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    Trump issues ‘last warning’ to Hamas to accept Gaza ceasefire deal

    Donald Trump on Sunday issued what he called his “last warning” to Hamas, urging the Palestinian militant group to accept a deal to release hostages from Gaza.“The Israelis have accepted my Terms. It is time for Hamas to accept as well,” Trump said in a post on his Truth Social platform. “I have warned Hamas about the consequences of not accepting. This is my last warning, there will not be another one!”Hamas said in a later statement that it received some ideas from the US side through mediators to reach a ceasefire deal in Gaza.The group said it was discussing with mediators ways to develop those ideas, without giving specifics.Hamas also reiterated its readiness for negotiations to release all hostages in exchange for a “clear announcement of an end to the war” and the complete withdrawal of Israeli forces from the enclave.“I think we’re going to have a deal on Gaza very soon,” Trump told reporters as he traveled back to Washington from New York, without offering any details. He added that he thought all the hostages would be returned, dead or alive. “I think we’re going to get them all.”On Saturday, Israel’s N12 News reported that Trump has put forth a new ceasefire proposal to Hamas.Under the deal, Hamas would free all the remaining 48 hostages on the first day of the truce in exchange for thousands of Palestinian prisoners jailed in Israel and negotiate an end to the war during a ceasefire in the enclave, according to N12.An Israeli official said Israel was “seriously considering” Trump’s proposal but did not elaborate on its details. More

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    Ex-congressman John Burton, influential California Democrat, dies at 92

    The former US congressman John Burton, a salty-tongued and unabashedly liberal San Francisco Democrat who stood up for the working class and nurtured countless political careers, including that of Nancy Pelosi, died Sunday. He was 92.Burton died in San Francisco of natural causes, his family said in a statement.Tributes poured in from California’s top politicians, who recalled Burton as a fierce and tireless advocate for laborers, foster children and the environment. Over the years, Burton mentored Pelosi, former US senator Barbara Boxer, current US senator Alex Padilla and countless other California officials.“There was no greater champion for the poor, the bullied, the disabled, and forgotten Californians than John Burton. He was a towering figure – a legendary force whose decades of service shaped our state and our politics for the better,” said Governor Gavin Newsom, a former mayor of San Francisco, in a statement.Another former San Francisco mayor, Willie Brown, said that death had managed to separate him from a dear friend who was by his side for decades – as college students where they first met, as fellow newbies in the state Assembly and as influential members of California’s Democratic political machine.“John Burton may have been the best person with whom I served as a member of the legislature,” said Brown.Burton believed that government was at its best when it served those who needed it the most, and he never backed down from a fight, said state Democratic party chair Rusty Hicks.“The greatest way to honor John Burton is to keep fighting with the same grit, tenacity, and heart that defined his life,” Hicks said in a statement.“He cared a lot,” said Burton’s daughter, Kimiko Burton. “He always instilled in me that we fight for the underdog. There are literally millions of people whose lives he helped over the years who have no idea who he is.”John Lowell Burton was born on 15 December 1932, in Cincinnati, Ohio, and grew up in San Francisco with plans to teach history and coach high school basketball.But he followed his older brother, Phillip Burton, into politics and in 1964 was elected to the state assembly. A decade later, he moved on to the US House of Representatives, where he pushed legislation protecting wilderness areas in the Golden Gate national recreation area and condemning apartheid in South Africa.Burton stepped down in 1982 to address a cocaine addiction, but he didn’t stay gone for long.In 1988, he returned to the California assembly and in 1996 he won a state Senate seat, rising to become the chamber’s president. He retired from elected politics in 2004 – only to head up the California Democratic party from 2009 to 2017.After retiring, he founded a nonprofit dedicated to foster youth. A remembrance posted Sunday by John Burton Advocates for Youth quoted his exasperation with the lack of resources available for foster youth who aged out of the foster care system.“Emancipated from what? And into what?” he asked. “Into not being able to have a roof over their heads? Into being frozen out of a chance at higher education? Into unemployment? Into a life on the welfare rolls? Into homelessness? Into jail?”The organization has advocated successfully for more than 50 legislative reforms, including financial aid for college and extending foster care for some from age 18 to 21.Barbara Lee, a former US congresswoman and current Oakland mayor, said that in spite of his health challenges, Burton was determined to attend her public inauguration in June, and he did.“His life’s work reminds us that authentic leadership means having the courage to speak truth to power and never forgetting where you came from,” she said.In addition to his daughter, Kimiko, Burton is survived by two grandchildren, Juan and Mikala.Plans for a celebration of life are pending. The family requests that in lieu of flowers, donations be made in his memory to the John Burton Advocates for Youth. More

