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Yahoo
17 minutes ago
- Yahoo
Trump tariffs live updates: US keeps AA+ rating as tariffs aid fiscal outlook
The S&P Global Ratings affirmed the US's AA+ long-term credit rating with a stable outlook on Monday, saying tariff revenues will help offset the fiscal blow from President Trump's recent tax and spending bill. The agency's view comes despite Trump's sweeping tariffs, which have rattled markets and strained trade ties. Meanwhile, Brazil submitted its formal response to a US trade investigation, rejecting the allegations while challenging the legitimacy of the probe itself. The investigation, launched in July under Section 301 of the 1974 Trade Act, will examine whether Brazil's digital trade and tariff policies unfairly harm US businesses, US Trade Representative Jamieson Greer said. Brazil's finance minister Fernando Haddad said the country has hit an impasse with with the US over tariffs, adding that resolving the dispute will depend on Washington's willingness to engage. White House trade advisor Peter Navarro warned India about "cozying up" to Russia and China through oil purchases in an op-ed published Monday in the Financial Times. "If India wants to be treated as a strategic partner of the US, it needs to start acting like one," Navarro wrote. President Trump announced additional 25% tariffs on Indian goods earlier this month, citing New Delhi's continued purchases of Russian oil. The European Union, meanwhile, is seeking to stop the US from challenging its digital rules as both sides finalize a delayed statement on a trade deal reached last month. US trade partners that believed they had worked out agreements with President Trump to avoid the harshest tariffs — such as the exemption for UK steel — are still waiting for their "deals" to be sealed as economic consequences compound over time. Earlier this month, Trump unveiled "reciprocal" tariffs on dozens of US trade partners (which you can see in the graphic below). The next negotiations to watch are Canada, Mexico, and China in the coming months. 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 widens metal tariffs to target baby gear and motorcycles President Trump surprised the logistics industry on Friday by expanding steel and aluminum tariffs to over 400 consumer goods, including motorcycles, baby products and tableware. US customs brokers and importers failed to get much notice and the changes took effect Monday, applying to goods already in transit. Bloomberg News reports: Read more here. Trump cracks down on Latin American countries with military action and tariffs In the next 36 hours President Trump will send three Aegis guided-missile destroyers to waters off Venezuela to address what Washington sees as a threat from drug cartels. The news, which was reported in Reuters, shows how the Trump administration are willing to use military force against Latin American drug cartels. Trump has placed pressure on Mexico to crack down on criminal organizations and end fentanyl trafficking. Another method that Trump is using is steep tariffs on goods. Bloomberg News reports: Read more here. Trump tariffs get seal of approval as S&P affirms credit rating S&P Global Ratings on Monday affirmed the US's AA+ long-term rating with a stable outlook, saying tariff revenues will help offset costs from President Trump's recent tax and spending bill. Bloomberg News reports: Read more here. Brazil challenges legitimacy of US trade probe, urges dialogue Brazil has rejected a US trade investigation launched in July under section 301 of the Trade Act of 1974, which seeks to determine whether its trade and tariff policies unfairly restrict American businesses. In a formal response submitted Monday, Brazil dismissed the allegations and challenged the legitimacy of the probe. Reuters reports: Read more here. Brazil deadlocked with US over 50% tariffs, finance minister says The Financial Times reports: Read more here. Nissan's Infiniti attempts 'product renaissance' to jump-start sales and blunt tariffs Nissan's (NSANY) Infiniti brand just unveiled its latest creation, the QX65 midsize crossover SUV, at Monterey Car Week. The launch is part of a product renaissance at the Japanese automaker, which has been plagued with other headaches, such as tariffs. Yahoo Finance's Pras Subramanian reports from Carmel, Calif., that the QX65 will be built in the US, which Infiniti's US head, Tiago Castro, said was 'very important' to increase its US footprint. While Japan has a preliminary deal in place for 15% tariffs, cars imported from Canada and Mexico still have a 25% auto sector tariff tacked on. Signing a tariff deal with Japan is immensely helpful, as the QX80 SUV that's in demand is built in Japan. 