logo
USDA's reorg rollout

USDA's reorg rollout

Politico5 days ago
Presented by
With help from Jordan Wolman
QUICK FIX
— 'What are we trying to accomplish?': USDA chief Brooke Rollins is rolling out her department's reorganization plan — but not without some concern.
— President Donald Trump secured a major trade deal with the European Union, narrowly avoiding a trade war that would hit U.S. farmers hard.
— Republicans' plans to cut SNAP spending inspired one food policy wonk to run for Congress.
IT'S MONDAY, JULY 28. Welcome to Morning Agriculture. I'm your host Grace Yarrow. Do you have any lunch plans? Send tips and thoughts on USDA's reorg to gyarrow@politico.com and follow us at @Morning_Ag for more.
Want to receive this newsletter every weekday? Subscribe to POLITICO Pro. You'll also receive daily policy news and other intelligence you need to act on the day's biggest stories.
Driving the day
WHAT'S NEXT FOR USDA REORG: The Senate Agriculture Committee will hear from USDA's No. 2 official Wednesday about the department's reorganization plan, which includes shifting much of its Washington-area staff to five hubs around the country.
The hearing — featuring Deputy Agriculture Secretary Stephen Vaden — comes after the panel's top two lawmakers expressed disappointment that Congress wasn't consulted before the announcement.
As you'll recall: On Thursday, Agriculture Secretary Brooke Rollins unveiled her plan to significantly shrink the size of the department's D.C.-based employees and close several USDA buildings in the capital region.
Committee Chair John Boozman (R-Ark.) and ranking member Amy Klobuchar (D-Minn.) both called for a hearing shortly after the plan was made public to better understand the details of Rollins' decision.
'I'm more concerned about just the efficiency,' Boozman said in a brief interview with MA last week. 'What are we trying to accomplish?'
More details: Rollins said Friday that her 'best guess' is that 50 to 70 percent of USDA workers based in the Washington area will relocate to the five new hubs.
Rollins, speaking on Fox News' 'America's Newsroom,' said USDA may fill vacant positions with people based in the areas of Salt Lake City; Fort Collins, Colorado; Indianapolis; Kansas City, Missouri; and Raleigh, North Carolina.
'Our best guess is that perhaps 50 to 70 percent of our Washington, D.C., staff will want to move — they will actually take that relocation,' she said.
Pack your bags: Rollins suggested that the USDA workers based in the capital region who don't relocate should seek jobs in the private sector.
'The economy is beginning to thrive again,' she said. 'The golden age is here. President Trump's vision was always to move people out of these government jobs, where maybe it isn't the most productive use, into the private sector.'
Rollins said in a video announcement to staff that employees will be notified of where they'll be expected to move in the 'coming months.'
Some Republican senators — and Democratic Colorado Gov. Jared Polis — have also noted that current residents of the five USDA hub cities would be willing to take the new job opportunities.
'Especially with the loss of federal jobs in other areas, we welcome the new Department of Agriculture jobs being moved to Colorado,' Polis said.
But Rob Larew, president of the National Farmers Union, warned that the reorganization would result in 'significant staff turnover' and loss of institutional knowledge of career staff — especially given that around 15,000 department employees have already left or taken buyouts this year.
You'll recall: Rollins' long-awaited reorganization plan, which was first reported by POLITICO, calls for moving more than half of USDA's 4,600 Washington-area staff 'closer to' farmers, ranchers and foresters.
More than 90 percent of USDA's nearly 100,000 employees already work outside the Beltway.
Some related reading: The Trump administration this spring sought the ability to conduct mass layoffs at more than a dozen agencies, according to a new court filing that reveals what parts of the federal government were in the crosshairs of the White House's cost-cutting efforts — and which could be again now that the Supreme Court has cleared a legal block to staff reductions across the federal government.
According to a Thursday court declaration filed in the Northern District of California, the administration sought the go-ahead to lay people off at 17 agencies and departments, including at USDA. Read the full story from our Sam Ogozalek here.
MAHA MOMENT
OUT NOW: FDA Commissioner Marty Makary defended the Trump administration's efforts to crack down on artificial food dyes, despite criticism from some Make America Healthy Again advocates that doing so doesn't address the root cause of chronic health issues.
'We want to create a different standard, and we want to have eyes on these new chemicals,' Makary said in an interview with POLITICO's Dasha Burns for 'The Conversation.' 'I think you win more bees with honey than fire.'
Don't miss the full episode with Makary here.
TRADE CORNER
A BIG DEAL: President Donald Trump announced a preliminary trade agreement with the European Union Sunday, skirting a trade war that threatened to hurt farmers and opening new market opportunities for U.S. agriculture.
The agreement locks in U.S. tariffs of 15 percent on most imports from the EU, fending off Trump's threat to raise tariffs on most EU goods to 30 percent on Aug. 1.
Details are still to come for major food and ag industries, including the alcohol industry which relies heavily on trade to meet U.S. consumer demand.
Trump promised in remarks Sunday that agriculture is among the top two winning industries of the deal.