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    Florida plan to drop school vaccine mandates won’t take effect for 90 days

    Florida’s plan to drop school vaccine mandates likely won’t take effect for 90 days and would include only chickenpox and a few other illnesses unless lawmakers decide to extend it to other diseases, like polio and measles, the health department said on Sunday.The department responded to a request for details, four days after Florida’s surgeon general, Dr Joseph Ladapo, said the state would become the first to make vaccinations voluntary and let families decide whether to inoculate their children.It’s a retreat from decades of public policy and research that has shown vaccines to be safe and the most effective way to stop the spread of communicable diseases, especially among children. Despite that evidence, Robert F Kennedy Jr, the health secretary, has expressed deep skepticism about vaccines.Florida’s plan would lift mandates on school vaccines for hepatitis B, chickenpox, Hib influenza and pneumococcal diseases, such as meningitis, the health department said.“The department initiated the rule change on September 3 2025, and anticipates the rule change will not be effective for approximately 90 days,” the state told the Associated Press in an email. The public school year in Florida started in August.All other vaccinations required under Florida law to attend school “remain in place, unless updated through legislation” including vaccines for measles, polio, diphtheria, pertussis, mumps and tetanus, the department said.Lawmakers don’t meet again until January 2026, although committee meetings begin in October.Ladapo, appearing Sunday on CNN, repeated his message of free choice for childhood vaccines.“If you want them, God bless, you can have as many as you want,” he said. “And if you don’t want them, parents should have the ability and the power to decide what goes into their children’s bodies. It’s that simple.”Earlier this week, Ladapo garnered criticism after he compared vaccine mandates to “slavery”. Speaking at a press conference alongside Florida’s Republican governor Ron DeSantis who has also expressed deep vaccine skepticism, Ladapo said of the vaccine requirements: “Every last one of them is wrong and drips with disdain and slavery.”His comments drew outrage from lawmakers and health experts alike, with Democratic Florida state representative Anna Eskamani saying: “Ending vaccine mandates is reckless and dangerous. It will drive down immunization rates and open the door to outbreaks of preventable diseases, putting children, seniors and vulnerable Floridians at risk.”Meanwhile, John Moore, a professor of microbiology and immunology at Weill Cornell Medicine in New York, said: “Florida’s undertakers will now need to plan for the future by increasing their stocks of small coffins,” adding that all the preventable vaccines would increase in schools.Ladapo had previously altered data in a 2022 study by the state’s health department to exaggerate the risks of cardiac death for young men. The study had initially disclaimed any significant risk associated with the vaccines for young men. However, Ladapo replaced the language to claim that men between 18 and 39 years old are at high risk of heart illness from two Covid vaccines that use mRNA technology.Ladapo had also falsely claimed in 2023 that booster shots were not tested on humans and had “red flags.” The same year, the US Food and Drug Administration, as well as the Centers for Disease Control and Prevention, called Ladapo’s vaccine stances as harmful to the public.“It is the job of public health officials around the country to protect the lives of the populations they serve, particularly the vulnerable,” the federal letter said, adding: “Fueling vaccine hesitancy undermines this effort.”Florida currently has a religious exemption for vaccine requirements. Vaccines have saved at least 154 million lives globally over the past 50 years, the World Health Organization reported in 2024. The majority of those were infants and children.Dr Rana Alissa, chair of the Florida chapter of the American Academy of Pediatrics, said making vaccines voluntary puts students and school staff at risk.This is the worst year for measles in the US in more than three decades, with more than 1,400 cases confirmed nationwide, most of them in Texas, and three deaths.Whooping cough has killed at least two babies in Louisiana and a five-year-old in Washington state since winter, as it too spreads rapidly. There have been more than 19,000 cases as of 23 August, nearly 2,000 more than this time last year, according to preliminary CDC data.Maya Yang contributed reporting More

