Welcoming Anti-Trump Liberals to the Free Trade ClubNew Foto - Welcoming Anti-Trump Liberals to the Free Trade Club

After decades of shouting into the void that free trade is good, those of us in the "eliminate tariffs, embrace comparative advantage, and let me buy my haggis-flavored chips online without an import tax" crowd are experiencing something that hasn't happened in a while: new friends. Things have been especially lonely in recent years, as the right veered away from offering even lip service to free trade while the left coasted on the fumes of its union-driven protectionist past. But a recent poll from thePolarization Research Labshows those same lefties making a sudden and striking turn. At the start of 2024, liberals and conservatives were nearly identical in their lukewarm support for unrestricted trade—about 20 percent each in favor. Following President Donald Trump's electoral win and renewed protectionist rhetoric, liberal support has more than doubled to over 40 percent. Some analysts see this as classic negative partisanship: Democrats embracing trade mostly because Trump doesn't. Others—such as the lab's director, Sean Westwood—argue the shift is pragmatic rather than tribal: an economic reaction to market instability and broader uncertainty, not just a red vs. blue reflex. Either way, the political winds around trade are blowing harder than ever, and not always with reasoned consistency. In the same breath, Americans havetold Harvard CAPS/Harris pollstersthat they love free trade (84 percent support it!) and also that they think tariffs are necessary to protect U.S. jobs (66 percent agree). This cognitive dissonance is often rationalized by imagining tariffs as a clever bit of short-term gamesmanship—leverage to force other countries, particularly China, to lower their barriers. But Trump didn't run on a strategic, time- limited tariff plan; he ran on permanent economic nationalism. Despite the populist bluster, the same poll finds only 45 percent of Americans actually approve of his tariff agenda and just 41 percent back his inflation record. While tariffs may not look ruinous in the macro—imports amount to only about 11 percent of American GDP—their ripple effects are real, jacking up domestic prices and scrambling supply chains in ways that make the economy feel chaotic even when the top-line numbers don't scream crisis yet. This isn't the first time Americans have professed support for free trade while simultaneously endorsing protectionist measures. A2024 Cato Institute/YouGov surveyconducted while Joe Biden was still president highlighted this contradiction: While 63 percent of respondents favored increasing trade with other nations, a significant portion also supported tariffs on specific products, such as blue jeans, to boost domestic production. Yet this support waned when potential price increases were introduced into the poll questions: If the tariffs brought a $10 price hike, 66 percent were opposed. While the public may appreciate the abstract benefits of free trade, their support may be contingent on immediate economic impacts, particularly price sensitivity. Today's newfound support for free trade seems to be less about discovering Adam Smith and more about discovering that protectionism might cost you your job at the chip fab, your vacation to Cabo, or your sweet deal on Amazon Basics. AsThe Washington Postrecently reported, Republican primary voters seem increasingly wary of Trump's economic nationalism—not because they've seen the light on global economic cooperation, but because they're worried about the price tag. Meanwhile, Democrats are suddenly remembering thatglobalistwasn't always a slur. In the 19th and early 20th centuries, figures like Richard Cobden and Jane Addams championed free trade as a means to promote global harmony and social progress. But over time, this perspective shifted, with modern left-leaning factions viewing free trade with skepticism, often corresponding with the rise of labor politics in the modern era. National conservatism has pushed hostility to trade back into the conversation on the right, though Trump's degree of fondness for tariffs seems to be somewhatsui generis. This history underscores the fluidity of political alignments around trade—and the long-term importance of grounding support in consistent principles rather than transient political and economic conditions. Let's be clear: If you just decided that tariffs are bad because Trump is for them and you're against Trump, or because your 401(k) is being battered by the inflationary effects of the trade war you once half-heartedly supported, welcome! Hop in the back seat. We're glad you're here. But the reason American trade policy has strayed so dangerously off course is because too many people became pro-trade only when it became politically expedient—or emotionally satisfying—to be so. The real case for free trade is not "my enemies hate it" or "it's cheaper for me, personally" but "it makes the world richer, freer, and more peaceful." Tariffs are just taxes in sheep's clothing—dressed up as patriotism, but fundamentally designed to pick your pocket. They don't protect American workers; they protect politically favored industries from having to innovate, improve, or compete. Every time you pay more for a washing machine or a beer because of a tariff, you're experiencing crony capitalism with a red, white, and blue bow on top. Free trade, by contrast, is capitalism at its most honest: voluntary exchange across borders that leaves both parties better off. It doesn't require central planning, special favors, or a government agency to decide which industries are "strategic." It just works. And for those of us who never stopped saying so, even during the dark NAFTA-hating days of the Trump/Biden tariff continuum, the principle remains: The freer the trade, the better the world. If you're ready to get serious about dismantling the tariffs that strangle global exchange, grab a seat. (Or in the immortal words ofMean Girls: "Get in, loser. We're going shopping.") But if you're just here to score points in the tribal partisan war of the moment, don't expect us to hand over the aux cord. You can sit with us and listen—but the playlist is Milton Friedman, Frédéric Bastiat, and David Ricardo. And we're playing it on repeat. The postWelcoming Anti-Trump Liberals to the Free Trade Clubappeared first onReason.com.

