Follow the Mango, Not the Money
Whatever happens, the global shipping lanes will still be active. Trade must continue. To use US Commerce Secretary Howard Lutnick's favorite analogy, the US can never produce its own mangoes; it will keep importing them, and shouldn't slap on tariffs that would only make them more expensive for Americans.
Lutnick isn't the only one with a financial mango analogy. The British novelist John Lanchester, who became an avid student of economics during the Global Financial Crisis, has used them to denounce contemporary financialized capitalism. He offers this example of a farmer who will soon harvest his fruit:
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New York Times
26 minutes ago
- New York Times
Trump Adds Tariff to Mexican Tomatoes
The Trump administration announced Monday that it would impose a 17 percent tariff on most imports of tomatoes from Mexico, as it withdrew from a decades-old trade agreement that had prevented those levies from snapping into place. The tariffs will add to the price of a grocery store staple for many Americans, while also funneling more business to domestic tomato growers, largely in Florida. The levies stem from a nearly 30-year-old trade case that found Mexican tomato growers to be selling their products in the United States at unfairly low prices. The U.S. tomato industry brought a case against their Mexican competitors in 1996, arguing that Mexican tomatoes dumped into the United States were injuring American growers. A U.S. trade court agreed with them, and ordered tariffs to be imposed. But on five occasions since then — in 1996, 2002, 2008, 2013 and 2019 — the United States agreed to suspend the tariffs, as long as Mexican growers would keep their prices above a certain minimum level. The United States and Mexico had been in recent talks about entering into a new agreement. 'Mexico remains one of our greatest allies, but for far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes,' Howard Lutnick, the secretary of commerce, said in a statement. 'That ends today. This rule change is in line with President Trump's trade policies and approach with Mexico.' The 17 percent duty is calculated to measure the percentage by which Mexican tomatoes have been sold in the United States at unfair prices, the Commerce Department said. The United States imported $2.8 billion of tomatoes from Mexico in 2023, according to data from the World Bank, representing more than 85 percent of American imports. The Fresh Produce Association of the Americas, which represents companies that import and sell produce and flowers, said it was 'disappointed' in the decision. It said that its members distributed vine-ripened, greenhouse-grown tomatoes from Mexico that are not replaceable by tomatoes grown in Florida and the Southeast, most of which are grown in an open field, picked green and gassed to induce a color change. 'As an industry, we are saddened that American consumers will have to pay a tomato tax, or duty, for a reduced selection of the tomatoes they prefer,' the group said. Robert Guenther, the executive vice president of the Florida Tomato Exchange, said that the previous five agreements with Mexico had failed, and that strong enforcement of U.S. trade laws was needed to protect 'the stability of our food supply chain.' 'This decision will protect hardworking American tomato growers from unfair Mexican trading practices and send a strong signal that the Trump administration is committed to ensuring fair markets for American agriculture,' he said.