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    US treasury secretary denies Trump tariffs are tax on Americans

    US treasury secretary Scott Bessent has refused to acknowledge that the sweeping trade tariffs imposed by Donald Trump around the world are taxes on Americans.In a new interview on Sunday with NBC host Kristen Welker, Bessent, a former billionaire hedge fund manager, dismissed concerns from major American companies including John Deere, Nike and Black and Decker who have all said that Trump’s tariffs policy will cost them billions of dollars annually.Addressing Welker, Bessent said: “You’re taking these from earnings calls, and on earnings calls, they have to give the draconian scenario. There aren’t companies coming out and saying, ‘Oh, because of the tariffs, we’re doing this.’”He went on to add: “If things are so bad, why was the GDP 3.3%? Why is the stock market at a new high? Because, you know, with President Trump, we care both about big companies and small companies.”As concerns continue to grow over American companies trying to pass on the cost of US tariffs on to everyday Americans, Welker asked: “Do you acknowledge that these tariffs are attacks on American consumers?” To which Bessent replied: “No, I don’t.”Bessent’s latest interview follows a ruling by a federal appeals court which found that Trump had overstepped his presidential authority when he imposed sweeping tariffs on dozens of countries earlier this year that sent shockwaves across global markets.The tariffs established a 10% baseline for nearly all of the US’s trading partners. Trump also imposed so-called “reciprocal” tariffs imposed on countries that he accused of unfairly treating the US in trade. Lesotho, a south African nation of 2.3 million people faced a 50% tariff, while Trump also imposed a 10% tariff on a group of uninhabited islands home to penguins near Antarctica.In response to the federal appeals court’s decision, the Trump administration has recently asked the US supreme court to overturn the ruling.Speaking on whether the Trump administration would be prepared to offer rebates if the supreme court rules against the administration, Bessent said: “We would have to give a refund on about half the tariffs which would be terrible for the treasury… There’s no ‘be prepared.’ If the court says it, we’d have to do it.”Nevertheless, Bessent remained confident that the conservative-majority supreme court would side with the Trump administration, saying: “I am confident that we will win at the supreme court. But there are numerous other avenues that we can take. They diminish president Trump’s negotiating position … This isn’t about the dollars. This is about balance. The dollars are an after amount.”Bessent’s comments also came on the heels of newly released data from the Bureau of Labor Statistics which revealed that in August, 12,000 manufacturing jobs were lost, marking a total loss of 42,000 jobs since April when Trump made his tariff announcement.“Are these numbers proof that the tariffs are failing to produce the manufacturing jobs that President Trump promised?” Welker asked Bessent, to which he replied: “It’s been a couple of months. And with the manufacturing sector … we can’t snap our fingers and have factories built.”Bessent went on to add that he believes “by the fourth quarter, we’re going to see a substantial acceleration”.In addition to a decline in manufacturing employment since April, job openings and hires have fallen by 76,000 and 18,000, respectively, according to the Center for American Progress.According to economists, Trump’s tariffs are expected to cost American households $2,400 annually while wage growth among manufacturing workers remain stagnant under the tariffs.In August, manufacturing workers earned an hourly average of $35.50, marking only a 10-cent increase from July, the center reported. More

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    Republican condemns Vance for ‘despicable’ comments on Venezuelan boat strike

