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      ‘It’s going to be messy’: Americans on how Trump’s tariffs are shaping their spending

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      A few weeks ago, Dane began stocking up on “paper products”, “cases of paper towels, toilet paper”, “piddle-pads” for their shih-tzu, and his wife upgraded from an iPhone 8 to 14.The 73-year-old in South Carolina said the purchases – which were made to get ahead of Donald Trump’s trade policies – reminded him of the early weeks of the Covid pandemic, when he scrambled to buy masks, gloves and toilet paper.“It’s scary,” Dane said. “Prices are going to go up because of tariffs … It’s going to be messy.”While campaigning last year, Trump constantly touted his love of tariffs. But it was not until his so-called “liberation day” on 2 April – where the president announced sweeping duties on incoming goods, punishing competitors, allies and small and developing countries alike – that he spooked global financial markets and provoked fears of spiralling inflation and stagnant growth.Amid a US government bond sell-off, the president paused his most eye-watering tariffs for 90 days, apart from China, whose goods are set to be hit with a 145% levy.Hundreds of Americans got in touch with the Guardian to share how the uncertainty is affecting their consumption habits.Dane, who is retired, worked as an entrepreneur with his wife most of his career before later becoming an English teacher. He said he was a Republican in the 1980s but is fearful about how the US is “not going the right way” under Trump, and is unhappy with his “dystopian” policies towards global allies, the economy, education, scientific research and more.View image in fullscreenCurrently, Dane is on a trip to Paris and plans to bring home consumer goods potentially hit by 10% tariffs on European Union imports.“We’ll probably be getting tea, bringing back some cheese, some butter,” he said. “I would love to bring back eggs but that would be a disaster. I’d have scrambled eggs in my suitcase.”Amid tariff uncertainty, Heather, a 61-year-old college professor in Texas, said she and her husband can mostly weather food cost fluctuations, but brought forward the purchase of a new car “inanticipation of price hikes”.She said they owned a 14-year-old Mini Cooper, which ran on gas, that they planned to replace with a hybrid vehicle at some point. They decided to replace their car now to avoid potential inflation – and reduce expenditure on gas.“The economic instability of the Trump administration certainly gives one pause,” she said. “It’s just so much instability, chaos and [the] unknown.”It’s a similar story for Stefanie, a 56-year-old educator and former tech worker in Nevada, who bought a Toyota Tacoma to replace her old Jeep as well as converting some investments into cash.Stefanie began strategizing about being more resilient to tariffs as soon as Trump was elected.“The one thing I learned in the first administration is to believe him: he says bizarre things, and then he does bizarre things,” she said.She’s cutting back on subscriptions and future travel plans, while stockpiling kitchen staples such as rice, cooking oils, vinegar and flour and replacing worn-out clothes including shoes and jeans, “before inflation hits”.“The supply chain is so globalized that tariffs really hit everything,” Stefanie said.But for Ishaan*, a 51-year-old engineer in Texas, the economic picture means he is abstaining from major purchases.“Everyone I know has started tightening their belts,” he said. “I am cutting out unnecessary expenses, cancelled my gym membership, focusing on savings.”The focus for Ishaan, who fears higher prices and an economic slowdown, is to build up his savings in cash. He feels “scared to invest in any stocks or bonds right now” amid market volatility.Likewise for Jonathan*, a 70-year-old in New Jersey, the financial fallout from Trump’s trade wars means he has been forced to rule out planned purchases and strip consumption back to the essentials.Jonathan said his individual retirement account (IRA) was initially “decimated” – although it ticked up slightly after Trump paused his tariffs on Wednesday. He said it was currently down about 15%.That means cancelling plans to redo the carpet in his house and replace two old televisions, Jonathan said. “In short, we’ll buy only necessities and pay bills until this stupidity ends.”Russ a 35-year-old physicist in New Mexico, said the Trump administration’s policies were “causing me to think about what kinds of spending behavior I could have done without this whole time”.He has an eight-year-old phone and nine-year-old MacBook computer that still work fine, which he will not be replacing. The prospect of runaway price rises for consumer electronics, often from China, have led him to reconsider: “Do I really need this, or do I just want this?“I see these things as being as much toys as necessities,” he said. “Maybe I’ll just go back to a dumbphone or something like that – I fantasize sometimes about not getting all these notifications all the time, like the phones we had back in 2005. But maybe that’s a Luddite fantasy.”Russ said that he was already boycotting Amazon and Target – companies that many feel have aligned themselves with Trump’s agenda such as rolling back their own DEI schemes. He’s trying to shop more at local, independent shops rather than “everything stores”, which he notes is more expensive and time consuming but ultimately worth it.“As an American citizen and registered voter, nobody really cares what you think until November of every other year, you feel kind of voiceless,” he said. “You think, well, if dollars are the only tools we have any more, then damn it, I’m going to cast those votes and allocate my spending accordingly.”View image in fullscreenLikewise, small business owner Christine* said the disruption could cause a wider re-evaluation of US consumer habits.Amid the uncertainty, Christine, 41, stocked up on supplies for her Miami acupuncture business for two years, and bought her son’s fifth birthday present – a bike – early for July. But she said she had already noticed less demand for her work.More broadly, the prospect of inflationary tariffs is accelerating Christine’s reconsideration of how much “stuff” she needs. She’s recently attended “these lovely parties” where friends bring unwanted clothes and they “switch it all around” rather than buying fast fashion.“I really resent being drafted into this mad trade war,” Christine said, “but if there is a silver lining, maybe it’s that at least some people like me will question their unsustainable capitalistic practices.”*Some names have been changed. More