Welcoming Anti-Trump Liberals to the Free Trade Club

Welcoming Anti-Trump Liberals to the Free Trade Club After decades of shouting into the void that free trade is good, those of us in the ...
Analysis-Trump tax bill poses limited benefits, higher costs for lower-income AmericansNew Foto - Analysis-Trump tax bill poses limited benefits, higher costs for lower-income Americans

By David Morgan WASHINGTON (Reuters) -U.S. PresidentDonald Trump's signature tax break on tips promises relatively few upsides for low-income Americans, who face a net loss of income under his massive tax and spending bill in Congress, analysts say. The new tax break is one of several aimed at helping working-class Americans who are a key bloc in Trump's political coalition. But experts say it would reach only a fraction of the bartenders, hairdressers and other workers who rely on tips. And those who benefit could see gains outweighed by cuts to healthcare and food assistance. "If you're thinking about things that could help low-income workers, 'no taxes on tips' would not be high up on my list," said Martha Gimbel, director of the Budget Lab at Yale University. Several independent analyses conclude that the bill now before the Senate would effectively transfer money from poor Americans to the rich. The Penn Wharton Budget Model, for example, found it would reduce after-tax income by $1,500 for families earning less than $22,000 per year, and boost income by $104,000 for those earning more than $5.2 million. The nonpartisan Congressional Budget Office reached a similar conclusion. Still, the idea of making tipped income tax-free has drawn wide support since Trump first floated it last year at a campaign stop in Nevada, a swing state with a large hospitality industry. The bill that passed the House of Representatives last month allows workers earning up to $160,000 a year to deduct tips from their gross income until 2029, though tips would remain subject to Social Security and Medicare taxes. House Republicans say the bill would provide the typical family with a $1,300 tax cut and that business tax breaks would lead to higher wages for workers. "Permanently lower tax rates and a doubled standard deduction, combined with President Trump's no tax on tips, overtime, and auto loan interest, will help workers afford the roof over their head, food for their families, and help build their financial security and wealth," House Ways and Means Committee Chairman Jason Smith, a Republican, said in a recent statement. Senate Republicans are likely to seek considerable changes to the bill, which also would make Trump's 2017 tax cuts permanent and implement other top priorities, like a crackdown on immigration. MANY WOULDN'T QUALIFY But the deduction for tip income would not help the 37% of tipped workers who already earn too little to pay any income tax, according to the Yale Budget Lab. Tipped employees account for only about 2.5% of all U.S. workers. The tax break would cost the U.S. government nearly $40 billion in lost revenue through 2028, according to the congressional Joint Tax Committee. Other benefits for working families face similar limits, including deductions on overtime pay and interest on auto loans. In each case, the greatest benefits accrue to people with higher incomes. "All of those will only benefit someone if they have enough income that they are paying a positive tax liability," said Brandon DeBot, policy director at New York University's Tax Law Center. The new tax breaks would be outweighed by higher costs from cuts to social safety-net programs and rising debt levels. At least 8.7 million lower-income Americans would lose health insurance coverage from new restrictions to Medicaid and the Affordable Care Act, according to CBO. Republicans have also added new restrictions to two bulwarks of support for low-income families: the child tax credit and the earned income tax credit. The legislation would temporarily increase the $2,000 child tax credit to $2,500 through 2028 and adjust it for inflation after that. But it contains a new requirement that parents provide Social Security numbers to qualify. That would exclude 4.5 million eligible children, according to the nonpartisan Center for Migration Studies. Families would also have to meet tighter standards to qualify for the earned income tax credit, a major anti-poverty program that reached 23 million tax filers in 2022. And analysts warn that cuts to Internal Revenue Service funding and staff would leave the tax agency less able to help lower-income people navigate the new restrictions. The legislation would add $3.8 trillion to the national debt, which now stands at $36.2 trillion, according to CBO. Ultimately, the cost would weigh most heavily on poor Americans, according to the Penn Wharton Budget Model, which estimated that low-income households in the future would see a lifetime loss of $8,500 due to a weaker safety net and higher debt service. The model found that some high-income households would see a lifetime gain of $17,800. "You're inheriting this higher debt, this higher burden. Somebody has to pay for it," said the budget model's director, Kent Smetters. (Reporting by David Morgan; editing by Andy Sullivan and Alistair Bell)

