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Associated Press
07-04-2025
- Business
- Associated Press
Ground Game: Tariffs and clothing, Trump and Netanyahu meet again, Alabama GOP concerns and caveats
This newsletter was originally sent out via email to our Ground Game subscribers on April 7. You can subscribe at any time at By Meg Kinnard Sending children back to school in new sneakers, jeans and T-shirts is likely to cost U.S. families significantly more this fall if the bespoke tariffs President Donald Trump put on leading exporters take effect as planned, American industry groups warn. We take a look at the possible implications for U.S. consumers, how the industry has tried to prepare and who might be the winners and losers in a garment trade war. Welcome to this week's edition of AP Ground Game. Policy changes, but facts endure. AP delivers accurate, fact-based journalism to keep the world informed in every administration. Support independent reporting today. Donate. THE HEADLINES Trade groups warn tariffs will make just about everything Americans wear cost more About 97% of the clothes and shoes purchased in the U.S. are imported, predominantly from Asia, according to the American Apparel & Footwear Association. Walmart, Gap Inc., Lululemon and Nike are a few of the companies that have a majority of their clothing made in Asian countries. Those same garment-making hubs took a big hit under the president's plan to punish individual countries for trade imbalances. For all Chinese goods, that meant tariffs of at least 54%. He set the import tax rates for Vietnam and neighboring Cambodia at 46% and 49%, and products from Bangladesh and Indonesia at 37% and 32%. Working with foreign factories has kept labor costs down for U.S. companies in the fashion trade, but neither they nor their overseas suppliers are likely to absorb new costs that high. Industry experts say reviving the American garment industry would be hugely expensive and take years if it were feasible. The number of people working in apparel manufacturing in January 2015 stood at 139,000 and had dwindled to 85,000 by January of this year, according to the Bureau of Labor Statistics. Sri Lanka employs four times as many despite having a population less than one-seventh the size of the U.S. Read more. Of note: According to a report by British bank Barclays published Friday, the winners in the tariff wars are retailers that have at least one of these attributes: big negotiating power with their suppliers, a strong brand name and limited sourcing in Asia. In clothing and footwear, that includes off-price retailers Burlington, Ross Stores Inc. and TJX Companies, which operates T.J. Maxx and Marshalls, as well as Ralph Lauren and Dick's Sporting Goods. The companies in for a tougher time are those with limited negotiating power, limited pricing power and high product exposure in Asia, a list including Gap Inc., Urban Outfitters and American Eagle Outfitters, according to the report. Trump and Netanyahu will meet again on Monday Trump plans to meet with Israeli Prime Minister Benjamin Netanyahu on Monday in what would be their second White House sit-down since Trump's return to office. The visit, confirmed by a White House official and Netanyahu's office Saturday, comes as Israel deploys troops in a new security corridor across Gaza to pressure the Hamas militant group. Netanyahu's defense minister has said Israel will seize large areas of the territory and add them to its so-called security zones. Last month, Israel shattered the ceasefire with a surprise bombardment in Gaza after trying to pressure Hamas to accept proposed new terms for the ceasefire, a move supported by the White House. Hundreds of Palestinians have since been killed. Israel has pledged to escalate the war in Gaza until Hamas returns the remaining hostages seized in the Oct. 7, 2023, attack that sparked the war, disarms and leaves the territory. Israel also has halted all supplies of food, fuel and humanitarian aid into Gaza. Read more. Of note: In February, Netanyahu became the first foreign leader invited to the White House during Trump's second term. Their meeting focused on Israel's war with Hamas and the next steps as a ceasefire deal took hold. Netanyahu's office in a statement on social media said he and Trump would discuss 'the tariff issue, the efforts to return our hostages, Israel-Turkey relations, the Iranian threat and the battle against the International Criminal Court.' Israel faces a 17% tariff. Israeli strikes on Gaza kill 32, mostly women and children Netanyahu is rocked by a new scandal linking his close advisers to Qatar In conservative Alabama, Republicans cheer Trump, with some quiet caveats On a day when stock markets around the world dropped precipitously, Alabama Republican Party Chairman John Wahl led a celebration of the president whose global tariffs sparked the selloff. With no mention of the Wall Street rollercoaster and global economic uncertainty, Wahl declared his state GOP's 'Trump Victory Dinner' – and the broader national moment – a triumph. Yet beyond the cheerleading in response to Wahl's remarks at last week's gala in downtown Birmingham, there were signs of a more cautious optimism and some worried whispers over Trump's sweeping tariffs, his deportation policy and aggressive slashing of his Department of Government Efficiency. 