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      ‘Completely out of touch’: golf and dinners for ‘king’ Trump as economy melts down

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      After lighting a fuse under global financial markets, Donald Trump stepped back – all the way to a Florida golf course. A week later, having just caved to pressure to ease his trade tariffs, the US president defended the retreat while hosting racing car champions at the White House.Trump had spent the time in between golfing, dining with donors and making insouciant declarations such as “this is a great time to get rich”, even as the US economy melted down.It was a jolting juxtaposition that prompted comparisons with the emperor Nero, who fiddled while Rome burned, or insane monarchs who lost touch with reality. It also provided a clear illustration of how Trump governs during his volatile and extreme second presidency: erratically, with little attention to convention, and often on the hoof from one public engagement to another surrounded by courtiers who never disagree with him.“He’s certainly living up to the caricature of being a mad king,” said Kurt Bardella, a Democratic strategist. “When you’re addressing a ballroom in a tuxedo, telling people to take the painful medicine, or on your umpteenth golf vacation while economic chaos is rippling throughout this country and others, at best you’re completely out of touch.“At worst, you’re a sociopathic narcissist who doesn’t give a crap about anyone suffering. Ultimately there will be a political price to pay for that.”Trump had swerved past April Fools’ Day to make 2 April his so-called “liberation day”. Against a backdrop of giant US flags in the White House Rose Garden, he announced sweeping tariffs – taxes on foreign imports – on dozens of countries, using a widely discredited formula to upend the decades-old order of global trade.Trump did not decide on the final plan until less than three hours ahead of his splashy event, according to the Washington Post newspaper, but found Vice-President JD Vance and other staff constantly deferential. The Post quoted a person close to his inner circle as saying: “He’s at the peak of just not giving a fuck any more. Bad news stories? Doesn’t give a fuck. He’s going to do what he’s going to do. He’s going to do what he promised to do on the campaign trail.”A day later, with markets suffering trillions of dollars in losses, Trump boarded Air Force One bound for Miami, Florida. He arrived at his Doral resort for a Saudi-funded LIV Golf event in a golf cart driven by his son Eric Trump.Trump woke up on Friday at Mar-a-Lago, his gilded private club in Palm Beach, Florida, and donned a red “Make America great again” cap and white polo shirt. His limousine glided down a street lined with palm streets and cheering fans before arriving at his golf club.He also spent the morning defending himself on his Truth Social media platform and vowing to stay the course. “TO THE MANY INVESTORS COMING INTO THE UNITED STATES AND INVESTING MASSIVE AMOUNTS OF MONEY, MY POLICIES WILL NEVER CHANGE,” he wrote.Trump remained in Florida during the dignified transfer of four US soldiers killed during a training exercise in Lithuania, sending Pete Hegseth, the defense secretary, to Dover air force base in Delaware to represent him. Instead the president attended a candlelit dinner for Maga Inc, an allied political organisation, reportedly charging $1m a plate.Maggie Haberman, a Trump biographer and New York Times reporter, commented on CNN: “I think long ago he stopped caring about certain optics, and he’s made very clear during this presidency, he’s going to do what he wants … He is not messaging this in a way that suggests that he understands what average people might be going through right now.”On Saturday, Trump played at another family golf course, in Jupiter, Florida, prompting an official White House announcement: “The president won his second round matchup of the senior club championship today in Jupiter, Fla., and advances to the championship round on Sunday.”When Sunday came the president played on even as his cabinet members scrambled to political TV shows and offered conflicting signals, with some insisting that his tariffs were set in stone and others suggesting that he remained open to negotiation.Trump returned to Washington and a growing chorus of dissent from allies, captains of industry and his own Republican loyalty, pleading with him to change course before a potential recession turned into a depression. Yet his first public event was a celebration of baseball’s World Series winners, the Los Angeles Dodgers, where he was presented with a “Trump 47” baseball shirt.On Tuesday, in bow tie and tuxedo, Trump told a fundraising dinner in Washington: “I know what the hell I’m doing.” He claimed that the tariffs were forcing world leaders to negotiate with him, boasting: “I’m telling you, these countries are calling us up, kissing my ass. They are. They are dying to make a deal.”But the following day, Trump blinked. He posted on Truth Social that, while escalating tariffs on China, he would pause others for 90 days to allow space for negotiation. His bubble of wealth and power had finally been punctured.Trump has often proved impervious to the kind of scandals or gaffes that would damage another politician, but his casual attitude even as the markets were on fire suggested a man uniquely detached from the anxieties of ordinary people, including his own voters.Larry Sabato, the director of the Center for Politics at the University of Virginia, said: “Let them eat cake: Marie Antoinette kind of fits. He won his own golf tournament at his own club. How about that? Bill Clinton also cheated at golf a lot and people would let him win because he was president. It’s just the way they are. Rules don’t apply.”This is not the first time that Trump, accused by critics of demanding absolute loyalty from courtiers, pursuing vengeance against perceived enemies and displaying scorn for his subjects, has been likened to a monarch.Speaking at the Politics and Prose bookshop in Washington last weekend, Maureen Dowd, a New York Times columnist and author of the book Notorious, compared the president to William Shakespeare’s Richard III.“Richard III comes up to the edge of the stage and wraps the audience into the bad thing he’s about to do,” Dowd told the Guardian during a question and answer session. “He tells them and he uses humour so that he’s supposed to be the villain, but the humour kind of counters it so you don’t think of him as badly.“Trump does the same thing … He has this kind of wacky side so then when he does the very authoritarian stuff you get deflected by the crazy side he has. I think the SNL [Saturday Night Live] mimic captures this where he’s sort of being funny, so then when he turns authoritarian, you’re thinking: wait, is he really doing what I think he’s doing?” More

