United States Politics and Government

More stories

  • 138 Shares199 Views

    in Economy

    Clock Ticks Down Toward Sweeping Tariffs on Canada, Mexico and China

    by

    President Trump could still choose to pause the tariffs he is threatening to put on America’s largest trading partners Tuesday, but industries are preparing for the worst.When President Trump announced last week that an additional 10 percent tariff on Chinese goods would take effect on Tuesday, Logan Vanghele immediately called the logistics company that was handling a $120,000 shipment of aquarium products for his small business.The cargo was on a ship en route to Boston from China. His message was clear: “Get this thing off the boat, please.”Company executives and foreign officials are scrambling to avert the consequences of another tight deadline from Mr. Trump, who has threatened to put stiff tariffs on goods coming in from China, Canada and Mexico starting just after midnight Tuesday.The president describes this as an effort to pressure those countries to stop the flow of deadly drugs and migrants to the United States. But Mr. Trump’s game of brinkmanship with America’s three largest trading partners is creating intense uncertainty for business owners.That includes Mr. Vanghele, 28, who runs a small company that sells lighting and equipment for aquariums, all of which is made in China. He had no idea that the shipment — one of his biggest so far — could face such fees when it left Yantian Port in southeastern China in January, just days before Mr. Trump’s inauguration. In a frantic effort to avoid paying roughly $25,000 in tariffs, Mr. Vanghele pleaded with the logistics firm last week to unload his container at a port in Norfolk, Va., where it stopped on Friday, instead of traveling on to Boston.While it is possible that Mr. Trump’s new tariffs will include an exemption for goods that are already on the water, there is no guarantee.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

  • 113 Shares109 Views

    in Economy

    Trump Picks Another Trade Fight With Canada Over Lumber

    by

    The president initiated an investigation that could lead to tariffs on lumber imports, nearly half of which comes from Canada.President Trump on Saturday initiated an investigation into whether imports of lumber threaten America’s national security, a step that is likely to further inflame relations with Canada, the largest exporter of wood to the United States.The president directed his commerce secretary, Howard Lutnick, to carry out the investigation. The results of the inquiry could allow the president to apply tariffs to lumber imports. A White House official declined to say how long the inquiry would take.An executive memorandum signed by Mr. Trump ordered the investigation and was accompanied by another document that White House officials said would expand the volume of lumber offered for sale each year, increasing supply and helping to ensure that timber prices do not rise.The trade inquiry is likely to further anger Canada. Some of its citizens have called for boycotts of American products over Mr. Trump’s plans to impose tariffs on all Canadian imports beginning on Tuesday. The president, who also plans to hit Mexico with similar tariffs, says the levies are punishment for failure to stem the flow of drugs and migrants into the United States.Many Canadians have contested Mr. Trump’s assertion that fentanyl is flowing from its country into the United States.Canada and the United States have sparred over protections in the lumber industry for decades. The countries have protected their own industries with tariffs and other trade measures, and argued about the legitimacy of those measures in disputes both under the North American Free Trade Agreement and at the World Trade Organization.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

  • 125 Shares199 Views

    in Economy

    Who Are the Probationary Federal Workers Being Cut Under Trump?

    by

    Many government workers being cut are those with fewer protections. They are relatively new in their current jobs, but often have years of experience.In news about the Trump administration’s job-slashing effort, one class of federal workers comes up repeatedly: “probationary” employees.At the Internal Revenue Service, 6,700 people with that status are being let go. At the Department of Health and Human Services, reports indicated the total could be 5,200. The Pentagon announced last week that it would terminate 5,400. At the Forest Service, 3,400 may be cut.These workers, who generally have less than one or two years of service in their current positions, are particular targets among civil servants because they have the weakest protections. Here’s what else we know about the people being shown the door.What does being on ‘probation’ mean?Under the federal code, civil servants remain on probation for one year after they are hired, promoted, demoted or otherwise reassigned. Those in the “excepted” service, meaning they don’t go through normal competitive selection processes, can be on probation for two years.While on probation, a federal employee can essentially be fired at will, although the person’s superiors need to show that the employee’s “work performance or conduct fails during this period to demonstrate his fitness or his qualifications for continued employment.” (Many termination notices included language about the employee’s supposedly inadequate performance, typically without evidence.) Probationary employees may also appeal if they believe they were fired for partisan political reasons or on the basis of unlawful discrimination.After employees have completed their probation period, they gain more rights to appeal a termination to the Merit Systems Protection Board. Under those rules for due process, the agency must show that an employee wasn’t doing the job, or that the job was no longer necessary.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