'The customers are reacting very well, and we need to deliver the vehicle' and not stop, Castro said. Read more here. Germany says written EU-US trade deal requires lower car duties Germany said on Monday the US must first implement the agreed lower tariffs on European-made cars before a broader trade deal can be finalized. Reuters reports: Read more here. Fewer fake firs, higher prices: China tariff delay does little to save the holidays The holiday season is fast approaching and US shoppers will now face fewer choices for fake Christmas trees and decorations. The price of these items has also gone up due to tariffs on Chinese imports as retailers scale back orders. Reuters reports: Read more here. China ramps up rare earth exports after fright for global buyers Bloomberg News reports: Read more here. EU push to protect digital rules holds up trade statement with US The EU is pushing back against US efforts to challenge its digital rules as both sides work to finalize a delayed trade statement, the FT reported. Disputes over "non-tariff barriers," which Washington says include the EU's Digital Services Act, have stalled the announcement. The statement was expected soon after European Commission president Ursula von der Leyen and President Trump unveiled a tariff deal in Scotland on July 27. EU officials said the US wants room for concession on the act, but Brussels has called the rules a red line. The FT reports: Read more here. US adviser Navarro says India's Russian crude buying must stop Reuters reports: Read more here. US trade partners still waiting on Trump to seal their 'deals' US trade partners that worked out exemptions to President Trump's tariffs — like the UK's deal to reduce tariffs on its steel to zero — are still waiting for the agreements to be finalized months later, Bloomberg reports, and are growing frustrated. Read more here. Candidates at Iowa State Fair hear from voters about Trump tariffs (Bloomberg) — Republican Representative Zach Nunn is making an Iowa State Fair video about President Donald Trump's tax law, shot on a John Deere tractor under the blazing August sun. In it, Nunn, one of the nation's most vulnerable incumbents, talks to constituent Sarah Curry about how the expanded child tax credit will help with the cost of one child's speech therapy. Nunn is also planning to use the state fair as the backdrop for more videos selling the bill's provisions temporarily cutting taxes on tips and overtime. Economic issues — namely, Trump's tax package and his tariff war with countries that buy much of Iowa's agricultural products — will be front and center in Nunn's race, and he's eager to get a jumpstart defining the issues. So, too, are Democrats, who see Iowa's two swing districts as must-wins in their push to take back the House majority. Democrat Jennifer Konfrst, who is working to unseat Nunn, said she approaches Iowans at the fair asking them what keeps them up at night and the answer is usually 'costs.' Read more here. Tariffs' impact on Walmart, other retailers' earnings about to come into focus Several major retailers will report earnings this week, which may give a first glimpse into how President Trump's tariffs have affected their bottom lines. The list includes Walmart (WMT), Target (TGT), Home Depot (HD), Lowe's Companies (LOW) TJ Maxx parent TJX Companies (TJX) and Ross Stores (ROST). The Trump administration has urged retailers not to raise prices for consumers to offset the tariffs' impact, with a particular focus on Walmart, The Street reminds us: Read more here. Trump's trade war not likely to cause recession, Moody's economist says Economist Justin Begley of Moody's Analytics tells USA Today that President Trump's economic policies won't cause a recession or stagflation, but will likely slow growth and push up inflation. The economy isn't in stagflation yet, Begley said, "but it's edging that way," he adds: Read more here. Commerce department applies 50% steel, aluminum tariffs to more products (Reuters) -The Trump administration widened the reach of its 50% tariffs on steel and aluminum imports by adding hundreds of derivative products to the list of goods subject to the levies. In a Federal Register notice late on Friday, the Commerce Department said the Bureau of Industry and Security was adding 407 product codes to the Harmonized Tariff Schedule of the United States that identify the goods to be hit with the additional duties on the steel and aluminum content of those products. The non-steel and non-aluminum content will be subject to the tariff rates President Donald Trump has imposed on the goods originating from specific countries, the notice said. The levies on the goods on the expanded list go into effect on August 18. Read more here. Consumers' inflation expectations rise amid Trump tariffs Inflation expectations rose from July to August, indicating that consumers remain uncertain about President Trump's trade policies. Year-ahead inflation expectations increased to 4.9% from 4.5% last month, according to the University of Michigan's survey of consumers. Long-run inflation expectations also rose to 3.9% in August from 3.4% in July. "Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused," Joanne Hsu, the university's Surveys of Consumers director, wrote. "However, consumers continue to expect both inflation and unemployment to deteriorate in the future." Consumer sentiment also deteriorated month over month, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from 