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Thursday, October 2, 2025

Category: Economy
April 4, 2025
Economy

Trump Urges Interest Rate Cut, But Fed Chair Powell Remains Hesitant.

PULSE POINTS:

❓What Happened: President J. Donald Trump is pushing Federal Reserve Chairman Jerome Powell to reduce interest rates. Trump argued it is an opportune time for such action following his recent announcement of reciprocal tariffs.

👥 Who’s Involved: President Donald J. Trump, Federal Reserve Chairman Jerome Powell, and various international trading partners.

📍 Where & When: The remarks were made by Trump on Truth Social after his tariff announcement.

💬 Key Quote: Trump stated, “This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates,” while Powell commented, “We are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”

⚠️ Impact: The tariff announcement led to declines in the Dow Jones and S&P 500. The tariffs have prompted some countries to reconsider their trade policies, with some indicating potential retaliation or negotiation.

IN FULL:

President Donald J. Trump is pressing the Federal Reserve to begin cutting interest rates on the heels of his imposition of a 10 percent blanket global import duty and additional reciprocal tariffs on countries with pre-existing trade barriers against American exports. In a Friday post on Truth Social, Trump criticized the Federal Reserve Bank and its chairman, Jerome Powell, for what he sees as habitual delays in reducing interest rates, suggesting now is the perfect moment for the U.S. central bank to take action.

“This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates,” Trump wrote. “He is always ‘late,’ but he could now change his image, and quickly. Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months – A BIG WIN for America.”

President Trump then reiterated the call for a rate cut, adding: “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”

The Federal Reserve has been hesitant in recent months to reduce interest rates after enacting the first rate cut since 2020 this past September. In the central bank’s view, the robust labor market and rising wages under President Trump make further rate cuts difficult, as reduced interest rates could generate renewed inflationary pressure. Responding to Trump’s call for lower rates on Friday, Powell told reporters in Virginia that the central bank will continue its cautious approach.

“Our obligation is to keep longer-term inflation expectations well anchored and to make certain that a one-time increase in the price level does not become an ongoing inflation problem,” Powell said. “We are well positioned to wait for greater clarity before considering any adjustments to our policy stance. It is too soon to say what will be the appropriate path for monetary policy.”

The Federal Reserve Chairman argued that the new tariffs may potentially generate short-term inflation in the U.S. economy, though he added that the possibility of long-term inflationary effects is less likely. Notably, tariffs can have a dual effect of creating short-term and relatively minor inflationary pressure while, in the long term, having a deflationary impact. The infamous Smoot-Hawley tariffs enacted in 1930 had a significant deflationary effect. This fed into the pre-existing deflationary cycle created by the Great Depression.

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April 4, 2025
Economy
News
World

China Puts 34% Tariff on U.S. Goods in Retaliation to Trump’s ‘Liberation Day’ Levy.

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❓What Happened: China announced a 34 percent tariff on all U.S. imports in response to President Donald J. Trump’s tariffs of the same rate on Chinese goods.

👥 Who’s Involved: President Trump, the Chinese Communist Party (CCP), and affected American companies.

📍 Where & When: China’s tariffs, announced following President Trump’s “Liberation Day” tariff unveiling, go into effect on April 10.

💬 Key Quote: The Chinese Ministry of Finance complained that the U.S. tariffs “undermine global economic development and stability.”

⚠️ Impact: Declines in stock markets, with the Dow Jones and S&P 500 experiencing losses, but manufacturing will likely be “reshored” to America over the medium to long term.

IN FULL:

China has declared a new 34 percent tariff on all imports from the United States, following President Donald J. Trump’s recent announcement of similar duties on Chinese goods. President Trump is moving to stimulate domestic manufacturing and address trade discrepancies by using tariffs to level the playing field for American businesses.

The Chinese Communist Party (CCP) condemns Trump’s tariffs, claiming they breach international trade standards and threaten global economic interests.