  • 138 Shares99 Views

    in Economy

    Markets and Corporate America Are Unfazed by Washington Chaos, for Now

    by

    The federal budget debate has big implications for the economy. Businesses are betting that tax cuts will be extended and the math will work out.Even by Washington standards, the second Trump presidency has begun in frenetic fashion: mass firings at federal agencies, tariff threats against allies and foes alike, and haggling over how to get a Republican budget through a narrowly divided Congress.Business leaders and corporate investors are confident that things will turn out fine, at least for them. “Markets aren’t showing all that much concern,” Jason Pride, chief of investment strategy and research at the Glenmede Trust Company, noted.But that could change, with high-stakes implications for the markets and the U.S. economic outlook.Investors fully expect the tax cuts from President Trump’s first term, which mostly benefited businesses and the wealthy, to be fully extended before the end of the year. Trade groups including the Business Roundtable and the National Association of Wholesaler-Distributors are confident the extension will be taken care of — especially since not doing so “would impose, effectively, a tax increase,” Mr. Pride added.Still, the arithmetic remains tenuous. The cost of extending the tax cuts may total $4 trillion over 10 years. That means Congress is being left to barter over what else can save or raise money, and whose federal benefits might be cut.The bond market — where traders price the risk of both inflation and an economic downturn — has, for its part, shimmied off moments of worry brought on by Mr. Trump’s boomeranging style of negotiation over tariffs. The bet is that the threats of an import tax are more a geopolitical tool than a key revenue raiser, as the administration has portrayed the tariffs in budget discussions.Some of the underlying calm stems from Wall Street’s confidence in Treasury Secretary Scott Bessent. A billionaire hedge fund manager before assuming his new position, he has convinced many analysts that the ultimate suite of policies coming from the White House will be beneficial once it coalesces, and he “has also added to some optimism around lower deficits” in future budgets, according to Matt Luzzetti, the chief economist at Deutsche Bank.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

  • 125 Shares169 Views

    in Economy

    Trump Tests Fed’s Independence With Order Expanding Authority Over Agencies

    by

    The Federal Reserve’s independence from the White House has long been enshrined in the law. But an executive order that President Trump signed this week seeking to extend his administration’s reach over independent agencies is prompting concerns about how much further he will go to challenge that separation.Mr. Trump’s directive took aim at regulatory agencies that had typically operated with limited political interference as authorized by Congress.The order partly shielded the Fed by exempting the central bank’s decisions on interest rates. Those are voted on at every meeting by seven presidentially appointed members of the Board of Governors, who typically serve 14-year terms, as well as a rotating set of five presidents from the regional reserve banks.But the order sought to exert authority over how the Fed oversees Wall Street, decisions that are ratified with majority support by the board.The order was the president’s latest attempt to centralize the executive branch’s power over the government. It requires independent organizations to submit proposed rule changes to the White House for review and gives the Office of Management and Budget oversight of how these institutions spend funds and set priorities. It also asserts that the president’s and the Justice Department’s interpretations of the law are binding and that alternative interpretations require authorization.The expansive nature of the order has raised questions about whether Mr. Trump’s decree is legally applicable to an institution like the Fed. It has also fueled speculation that the president — who has a history of trying to influence the central bank’s decision on interest rates — may eventually turn his scrutiny to monetary policy decisions.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

  • 125 Shares99 Views

    in Economy

    Clean Energy Was Lifting Manufacturing. Now Investment Is in Jeopardy.