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      In the face of Trump’s mayhem, Europe is the direction to which the UK must turn – and Keir Starmer knows it | Tom Baldwin

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      Keir Starmer was back at the Emirates Stadium on Tuesday to watch Arsenal’s 3-0 win over Real Madrid, a result that far exceeded expectations of his team’s chances in Europe. And, over the next few days, I wouldn’t be surprised if he tries to snatch a short Easter break in the warmth and sunshine of that same continent.Football and family holidays offer him some much needed relief from the grim reality of a faltering economy, towering public debt and terrifying global insecurity, which are all being made worse on a daily – sometimes hourly – basis by Britain’s closest ally of the previous 80 years.But that mayhem being caused by Donald Trump’s extended stag party in the White House means that Europe is much more than an occasional distraction for the prime minister. Slowly, if not always surely, it is once again becoming the direction towards which Britain must turn.This is not exactly where Starmer thought he would to be. For all his talk of an EU “reset”, the plan had been to “make Brexit work” within self-imposed “red lines” ruling out joining the single market or a customs union, blocking freedom of movement and appearing to allow only some minor mitigation of the damage done by Boris Johnson’s deal.In the immediate aftermath of Trump’s inauguration, new horizons on the other side of the Atlantic briefly seemed rather more exciting. There was genuine interest in, if not admiration for, this insurgent disruptor of the US’s stuffy political establishment. There was also a prospect that Britain might gain advantage over the EU from a repurposed special relationship being gilded by inviting Trump to hang out with the royals.And, even now, securing some sort of US trade deal that might save thousands of British jobs, or the promise of the minimal military cooperation needed to maintain European security, are still prizes worth having. It’s silly to blame Starmer for trying to win them, or to expect him to strike poses against Trump for the sake of cheap headlines and not much else.What’s changed, however, is a recognition around the cabinet table that the US president is much more of a problem than part of any solution. Gone are the days when a government source would brief it had more in common with Maga Republicans than US Democrats, or Rachel Reeves could tell Britain to learn from Trump’s optimism and “positivity”. Nowadays ministers say it has become almost futile to anticipate his next move because “he’s only ever reliable in his unpredictability”. Whatever happens next, this is a US administration that can’t be regarded as a stable ally either on the economy or security.Those who think Starmer, in his repeated calls for “cool and calm heads”, is still being excessively polite have perhaps been too busy complaining to have noticed a subtle shift in his language. For instance, when the Times last week ran the headline: “Why Keir Starmer hopes Trump’s tariffs could be good news for the UK”, the rebuttal came from the prime minister himself, with an article in the same newspaper the next day, which began by stating: “Nobody is pretending that tariffs are good news.”View image in fullscreenOne well-placed Downing Street adviser now describes how Trump “wants to destroy the multilateral institutions” that Starmer believes are essential “to span divides and bring the world together”. Another mentions polling evidence that apparently shows even if a big US trade deal can be done, British voters would still prefer closer links to the EU because they don’t trust Trump to deliver.Certainly, efforts to reset those relations have been pursued with more vigour over recent weeks. These began with Starmer’s “coalition of the willing” to replace the military support for Ukraine that Trump appears so intent on taking away, and will continue ahead of the EU-UK summit on 19 May. More focus on shared interests and values and less on “red lines” should mean a security and defence pact is agreed. Also within reach is a so-called veterinary deal to make agricultural trade easier, while legislation is already going through parliament that would enable UK ministers to align with EU regulations in other areas to the benefit of small exporters.There may yet be a workable youth mobility scheme for those aged 18-30, which some EU members, notably Germany, regard as a test of whether this government is really different to the last one. Although the proposal was hastily ruled out during last year’s general election, the Treasury is increasingly sympathetic to it because, by some estimates, it could do more for growth than planning reform and housebuilding combined. At the same time, new cooperation on North Sea windfarms and negotiations to align the UK and EU carbon trading scheme could increase investment, improve energy security and generate billions of pounds in additional revenue.But there are still limits to this revived EU-UK relationship and it will never go far enough or fast enough to satisfy the many Labour supporters convinced that Brexit was a catastrophic mistake. Those close to Starmer emphasise he’s less interested in “relitigating old arguments from the previous decade” than in finding new ways to pursue the national interest now that “the era of globalisation is over”. Downing Street believes that part of the appeal of both Trump and our homegrown strain of rightwing populism lies in how institutions like the EU became too detached from the people they were meant to serve. In short, they’re determined not to be seen defending the status quo.The UK wants any security pact to include data-sharing on illegal immigration, which the EU, for its own arcane reasons, may be unwilling to accept. The government will insist that any defence deal must also allow British industry to bid for contracts from a massive new European rearmament fund. That agreement, in turn, could yet be held up by rows with a French government demanding concessions over fish quotas. The hope is that our political leaders prove big enough to hurdle such obstacles. But economic nationalism is not confined to the White House and making meaningful progress in Europe has never been easy.Though Arsenal’s Champions League victory will have been the high point of Starmer’s week, he may reflect that his team haven’t yet reached the semi-final stage of the competition. In politics, as in football, there is much to play for in Europe, and a long way to go.

