Which Party Should Be Worried About the Politics of the LA Protests?
The ultimate political fallout is still unknown. But one scholar who has drilled deep into the subject is Omar Wasow, a professor at UC Berkeley who published a paper in 2020 showing that non-violent protest — especially when met with violence from the state — shifted public opinion toward the Civil Rights Movement, while protester-initiated violence fueled a right-wing backlash.
The paper happened to come out less than a week before the murder of George Floyd and it caused a stir, with commentators across the political spectrum citing Wasow's work, andone pollster even losing his job over suggesting that violent protest could hurt Democrats' election chances.
So, will the LA protests harm Democrats' political prospects this time around?
In an interview with POLITICO Magazine, Wasow said it was too early to make predictions about the political consequences and noted that so far property damage had been relatively contained, with no loss of life. Trump, meanwhile, could face his own political risk if the state engages in 'some spectacle of excess violence,' he said.
Wasow also previewed some of his other work that has yet to be published, which includes some depressing, if not entirely surprising, conclusions about where things might go from here.
'Violence works a bit like a bat signal, both for Trump and for the anti-ICE movement,' he said. 'People who are pro-Trump get mobilized to be more pro-Trump. And people who are anti-Trump get mobilized on behalf of the anti-mass deportation movement.'
This conversation has been edited for length and clarity.
Tell me what you've found in your research about the political effects of when protests turn violent.
Looking at the Civil Rights Era from about 1960 to 1972, what I find is that in the earlier period of the Civil Rights Movement, most of the violence was state violence against protesters and the protest movements were overwhelmingly peaceful. Protesters were mostly using nonviolent tactics. That generates media coverage that emphasizes civil rights, and then ultimately voting behavior shifts in favor of the Democratic coalition, which is the pro-Civil Rights coalition in the '60s.
But in the later period of the 1960s, we see more protester-initiated violence. These are events that have historically been called urban riots. That generates media coverage that emphasizes crime, disorder, riots, and the public opinion in counties near those events shift toward more concern about crime, concern about law and order, and vote more conservatively and toward the Republican coalition, which is the law and order coalition at the time.
In contemporary rhetoric, there's one school of thought that says, 'Tactics don't matter. You're going to get painted as violent no matter what.' And I find that, at least in the 1960s, tactics really did matter, and nonviolent tactics, particularly nonviolent tactics met by state repression, moved public opinion in favor of civil rights.
Fast forwarding to the present, there's a variety of evidence from other countries that suggests it's not just violence, but more broadly what is perceived as extreme tactics that tend to cause people to disidentify with protesters and with their cause, and that leads to a lowering of support. So there's this process by which people are watching the story unfold, and they're writing themselves into or out of that story.
What do you make of the protests in Los Angeles, and the potential for public reaction?
One thing I'm still puzzling over a little is that in the 1960s, the violence was at a totally different scale. Watts in 1965 or [the Rodney King protests in] Los Angeles in 1992 even, there's thousands of recorded incidents of arson, and there were 37 people killed in Watts in 1965 — that's also often by groups like the National Guard coming in and firing lots of ammunition.
So, in some ways, five Waymos and some graffiti, it's very easy to imagine that we're just a couple of news cycles away from moving on to the next thing. That's one scenario. But I think a more likely scenario relates to some unpublished work that I've been working on.
This is about how violence works a bit like a bat signal, both for Trump and for the anti-ICE movement. People who are pro-Trump get mobilized to be more pro-Trump. And people who are anti-Trump get mobilized on behalf of the anti-mass deportation movement. One thing we're seeing is these parallel protests in San Francisco and other cities where people are now being called to action by what they're seeing in Los Angeles. And I would also expect that the counter mobilization, the pro-mass deportation movement, gets activated too. So what's happening in Los Angeles is polarizing and also mobilizing. I think we're going to see more of these anti-mass deportation protests around the country.
How does the continued backlash to the George Floyd protests and the 2020 moment in America impact this week? What historical analogues are you drawing on as you watch protests in Los Angeles?
Not to sound too technical, but what's going on in Los Angeles is what's called in social science a 'contentious event.' It's not just contentious in the sense the National Guard and LAPD are in conflict with local protesters. It's contentious in the sense that it gets read very differently by different constituencies. When I went to Fox News over the weekend, its language was, 'Riots are gripping Los Angeles.' Conversely, other headlines emphasize a military-style crackdown.
So there's evidence for either side to make a story that's consistent with their prior beliefs. And so if your frustration with the liberal media in the era of George Floyd was, 'They're telling me these events are peaceful, but I just watched the Minneapolis Police Station go up in flames,' this is more evidence of how the radical left is engaging in violence and is hypocritical when they say 'We are peaceful, but January 6 was violent.'
