Trump Embraces Economic Coercion With Tariffs as His Big Stick
Trump just dinged India with a 25% tariff rate — higher than many other Asian nations, though he's leaving the door open for last-minute haggling. He cited New Delhi's own trade barriers, but rebuked Prime Minister Narendra Modi's government over lots of other things too – including its BRICS membership, and close ties with Russia. 'They can take their dead economies down together, for all I care,' he posted on social media.
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Yahoo
9 minutes ago
- Yahoo
It's Trump's economy now. The latest financial numbers offer some warning signs
WASHINGTON (AP) — For all of President Donald Trump's promises of an economic 'golden age,' a spate of weak indicators this week told a potentially worrisome story as the impacts of his policies are coming into focus. Job gains are dwindling. Inflation is ticking upward. Growth has slowed compared to last year. More than six months into his term, Trump's blitz of tariff hikes and his new tax and spending bill have remodeled America's trading, manufacturing, energy and tax systems to his own liking. He's eager to take credit for any wins that might occur and is hunting for someone else to blame if the financial situation starts to totter. But as of now, this is not the boom the Republican president promised, and his ability to blame his Democratic predecessor, Joe Biden, for any economic challenges has faded as the world economy hangs on his every word and social media post. When Friday's jobs report turned out to be decidedly bleak, Trump ignored the warnings in the data and fired the head of the agency that produces the monthly jobs figures. 'Important numbers like this must be fair and accurate, they can't be manipulated for political purposes,' Trump said on Truth Social, without offering evidence for his claim. 'The Economy is BOOMING.' It's possible that the disappointing numbers are growing pains from the rapid transformation caused by Trump and that stronger growth will return — or they may be a preview of even more disruption to come. Trump's economic plans are a political gamble Trump's aggressive use of tariffs, executive actions, spending cuts and tax code changes carries significant political risk if he is unable to deliver middle-class prosperity. The effects of his new tariffs are still several months away from rippling through the economy, right as many Trump allies in Congress will be campaigning in the midterm elections. 'Considering how early we are in his term, Trump's had an unusually big impact on the economy already,' said Alex Conant, a Republican strategist at Firehouse Strategies. 'The full inflationary impact of the tariffs won't be felt until 2026. Unfortunately for Republicans, that's also an election year.' The White House portrayed the blitz of trade frameworks leading up to Thursday's tariff announcement as proof of his negotiating prowess. The European Union, Japan, South Korea, the Philippines, Indonesia and other nations that the White House declined to name agreed that the U.S. could increase its tariffs on their goods without doing the same to American products. Trump simply set rates on other countries that lacked settlements. The costs of those tariffs — taxes paid on imports to the U.S. — will be most felt by many Americans in the form of higher prices, but to what extent remains uncertain. 'For the White House and their allies, a key part of managing the expectations and politics of the Trump economy is maintaining vigilance when it comes to public perceptions,' said Kevin Madden, a Republican strategist. Just 38% of adults approve of Trump's handling of the economy, according to a July poll by The Associated Press-NORC Center for Public Affairs. That's down from the end of Trump's first term when half of adults approved of his economic leadership. The White House paints a rosier image, seeing the economy emerging from a period of uncertainty after Trump's restructuring and repeating the economic gains seen in his first term before the pandemic struck. 'President Trump is implementing the very same policy mix of deregulation, fairer trade, and pro-growth tax cuts at an even bigger scale – as these policies take effect, the best is yet to come,' White House spokesman Kush Desai said. Recent economic reports suggest trouble ahead The economic numbers over the past week show the difficulties that Trump might face if the numbers continue on their current path: — Friday's jobs report showed that U.S. employers have shed 37,000 manufacturing jobs since Trump's tariff launch in April, undermining prior White House claims of a factory revival. — Net hiring has plummeted over the past three months with job gains of just 73,000 in July, 14,000 in June and 19,000 in May — a combined 258,000 jobs lower than previously indicated. On average last year, the economy added 168,000 jobs a month. — A Thursday inflation report showed that prices have risen 2.6% over the year that ended in June, an increase in the personal consumption expenditures price index from 2.2% in April. Prices of heavily imported items, such as appliances, furniture, and toys and games, jumped from May to June. — On Wednesday, a report on gross domestic product — the broadest measure of the U.S. economy — showed that it grew at an annual rate of less than 1.3% during the first half of the year, down sharply from 2.8% growth last year. 'The economy's just kind of slogging forward,' said Guy Berger, senior fellow at the Burning Glass Institute, which studies employment trends. 