      Tom Baldwin is the author of Keir Starmer: The Biography More

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      I disagree with Mahmoud Khalil’s politics. But the deportation decision is abhorrent | Jo-Ann Mort

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      When the federal immigration judge Jamee Comans ruled in favor of allowing the government to deport Mahmoud Khalil, a Columbia University student in the US on a legal visa, her decision was based on “foreign policy concerns” presented by US secretary of state Marco Rubio. It was so shocking that I had to reread the news report several times before I could believe it.Rubio’s claim is based on Khalil’s leadership role in the anti-Israel protests at Columbia University. I didn’t agree with Khalil’s politics when he led the protests and I don’t agree today with his politics, nor even his actions during the protests. But I’m unwavering in supporting his right to his views, and his right to shout them in what, until Trump took the reins, was our free American nation.As an immigration judge, Judge Comans couldn’t make a constitutional determination. Immigration judges are not actually part of the judicial branch of government; they are part of the executive branch and, as such, don’t rule on constitutional questions but only on issues of immigration law. Therefore, it’s likely – and hopeful – that on further appeal, Khalil’s constitutional right to free speech could be upheld, though less likely than it would have been before the weakening of our constitutional fiber under President Trump.Since Rubio recently argued that non-citizens, even if here legally, can be deported if they undermine US foreign policy aims, the administration has taken further intimidating action. Today, visa-holders and US visitors are finding their social media being examined and their phones taken at the border for searches.From the day he entered office, Rubio has shown himself to be a weak link in preserving the national interest, justifying a range of abuses under the guise of US foreign policy. He has completely crouched under the heavy arm of President Trump, foregoing many of his previously long-held beliefs in everything from support for Ukraine to the use of soft aid via USAID, and generally in promoting American values. A child of parents who came to the United States as emigres from Fidel Castro’s Cuba, he once embraced democracy with as much bravado as he is now displaying in helping to sink it.To claim that one of the reasons for a deportation like this is to stop antisemitism, as the state department says, is really a ruse to garner support for the widening attack on campus free speech and universities. It is certainly not making Jewish students safer. On the contrary, dividing and conquering to strip higher education and free speech of their very essences endangers every group that has relied on the first amendment’s guarantee.It also strikes me as laughable that the secretary is claiming that Khalil’s presence in America is harming US foreign policy aims. After all, as I wrote here just last week, what in the world is US foreign policy, especially regarding the Middle East? There is no diplomacy and there are no stated foreign policy goals, unless you consider Trump’s dream of building hotel-casinos on Gaza’s beaches to be formal American policy.As the Israeli PM Benjamin Netanyahu himself discovered when he traveled to the White House this week, Trump had nothing to offer him. Netanyahu came begging for tariff relief and a green light for continuing his war against Hamas, as well as an even brighter green light to bomb Iran. He was shocked when Trump announced during their joint press availability that he would send his adviser Steve Witkoff to discuss a peace agreement between the US and Iran. Netanyahu went home empty-handed on tariff relief, and stunned at Trump’s sudden dive into talks with Iran.But of course, neither the Gaza beach hotels nor, especially, the deportations of visa-holders are about foreign policy. Everything is about domestic policy; the actual purpose is to pit various groups of Americans one against the other. The memo circulated by Rubio argues that “while Khalil’s activities were otherwise lawful” his presence in the US would harm efforts by those who are implementing “US policy to combat antisemitism around the world and in the United States, in addition to efforts to protect Jewish students from harassment and violence in the United States”.Rubio went on to claim that “condoning antisemitic conduct and disruptive protests in the United States would severely undermine that significant foreign policy objective”.What does this even mean? On the same day that Khalil’s freedom was being constricted, Witkoff, the White House adviser, had a four-hour meeting with Vladimir Putin, one of the leading purveyors of antisemitism in the world today. What is this administration’s plan for fighting antisemitism on a global scale? There is none, of course.Domestically, the president’s plan appears to be not only to divide and conquer, but also to weaken and even cripple institutions of higher education, the arts, and other critical underpinnings of democracy that keep American Jews – and all minorities – safe. Worse still, it is to simultaneously try to make us, American Jews, complicit in his evil dealings.The ripple effect of this ruling and the detention of other students, like Rümeysa Öztürk from Tufts University, is propelling many of us in the American Jewish community to act against the Trump administration. A new amicus brief filed by a coalition of 27 Jewish organizations, supported with pro-bono work by the law firm of Davis Wright Tremaine (a firm that deserves a gold star for upholding our constitution, rather than making side deals with the president to crush it), says this: “Without presuming to speak for all of Jewish America – a diverse community that holds a multitude of viewpoints – amici are compelled to file this brief because the arrest, detention, and potential deportation of Rümeysa Öztürk for her protected speech violate the most basic constitutional rights.”Freedom of expression, particularly on matters of public concern, the brief makes clear, is a cornerstone of American democracy and extends to academic settings and campus discourse. I’m proud to say that my synagogue, Congregation Beth Elohim, in Brooklyn, is a signatory of the brief, along with an organization, New Jewish Narratives, where I serve on the board.Tonight begins the Jewish festival of Passover, a festival of liberation and freedom. It marks a journey that the ancient Jews who were slaves in Egypt took from servitude to freedom. It is a time when Jews around the world proclaim, “Let my people go,” as we see our own fight for freedom in the eyes of those who remain unfree. For me, the freeing of the Israeli hostages is central to the Passover message, as is the freedom of both the Palestinian people and the Israelis to live in a state where they are free from fear and have a vibrant democracy.It’s a vibrant democracy that I wish, too, for the United States. And, at my Passover table, I will pledge to fight to maintain and strengthen the bonds of all peoples here in the US toward collective action that defends and maintains our democracy. If Khalil’s right to remain in the US is not upheld, our nation will be weaker for it, and all our rights will be further endangered.