As people are pushed to their corners, the event can be read in a way that affirms a conservative story. And of course, from the liberal side, there's lots of evidence of excess force by the state like, 'Why are they shooting flash bangs and tear gas?' There's this clip of an officer shooting a reporter, which is one more step in any kind of authoritarian transition. In that sense, if you believe that, then militant resistance to this repressive set of policies is justified.
That's all to say, there was and still is a lot of contention in whether the Floyd protests were violent or nonviolent.
So, the way I think about this is it's not just tension on the ground, but there's narrative contention in how these different constituencies read these events and use them to affirm stories that go back to 2020, and even before.
The civil rights movement of the 1960s had real official leaders, who could make strategic choices. That doesn't exist in LA, or in many contemporary protests. Is that a fundamental hurdle facing protests today?
That's exactly right, and that's one of the core differences between the more traditional Civil Rights movement and a lot of the activism that we see today. A core challenge of any movement is how do you get a bunch of people to meet at a certain place and a certain time — that coordination problem is now vastly simplified because of the internet. The advantage of that is it radically lowers the cost of organizing. But the disadvantage is, it means you have no organizing body that can help to impose message discipline on a movement or to rein in somebody who might be behaving in a way that undermines the larger message.
We're in this transition where movements are really struggling to figure out how to adapt to that radical decentralization.
Democratic voters want politicians who will stand up to Trump. But swing voters or less engaged voters are generally put off by images like cars burning in the street. What's the tightrope walk that someone like Gov. Gavin Newsom is doing right now politically?
The classic pattern historically is that an elected official, Democrat or Republican, will condemn rioting, looting or violence, but will say 'We believe deeply in freedom of association and the First Amendment and the right to assemble.' That's such a standard refrain at this point.
But where I think there is a tightrope walk and where politicians often fail, is in their inability to articulate why it is people are so angry. And so whether it's around the Rodney King decision or to fast forward to the present, the sense that these mass deportations are harmful, if politicians can't give a pretty full-throated articulation of what's mobilizing people in the streets, then the sort of routine condemnation of violence will typically feel very hollow.
The tightrope walk for Newsom or Bass or national figures is that they're trying to hold this diverse coalition together, from an 'Abolish ICE' end of the continuum, to a more moderate, pro-law-and-order end of the continuum. And they need to speak to both of those sets of concerns in a way that feels credible and also doesn't alienate the other.
When I was walking in the neighborhood near where I work in Oakland, somebody had both a Black Lives Matter sign on their front lawn and a sign that said this house is patrolled by a private security company. That, to me, captures some of who these voters are. There's a non-trivial chunk of the Democratic base that is pro-Black equality — and wants order.
Should Democrats be worried they'll get hurt politically because of the LA protests and images of burning cars?
I think it's too early to expect there to be political consequences for this. That's not just because we're a year and a half from 2026, but also because so far, the amount of property damage is relatively contained. Nobody's been killed to my knowledge. And those are the sorts of things that tend to really raise the salience of an event like this. So while it certainly has become national news and is almost certainly polarizing the electorate, the only way this will matter in the election is if it keeps happening.
The other scenario is there's some risk for Trump. If there's an incident where the state is engaging in some spectacle of excess violence, that also could move the median voter into being more critical of Trump's policies.
Since the 1960s, it seems like liberals have believed mass mobilization leads naturally to political change, whereas conservatives have been less interested in developing mass movements — conservative protests, when they do occur, are usually smaller in scale. What do you make of that continued distinction?
Fundamentally, I agree with you. It is worth noting that the Tea Party is an important right-of- center mobilization. It's also probably worth thinking of Trumpism and Make America Great Again as not just conservative, but as reactionary. MAGA is a nostalgic motto, 'We have to return to some glorious past.' And much of what Trump has done in terms of policy is also about turning the clock back on various policies.
Usually, the right tends to be almost by definition for preserving the status quo. And so you do have movements like the pro-life movement that had both national protests and mobilizations against abortion facilities. But on the whole, if you're looking to preserve the status quo, then that doesn't lend itself to taking to the streets as much. But in some sense, Trumpism is actually not status quo preserving, and it's more about trying to return to policies of years or decades past. His rallies also serve a little bit as a place where that kind of mobilizing energy manifests.
In general, though, there's much more of that on the left than the right. Going back to the Civil Rights movement and then the long echo of feminist and disability rights and gay rights movements that follow, there's just a tradition on the left of these movements that seek change.
