“While speaking to reporters in the Oval Office on Friday, President Donald Trump claimed that “every price is down,” including those paid at the pump. Gas is now “almost $2,” he added.
Gas is not $2 a gallon. The national average is a little over $3 a gallon, about the same as it was a year ago, according to AAA. Even if you’re giving Trump wide leeway for that “almost,” this is what would have been called a gaffe in more normal political times. Remember when President George H.W. Bush didn’t know the price of a gallon of milk?
When you zoom out to Trump’s larger point, things get even more confused. Despite Trump’s claim, prices as a whole continue to rise at politically inconvenient rates. Annualized inflation was 3 percent in September, the most recent month for which data is available. Prices for food and housing are rising faster than overall inflation. Most Americans say they are spending more on groceries now than a year ago.
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This is the point where I’d normally point out that presidents don’t really exert much influence over prices. There is no “lower gas prices” button in the Oval Office. Yet while it’s true that market forces are the primary reason any price is what it is, this administration has taken a number of actions that directly and deliberately put upwards pressure on prices.”
“American goods are losing ground fast. A recent KPMG survey finds that “60% of businesses reported decreased overseas sales” in the first six months of President Donald Trump’s tariffs. For instance, U.S. liquor exports tumbled 9 percent in the second quarter of this year, with steep declines across the European Union, Canada, Britain, and Japan, which together buy about 70 percent of these exports. In another example, China—once a key customer for U.S. farm goods—has turned instead to Argentina and other suppliers, and total U.S. soybean exports are down 23 percent this year.
Smaller companies are also adversely affected. A valve and gas component maker in Napa Valley just announced that it will shut down a plant and discharge 237 employees, citing weak overseas demand linked to tariffs. Let’s not forget the upcoming Supreme Court case of V.O.S. Selections, Inc. v. Trump, where U.S. importers and resellers of wine, electronics kits, apparel, and other goods argued that the April 2 “Liberation Day” tariffs disrupted their supply chains, forced steep price increases, and threatened their viability.
American consumers, too, are paying the price. KPMG finds that nearly half of American companies have already raised prices because of tariffs; two-thirds have passed at least part of those costs on to shoppers; and nearly 40 percent have paused hiring, with a third cutting jobs.
CEOs overwhelmingly expect tariffs to weigh on business for years. Goldman Sachs estimates U.S. consumers are now footing 55 percent of the total tariff bill, while foreign exporters bear only a sliver of the costs.”
“on one hand, the president believes he’s helping American cattle farmers by imposing tariffs on imported beef—particularly beef from Brazil, which is now subject to a 50 percent tariff. (Amusingly, that tariff is officially for “national emergency” reasons, but in reality, it exists simply because Trump got mad at the current government of Brazil for prosecuting his buddy, former Brazilian President Jair Bolsonaro.)
Leave aside the question of whether American cattle farmers are actually happy about this. Let’s just think about the mechanics of what Trump is describing. He says the cattle farmers are “doing so well” because of the tariffs. Presumably, that’s because they can now raise prices. That’s what tariffs do: by making foreign goods more expensive, they benefit domestic producers, largely by allowing them to raise prices in an environment with less competition.
Trump wants cattle farmers to be able to charge higher prices. Well, OK, what he really wants is the cattle farmers to appreciate him for creating the conditions in which they can charge higher prices—but same difference.
But, wait. Trump says he also wants those same cattle farmers to “get their prices down,” because consumers are unhappy about beef prices hitting record highs.
My dude. How is this supposed to work?
I understand that Trump sees tariffs as effectively a magic wand that he can wave around to accomplish literally any policy. But even by that standard, this is a wild set of claims to make in consecutive sentences. The cattle ranchers are supposed to applaud Trump for letting them charge higher prices, and then also save him from the direct consequences of his own policies, I guess?”
“the Energy Department announced that it will offer $625 million in funding to “reinvigorate and expand America’s coal industry.” The funding includes $350 million to modernize outdated coal power plants or recommission closed ones, and up to $175 million for coal power projects in rural communities. This announcement was coupled with an Interior Department directive to open 13.1 million acres of federal land for coal mining at lower royalty rates. The Environmental Protection Agency, meanwhile, announced on Monday it would roll back several Joe Biden-era regulations on coal plants
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In May, the Energy Department issued an order to prevent a Michigan coal plant from closing in order to prevent blackouts. The order failed to keep the lights on and cost the utility $29 million over five weeks, which is expected to be, at least in part, paid for by ratepayers
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These cost hikes are likely to escalate if the federal government continues to force power plants to stay open. An August report from Grid Strategies, a power sector consulting firm, estimates that ratepayers could pay more than $3 billion per year through 2028 if the Energy Department “mandates that the large fossil power plants scheduled to retire between now and the end of 2028 remain open.” This figure could soar to $6 billion per year through 2028 if additional power plants move up their retirement dates to secure government subsidies.
