Because his other populist promises are broken, he has to keep this one.
.. His otherwise-unpopular presidency is floated on jobs and economic growth, and trade wars can be bad for both. So why not just drop the mercantilism and let the good times roll?.. The party’s senators generally have a better grasp of facts than the occupant of the White House, but the president often has a better grasp of politics. And the political truth is that Trump probably needs his tariffs, needs his trade war, to have any chance of re-election — precisely because it’s the only remaining economic issue where he’s stuck to his campaign promises and hasn’t just deferred to traditional Republican priorities... Those campaign promises, as everyone is well aware, were generally more populist than the official G.O.P. agenda: Trump promised
- middle-class tax cuts and a
- generous Obamacare alternative,
- he stiff-armed the entitlement reformers and
- talked up infrastructure spending, and he railed
- against free trade deals with every other breath.
And that populist branding was crucial to the electoral trade he made, which ceded a share of business-friendly suburbanites to the Democrats but reaped a crucial group of erstwhile Obama voters, mostly white and working class and concentrated in the Rust Belt and upper Midwest states, who ultimately handed Trump the presidency.
.. That was the story of 2016; the story since, though, is one of reversion to the older political order. Because Trump has mostly governed as a conventional Republican, a certain kind of conventional Republican has come home to him, keeping his support stable in the states that the Romney-Ryan ticket won easily in 2012. But for the same reason — because the infrastructure plan never materialized and the tax cut was a great whopping favor to corporate interests and the health care repeal-and-replace effort was a misbegotten flop — the swing voters he needs to hold the Midwest are now drifting away... Certainly the Republicans criticizing him on trade aren’t offering him such a path: Their overall vision is the same tired G.O.P. orthodoxy that went down to defeat in 2008 and 2012, and that Trump himself crushed in the last primary campaign... the fact that Trump’s tariffs are generally unpopular, even in Midwestern states, doesn’t matter politically nearly as much as their potential appeal to the narrow slice of blue-collar swing voters that he needs if he’s going to be re-elected. And their potential cost, for now, can be swallowed up by general economic growth or dealt with via cynical payoffs.. One of the strongest arguments for the countermajoritarian element in the Electoral College is that it provides a point of leverage for regional populations that have suffered particularly at the hands of an overreaching bipartisan consensus.
How Trump Won Re-election in 2020
A sneak peek at the Times’s news analysis from Nov. 4, 2020.
.. Extraordinary turnout in California, New York, Illinois and other Democratic bastions could not compensate for the president’s abiding popularity in the states that still decide who gets to live in the White House: Ohio, Pennsylvania, and Florida.
.. In exit poll interviews, Mr. Trump’s supporters frequently cited the state of the economy to explain their vote. “What part of Dow 30,000 do the liberals not understand?”
.. despite an economy that continues to struggle with painfully slow wage growth, spiraling budget deficits and multiplying trade wars that have hurt businesses as diverse as Ohio soybean farmers and California chipmakers.
.. their signature proposals — Medicare for all and free college tuition for most American families — would have been expensive and would require tax increases on families making more than $200,000. Mr. Trump and other Republicans charged they would “bankrupt you and bankrupt the country.”
.. Democrats sought instead to cast the election in starkly moral terms. Yet by Election Day, the charge that Mr. Trump is morally or intellectually unfit for office had been made so often that it had lost most of its former edge among swing voters.
.. “I don’t care if he lies or exaggerates in his tweets or breaks his vows to his wife, so long as he keeps his promises to me,”
.. citing the economy and Mr. Trump’s Supreme Court nominations as decisive for her vote. “And he has.”
.. Many of Mr. Trump’s supporters also said they felt vindicated by the conclusions of Robert Mueller’s report on Russia’s interference in the 2016 election. While the former F.B.I. director painted a damning portrait of a campaign that was riddled with Kremlin sympathizers and a candidate whose real-estate ventures were beholden to Russian investors, no clear evidence of collusion between Mr. Trump and Moscow ever emerged and the president was never indicted.
.. Democrats also failed to capitalize on, and may have been damaged by, winning back control of the House of Representatives, but not the Senate, in the 2018 midterms. Mr. Trump proved effective, if characteristically vitriolic, in making a foil of the House speaker, Nancy Pelosi.
.. Efforts to impeach the president mainly served to energize his base. Polling surveys suggested that wavering voters saw a Democratic Party more invested in humiliating the president than in helping them.
.. it did not take long for campaign aides to Senator Warren to offer damning appraisals of her performance as a candidate. Historical references abounded: The Children’s Crusade; Pickett’s Charge; the McGovern campaign of 1972. The common thread was that the campaign’s moral fervor repeatedly got the better of its message focus.
.. He got my party to lose its marbles.”