If you had advice for people on the left or right engaged in protest, what would it be?
What my and other research suggests is that a lot of how protests are effective is in terms of making an issue salient in the news. By making it salient in the news, they make it top of mind for the public. To give two examples, the Tea Party helped bring debt to the forefront of national debate. And then Occupy Wall Street helped bring inequality to the forefront of national conversation. By having message discipline and trying to focus the media on their concerns, a protest movement can influence what's top of mind for the public. The other dimension of that, though, is whether that coverage is positive or negative.
Part of where violence can potentially harm a movement is you make your issue salient, but the coverage is quite negative toward the movement. Mass deportations are more salient in the news right now, but if the coverage is quite negative toward a movement, that can make it salient and move people away from your side of the issue. So there's this balancing act of trying to draw media attention, which often requires drama and conflict — but to do it in a way that ideally produces sympathetic coverage so that you're growing your coalition.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 minutes ago
- Yahoo
Trump tariffs live updates: India hit with 50% tariffs as Trump's sweeping trade measures roll out
President Trump on Wednesday signed an executive order imposing an additional 25% tariff on India over its purchases of Russian oil. The new tariff, which will come into effect in 21 days, is set to "stack" on top of an existing country-specific tariff of 25%. In doing so, Trump is set to make good on a threat for higher tariffs on India, as he has accused the country of effectively financing the Russian war in Ukraine. "They're fueling the war machine," he charged in a CNBC interview. India's first 25% levy takes effect Thursday, part of scores of new duties that will see importers paying between 10% to 50% as they bring in goods from nearly 200 countries around the globe. Outside of India, Switzerland is the developed nation whose goods face a whopping increase: up to 39%. You can see the new rates Trump is set to levy in the graphic below: Trump also said this week that he would soon announce tariffs on semiconductor and pharmaceutical imports, as he prepares to add more sectoral duties to his mix of tariffs. He said duties on pharma could eventually balloon as high as 250%. In the past several days, Trump has unleashed a flurry of deals and trade moves leading up to his self-imposed deadline: Trump granted Mexico, the US's largest trading partner, a 90-day reprieve on higher tariffs. Trump hiked tariffs on Canadian imports to 35%, though goods contained in the US-Mexico-Canada agreement are exempt, keeping this hike's impact limited so far. The US agreed to a trade deal with South Korea. The agreement includes a 15% tariff rate on imports from the country, while the US will not be charged a tariff on its exports. Trump imposed 50% tariffs on semi-finished copper products starting Aug. 1. The president signed an order to end the de minimis exemption on low-value imports under $800, thereby applying tariffs from Aug. 29. Trump signed another order to impose a total of 50% tariffs on many goods from Brazil. However, it exempts key US imports like orange juice and aircraft parts that benefit Embraer (ERJ). The US and EU agreed to a trade deal that imposes 15% tariffs on EU goods. The nations are still working on finalizing many terms of the deal. Read more: What Trump's tariffs mean for the economy and your wallet Here are the latest updates as the policy reverberates around the world. Trump hits India with additional 25% tariff over Russia oil buys President Trump has hit India with an additional 25% tariff due to India's purchase of Russian oil. The US president threatened India with higher tariffs earlier this week, which India's Prime Minister Narendra Modi called "unjustified," also calling out the US for its double standard over Russia. In an interview with CNBC on Tuesday, Trump said that India was helping to fuel the war machine. 'They're fueling the war machine. And if they're going to do that, then I'm not going to be happy,' Trump said. In the early days of trade negotiations, relations between the US and India appeared more friendly, with both sides saying they would reach a deal within days. However, over recent months ,things seem to have turned sour as neither side can agree on some of the finer details within the deal, which concern dairy and agricultural products. As a result, a trade war seems to have developed between the two sides, and now with this additional 25% tariff gift from Trump to Modi, the two seem further away from reaching an agreement than ever before. Modi's rival blasts 'bully' Trump as public opinion hardens Rahul Gandhi, Narendra Modi's most recognizable political rival, has come out to call President Trump a "bully" for his negotiation tactics. Bloomberg reports: Read more here. Trump order lowering tariffs on EU autos still days away: source European automakers will have to hold on a little