'Yes, the unemployment rate's not going up, but we're adding very few jobs. The economy's been growing very slowly. It just looks like a 'meh' economy is continuing.' Trump's Fed attacks could unleash more inflation Trump has sought to pin the blame for any economic troubles on Federal Reserve Chair Jerome Powell, saying the Fed should cut its benchmark interest rates even though doing so could generate more inflation. Trump has publicly backed two Fed governors, Christoper Waller and Michelle Bowman, for voting for rate cuts at Wednesday's meeting. But their logic is not what the president wants to hear: They were worried, in part, about a slowing job market. But this is a major economic gamble being undertaken by Trump and those pushing for lower rates under the belief that mortgages will also become more affordable as a result and boost homebuying activity. His tariff policy has changed repeatedly over the last six months, with the latest import tax numbers serving as a substitute for what the president announced in April, which provoked a stock market sell-off. It might not be a simple one-time adjustment as some Fed board members and Trump administration officials argue. Trump didn't listen to the warnings on 'universal' tariffs Of course, Trump can't say no one warned him about the possible consequences of his economic policies. Biden, then the outgoing president, did just that in a speech last December at the Brookings Institution, saying the cost of the tariffs would eventually hit American workers and businesses. 'He seems determined to impose steep, universal tariffs on all imported goods brought into this country on the mistaken belief that foreign countries will bear the cost of those tariffs rather than the American consumer,' Biden said. 'I believe this approach is a major mistake.' Josh Boak And Christopher Rugber, The Associated Press Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Los Angeles Times
10 minutes ago
- Los Angeles Times
9th Circuit keeps freeze on Southern California ICE patrols
The 9th U.S. Circuit Court of Appeals dealt a stinging blow to the Trump administration's mass deportation project Friday night in a fiery opinion upholding a lower court's block on 'roving patrols' across much of Southern California. 'If, as Defendants suggest, they are not conducting stops that lack reasonable suspicion, they can hardly claim to be irreparably harmed by an injunction aimed at preventing a subset of stops not supported by reasonable suspicion,' the panel wrote. The ruling leaves in place a temporary restraining order barring masked and heavily armed agents from snatching people off the streets of Southern California without first establishing reasonable suspicion that they are in the U.S. illegally. Under the 4th Amendment, reasonable suspicion cannot be based solely on race, ethnicity, language, location or employment, either alone or in combination, U.S. District Judge Maame Ewusi-Mensah Frimpong of Los Angeles wrote in her original order. 9th Circuit Judges Marsha S. Berzon, Jennifer Sung and Ronald M. Gould agreed. 'There is no predicate action that the individual plaintiffs would need to take, other than simply going about their lives, to potentially be subject to the challenged stops,' the opinion said. Fourth Amendment injunctions are hard to win, experts say. Plaintiffs must show not only that they were hurt, but that they are likely to be hurt again in the same way in the future. One way to meet that test in court is to show the injury is the product of a government policy. Throughout a hearing Monday, the appellate judges repeatedly probed that question, roughly doubling the administration's time to respond in an effort to get an answer. 'After the district court injunction here, the secretary of Homeland Security said, 'We are going to continue doing what we're doing' — so that's not a policy?' Berzon asked. 'The policy is to follow the 4th Amendment and to require reasonable suspicion,' said Deputy Assistant Atty. Gen. Yaakov Roth. Roth also rebuffed questions about a 3,000-arrests-per-day quota first touted by White House Deputy Chief of Staff Stephen Miller in May. In a memo to the panel on Wednesday, Roth clarified that 'no such goal' had been established. The court rejected that argument Friday, writing that 'no official statement or express policy is required' to prove one exists. 'Agents have conducted many stops in the Los Angeles area within a matter of weeks ... some repeatedly in the same location,' the opinion said, making the likelihood of future stops 'considerable.' The ruling scolded the Department of Justice for 'misreading' the restraining order it sought to block, and said it 'mischaracterized' Judge Frimpong's order. And it rejected the government's central claim that its law enforcement mandate would be 'chilled' by the district court's order. 'Defendants have failed to establish that they will be 'chilled' from their enforcement efforts at all, let alone in a manner that constitutes the 'irreparable injury' required to support a stay pending appeal,' the panel wrote. The case is still in its early phases, with hearings set for a preliminary injunction in September. But the 'shock and awe' campaign of chaotic public arrests that first gripped Southern California on June 6 has all but ceased in the seven counties covered by Frimpong's order: Los Angeles, Riverside, San Bernardino, Orange, Ventura, Santa Barbara and San Luis Obispo. 'The underlying 4th Amendment law is not complicated,' said Mohammad Tajsar of the ACLU of Southern California — part of a coalition of civil rights groups and individual attorneys challenging cases of three immigrants and two U.S. citizens swept up in chaotic arrests. 'Even a more conservative panel would have been concerned about what the government is doing.' Los Angeles Mayor Karen Bass, whose city was among a number of Southern California municipalities allowed to join the lawsuit this week, celebrated the news. 'Today is a victory for the rule of law and for the city of Los Angeles,' Bass said. 'Los Angeles will stand together against this administration's efforts to break up families who contribute every single day to the life, the culture and the economy of our great city.' The Trump administration has previously signaled its intent to fight judicial limits on its deportation efforts any way it can. It was not immediately clear where an appeal would proceed.