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the federal government has opened up millions of dollars in funding for coal projects and passed several measures to benefit coal, including subsidizing coal production overseas. The cost of those actions won’t necessarily show up in monthly utility bills—but it will force the federal government to borrow more heavily in the future, at a time when the national debt is already unsustainably large
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Ben King, director of the Rhodium Group’s energy program, told Semafor “the price of coal would need to fall by at least half,” to “change the calculus” and make coal more attractive to investors than natural gas or renewables. Brendan Pierpont, director of electricity modeling at the think tank Energy Innovation, told the outlet, “this funding is essentially cash for clunkers, but without trading in the clunkers.”
Trump’s latest coal maneuver will benefit utilities and coal companies, but it will come at the expense of taxpayers, who will be forced to finance yet another wasteful government spending account, and ratepayers who will likely see their utility bills continue to climb.”
“Inflation, as measured by the Fed’s preferred price index, remained at 2.6 percent in July, the most recent month in which data are available. The Fed’s target is 2 percent. Moreover, in August, the consumer price index, which the Bureau of Labor Statistics uses to measure inflation, increased by 0.4 percent—the greatest monthly increase in inflation since January…
The FOMC acknowledged in its own announcement that “inflation has moved up and remains somewhat elevated” while the unemployment rate “remains low.” Increasing the fed funds rate is one of the Fed’s primary tools to combat inflationary pressures; lowering it is the opposite of what the Fed should do if it’s seriously concerned about inflation. Apparently, it’s not.”
“Aside from his norm-breaking appeal, Milei’s approach is far different than Trump’s. Milei vowed free-market reforms to overturn decades of populist Perónism—a statist ideology that infected Argentina’s politics since Juan Domingo Perón won the presidency in 1946. His authoritarian approach has dominated the country’s politics for 80 years, with Milei beating Perónist opponents.
By contrast, Trump is overturning America’s historical embrace of free markets and free trade. He sets himself up as an all-powerful charismatic leader, inserts the feds deeply into the economy, and expands the reach of police and military forces. Like Perón, he’s doing it in the name of the “working class.” The U.S. Department of State once described Perónism as a “vague concept of social justice in some ways more akin to a religion than a political movement,” which sounds eerily like MAGA.
Perónism is more avowedly leftist than Trumpism, but MAGA’s “right-wing” policies sometimes seem indistinguishable from left-wing ones. Argentina’s populist movement has been successful at one thing: turning one of the world’s wealthiest countries into an impoverished basket case. Americans think of Argentina as a benighted third-world nation. But as economist Dan Mitchell explains, it was the 10th wealthiest nation in the world when Perón took over. It was often viewed as a European nation that happened to be in Latin America.
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On an unrelated note, Milei isn’t smitten by overseas authoritarians, unlike our president. Overall, Milei is using his power to loosen the government’s grip, whereas Trump—although he occasionally reduces regulations—is centralizing government power. The two men have bad hair and unpredictable temperaments, but beyond that the similarities dissipate quickly.”
“Americans who enjoy German lagers, Belgian saisons, and Czech pilsners will get no relief from the higher tariffs that President Donald Trump has poured on their favorite brews.
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The deal locks in the 15 percent tariffs that Trump has imposed on most European goods imported into the U.S., but it also serves as a promise from the Trump administration not to target European goods with product-specific tariffs that could be announced in the coming weeks or months—including potentially huge new tariffs on pharmaceuticals, something the White House has been teasing for months. The deal also creates a pathway for the United States to reduce its tariffs on European cars to the 15 percent threshold, once the E.U. reduces some of its own tariffs on American industrial goods.”
“As President Donald Trump’s tariffs make life less affordable and predictable for Americans, they’re also threatening to make it less creative. American craft stores are struggling to keep up with ever-changing trade policies, which are making the foreign-made products they stock more expensive and difficult to access. Many foreign craft supply companies are now unable to ship to American consumers at all.”