while longer before President Trump lowers auto tariffs as EU-US negotiations continue. Reuters reports: Read more here. Alcohol groups say tariffs put $2B in sales and 25,000 jobs at risk In a letter to President Trump, a group comprising of 57 alcohol industry firms have said that Trump's tariffs of 15% on EU goods could reduce the value of alcohol sales by almost $2B and put 25,000 jobs at risk. Reuters reports: Read more here. Carney says he'll look at opportunities to remove tariffs on US Canadian Prime Minister Mark Carney said that he will look to assess ways in which he can remove some counter-tariffs against the US. Carney's statement seems at odds with his earlier commitments to fight back against President Trump's trade war. Bloomberg News reports: Read more here. Trump says Japan to import Ford's huge F-150 pickup trucks President Trump said that Japan has agreed to accept imports of Ford's F-150 pick up trucks. This latest news is seen as a sign that the two sides may not be on the same page when it comes to their understanding of the trade agreement reached last month. Bloomberg News reports: Read more here. US investments under trade deal will be determined by benefits for Tokyo: Japan Reuters reports: Read more here. Honda Q1 operating profit halves on tariffs Shares in Honda Motor (HMC) rose 2% premarket on Wednesday after the automaker reported a 50% drop in first-quarter operating profit. A stronger yen and the impact of President Trump's tariffs took their toll, but the company raised its full-year forecast. Reuters reports: Read more here. China draws red lines on US chip tracking with Nvidia meeting China is pushing back against the US over chips despite their overall trade truce. Last week, Beijing summoned Nvidia (NVDA) staff over security concerns with H20 chips, signaling opposition to the US plans to track advanced semiconductors. Analysts view China's latest move as a warning that it will not allow the US to dominate the chip sector. Bloomberg News reports: Read more here. Trump says he's readying more tariffs on Russian energy buyers Bloomberg News reports: Read more here. Canada to help lumber industry cope with US tariffs: Carney Prime Minister Mark Carney has announced that Canada will provide funds to help the lumber industry prepare for tariffs. Reuters reports: Read more here. Starbucks under pressure again as Brazilian tariffs hike coffee costs Starbucks (SBUX) may soon hike prices on its pumpkin spice lattes and bottled Frappuccinos as it faces cost pressure from the 50% tariff on Brazilian coffee imports, which takes effect on Aug. 6. Yahoo Finance's Francisco Velasquez reports: Read more here. EU continues to press for tariff exemption on wine, spirits as part of US deal The EU is pushing for its wine and spirit exports to be exempt from US tariffs, while both sides work towards refining the deal they agreed last month. The WSJ reports: Read more here. Countries push for last-minute deals as Thursday tariff deadline looms Global importers are bracing for President Trump's next tariff deadline on Thursday morning, when the president's tiered approach to tariffs is expected to take effect. Yet some of the details around trade agreements remain fuzzy. Yahoo Finance's Ben Werschkul reports: Read more here. Trump's copper tariffs apply to $15B of products so far President Trump's copper (HG=F) tariffs are due to hit imports valued at more than $15B in 2024, highlighting the potential inflationary impact on American manufacturers. Trump's unveiling of 50% import duties rattled the global copper market last week, because the US president provided a surprise exemption to key forms of wiring metal. But it still leaves significant trade volumes subject to tariffs. Bloomberg News reports: Read more here. Trump threatens EU with increased tariffs if it doesn't meet investment pledge President Trump threatened to hike tariffs on the European Union back to 35% if the bloc fails to live up to a pledge to invest some $600 billion in the US. "A couple of countries came [and said], 'How come the EU is paying less than us?' And I said well, because they gave me $600 billion," Trump said during a CNBC interview. "And that's a gift, that's not like, you know, a loan," he said, claiming that the terms allow the US to direct where the EU invests. Trump says pharma duties could go to 250% President Trump said he would announce tariffs on semiconductor and pharmaceutical imports "within the next week or so." "We'll be putting a initially small tariff on pharmaceuticals, but in one year — one and a half years, maximum — it's going to go to 150%. And then it's going to go to 250%, because we want pharmaceuticals made in our country," Trump said during a CNBC interview. He said semiconductor and chip tariffs would be in a "different category." US tariff on EU goods set at flat 15% The EU said on Tuesday that European Union goods entering the US face a flat 15% tariff, including cars and car parts. The rate includes the Most Favoured Nation (MFN) tariff and won't exceed 15% even if the US raises tariffs on items like semiconductors and medicines. The EU said it still expects turbulence in its trade dealings with the