
The Warped Idealism of Trump's Trade Policy
Tomorrow is Donald Trump's deadline to agree to trade deals before he imposes tariffs, and he means it this time. Why are you laughing? (In fact, since saying that yesterday, he's already chickened out with Mexico, putting the 'taco' in, well, TACO.)
But the president has already written off hopes of reaching agreements with some allies. Yesterday, Trump announced that he was raising tariffs on many Brazilian goods to 50 percent across the board, as retribution for Brazil's prosecution of former President Jair Bolsonaro, a Trump ally. This morning, Trump wrote on Truth Social that Prime Minister Mark Carney's decision to recognize a Palestinian state 'will make it very hard' to strike a deal with Canada.
The president's perpetual caving can make him seem craven and opportunistic, but you can detect a different impulse in his handling of trade policy too: a warped kind of idealism. When Trump began his political career, he said he would put ' America First,' rather than using American power to enforce values overseas. Wars to fight repressive autocrats were foolish ways to burn cash and squander American lives. The promotion of human rights and democracy were soft-headed, bleeding-heart causes. Trump, a man of business, was going to look out for the bottom line without getting tangled up in high-minded crusades. Now that's exactly what he's doing: using trade as a way to make grand statements about values—his own, if not America's.
This is troubling on legal, moral, and diplomatic levels. The Constitution specifically delegates the power to levy tariffs to Congress, but legislators have delegated some of that capacity to the president. Trump has invoked the International Emergency Economic Powers Act, which allows him to impose tariffs in response to an 'unusual and extraordinary threat,' on the basis that Congress cannot act quickly enough. This use of the law is, as Conor Friedersdorf and Ilya Somin wrote in The Atlantic in May, absurd. The White House's months of vacillation on its tariff threats since make the idea of any emergency even less credible.
Understanding why Trump would be sensitive about Bolsonaro's prosecution, which stems from Bolsonaro's attempt to cling to power after losing the 2022 election, is not difficult—the parallels between the two have been often noted—but that doesn't make it a threat to the United States, much less an 'unusual and extraordinary' one. Likewise, Canadian recognition of a Palestinian state is unwelcome news for Trump's close alliance with Israel, but it poses no obvious security or economic danger to the U.S. A Congress or Supreme Court interested in limiting presidential power could seize on these statements to arrest Trump's trade war, but these are not the legislators or justices we have.
Setting aside the legal problems, Trump's statements about Brazil and Canada represent an abandonment of the realpolitik approach he once promised. Even if Carney were to back down on Palestinian statehood, or Brazil to call off Bolsonaro's prosecution, the United States wouldn't see any economic gain. Trump is purely using American economic might to achieve noneconomic goals.
Previous presidents have frequently used U.S. economic hegemony to further national goals—or, less charitably, interfered in the domestic affairs of other sovereign nations. But no one needs to accept any nihilistic false equivalences. Trump wrote in a July 9 letter to Brazilian President Luiz Inácio Lula da Silva that the case against Bolsonaro was 'an international disgrace' and (naturally) a 'Witch Hunt.' Although the U.S. has taken steps to isolate repressive governments, Trump's attempts to bail out Bolsonaro are nothing of the sort. The U.S. can't with a straight face argue that charging Bolsonaro is improper, and it can't accuse Brazil of convicting him in a kangaroo court, because no trial has yet been held.
The U.S. government has also long used its power to bully other countries into taking its side in international disputes, but the swipe at Canada is perplexing. The Trump administration remains the most stalwart ally of Israeli Prime Minister Benjamin Netanyahu (notwithstanding some recent tensions), and the U.S. government has long withheld recognition of any Palestinian state as leverage in negotiations. Even so, slapping tariffs on Canada for a symbolic decision such as this seems unlikely to dissuade Carney or do anything beyond further stoking nascent Canadian nationalism.