The Hill
an hour ago
- The Hill
Supreme Court OKs Trump layoffs at Education Department: 5 things to know
The Supreme Court ruled Monday to allow the Trump administration to move forward with mass layoffs at the Department of Education, a move supported by the Trump-appointed leadership at the federal agency but feared by education supporters. The 6-3 ruling along ideological lines helps President Trump partially fulfill his campaign promise of dismantling the Education Department. 'While today's ruling is a significant win for students and families, it is a shame that the highest court in the land had to step in to allow President Trump to advance the reforms Americans elected him to deliver using the authorities granted to him by the U.S. Constitution,' Education Secretary Linda McMahon said in a statement. But the liberal justices and other advocates worry the emergency decision will lead the department to fail in its statutory obligations designated by Congress. Here's what to know about the move: The case returns to the appeals court While the Supreme Court lifted an injunction on the Trump layoffs by a district judge, the case will return the 9th U.S. Circuit Court of Appeals. The injunction had been placed by U.S. District Judge Myong Joun in May. Now the federal agency will have to go back to the appeals court, which will make a determination on the legality of the layoffs for the lower courts. If the appeals court rules against the administration, the president can, once again, appeal to the Supreme Court and get on its normal docket. The injunction would not go into place to stop the layoffs until a final ruling from the Supreme Court. Trump can't fully eliminate the department Trump has acknowledged he doesn't have the authority to fully dismantle the Education Department on his own. A federal Cabinet-level agency must be eliminated by Congress, and even with Republican majorities in the House and Senate, such a change is considered unlikely to move forward. In the Senate, 60 votes would be needed to kill the Education Department, which the GOP doesn't have, even if all its members support the move. 'The department's useful functions … will be preserved, fully preserved,' Trump said when he signed the executive order to eliminate the agency, referring to Pell Grants, Title I funding and programs for students with disabilities. 'They're going to be preserved in full and redistributed to various other agencies and departments.' 'But beyond these core necessities, my administration will take all lawful steps to shut down the department. We're going to shut it down and shut it down as quickly as possible,' he added. Conservative majority doesn't explain decision, but liberals dissent The 6-3 order lifting the injunction did not explain its reasoning, but that is not abnormal for an emergency ruling. However, the liberal justices made their anger with the decision well-known. 'It hands the Executive the power to repeal statutes by firing all those necessary to carry them out,' wrote Justice Sonia Sotomayor, joined by Justices Elena Kagan and Ketanji Brown Jackson. 'The majority is either willfully blind to the implications of its ruling or naive, but either way the threat to our Constitution's separation of powers is grave,' they added. SCOTUS gives another win to Trump administration The president has been on a winning streak with the nation's highest court. The Supreme Court recently ruled his administration can deport migrants to countries they do not have ties to, take away temporary legal status for hundreds of thousands of migrants and allow employees with the Department of Government Efficiency to access Social Security data, among other pro-Trump moves. The cases have infuriated the liberal justices and advocates, and calls of ideological bias have abounded. 'Nothing is more important than the success of students. America's educators and parents won't be silent as Donald Trump, with the support of the MAGA Supreme Court, strips our students, our families, and our communities of protections and funding that Congress has mandated. Gutting the Department of Education has already harmed students and communities. Today's ruling withholding relief that the lower courts ordered will only compound the harm,' National Education Association President Becky Pringle said of Monday's ruling. Trump has talked about shuttering other federal agencies The Department of Education has not been the only agency in the president's crosshairs. Trump has also called for the elimination of the Federal Emergency Management Agency (FEMA), the Voice of America and the U.S. Agency for International Development (USAID). 'Development objectives have rarely been met, instability has often worsened, and anti-American sentiment has only grown,' Secretary of State Marco Rubio said at the beginning of July when he announced USAID would 'officially cease to implement foreign assistance.' 'This era of government-sanctioned inefficiency has officially come to an end,' he added. shifted their rhetoric away from nixing FEMA in favor of reforming it.
Axios
an hour ago
- Axios
Americans aren't too keen on Musk's new party: Poll
Only a small sliver of Americans would consider joining Elon Musk's proposed new political party, a YouGov poll released Monday found. The big picture: Musk has floated the so-called "America Party" since rifting from President Trump over his signature "big, beautiful bill," but the initiative still has to clear some hurdles before it can become a reality. What they found: Nearly half of those surveyed (about 45%) think a third major political party is necessary for the U.S., according to the poll. But only 11% overall said they would consider supporting Musk's proposed third party. Although Republicans were less likely to see a need for a third political party, they and Independents were more than twice as likely as Democrats to say they would support Musk's party. Zoom in: Musk himself has lost some favorability over the past month since parting ways with the DOGE and the Trump administration. Still, the poll found Musk's strongest supporters are Republicans — including those who identify as MAGA Republicans. Democrats, on the other hand, generally have had unfavorable views of Musk since the beginning of the year, and the share who now view him favorably is below 10%.