61.7 a month ago. Read more here. US import prices rebound in July on higher consumer goods costs US import prices rebounded in July in the latest sign that inflation is set to pick up because of tariffs. Reuters reports: Read more here. Trump says semiconductor tariffs could reach 300% President Trump said Friday he is planning on unveiling tariffs on semiconductor imports over the next two weeks, hinting that those duties could reach as high as 300%. From Bloomberg: Read more here. Applied Materials' shares sink on weak China demand, tariff risks Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. Trump widens metal tariffs to target baby gear and motorcycles President Trump surprised the logistics industry on Friday by expanding steel and aluminum tariffs to over 400 consumer goods, including motorcycles, baby products and tableware. US customs brokers and importers failed to get much notice and the changes took effect Monday, applying to goods already in transit. Bloomberg News reports: Read more here. President Trump surprised the logistics industry on Friday by expanding steel and aluminum tariffs to over 400 consumer goods, including motorcycles, baby products and tableware. US customs brokers and importers failed to get much notice and the changes took effect Monday, applying to goods already in transit. Bloomberg News reports: Read more here. Trump cracks down on Latin American countries with military action and tariffs In the next 36 hours President Trump will send three Aegis guided-missile destroyers to waters off Venezuela to address what Washington sees as a threat from drug cartels. The news, which was reported in Reuters, shows how the Trump administration are willing to use military force against Latin American drug cartels. Trump has placed pressure on Mexico to crack down on criminal organizations and end fentanyl trafficking. Another method that Trump is using is steep tariffs on goods. Bloomberg News reports: Read more here. In the next 36 hours President Trump will send three Aegis guided-missile destroyers to waters off Venezuela to address what Washington sees as a threat from drug cartels. The news, which was reported in Reuters, shows how the Trump administration are willing to use military force against Latin American drug cartels. Trump has placed pressure on Mexico to crack down on criminal organizations and end fentanyl trafficking. Another method that Trump is using is steep tariffs on goods. Bloomberg News reports: Read more here. Trump tariffs get seal of approval as S&P affirms credit rating S&P Global Ratings on Monday affirmed the US's AA+ long-term rating with a stable outlook, saying tariff revenues will help offset costs from President Trump's recent tax and spending bill. Bloomberg News reports: Read more here. S&P Global Ratings on Monday affirmed the US's AA+ long-term rating with a stable outlook, saying tariff revenues will help offset costs from President Trump's recent tax and spending bill. Bloomberg News reports: Read more here. Brazil challenges legitimacy of US trade probe, urges dialogue Brazil has rejected a US trade investigation launched in July under section 301 of the Trade Act of 1974, which seeks to determine whether its trade and tariff policies unfairly restrict American businesses. In a formal response submitted Monday, Brazil dismissed the allegations and challenged the legitimacy of the probe. Reuters reports: Read more here. Brazil has rejected a US trade investigation launched in July under section 301 of the Trade Act of 1974, which seeks to determine whether its trade and tariff policies unfairly restrict American businesses. In a formal response submitted Monday, Brazil dismissed the allegations and challenged the legitimacy of the probe. Reuters reports: Read more here. Brazil deadlocked with US over 50% tariffs, finance minister says The Financial Times reports: Read more here. The Financial Times reports: Read more here. Nissan's Infiniti attempts 'product renaissance' to jump-start sales and blunt tariffs Nissan's (NSANY) Infiniti brand just unveiled its latest creation, the QX65 midsize crossover SUV, at Monterey Car Week. The launch is part of a product renaissance at the Japanese automaker, which has been plagued with other headaches, such as tariffs. Yahoo Finance's Pras Subramanian reports from Carmel, Calif., that the QX65 will be built in the US, which Infiniti's US head, Tiago Castro, said was 'very important' to increase its US footprint. While Japan has a preliminary deal in place for 15% tariffs, cars imported from Canada and Mexico still have a 25% auto sector tariff tacked on. Signing a tariff deal with Japan is immensely helpful, as the QX80 SUV that's in demand is built in Japan. 