Tag: trump tariffs
Brilliant Tariff Strategy Or Market Manipulation? We Report, You Decide

Brilliant Tariff Strategy Or Market Manipulation? We Report, You Decide

Does anyone believe that Donald Trump brilliantly planned the abrupt reversal of his “recriprocal” tariff barrage? Leaving aside the most zombified MAGA cultists, and those who are paid or otherwise induced to pretend to believe whatever the president says, the answer is no.

But that may not be the right question to ask in the wake of his vaunted policy’s overnight collapse.

The most obvious tell was dropped by Trump himself, who often says the quiet part very loud while his minions and publicists play deaf. When a reporter asked yesterday afternoon whether the scary drop in the market for US Treasury bonds had affected his tariff policies, he replied: “I was watching the bond market. It's very tricky. If you look at it now, it's beautiful. The bond market right now is beautiful. But I saw last night where people were getting a little queasy.” People, he admitted, “were getting yippy," meaning terrified.

Indeed Trump was watching the bond market as prices spiked sharply upward, a signal that traders were losing faith in what has traditionally been viewed as the world’s safest investment. The danger that would represent for the US dollar, the nation’s economic stability, and even the world economy were far too profound to ignore – even for Trump.

Telltale signs of what actually happened in the White House are not difficult to see. Several days ago, as the chaotic tariff schemes driven by Trump and his wayward adviser Peter Navarro dominated the news, a story spread on cable news that Treasury Secretary Scott Bessent -- whose advice they had reportedly ignored and whose personal credibility had cratered -- was “looking for an exit.” Whether that was accurate or not, the possible resignation of the treasury secretary threatened a ruinous blow to the administration.

On Wednesday, Bessent had been scheduled to speak behind closed doors on Capitol Hill, addressing the House Republican Study Committee – an appearance he canceled. He sent his deputy instead, according to Politico, because he was “called into a meeting with Trump.”

And soon enough, instead of quitting, Bessent went before the cameras, accompanied by the ever- belligerent White House Press Secretary Karoline Leavitt, to announce the tariff turnabout. He dutifully recited the rehearsed claim that this shift had been “the president’s strategy all along,” presumably even while stooges like Commerce Secretary Howard Lutnick were sent forth to proclaim that trade is “a national security issue” and no way would he drop the new import duties.

Among those who expressly reject the latest MAGA fairy tale is Fox Business correspondent Charles Gasparino, who told viewers yesterday that market conditions had dictated Trump’s actions, not “the art of the deal.” His analysis was direct and unsparing:

“I mean, let's be clear what happened, who capitulated here, and why? And, you know, I don't want to say this, because I am a patriot, I'm an American, but it is the White House who capitulated, based on everything I hear, and all of my sources. And the reason why is because of the bond market and what happened last night.

“You know, Bessent knows this better than anybody, when you have yields on the 10-year rising to five percent, stuff starts shutting down, when you have the lending market screwed up. By the way, who's dumping the bonds? Somebody asked him if it was China, right? It wasn't, it was Japan. While he was negotiating with Japan, Japan, according to my sources, were running major money management firms that are involved in the bond market, without giving up names. Japan was dumping bonds because they believed this was not a great place to do business. That forced their hands.”

When one of the MAGA bootlickers on Fox, longtime correspondent David Asman, claimed that Trump had calculated the pullback “right up to the edge,” Gasparino corrected him with blunt certainty.

“David, he had no choice, he had no choice. Unfortunately, no choice…the gun was at his head. What happened last night was very bad.”

The real question is whether Trump or anyone acting on his behalf – or others inside the White House privy to his decisions, such as Lutnick or Bessent – made a killing in the stock market by shorting stocks -- or going long when the market was way down. Despite the sharp rise in stock values late on April 9, the recovery on Wall Street hasn't come close to erasing the losses of recent weeks, except for those who might have known what Trump was about to do and acted illicitly to exploit that information.