This is not the only way in which Trump's blunt wielding of tariffs is likely to backfire on the United States. Consumers in the U.S. will pay higher prices, and overseas, Jerusalem Demsas warned in April, 'the credibility of the nation's promises, its treaties, its agreements, and even its basic rationality has evaporated in just weeks.' But it's not just trust with foreign countries that the president has betrayed. It's the pact he made with voters. Trump promised voters an 'America First' approach. Instead, they're getting a 'Bolsonaro and Netanyahu First' government.
Here are three new stories from The Atlantic:
Virginia Giuffre's family was shocked that Trump described her as 'stolen.'
Every scientific empire comes to an end.
Hamas wants Gaza to starve.
Today's News
President Donald Trump's tariffs are set to take effect tomorrow as his administration scrambles to finalize trade deals with key partners. Mexico received a 90-day extension, while other countries, including China and Canada, remain in negotiations.
Steve Witkoff, Trump's special envoy to the Middle East, and Ambassador to Israel Mike Huckabee will visit Gaza tomorrow to inspect aid distribution as the humanitarian crisis worsens in the region.
Dispatches
Evening Read
By Katherine J. Wu
For decades, evolutionary biologists pointed to such examples to cast hybridization as hapless—'rare, very unsuccessful, and not an important evolutionary force,' Sandra Knapp, a plant taxonomist at the Natural History Museum in London, told me. But recently, researchers have begun to revise that dour view. With the right blend of genetic material, hybrids can sometimes be fertile and spawn species of their own; they can acquire new abilities that help them succeed in ways their parents never could. Which, as Knapp and her colleagues have found in a new study, appears to be the case for the world's third-most important staple crop: The 8-to-9-million-year-old lineage that begat the modern potato may have arisen from a chance encounter between a flowering plant from a group called Etuberosum and … an ancient tomato.
Tomatoes, in other words, can now justifiably be described as the mother of potatoes.
More From The Atlantic
Take a look. These photos capture moments from the 2025 World Aquatics Championships in Singapore, where more than 2,500 athletes from over 200 nations competed in events spanning six aquatic sports.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


CNBC
7 minutes ago
- CNBC
Robotaxis are becoming a reality. Who's poised to win in China and beyond
After years of testing, robotaxis are starting to become a normal part of transportation in certain parts of the U.S. and China, where a handful of companies are competing to become market leaders. In the U.S., Alphabet's Waymo has pulled ahead of its rivals and says it has more than 1,500 robotaxis on the road conducting more than 250,000 paid weekly trips in cities including San Francisco, Los Angeles, Phoenix and Austin, Texas. Tesla has just gotten started in Austin . In China, there are proibably about 2,000 robotaxis, primarily operated by a few local companies across the country's larger cities, according to Barclays estimates published last week. The British bank forecasts at least 300,000 robotaxis will be deployed in China by 2030, accounting for at least 5% of on-demand transportation in larger cities. China's capital Beijing has allowed robotaxi operators to charge fares for rides in a suburb since late 2021 . Shanghai in late July became the latest region to allow fully autonomous taxis to charge fares in parts of the city . Pony AI unique U.S.-listed Chinese startup Pony AI is so far the only robotaxi operator in the country that can charge the public for fares in parts of all four of China's largest cities: Beijing, Shanghai, Guangzhou and Shenzhen. The company hasn't disclosed how many cars it has running, but claims each car receives an average of 15 orders a day. "We believe this milestone [in Shanghai] demonstrates Pony's technological and operational readiness in [the] robotaxi business," Bank Of America analysts said in a report last week. "Pony will scale up its Robotaxi fleet size and see improving profitability, given better economies of scale and unit profitability," the analysts said. Bank of America rates the stock a buy, and gives the American depositary receipts a price target of $21, or more than 60% upside from Friday's close. Improving safety Pony AI Chief Technology Officer Tiancheng Lou said in a late July interview that his focus now is on improving safety, speeding up the ability to hail a robotaxi and cutting costs. The company has started testing its latest-generation robotaxi vehicles in Beijing, claiming to have slashed the cost of the parts needed to build its autonomous driving kit by 70% . Pony AI is set to report its next quarterly results on Aug. 12. Pony's U.S.