SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
corporate greed
Is Trump Falling Into the Trump Tariff Trap?
The Democrats are once again abdicating the jobs terrain to Trump, hoping instead that his tariff toy will blow up in his dictatorial hands. Instead of calling tariffs “insane,” Democrats should call them job-killing tariffs. And as prices rise, they can blame Trump for that as well.
Mar 13, 2025
Whether by design or instinct, candidate Donald Trump set a perfect trap for the Democrats when, in September 2024, he reacted to the John Deere and Company’s announcement that it would move a thousand jobs from the Midwest to Mexico. Trump said then:
I am just notifying John Deere right now that if you do that, we are putting a 200% tariff on everything that you want to sell into the United States.
Trump saw Deere’s announcement as the perfect opportunity to jump on Deere’s job destruction, which the company used to finance 12.2 billion in stock buybacks to enrich its investors.
The Democrats? They sent billionaire Mark Cuban out to the media to complain that the tariffs were “insane.”
But threatening tariffs did not feel insane to the Deere workers who were about to lose their jobs. Nor did they feel insane to the millions of other workers who had lost their jobs due to “free trade” deals like NAFTA.
The Democrats now have a chance to turn the tables—but, alas, they probably won’t.
The Democrats stumbled into the Trump’s tariff trap and provided many workers with yet another reason to abandon a party that had failed to say anything at all about the needless job destruction caused by overt corporate greed.
After Trump won the presidency last November, I was sure he would set more tariff traps, provoking the Democrats to reflexively react as corporate shills.
But along the way something funny happened. Trump fell into his own tariff trap, and his public support has fallen somewhat. The Democrats now have a chance to turn the tables—but, alas, they probably won’t.
Why Does Trump Love Tariffs?
Even the most ardent MAGA apologist knows that Trump has dictatorial impulses. He wants to play Brando in “The Godfather” and make you an offer you can’t refuse.
But playing Don Corleone in domestic affairs doesn’t come easily. Trump can flood the zone with executive orders, but the courts are still functioning and often enforce the law. Even a pliable Congress has rules which can get in the way of the legislative results Trump is demanding.
But there are two areas where Trump really can act unilaterally—foreign affairs and tariff policy.
As president, Trump is free to bully Ukraine, kiss up to Putin, threaten to annex Greenland, Panama, and even Canada. No one in the U.S. can really stop him. He doesn’t need the blessing of Congress unless he wants a new treaty, which he doesn’t.
Similarly, he can use Section 301 of the Trade Act of 1974, which authorizes the U.S. Trade Representative, a Trump toady, to impose tariffs in response to unfair trade practices, which are not defined.
There is no way a full-scale trade war with Canada will do anything but shatter jobs on both sides of the border, while raising prices as well.
Tariffs are a shiny new toy for Trump to play with. He can turn tariffs on and off, making entire countries jump to his tune. Each day he comes up with new reasons to justify them—fentanyl, immigrants, unfair subsidies, too much control of domestic banking (God forbid!). But these are just excuses for having fun by intimidating entire countries.
Trump can also combine his control of foreign policy with tariffs, as he is gleefully doing with Canada. What fun it is to threaten to take down the Canadian economy with tariffs while bullying them into becoming the 51st state. Clearly Trump wants to flex his dictatorial muscles, even as his real one’s sag with age.
But by playing dictator, he has abdicated the targeted use of tariffs to protect jobs. There is no way a full-scale trade war with Canada will do anything but shatter jobs on both sides of the border, while raising prices as well. Why? Because corporations like John Deere are not fleeing to Canada to find cheaper labor.
As a result, a tariff war with Canada is likely to kiss goodbye as many U.S. jobs as are protected. But Trump doesn’t seem to care because he’s all in on making Canada sweat. Damn the jobs! Damn inflation! He’s simply in love with his unilateral powers, which no one else in the world has. That’s a high that beats fentanyl.