'I think maybe cars would be the one that would go the biggest. And the second would be agriculture, the farmers,' he said.
Relief for farmers? The EU's 27 nations drew up a list of U.S. goods — including soybeans and Kentucky bourbon — that would face retaliatory tariffs of up to 30 percent. Those were due to enter force from Aug. 7 onward, absent a deal between the two leaders.
European Commission President Ursula von der Leyen stressed the significance of the $1.7 trillion transatlantic trade relationship — the world's largest — and appealed to Trump to do the biggest deal that either of them have ever done, as our colleagues write.
'We have a trade deal between the two largest economies in the world, and it's a big deal. It's a huge deal,' she said.
Worth watching: Trump also said that steel and aluminum from the EU would continue to be subject to 50 percent tariffs — which could impact input prices for farmers who rely on steel-based equipment or manufacturers that use the materials to package their goods.
2026 Watch
CAMPAIGNING ON SNAP CUTS: A food aid policy wonk is running for Congress in response to Republicans' recent cuts to the nation's largest anti-hunger program.
Salaam Bhatti has entered a crowded Democratic primary to eventually challenge GOP Rep. Rob Wittman in Virginia's 1st District, a seat that national Democrats have deemed a priority for flipping.
He's arguing that the megalaw, which President Donald Trump signed earlier this month, will 'upend' lives as it forces millions of families off the Supplemental Nutrition Assistance Program. And he thinks he's the best messenger on how to move forward in the face of those cuts.
How he got here: Bhatti's experience growing up in a low-income family and relying on school meals to get by inspired him to work in the food aid space.
While at the Virginia Poverty Law Center, he helped lead a bipartisan push to expand SNAP access to more than 25,000 Virginia households. Bhatti most recently served as SNAP director at the Food Research & Action Center, an anti-hunger nonprofit, where he tried to warn lawmakers against slashing the program in Trump's 'big, beautiful bill.'
He faces an uphill battle — given his lack of name recognition and donor base — in order to beat his primary opponents, let alone Wittman, who won his race last year by about 13 percentage points.
'The bill pushed me over the edge,' Bhatti told our Jordan Wolman in an interview. 'I've always wanted to run for office. I never wanted to force it, but the way that the working class has been neglected in Congress required a working class champion to come in and fight.'
This interview has been edited for length and clarity.
While working at the Virginia Poverty Law Center, how did you get state Republicans to support expanding SNAP eligibility?
Anti-hunger advocates, when it comes to working with Republicans, don't really have the power.
So we brought in banks, health insurance companies, county organizations, city organizations, people who can talk about the budget, and the grocery stores as well. And so we were all able to say, 'Hey, listen, we all agree hunger is bad. It impacts all of us in some different way. So let's let them know that SNAP expansion is helping working families, and it's going to bring this much money into your district, into the stores, and that's going to have a great ripple effect.'
When the elected officials heard all that ... that really helped propel them to vote for the bill.
Your experience with SNAP in particular is significant. What about the bill's changes to SNAP do you feel is so devastating?
The bill has the potential to end SNAP. There is a provision in there that shifts the cost of the benefit to the states.
When it comes to figuring out where that money is going to come from, there's only three options.
One is to increase taxes. Two is to shift money from other programs. No other agency is going to give up their already underfunded money. And third is to bring the SNAP expansion down to default levels and reduce how many people are receiving [benefits].
And if even that's not enough, then complete withdrawal from the program.
And you think that's a possibility in Virginia.
It's absolutely a possibility in Virginia. And other states, too.
Read the full Q&A exclusively for Pro subscribers here.
Transitions
The Pet Food Institute has promoted Atalie Ebersole to vice president of government relations and Dana Waters to director of international affairs.
Row Crops
— Capping off all the other horrors in wartime Gaza is the food-distribution situation that has prevailed since late May. More than 1,000 Palestinians have been killed while seeking aid in Gaza since late May, according to the United Nations. (The Atlantic)
— After ICE raided a Nebraska meatpacking plant, the company's leaders are wondering how to stay afloat with only half their workforce. (The New York Times)
— Your açaí bowl or smoothie is about to get extra pricey, unless the Trump administration and Brazilian government reach a deal to avoid a 50 percent tariff on imports from Brazil that kicks in Aug. 1. (Reuters)
— The Commerce Department on Friday announced its final decision raising anti-dumping duties on most Canadian lumber imports to 20.56 percent, to offset unfairly low prices and Canadian government subsidies, our Ari Hawkins writes.
THAT'S ALL FOR MA! Drop us a line and send us your agriculture job announcements or events: gyarrow@politico.com, marciabrown@politico.com, jwolman@politico.com, sbenson@politico.com, rdugyala@politico.com and gmott@politico.com.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