'There are some concerns, some conversations,' said John Merrill, a former secretary of state, over just what Trump's agenda will mean on the ground. Terry Martin, a county GOP committeeman in Tallapoosa County, said he supports the tariffs as leverage. But, 'the parts that are coming from overseas … it's going to pop it up' in price, he said, at least in the short term. Wahl, in an interview after the gala, took a more nuanced approach than he did at the podium. Angry protesters from New York to Alaska assail Trump and Musk in 'Hands Off!' rallies IN PHOTOS ON THE CALENDAR On Monday, Trump hosts the 2024 World Series Champion Los Angeles Dodgers and meets with Netanyahu at the White House. 2025 COUNTDOWN


Associated Press
31-03-2025
- Business
- Associated Press
Ground Game: Trump's ‘Liberation Day', Musk hands out $1 million payments, Democratic base's anger
By Meg Kinnard President Donald Trump says Wednesday will be 'Liberation Day,' when he plans to roll out a set of tariffs that he promises will free the United States from foreign goods. We take a look at what Trump is proposing, what the plans could mean for U.S. consumers and what other countries are saying. Welcome to this week's edition of AP Ground Game. Policy changes, but facts endure. AP delivers accurate, fact-based journalism to keep the world informed in every administration. Support independent reporting today. Donate. THE HEADLINES What Trump's promised 'Liberation Day' of tariffs could mean for you The details of Trump's next round of import taxes are still sketchy. Most economic analyses say U.S. families would have to absorb the cost of his tariffs in the form of higher prices and lower incomes. It is also possible that the tariffs are short-lived if Trump feels he can cut a deal after imposing them. What does Trump plan to do? The president has said he wants to announce import taxes, including 'reciprocal' tariffs that would match the rates charged by other countries and account for other subsidies. He has talked about taxing the European Union, South Korea, Brazil and India, among other countries. The Republican president plans to tax imported pharmaceutical drugs, copper and lumber. He has put forth a 25% tariff on any country that imports oil from Venezuela – even though the U.S. also does so. Imports from China are being charged an additional 20% tax because of its role in fentanyl production. There are also separate tariffs on goods from Canada and Mexico for the stated reason of stopping drug smuggling and illegal immigration. And Trump also expanded his 2018 steel and aluminum tariffs to 25% on all imports. What could tariffs do to the US economy? Nothing good, according to most economists. They say the tariffs would get passed along to consumers in the form of higher prices for autos, groceries, housing and other goods. Corporate profits could be lower and growth more sluggish. Trump maintains that more companies would open factories to avoid the taxes, though that process could take three years or more. Read more. Of note: How are other nations thinking about the new tariffs? Most foreign leaders see them as destructive for the global economy, even if they are prepared to impose their own countermeasures. Canadian Prime Minister Mark Carney – whose country already has announced retaliatory tariffs – has said Trump's tariff threats had ended the partnership between his country and the U.S. Musk hands out $1 million payments after Wisconsin Supreme Court declines request to stop him Elon Musk gave out $1 million checks on Sunday to two Wisconsin voters, declaring them spokespeople for his political group, ahead of a Wisconsin Supreme Court election that the tech billionaire cast as critical to Trump's agenda and 'the future of civilization.' 'It's a super big deal,' he told a roughly 2,000-person crowd in Green Bay on Sunday night, taking the stage in a yellow cheesehead hat. 'I'm not phoning it in. I'm here in person.' Musk and groups he supports have spent more than $20 million to help conservative favorite Brad Schimel in Tuesday's race, which will determine the ideological makeup of a court likely to decide key issues in a perennial battleground state. Musk has increasingly become the center of the contest, with liberal favorite Susan Crawford and her allies increasingly protesting Musk and what they say is the influence he wants to have on the court. 