'The customers are reacting very well, and we need to deliver the vehicle' and not stop, Castro said. Read more here. Nissan's (NSANY) Infiniti brand just unveiled its latest creation, the QX65 midsize crossover SUV, at Monterey Car Week. The launch is part of a product renaissance at the Japanese automaker, which has been plagued with other headaches, such as tariffs. Yahoo Finance's Pras Subramanian reports from Carmel, Calif., that the QX65 will be built in the US, which Infiniti's US head, Tiago Castro, said was 'very important' to increase its US footprint. While Japan has a preliminary deal in place for 15% tariffs, cars imported from Canada and Mexico still have a 25% auto sector tariff tacked on. Signing a tariff deal with Japan is immensely helpful, as the QX80 SUV that's in demand is built in Japan. 'The customers are reacting very well, and we need to deliver the vehicle' and not stop, Castro said. Read more here. Germany says written EU-US trade deal requires lower car duties Germany said on Monday the US must first implement the agreed lower tariffs on European-made cars before a broader trade deal can be finalized. Reuters reports: Read more here. Germany said on Monday the US must first implement the agreed lower tariffs on European-made cars before a broader trade deal can be finalized. Reuters reports: Read more here. Fewer fake firs, higher prices: China tariff delay does little to save the holidays The holiday season is fast approaching and US shoppers will now face fewer choices for fake Christmas trees and decorations. The price of these items has also gone up due to tariffs on Chinese imports as retailers scale back orders. Reuters reports: Read more here. The holiday season is fast approaching and US shoppers will now face fewer choices for fake Christmas trees and decorations. The price of these items has also gone up due to tariffs on Chinese imports as retailers scale back orders. Reuters reports: Read more here. China ramps up rare earth exports after fright for global buyers Bloomberg News reports: Read more here. Bloomberg News reports: Read more here. EU push to protect digital rules holds up trade statement with US The EU is pushing back against US efforts to challenge its digital rules as both sides work to finalize a delayed trade statement, the FT reported. Disputes over "non-tariff barriers," which Washington says include the EU's Digital Services Act, have stalled the announcement. The statement was expected soon after European Commission president Ursula von der Leyen and President Trump unveiled a tariff deal in Scotland on July 27. EU officials said the US wants room for concession on the act, but Brussels has called the rules a red line. The FT reports: Read more here. The EU is pushing back against US efforts to challenge its digital rules as both sides work to finalize a delayed trade statement, the FT reported. Disputes over "non-tariff barriers," which Washington says include the EU's Digital Services Act, have stalled the announcement. The statement was expected soon after European Commission president Ursula von der Leyen and President Trump unveiled a tariff deal in Scotland on July 27. EU officials said the US wants room for concession on the act, but Brussels has called the rules a red line. The FT reports: Read more here. US adviser Navarro says India's Russian crude buying must stop Reuters reports: Read more here. Reuters reports: Read more here. US trade partners still waiting on Trump to seal their 'deals' US trade partners that worked out exemptions to President Trump's tariffs — like the UK's deal to reduce tariffs on its steel to zero — are still waiting for the agreements to be finalized months later, Bloomberg reports, and are growing frustrated. Read more here. US trade partners that worked out exemptions to President Trump's tariffs — like the UK's deal to reduce tariffs on its steel to zero — are still waiting for the agreements to be finalized months later, Bloomberg reports, and are growing frustrated. Read more here. Candidates at Iowa State Fair hear from voters about Trump tariffs (Bloomberg) — Republican Representative Zach Nunn is making an Iowa State Fair video about President Donald Trump's tax law, shot on a John Deere tractor under the blazing August sun. In it, Nunn, one of the nation's most vulnerable incumbents, talks to constituent Sarah Curry about how the expanded child tax credit will help with the cost of one child's speech therapy. Nunn is also planning to use the state fair as the backdrop for more videos selling the bill's provisions temporarily cutting taxes on tips and overtime. Economic issues — namely, Trump's tax package and his tariff war with countries that buy much of Iowa's agricultural products — will be front and center in Nunn's race, and he's eager to get a jumpstart defining the issues. So, too, are Democrats, who see Iowa's two swing districts as must-wins in their push to take back the House majority. Democrat Jennifer Konfrst, who is working to unseat Nunn, said she approaches Iowans at the fair asking them what keeps them up at night and the answer is usually 'costs.' Read more here. (Bloomberg) — Republican Representative Zach Nunn is making an Iowa State Fair video about President Donald Trump's tax law, shot on a John Deere tractor under the blazing August sun. In it, Nunn, one of the nation's most vulnerable incumbents, talks to constituent Sarah Curry about how the expanded child tax