place?It’s not immediately clear which government services would be affected in this shutdown, as the Trump administration hasn’t warned the public about what could happen.But in past shutdowns, thousands of federal government employees were put on furlough, meaning that they were told not to report for work and go unpaid for the period of the shutdown, although their salaries were paid retroactively when it ended.Other government workers who perform what are judged essential services, such as air traffic controllers and law enforcement officials, continued to work but did not get paid until Congress acted to end the shutdown.Depending on how long it lasts, national parks could either shut entirely or open without certain vital services such as public toilets or attendants. Passport processing could halt, as could research at national health institutes.What causes a shutdown?Simply put, the terms of a piece of legislation known as the Anti-Deficiency Act, first passed in 1884, prohibits federal agencies from spending or obligating funds without an act of appropriation – or some alternative form of approval – from Congress.If Congress fails to enact the 12 annual appropriations bills needed to fund the US government’s activities and associated bureaucracy, all non-essential work must cease until it does. If Congress enacts some of the bills but not others, the agencies affected by the bills not enacted are forced to cease normal functioning; this is known as a partial government shutdown.How unusual are US government shutdowns?For the first 200 years of the US’s existence, they did not happen at all. In recent decades, they have become an increasingly regular part of the political landscape, as Washington politics has become more polarised and brinkmanship a commonplace political tool. There have been 20 federal funding gaps since 1976, when the US first shifted the start of its fiscal year to 1 October.Three shutdowns in particular have entered US political lore:

    A 21-day partial closure in 1995 over a dispute about spending cuts between President Bill Clinton and the Republican speaker, Newt Gingrich, that is widely seen as setting the tone for later partisan congressional struggles.

    In 2013, when the government was partially closed for 16 days after another Republican-led Congress tried to use budget negotiations to defund Barack Obama’s signature Affordable Care Act, widely known as Obamacare.

    A 34-day shutdown, the longest on record, lasting from December 2018 until January 2019, when Trump refused to sign any appropriations bill that did not include $5.7bn in funding for a wall along the US border with Mexico. The closure damaged Trump’s poll ratings.
    What is triggering the latest imminent shutdown?Republicans hold 53 seats in the Senate but need 60 votes to get the bill ready for passage, meaning they need Democratic support. Democrats in the House near uniformly oppose the measure, with just one member defecting. These budget votes are one way Democrats can exert power with the runaway Trump administration, led by the billionaire Elon Musk and his so-called “department of government efficiency” (Doge) slashing the federal workforce.skip past newsletter promotionafter newsletter promotionSchumer plans to vote to move the measure forward, saying it’s worse for Americans if he doesn’t approve the “deeply partisan” Republican stopgap legislation. “If government were to shut down, Doge has a plan in place to exploit the crisis for maximum destruction. A shutdown will allow Doge to shift into overdrive. It would give Donald Trump and Doge the keys to the city, state and country. Donald Trump and Elon Musk would be free to destroy vital government services at a much faster rate than they can right now and over a much broader field of destruction that they would render.”Other Democrats strongly disagree. Nancy Pelosi, the former House speaker, said the bill would be a “devastating assault on the wellbeing of working-class families”. Senators should follow their appropriations leaders, Rosa DeLauro and Patty Murray, who have proposed a four-week funding extension to keep the government operating while both parties work on a bipartisan agreement, she said.“America has experienced a Trump shutdown before – but this damaging legislation only makes matters worse,” Pelosi said.The younger wing of the party is especially incensed by Schumer’s defection. “There are members of Congress who have won Trump-held districts in some of the most difficult territory in the United States who walked the plank and took innumerable risks in order to defend the American people,” Representative Alexandria Ocasio-Cortez said. “Just to see Senate Democrats even consider acquiescing to Elon Musk, I think, is a huge slap in the face.”How could a shutdown affect the wider economy?There is no current estimate of what the costs to the economy could be if the government shuts down this time.However, according to the congressional budget office, the 2018-19 shutdown imposed a short-term cost of $11bn on the US economy, an estimated $3bn of which was never recovered after the stoppage ended.How has Donald Trump reacted?Trump would probably face blowback if the government shuts down, just as he did during the 2018-19 shutdown.He has so far praised Schumer for “doing the right thing”.“Took ‘guts’ and courage!” the president wrote on Truth Social. “The big Tax Cuts, L.A. fire fix, Debt Ceiling Bill, and so much more, is coming. We should all work together on that very dangerous situation. A non pass would be a Country destroyer, approval will lead us to new heights. Again, really good and smart move by Senator Schumer. This could lead to something big for the USA, a whole new direction and beginning!” More

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    US rebuts Hamas’s ‘entirely impractical’ ceasefire demands