    The Republican senator who heads the homeland security committee has criticized JD Vance for “despicable” comments apparently in support of extrajudicial military killings.“Killing cartel members who poison our fellow citizens is the highest and best use of our military,” the vice-president said in an X post on Saturday, in defense of Tuesday’s US military strike against a Venezuelan boat in the Caribbean Sea, which killed 11 people the administration alleged were drug traffickers.Vance added: “Democrats: let’s send your kids to die in Russia. Republicans: actually let’s protect our people from the scum of the earth.”Donald Trump has vowed additional military action against purported traffickers, who are not military targets, after the boat strike, saying “there’s more where that came from”.The controversial attack inflamed already-high tensions between the US and Venezuela. In August Trump dispatched war ships and marines to the Caribbean, which his supporters say is in aid of efforts to oust Venezuelan’s authoritarian leader, Nicolás Maduro. On Friday, reports revealed that Trump was sending 10 F-35 fighter jets to Puerto Rico to support US military action against drug traffickers.Some fear the developments presage full military conflict between Venezuelan and US service members. Last month, the US offered a $50m bounty for Maduro, twice what it offered for Osama bin Laden, and in July signed a secret mandate approving military action against Latin American cartels deemed terrorist organizations, such as the Venezuelan group Cartel de los Soles (Cartel of the Suns), which Trump officials have claimed Maduro leads.Trump also framed the boat attack as military activity against “terrorists” in subsequent statements on his social media platform, Truth Social.“The strike occurred while the terrorists were at sea in international waters transporting illegal narcotics, heading to the United ​States,” he said. “The strike resulted in 11 terrorists killed in action. No US Forces were harmed in this strike … Please let this serve as notice to anybody even thinking about bringing drugs into the United States of America. BEWARE!”The Republican senator Rand Paul, who chairs the Senate committee on homeland security and government affairs, condemned Vance’s comments.“JD ‘I don’t give a shit’ Vance says killing people he accuses of a crime is the ‘highest and best use of the military.’ Did he ever read To Kill a Mockingbird?” Paul wrote on X, alluding to Harper Lee’s 1960 novel about a wrongly convicted Black man who is killed as he tries to escape prison.“Did he ever wonder what might happen if the accused were immediately executed without trial or representation? What a despicable and thoughtless sentiment it is to glorify killing someone without a trial.” More

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    ‘The people stood up’: how war turned Iran towards ‘everyday nationalism’