    by

    With the Trump administration reversing support for low-carbon power, the business case for making wind, solar and electric vehicle parts gets weaker.American manufacturing has been in the doldrums for years, battered by high borrowing costs and a strong dollar, which makes exports less competitive. But there has been a bright spot: billions of dollars flowing into factory construction, signifying that a potential rebound in production and employment is around the corner.The flood of investment has been driven by two major categories of subsidies provided under the Biden administration. One offered incentives for the construction of several enormous semiconductor plants set to begin operation in the coming years. The other supercharged the production of equipment needed for renewable energy deployment.This second category is in jeopardy as the Trump administration and the Republican-led Congress seek to roll back support for low-carbon energy, including battery-powered vehicles, wind power and solar fields.One option to raise money to offset the cost of their desired tax cuts is truncating credits for renewable power generation.“If it ends up that the timeline for these credits is shortened, then the incentives to develop an onshore manufacturing facility obviously go down,” said Jeffrey Davis, a lawyer with White & Case who specializes in renewable energy incentives. “If you’re looking at the prospect of sales and revenue over a three-year period instead of an eight-year period, the manufacturing facility may not pencil out.”The Biden administration’s strategy relied on a push and a pull. First, push the supply of clean energy products through tax breaks, loans and direct grants to manufacturers. Equally important was pulling demand along: rebates for buying electric cars, tax credits for producing renewable power, and subsidies for states and individuals to install solar arrays. Companies contemplating manufacturing investments took both sides into account when planning where to build or expand a plant.Investment in Factories Has Been BoomingAmerica isn’t yet making more stuff, but it’s building more buildings to make more stuff — largely because of subsidies for clean energy and semiconductors.

    Figures for each quarter are shown at a seasonally adjusted annual rate, in chained 2017 dollars.Source: Bureau of Economic AnalysisBy The New York TimesWe 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

  • 125 Shares119 Views

    in Economy

    Trump Labor Nominee Lori Chavez-DeRemer Faces Pressure at Senate Hearing

    by

    Asked for her views on pro-labor legislation she backed as a House Republican, Lori Chavez-DeRemer said she would simply serve the president’s agenda.President Trump’s pick as labor secretary faced pointed questions from both parties at her Senate confirmation hearing on Wednesday over her past support for pro-union legislation, an issue that could complicate her nomination.The nominee, Lori Chavez-DeRemer, a former Republican congresswoman, was pressed repeatedly about her stand on the Protecting the Right to Organize Act, known as the PRO Act — a sweeping labor bill that sought to strengthen collective bargaining rights. She was a co-sponsor of the measure, a top Democratic priority that has yet to win passage, and one of few Republicans to back it.Asked if she continued to support it, Ms. Chavez-DeRemer demurred, saying she was no longer in Congress and would support Mr. Trump’s agenda.“I do not believe that the secretary of labor should write the laws,” she told the Senate Health, Education, Labor and Pensions Committee, which conducted the hearing. “It will be up to the Congress to write those laws and to work together. What I believe is that the American worker deserves to be paid attention to.”But in response to questions from Rand Paul of Kentucky, one of several Republican senators who have expressed opposition to her confirmation, she said she no longer backed a portion of the legislation that Mr. Paul said undermined “right to work” states, where unionization efforts face stiff legal and political barriers.The unusual nature of Ms. Chavez-DeRemer’s nomination was apparent in the makeup of the audience in the committee room, which was packed with members of the Teamsters union, identifiable by their logo-emblazoned fleeces and jackets. The nominee played up her personal connection to the union on Wednesday, saying in her opening statement, “My journey is rooted in the values instilled by my father, a proud Teamster who worked tirelessly for over 30 years.”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

  • 113 Shares159 Views

    in Economy

    Trump Eyes a Bigger, Better Trade Deal With China

    by

    During the Biden administration, Donald J. Trump would sit in his mirrored and gold-trimmed salon at Mar-a-Lago where he had once hosted China’s leader, Xi Jinping, brooding to visitors about the outcome of the trade agreement he signed with China in 2020.Mr. Trump would castigate “stupid people” in the White House for failing to honor “my trade agreement,” and muse about how, if he won a second term, he could strike the deal of a century with Mr. Xi.Now back in the Oval Office, President Trump is eyeing the possibility of a new trade deal with China.More than half a dozen current and former advisers and others familiar with Mr. Trump’s thinking say that, although there would be significant hurdles to reaching any agreement, the president would like to strike a wide-ranging deal with Mr. Xi, one that goes beyond just reworking the trading relationship.Mr. Trump has expressed interest in a deal that would include substantial investments and commitments from the Chinese to buy more American products (despite China’s failure to buy an additional $200 billion of goods and services under the 2020 agreement). He would like an agreement to also include issues like nuclear weapons security, which he envisions ironing out man to man with Mr. Xi, his advisers say.Mr. Trump is already following a familiar playbook of tariffs and other threats as he looks to negotiate a deal. On Feb. 1, he hit Beijing with 10 percent tariffs on all Chinese imports — what the president called an “opening salvo” — quickly resulting in retaliation from the Chinese. He has also floated the idea of revoking the permanent normal trading relations the United States extended to China more than 20 years ago.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