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Trump’s tariffs and policies are putting America’s economy at risk: Consumer Technology Association CEO

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According to President Donald Trump and administration leaders, tariffs on imported goods are like medicine: bitter in the short term, but important for the long-term health of the U.S. economy. In fact, U.S. Treasury Secretary Scott Bessent has said the economy may go into a “detox period” amid spending cuts and a transition to more domestic manufacturing. But is the short-term pain going to deliver real benefits for our country?

Polling shows that Americans are skeptical. February marked the biggest monthly drop in consumer confidence since the COVID era, and declines continued into March. In a recent survey from Wells Fargo, two-thirds of Americans said they’re cutting back on spending and almost half reported putting life plans on hold. Falling stock market portfolios and a drumbeat of bad economic news encourages belt-tightening by consumers and businesses.

Those worries also hurt American businesses. As demand drops, CEO confidence has fallen dramatically. On again-off-again tariffs on imports combined with hostility from Trump towards our closest allies, retaliatory tariffs, and the strong dollar make it more expensive to make and sell goods. Canadians are cutting back on travel to the U.S., and one major airline executive told me that incoming travel bookings into the U.S. are down over 10%. For me and many Americans, it is sad to see Trump turn on our closest friends. More, it means U.S. hotels, restaurants, and stores will lose foreign visitors. These visitors matter because they add to our economic coffers and require scant government services.

The emotional impact of Trump’s policies also shapes our national mood and optimism, limiting investment and spending. It’s no surprise that Americans are cutting back on their vacation plans, too. President Ronald Reagan’s vision of a “shining city on the hill” has shifted to Trump’s vision of America as an isolated castle with an iron curtain, despite the hit to the pocketbooks of millions of Americans.

If Trump follows through on his promise to add additional tariffs, expect both our economy and the national mood to get worse. Tariffs are consumer taxes. They make prices go up, stoking inflation. Not everything can be made in the United States and not everything should be. Ultimately, we benefit from low-cost consumer goods made elsewhere. Whether it’s cars or electronics, food or factory equipment, we rely on the efficiency and lower prices of global trade to keep prices low for American consumers and businesses.

That approach frees Americans up to do what we do best: inventing, creating and producing some of the world’s most innovative products. Sadly, tariffs on inputs hurt American manufacturers too. The data is overwhelming that the tariffs imposed on steel and aluminum during Trump’s first term created a few thousand jobs in those industries, but raised costs and hurt hundreds of thousands of American workers in industries that use these products. Ultimately these tariffs along with the others that Trump is imposing will together cost American consumers billions if not trillions in higher prices.

Doubling down on tariffs also risks “stagflation,” a combination of rising prices (inflation) and slowing economic growth (stagnation). Higher tariffs are already creating “cost shocks” for businesses, which for many will be passed on to consumers. At the same time, reduced consumer spending and business investment due to economic uncertainty slows growth. A stagflationary environment would be bad for everyone, but especially the middle- and lower-income Americans who can least afford higher prices and the disruption of a lost job.

Allowing the uncertainty around tariffs to drag on for weeks and months will continue to harm Americans and our economy. For the sake of our country, President Trump should use his leverage with our trading partners strategically and find a quick off-ramp. That could include the announcement of major investments in U.S.-based factories, supporting a long-term transition towards more domestic manufacturing. An off-ramp would also allow him to shift to a low-interest-rate strategy and give Americans what they voted for in November: lower prices and cooler inflation that can propel the economy, investment, and construction, encourage growth, and reduce interest payments on the national debt. There’s no time to waste.

The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

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‘We won’t be silent’ — Teachers vow legal challenges after Trump moves to slash Department of Education

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  • President Donald Trump signed an executive order to crack open the Department of Education on Thursday. The American Federation of Teachers and the National Education Association condemned the move, and have promised lawsuits. Earlier this month, the department laid off nearly half of its staff. 

President Donald Trump signed an executive order that would dissolve the U.S. Department of Education (DOE). While the agency cannot be shuttered without congressional approval, Trump signed the order saying that it would “begin eliminating the federal Department of Education once and for all.”

The order states taxpayers spend $60 billion annually on federal school funding marshalled and distributed by the DOE even though the agency “does not educate anyone.” In the order, Trump claimed its closure would help children and families “escape a system that is failing them.” Trump directed Secretary of Education Linda McMahon to turn education authority over to states and local communities while ensuring “uninterrupted delivery of services, programs, and benefits on which Americans rely.” It also directs McMahon to terminate programs promoting “gender ideology,” and withdraw funding from programs and activities that illegally discriminate based on diversity, equity, and inclusion. The order claimed that the DOE maintains a public relations office with 80 staff members at a cost of $10 million a year. 

In a quick rebuke, American Federation of Teachers President Randi Weingarten said the 1.7-million member union would, “see you in court,” in a statement to Fortune.

The DOE is charged with oversight of the country’s $1.6 trillion federal student loan fund, and oversees and sets school policies for early childhood, primary, and secondary schools through financial funding and monitoring. The agency’s remit includes ensuring equal access to education for all students including those from low-income, disabled, and non-native English speaking homes. Established in 1979, the DOE supervises 50 million students in public school systems across the country.

Earlier this month under the direction of Elon Musk’s Department of Government Efficiency, the DOE laid off 2,183 employees, nearly half of its January workforce of more than 4,100.

“Now, Trump is at it again with his latest effort to gut the Department of Education programs that support every student across the nation,” National Education Association President Becky Pringle said in a statement to Fortune

Pringle claimed cuts to the DOE would increase class sizes, cut job training programs, eliminate special education for those with disabilities, axe civil rights protections and increase college tuition prices, putting it “out of reach for middle class families.”