      Jo-Ann Mort, who writes and reports frequently about Israel/Palestine is also author of the forthcoming book of poetry, A Precise Chaos. Follow her @jo-ann.bsky.social More

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      Immigration agents turned away after trying to enter LA elementary schools

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      Immigration officials attempted to enter two Los Angeles elementary schools this week, but were turned away by school administrators. The incident appears to be the Trump administration’s first attempt to enter the city’s public schools since amending regulations to allow immigration agents to enter “sensitive areas” such as schools.At a Thursday press conference, the Los Angeles unified school district superintendent, Alberto Carvalho, confirmed that agents from the Department of Homeland Security were seeking five students in first through sixth grades.Officials attempted to enter two south Los Angeles schools, Lillian Street elementary and Russell elementary, but were turned away after the schools’ principals asked to see their identification. Los Angeles Unified is a sanctuary district and does not cooperate with federal immigration agencies.The news comes as the Trump administration has escalated its attacks against international students and ramped up efforts to deport undocumented and documented immigrants alike. In January, homeland security rescinded Biden administration guidelines preventing its agents from entering “sensitive areas” including schools and churches.“Criminals will no longer be able to hide in America’s schools and churches to avoid arrest,” former acting homeland security secretary Benjamine Huffman said in a statement announcing the new policy. “The Trump administration will not tie the hands of our brave law enforcement, and instead trusts them to use common sense.”In response, LA Unified began distributing “Know Your Rights” cards to students and the school police department issued a statement saying it would not “assist or engage in immigration compliance checks, immigration enforcement activity, or ICE-related task force operations”.“I’m still mystified as to how a first-, second-, third-, fourth- or sixth-grader would pose any type of risk to the national security of our nation,” Carvalho said. “Schools are places for learning. Schools are places for understanding. Schools are places for instruction. Schools are not places of fear.”The superintendent told reporters that the immigration agents who arrived at the Los Angeles elementary schools said they wanted to see the “students to determine their well-being” as unaccompanied minors, and that they had received authorization to speak with students from their caretakers. He added that the district later spoke with the students’ caretakers and learned that was untrue.“DHS is leading efforts to conduct welfare checks on these children to ensure that they are safe and not being exploited, abused, and sex trafficked,” the homeland security department said in a statement to Fox 11 Los Angeles.“Unlike the previous administration, President Trump and Secretary Noem take the responsibility to protect children seriously and will continue to work with federal law enforcement to reunite children with their families. In less than 70 days, Secretary Noem and Secretary Kennedy have already reunited nearly 5,000 unaccompanied children with a relative or safe guardian.”Carvalho contested that, and said as an educator who entered the United States without authorization at the age of 17 himself, he felt “beyond my professional responsibility, a moral responsibility to protect these students”.The incident has drawn attention from congressional lawmakers, including Pasadena Democrat Judy Chu.“I’m absolutely incensed that DHS agents would try to enter elementary schools this week, and I’m so grateful to the brave LAUSD administrators who denied them entry. These are children who should be learning to read and write, not cowering in fear of being ripped away from their homes,” she said.“I’m concerned parents may keep their children home rather than risk sending them to school. As Angelenos, we must lock arms together in moments like these to protect kids from deportation squads and protect schools from Trump’s campaign of terror.” More