Analysis-Trump tax bill poses limited benefits, higher costs for lower-income Americans

Analysis-Trump tax bill poses limited benefits, higher costs for lower-income Americans By David Morgan WASHINGTON (Reuters) -U.S. President...
Wall Street futures slip after Trump's steel, aluminum tariff threatsNew Foto - Wall Street futures slip after Trump's steel, aluminum tariff threats

(Reuters) -U.S. stock index futures dipped on Monday after President Donald Trump announced plans to double tariffs on imported steel and aluminum, amplifying concerns about trade- and tariff-related volatility. Trump said on late Friday he planned to increase tariffs on imported steel and aluminum to 50% from 25% starting Wednesday, just hours after he accused China of violating an agreement. The increased levies would deepen Trump's global trade war and douses some enthusiasm stemming from a softening in his trade stance. Last month, a temporary relief on some levies on China and a rollback of steep tariff threats on the European Union, along with strong earnings and improving economic data helped the benchmark S&P 500 log its best monthly performance in 18 months. Shares of U.S. Steel companies rose in premarket trading, with Cleveland-Cliffs jumping 26.2%, Nucor up 14.1% and Steel Dynamics 13.4% higher. "It is really hard to keep up or predict what's going to happen on trade at the moment, and that's before we factor in the full ramifications from the court ruling last Thursday night, and then subsequent brief stay of execution for them on appeal," Jim Reid, global head of macro and thematic research at Deutsche Bank, said in a note. A federal appeals court on Thursday temporarily reinstated most of Trump's 'Liberation Day' tariffs blocked by the Court of International Trade, the day prior. "For now, it seems likely that the tariff uncertainty will linger for a long time ahead even if we're still likely past the peak aggressiveness of U.S. policy," Reid said. At 5:22 a.m. ET, Dow E-minis were down 218 points, or 0.52%, S&P 500 E-minis were down 34 points, or 0.57%. Nasdaq 100 E-minis were down 156.5 points, or 0.73% Most megacap and growth stocks were down, with Tesla leading losses after it reported lower monthly sales in Portugal, Denmark and Sweden. The stock was last down 2%. Focus would be on comments from Fed Chair Jerome Powell later in the day as he presents opening remarks before the Federal Reserve Board International Finance Division's 75th anniversary conference at 1:00 p.m. ET (1700 GMT). Federal Reserve Governor Christopher Waller said on Monday that interest rate cuts remain possible later this year even with the Trump administration's tariffs likely to push up price pressures temporarily. On the data front, a reading of S&P Global U.S. manufacturing PMI is due at 9:45 a.m. ET and an ISM Manufacturing index reading is scheduled for 10:00 a.m. ET. Ahead in the week, investors await a crucial nonfarm-payrolls report due on Friday to ascertain strength in the U.S. economy amid tariff volatility. Among other stocks, Moderna rose 4.6% after the U.S. Food and Drug Administration approved its next-generation COVID-19 vaccine for everyone aged 65 and above. Separately, RBC Capital Markets raised its year-end target for the S&P 500 index to 5,730 from 5,550, citing modestly improved U.S. economic outlook and stronger-than-expected corporate earnings. (Reporting by Kanchana Chakravarty in Bengaluru; Editing by Maju Samuel)

Wall Street futures slip after Trump's steel, aluminum tariff threats

Wall Street futures slip after Trump's steel, aluminum tariff threats (Reuters) -U.S. stock index futures dipped on Monday after Preside...
South Korea presidential hopefuls make final pitch to voters ahead of electionNew Foto - South Korea presidential hopefuls make final pitch to voters ahead of election