Further complicating trade relations, China enforced export controls on vital rare earth minerals and listed several American businesses as “unreliable entities.” Meanwhile, Trump reinstated 25 percent steel and aluminum tariffs on China in February in order to close loopholes allowing China to dump cheap metals on American markets.

In a recent address, President Trump characterized the imposition of tariffs as a long-overdue correction of an inequitable trade landscape that has persisted over several decades. He asserted that the move heralds the return to American industrial strength, with sweatshop economies and countries that erect their own tariff and non-tariff barriers against American exporters no longer having easy access to the American market.

Reacting to China’s new tariffs on April 4, Trump stated, “China played it wrong, they panicked—the one thing they cannot afford to do!” Trump added that China should have made a deal earlier, urging companies to avoid tariffs by investing in America.

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April 4, 2025
Economy

228,000 Jobs Added in March as Trump’s Economy Surges.

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❓What Happened: Employers in the U.S. increased their payroll by 228,000 in March.

👥 Who’s Involved: The U.S. Department of Labor, economists, and private sector businesses.

📍 Where & When: United States, March.

💬 Key Quote: “Great job numbers, far better than expected. It’s already working. Hang tough, we can’t lose!!!” — President Donald J. Trump.

⚠️ Impact: The labor market’s unexpected strength suggests continued economic stability, alongside increased workforce participation and rising wages.

IN FULL:

According to a report released by the Department of Labor (DoL) on Friday, in March, U.S. employers expanded their workforce by 228,000. The jobs numbers far exceeded economists’s forecasts, with most only anticipating a gain of 140,000 new jobs for the month.

“Great job numbers, far better than expected. It’s already working,” President Donald J. Trump wrote in a post on Truth Social responding to the jobs report. He added: “Hang tough, we can’t lose!!!”

While the unemployment rate ticked up slightly to 4.2 percent, this increase was expected due to labor force expansions and increased demand for workers. Notably, the private sector demonstrated significant hiring momentum, with 209,000 positions added, far surpassing the forecast of 115,000 jobs. This robust performance offsets concerns over consumer sentiment and indicates resilient economic conditions.

The workforce participation rate has continued its expansion, rising from 62.4 percent to 62.5 percent. The average workweek also extended, reflecting stronger labor demand. Average hourly earnings grew by 0.3 percent from February and rose 3.8 percent compared to the previous year, indicating healthy wage growth.

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April 3, 2025
William Upton
Economy
Politics
World

Mike Pence Hates Trump’s Tariffs. Which Means Trump Is Right.

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❓What Happened: Former Vice President Mike Pence, who is pushing the GOP to reembrace unpopular globalist economic policies, is criticizing President Donald J. Trump’s imposition of extensive global tariffs, claiming they represent the largest peacetime tax increase in U.S. history.

👥 Who’s Involved: Mike Pence, Donald Trump, and America First conservatives, including Trump’s trade advisor Peter Navarro.

📍 Where & When: Pence posted criticism to X (formerly Twitter) Wednesday evening following President Trump’s “Liberation Day” event.

💬 Key Quote: “The Trump Tariff Tax is the largest peacetime tax hike in U.S. history,” claims Pence.

⚠️ Impact: Critics like Pence claim the tariffs could cost American families over $3,500 per year, destroy jobs, and weaken conservative political standing. Additionally, the Pence-led Advancing American Freedom PAC contends the tariffs will counteract the benefits of previous tax cuts.

IN FULL:

Former Vice President Mike Pence publicly criticized President J. Donald Trump’s imposition of a 10 percent blanket global tariff and additional targeted tariffs in response to pre-existing foreign trade barriers, claiming the new import duties will result in significant economic burdens for American families. Additionally, in a Wednesday night post on X (formerly Twitter), Pence asserted the tariffs represent the most substantial peacetime tax increase in U.S. history.

