Trump, Donald J

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    Rising Inflation Underscores Risks in Trump’s New Tariff Threats

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    New data showing price increases last month could foreshadow even higher costs if the president imposes steep tariffs on Aug. 1.President Trump’s steep tariffs have started to weigh on consumers’ wallets, sending prices higher as the White House readies a more drastic — and potentially costly — expansion of its global trade war.The risks in Mr. Trump’s economic strategy began to show on Tuesday, with the release of data that found inflation had accelerated in June. Prices rose noticeably on appliances, clothing and furniture, products that are all heavily exposed to the president’s taxes on imports from Canada, China and other major trading partners.The inflation report undercut Mr. Trump’s continued assertions that Americans would not face financial repercussions from his increasingly aggressive trade brinkmanship. Since taking office, the president has imposed withering duties on allies and adversaries alike, with additional taxes on a range of products such as cars and steel.The latest reading of the Consumer Price Index recorded the first signs of what economists had predicted all along, with U.S. businesses and consumers shouldering a growing share of the burden from the taxes Mr. Trump has imposed on imports.The data also carried perhaps a new warning for the president as he prepares another round of tariffs on dozens of countries in about two weeks, including a 30 percent tax on the European Union. Some experts said that an uptick in inflation could foreshadow more significant price increases later, especially if Mr. Trump proceeds as planned.“Up until this report, you could have argued that inflation is on a journey lower,” said Padhraic Garvey, who leads ING’s research team for the Americas. “Now we are on a journey higher.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    He Helped Big Companies Dodge Taxes. Now He’s Writing the Rules.

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    Ken Kies, a longtime tax lobbyist who worked for some of the world’s largest businesses, is now running the Treasury Department’s office that will administer Trump’s tax law.In January 2022, the Internal Revenue Service was cracking down on a tax dodge from the agency’s “dirty dozen” list of abusive shelters. To fight back, promoters of the scheme turned to the lobbyist Ken Kies.In a conference call with lawyers and financial advisers, Mr. Kies outlined plans to fight the I.R.S., including by capitalizing on his close relationship with a top agency official, according to a recording of the call obtained by The New York Times.Now Mr. Kies has become the Treasury Department’s top tax policy official. The former veteran lobbyist, who has worked for some of America’s biggest companies, was confirmed by the Senate last month to serve as Treasury’s assistant secretary for tax policy.It is not uncommon in President Trump’s Washington for lobbyists or other interested parties to get high-level positions at agencies where they once sought access on behalf of corporate clients. But Mr. Kies is not just any lobbyist. For decades, he has played an instrumental role in enabling some of the most lucrative and most important tax avoidance strategies used by multinational companies and the wealthiest Americans.When the Clinton administration sought to stem the tide of companies shifting trillions of dollars of profits into offshore havens, Mr. Kies led the effort on behalf of a coalition of businesses to kill the regulation. In the George W. Bush administration, Mr. Kies successfully pushed for legislation to make such offshore tax dodges even easier to execute. During the Obama administration, he fended off another attempted crackdown on those strategies.In 2017, as part of a sweeping package of tax cuts signed by Mr. Trump, Mr. Kies lobbied for a new tax break that provides a 20 percent deduction to certain businesses, which overwhelmingly benefits the richest Americans. And most recently, he advised the Trump Organization on a dispute with the I.R.S.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    It’s No Bluff: The Tariff Rate Is Soaring Under Trump

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    The president has earned a reputation for bluffing on tariffs. But he has steadily and dramatically raised U.S. tariffs, transforming global trade.President Trump’s on-again, off-again tariffs have prompted investors to bet that he will “always chicken out” and given businesses and foreign leaders hope that the leader of the world’s largest economy will ultimately back down from his threats if they prove too economically disruptive.Events of the past week have cast serious doubt on that bet. As Mr. Trump renews trade threats against more than two dozen trading partners, he is once again proving his fondness for tariffs, and embracing import taxes in a way that no other president has since the Great Depression.A self-described “tariff man,” Mr. Trump has continually extolled the virtues of heavily taxing imports as a way to raise revenue and cajole factories to relocate to the United States. While the president may ultimately give way on some of his most recent threats, he has still steadily and dramatically raised tariffs to levels not seen in a century.Over the past week, Mr. Trump has threatened 25 trading partners with punishing levies on Aug. 1 unless they sign trade deals that Mr. Trump finds acceptable. The list of countries he plans to raise tariffs on include some of America’s biggest sources of imports, including the European Union, Japan, Mexico, Brazil, South Korea and Thailand. Those countries had been in active talks with the United States about resolving Mr. Trump’s concerns in an effort to avoid tariffs.Several may still reach deals to avert some of the levies, including India, the European Union, Taiwan and Japan.But even if some deals are reached, American tariffs on trading partners are still likely to rise significantly. That was the case with the two trade agreement frameworks that the Trump administration has so far announced, with Britain and Vietnam, both of which leave double-digit tariffs in place.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    To Sidestep Trump Tariffs, Asian Nations Seek New Trade Partners