Entrepreneur
10 minutes ago
- Entrepreneur
Cash Rush: Top Startup Funding Highlights (July 26–Aug 1)
From AI innovations to fintech powerhouses, these startups secured big investor bets this week. Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. The startup ecosystem saw a vibrant week of funding activity, with a mix of AI-driven innovations, fintech disruptors, and specialised platforms securing capital to fuel their next growth phase. From cybersecurity and semiconductor intelligence to edtech and gaming communities, these ventures are redefining industries with technology-first approaches and strong investor backing. Here's a snapshot of the week's biggest deals. SAFE – Cybersecurity Risk Quantification SAFE offers cybersecurity risk quantification and management services, enabling organisations to measure, prioritise, and mitigate cyber threats across digital infrastructure. Formerly known as Lucideus, Safe Security safeguards Fortune 500 companies with continuous risk assessments and actionable insights. Inception: 2012 2012 Founder: Saket Modi Saket Modi Based-out: California California Funding Amount: USD 70 Million USD 70 Million Investors: Avataar Ventures, Susquehanna Asia Venture Capital, NextEquity Partners, Prosperity7 Ventures, Eight Roads, John Chambers, Sorenson Capital Navi Technologies – Tech-Led Financial Services Navi operates a digital-first financial services platform offering personal and home loans via its NBFC arm, Navi Finserv. Its offerings extend to mutual funds, health insurance, and UPI-based payment solutions, making it a comprehensive financial ecosystem for retail consumers. Inception: 2018 2018 Founders: Sachin Bansal, Ankit Agarwal Sachin Bansal, Ankit Agarwal Based-out: Bengaluru Bengaluru Funding Amount: USD 20 Million USD 20 Million Investors: PhillipCapital, NDX Finserve, Aarpee Group, Ambit Finvest, and others Metaforms – AI Agents for Market Research Metaforms develops AI-driven agents that streamline market research workflows. From automating survey programming to data processing and vendor coordination, the platform enables faster turnarounds and scalability for research agencies. Inception: 2022 2022 Founders: Akshat Tyagi, Arjun S Akshat Tyagi, Arjun S Based-out: Bengaluru Bengaluru Funding Amount: USD 9 Million USD 9 Million Investors: Peak XV Partners, Nexus Venture Partners, Together Fund STAN – Social Platform for Gaming Creators STAN is a mobile-first platform empowering gaming creators, publishers, and communities through live audio, creator clubs, monetisation tools, and brand-led campaigns. It facilitates community building and engagement in gaming culture. Inception: 2022 2022 Founders: Parth Chadha, Rahul Singh, Nauman Mulla Parth Chadha, Rahul Singh, Nauman Mulla Based-out: Bengaluru Bengaluru Funding Amount: USD 8.5 Million USD 8.5 Million Investors: Google's AI Futures Fund, Bandai Namco Entertainment, Square Enix, Reazon Holdings, Aptos Labs, General Catalyst, GFR Fund, T-Accelerate Capital, Pix Capital SixSense – AI for Semiconductor Manufacturing SixSense uses AI to analyse semiconductor production data, detect critical defects, and predict process deviations. Its platform boosts throughput, reduces waste, and shifts manufacturing from reactive inspection to proactive control. Inception: 2018 2018 Founders: Akanksha Jagwani, Avni Agarwal Akanksha Jagwani, Avni Agarwal Based-out: Singapore Singapore Funding Amount: USD 8.5 Million USD 8.5 Million Investors: Peak XV's Surge, Alpha Intelligence Capital, Febe, and others Arivihan – AI-Powered Rural Learning Arivihan delivers personalised, AI-driven learning to students in smaller towns and rural areas. Its platform includes interactive lectures, instant doubt-solving, and tailored study plans for board and NEET exam preparation. Inception: 2024 2024 Founders: Ritesh Singh Chandel, Sonu Kumar, Rushabh Kothari Ritesh Singh Chandel, Sonu Kumar, Rushabh Kothari Based-out: Bengaluru Bengaluru Funding Amount: USD 4.17 Million USD 4.17 Million Investors: Prosus, Accel, GSF Investors – AI for Sales Performance provides a SaaS platform that boosts frontline sales productivity with personalised pitches, contextual coaching, and dynamic content. It serves major enterprises across BFSI, healthcare, consumer goods, and more. Inception: 2022 2022 Founders: Hanuman Kamma, Arun Subramanian Hanuman Kamma, Arun Subramanian Based-out: Mumbai Mumbai Funding Amount: USD 3.47 Million USD 3.47 Million Investors: Equentis Angel Fund These startups highlight how innovation and strategic funding continue to drive transformative solutions across industries.