But we can hardly expect the compliant Attorney General Pam Bondi to open an insider trading investigation of this crooked White House. She’s too busy abusing her powers to harass Trump’s critics.

In Trump's Hands, Absolute Power Brings Inevitable Catastrophe

In Trump's Hands, Absolute Power Brings Inevitable Catastrophe

Everyone should have known what was about to happen when Donald Trump announced huge global tariffs under the slogan "Make America Wealthy Again." Like "Make America Healthy Again," which accompanied the return of deadly measles, the cheery tagline for Trump's trade war foretold ruin — which has arrived at warp speed.

Within hours, the global markets wiped out trillions of dollars in wealth from the balance sheets of retirement accounts and pension plans as well as banks and corporations. What looms ahead is not the "boom" that Trump has predicted but rather a shrinking economy with both stagnating employment and rising prices. Which is precisely the opposite of what he promised voters last year.

Over the weekend, as markets continued to plunge both here and abroad, the president told reporters that tariffs are "a very beautiful thing" while observing that "sometimes you have to take medicine." Or inject a fatal dose of bleach into your veins.

To anyone who has observed Trump closely over the course of his career, this catastrophe was predictable as soon as he gained the unchecked sway he now wields in Washington. He is not a "stable genius" with superior genetic endowment, but a spoiled scion of middling intelligence at best. He is not a brilliant negotiator who can conclude the Ukraine war in a single day or bring the Chinese government to heel, but a failed businessman who wrecked his father's real estate company with bad deals and excessive debt.

Having escaped any accountability for the national destruction incurred during his first presidential term — from the mismanaged pandemic that cost a million lives to the violent coup attempt of January 6, 2021 — he has returned to the White House with even greater arrogance, courtesy of the Supreme Court. Secure in power, he is delivering an extremely painful lesson in the consequences of ignorance and incompetence run amok.

Those dismal qualities were instantly on display in every aspect of the tariff rollout, as neither the president nor his phalanx of flunkies could offer any plausible rationale of his actions beyond sloganeering.

Why is the United States seeking to punish its traditional allies in Europe? Why are we penalizing our best trading partners in Canada and Mexico? Why are we imposing trade barriers on tiny countries like Lesotho and remote islands uninhabited by human beings? (We may yet see how brilliantly Trump negotiates with penguins.) And how did Trump formulate the cardboard list of nations and tariffs he brandished as a prop at his "Liberation Day" announcement?

The White House could offer no coherent response to these puzzling questions, which drew contradictory answers from everyone around Trump, as well as the president himself, or no answers at all. That list resembles something composed on ChatGPT, like a cheating high schooler's homework.

The true purpose of tariffs, according to one of the president's blustering sons, is to assert a muscular dealmaking stance against every nation that supposedly bullied us in the past.

"I wouldn't want to be the last country that tries to negotiate a trade deal with @realDonaldTrump," wrote Eric Trump on X. "The first to negotiate will win — the last will absolutely lose. I have seen this movie my entire life..."

What Eric actually has seen over his entire life is Daddy negotiating ignominious bankruptcy deals with bankers, but never mind. At roughly the same moment that he and others uttered those tough reassurances, the White House press secretary declared that "this is not a negotiation" because the tariffs "are part of a national emergency response" to nations that have harmed American workers for decades. Trump himself shows no sign of preparing to negotiate anything.

The "national emergency" lie is what undergirds Trump's legal authority, for he would otherwise need Congress to approve the tariff program. But before rubberstamping this madness, congressional leaders might insist that he explain its ultimate purpose, which only raises another set of baffling contradictions.

You see, sometimes Trump suggests that his aim is to collect trillions of dollars in revenue from imports, supposedly enough money to replace the income tax. Simple math proves that to be impossible — and unlike the income tax, whose impact is progressive, tariffs impose a far greater burden on middle-class and poor families.