“We won’t be silent as anti-public education politicians try to steal opportunities from our students, our families, and our communities to pay for tax cuts for billionaires,” Pringle said.

Republican lawmakers have long tried to terminate the department since the 1980s, but in recent years that campaign has garnered traction as tensions mounted after federal mandates and policies in response to COVID-19.

“In moving forward with this, Trump is ignoring what parents and educators know is right for our students,” Pringle said.

This story was originally featured on Fortune.com

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‘We won’t be silent’ — Teachers vow legal challenges after Trump moves to slash Department of Education

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on

By

  • President Donald Trump signed an executive order to crack open the Department of Education on Thursday. The American Federation of Teachers and the National Education Association condemned the move, and have promised lawsuits. Earlier this month, the department laid off nearly half of its staff. 

President Donald Trump signed an executive order that would dissolve the U.S. Department of Education (DOE). While the agency cannot be shuttered without congressional approval, Trump signed the order saying that it would “begin eliminating the federal Department of Education once and for all.”

The order states taxpayers spend $60 billion annually on federal school funding marshalled and distributed by the DOE even though the agency “does not educate anyone.” In the order, Trump claimed its closure would help children and families “escape a system that is failing them.” Trump directed Secretary of Education Linda McMahon to turn education authority over to states and local communities while ensuring “uninterrupted delivery of services, programs, and benefits on which Americans rely.” It also directs McMahon to terminate programs promoting “gender ideology,” and withdraw funding from programs and activities that illegally discriminate based on diversity, equity, and inclusion. The order claimed that the DOE maintains a public relations office with 80 staff members at a cost of $10 million a year. 

In a quick rebuke, American Federation of Teachers President Randi Weingarten said the 1.7-million member union would, “see you in court,” in a statement to Fortune.

The DOE is charged with oversight of the country’s $1.6 trillion federal student loan fund, and oversees and sets school policies for early childhood, primary, and secondary schools through financial funding and monitoring. The agency’s remit includes ensuring equal access to education for all students including those from low-income, disabled, and non-native English speaking homes. Established in 1979, the DOE supervises 50 million students in public school systems across the country.

Earlier this month under the direction of Elon Musk’s Department of Government Efficiency, the DOE laid off 2,183 employees, nearly half of its January workforce of more than 4,100.

“Now, Trump is at it again with his latest effort to gut the Department of Education programs that support every student across the nation,” National Education Association President Becky Pringle said in a statement to Fortune

Pringle claimed cuts to the DOE would increase class sizes, cut job training programs, eliminate special education for those with disabilities, axe civil rights protections and increase college tuition prices, putting it “out of reach for middle class families.”

“We won’t be silent as anti-public education politicians try to steal opportunities from our students, our families, and our communities to pay for tax cuts for billionaires,” Pringle said.

Republican lawmakers have long tried to terminate the department since the 1980s, but in recent years that campaign has garnered traction as tensions mounted after federal mandates and policies in response to COVID-19.

“In moving forward with this, Trump is ignoring what parents and educators know is right for our students,” Pringle said.

This story was originally featured on Fortune.com

Continue Reading

Tech News

‘We won’t be silent’ — Teachers vow legal challenges after Trump moves to slash Department of Education

Published

on

By

  • President Donald Trump signed an executive order to crack open the Department of Education on Thursday. The American Federation of Teachers and the National Education Association condemned the move, and have promised lawsuits. Earlier this month, the department laid off nearly half of its staff. 

President Donald Trump signed an executive order that would dissolve the U.S. Department of Education (DOE). While the agency cannot be shuttered without congressional approval, Trump signed the order saying that it would “begin eliminating the federal Department of Education once and for all.”

The order states taxpayers spend $60 billion annually on federal school funding marshalled and distributed by the DOE even though the agency “does not educate anyone.” In the order, Trump claimed its closure would help children and families “escape a system that is failing them.” Trump directed Secretary of Education Linda McMahon to turn education authority over to states and local communities while ensuring “uninterrupted delivery of services, programs, and benefits on which Americans rely.” It also directs McMahon to terminate programs promoting “gender ideology,” and withdraw funding from programs and activities that illegally discriminate based on diversity, equity, and inclusion. The order claimed that the DOE maintains a public relations office with 80 staff members at a cost of $10 million a year. 

In a quick rebuke, American Federation of Teachers President Randi Weingarten said the 1.7-million member union would, “see you in court,” in a statement to Fortune.

The DOE is charged with oversight of the country’s $1.6 trillion federal student loan fund, and oversees and sets school policies for early childhood, primary, and secondary schools through financial funding and monitoring. The agency’s remit includes ensuring equal access to education for all students including those from low-income, disabled, and non-native English speaking homes. Established in 1979, the DOE supervises 50 million students in public school systems across the country.

Earlier this month under the direction of Elon Musk’s Department of Government Efficiency, the DOE laid off 2,183 employees, nearly half of its January workforce of more than 4,100.

“Now, Trump is at it again with his latest effort to gut the Department of Education programs that support every student across the nation,” National Education Association President Becky Pringle said in a statement to Fortune

Pringle claimed cuts to the DOE would increase class sizes, cut job training programs, eliminate special education for those with disabilities, axe civil rights protections and increase college tuition prices, putting it “out of reach for middle class families.”

“We won’t be silent as anti-public education politicians try to steal opportunities from our students, our families, and our communities to pay for tax cuts for billionaires,” Pringle said.

Republican lawmakers have long tried to terminate the department since the 1980s, but in recent years that campaign has garnered traction as tensions mounted after federal mandates and policies in response to COVID-19.

“In moving forward with this, Trump is ignoring what parents and educators know is right for our students,” Pringle said.

This story was originally featured on Fortune.com

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