It's Trump's economy now. The latest financial numbers offer some warning signs
It's Trump's economy now. The latest financial numbers offer some warning signs

Yahoo

time11 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

Trump wants to talk business with Africa in hopes of countering China. But a US summit excluded Africa's big players
Trump wants to talk business with Africa in hopes of countering China. But a US summit excluded Africa's big players

CNN

time23 minutes ago

  • CNN

Trump wants to talk business with Africa in hopes of countering China. But a US summit excluded Africa's big players

The White House hosted an 'African leaders' summit of sorts this week. But only five countries from the continent of more than 50 nations were welcome to join. US President Donald Trump hosted a working lunch in Washington, DC, on Wednesday, bringing together the presidents of Mauritania, Guinea-Bissau, Liberia, Senegal, and Gabon for a discussion focused on 'commercial opportunities,' a White House official told CNN. 'This discussion and lunch dialog with African heads of state was arranged because President Trump believes that African countries offer incredible commercial opportunities which benefit both the American people and our African partners,' the White House official said. The multilateral lunch is scheduled for noon in the State Dining Room of the White House. Going into the meeting, Liberia said that the 'high-level summit' intends 'to deepen diplomatic ties, advance shared economic goals, and enhance security cooperation' between Washington and 'select African nations.' However, none of Africa's big players, such as its largest economies South Africa, Nigeria, Egypt and Ethiopia, were asked to attend. These nations are allied to BRICS, a group of emerging economies founded by Brazil, India, and America's adversaries, Russia and China. BRICS members face the threat of being hit with new tariffs from Trump for supporting 'anti-American' policies. During the meeting, the five African leaders heaped praise on Trump as they encouraged him to invest in their countries and develop their plentiful natural resources. The leaders joined the US president for lunch in the State Dining Room, where each leader went around the table thanking Trump for his invitation. 'I didn't know I'd be treated this nicely. This is great. We could do this all day long,' Trump said in response to the flattery. Christopher Afoke Isike, a professor of African politics and international relations at the University of Pretoria, South Africa, describes Trump's handpicked guests for his US summit as 'low-hanging fruit' in his quest to counter Chinese and Russian influence in Africa. 'On one hand, Trump is desperate for some deal to show to his base that he is getting results for America. But some of these also align with his focus on countering Chinese influence in Africa and malign Russian activity which undermines US interests on the continent,' he told CNN. 'Most of the regional powers in Africa are either in BRICS as key members or are aspiring to join as key partners,' Isike said, adding that 'these five countries (attending the US summit) do not fall into that category and as such are a kind of low-hanging fruit.' China is Africa's largest bilateral trading partner while its ally Russia has expanded its footprint on the continent, emerging as a major supplier of military hardware. This is not the first time Trump has hosted a small group of African leaders in the US, deviating from the approach of Barack Obama and Joe Biden, who hosted fuller gatherings of African heads of government while in the White House. During his first term in office — viewed by some as 'dismissive toward Africa' — Trump hosted a 'working lunch' in 2017 with nine African heads of state, whom he described as 'partners for promoting prosperity and peace on a range of economic, humanitarian, and security issues.' 'Africa has tremendous business potential,' Trump said in that meeting, which included the leaders of Nigeria, Ethiopia, and South Africa. Now in his second term, Trump has kept an eye on Africa's mineral wealth, with the US keen to challenge China's access to critical minerals in the region. However, he advocates a transactional policy that swaps charity for strategic US investment. When a peace deal brokered by Trump was signed last month by Rwanda and the Democratic Republic of Congo, which harbors large deposits of minerals critical to the production of electronics, Trump told reporters that the accord allows the US to get 'a lot of the mineral rights from the Congo.' While the signed peace agreement does not specifically forfeit any mineral rights to the US, the document includes a framework 'to expand foreign trade and investment derived from regional critical mineral supply chains,' specifically to 'link both countries, in partnership, as appropriate, with the US government and US investors.' In a statement July 1, US Secretary of State Marco Rubio hailed the end of the US Agency for International Development (USAID), which delivered US humanitarian aid overseas, saying that 'the countries that benefit the most from our generosity usually fail to reciprocate' and that future US aid and investment 'must be in furtherance of an America First foreign policy.' The Trump administration had previously canceled more than 80% of programs at USAID and has imposed 'reciprocal' tariffs on several countries, including many in Africa which Trump said