'I think this will be important for the future of civilization,' he said. 'It's that's significant.' He noted that the state high court may well take up redistricting of congressional districts, which could ultimately affect which party controls the U.S. House. Of note: A unanimous state Supreme Court on Sunday refused to hear a last-minute attempt by the state's Democratic attorney general to stop Musk from handing over the checks to two voters, a ruling that came just minutes before the planned start of the rally. Is Elon Musk skirting election law in the Wisconsin Supreme Court race? AP Decision Notes: What to expect in Wisconsin's spring election The Democratic base's anger puts some party leaders on shaky ground Democrats' anger isn't just directed at Trump, Musk and the 'Make America Great Again' movement; rank-and-file Democrats are mad at their own leaders and increasingly agitating to replace them. Arizona Democrats pushed out their party chair, and Georgia Democrats are on their way to doing the same. And Senate Minority Leader Chuck Schumer of New York postponed a book tour amid protests and calls from progressives that he face a primary challenge. The losing party after a presidential election often spends time in the wilderness, but the visceral anger among Democrats toward their party leaders is reaching a level reminiscent of the tea party movement that swept out Republican incumbents 15 years ago. Tuesday's elections could give national Democrats a boost. Wisconsin's officially nonpartisan state Supreme Court race has become a test of Musk's influence. And two U.S. House special elections in Florida feature Democrats who are outraising their Republican counterparts in sharply pro-Trump districts. IN PHOTOS Elon Musk tosses a cheesehead during a town hall Sunday, March 30, 2025, in Green Bay, Wis. (AP Photo/Jeffrey Phelps) ON THE CALENDAR Wisconsin's Supreme Court race is on Tuesday, along with special elections for two Florida congressional districts. On Wednesday, Trump has said that he will roll out a new round of import taxes, including 'reciprocal' tariffs to match the rates charged by other countries and account for other subsidies. 2025 COUNTDOWN


Associated Press
24-03-2025
- Politics
- Associated Press
Ground Game: Veterans become the face of Trump's cuts and AOC aims to broaden appeal
This newsletter was originally sent out via email to our Ground Game subscribers on March 24. You can subscribe at any time at By Meg Kinnard As congressional lawmakers scramble to respond to President Donald Trump's reduction of the federal government, one group is already taking a front and center role: military veterans. We take a look at the ways in which veterans have been affected. Welcome to this week's edition of AP Ground Game. Policy changes, but facts endure. AP delivers accurate, fact-based journalism to keep the world informed in every administration. Support independent reporting today. Donate. THE HEADLINES Military veterans are becoming the face of Trump's government cuts From layoffs at the Department of Veterans Affairs to a Pentagon purge of archives that documented diversity in the military, veterans have been acutely affected by the Republican president's actions. Veterans make up about 30% of the federal workforce, often tapping government benefits they earned with their military service. And most veterans voted for Trump last year – nearly 6 in 10, according to AP VoteCast. At a series of recent town halls, veterans angrily confronted Republican members as they defended the cuts made under Elon Musk's Department of Government Efficiency. Republican House Speaker Mike Johnson advised his members to skip the town halls and claimed that they were being filled with paid protesters, but some Republicans have been holding them and trying to respond to the criticism. Still, some elected Republicans have expressed unease with the seemingly indiscriminate firing of veterans, especially when they have not been looped in on the administration's plans. At a town hall on Friday, Texas Republican Rep. Dan Crenshaw — a veteran himself — told the audience, 'We're learning about this stuff at the speed of light, the way you are. I think there's been some babies thrown out with the bathwater here, but we're still gathering information on it.' Of note: In negotiations to allow passage of a Republican-backed government funding bill this month, Democrats secured a vote to amend the package to include language that would protect veterans from the federal layoffs. But it failed on party lines in part because the last-minute change would have ensured that Congress missed the deadline to avert a shutdown. The Pentagon's DEI purge: Officials describe a scramble