    The Trump administration has accused Hamas of making “entirely impractical” demands and stalling on a deal to release a US-Israeli hostage in exchange for an extension of the Gaza ceasefire.“Hamas is making a very bad bet that time is on its side. It is not,” the office of Donald Trump’s envoy Steve Witkoff and the US national security council said in a statement. “Hamas is well aware of the deadline, and should know that we will respond accordingly if that deadline passes,” it said, adding that Trump had already vowed Hamas would “pay a severe price” for not freeing hostages.A week ago Trump repeated a threat to destroy Hamas in a “last warning” to release the hostages, but it is unclear exactly to which of several potential deadlines the new statement referred.The US appears to have brushed aside an offer made earlier on Friday by the militant Islamist organisation to free Edan Alexander, an Israeli-American hostage who was abducted while serving as a soldier in the Israel Defense Forces during Hamas’s surprise raid into Israel in October 2023, and the remains of four other Israeli-Americans who have died in captivity in Gaza.“Unfortunately, Hamas has chosen to respond by publicly claiming flexibility while privately making demands that are entirely impractical without a permanent ceasefire,” the statement added.The reaction from the US dashed any hopes of sudden progress in continuing indirect negotiations in Qatar over the fragile ceasefire in Gaza but will comes as a relief to the Israeli government.The initial phase of the ceasefire in the devastated territory came into effect in January but lapsed almost two weeks ago. In recent statements, Hamas has said it wants Israel to implement the second phase of the ceasefire, which was supposed to definitively end the conflict.Israel has so far refused to move to the second phase, and is calling for an extension of several weeks to the first phase instead, leaving open the possibility of a new offensive in the months to come.Witkoff has presented a “bridge” proposal in Qatar to extend the first phase of the truce to mid-April if Hamas releases living hostages in exchange for Palestinian prisoners.“Hamas was told in no uncertain terms that this ‘bridge’ would have to be implemented soon – and that dual US-Israeli citizen Edan Alexander would have to be released immediately,” the statement said.After the Hamas statement, Netanyahu’s office said Israel had “accepted the Witkoff outline and showed flexibility”, but said “Hamas is refusing and will not budge from its positions”.“At the same time, it continues to use manipulation and psychological warfare – the reports about Hamas’s willingness to release American hostages are intended to sabotage the negotiations,” the prime minister’s office said.It added that Netanyahu would convene his ministerial team on Saturday night to receive a detailed report from the negotiation team and “decide on the next steps for the release of hostages”.Netanyahu has consistently opposed any permanent end to the war in Gaza, in part due to domestic political considerations. However, the Israeli leader has made it clear that maintaining good relations with the White House is a priority.After more than 16 months of indirect negotiations between Israel and Hamas brokered by the US, Qatar and Egypt, Washington recently opened a direct channel of talks with Hamas with the aim of freeing US citizens abducted by the organisation during its raid into Israel.Hamas abducted 251 hostages during its attack and killed about 1,200 people, mostly civilians.In a social media post earlier this month, Donald Trump said there would be “hell to pay” if all the 58 hostages still in Gaza were not released. Fewer than half are thought to be still alive.In an attempt to pressure Hamas, Israel has cut off all supplies of goods to Gaza and on Sunday stopped any remaining electricity supplies from Israel to the territory.Almost the entire population of Gaza was displaced by Israel’s military offensive, which killed 48,500 people, mostly civilians, and reduced swaths of the territory to rubble.The six-week first phase of the ceasefire led to the exchange of 25 living Israeli hostages and the remains of eight others, in return for the release of about 1,800 Palestinian prisoners held in Israel. It also allowed much-needed food, shelter and medical assistance to re-enter Gaza.Official reaction from the Israeli government to the news last week of direct talks between the US and Hamas was limited to a single terse statement by the office of Netanyahu acknowledging the negotiations, but the mass-market newspaper Yedioth Ahronoth said Israel had been “stunned to discover that, behind its back, Trump’s envoy had flirted for weeks in Doha” with a senior Hamas official. More

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    Why is Donald Trump crashing the US economy? Because he’s high on his own supply of fake news | Jonathan Freedland