At other times, he claims his objective is to rapidly expand domestic production by replacing goods from abroad. That too is futile, because many important crops can't be grown in sufficient quantity in the United States because our industries rely on global supply chains, and because factories take years to build. If we somehow could substitute U.S. products for all our imports, the tariffs wouldn't raise any revenue at all.

Meanwhile, Trump is torching another of his favorite slogans. As investor Steve Rattner explained on MSNBC's Morning Joe, the current projections show our markets plunging faster and our gross domestic product shrinking more than in other developed countries.

So much for "America First."

Joe Conason is founder and editor-in-chief of The National Memo. He is also editor-at-large of Type Investigations, a nonprofit investigative reporting organization formerly known as The Investigative Fund. He is the author of several books, including The Raw Deal: How The Bush Republicans Plan To Destroy Social Security and the Legacy of the New Deal. His latest book is The Longest Con: How Grifters, Swindlers and Frauds Hijacked American Conservatism.

Reprinted with permission from Creators Syndicate.

Over And Over, Trump Kicks America's Farmers In The Teeth

Over And Over, Trump Kicks America's Farmers In The Teeth

This is the time of year when hobby gardeners like me begin setting up grow lights, buying peat pots, sketching out a map of this year’s beds, and whipping out credit cards for mail-order seeds. If you like the physical work, a 40x40 plot will keep you in flowers, berries, and produce for most of the summer; while root vegetables, garlic, onions, and frozen produce last for a good chunk of the winter (butternut squash, anyone?)

Things happen, of course. A mama vole built a nest next to my friend’s sweet potato bed, eliminating her harvest but growing a robust family of pups. Two years ago, a rainy June meant that everyone in the community garden ended up with a rollicking case of tomato blossom end rot, and when the flea beetles show up, if you haven’t set up hoops and covers, rows of kale become green lace.

We in the local community garden shrug such things off. Real farmers can’t; nor can they take the economic gut punches that the Trump administration is handing them daily. At a time of year when they have already purchased hundreds of thousands of dollars’ worth of seed and fertilizer on credit, and the market is shrinking, farmers are said to be nervous.

Strikingly, given the role that food prices played in the 2024 campaign, Donald Trump had little of substance to say to the nation’s food industry last night in his 99-minute stemwinder of hatred last night. Reprising his Greatest Campaign Hits, not only did Trump seem almost entirely unaware of how agriculture works, but he seemed not to care. At the same time, his Cabinet and policy staff also seem unable to coerce him into even thinking about agriculture, a $1.5 trillion sector of our economy that represents over 5% of our gross domestic product (GDP).

It’s particularly odd since the agricultural Midwest and South powered Trump to victory less than five months ago. Look at this map of the 2024 presidential election results:

Source: 270towin.com

In a word: although these are not densely populated states, they represent a substantial chunk of Trump voters. And those Blue states? Farmers and rural communities vote Republican there too, Let’s take California as an example. Most of the votes that make these states Democratic come from the coastal districts, while the agricultural regions of the state are very red, and keep that razor-thin GOP House majority even remotely viable.

Source: Politico.com

It’s puzzling, then, that out of that ninety-nine minutes, Trump addressed the economic structure of American agriculture and the future of its workers for fewer than five.

Beginning with a brief nod to the price of eggs (which is even higher than it was in the fall), Trump took the opportunity to blame President Joe Biden for letting eggs “get out of control. The egg price is out of control,” he repeated, “and we're working hard to get it back down. Secretary, do a good job on that. You inherited a total mess from the previous administration. Do a good job.”

I’m not sure which secretary he was talking to—probably Brooke Rollins, the Secretary of Agriculture—but Trump gave no indication that he understands why eggs are expensive, or that Secretary Rollins recently unveiled a $1 billion initiative that includes “$500 million for biosecurity measures, $400 million in financial relief for affected farmers, and $100 million for vaccine research, action to reduce regulatory burdens, and exploring temporary import options.” None of this is going to bring the price of eggs down any time soon; nor did Trump acknowledge that an egg shortage affected anyone but your average American breakfast eater.