    Amid the ruins of the building that was once the Tehran home of the Iranian nuclear scientist Ahmadreza Zolfaghari, workmen are underway demolishing the remains, damaged beyond repair by Israel’s surprise attempt to assassinate Iran’s political, military and nuclear elite.Zolfaghari had worked at the Faculty of Nuclear Engineering at Shahid Beheshti University, and was editor-in-chief of a nuclear energy journal, all of which was sufficient to make him an Israeli target. He was found dead in the rubble of his home, along with his wife and grownup son. The three adjoining buildings had also been blown apart, killing at least five others, including an 11-year-old child. A blue banner, draped down one of the damaged buildings, reads: “A piece of the body of Iran.”The group of workmen wielding sledgehammers are clambering across the remaining unstable floor struts to demolish what remains of the building. Loose masonry crashes to the ground, sending dust into the air. Their perilous task – the beams on which they stand creak as they hammer – seems a metaphor for a country still in shock, neither at peace nor at war, but in need of reconstruction.More than 1,000 Iranians died in the Israeli attack, and some professional sociologists – a broad term in Iran – argue a new nationalism has emerged into public view.View image in fullscreenThere is no doubt that, outwardly, Tehran is changing fast – and socially it is light years from western perceptions. The number of women not wearing the hijab in Tehran’s streets is about a third and it is not just young women, but sometimes whole families. A new punitive chastity law passed by the religious conservatives – still dominant inside parliament – was rejected by the consensual, but reformist president Masoud Pezeshkian on the pragmatic grounds that it would cause an uprising if it was enforced.The burial of the measure has emboldened women. The police, once keen to bundle the “unchaste” into the back of a van, now leave unscarfed women to their individual choice. The vibrant, albeit polluted, evening streets resemble Beirut as much as Kabul. The next step is to allow women to ride motorcycles. Observers say that Mahsa Amini, the young Kurdish woman who collapsed in a police station in 2022, sparking the “women life freedom” protests, did not entirely die in vain.The cultural sociologist and Soas alumni Nematollah Fazeli claims a deep change may be afoot. What he describes as the emergence of an “everyday nationalism” is reflected in a return to epic poetry, popular podcasts about Iranian history, and thousands of ordinary conversations across the country about Iranian identity.View image in fullscreenFazeli explained: “Before the war, we loved Iran, but it was not a very conscious feeling. After the war, it became a central point of our discourse. Everywhere in cities and villages you observe that people are talking about their nation, their identity, their geography and their history. We just want to remind one another we are Iranian. The sense of oppression of Iran, our nation, our land, our culture, our feelings, by a world system and by foreigners was very important. It led to a desire to be together and to express the commonality of being Iranian.”But he adds: “The Islamic Republic ideology is not a nationalist ideology. The official ideology of the revolution is not keen or interested to represent ancient Iranian culture, and that culture cannot be seen in official education, TV or radio. The people’s reaction to the war was a shock and a kind of negative cohesion. Despite their frustration with the government, the people stood up against foreign aggression; not to defend the Islamic Republic, but to defend Iran. We believe we have been an organic nation for more than 5,000 years.”Mohammad Faze, a teacher, described how his students had put the Iranian flag on their social media profiles. Others point to the flourishing of podcasts about Iranian history and the declarations of love for Iran by popular singers including previous regime critics such as Homayoun Shajarian.View image in fullscreenSome in government have acknowledged the challenge posed by this outpouring for the homeland. Abdolkarim Hosseinzadeh, the vice-president for rural affairs, told a gathering of journalists: “Iran is beautiful with all of us together, my closest friends are not Kurds, they are Persians, Turks, Kurds and Baloch. We have lived together, loved each other and cherished one another. We may not think alike, we may not share the same beliefs, but in Iran, there is no doubt about our friendship, patriotism and love for our homeland.”The issue under debate in Iran now is whether, and how, the government responds to the display of resilience shown by a population under fire, or what the foreign affairs spokesperson, Esmaeil Baghaee, described as the blitz spirit.The experience of war, even short wars, can change nations. Aliakbar Velayati, an adviser to Iran’s supreme leader, argued: “the people have proven themselves, and now it is the turn of the officials. Outdated methods will no longer suffice for a society after the war.”View image in fullscreenBut turning these generalities into reality in a deeply polarised and political society is proving hard. Even Shajarian’s plan to hold a mass free open air concert in Tehran’s Azadi Square this weekend collapsed as a political row broke out as to whether the event was an innocent moment of relief or propaganda.The conservatives believe the social cohesion inadvertently forged by Benjamin Netanyahu’s misconceived attempt at regime change from 30,000ft confirms the popularity of the supreme leader and its ideological foreign policy.But for many reformists, it would be a mistake to read this everyday patriotism as an endorsement for the Islamic Republic, or the status quo. One reformist said: “How can we be so complacent