to remove and then restore online content Pentagon is the latest agency to announce a leak investigation that could include polygraphs America's European allies try to pry their unspent money back from USAID Three European allies provided millions of dollars that the United States was supposed to spend for low-income countries. Then the Trump administration and Musk's government-cutters arrived. Government officials from Sweden, Norway and the Netherlands told The Associated Press that a combined $15 million they contributed for joint development work overseas has been parked at the U.S. Agency for International Development for months. After the Republican administration and DOGE cut USAID's funding and the bulk of its programs, the Europeans asked whether their money would be funneled to projects as expected or refunded. They have gotten no response. Other foreign governments also had money entrusted with USAID for distribution in a range of joint development projects at the time Trump ordered the funding freeze on Jan. 20, according to an official directly familiar with the matter who was not authorized to comment publicly and spoke on condition of anonymity. The worries point to the extent to which the new administration's abrupt cutoff of foreign assistance and canceling of contracts for humanitarian and development work are raising questions about Washington's financial reliability. They also show further strain between allies as Trump revamps American foreign policy. Read more. Second lady Usha Vance will visit Greenland as Trump talks up US takeover AOC tries to broaden her appeal within a Democratic base spoiling for a fight In a leaderless Democratic Party out of power in Washington, Rep. Alexandria Ocasio-Cortez has a message and a connection with a segment of liberals feeling disenchanted with both parties. Now, in her fourth term, the 35-year-old congresswoman is working to broaden her appeal beyond her progressive, anti-establishment roots. Hitting the road last week with Vermont Sen. Bernie Sanders for his 'Fighting Oligarchy' rallies, she is addressing people who disagree with her and reframing the divide in the Democratic Party not as progressive versus moderate, but as those going after Donald Trump and those being more cautious. Her instinct to brawl is well-matched to the restlessness of the Democratic base, much of which sees top party officials like New York Sen. Chuck Schumer as not confrontational enough. Ocasio-Cortez did not walk away from her progressive views but signaled openness to disagreement, saying her movement 'is not about partisan labels or purity tests,' but rather solidarity with the working class. Of note: About two-thirds of Democrats have a favorable opinion of Ocasio-Cortez and just 5% view her unfavorably, according to Gallup polling rom January. But the broader public is more divided. Among all adults, about 4 in 10 had a negative view of Ocasio-Cortez while about 3 in 10 had a positive view. In her home state, about 4 in 10 New York voters in the November election viewed her favorably while about the same share had an unfavorable opinion, according to AP VoteCast. Schumer says he won't step down as Senate Democratic leader despite government funding uproar Illinois Gov. JB Pritzker tries to chart a path for national Democrats to counter Trump IN PHOTOS 2025 COUNTDOWN OUTSIDE OF WASHINGTON


Associated Press
10-03-2025
- Business
- Associated Press
Ground Game: Trump's tariff uncertainty, transactional diplomacy and Bernie Sanders leadership
This newsletter was originally sent out via email to our Ground Game subscribers on March 10. You can subscribe at any time at By Meg Kinnard President Donald Trump is dismissing business concerns over the uncertainty caused by his planned tariffs on a range of American trading partners and the prospect of higher prices. We take a look at his latest comments. Welcome to this week's edition of AP Ground Game. Policy changes, but facts endure. AP delivers accurate, fact-based journalism to keep the world informed in every administration. Support independent reporting today. Donate. THE HEADLINES Trump downplays business concerns about uncertainty from tariffs The president last week imposed and then quickly paused 25% tariffs on imports from Mexico and Canada that sent markets tumbling over concerns of a trade war. Trump said in a taped interview with Fox News Channel's 'Sunday Morning Futures' that his plans for broader 'reciprocal tariffs' will go into effect April 2, raising them to match what other countries assess. Asked about the Atlanta Fed's warning of an economic contraction in the first quarter of the year, Trump seemingly acknowledged that his plans could affect U.S. growth. Still, he claimed, it would ultimately be "great for us.' The comments came after a week on Wall