“The Trump Tariff Tax is the largest peacetime tax hike in U.S. history,” Pence claimed, adding: “These Tariffs are nearly 10x the size of those imposed during the Trump-Pence Administration and will cost American families over $3,500 per year.” Attached to Pence’s X post was a screenshot of anti-Trump tariff talking points pushed by his Advancing American Freedom PAC.

Advancing American Freedom PAC’s claim that the tariffs will cost American families over $3,500 per year is based on a Goldman Sachs estimate, which pegs the total tariff revenue at around $300 billion annually. However, Pence and his Advancing American Freedom PAC appear to assume that American families will bear the bulk of the tax burden imposed by the tariffs—a fairly unlikely scenario—and not foreign companies attempting to maintain their market share in the United States.

Meanwhile, Pence’s assertion that Trump’s tariffs are “the largest peacetime tax hike in U.S. history” is on equally shaky ground. While tariffs are technically taxes, they are not entirely borne by Americans, with at least part of the import duty paid by foreign companies. Additionally, Advancing American Freedom PAC states that Trump’s tariffs are the highest imposed since the 1800s, claiming the imposed rate is higher than the Smoot-Hawley tariffs from the Great Depression.

The first claim is dubious at best, though the assertion that the Trump tariff rate is higher than those imposed under Smoot-Hawley is patently false. Pence and Advancing American Freedom PAC are playing fast and loose with what they consider the average tariff rate to make the claim. The Smoot-Hawley tariffs imposed a 59.1 percent rate on dutiable goods, though around 63 percent of foreign imports were not considered dutiable under the law. This places the average tariff rate under Smoot-Hawley at just under 20 percent.

President Trump’s tariffs include a blanket 10 percent tariff on all imports with additional target tariffs on specific countries with pre-existing trade barriers against American exports. Estimates regarding the average rate range from around 15 percent to 20 percent, though the lower side of the range appears more likely.

Image by Gage Skidmore.

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April 3, 2025
Economy
News

Support Swells for Trump’s America First Trade Strategy.

PULSE POINTS:

❓What Happened: President Donald J. Trump announced a new set of tariffs aimed at reversing globalization’s impact on the U.S. industrial sector, introducing a universal 10 percent tariff and higher tariffs on countries with their own punishing tariff and non-tariff barriers against the U.S.

👥 Who’s Involved: The policy has garnered bipartisan support, including backing from Democrat Rep. Jared Golden and numerous industry leaders.

📍 Where & When: The announcement was made in the United States following Trump’s recent speech on economic policy.

💬 Key Quote: Rep. Jared Golden praised the tariff plan as “a good start to erasing our unsustainable trade deficits.”

⚠️ Impact: The tariffs are expected to boost American manufacturing, protect jobs, and correct trade imbalances.

IN FULL:

President Donald J. Trump’s move to protect American businesses and workers from unfair trade has received widespread approval from various sectors, reflecting a significant shift in policy-making. Democratic Representative Jared Golden expressed his support, hailing the President’s tariff agenda as a necessary move to address economic challenges posed by globalization. Golden said President Trump’s tariffs align with proposals in the BUILT USA Act, underscoring the urgency of tackling trade imbalances and protecting American jobs.

The policy has also resonated with industry leaders. Zach Mottl, Chairman of the Coalition for a Prosperous America, said the Trump tariffs are “a game-changing shift that prioritizes American manufacturing, protects working-class jobs, and safeguards our economic security from adversaries like China.”

Philip K. Bell, President of the Steel Manufacturers Association, said Trump’s tariffs “have already started creating American jobs and bolstering the domestic steel industry.” He cited recent investments, including Hyundai Steel’s new plant in Louisiana, as evidence of the policy’s potential.

Scott Paul, President of the Alliance for American Manufacturing, said America’s “hardworking men and women have seen unfair trade cut the ground from beneath their feet for decades,” calling Trump’s tariffs a “necessary step.”