when the currency has fallen 25% in the past week, poverty is everywhere, the official media is a lie and no one knows if another war is around the corner?”The reformists indeed hope there could be a breakthrough; what the former foreign minister, Mohammad Javad Zarif, has described as a paradigm shift. In recent weeks, former prime minister Mir-Hossein Mousavi, who has been under house arrest for 15 years and is now in hospital, issued an open letter demanding a new constitution, while the Reform Front – an umbrella group of moderate and reformist figures – called for the government to take the stepthe US had been demanding and voluntarily suspend domestic enrichment of uranium, in return for the lifting of sanctions.The former two-term president Hassan Rouhani has also weighed in, advocating for a “national strategy based on the will of the people. This crisis must create an agenda to correct the course and rebuild the foundations of governance.”He called for the creation of a grassroots intelligence agency, giving scientists a platform and opportunity to modernise Iran’s defences, diversification of the media by launching more private television channels and ending Iran’s abrasive relationship with the world, including reducing the hostility towards the US.Beyond politicians, 180 economists urged a reordering of “Iran’s economic and political paradigms”, including the removal of the army from business, while 78 former diplomats pressed for a foreign policy that “does not allow delay” in taking the steps necessary to lift sanctions.‘Give diplomacy a chance’But there is still resistance to change. The power held by the Iranian security apparatus has led to a crackdown involving road checks and as many as 20,000 arrests, according to Amnesty International.The conservatives rushed to pass a draconian law giving the authorities power to block online content. The head of the judiciary, Gholam-Hossein Mohseni-Eje’i, condemned the Reform Group’s statement criticising the move as “in line with the enemy’s wishes”, adding “it would be natural for the Tehran prosecutor to take an interest in such statements”, a remark designed to send a chill through the reformists.Faced by these perennial conflicting tides, Pezeshkian’s instinct is to avoid confrontation, sometimes to the frustration of the reformists thatgot him elected in a surprise result only a year ago. Pezeshkian is deeply aware of the limits of his power: that conservative forces are out to crush him, his dependence on the supreme leader and the ubiquity of a deep state protective of its privileges. The polarised tone of Iranian politics worries him as much as sanctions, he admitted last week.He has made consensus his watchword, so much so that Mohsen Asgari, the editor of the innovative multimedia outlet Haft Sobh, argues: “The risk is that he turns a method of government – the search for consensus – into an objective.”Fatemeh Mohajerani, a government spokesperson, educated at Heriott-Watt University, defends Pezeshkian’s commitment to persuasion and problem solving.Consensus building on complex social issues in a polarised society takes time, and separation of powers prevents him from calling for political prisoners to be released. She insists progress is underway, for instance to remove the filters placed on external social media sites such as Telegram, X and even Instagram. Only the intervention of the war prevented Telegram executives from visiting Iran to discuss the terms of their launch, she said. Asked if she thought the government needed to apologise for the deaths and injuries caused to women fighting for their freedom, she responded by saying the government will always apologise if necessary.Pezeshkian’s space to undertake the necessary economic reforms is restricted by the universal political anger caused by the 12-day war and now the threat of reimposed UN sanctions. For many Iranians, reformist or otherwise, the widespread view is that Europe is in effect endorsing Israel’s illegal bombing campaign by its move toward snapback sanctions.View image in fullscreenAnger that the US allowed or connived in the bombing while negotiations were underway, and Europe could not bring itself to condemn this, has left a deep distrust that plays into the hands of the anti-western factions.Reza Nasri, an international lawyer close to the reformist camp, said: “Before the war, there was concern that Trump might withdraw from any signed agreement, but now the worry is that he will bomb us. It is very difficult to make the case within domestic Iranian politics that negotiations are beneficial or will lead to a lifting of sanctions.“The perception is Trump has outsourced his Iran policy to Israel. People feel ‘we went to negotiate and we got bombs so why should we do that again?’ It would be so costly for any government to go back to negotiations. And if Europe wants that to happen, they have gone about it absolutely the wrong way. The most likely outcome of imposing snapback [sanctions] is that Iran will exclude Europe from all future negotiations altogether, and will exclude the UN weapons inspectors. The logical thing for Europe to do is to delay snapback and give diplomacy a chance.”Nasri added: “The issue of Iran’s right to enrich uranium domestically – supposedly the cause of the conflict – is not about building a bomb, deterrence or even about nuclear energy, it is all about retaining a symbol of dignity.”Speaking inside the courtyard of the Hemmat Tajrish mosque by the graves of some of those killed in the 12-day war, Mohammad Faze admits Iranian society has been living on the edge, but insists: “My nature is not to be 100% certain about anything, but if this war comes again we will be ready. We have learned from the 12-day war, and we are prepared. It is deep in the Iranian heart we will not surrender, and we will not be humiliated.” More