Street with wild swings dominated by tariff uncertainty and worries about the economy. When questioned whether he was expecting a recession in 2025, Trump responded: 'I hate to predict things like that. There is a period of transition because what we're doing is very big. We're bringing wealth back to America. That's a big thing.' He then added, 'It takes a little time. It takes a little time. Trump brushed aside concerns from businesses seeking stability as they make investment decisions. He said that 'for years the globalists, the big globalists have been ripping off the United States" and that now, "all we're doing is getting some of it back, and we're going to treat our country fairly." Read more. Of note: More tariffs are coming this week, with Commerce Secretary Howard Lutnick telling NBC's 'Meet the Press' that 25% tariffs on steel and aluminum imports will take effect Wednesday. Lutnick said Trump's threatened tariffs on Canadian dairy and lumber though would wait until April. Tens of thousands of Mexicans rally with president to celebrate US decision to delay tariffs Trump's transactional diplomacy is a driving force on the world stage Politics and presidents to a certain degree are all transactional. But Trump, who helped make himself a household name by burnishing an image as an intrepid real estate dealmaker, is taking it to another level. Money talks, and Trump on Thursday told reporters that he has decided to make Saudi Arabia the first overseas visit of his new term because the oil-rich kingdom has agreed to make a huge investment in the United States over the next four years. 'They've gotten richer, we've all gotten older. So I said, 'I'll go if you pay a trillion dollars, $1 trillion to American companies,'' Trump said. He also made the kingdom his first overseas stop during his first White House term after the Saudis promised $450 billion in U.S. investment. Trump is also keeping his eye on who appears to have the upper hand among other countries. In his dealings with Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin, Trump repeatedly said Putin has 'the cards' and Zelenskyy does not. Zelenskyy appeared to be making some strides in assuaging Trump after their recent rocky meeting in the Oval Office ended with Trump and Vice President JD Vance criticizing the Ukrainian leader for what they said was insufficient gratitude for the tens of billions of dollars in U.S. assistance provided in the three years since Russia invaded. Read more. China learned from Trump's first trade war and changed its tactics when tariffs came again Trump will lead task force preparing for 2026 World Cup Bernie Sanders steps into leadership of the anti-Trump resistance At 83 years old, Vermont Sen. Bernie Sanders is not running for president again. But the stooped and silver-haired democratic socialist has emerged as a leader of the resistance to Trump's second presidency. In tearing into Trump's seizure of power and warning about the consequences of firing tens of thousands of government workers, Sanders is bucking the wishes of those who want Democrats to focus on the price of eggs or 'roll over and play dead.' For now, at least, Sanders stands alone as the only elected progressive willing to mount a national campaign to harness the fear and anger of the sprawling anti-Trump movement. He drew a crowd of 4,000 in Kenosha, Wisconsin, on Friday and faced another 2,600 or so the next morning a few hours away in Altoona, Wisconsin, a town of less than 10,000 residents. And Sanders' crowd of 9,000 in suburban Detroit exceeded his own team's expectations, each stop intentionally designed in a swing U.S. House district represented by a Republican. Of note: Sanders' team waited in the early weeks of the Trump presidency to launch what they are now calling his 'stop oligarchy tour' to see if a high-profile Democrat would fill the leadership void. 'I'm not running for president and this is not a campaign,' Sanders told The Associated Press. 'You gotta do what you gotta do. The country's in trouble and I want to play my role.' House Republicans unveil bill to avoid shutdown and they're daring Democrats to oppose it Why should America worry about Trump? Try the price of eggs, say some Democrats IN PHOTOS U.S. Rep. Hakeem Jeffries, D-NY, U.S. Rep. Maxine Waters, D-Calif., Rev. Al Sharpton, Rev. Jesse Jackson and NAACP President Derick Johnson, from left, march across the Edmund Pettus bridge during the 60th anniversary of the march to ensure that African Americans could exercise their constitutional right to vote, Sunday, March 9, 2025, in Selma, Ala. (AP Photo/Mike Stewart) According to Commerce Secretary Howard Lutnick, 25% tariffs on steel and aluminum imports take effect Wednesday. 2025 COUNTDOWN


Associated Press
03-03-2025
- Politics
- Associated Press