credit will help with the cost of one child's speech therapy. Nunn is also planning to use the state fair as the backdrop for more videos selling the bill's provisions temporarily cutting taxes on tips and overtime. Economic issues — namely, Trump's tax package and his tariff war with countries that buy much of Iowa's agricultural products — will be front and center in Nunn's race, and he's eager to get a jumpstart defining the issues. So, too, are Democrats, who see Iowa's two swing districts as must-wins in their push to take back the House majority. Democrat Jennifer Konfrst, who is working to unseat Nunn, said she approaches Iowans at the fair asking them what keeps them up at night and the answer is usually 'costs.' Read more here. Tariffs' impact on Walmart, other retailers' earnings about to come into focus Several major retailers will report earnings this week, which may give a first glimpse into how President Trump's tariffs have affected their bottom lines. The list includes Walmart (WMT), Target (TGT), Home Depot (HD), Lowe's Companies (LOW) TJ Maxx parent TJX Companies (TJX) and Ross Stores (ROST). The Trump administration has urged retailers not to raise prices for consumers to offset the tariffs' impact, with a particular focus on Walmart, The Street reminds us: Read more here. Several major retailers will report earnings this week, which may give a first glimpse into how President Trump's tariffs have affected their bottom lines. The list includes Walmart (WMT), Target (TGT), Home Depot (HD), Lowe's Companies (LOW) TJ Maxx parent TJX Companies (TJX) and Ross Stores (ROST). The Trump administration has urged retailers not to raise prices for consumers to offset the tariffs' impact, with a particular focus on Walmart, The Street reminds us: Read more here. Trump's trade war not likely to cause recession, Moody's economist says Economist Justin Begley of Moody's Analytics tells USA Today that President Trump's economic policies won't cause a recession or stagflation, but will likely slow growth and push up inflation. The economy isn't in stagflation yet, Begley said, "but it's edging that way," he adds: Read more here. Economist Justin Begley of Moody's Analytics tells USA Today that President Trump's economic policies won't cause a recession or stagflation, but will likely slow growth and push up inflation. The economy isn't in stagflation yet, Begley said, "but it's edging that way," he adds: Read more here. Commerce department applies 50% steel, aluminum tariffs to more products (Reuters) -The Trump administration widened the reach of its 50% tariffs on steel and aluminum imports by adding hundreds of derivative products to the list of goods subject to the levies. In a Federal Register notice late on Friday, the Commerce Department said the Bureau of Industry and Security was adding 407 product codes to the Harmonized Tariff Schedule of the United States that identify the goods to be hit with the additional duties on the steel and aluminum content of those products. The non-steel and non-aluminum content will be subject to the tariff rates President Donald Trump has imposed on the goods originating from specific countries, the notice said. The levies on the goods on the expanded list go into effect on August 18. Read more here. (Reuters) -The Trump administration widened the reach of its 50% tariffs on steel and aluminum imports by adding hundreds of derivative products to the list of goods subject to the levies. In a Federal Register notice late on Friday, the Commerce Department said the Bureau of Industry and Security was adding 407 product codes to the Harmonized Tariff Schedule of the United States that identify the goods to be hit with the additional duties on the steel and aluminum content of those products. The non-steel and non-aluminum content will be subject to the tariff rates President Donald Trump has imposed on the goods originating from specific countries, the notice said. The levies on the goods on the expanded list go into effect on August 18. Read more here. Consumers' inflation expectations rise amid Trump tariffs Inflation expectations rose from July to August, indicating that consumers remain uncertain about President Trump's trade policies. Year-ahead inflation expectations increased to 4.9% from 4.5% last month, according to the University of Michigan's survey of consumers. Long-run inflation expectations also rose to 3.9% in August from 3.4% in July. "Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused," Joanne Hsu, the university's Surveys of Consumers director, wrote. "However, consumers continue to expect both inflation and unemployment to deteriorate in the future." Consumer sentiment also deteriorated month over month, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from 61.7 a month ago. Read more here. Inflation expectations rose from July to August, indicating that consumers remain uncertain about President Trump's trade policies. Year-ahead inflation expectations increased to 4.9% from 4.5% last month, according to the University of Michigan's survey of consumers. Long-run inflation