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    Donald Trump maelstrom likely to leave US economic model unrecognisable | Heather Stewart

    Donald Trump observed blithely last week that if his cherished tariff regime is struck down by the US supreme court, he may need to “unwind” some of the trade deals struck since he declared “liberation day” in April.It was a reminder, as if it were needed, that nothing about Trump’s economic policy is set in stone. Not only does the ageing president alter his demands on a whim, but it is unclear to what extent he has the power to make them stick.Yet even if the “reciprocal” tariffs first announced on 2 April are rolled back, they are only one aspect of a much wider assault on the last vestiges of what was once known as the “Washington consensus”.To name just a few of Trump’s recent interventions, he has taken a 10% government stake in the US tech company Intel, demanded 15% of the revenue of Nvidia’s chip sales to China and suggested the chief executive of Goldman Sachs should go.This at the same as taking a sledgehammer to Federal Reserve independence by lobbing insults at the chair, Jerome Powell, and trying to sack Lisa Cook from the central bank’s board.The head of the Bureau of Labor Statistics was removed by Trump after a run of poor jobs data; the chief of the National Labor Relations Board, Jennifer Abruzzo, was fired, too.The tech bros who back Trump loathe the NLRB for its role in upholding workers’ rights – mandating unionisation ballots at Amazon warehouses, for example.Trump’s approach is simultaneously systematic, in its determination to smash existing norms, and utterly chaotic. It is hard to categorise: corporate America is being unleashed – through the wilful destruction of environmental and labour standards, for example – and brought to heel.The leftwing senator Bernie Sanders welcomed Trump’s efforts to take a stake in Intel in exchange for government grants, for example – something he advocated in the Guardian back in 2022 – while some Republicans have condemned the approach as (heaven forbid) “socialism”.Partly because it coincides with the AI-fuelled stock boom that has propelled the value of tech companies into the stratosphere, the market response to this torching of the status quo has so far been modest.Whatever emerges from another three and a half years of this maelstrom is likely to be unrecognisable as the US economic model of recent decades.Its destruction has not happened overnight. The days were already long gone when the US, as the world’s undisputed economic superpower, could export free market, financialised capitalism worldwide.After the 2008 crash, the conditions for which were created in Wall Street boardrooms, any moral or practical claim the US had to offer an economic example to other nations evaporated.As the turmoil rippled out through the global economy, and the US government responded by bailing out large chunks of its financial sector, the lie of laissez-faire was laid bare.The crisis exposed the risks of turbocharged capitalism to countries outside the US, too – not least in the former Soviet bloc – that had been advised to adopt the model wholesale.As Ivan Krastev and Stephen Holmes put it in their compelling polemic The Light that Failed, “confidence that the political economy of the west was a model for the future of mankind had been linked to the belief that western elites knew what they were doing. Suddenly it was obvious that they didn’t.”skip past newsletter promotionafter newsletter promotionBack home in the US, meanwhile – as in the UK – the perception that banks had been bailed out, while the galaxy brains behind the crisis got off scot-free, sowed the seeds of a corrosive sense of injustice.Similarly, even before the crash, the idea that ever-expanding free trade brings economic benefits was bumping up against the fact that even if that is true in aggregate, for workers across the US rust belt, just as in the UK’s former manufacturing heartlands, it brought deindustrialisation and unemployment.This was fertile ground for Trump’s populist economic message. His first-term China tariffs were, with hindsight, a relatively modest stab at, as he saw it, tilting the playing field back towards the US.Joe Biden did not unwind those tariffs, which went with the grain of geopolitics, as any hopes that economic liberalisation would bring China into the fold of democracies were sadly dashed, and President Xi’s regime took on an increasingly authoritarian bent.Biden also took a muscular approach to the state’s role in the economy, with the billions in grants and loans distributed under the Inflation Reduction Act linked to national priorities of cutting carbon emissions and creating jobs.So the idea that before Trump arrived on the scene, free market US capitalism was motoring along unchallenged is misleading, but the pace at which he is crushing its remaining norms is extraordinary.There is ample ground for legitimate disagreement here: taxpayer stakes in strategic companies are much more common in European economies, for example. Trump may be laying down tracks that future US governments with different priorities could follow.Given that it is so unclear even what kind of economy he is groping towards, the overriding sense for the moment is of radical uncertainty. Friday’s weak US payrolls data, with the unemployment rate close to a four-year high, suggested companies may be responding with caution.Investors appear to have decided to avert their eyes for now, buoyed up by the prospect of Fed rate cuts, and the mega returns of the tech companies. However, with every chaotic week that passes, the risks must increase – and as the UK has learned in the wake of the Liz Truss debacle, economic credibility is quicker to lose than to rebuild. More

