A Rift Between Trump and Bezos?
Reporting from the White House, Bernd Debusmann Jr. highlights an emerging clash between Amazon and Donald Trump. Historically, the relationship between Trump and Amazon's billionaire owner, Jeff Bezos, has been complex. Initially, Trump publicly criticized Bezos, referring to the Washington Post as the "Amazon Washington Post." However, after his election victory, Bezos congratulated Trump, expressing hope for his success in uniting the country. Notably, Amazon contributed $1 million to Trump's inauguration fund, indicating a brief thaw in their relationship.
Recently, tensions have resurfaced, as the White House accused Amazon of engaging in a "hostile and political act" by planning to display tariff costs on its products. This accusation may signal a cooling of relations between Trump and Bezos, with Trump remaining silent on the matter. During a White House briefing, press secretary Leavitt emphasized that this action by Amazon aligns with a pattern of hostility toward the administration.
In response to Amazon's reported decision to showcase tariff impacts on consumer prices, Leavitt, representing Trump's team, condemned the initiative as politically motivated. She presented what appeared to be a news article featuring a prominent image of Bezos, alleging that Amazon collaborates with a "Chinese propaganda arm." The White House briefing concluded with Leavitt announcing that Trump would hold a political rally in Michigan later that evening, shortly after meeting Democratic Governor Gretchen Whitmer.
As the conversation shifted to the ongoing trade war between China and the US, Treasury Secretary Scott Bessent described the current tariffs on Chinese goods as unsustainable for China. He claimed that data suggested up to 10 million job losses could occur in China, though he did not provide specifics on the source of this data. Bessent emphasized that the responsibility lies with China to adjust its tariffs, noting that the US imports significantly more from China. Current tariffs on Chinese exports to the US can reach as high as 245%, while China has retaliated with a 125% levy on American imports.
Chinese President Xi Jinping's administration has expressed openness to dialogue but warned that it would "fight to the end" if necessary. This context is crucial for understanding the dynamics of the trade war between the world's two largest economies.
During the briefing, reporters questioned Bessent about Trump's recent tariffs imposed globally. The key inquiry revolved around whether the White House aims to generate revenue from these tariffs or utilize them as leverage for new trade agreements. Bessent responded that it is a combination of both, suggesting that revenue generated from tariffs could potentially provide tax relief for American citizens.
Another critical indicator of a president's impact is the performance of the US stock market during their first 100 days in office. Stock indexes reflect the total value of listed companies, often sensitive to government policies. In Trump's case, the market reacted negatively after he announced significant tariff escalations, leading to a drop in stock values. Although he has rolled back some tariffs, uncertainty regarding policy changes continues to loom over the market.
Polling data provides insights into Trump's approval ratings during his first 100 days. Gallup's recent survey indicates that Trump is the only post-war president to maintain less than half of the public's support at this milestone. Currently, Trump's approval rating stands at 44%, a slight improvement from 41% at the same point in 2017. However, party loyalty reveals a stark divide: 90% of Republicans support Trump, contrasting sharply with only 4% of Democrats.
Questions about the UK’s relationship with the US arose, particularly concerning the possibility of leveraging military bases on British soil for tariff exemptions. This inquiry touches on the historical special relationship between the UK and the US, established through various agreements. The UK, while seeking exemptions from tariffs, faces the challenge of negotiating amidst Trump's administration, which has expressed dissatisfaction with Europe’s perceived subsidization of security.
Despite the high tariffs imposed by the US, questions linger about why countries continue to engage in trade with America. The reality is that the US constitutes over 10% of global GDP, making it a vital trading partner. Major US exports, such as soybeans and oil, are not easily replaceable, and discontinuing trade would have profound implications for economies worldwide. However, the Trump trade wars have prompted nations to seek alternative markets, a process that may involve higher costs for consumers.
In his first 100 days, Trump has signed 142 executive orders, a significant number compared to his predecessors. Executive orders allow the president to enact policies without congressional approval, and many of Trump's orders have reversed prior administration policies. Notable areas of focus include immigration, diversity initiatives, and environmental regulations.
The concept of evaluating a president's first 100 days in office, popularized by Franklin D. Roosevelt, serves as a barometer for their success and the fulfillment of campaign promises. Although traditionally seen as a honeymoon period, polling suggests that this has not held true for Trump thus far. This analysis will continue as the implications of his administration unfold.