.. The lawmaker cited calls by party activists to abolish the U.S. Immigration and Customs Enforcement agency — calls the Warren campaign did not formally endorse but did little to refute — as emblematic of the party’s broader problems.
.. “What do Democrats stand for?” he asked.
- “Lawlessness or liberality?
- Policymaking or virtue signaling?
- Gender-neutral pronouns and bathrooms or good jobs and higher wages?”
“Democrats used to stand with the Working Man,” he tweeted Wednesday morning. “Now it’s the party of Abortion and Amnesty. All that’s missing is Acid. Sad!”
Trump Has No Idea What His Tariffs Have Unleashed for Farmers
His trade war will hurt business at a time when the rural population is aging, and it will probably hollow out farm communities.
.. The president is here to trumpet a $12 billion plan to aid American farmers. Why do they need aid? For Iowans, it’s because 33 percent of our economy is tied, directly or indirectly, to agriculture, and Mr. Trump recklessly opened trade wars that will hit “Trump country” — rural America — hardest and that have already brought an avalanche of losses. Indeed, the impact of his tariffs will probably be felt by family farms and the area for generations... Once those markets are gone, they will be difficult to recover. Commodity prices continue to drop, and good weather suggests an excellent crop is in the making, which will drive prices further down... Rural America is going to be hollowed out very quickly. Farms will become consolidated, and towns that are already in trouble will certainly die.Iowa’s farmers are aging, and younger farmers aren’t replacing them proportionately. Sixty percent of Iowa farmland is owned by people 65 years or older, and 35 percent of farmland is owned by people 75 or older.
.. the average age of the American farmer was 58.3 years. This isn’t because young people in rural America don’t want to farm; it’s because, if it isn’t already the family business, the costs are much too high to allow many of them to get into it.
.. losses and farm consolidation accelerated by Mr. Trump’s tariffs will make the devastating 1980s farm crisis look like a bump in the road as it drives a significant rural-to-city migration.
.. Smaller operations don’t have the capital to weather a trade war and will be forced to sell, most likely to larger operations.
.. Another casualty: our community banks. As farms get larger, farm loans are less likely to be local. A big operation with farms in dozens of counties that maybe even cross state lines probably won’t use local banks for credit.
When our community banks are gone, one of the major economic engines of our small towns will be gone.
.. At a certain point, populations won’t be enough to support rural hospitals and clinics, and they, too, will be gone. Rural hospitals are one of the major employers in the community. Even if you have a good manufacturing company in town, if you lose the hospital, they won’t be able to attract the employees they need.
.. Some of the farmers I speak with are unwavering in support of the president; they’d vote Republican even if Mr. Trump personally slapped the heck out of the preacher at the church potluck. But others are starting to recognize how the economic impact of the tariffs is hitting them personally.
.. Farmers take out lines of credit in the spring — usually due the following Jan. 1 — to pay for seed and other input costs, and then pay the loans back after harvest. Like any other loan, there are consequences to not paying, including losing the farm. Farmers are going to know before the midterm elections if they are going to be able to pay back loans.
.. The larger farm operations and the larger agribusinesses will be hovering, looking for any weakness, and ready to purchase smaller farms. And rest assured, when the Trump payments are made to farmers, the larger operations will be the ones that gobble them up.
.. most rural Republicans aren’t farmers, and many are Fox News devotees. So when they turn on Tucker Carlson or Sean Hannity, the hosts will likely extol the “virtues” of Mr. Trump’s farm policies and tariffs rather than the reality of their failures.
Trump’s trade war is economic suicide
When President Trump imposed a 25 percent tariff on steel imports last month, America’s largest nail manufacturer had little choice but to raise its prices. Mid Continent Nail Corporation quickly lost 50 percent of its orders as customers opted for cheaper suppliers. Within weeks, the firm had to lay off 60 workers. Up to 200 more might lose their jobs by the end of this month.
If the tariff isn’t lifted, the company could fold by September.
Mid Continent and its employees are early victims in Trump’s trade war. There will be many more if the president continues to raise import costs and anger our trading partners.
.. American consumers — not foreigners — will ultimately pay the bulk of the price for these trade obstructions. The economics are simple.Consider cars. Trump has long made clear that he wants Americans to pay higher prices for cars coming into the nation. On the campaign trail, he promised a tariff of 35 percent on “every car, every truck, and every part manufactured in Ford’s Mexico plant that comes across the border.” This past March, he threatened to impose tariffs on Europe’ automobile manufacturers.
But even cars produced domestically will rise in price thanks to the president’s economically illiterate trade interventions. As raw materials such as steel and aluminum rise in price, the cost of manufacturing each vehicle will rise. Manufacturers will pass those higher costs on to consumers.
Even beer and soda manufacturers are fretting about higher aluminum costs!