By Jack Kim SEOUL (Reuters) -South Korea's leading presidential hopefuls were crisscrossing the country on the final day of campaigning on Monday before converging on Seoul, vowing to revive an ailing economy and put months of turmoil over a failed martial law attempt behind them. Tuesday's election was triggered by the ouster of Yoon Suk Yeol who briefly imposed martial law in December, stunning South Koreans who had come to believe the days of using the military to intervene in the democratic process were long past. Liberal frontrunner Lee Jae-myung vowed to mend the social division that deepened in the aftermath of Yoon's martial law, but said his opponent and Yoon's People Power Party must be held accountable, branding them "insurrection sympathisers." "We are at a historic inflection point of whether we go on as a democratic republic or become a country of dictators," Lee told a campaign rally in the battleground capital. Later he said the top priority as president if elected would be to take urgent steps to address the economy, adding he would first turn his attention to the cost of living for middle- and low-income families and the struggles of small business owners. After sweeping through key swing vote regions and the stronghold of his main conservative opponent, Kim Moon-soo, Lee focused on the capital region home to the highest concentration of the country's 44.39 million voters. Kim started the final day on the southern island of Jeju before crossing the country north, calling Lee a "dangerous man" who would abuse the office of president and the parliament controlled by his Democratic Party in an unchecked manner. The conservative candidate once again apologised on Monday for Yoon's martial law and pledged to undertake political reform. The two leading candidates were scheduled to wrap up three weeks of official campaigning at midnight in Seoul, with polls set to open at 6 a.m. (2100 GMT on Monday) on Tuesday across the country. The winner, who will be certified on Wednesday, will have just a short few hours before taking office without the usual two-month transition as Yoon was removed by the Constitutional Court on April 4 for grave violation of his lawful duties. (Reporting by Jack KimEditing by Ed Davies and Saad Sayeed)

South Korea presidential hopefuls make final pitch to voters ahead of election

South Korea presidential hopefuls make final pitch to voters ahead of election By Jack Kim SEOUL (Reuters) -South Korea's leading presi...
Ukraine and Russia meet in Turkey for peace talks with few hopes for a breakthroughNew Foto - Ukraine and Russia meet in Turkey for peace talks with few hopes for a breakthrough

ISTANBUL (AP) — Delegations from Russia and Ukraine gathered in Turkey on Monday for theirsecond round of direct peace talksin just over two weeks, although expectations were low for any significant progress on endingthe three-year war. The Ukrainian delegation led by Defense Minister Rustem Umerov was in Istanbul for the meeting, Heorhii Tykhyi, spokesperson for the Ukrainian Foreign Ministry, said in a message posted on the Ukrainian Embassy WhatsApp group. The Russian delegation headed by Vladimir Medinsky, an aide to Russian leader Vladimir Putin, arrived Sunday evening, Russian state media reported. Turkish officials said the meeting would start at 1 p.m. local time, with Turkish Foreign Minister Hakan Fidan presiding over the talks and officials from the Turkish intelligence agency also present. However, Ukrainian spokesperson Tykhyi said the start would be at midday local time. It was not immediately possible to clarify the discrepancy. Recent comments by senior officials in both countries indicate theyremain far apart on the key conditionsfor stopping the war. Fierce fighting has in the meantime continued along the roughly 1,000-kilometer (620-mile) front line, and both sides have hit each other's territory with deep strikes. On Sunday, a Ukrainian drone attackdestroyed more than 40 Russian planesdeep inside Russia, Ukraine's Security Service said, while Moscow pounded Ukraine with missiles and drones. Russian air defenses downed 162 Ukrainian drones over eight Russian regions overnight, as well as over the annexed Ukrainian peninsula of Crimea, Russia's Defense Ministry said Monday. Ukrainian air defenses damaged 52 out of 80 drones launched by Russia overnight, the Ukrainian air force said. Two ballistic missiles struck a residential neighborhood in the northeastern Ukrainian city of Kharkiv on Monday morning, including one that hit near a school, the city's mayor said. One missile landed near an apartment building, while the second struck a road near the school, Kharkiv Mayor Ihor Terekhov said in a statement and published a photo of a wide crater. "Standing next to the crater, you realize how different it all could have been," Terekhov wrote. "A few more meters — and it would have hit the building. A few more minutes — and cars, buses would have been on the road." No casualties were reported. ___ Associated Press writers Suzan Frazer in Ankara, Turkey, and Hanna Arhirova in Kyiv, Ukraine, contributed to this report. ___ Follow AP's coverage of the war in Ukraine athttps://apnews.com/hub/russia-ukraine

Ukraine and Russia meet in Turkey for peace talks with few hopes for a breakthrough

Ukraine and Russia meet in Turkey for peace talks with few hopes for a breakthrough ISTANBUL (AP) — Delegations from Russia and Ukraine gath...

 

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