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    Peter Mandelson lauds Trump as ‘risk-taker’ in call for US-UK tech alliance

    Donald Trump is a risk-taker sounding a necessary wake-up call to a stale status quo, Peter Mandelson has told the Ditchley Foundation in a speech before Trump’s second state visit to the UK this month.The UK’s ambassador to Washington portrayed Trump as a harbinger of a new force in politics at a time when business as usual no longer works for fed-up voters.The bulk of the speech was focused on a call for a US-UK technology partnership covering AI, quantum computing and rare-earth minerals as part of efforts to win a competition with China that Lord Mandelson said would shape this century.He said that such a partnership with the US had the potential to be as important as the security relationship the US and UK forged in the second world war, adding: “If China wins the race for technological dominance in the coming decades, every facet of our lives is going to be affected.”The first steps to that partnership are likely to be unveiled during Trump’s state visit, including new commitments for cheap nuclear energy to power the AI revolution.Mandelson, although a fierce pro-European, also said Brexit had not made the UK less relevant to the US, but by freeing the UK from European regulatory burdens had made Britain a more attractive site for US investors.Critics of Mandelson’s interpretation of Trump’s populism will argue that it assumes a set of common values between Trump’s Maga movement and European liberal democracy that is fading.In his pitch for a close US-UK alliance, he made no mention of key points of difference including Gaza, the international rule of law, Trump’s inability to see that Vladimir Putin is stalling in Ukraine, or Trump’s creeping domestic authoritarianism.Insisting he was not cast in the role of Trump’s “explainer-in-chief” and denying there was any need to be sycophantic with the Trump team, he praised the US president for identifying the anxieties gripping millions of impatient voters deprived of meaningful work.He accused those arguing for a pivot away from Trump’s America of “lazy thinking”, arguing that the America First credo on the climate crisis, US aid cuts and trade did not preclude a close partnership.He said: “The president may not follow the traditional rulebook or conventional practice, but he is a risk-taker in a world where a ‘business as usual’ approach no longer works.“Indeed, he seems to have an ironclad stomach for political risk, both at home and abroad – convening other nations and intervening in conflicts that other presidents would have thought endlessly about before descending into an analysis paralysis and gradual incrementalism.“Yet – and this is not well understood – although the Trumpian national security strategy is called ‘America First’, it does not actually mean ‘America Alone’.skip past newsletter promotionafter newsletter promotion“We see him leverage America’s heft to put the right people in the room and hammer out compromises in order to grind out concessions.“I am not just thinking of Ukraine where the president has brought fresh energy to efforts to end Putin’s brutal invasion and bring peace to that region. If the president were so indifferent to the rest of the world, if he was so in love with America alone, he would not have intervened in multiple spheres of conflict over the last seven months.“Furthermore, the ‘international order’ people claim he has disrupted and the calm he has allegedly shattered was already at breaking point. So, I would argue that Trump is more consequence than cause of the upheaval we are experiencing.”He continued: “He will not always get everything right but with his Sharpie pen and freewheeling Oval Office media sprays he has sounded a deafening wake-up call to the international old guard.“And the president is right about the status quo failing from America’s point of view. The world has rested on the willingness of the US to act as sheriff, to form a posse whenever anything went wrong, a world in which America’s allies could fall in behind – not always that close behind either – and then allow the US to do most of the heavy lifting.”Going further than the UK’s official line, he praised Trump’s military attack on Iran, saying: “Trump understands the positive coercive power of traditional American deterrence, deterring adversaries through a blend of strength and strategic unpredictability, as we saw in his decisive action on Iran’s nuclear programme. Well beyond their military impact, these strikes gave a swathe of malign foreign regimes pause for thought.” More