But the more important question is: given the deep cuts to the federal workforce authorized by Trump, who will be there to carry out Rollins’ program?

According to one independent news source in Minnesota, mass layoffs at the USDA “are `crippling’ the agency, upending federal workers’ lives and leaving farmers and rural communities without needed support.” Nebraska Public Media reports that “dozens” of researchers working on animal disease control in Iowa, Nebraska, Oklahoma, and Kansas have been terminated—although recently, “the USDA scrambled to hire back employees who deal with the government’s response to bird flu.” Federal agricultural specialists have also suffered mass layoffs in Oregon and Washington.

If the uncertainty and chaos of disease prevention and research programs is not making farmers nervous enough, add the effects of weather events due to climate change, and shrinking federal price supports for the commodities market. Yet, this is what Trump had to say about how his isolationist foreign policy and trade wars will affect farmers. “Our new trade policy will also be great for the American farmer:”

I love the farmer. Who will now be selling into our home market, the USA, because nobody is going to be able to compete with you. Because there's goods that come in from other companies, countries and companies. They're really, really in a bad position in so many different ways. They're uninspected. They may be very dirty and disgusting, and they come in and they pour in and they hurt our American farmers. The tariffs will go on agricultural product coming into America and our farmers starting on April 2nd.

Of course, Trump conceded, “It may be a little bit of an adjustment period. We had that before when I made the deal with China.”

It wasn’t a little adjustment period: it was a permanent slide in commodities prices, and shrinking foreign sales, whose effects are felt today. “There was an immediate impact, you know, on the market,” one soybean producer told NPR reporter Scott Simon in February. “We saw within the first few days of the retaliatory tariffs from China in 2018 nearly a $2 drop when it comes to soybeans in the cash price that we were able to receive.”

This must be what Trump was referring to when he mused: “I said, just bear with me. And they did. They did. Probably have to bear with me again and this will be even better. That was great.” But farmers don’t remember it as “great,” but rather “a Band-Aid approach” that permitted China and other countries to shift their attentions away from United States producers. The permanent damage, according to the farmer interviewed by Simon, has been a 30-50% drop in commodity prices.

The only thing that kept many farmers in business were compensatory payments—from the Trump administration! And it was Biden pumping money into farm subsidies, grants, and loans that kept many farmers afloat long enough to vote for Trump in 2024.

Already in a period of mild economic decline, American farmers will be harmed by other Trump policies, including cuts to USAID and other foreign aid programs. These are, in essence, cuts to federal spending on American farmers, whose products the United States has purchased and sent abroad since World War II.

Farmers stand to lose approximately $2.1 billion from these cuts.

You also don’t have to be a policy wonk to understand why labor shortages fueled by Donald Trump’s war on immigrants will simultaneously drive up costs and leave crops to rot in the field. While machines can pick some crops, they can’t pick all of them, and they don’t move irrigation pipes, care for livestock, drive tractors, sex chickens….the list goes on.

I partly grew up in farm country, southern Idaho to be precise, a place you know for potatoes, but which grows a far greater range of agricultural products because of its light, rich volcanic soil and mild climate. Idaho is also a perennial employer of migrant laborers, despite the fact that potatoes and sugar beets are no longer dug by hand. Of the almost 62,000 agricultural workers that labor in the state, almost 81 percent are migratory. An estimated 10,000, or 1/6 of that labor force, is undocumented. Nationally, Idaho is on the low end of undocumented labor: 42 percent of the approximately 240,000 workers who make up the farm labor work force are vulnerable to deportation under Trump policies. Another 17 percent are immigrants authorized to work, but now more vulnerable under the Laken Riley Act.