expectations also rose to 3.9% in August from 3.4% in July. "Overall, consumers are no longer bracing for the worst-case scenario for the economy feared in April when reciprocal tariffs were announced and then paused," Joanne Hsu, the university's Surveys of Consumers director, wrote. "However, consumers continue to expect both inflation and unemployment to deteriorate in the future." Consumer sentiment also deteriorated month over month, falling for the first time in four months. The University of Michigan's Consumer Sentiment Index fell to 58.6 from 61.7 a month ago. Read more here. US import prices rebound in July on higher consumer goods costs US import prices rebounded in July in the latest sign that inflation is set to pick up because of tariffs. Reuters reports: Read more here. US import prices rebounded in July in the latest sign that inflation is set to pick up because of tariffs. Reuters reports: Read more here. Trump says semiconductor tariffs could reach 300% President Trump said Friday he is planning on unveiling tariffs on semiconductor imports over the next two weeks, hinting that those duties could reach as high as 300%. From Bloomberg: Read more here. President Trump said Friday he is planning on unveiling tariffs on semiconductor imports over the next two weeks, hinting that those duties could reach as high as 300%. From Bloomberg: Read more here. Applied Materials' shares sink on weak China demand, tariff risks Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. Shares in Applied Materials (AMAT) sank 14% before the bell on Friday after the chip equipment maker issued weak fourth-quarter forecasts on sluggish China demand, fueling concerns over tariff-related risks. Reuters reports: Read more here. Sign in to access your portfolio
USA Today
18 minutes ago
- USA Today
Is America done with clean energy? Why wind, solar power are in peril
Since taking office, the Trump Administration has paused permits on all new wind and solar projects on public land, both onshore and offshore. New wind and solar power installations, and the cheap, clean energy they provide to America, may not survive the Trump administration. Building on public concerns and his own dislike of "ugly," "disgusting" wind turbines and "ridiculous" solar farms, President Donald Trump has issued a blizzard of directives and executive orders limiting new solar and wind projects across the county. In at least one case, the administration yanked back an already-issued permit. Instead, the administration is promoting energy production from oil, natural gas and coal, which the Biden administration had made more expensive through regulations Trump is now dismantling. 'They're basically trying to make it impossible or next to impossible to build wind or solar power in this country while at the same time rolling back regulations on fossil fuels,' said Nick Krakoff, senior attorney with the Boston-based Conservation Law Foundation, a nonprofit environmental organization. Wind and solar power are two of the fastest-growing energy sectors in the United States and produced as much as 17% of the country's electricity last year, according to the U.S. Energy Information Administration, the statistical agency of the Department of Energy. Since taking office, the Trump administration has paused permits on all new wind and solar projects on public land, onshore and offshore. The vast majority of renewable energy projects – 95% – are on private land, according to a report by the Brookings Institution. But many of those require some type of federal approval and are also being stalled by the new rules. It's this push to end large-scale energy projects on private property as well that some in the energy industry consider especially troubling. 'It's expected that every time you have a major change in administrations, policies on public land might change," said Jason Grumet, CEO of the American Clean Power Association. 'But the willingness of this administration to create political and bureaucratic barriers to private economic activity on private land is something nobody anticipated.' A shift that began Jan. 20 The dozens of new rules, mostly issued by the Department of the Interior, add multiple layers of permit requirements to an already thorough process – requirements that could slow or stymie some projects. 'It looks like they are just trying to find any moment at which the federal government interacts with a project and putting it on this list," said Michelle Solomon, manager of the electricity program at Energy Innovation, Policy and Technology, an energy think tank based in San Francisco. The flood of new regulations began on Jan. 20 when the administration temporarily withdrew all permits for offshore wind projects. On July 7, all subsidies for wind and solar projects were ended, though federal subsidies for coal, oil and natural gas were left in place. On July 15, the Department of the Interior added multiple layers of review for all wind and solar projects on public land, including a requirement that the secretary of the interior sign off on each one. It was not clear whether these