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      Trump insists tariff war is ‘doing really well’ as recession fears mount

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      Donald Trump insisted his trade war with much of the world was “doing really well” despite mounting fears of recession and as Beijing hit back and again hiked tariffs on US exports to China.As the US president said his aggressive tariffs strategy was “moving along quickly”, a closely watched economic survey revealed that US consumer expectations for price growth had soared to a four-decade high.The White House maintains that the US economy is on the verge of a “golden age”, however, and that dozens of countries – now facing a US tariff of 10% after Trump shelved plans to impose higher rates until July – are scrambling to make deals.“The phones have been ringing off the hook to make deals,” the press secretary, Karoline Leavitt, told reporters on Friday.Beijing raised Chinese tariffs on US products to 125% on Friday – the latest salvo of its escalating trade dispute with Washington – and accused Trump of “unilateral bullying and coercion”.“Even if the US continues to impose even higher tariffs, it would no longer have any economic significance, and would go down as a joke in the history of world economics,” the Chinese finance ministry said.Few investors were laughing. US government bonds – typically seen as one of the world’s safest financial assets – continued to be sold off, and were on course for their biggest weekly loss since 2019. The dollar also fell against a basket of currencies, and was down against the euro and the pound.Leading stock indices paused for breath on Friday after days of torrid trading. The FTSE 100 rose 0.6% in London. The S&P 500 increased 1.8% and the Dow Jones industrial average gained 1.6% in New York.The S&P 500 finished an extraordinarily volatile week for markets up 5.7%, its biggest weekly gain since November 2023.“We are doing really well on our TARIFF POLICY,” Trump wrote on his Truth Social platform. “Very exciting for America, and the World!!! It is moving along quickly. DJT”Some of Wall Street’s most influential figures were unconvinced. “I think we’re very close, if not in, a recession now,” Larry Fink, CEO of the investment giant BlackRock, told CNBC. Far from providing certainty, the 90-day pause on higher US tariffs on much of the world “means longer, more elevated uncertainty”, he added.Jamie Dimon, CEO of JPMorgan Chase, the US’s largest bank, said the world’s largest economy was facing “considerable turbulence” as a key measure of consumer confidence tumbled to its lowest level since the Covid-19 pandemic – and the second-lowest level on record.US consumer sentiment has dropped 11% to 50.8 this month, ahead the pause announced by Trump earlier this week, according to a regularly survey compiled by the University of Michigan.Expectations for inflation meanwhile surged, with respondents indicating they are bracing for prices to rise by 6.7% over the coming year – the survey’s highest year-ahead inflation expectation reading since 1981.“There is great optimism in this economy,” Leavitt claimed at the White House briefing when asked about the survey. “Trust in President Trump. He knows what he’s doing. This is a proven economic formula.”Trump won back the White House last November by pledging to rapidly bring down prices – something he has claimed, in recent weeks, is already happening. US inflation climbed at an annual rate of 2.4% last month, according to official data.skip past newsletter promotionafter newsletter promotion“Consumers have spiralled from anxious to petrified,” observed Samuel Tombs, chief US economist at Pantheon Macroeconomics. He added, however, that a bipartisan divide – with Democrats growing more pessimistic, while Republicans become more upbeat – suggests that people are allowing their political views to cloud their economic confidence.The US’s top markets watchdog is facing demands from senior Democrats to launch an investigation into alleged insider trading and market manipulation after Trump declared on social media that it was “A GREAT TIME TO BUY!!!” hours before announcing Wednesday’s climbdown on tariffs.Days of erratic policymaking constructed a rollercoaster week for markets, with the S&P 500 dropping 12% in just four sessions, before surging back almost 10% in a single day after the administration pulled back from imposing higher tariffs on most countries, except China, which is facing a 145% tariff on exports to the US.In a letter to the US Securities and Exchange Commission (SEC), Senate Democrats including Elizabeth Warren and Chuck Schumer wrote: “It is unconscionable that as American families are concerned about their financial security during this economic crisis entirely manufactured by the President, insiders may have actively profited from the market volatility and potentially perpetrated financial fraud on the American public.”Tesla meanwhile stopped taking orders in China for two models it previously imported from the US, as companies scramble to adapt to prohibitive tariffs imposed in Trump’s trade war.The manufacturer, run by Trump’s close ally Elon Musk, removed “order now” buttons on its Chinese website for its Model S saloon and Model X sports utility vehicle.Tesla did not give any indication of why it had made the changes but it came after the rapid escalation of the trade war between the US and China.The border taxes make the goods trade between the two countries prohibitively expensive and mean cars imported from the US are now much less attractive in China than those produced locally.In the UK, economists warned that stronger than expected growth of 0.5% in February is likely to prove short lived as the impact of Trump’s trade war is felt throughout the global economy. More

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      US judge rules Mahmoud Khalil can be deported for his views