In a strange twist of fate, Idaho—one of hte most MAGA states in the country—is suffering such a severe labor shortage, that it is trying to legislate its own guest worker program. This is almost surely unconstitutional, and puts Idaho on course for conflict with Trump aide Stephen Miller, who would feed immigrants to sharks if he could.

History suggests that, in breaking with decades of policies that have supported and promoted agriculture, MAGA policies are terrible for farmers. Take a look at this next chart, which graphs farm bankruptcies between 2015 and 2024, the period spanning the first Trump, and then the Biden, administrations.

Source: Market Intel

Do you see what I see? Farm failures, already on the rise, accelerated under Trump, rising dramatically in 2019 when the effects of the 2018 tariffs undermined the subsequent growing season. Bankruptcies decreased slightly as the administration pumped money into the system in 2020, receding when the Biden administration began to reinstitute traditional farm supports.

And here’s the thing: each of those farms -- whether they are part of a large agribusiness enterprise or the 89 percent that gross $250,000 or less annually and are classified as “small family farms” -- supports rural people and the communities they live in. They underwrite the state and local tax structure, small businesses, and the people those businesses employ.

Donald Trump and the Republican Party are, of course, in love with an idea about reviving industrial labor on a model that hasn’t been dominant in the United States since the mid-1970s. MAGA fanboys in the media are just as urban as Trump, uninterested in and ignorant about farming: one political consultant I was sparring with on X disparaged farmers as “whiners.” That characterization is anything but true—one of the reasons farmers tend to be Republicans is that they are the opposite of that: independent-minded, uncomplaining, tough people who, season after season, continue in an uncertain enterprise that can flip on them overnight because they love the work.

But Donald Trump doesn’t love them back: he barely seems to know farmers are alive. And none of the Cabinet members tasked with the health of the agricultural economy have the courage to tell him the truth about what his policies really mean for America’s heartland—as well as prices at the grocery store.

Claire Bond Potter is a political historian who taught at the New School for Social Research. She is a contributing editor to Public Seminar and wrote the popular blog Tenured Radical from 2006 through 2015. Please consider subscribing to Political Junkie, her Substack newsletter.

'Enjoy Your Cheap Avocados': Trump Vows Big Tariffs On Mexico And Canada

'Enjoy Your Cheap Avocados': Trump Vows Big Tariffs On Mexico And Canada

President-elect Donald Trump announced via social media on Monday that he will enforce tariffs on goods imported from Canada, Mexico, and China.

"On January 20th, as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders," the MAGA leader wrote via his Truth Social website. "This Tariff will remain in effect until such time as Drugs, in particular Fentanyl, and all Illegal Aliens stop this Invasion of our Country! Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem. We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!"

He continued, "I have had many talks with China about the massive amounts of drugs, in particular Fentanyl, being sent into the United States - But to no avail. Representatives of China told me that they would institute their maximum penalty, that of death, for any drug dealers caught doing this but, unfortunately, they never followed through, and drugs are pouring into our Country, mostly through Mexico, at levels never seen before. Until such time as they stop, we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America. Thank you for your attention to this matter."

Several political and economic experts slammed the president-elect's announcement.

Adam Isacson replied: "Using the same logic, Mexico and Canada could impose tariffs on US goods until we get serious about: - Reducing US demand for illicit drugs - Stopping cross-border trafficking of guns easily purchased in US shops - Curtailing money-laundering in US banks, real estate, etc."

Rep. Don Beyer (D-VA) said: "Donald Trump’s first act as president will be to intentionally *raise* prices for the American people."

Economist and University of Los Angeles law professor Kimberly Clausing commented: "Policy by tweet is something we once again brace for. But the uncertainty and chaos are just part of the economic damage that these policies bring. Canada and Mexico are our largest trading partners, and these huge tariffs will raise prices for consumers."

Boston College political science assistant professor Masha Krupenkin replied: "Enjoy your cheap avocados and electronics while you can."


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