-listed rival WeRide last Thursday said that its robotaxi revenue in the second quarter rose to a a record $6.4 million . Morgan Stanley rates WeRide a buy, but expects shares to "remain event-driven and show more volatility" subject to robotaxi developments in China and overseas. The bank does not cover "We believe progress in global development of robotaxis will expedite the pace of China's development/rollout of L4 AD/robotaxis," the Morgan Stanley analysts said, adding they do not think legacy global automakers and legislators in major economies "will risk missing out on the transition to vehicle autonomy, particularly after losing ground to China on EVs." Waymo expansion While Waymo has only just begun expanding internationally, entering the Japanese market, Chinese robotaxi operators are already pushing into Europe and the Middle East. WeRide claims it's the only company with autonomous driving permits in Saudi Arabia, China, the UAE, Singapore, France and the U.S. Outside China, WeRide said it has already started pilot operations in Riyadh with Uber Technologies . In mid-July, Chinese internet tech company Baidu reached a deal to offer its Apollo Go self-driving vehicles on the Uber ride-hailing platform, aiming for the Middle East and Asia later this year. The U.S. and mainland China, where ride-hailing app Didi acquired Uber's business, are not part of the deal. Apollo Go's pricing on Uber will likely compare to that of human drivers on Uber, Bank of America analysts said in a separate report last month. "Therefore, we think value in [the] overseas market could be multiple times higher than China, hence its profitability overseas could have much larger room." Bank of America rated Baidu a buy, with a $100 price target. Baidu is set to report results on Aug. 20. Baidu breakeven Barclays estimates that Baidu is probably already breaking even on its robotaxis in the Chinese city of Wuhan, excluding research and investment costs. Most Chinese robotaxi operators are also close to breaking even, the analysts said. "Being able to design and build cheap robotaxi models is the single largest reason why we think Chinese players are likely to reach [unit economics] breakeven (excluding R & D and other headquarters costs) by the end of 2025," the Barclays analysts said. The bank estimates each Waymo car currently costs $200,000, Baidu's Apollo RT6 costs about $37,000, newest vehicle runs at about $42,000 and WeRide slightly more. —CNBC's Michael Bloom contributed to this report.


The Hill
7 minutes ago
- The Hill
Trump trade adviser: Trump's tariff rates ‘pretty much set'
U.S. Trade Representative Jamieson Greer said in an interview set to air Sunday that President Trump's newly announced tariff rates are 'pretty much set' and the public should not expect them to come down in the near future. 'I don't, I don't think they will be in the coming days,' Greer said on CBS News's 'Face the Nation,' when asked whether he expects rates to be negotiated down in the coming days. He said many of the tariff rates announced 'are set rates pursuant to deals.' 'Some of these deals are announced, some are not, others depend on the level of the trade deficit or surplus we may have with the country,' Greer continued. 'So, these tariff rates are pretty much set.' Greer said he expects his phone to be 'blowing up' with calls from international trade leaders wanting to negotiate, but Greer suggested the latest tariff announcement will likely be where Trump lands on the issue. 'There are trade ministers who want to talk more and see how they can work in a different way with the United States, but I think that we have, we're seeing truly the contours of the President's tariff plan right now with these rates,' he continued. Trump signed an executive order that modified tariff rates for dozens of countries after he had twice delayed plans to implement 'reciprocal' tariffs on other nations. Tariff rates range from as high as 41 percent on goods from Syria to as low as 10 percent, the baseline established for all imports. The executive order states that all imports will face a 10 percent tariff. The order goes into effect Aug. 7. Some nations have negotiated separate trade agreements to lock in tariff rates. For example, Indonesia and Thailand agreed to a 19 percent tariff, South Korea and Japan negotiated deals that included a 15 percent tariff, and the United Kingdom struck a deal for a 10 percent tariff. Certain other nations that have not negotiated deals will face higher rates.