US. Reuters reports: Read more here. India hits back at Trump's tariff threat India has called out President Trump after he threatened to "substantially raise" tariffs on Indian exports over its Russian oil purchases, slamming the move as unjustified. New Delhi said it would take all necessary steps to protect its economic interests. Bloomberg News reports: Read more here. Nvidia partner Hon Hai's July sales growth weakened by tariffs Nvidia's (NVDA) main server assembly partner Hon Hai Precision ( reported a sales slowdown for July due to US tariffs. Bloomberg News reports: Read more here. President Trump has hit India with an additional 25% tariff due to India's purchase of Russian oil. The US president threatened India with higher tariffs earlier this week, which India's Prime Minister Narendra Modi called "unjustified," also calling out the US for its double standard over Russia. In an interview with CNBC on Tuesday, Trump said that India was helping to fuel the war machine. 'They're fueling the war machine. And if they're going to do that, then I'm not going to be happy,' Trump said. In the early days of trade negotiations, relations between the US and India appeared more friendly, with both sides saying they would reach a deal within days. However, over recent months ,things seem to have turned sour as neither side can agree on some of the finer details within the deal, which concern dairy and agricultural products. As a result, a trade war seems to have developed between the two sides, and now with this additional 25% tariff gift from Trump to Modi, the two seem further away from reaching an agreement than ever before. Modi's rival blasts 'bully' Trump as public opinion hardens Rahul Gandhi, Narendra Modi's most recognizable political rival, has come out to call President Trump a "bully" for his negotiation tactics. Bloomberg reports: Read more here. Rahul Gandhi, Narendra Modi's most recognizable political rival, has come out to call President Trump a "bully" for his negotiation tactics. Bloomberg reports: Read more here. Trump order lowering tariffs on EU autos still days away: source European automakers will have to hold on a little while longer before President Trump lowers auto tariffs as EU-US negotiations continue. Reuters reports: Read more here. European automakers will have to hold on a little while longer before President Trump lowers auto tariffs as EU-US negotiations continue. Reuters reports: Read more here. Alcohol groups say tariffs put $2B in sales and 25,000 jobs at risk In a letter to President Trump, a group comprising of 57 alcohol industry firms have said that Trump's tariffs of 15% on EU goods could reduce the value of alcohol sales by almost $2B and put 25,000 jobs at risk. Reuters reports: Read more here. In a letter to President Trump, a group comprising of 57 alcohol industry firms have said that Trump's tariffs of 15% on EU goods could reduce the value of alcohol sales by almost $2B and put 25,000 jobs at risk. Reuters reports: Read more here. Carney says he'll look at opportunities to remove tariffs on US Canadian Prime Minister Mark Carney said that he will look to assess ways in which he can remove some counter-tariffs against the US. Carney's statement seems at odds with his earlier commitments to fight back against President Trump's trade war. Bloomberg News reports: Read more here. Canadian Prime Minister Mark Carney said that he will look to assess ways in which he can remove some counter-tariffs against the US. Carney's statement seems at odds with his earlier commitments to fight back against President Trump's trade war. Bloomberg News reports: Read more here. Trump says Japan to import Ford's huge F-150 pickup trucks President Trump said that Japan has agreed to accept imports of Ford's F-150 pick up trucks. This latest news is seen as a sign that the two sides may not be on the same page when it comes to their understanding of the trade agreement reached last month. Bloomberg News reports: Read more here. President Trump said that Japan has agreed to accept imports of Ford's F-150 pick up trucks. This latest news is seen as a sign that the two sides may not be on the same page when it comes to their understanding of the trade agreement reached last month. Bloomberg News reports: Read more here. US investments under trade deal will be determined by benefits for Tokyo: Japan Reuters reports: Read more here. Reuters reports: Read more here. Honda Q1 operating profit halves on tariffs Shares in Honda Motor (HMC) rose 2% premarket on Wednesday after the automaker reported a 50% drop in first-quarter operating profit. A stronger yen and the impact of President Trump's tariffs took their toll, but the company raised its full-year forecast. Reuters reports: Read more here. Shares in Honda Motor (HMC) rose 2% premarket on Wednesday after the automaker reported a 50% drop in first-quarter operating profit. A stronger yen and the impact of President Trump's tariffs took their toll, but the company raised its full-year forecast. Reuters reports: Read more here. China draws red lines on US chip tracking with Nvidia meeting China is pushing back against the US over chips despite their overall trade