requirements will stop new projects from being permitted, but "at the very least it will slow decisions down – and a lot of the decisions are not controversial, they're routine,' Krakoff said. On July 29, the department required wind or solar projects that have been approved but are being sued by opponents be federally reviewed and possibly canceled. Nearly a third of solar projects and half of wind projects that completed Environmental Impact Statements faced lawsuits, according to research by Resources for the Future, a Washington, DC-based nonprofit research institute. Targeting the renewable energy industry Environmental Protection Agency Administrator Lee Zeldin said in March that the administration's efforts "are driving a dagger straight into the heart of the climate change religion." The new rules will ensure that wind and solar projects "receive appropriate oversight when federal resources, permits or consultations are involved," Department of the Interior senior public affairs specialist Elizabeth Pease said in a statement emailed to USA TODAY. The directives are already having an effect. On Aug. 6, the agency announced it was reversing a permit for a 1,000-megawatt wind facility that had been approved in Idaho. 'They're canceling meetings and taking down web pages," Grumet of American Clean Power said, adding that he sees the moves as "an unprecedented effort to weaponize bureaucracy to undermine an American industry." In early August, Nevada's Republican Gov. Joe Lombardo complained to the secretary of the interior in a letter that solar projects deep in the project pipeline have been frozen. 'This is part of a pattern of targeting the renewable energy industry," said the Conservation Law Foundation's Krakoff. "It's pretty unprecedented to target an entire industry and undermine the rule of law." Power demands are at an all-time high and rising These actions could stop cold what has been the biggest contributor to U.S. power supplies at a time when power demands driven by global warming and the needs of artificial intelligence and data centers are pushing power consumption to all-time highs. 'We need to build more power generation now, and that includes renewable energy. The U.S. will need roughly 118 gigawatts (the equivalent of 12 New York Cities) of new power generation in the next four years to prevent price spikes and potential shortages," said Ray Long, CEO of the American Council on Renewable Energy." Only a limited set of technologies – solar, wind, batteries and some natural gas – can be built at that scale in that time frame." As of last year, 17% of electricity in the United States was created by wind or solar power. Of the new power generation projected to come online this year, 93% was expected to come from solar, wind or battery storage, according to the U.S. Energy Information Administration. Solar power appears to be less impacted by the policy shifts than wind, Solomon said. 'Certainly the administration is seemingly trying to do everything they can to slow progress for wind and solar – but they don't have unilateral control over everything,' she said. 'I think there's a decent chance that there's a lot of projects on private land, at least solar projects, that will not have federal permitting requirements.' China has overtaken the United States on clean energy The shift comes as the rest of the world – especially China – make significant strides in moving to cheaper power from wind and solar. "I don't think the administration fully appreciates that if they were to tie their own hands, we could be retreating in that competition with China," Grumet said. China is installing wind and solar projects faster than any other nation and today has almost half the world's wind farms. In 2023 it built out more wind and solar than the rest of the world combined. In May, its solar power reached 1,000 gigawatts. The United States' current solar capacity is 134 gigawatts. A 1 gigawatt solar facility generates enough power to support about 200,000 households, according to the U.S. Energy Information Administration. In the first quarter of this year, China was able to produce more energy through wind and solar than through coal and gas. As of July, the country made up 74% of all wind and solar projects under construction globally. China's enormous buildout of wind and solar power caused its carbon emissions to fall by 2.7% in the first six months of this year. Some experts believe its greenhouse gas emissions may have peaked. The country's combination of clean energy production along with the success of its electric vehicles has earned it the title of the world's first "electrostate." Fossil fuel-based nations are called "petrostates." None of this bodes well for the future of the United States on the world stage, said Julio Friedmann, an expert on carbon, hydrogen and biofuels at Carbon Direct, a company that provides climate solutions. "In all likelihood, the actions will strengthen China's position as global leader," said Friedmann, who also taught at Columbia University. "At worst, the U.S. may surrender its many advantages."