Analysts indicate that correcting trade disparities and strengthening domestic production could redefine America’s role in the global market. Supporters argue that the tariffs will ultimately lead to fairer trade deals and bolster the American workforce.

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April 3, 2025
Economy
UK
World

UK Mulls Retaliation Against Trump Tariffs.

PULSE POINTS:

❓What Happened: The United Kingdom is considering retaliatory tariffs after the United States, under President Donald J.  Trump, imposed a 10 percent levy on British goods—half the 20 percent levy on European Union goods.

👥 Who’s Involved: Britain’s Business Secretary Jonathan Reynolds, British Members of Parliament (MPs), and President Trump.

📍 Where & When: The tariffs are set to start this weekend, impacting goods entering the U.S. from the United Kingdom.

💬 Key Quote: “America is a friend; America is our principal ally,” Jonathan Reynolds stated, emphasizing the importance of the British-American relationship despite the tariff issue.

⚠️ Impact: The tariffs could complicate trade talks between Britain and the U.S., which were made possible by Brexit.

IN FULL:

The United Kingdom is weighing retaliatory tariffs following President Donald J. Trump’s announcement that the U.S. will impose a 10 percent trade levy on British imports. The Labour government’s Business Secretary, Jonathan Reynolds, informed Members of Parliament (MPs) that they may soon have to consider responsive tariff measures if a trade agreement with the U.S. is not secured.

British government ministers plan to unveil a list of potential products targeted for retaliatory action in the coming days. However, despite the potential that retaliatory tariffs could further escalate trade tensions, Reynolds insists that the United States remains a vital ally to the United Kingdom.

Notably, Prime Minister Sir Keir Starmer is dismissing the notion of an immediate trade conflict with the U.S. Instead, he highlighted the necessity of careful strategy to avoid harming the chances of reaching a trade deal with the American government. Starmer emphasized that Britain will “have to act and lead differently” in what he called a “new economic era.”

“It is the beginning of a new era; we need to understand that, just as we have for defense and security, we have to understand the changing world when it comes to trade and the economy,” the British Prime Minister said while speaking at a local campaign event, stating that a response to President Trump’s tariff policy is “not just a short term tactical exercise.”

President Trump announced on Wednesday that the United States will impose a blanket 10 percent tariff on all foreign imports, while a number of countries will be hit with additional import duties in response to pre-existing measures imposed against American exports. European Union members face higher tariff rates at 20 percent, with even steeper rates directed at China, Cambodia, and other countries.

Image by Simon Dawson/No 10 Downing Street.

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April 3, 2025
Economy
World

Rand Paul and Mitch McConnell Join Democrats to Legislate Against Trump’s Tariffs.

PULSE POINTS:

❓What Happened: The Senate approved a resolution to oppose President Donald J. Trump’s tariffs on Canadian imports, with the legislation aimed at repealing the emergency declaration permitting these trade levies.

👥 Who’s Involved: Senators Rand Paul (R-KY), Mitch McConnell (R-KY), Susan Collins (R-ME), and Lisa Murkowski (R-AK) joined with Senate Democrats to support the resolution, which is sponsored by Senator Tim Kaine (D-VA).

📍 Where & When: The Senate passed the measure on Wednesday following President Trump’s “Liberation Day” event at the White House Rose Garden, where he announced that substantial import duties would be imposed on foreign nations with high tariffs on U.S. exports.

💬 Key Quote: Senator Rand Paul stated, “Taxation without representation is tyranny,” characterizing tariffs as a form of taxation and arguing the Constitution forbids one person from enacting taxes.

⚠️ Impact: The resolution likely won’t advance in the GOP-controlled House.