truce. Last week, Beijing summoned Nvidia (NVDA) staff over security concerns with H20 chips, signaling opposition to the US plans to track advanced semiconductors. Analysts view China's latest move as a warning that it will not allow the US to dominate the chip sector. Bloomberg News reports: Read more here. China is pushing back against the US over chips despite their overall trade truce. Last week, Beijing summoned Nvidia (NVDA) staff over security concerns with H20 chips, signaling opposition to the US plans to track advanced semiconductors. Analysts view China's latest move as a warning that it will not allow the US to dominate the chip sector. Bloomberg News reports: Read more here. Trump says he's readying more tariffs on Russian energy buyers Bloomberg News reports: Read more here. Bloomberg News reports: Read more here. Canada to help lumber industry cope with US tariffs: Carney Prime Minister Mark Carney has announced that Canada will provide funds to help the lumber industry prepare for tariffs. Reuters reports: Read more here. Prime Minister Mark Carney has announced that Canada will provide funds to help the lumber industry prepare for tariffs. Reuters reports: Read more here. Starbucks under pressure again as Brazilian tariffs hike coffee costs Starbucks (SBUX) may soon hike prices on its pumpkin spice lattes and bottled Frappuccinos as it faces cost pressure from the 50% tariff on Brazilian coffee imports, which takes effect on Aug. 6. Yahoo Finance's Francisco Velasquez reports: Read more here. Starbucks (SBUX) may soon hike prices on its pumpkin spice lattes and bottled Frappuccinos as it faces cost pressure from the 50% tariff on Brazilian coffee imports, which takes effect on Aug. 6. Yahoo Finance's Francisco Velasquez reports: Read more here. EU continues to press for tariff exemption on wine, spirits as part of US deal The EU is pushing for its wine and spirit exports to be exempt from US tariffs, while both sides work towards refining the deal they agreed last month. The WSJ reports: Read more here. The EU is pushing for its wine and spirit exports to be exempt from US tariffs, while both sides work towards refining the deal they agreed last month. The WSJ reports: Read more here. Countries push for last-minute deals as Thursday tariff deadline looms Global importers are bracing for President Trump's next tariff deadline on Thursday morning, when the president's tiered approach to tariffs is expected to take effect. Yet some of the details around trade agreements remain fuzzy. Yahoo Finance's Ben Werschkul reports: Read more here. Global importers are bracing for President Trump's next tariff deadline on Thursday morning, when the president's tiered approach to tariffs is expected to take effect. Yet some of the details around trade agreements remain fuzzy. Yahoo Finance's Ben Werschkul reports: Read more here. Trump's copper tariffs apply to $15B of products so far President Trump's copper (HG=F) tariffs are due to hit imports valued at more than $15B in 2024, highlighting the potential inflationary impact on American manufacturers. Trump's unveiling of 50% import duties rattled the global copper market last week, because the US president provided a surprise exemption to key forms of wiring metal. But it still leaves significant trade volumes subject to tariffs. Bloomberg News reports: Read more here. President Trump's copper (HG=F) tariffs are due to hit imports valued at more than $15B in 2024, highlighting the potential inflationary impact on American manufacturers. Trump's unveiling of 50% import duties rattled the global copper market last week, because the US president provided a surprise exemption to key forms of wiring metal. But it still leaves significant trade volumes subject to tariffs. Bloomberg News reports: Read more here. Trump threatens EU with increased tariffs if it doesn't meet investment pledge President Trump threatened to hike tariffs on the European Union back to 35% if the bloc fails to live up to a pledge to invest some $600 billion in the US. "A couple of countries came [and said], 'How come the EU is paying less than us?' And I said well, because they gave me $600 billion," Trump said during a CNBC interview. "And that's a gift, that's not like, you know, a loan," he said, claiming that the terms allow the US to direct where the EU invests. President Trump threatened to hike tariffs on the European Union back to 35% if the bloc fails to live up to a pledge to invest some $600 billion in the US. "A couple of countries came [and said], 'How come the EU is paying less than us?' And I said well, because they gave me $600 billion," Trump said during a CNBC interview. "And that's a gift, that's not like, you know, a loan," he said, claiming that the terms allow the US to direct where the EU invests. Trump says pharma duties could go to 250% President Trump said he would announce tariffs on semiconductor and pharmaceutical imports "within the next week or so." "We'll be putting a initially small tariff on pharmaceuticals, but in one year — one and a half years, maximum — it's going to go to 150%. And then it's going to go to 250%, because we want pharmaceuticals made in our country," Trump