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      Mahmoud Khalil, the Columbia University graduate and Palestinian organizer, is eligible to be deported from the United States, an immigration judge ruled on Friday during a contentious hearing at a remote court in central Louisiana.The decision sides with the Trump administration’s claim that a short memo written by the secretary of state, Marco Rubio, which stated Khalil’s “current or expected beliefs, statements or associations” were counter to foreign policy interests, is sufficient evidence to remove a lawful permanent resident from the United States. The undated memo, the main piece of evidence submitted by the government, contained no allegations of criminal conduct.During a tense hearing on Friday afternoon, Khalil’s attorneys made an array of unsuccessful arguments attempting to both delay a ruling on his eligibility for removal and to terminate proceedings entirely. They argued the broad allegations contained in Rubio’s memo gave them a right to directly cross-examine him.Khalil held prayer beads as three attorneys for the Department of Homeland Security presented arguments for his removal.Judge Jamee Comans ruled that Rubio’s determination was “presumptive and sufficient evidence” and that she had no power to rule on concerns over free speech.“There is no indication that Congress contemplated an immigration judge or even the attorney general overruling the secretary of state on matters of foreign policy,” Comans said.A supporter was in tears sat on the crowded public benches as the ruling was delivered.Following the ruling, Khalil, who had remained silent throughout proceedings, requested permission to speak before the court.Addressing the judge directly, he said: “I would like to quote what you said last time, that ‘there’s nothing that’s more important to this court than due process rights and fundamental fairness.’”He continued: “Clearly what we witnessed today, neither of these principles were present today or in this whole process.“This is exactly why the Trump administration has sent me to this court, 1,000 miles away from my family. I just hope that the urgency that you deemed fit for me is afforded to the hundreds of others who have been here without hearing for months.”Khalil, 30, helped lead pro-Palestinian protests at Columbia last year. He was arrested by Immigration and Customs Enforcement (Ice) officers in New York on 8 March and transferred to a detention facility in Jena, Louisiana, where he has been detained for over a month. His case was the first in a string of Ice arrests instigated by the Trump administration targeting pro-Palestinian students and scholars present in the US on visas or green cards.The ruling means that Khalil’s removal proceedings will continue to move forward in Jena, while a separate case being heard in federal court in New Jersey examines the legality of his detention and questions surrounding the constitutionality of the government’s claims it can deport people for first amendment-protected speech if they are deemed adverse to US foreign policy.Khalil’s legal team is asking the New Jersey judge to release him on bail so that he can reunite with his wife, who is due to give birth to their first child this month.His lawyers slammed the decision, which they said appeared to be prewritten. “Today, we saw our worst fears play out: Mahmoud was subject to a charade of due process, a flagrant violation of his right to a fair hearing, and a weaponization of immigration law to suppress dissent. This is not over, and our fight continues,” said Marc van der Hout, Khalil’s immigration lawyer.“If Mahmoud can be targeted in this way, simply for speaking out for Palestinians and exercising his constitutionally protected right to free speech, this can happen to anyone over any issue the Trump administration dislikes. We will continue working tirelessly until Mahmoud is free and rightfully returned home to his family and community.”During a short prayer vigil held outside the detention centre on Friday afternoon, a group of interfaith clergy read messages of support. A short statement from Khalil’s wife, Noor Abdalla, who is due to give birth this month, was also delivered in front of reporters.“Today’s decision feels like a devastating blow to our family. No person should be deemed ‘removable’ from their home for speaking out against the killing of Palestinian families, doctors, and journalists,” the statement read.It continued: “In less than a month, Mahmoud and I will welcome our first child. Until we are reunited, I will not stop advocating for my husband’s safe return home.”The New Jersey judge has ordered the government not to remove Khalil as his case plays out in federal court. A hearing in that case is set for later on Friday. More

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      in US Politics

      Trump was playing chicken with tariffs. Then he chickened out | Steven Greenhouse