The Trump Trap of Stagflation
Trump may not know it, but he is playing with fire. Tariffs are certain to raise U.S. prices. Why? Because when U.S. corporations see that their competition from Canada faces price increases caused by the 25 percent tariff, the companies will raise their own prices, especially in key industries with only a handful of large competitors.
A tariff war with Canada is likely to kiss goodbye as many U.S. jobs as are protected. But Trump doesn’t seem to care because he’s all in on making Canada sweat. Damn the jobs! Damn inflation! He’s simply in love with his unilateral powers...
Furthermore, by Trump turning his tariff toy on and off, he is causing economic uncertainty. That uncertainty has already had a drastic impact on the stock market.
But it will get much worse if corporations hold back on investment decisions until Trump stops fiddling with his toy.
It’s a very big deal when corporations delay investment decisions. Slower investment rollouts can lead to an economic slowdown and even a recession. And such a downturn can quickly get out of hand, because the Wall Steet derivative games, the kind of which that caused the 2008 crash, are up and running again, bigger than ever.
So, here’s the trap. Tariffs will cause inflation, forcing the Federal Reserve to increase interest rates to combat price increases. And higher interest rates will further reduce economic activity, leading to more unemployment. The Fed then will be unable to boost employment, because that requires decreasing interest rates, which are likely to further fuel inflation.
Bingo, stagflation. I wonder how Trump will feel if morphs into Jimmy Carter?
What Should the Democrats Do?
James Carville is telling the Democrats to do nothing. Play dead and let the guy implode.
But that’s a very dangerous game. Even with all the chaos Trump still has favorability ratings close to 50 percent. His supporters see him taking action, it’s why they voted for him, and they will give him time to make his plans work. Yes, there are protests, but they’re nothing like in Trump’s first term. The danger is, if the Democrats give him uncontested time and space, Trump might find a way to escape from his trap.
Instead, the Democrats should take a page from Trump and put job protection on the top of their agenda. As tariffs bite and cause job destruction, the Democrats should show up and support those laid-off workers. Instead of calling tariffs “insane,” they should call them job-killing tariffs. And as prices rise, they can blame Trump for that as well.
I wonder how Trump will feel if morphs into Jimmy Carter?
More importantly, they should go after any company that receives taxpayer money and is laying off taxpayers. They should slam stock buybacks that enrich Wall Street wealth extractors and CEOs. They should make it perfectly clear that protecting jobs from corporate greed is the number one priority of the Democratic Party.
Will they do this? Dream on.
There is little indication that the Democrats are willing to upset their Wall Street backers by interfering with private sector layoff decisions and stock buybacks. The Democrats are once again abdicating the jobs terrain to Trump, hoping instead that his tariff toy will blow up in his dictatorial hands.
Maybe it will, or maybe working people will see that the Democrats still don’t give a damn about their job security. At least Trump is trying, they may say.
Until the Democrats offer a compelling working-class vision, those living paycheck to paycheck have reasons to stick with Trump who, at the very least, has buried the free-trade mantra that working people know has destroyed so many jobs and damaged their communities.
Keep ReadingShow Less
Inflation Numbers Don't Alter Fears That Trump Has US Economy 'Barreling Toward Recession'
"Instead of trying to lower the cost of living, he's doubling down on his plans to give massive tax breaks to billionaires and giant corporations," said one Trump critic.
Mar 12, 2025
As the U.S. Department of Labor released its monthly consumer price index report on Wednesday, President Donald Trump's new tariffs for steel and aluminum imports took effect, highlighting his threat to the economy and working-class Americans.
The CPI, "a key gauge of inflation, showed that prices rose by 2.8% in February from a year earlier, driven by price relief from airfares and gas," The Washington Postreported. "That was cooler than the 3% annual gain reported for January and an unexpected signal of progress in combating high inflation."
While gasoline prices fell 1.0% and airline fares dropped 4%, the cost of food and shelter rose 0.2% and 0.3% respectively. The bird flu continued to drive up egg prices, which jumped 10.4%. The report adds, "Indexes that increased over the month include medical care, used cars and trucks, household furnishings and operations, recreation, apparel, and personal care."