IN FULL:

In a Senate session on Wednesday, a resolution challenging President Donald J. Trump’s tariffs on imports from Canada was advanced to the House of Representatives, with Senators approving the bill in a 51-48 vote. Introduced by Hillary Clinton’s former running mate, Senator Tim Kaine, the measure seeks to revoke the emergency declaration that sanctioned these tariffs by citing the influx of fentanyl across the border. This vote saw four Republican defections, with Sens. Rand Paul, Mitch McConnell, Susan Collins, and Lisa Murkowski joining the Democrat minority to pass the measure.

The resolution’s passage is arguably a symbolic win for Senate Democrats who have worked to derail President Trump’s America First trade agenda. However, while Democrats in the Senate were able to peel off just enough Republican votes to pass the anti-tariff resolution, it is unlikely to advance in the House, where Republican leaders will likely move to kill it before it can move to the floor for a vote.

“[W]e are here before the Senate because one person in our country wishes to raise taxes,” Sen. Paul argued in support of the Democratic resolution on the Senate floor late last night. “Well, this is contrary to everything our country was founded upon. One person is not allowed to raise taxes. The Constitution forbids it.”

“This is a tax, plain and simple,” he reiterated, adding: “Taxation without representation is tyranny.”

While tariffs can technically be categorized as a form of taxation, the import duties are not borne by American consumers for the most part. Instead, foreign companies impacted by tariffs will often absorb a significant portion of the import duty to preserve their market position—essentially opting to take a short-term revenue loss to ensure they maintain their consumer base for the long term.

It is also highly questionable to suggest that there is a lack of “representation” when an elected President with a mandate from the American people raises tariffs.

The Senate’s passage of the anti-tariff resolution came just hours after President Trump announced a 10 percent blanket tariff on all foreign imports and imposed additional, more targeted trade levies on a number of countries that have high tariffs on U.S. goods.

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April 3, 2025
Economy

Number of Americans Filing for Unemployment Benefits Drops Again, Signaling Robust Labor Market Under Trump.

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❓What Happened: The number of Americans filing initial claims for unemployment benefits decreased by 6,000 to 219,000 last week, according to the Labor Department.

👥 Who’s Involved: The Labor Department released the data in its regular unemployment claims report.

📍 Where & When: The report covered the week ending March 29, with data provided on March 22 as well.

💬 Key Quote: The department stated the decline was less than predicted applications, which analysts forecasted at 226,000 new claims.

⚠️ Impact: The decrease suggests stability in the labor market, keeping claims within a long-standing range of 200,000 to 250,000, although the total benefiting from unemployment rose to 1.9 million.

IN FULL:

The American labor market continues to defy skeptics and remain robust and stable despite market analysts predicting sizable layoffs across industries. Data released by the United States Department of Labor on Thursday shows that the number of initial claims for unemployment benefits fell last week, defying analysis forecasts that expected claims to rise. The filing for jobless benefits dipped by 6,000 to a total of 219,000 for the last week of March, coming in below forecasts, which predicted 226,000 new claims.

The four-week moving average for claims, which provides a more stable view by minimizing the volatility of weekly reports, showed a decrease of 1,250, bringing the average to 223,000. While this suggests the labor market continues to remain strong, the number of individuals receiving unemployment benefits did increase by a small amount. For the week ending March 22, the total rose by 56,000, reaching 1.9 million.

The ongoing figures reflect a labor market that, although experiencing minor fluctuations, remains largely steady.

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April 2, 2025
William Upton
Breaking
Economy

BREAKING: Trump Announces ‘Liberation Day’ Tariffs on Foreign Goods.

President Donald J. Trump has announced a series of new tariff rates at his administration’s “Liberation Day” event at the White House Rose Garden, including the imposition of a 10 percent across-the-board tariff on all foreign imports. In addition to the 10 percent blanket tariff, Trump is set to impose a series of targeted trade levies on imports from 60 nations—with the tariff rate often being set at half that which the targeted country places on American exports as an act of generosity.