The Hill
18 minutes ago
- The Hill
Wage growth is sinking for poorest workers
Wage growth is slowing down for all workers following the booming recovery from the COVID-19 pandemic, but it's dropping at the fastest pace for workers at the bottom end of the income spectrum. That's a sharp reversal from the postpandemic recovery era, when the lowest paid workers were seeing the fastest wage growth, something economists termed 'wage compression.' It also comes as these workers could face more pressure from tariffs, which are expected to raise costs on a number of goods. The trend of wage compression has inverted almost entirely. The poorest workers are now seeing the slowest levels of wage growth while the highest earners are seeing the fastest. Median annual wages for people making $806 a week or less increased at an annual rate of 3.7 percent in July, the same rate as in June, according to recent data from the Atlanta Federal Reserve. That's much lower than the last half of 2022, when the lowest earners were seeing 7.5 percent growth. Wages for people making more than $1,887 a week increased a full percentage point faster in July, at 4.7 percent growth. That's just down a tick from the last half of 2022, when they were seeing 4.8 percent growth. While the various income categories in the Atlanta Fed data crisscrossed one another through 2023 and 2024 on a slow downward trend line, wage growth for the lowest earners really fell off a cliff in February. The lowest earners saw a 0.3 percent drop in March and another 0.2 percent drop in April. Those are all nominal numbers, which don't take inflation into account. Inflation tends to hit the poorest households the worst since they spend a larger percentage of their income each month, usually on necessary items like rent and groceries. 'The [Atlanta] wage growth tracker is consistent with what we've found so far this year — wages at the tenth percentile are growing much more slowly than for middle [and] high wage workers, and, this is a clear reversal of the pattern in the postpandemic labor market,' Josh Bivens, chief economist at the left-leaning Economic Policy Institute, told The Hill. Republicans are nervous about the reversal of this trend, especially since inflation has started to tick back up recently — due in part to President Trump's tariff regime. Inflation played a big role in the economic unease of voters who backed Republicans in last year's elections. The worry is that those tides could reverse if voters are still feeling the pain in next year's midterms. The consumer price index ticked up to a 2.7 percent annual increase in July after dropping to 2.3 percent in April. The personal consumption expenditures price index reached 2.6 percent in July after falling to 2.2 percent in April. Showing sensitivity to low-income wage growth trends, the White House released an analysis last week touting a 1.4 percent 'real blue collar wage boom.' The numbers refer to growth in real average hourly earnings for production and nonsupervisory workers and are within recent historical ranges. A Treasury Department official told The Hill on Friday that falling inflation in the first half of this year was a driver of this uptick. But economists are sounding more pessimistic about recent trends. 'As softer labor markets are hurting their wage growth, faster price inflation [driven in part by tariffs] is pinching workers on the cost side,' Bivens told The Hill. 'It seems like a complete lock that after very rapid real wage growth in the postpandemic recovery that low-wage workers are going to end 2025 much worse off than they have in years.' The Treasury Department official said the real gains for blue-collar workers are going to come from the massive extension of tax cuts and spending cuts Trump signed into law earlier this summer. The official cited the bonus depreciation — a business tax cut that allows for immediate expensing of capital investments — as an important impetus for future wage growth. Inflation, as measured in the consumer price index, is up 25.3 percent since the end of the pandemic recession in June 2020 while wages are up 24 percent, meaning that take-home pay has not caught up to prices over that five-year period. 'Not all workers feel inflation equally,' Sarah Foster, an economic analyst for financial media company Bankrate, wrote in a Monday commentary. 'Wage growth is furthest behind in education, construction, financial activities, professional and business services, and manufacturing.' Over the long term, wages pretty much just keep pace with inflation since labor costs are determinant of production costs and market prices by extension. The purchasing power of wages has only increased by a few dollars since 1964, Pew Research found in 2018. However, on shorter timescales, wage movements relative to prices can make a big difference for households and have political consequences. Inflation and the economy ranked as the top issue in the 2024 election and helped to propel Trump, who was viewed by voters as stronger on the economy, back into the White House for a second term. Increased wages for lower income workers likely also played a significant role in the 2022 midterm elections, which saw Democrats hold off an expected red wave of Republican wins in swing states. Economists described the increased wages for poorer workers as a 'profound shift in U.S. labor market conditions.' 'The unexpected compression was around one-third as large as the great compression of the 1940s,' University of Massachusetts economist Arin Dube wrote in 2024. He and his coauthors noted that it 'was concentrated in the bottom half of the wage distribution and was driven by particularly rapid wage growth among workers under 40 years of age and without a college degree.' Some economists are also arguing that Trump's tariffs could hit lower-wage workers harder. Economists for the Institute on Taxation and Economic Policy found that for the poorest fifth of Americans the tariffs will impose a tax hike equivalent to 6.2 percent of their income that year.