Ground Game: Trump's big speech and Zelenskyy faces ire of Trump allies over Oval Office exchange
This newsletter was originally sent out via email to our Ground Game subscribers on March 3. You can subscribe at any time at By Meg Kinnard President Donald Trump appears before Congress Tuesday night for a big speech, which looks like a State of the Union address – but technically isn't. We take a look at what to look and listen for. Welcome to this week's edition of AP Ground Game. Policy changes, but facts endure. AP delivers accurate, fact-based journalism to keep the world informed in every administration. Support independent reporting today. Donate. THE HEADLINES What to watch when Trump gives his big speech to Congress First, where will Elon Musk be? The most powerful people in American government are usually on the dais during an event like Tuesday's speech, with the House speaker and the vice president — who doubles as the ceremonial leader of the Senate — sitting behind the president. But both of those leaders have largely been overshadowed by Musk, the billionaire entrepreneur overseeing the Department of Government Efficiency and serving as a top adviser to Trump. Maybe Musk will be in the gallery, where the president's special guests sit. Or maybe he'll be somewhere else? What does Trump say about Ukraine? It's been only a few days since the most dramatic encounter in the Oval Office in recent memory, with a deal involving critical mineral falling apart after Trump and Vice President JD Vance laced into Ukrainian President Volodymyr Zelenskyy over a perceived lack of respect. How do lawmakers behave? From South Carolina Republican Rep. Joe Wilson's 'You lie!' shout at President Barack Obama's congressional address in 2009, to President Joe Biden's own back-and-forth with Republicans, presidential speeches to Congress have become rowdier affairs in recent years. Read more. Of note: How long will Trump stick to the teleprompter? The president is in his element when he's delivering freewheeling remarks, bouncing from topic to topic in what he likes to call 'the weave.' But that's not usually how these kinds of speeches go. They're often carefully scripted – the kind of monologue that Trump might label 'BORING' in a post on Truth Social if he was watching it on television. Trump's next first speech to Congress is bound to have little resemblance to his last first one The Trump administration may exclude government spending from GDP, obscuring the impact of DOGE cuts Following Trump's lead, his allies lash out at Ukraine's Zelenskyy From Washington on Sunday, Trump's senior aides and allies lashed out at Zelenskyy as he attended a European summit in London to rally international support for his military's fight against the Russian invasion. Following Trump's lead, White House officials and Republicans in Congress used news show appearances to demand that Zelenskyy display more gratitude for U.S. support and an openness to potential war-ending concessions to Russian President Vladimir Putin. Some suggested Zelenskyy should consider resigning. White House national security adviser Mike Waltz said on CNN's 'State of the Union' that Zelenskyy's behavior at the White House was 'incredibly disrespectful.' House Speaker Mike Johnson, R-La., suggested that Zelenskyy may need to step aside, saying on NBC's 'Meet the Press' that, 'Either he needs to come to his senses and come back to the table in gratitude, or someone else needs to lead the country to do that.' Of note: The Trump allies offered little clarity as to what Zelenskyy and Ukraine could do after Friday's Oval Office meeting in which Trump and Vance berated him before canceling the signature of an economic agreement between Washington and Kyiv. The dispute leaves the future of that relationship in question, as well as the prospects for ending a conflict that began when the Kremlin invaded in February 2022. Of note: Significant changes to Medicaid are still on the table. They have to be for Republicans get the savings they need to pay for tax cuts. Work requirements, which could save as much as $109 billion over the next decade, seem to have solid support among GOP members, with some individual Republican-led states already moving to implement them. GOP pushes ahead with citizenship voting bill. Some state election officials say it's problematic US auto industry could be collateral damage in Trump's trade wars IN PHOTOS Britain's Prime Minister Keir Starmer, center, Ukraine's President Volodymyr Zelenskyy, left, and France's President Emmanuel Macron meet during the European leaders' summit to discuss Ukraine, hosted by Britain's Prime Minister Keir Starmer, at Lancaster House, London, Sunday March 2, 2025. (Justin Tallis/Pool via AP) On Tuesday, Trump gives the first joint address to Congress of his second term in office. 2025 COUNTDOWN