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      By imposing punitively high tariffs, Donald Trump was playing a high-stakes game of chicken with the US’s trading partners – but it was Trump who chickened out and suspended his tariffs just hours after they took effect. The president couldn’t ignore the worldwide economic havoc that he had caused singled-handedly – stock markets were plunging, business executives were panicking and consumers were seething.Eager to persuade manufacturers to build new plants in the US, Trump said on Monday that many of his tariffs would be permanent. But for Trump, permanent evidently meant two days.Once again, Trump showed that his second term is one of fiat, flub and flip-flop, of bluster and blunder, of shooting first and aiming later. It’s also a mix of cutting, gutting and cruelty.And foolery. Trump’s tariffs are worse than, as the Wall Street Journal put it, the “dumbest trade war in history”: they are the dumbest economic policy that any US president has ever adopted. His tariffs quickly caused vast and totally unnecessary damage to stock markets, industries and diplomatic relations across the globe. Before Trump unexpectedly suspended the tariffs, US stock markets had lost more than $10tn in value, and stock markets overseas plummeted, too. Millions of retirees had seen their 401(k)s plunge in value, consumers were facing substantially higher prices and many workers were already losing their jobs as Trump’s tariffs sent shockwaves through the global economy.Trump’s embarrassing climbdown on tariffs was one of the rare times he bowed to common sense. If only he would do the same when it comes to his dangerously myopic cuts to scientific research, environmental protection and foreign aid.Trump has not climbed down, however, in his showdown with China. In a fit of pique over China’s retaliatory tariffs, Trump has imposed stratospheric 145% tariffs on China. Attention Walmart shoppers: that is going to more than double the price of many things you buy.When it came to tariffs, Trump made some basic political fumbles. Not only did he go golfing and speak at a million-dollar-a-head fundraiser as this economic disaster unfolded, but he failed to give a coherent explanation for his screw-everyone-else tariffs. Trump and his team pointed to a potpourri of often-conflicting goals: to erase trade deficits, to collect trillions of dollars for the treasury, to bring back manufacturing jobs, to give Trump negotiating leverage to crack down on fentanyl and immigration and reduce other countries’ tariffs.Let’s not delude ourselves. There are two main reasons for Trump’s tariffs: first, to satisfy his never-ending thirst for vengeance against those he feels have wronged him (which seems to mean every country in the world except Russia) and second, to fulfill his desire to wield a club over everyone and everything. By using staggeringly high tariffs as a weapon, Trump has been acting like a mob enforcer, telling every business in town: I’m going to clobber you with my baseball bat unless you do what I want.There’s another reason for Trump’s tariffs: his ignorance about how the world’s economy works. Trump’s “liberation day” speech on tariffs gave the looney, but unmistakable, impression that he believes that Vietnam, for instance, is looting and pillaging the US by selling more sneakers and other goods to the US than the US sells to Vietnam. Trump thinks this even though millions of Americans are delighted to buy well-made sneakers from Vietnam (which would cost consumers far more if they were made in the US).With his grievance-driven, zero-sum worldview, Trump no doubt believes that other countries are unfairly taking advantage of the US whenever we trade with them – and he wants to get even.Trump thinks that trade deficits are evil. If Trump had taken a class with Robert Solow, a Nobel Prize-winning economist at MIT, he might have heard Solow’s wisdom about why there’s no big worry about bilateral trade deficits: “I have a chronic deficit with my barber, who doesn’t buy a darned thing from me.”That Trump got to impose his calamitous tariffs at 12.01am on Wednesday reflects the dismal quality of his cabinet and advisers. Too many are lackeys who automatically cheer whatever he does, while some others, like the treasury secretary, Scott Bessent, no doubt realized that his tariffs were dumb and disastrous, but they’re too cowardly to tell the Tariff King. The tariffs would inevitably increase inflation and probably push the US into recession. Even though Republicans have vowed never to raise taxes, Trump’s tariffs are unarguably a tax, a regressive tax and the largest tax increase in 60 years. Trump’s tariffs were bound to destroy smoothly running supply chains and hurt untold numbers of US companies. They were also a disaster for relations with our allies. They were already triggering massive retaliation.If Trump had some smart, principled advisers, they might explain to him that many obstacles might prevent his tariffs from achieving their goals. With the nation’s low 4% unemployment rate, it will be hard to find workers to do the manufacturing jobs that Trump wants to bring back, especially when he’s rounding up and expelling many immigrant workers. Moreover, US corporations have largely lost the technological knowhow to compete in various industries and that complicates hopes to bring back far more factories.Then there’s another big problem – the chaotic Trump is the worst possible president to persuade companies to build factories in the US to produce goods they now obtain from abroad. King Donald the Capricious does not exactly exude the air of stability that executives insist on before they decide to make big investment decisions, like building new factories.Trump trumpeted his tariffs in part to show strength, but he ended up in an embarrassing retreat (he did maintain a 10% tariff on many countries). Trump is eager to get China to heed his wishes, but China, the world’s leading manufacturing country, can now see that Trump will back down when the heat is too great.China doesn’t have clean hands on trade. It improperly subsidizes many industries to help them outcompete manufacturers in the US and elsewhere. China also has ambitions to vastly increase its manufacturing capacity – a strategy that could kill off important industries in the US, Canada, Europe, Japan and other countries. If Trump were smart and strategic, he – instead of alienating those countries with his tariffs – would have formed an alliance with those countries to pressure China. But now those countries are too angry at the Trump to do that.Trump, never one to admit defeat, insists that his climbdown was a victory, that the mess he made was marvelous strategy. He says many countries are eager to make deals with him. “I’m telling you, these countries are calling us up, kissing my ass,” he said on Wednesday. “They are dying to make a deal.”Our allies are no doubt furious with Trump. Not only were they already angry that he stabbed Ukraine in the back and sidled up to Putin, but they’re unhappy that his tariff foolishness violated numerous international agreements and sought to blow up a smoothly running trade system. And then Trump ridicules them by saying they were rushing to kiss his behind.I hardly ever agree with Elon Musk, but he was right that Trump’s tariffs were the work of morons who were “dumber than a sack of bricks”.

      Steven Greenhouse is a journalist and author focusing on labor and the workplace, as well as economic and legal issues. More