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    Most nations are still negotiating in hopes of avoiding punitive import taxes. At the same time, they’re looking for trading partners as a way around the United States.For most countries that received President Trump’s letters last week threatening steep tariffs, especially the Asian nations with economies focused on supplying the United States, there are no obvious substitutes as a destination for their goods.But they are doing their best to find them.Business and political leaders around the world have been roundly baffled by the White House’s imposition of new duties, even as governments shuttled envoys back and forth to Washington offering new purchases and pledges of reform. Mr. Trump is erecting new trade barriers and demanding deep concessions by Aug. 1, claiming years of grievance because America buys more than it sells.“Across the world, tools once used to generate growth are now wielded to pressure, isolate and contain,” Anwar Ibrahim, the prime minister of Malaysia, said at a gathering of Southeast Asian leaders on Wednesday. “As we navigate external pressures, we need to fortify our foundations. Trade among ourselves. Invest more in one another.”“As we navigate external pressures, we need to fortify our foundations,” Prime Minister Anwar Ibrahim of Malaysia said on Wednesday. Vincent Thian/Associated PressThere are already a few signs of such efforts. South Korea’s new president, Lee Jae Myung, sent special envoys to Australia and Germany to discuss defense and trade issues, and plans on dispatching delegations to several others. Brazil and India announced plans to increase their bilateral trade by 70 percent, to $20 billion.Indonesia says it is nearing a treaty with the European Union that would drop most tariffs on both sides to zero. And in Vietnam, which Mr. Trump said had accepted 20 percent tariffs on its goods headed to the United States before last week’s letters, the deputy trade minister emphasized efforts to reduce her country’s reliance on American consumers by leveraging other trade agreements.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Tariffs or Deals? Trump Seems Content With Punishing Levies.

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    The president’s supporters portray him as a top dealmaker. But, at least for now, far more trading partners have gotten stiff tariffs than trade deals.Even after President Trump announced sweeping global tariffs in April, some investors and supporters comforted themselves by arguing that the president’s goal was still to open global markets, not close them off.The belief, promoted by Mr. Trump himself, was that he was using his tariffs as a lever to crack open foreign markets and the administration would soon deliver dozens of deals that would increase U.S. exports and help American businesses flourish abroad.Three months later, that optimism is being replaced by doubts that Mr. Trump’s goal was ever to strike the kind of trade deals that would open up markets. When Mr. Trump paused his global tariffs for 90 days in April, he said the delay would give his administration time to reach trade deals with countries across the world. In the intervening months, Mr. Trump boasted about how countries were lining up to talk to the United States and at one point claimed he had reached 200 deals.But the administration has only announced two preliminary deals, with Britain and Vietnam, and the status of the Vietnam deal is now in question. While handshake agreements with the European Union, India, Taiwan and other governments could soon be pending, they are likely to be limited pacts that leave much left to be negotiated. Even when deals have been announced, the administration has left double-digit tariffs in place, with the promise of more levies on foreign products on the way.This week, Mr. Trump sent out nearly two dozen letters notifying countries of the high tariff rates they will be charged as of Aug. 1 if they don’t sign trade deals. That included nations that were in active negotiations with the United States, like Indonesia, Canada, South Korea and Malaysia.With less than a month before the Aug. 1 tariffs kick in, the Trump administration may have the capacity to deal with only a fraction of those countries. Some governments that have sought out meetings with U.S. officials have not been able to schedule them.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump’s Seesawing on Tariffs Gives the World Whiplash