The White House celebrated the inflation data, but economists were quick to point out that the numbers don't account for the latest developments in Trump's trade war: the new tariffs taking effect on Wednesday—after chaos-causing mixed messages from the president on Tuesday—and Canada and Europe's swift retaliatory measures.
"It's a classic head fake," Joe Brusuelas, chief economist at RSM, told the Post. "Going forward, tariffs are going to increase the costs of manufacturing in general and autos in particular."
Chris Low, chief economist at FHN Financial, similarly toldReuters that "trade wars are expected to raise prices in future inflation reports," though he also said the odds that the Federal Reserve can cut interest rates "again this year once the smoke from the tariff back-and-forth clears increased today nonetheless."
Trump's trade policies and other recent decisions, including letting billionaire Elon Musk gut the federal government, have elevated fears of a recession—which one economist suggested naming after the president—and even sparked speculation that he is tanking the economy on purpose.
In a Wednesday statement about the CPI report, Groundwork Collaborative chief of policy and advocacy Alex Jacquez said that "while families are still struggling to put food on the table and a roof over their head, the administration's response is that they should raise their own chickens in their backyards."
"Every economic indicator suggests that President Trump has us barreling toward a recession and stagflation. But instead of trying to lower the cost of living, he's doubling down on his plans to give massive tax breaks to billionaires and giant corporations," Jacquez added, referring to congressional Republicans' efforts to send Trump legislation that would fund tax giveaways by slashing Medicaid and the Supplemental Nutrition Assistance Program (SNAP).
In addition to Jacquez's comments, Groundwork and Data for Progress also released a poll showing that over a fifth of U.S. voters across the political spectrum are most frustrated with rising grocery costs. Another 10% are most frustrated with high bills for utilities like electricity, gas, and water. They were followed by around voters frustrated with out-of-pocket healthcare costs, rent or mortgage, or health insurance premiums.
Groundwork Collaborative warned that "Trump's threat of new tariffs risks making the housing crisis worse. By driving up the cost of construction materials, his trade war with Canada could shrink the supply of new housing, keeping overall prices high. That, in turn, forces the Federal Reserve to keep interest rates elevated, making mortgages more expensive."
The think tank also stressed that the Trump administration is "destroying affordable healthcare" by fighting to cut Medicaid and Medicare, reinstate work requirements, and limit Affordable Care Act enrollment; "raising energy bills" by freezing funds for clean energy projects while advocating for planet-wrecking fossil fuels; and "making groceries more unaffordable" by pushing SNAP cuts "instead of tackling corporate price gouging and market consolidation in the food industry."
Food & Water Watch similarly responded to the new CPI data by calling out failures to crack down on corporate price gouging—as detailed in the group's report from last week titled, The Rotten Egg Oligarchy.
"Record-high egg prices have everything to do with corporate greed," Food & Water Watch research director Amanda Starbuck said Wednesday. "While skyrocketing prices transform eggs into a luxury item, the food monopolies are seeing green. President Trump needs to get serious about lowering American food prices—starting with cracking down on the food monopolies exploiting the worsening bird flu crisis for profit."
Keep ReadingShow Less
Third Way And Its Regressive Politics Should Have No Place in the Democratic Party
The party is very much at a crossroads: It can embrace progressivism and forge a new, compelling identity or it can take cues from the donor and consultant class and embrace the very policies that precipitated our current political crisis.
Mar 05, 2025
Over the weekend, Politicoreported that, in early February, a group of Democratic “consultants, campaign staffers, elected officials, and party leaders” had convened in Virginia to chart a course forward for the party. The so-called “Comeback Retreat” was organized by the corporate centrist think tank Third Way and resulted in a summary document highlighting some of the top takeaways from the convening. In a series of bullet points, the authors of the document summarize the ways that, in their view, Democrats can reconnect with working class voters.