had trade deficits with the US. South Africa has described the 'reciprocal' tariff which is due to take effect on August 1 as not based on 'an accurate representation of available trade data.' Trump has also banned travel for 12 mostly African and Middle Eastern nations – citing security risks – amid an aggressive clampdown on immigration by his administration. A mooted expansion of the travel restrictions would halt travel to the US for swathes of West Africa, if implemented. China, meanwhile, is softening the impact of US tariffs on Africa, announcing last month it would halt charges on imports for nearly all its African partners, except Eswatini (formerly Swaziland) which is friendly toward Taiwan — which China's ruling Communist Party claims as its own, despite never having controlled it. Although small economies, Gabon, Guinea-Bissau, Mauritania, Senegal and Liberia are rich in mineral resources including oil and gas, gold, iron ore, and rare earth elements. At the White House meeting, Gabon's President Brice Oligui Nguema underscored the mineral wealth of their countries and encouraged the US to partner with them to develop their resources. 'We are not poor countries. We are rich countries when it comes to raw materials. But we need partners to support us and help us develop those resources with win-win partnerships,' he said. Nguema also pushed Trump to purchase from Gabon rather than through companies. 'I'm sure that it's more expensive compared to when you can come and buy directly from us,' he said. Discussions at the Trump-hosted summit extended beyond commerce. Nguema addressed his country's efforts to curb piracy in the Gulf of Guinea. 'We can't do it alone. We need a reliable and strong partner that is committed and that takes real action,' he added. The West and Central African nations are also a common departure point for would-be migrants to the US. 'There may be other stakes: migratory trends from West Africa to Nicaragua and then the US,' as well as 'security, as all of those (five) countries have an opening on the Atlantic Ocean,' Ousmane Sene, who heads the Senegal-based research organization, the West African Research Center (WARC), told CNN. Last year, the New York Times reported, citing government data, that the US was seeing an increasing number of African migrants at its southern border — rising from just over 13,000 in 2022 to 58,462 in 2023. Nationals from Mauritania and Senegal were top of the list, the report said. For Dakar-based journalist and political analyst Mamadou Thior, who covered the first US–Africa Leaders' Summit hosted by Obama in 2014, the leaders of the five African nations must 'be as clever as Donald Trump' in talks with the White House. 'Trump is a businessman. So only the interests of America interest him,' Thior said. 'The USAID, which was a key partner for countries like Senegal, no longer exists. It's up to them to talk to Trump, to see what new cooperation they can put forward.' In Isike's view, 'this meeting is going to inaugurate a new US diplomatic model — one that is transactionally tied to economic reform (and) trade outcomes for the US.' Nonetheless, the five African nations 'can expect to leverage private sector partnerships, investment, infrastructural development, and security cooperation with the US,' he said. These nations are not new to high-stakes relations with global powers. They have each been courted by China, which has boosted trade volumes between them and funded infrastructure in Gabon and Senegal. When Guinea-Bissau President Umaro Sissoco Embaló met his Chinese counterpart Xi Jinping in Beijing in September, the former had kind words for the host nation. 'For Africa,' Embaló said, according to a statement by Chinese foreign ministry, 'China represents the future and is a brother.' 'Guinea-Bissau is willing to be a trustworthy friend and partner of China,' he added. Last month, Senegalese Prime Minister Ousmane Sonko was also full of praise for China, thanking it for awarding dozens 'of preparation scholarships' to his nation's athletes and coaches ahead of next year's Summer Youth Olympics. In the same statement, Sonko expressed frustration with the US decision to deny visas to 'several members of the Senegal women's national basketball team' — a leading force in African women's basketball — forcing them to cancel a training camp they had scheduled in the US. With a wider African leaders' summit mooted by the White House for later in the year, Trump has made one thing clear, according to Isike: an urgent shift 'from traditional aid to strategic commerce-driven engagement.' However, the shift is 'a high-stakes gamble that aligns with America's goal to reset its influence in Africa through investment but also to counter China and foster economically self-reliant African partners,' Isike added. 'Enabling Africa to be self-reliant is not because he (Trump) loves Africa, but because he doesn't have patience with countries that only want handouts from the US,' Isike said, adding that 'these trade deals and the meeting (this week) aligns with the US' priority to favor countries that are able to help themselves.' CNN's Alejandra Jaramillo contributed to this report.

It's Trump's economy now. The latest financial numbers offer some warning signs
It's Trump's economy now. The latest financial numbers offer some warning signs

Yahoo

time41 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.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store