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    Blunt letters dictating terms posted to social media and changes late in negotiations have left trading partners wondering what President Trump will do next.Six months into his new administration, Mr. Trump’s assault on global trade has lost any semblance of organization or structure.He has changed deadlines suddenly. He has blown up negotiations at the 11th hour, often raising unexpected issues. He has tied his tariffs to complaints that have nothing to do with trade, like Brazil’s treatment of its former president, Jair Bolsonaro, or the flow of fentanyl from Canada.Talks with the United States were like “going through a labyrinth” and arriving “back to Square 1,” said Airlangga Hartarto, the Indonesian minister for economic affairs, who met with U.S. officials in Washington on Wednesday.The resulting uncertainty is preventing companies and countries from making plans as the rules of global commerce give way to a state of chaos.“We’re still far away from making real deals,” said Carsten Brzeski, global head of macroeconomics at the bank ING in Germany. He called the uncertainty “poison” for the global economy.Gone is the idea that the White House would strike 90 deals in 90 days after a period of rapid-fire negotiation, as Mr. Trump pledged in April. Instead, Washington has signed bare-bone agreements with big trading partners including China, while sending many other countries blunt and mostly standardized letters announcing hefty tariffs to start on Aug. 1.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump Fuels Fear Among Immigrant Farm Workers in California’s Central Valley

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    The farmers in California’s Central Valley like to say they feed the world, and it is not hyperbole.The valley stretches for 450 fertile miles from Bakersfield in the south to Redding in the north, yields an estimated 40 percent of the fruit, vegetables and tree nuts grown in the United States, and exports half of that bounty overseas. California agriculture overall is a $60 billion annual business.It is also one that President Trump has thrown into turmoil. Only in recent weeks has he offered vague glimmers of hope.When agents from the Border Patrol and Immigration and Customs Enforcement turned up last month at farms and packing houses in Ventura County, well south of the Central Valley, there was panic in the valley’s fields, where an estimated 80 percent of farmworkers are undocumented. Farmers here, most of whom voted for Mr. Trump and had expected him to protect them, were in a rage.“I would love to just call a general strike,” said one fuming grower, Vernon, who stood among his acres of plum trees near the town of Kingsburg on a recent sweltering morning. “Let’s just quit feeding America for one week!” Vernon asked that only his first name be used because of the undocumented workers he employs.There have been no raids so far this month in the Central Valley, but Manuel Cunha Jr., the president of the Nisei Farmers League, which represents 500 farmers and more than 75,000 farmworkers, mostly in the region, is on edge. “If we get one Border Patrol raid, we’re screwed,” he said in an interview in his Fresno office. “Because no one is going to go to work in any field or packing house.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump Tariffs Aim to Settle Scores With Countries, No Matter Their Size

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    The president’s tariff announcements suggest he has not backed away from his initial strategy, where even smaller trading partners will face tariffs.President Trump added on Wednesday to his growing list of countries that would face steep tariffs in the coming weeks if they fail to reach trade agreements with the United States, as he threatens to drag nations large and small into his trade war.On his social media account, the president posted form letters informing countries — including the Philippines, Sri Lanka, Moldova, Brunei, Libya, Iraq and Algeria — that they should prepare for double-digit tariff rates. Except for the name of the country and the tariff rate, the letters were identical to those he posted on Monday, which targeted 14 nations.Later Wednesday afternoon, Mr. Trump issued another threat to impose a 50 percent tariff on products from Brazil. His letter implied that the higher rate was partly in response to what Mr. Trump described as a “witch hunt” against former President Jair Bolsonaro, who is facing trial for attempting a coup.Brazil and the other trading partners that Mr. Trump targeted Wednesday join a growing list of countries that will face additional tariffs Aug. 1, including Japan and South Korea. The president’s renewed threats against both large and small trading partners suggests that he is hewing to a global tariff strategy he announced in early April that punishes countries broadly for a variety of trading practices and policies he has deemed unfair.In issuing his threat to Brazil, which was more sharply worded than the previous form letters, Mr. Trump cited the country’s “insidious attacks on Free Elections, and the fundamental Free Speech Rights of Americans (as lately illustrated by the Brazilian Supreme Court, which has issued hundreds of SECRET and UNLAWFUL Censorship Orders to U.S. Social Media platforms, threatening them with Millions of Dollars in Fines and Eviction from the Brazilian Social Media market).”As part of his attack, Mr. Trump also directed his trade representative, Jamieson Greer, to begin investigating Brazil’s digital trade policies, which could result in further tariffs.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More