The Democratic Party is still reeling from its loss to President Donald Trump and the MAGA movement in November, and party leaders are correct in thinking they should adopt a new tack. However, Third Way, and its brand of tried-and-failed Republican-lite politics, should not have any say in the way the Democratic Party reforms itself as it heads into the 2026 midterm and 2028 presidential election.
The Comeback Retreat summary focuses on Democrats’ cultural disconnect with working class voters, as well as Democrats’ lack of “economic trust” with voters. The document first points to issues in each category and then offers solutions for rebuilding across both lines. Some of these issues and prescriptions are of the milquetoast variety typically generated by the consultant class. Democrats should “acknowledge [voters’] struggles and speak to real concerns,” advises one point, while elsewhere the document recommends “[improving] Democratic communication and media strategy.” No political strategist would disagree that these are both good practices for any successful campaign.
If Democrats really want to speak to voters’ concerns, they should start by addressing trends that are making life unlivable for so many Americans.
However, situated alongside these poli-sci bromides are some truly reactionary ideas. In the cultural dimension, the document encourages Democrats to “embrace masculinity” and celebrate “traditional American imagery (e.g., farms, main streets).” Apparently, Third Way and its colleagues don’t consider city dwellers to be traditionally American. On the economic side, the document encourages Democrats to stop “demonizing wealth and corporations” and to “avoid an anti-capitalist stance.” The party also, per Third Way, needs to “move away from the dominance of small-dollar donors whose preferences may not align with the broader electorate.”
If the party “moves away” from small-dollar donors, that apparently means “moving toward” millionaire, billionaire, and corporate donors.
Finally, the document devotes a fair amount of time to “reduc[ing] far-left influence and infrastructure.” Recommendations include building a pipeline of moderate Democrats to staff the ranks of the party and run for office, banning “far-left” candidate questionnaires, and “push[ing] back” against far-left staffers and groups who, according to Third Way, exert “disproportionate influence” in the party. (I’m pleased, as a member of the so-called “far-left,” to learn that we wield so much power within the party—and expect that our influence on party policy will become visible any day now.)
Taken together, a very clear image emerges of the Democratic Party envisioned by Third Way: It is pro-capitalist, pro-corporate, and preferential to big donors over small ones. It also celebrates masculinity and a traditional America while rejecting “identity-based” concerns. To put it another way, it sounds a lot like the modern GOP right before the MAGA movement took over.
This list of prescriptions—cooked up at a retreat held in the richest county in the U.S., where I seriously doubt there were working class voters present—is a recipe for disaster for the Democratic Party. In 2024, former Vice President Kamala Harris ran a campaign that was heavily focused on Republicans disaffected with Trump and aimed at presenting the Democrats as a kinder, gentler GOP, the kind that we might have today if Jeb Bush or Mitt Romney had become the standard-bearer instead of Donald Trump. This strategy backfired catastrophically. Doubling down on it would be pure political malpractice.
The Democratic Party does need to emphasize “shared values,” as the document says. These values, though, include the notion that healthcare is a human right that should be provided by the government, not a privilege. They embrace the idea that the U.S. needs to develop more clean energy sources, not drill for more oil and gas—with renewable energy creating more jobs than drilling. And Americans agree that corporations and the wealthy should be taxed more, not celebrated for their ingenuity in hoarding wealth.
If Democrats really want to speak to voters’ concerns, they should start by addressing trends that are making life unlivable for so many Americans. The affordability crunch caused by corporate greed, the climate crisis, our ever-more-expensive healthcare system, and our flailing democracy all provide the party with openings to take bold, progressive policy stands. However, these stances are completely incompatible with the regressive, triangulating politics that Third Way envisions.
The Democratic Party is very much at a crossroads: It can embrace progressivism and forge a new, compelling identity that speaks directly to voters’ concerns—especially working-class voters. Or it can take cues from the donor and consultant class and embrace the very policies that precipitated our current political crisis. The former approach requires bravery and risk-taking; the latter only asks that the party backslides into its old habits and, quite possibly, political obsolescence.
Keep ReadingShow Less
Most Popular