said during a CNBC interview. He said semiconductor and chip tariffs would be in a "different category." President Trump said he would announce tariffs on semiconductor and pharmaceutical imports "within the next week or so." "We'll be putting a initially small tariff on pharmaceuticals, but in one year — one and a half years, maximum — it's going to go to 150%. And then it's going to go to 250%, because we want pharmaceuticals made in our country," Trump said during a CNBC interview. He said semiconductor and chip tariffs would be in a "different category." US tariff on EU goods set at flat 15% The EU said on Tuesday that European Union goods entering the US face a flat 15% tariff, including cars and car parts. The rate includes the Most Favoured Nation (MFN) tariff and won't exceed 15% even if the US raises tariffs on items like semiconductors and medicines. The EU said it still expects turbulence in its trade dealings with the US. Reuters reports: Read more here. The EU said on Tuesday that European Union goods entering the US face a flat 15% tariff, including cars and car parts. The rate includes the Most Favoured Nation (MFN) tariff and won't exceed 15% even if the US raises tariffs on items like semiconductors and medicines. The EU said it still expects turbulence in its trade dealings with the US. Reuters reports: Read more here. India hits back at Trump's tariff threat India has called out President Trump after he threatened to "substantially raise" tariffs on Indian exports over its Russian oil purchases, slamming the move as unjustified. New Delhi said it would take all necessary steps to protect its economic interests. Bloomberg News reports: Read more here. India has called out President Trump after he threatened to "substantially raise" tariffs on Indian exports over its Russian oil purchases, slamming the move as unjustified. New Delhi said it would take all necessary steps to protect its economic interests. Bloomberg News reports: Read more here. Nvidia partner Hon Hai's July sales growth weakened by tariffs Nvidia's (NVDA) main server assembly partner Hon Hai Precision ( reported a sales slowdown for July due to US tariffs. Bloomberg News reports: Read more here. Nvidia's (NVDA) main server assembly partner Hon Hai Precision ( reported a sales slowdown for July due to US tariffs. Bloomberg News reports: Read more here. 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
Yahoo
11 minutes ago
- Yahoo
Trump's Asia tariffs takes a massive hit on Bitcoin miners
Trump's Asia tariffs takes a massive hit on Bitcoin miners originally appeared on TheStreet. As per the latest report by The Block, President Donald Trump's latest order on global tariffs seems to be becoming a pain in the neck for the Bitcoin mining community in the U.S. As the 90-day tariff pause deadline neared, Trump announced a slew of new global tariff rates on July 31. Among the worst-hit are the key centers of mining rig manufacturing in Southeast Asia. For those unfamiliar, crypto mining is the process of using high-tech hardware to validate and secure transactions on a blockchain network. Ethan Vera, the COO of a Bitcoin mining technology and services company, Luxor Technology, shared a document with The Block as per which the latest directive imposes 21.6% tariffs, including a 19% "reciprocal tariff," on imports of application-specific integrated circuits (ASICs) from Indonesia, Malaysia, and Thailand beginning Aug. are chips that are designed to execute a specific task extremely efficiently such as crypto mining, as opposed to general-purpose processors like central processing units (CPUs) or graphics processing units (GPUs). As per the report, U.S. tariffs on imports from China, a major hub of mining rig manufacturing, stand at a staggering 57.6%, which includes a 10% baseline reciprocal tariff and an additional country‑specific tariff of 20%. Anyway, the tariff pause deadline between the two countries is set to expire on Aug. 12, and there has been no breakthrough so far. While still lower than earlier rates, the current tariffs are significantly higher than the 2.6% tariffs on ASICs imported from the Southeast Asian countries before Trump's second term. However, Chinese machines even earlier used to face an additional 25% ad valorem said, "At 21.6% tariffs, the U.S. is now one of the least competitive jurisdictions to bring machines in, and miners are looking at Canada and other markets to expand too." Opportunity for domestic manufacturers However, the new trade conditions could also lead to a rise in the prices of U.S.-based used ASIC machines in the face of high tariffs on imported rigs, he explained. Though Luxor is excited about the production of mining rigs in the U.S., it warned fully onshoring the manufacturing could take years because most of the raw materials are still imported from Asia. The mining company expected the Trump administration to exempt the mining equipment from tariff hikes in order to encourage the domestic crypto industry. Trump's Asia tariffs takes a massive hit on Bitcoin miners first appeared on TheStreet on Aug 6, 2025 This story was originally reported by TheStreet on Aug 6, 2025, where it first appeared.