“My fellow Americans, this is Liberation Day. April 2nd, 2025 will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to Make America Wealthy Again,” Trump said. “For decades, our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike. American steelworkers, autoworkers, farmers, and skilled craftsmen—we have a lot of them here today—they really suffered gravely; they watched in anguish as foreign leaders have stolen our jobs; foreign cheaters have ransacked our factories, and foreign scavengers have torn apart our once beautiful American dream.”

The America First leader went on to note: “We’re also standing up for our great farmers and ranchers who are brutalized by nations all over the world. Canada imposes a 250-300 percent tariff on many of our dairy products.”

Among the countries and regions facing additional tariffs above the 10 percent blanket rate are China, Vietnam, Taiwan, Japan, India, the European Union, South Africa, and South Korea. Notably, Chinese imports will be hit with a tariff rate of 34 percent and Indian goods will be tariffed at 26 percent.

Notably, Brexit has spared the United Kingdom, which faces only the base rate of 10 percent, from the 20 percent tariff imposed on the European Union.

Jack Montgomery contributed to this report.

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President Donald J. Trump has announced a series of new tariff rates at his administration's "Liberation Day" event at the White House Rose Garden, including the imposition of a 10 percent across-the-board tariff on all foreign imports. In addition to the 10 percent blanket tariff, Trump is set to impose a series of targeted trade levies on imports from 60 nations—with the tariff rate often being set at half that which the targeted country places on American exports as an act of generosity. show more
April 2, 2025
Economy

Tariffs Boosted Economy in Trump’s First Term.

PULSE POINTS:

❓What Happened: President Donald J. Trump has announced new tariffs aimed at promoting fair trade and supporting American workers and businesses. Research shows tariffs boosted the economy in his first term.

👥 Who’s Involved: President Donald Trump, U.S. International Trade Commission, Economic Policy Institute, U.S. steel producers, American consumers.

📍 Where & When: United States, pledge made on the 2024 campaign trail and following President Trump’s inauguration.

💬 Key Quote: “Following implementation of Sec. 232 measures in 2018—and prior to the global downturn in 2020—U.S. steel output, employment, capital investment, and financial performance all improved,” the Economic Policy Institute reports.

⚠️ Impact: The tariffs resulted in reduced imports, increased domestic production, job creation, and investments in new or upgraded steel facilities.

IN FULL:

For the first time in several decades, the U.S. is poised to redefine its trade dynamics as President Donald J. Trump introduces tariffs aimed at equalizing trade conditions for American industries and American workers. This strategic move, reminiscent of actions taken during his first administration, aims to bolster economic growth.

Research conducted on the impact of tariffs from President Trump’s first term suggests that these measures fortified the U.S. economy. A 2024 study highlighted that tariffs resulted in significant reshoring in sectors such as manufacturing and steelmaking, while a 2023 U.S. International Trade Commission report revealed that tariffs curtailed imports from China and promoted local production.

The report indicated minor downstream price effects, aligning with findings by the Economic Policy Institute, which emphasized that the tariffs did not exacerbate inflation and had a negligible impact on prices overall.

“Following implementation of Sec. 232 measures in 2018—and prior to the global downturn in 2020—U.S. steel output, employment, capital investment, and financial performance all improved,” the Economic Policy Institute stated. This period saw U.S. steel producers commit over $15.7 billion to new or upgraded facilities, generating approximately 3,200 jobs.

A further analysis conducted by the Atlantic Council points to a potential increase in domestic product purchases prompted by tariffs. The Treasury Secretary under the Biden regime, Janet Yellen, supported this stance, stating that consumer prices would not significantly rise as a result of tariffs.

A separate 2024 economic analysis projected that a global 10 percent tariff could stimulate $728 billion in economic growth, create 2.8 million jobs, and lift real household incomes by 5.7 percent.

During President Trump’s first term, tariffs bolstered the iron ore industry in Minnesota, supported thousands of new jobs, led to investments exceeding $10 billion, and decreased steel and aluminum imports by nearly one-third from 2016 to 2020.

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