Yahoo
11 minutes ago
- Yahoo
'Big Beautiful Bill' imperils tribe's critical survival project: 'We still have homes that are not electrified'
'Big Beautiful Bill' imperils tribe's critical survival project: 'We still have homes that are not electrified' The vast majority of Americans can expect their electricity to be available when they need it — even though energy rates have risen significantly over the years, and there are emerging concerns about how new technologies could impact grid reliability. However, the One Big Beautiful Bill could uniquely threaten access to electricity for residents on the Hopi Tribe's reservation in Arizona, according to Tribal Business News, leaving tribal members vulnerable to extreme weather conditions, such as heat waves, and economic hardship as they fight to preserve their lands and cultural values. What's happening? President Donald Trump signed the Big Beautiful Bill, also known as House Resolution 1, into law July 4 after months of debate and amendments to the legislation by Congress. As expected, the final version of the bill is slashing many clean-energy tax incentives that the Hopi Tribe has relied on to expand access to electricity on the reservation, including electric credits for renewable projects that have reduced building costs by up to 30% to 50%. This could also imperil utility-scale solar projects meant to replace jobs and revenue after the 2019 closing of the Navajo Generating Station coal plant. The plant supplied others in the region with power while doing little to improve access to electricity on Hopi lands — while also releasing toxic, heat-trapping pollution into the surrounding area and atmosphere. Why is this important? According to the U.S. Department of Energy, a 2023 investigation into Tribal Electricity Access and Reliability found that lack of access to electricity on the Hopi Reservation and Trust Lands hit nearly 29%, whereas that percentage was just 1.4 for the average U.S. household. In an area where a round trip to the grocery store can take four hours, access to electricity can mean the difference between having food that's fit to eat or going without. Northeastern Arizona, where the Hopi reservation is situated, is also experiencing more frequent and intense heat waves because of a changing climate, making it all the more essential for residents to stay cool and protect themselves from the No. 1 weather-related killer. Hopi Tribal Chairman Timothy Nuvangyaoma told Tribal Business News that the passage of the Big Beautiful Bill has introduced "a lot of uncertainty" to the situation. "We're disappointed in leaders that don't look beyond their nose when it comes to those communities that rely on moving forward with this technology. We're in 2025 right now and we still have homes that are not electrified," Nuvangyaoma said. Do you think our power grid needs to be upgraded? Definitely Only in some states Not really I'm not sure Click your choice to see results and speak your mind. What is being done about this? While provisions in the Big Beautiful Bill do disincentivize many green projects that can improve access to electricity and stabilize rates — and cut the Tribal Energy Loan Guarantee Program — attorney Pilar Thomas told Tribal Business News that there's still a window of opportunity to get projects off the ground before tax incentives end. "The One Big Beautiful Bill Act is a big step backward, but I'm not quite as pessimistic as some, because most tribes are doing smaller projects," the partner at the Quarles and Brady law firm said. "... You've got to move, but I think tribes are doing mostly smaller projects for themselves, and I think those are still viable." The legislation also permanently reauthorized the New Markets Tax Credit, which has supported some tribal projects and makes it attractive for companies to build in underserved areas. For his part, Nuvangyaoma said the Hopi Tribe was "digesting" how the act could impact larger projects in development, including a 40-megawatt utility-scale solar array. Despite potential setbacks, he indicated his tribe still saw solar as a path toward achieving energy sovereignty. "I believe that there's people out there who see the impacts that tribal energy sovereignty can have, and so I am hopeful," he said. "We're always looking at what can be done in the darkest situations. We're used to that. With a little bit of light, we'll still move forward with development — we're acting as though none of our projects will be impacted until we can't do so anymore." Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet. Solve the daily Crossword