Yahoo
11 minutes ago
- Yahoo
Is the US headed toward a recession? Experts weigh in
A weak jobs report in recent days raised alarm among some analysts that the U.S. economy may be slipping toward a recession. Hiring slowed sharply over the summer, federal government data showed. The jobs report came days after fresh gross domestic product data indicated average annualized growth of 1.2% over the first half of 2025, well below 2.8% growth last year. Analysts who spoke to ABC News said the economy could dip into a downturn but the outlook remains uncertain. They differed sharply on the likelihood of a recession, ranging from dire warnings to skepticism about whether the recent data suggests significant cause for concern. "It's too early to see whether this is a trend," Harry Holzer, a professor of economics at Georgetown University and a fellow at the Brookings Institution, told ABC News. "The likelihood of a recession went up because of these job numbers, but it could be a one-time adjustment or a bump down that avoids negative growth." The economy added an average of about 35,000 jobs over three months ending in July, which marks a major slowdown from roughly 128,000 jobs added monthly over the prior three months, U.S. Bureau of Labor Statistics data on Friday showed. Employers are hiring at their slowest pace since 2020. Hours after the release of the report on Friday, President Donald Trump fired BLS Commissioner Erika McEntarfer, an appointee of former President Joe Biden who was confirmed by a bipartisan vote in the Senate in 2024. In a social media post, Trump volleyed sharp criticism and baseless accusations at McEntarfer, claiming without evidence that the data had been "manipulated." The jobs report featured revisions of previous months' data, which is a routine practice. McEntarfer did not immediately reply to ABC News' request for comment. "It has been the honor of my life to serve as Commissioner of BLS alongside the many dedicated civil servants tasked with measuring a vast and dynamic economy," McEntarfer said in a social media post after her dismissal. "It is vital and important work and I thank them for their service to this nation." William Beach, a former commissioner of the Bureau of Labor Statistics, who was appointed by Trump, condemned the firing of McEntarfer. "The totally groundless firing of Dr. Erika McEntarfer, my successor as Commissioner of Labor Statistics at BLS, sets a dangerous precedent and undermines the statistical mission of the Bureau,' Beach posted on X. Trump, meanwhile, touted his economic performance in a social media post: "The Economy is BOOMING under 'TRUMP' despite a Fed that also plays games, this time with Interest Rates." Some analysts disagreed. The hiring cooldown hit a wide swath of industries, including manufacturing and the federal government. The overall unemployment rate of 4.2% continued to hover near a historically low level, but unemployment rose among Black workers, which can foretell job losses among other groups. "The risks are increasingly high that we're going into recession," Mark Zandi, chief economist at Moody's Analytics, told ABC News. "We're not there yet – and maybe this thing gets turned around. But that's increasingly becoming hard to do with each passing week." Zandi largely faulted the rollout of Trump's tariffs for the apparent cooldown. In recent months, Trump has imposed a slew of far-reaching levies on dozens of countries and some specific products, such as steel, aluminum and cars. Tariffs place a tax burden on importers, raising their costs and risking elevated prices for consumers, Zandi said. "Tariffs weigh on economic growth," Zandi added. The Trump administration has touted tariffs as part of a wider set of "America First economic policies," which have "sparked trillions of dollars in new investment in U.S. manufacturing, technology, and infrastructure," according to the White House's website. The economy would likely need to slow further to be considered a recession. Many observers define a recession through the shorthand metric of two consecutive quarters of decline in a nation's inflation-adjusted gross domestic product. The National Bureau of Economic Research, or NBER, a research organization seen as an authority on measuring economic performance, uses a more complicated definition that takes into account several indicators that must convey "a significant decline in economic activity spread across the economy, lasting more than a few months," the group says. While acknowledging the tepid numbers, other analysts said warnings about a recession are premature. The economy has largely averted the type of widespread job losses that often accompany a recession. Consumer spending, which accounts for about two-thirds of economic activity, ticked higher over three months ending in June. Corporate earnings have remained robust. The jobs report sent stocks tumbling but markets have since recovered. "It seems to me people are anchoring on the jobs report and using it to telegraph a recession. I'm not sure it does that," Mark Blyth, a professor of political economy at Brown University, told ABC News. "Nobody knows and everybody is doing wish fulfillment," Blyth added. "If you don't like the administration's policies, you're willing it to be a recession and if you like them, you're saying, 'no.'" MORE: What $4 trillion in debt from Trump's spending measure could mean for future generations To be sure, recession forecasts are hardly bulletproof. A surge of inflation in 2021 -- and an interest-rate hike soon afterward -- unleashed a flood of recession warnings, but no downturn came to pass. More recently, Wall Street banks predicted a possible recession after Trump's "Liberation Day" tariff announcement, before pulling back their assessments after Trump dialed back the levies. "Recessions tend to be unforecastable," Claudia Sahm, chief economist at New Century Advisors and a former Fed official, told ABC News. "Often there's an event that causes people to lose confidence, change behavior and start a downward spiral. Those events are very hard to predict." Still, Sahm added, the available data indicates a weakened economy. "A slow-growing economy is not a good economy," Sahm said. "We want to avoid a recession but avoiding a recession is a low bar. We want an economy that's better than that." 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