    Not content with shattering the post-1945 international order, which delivered prosperity and power to his country for eight long decades, Donald Trump is seemingly set on destroying the US economy. And he’s doing it because he, and the American right, have lost their ability to grasp reality.Start with the economic vandalism, unfolding in real time and mesmerising to watch. For weeks, you could see the US stock market falling and falling until on Thursday the S&P index passed an unwanted milestone: it stood more than 10% down from the peak it had reached less than a month earlier, a fall that meets the Wall Street definition of a “correction”. In other words, even if the market eventually rallies, this is no blip.The talk now is of a recession and you can tell that Trump himself suspects it’s coming. “I hate to predict things like that,” he said this week. “There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America … It takes a little time.” Did you catch that? The great booster, who campaigned on a promise to turn things around “on day one”, is now adopting the lotus position, talking of “transition” and urging patience.The source of the trouble is not mysterious. It is Trump himself. His actions since taking office less than two months ago have spooked investors. They crave stability but see a president who governs by whim. Those whims can change hourly – imposing a tariff after breakfast only to drop it before lunch. One minute it’s a 50% levy on Canadian aluminium, the next it’s 200% on European wine, only for one or the other to be binned within hours. It keeps Trump in the news, which he loves, but plays havoc with companies that have to plan for the long term. Confronted by chaos, they prefer to wait to see where things settle. That means orders on hold, workers without work, less money in everyone’s pocket.Add in a wild-eyed guy with a chainsaw taking chunks out of a federal bureaucracy that provides services that, for all their Ayn Rand talk of a minimal state, business leaders rely on – whether it’s schools, roads or air traffic controllers to keep planes in the sky – and you can see why the only surging number on Wall Street right now is the one that measures pessimism.To be clear, it’s not just the manic style of Trump and Elon Musk that’s causing alarm. Even if imposed calmly, tariffs are a prosperity killer. Trump may be their biggest advocate, but it’s clear he doesn’t understand how they work. He speaks as if the people paying them will be hated foreigners, the likes of China or Canada forced to pay billions into US coffers. When, in fact, tariffs are a sales tax levied on US consumers who have to pay extra for imported goods. A tariff on foreign cars, say, is not paid by Germany but by an American who buys a BMW. It drives prices up for Americans. When other countries hit back with tariffs of their own, making US products harder to sell, you’re in a trade war that only makes everything worse.Hence the current dread of stagflation, the grim combination of zero growth and rising inflation. The word was born in the Jimmy Carter era, but the Trumpcession will have bonus features all its own. When I spoke to Heather Boushey, who served as an economic adviser to the Biden administration, for the latest Politics Weekly America podcast, she told me that Musk’s supremacy over so much of the federal government, even as he continues to run his own mega-businesses, is having one particular chilling effect. “Companies are looking at this and saying: ‘I can’t compete with an Elon Musk that’s in charge of the regulatory agencies, that’s going to do things only for himself.’ That’s going to stymie investment, it’s going to stymie innovation, and ultimately be terrible for the US economy.”View image in fullscreenBoushey adds that Trump’s US will be less able to weather a recession, because the Trump-Musk cuts are stripping away so much of the infrastructure of support, cutting a combined total of more than $1tn from the Medicaid and food stamps programmes alone. When the storm hits, families will go hungry.It’s bad for the country and bad for Trump politically: the people most dependent on soon-to-be gutted government help such as Medicare or Medicaid are Trump voters. As the impact of the cuts kicks in – national parks closed during the summer, delayed benefits for veterans, a deadly accident, for example, in an area previously safeguarded – many Americans could sour on the president who promised to make their lives better. Especially when they see him go ahead with his signature policy: a $4.5tn tax cut that will massively benefit the very richest.Why, then, is Trump pursuing a course of action that can only damage the country and dent his own standing? The explanation lies in the way Trump sees the world. Which is through a lens clouded by the very phenomenon he once did so much to identify: fake news.For most of the past decade, the focus has been on the likes of Trump and Musk as peddlers of falsehoods. There has been less attention paid to their role as consumers of lies. And yet it’s long been clear that Musk is spending too much time on X and is getting extremely high on his own supply. Witness his credulous swallowing of all kinds of far-right rubbish about Britain.Trump is scarcely any better, believing provable nonsense about Volodymyr Zelenskyy’s poll ratings being in the single digits, when in fact the Ukrainian leader’s numbers are much better than his, to pick just one instance of Trump putting aside the briefings he could have from the world’s best-resourced intelligence agencies and preferring to gobble up internet slop instead.It’s a function of Trump not shifting his core views in decades – he was banging on about tariffs in the 1980s – and being, as Zelenskyy memorably put it, “trapped” in a “disinformation bubble”. It consists of the team of sycophants that now envelops him – the “adults in the room” of the first term are long gone – and whose message is reinforced when he meets the press: note how many of the supposed reporters whom Trump encounters are, in fact, representatives from pro-Trump outlets so slavish they make Fox News look like Edward R Murrow.The result, says one longtime Trump watcher, is that “he’s more sheltered from outside information than he ever has been before”. Like Saddam Hussein in his bunker as US forces approach the palace, he is being told that tariffs made the US rich in the 19th century and will do so again, that Elon Musk is popular and that the people are grateful to their leader, even when the economy is nosediving. Inside the info-bubble, any contrary voice can be dismissed, even if it requires acrobatics to do it. Trump’s latest target is the Murdoch-owned, conservative Wall Street Journal, which dared point out the dangers of a trade war: Trump countered that the “globalist” WSJ was “owned by the polluted thinking of the European Union”. Inside the bubble, there is no room for truth: it must be kept out by lies.For now, and armed with the loudest megaphone on the planet, the US president can keep reality at bay. But eventually, Americans will be able to see with their own eyes and in their own lives what Trump has done to the US and the wider world. Their daily experience will expose him for what he is: a confidence trickster who has made them poorer and less safe. The only question is when.

    Jonathan Freedland is a Guardian columnist

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