The Ugly

In climate science, the US is now a rogue state (Financial Times)

The message of climate failure does not play well with the Trump administration that has consistently minimised or rubbished the threat of global warming and which rejected the Paris climate accord. As a result, environmental data now hangs in the balance.

Automakers can’t figure out what the hell is going on with Trump’s tariffs (The Verge)

It started last week with Tesla, followed quickly by General Motors, Mercedes-Benz, and Volvo. Automakers across the spectrum are pulling their guidance for the year because they can’t figure out how to accurately plan for the future thanks to President Donald Trump’s ever-shifting tariffs.

The auto industry is paralyzed by uncertainty. Stellantis, the parent company of Jeep, Dodge, and Ram, also recently scrapped its profit guidance for the year, with Chief Financial Officer Doug Ostermann telling analysts, “Most of us are in a period of waiting for a bit more clarity,” according to Reuters.

Trump boasts he could free Abrego Garcia from El Salvador, but shamelessly, he says he won’t (NYT)

Trump’s comments not only undermined previous statements by his top aides, but were a blunt sign of his administration’s intention to double down and defy the courts.

US economy shrank in the first quarter — the first time since 2022 (CNBC / WSJ / Quartz / NDP / U.S. Bureau of Economic Analysis)

  • Stock market falls
  • GDP fell at a 0.3% annualized pace, largely pushed by a surge in imports ahead of President Donald Trump’s tariffs.
  • Imports soared 41.3%, driven by a 50.9% increase in goods. Imports subtract from GDP, so the contraction in growth may not be viewed as negatively given the potential for the trend to reverse.
  • The report provided cross signals for the Fed. While the negative growth number might push the central bank to consider lowering interest rates, inflation readings could give policymakers pause.

Despite Trump’s promised cuts, US spent about C$305 billion (US$220 billion) more in first 100 days than last year (CBS)

In fact, the government is now spending more, day to day, than was spent in nine of the last 10 years. The exception: 2021, when the government was spending trillions to fight the coronavirus pandemic and prevent an economic disaster.

Trump’s 100 days: US President’s tariffs triggered global trade turmoil (France 24)

Trump’s cuts to scientific research could cause long-run economic damage equivalent to a major recession (NYT)

Economists have warned that such cuts could undermine American competitiveness in areas like vaccine development, artificial intelligence and quantum computing, and could slow growth in income and productivity in the long term. The private sector can’t fully replace government dollars, they argue, because basic research is too risky and takes too long to pay off to attract sufficient private investment.

The study, by a team of economists at American University’s Institute for Macroeconomic and Policy Analysis, is among the first efforts to quantify the risks posed by Mr. Trump’s cuts.

Republicans pull back a proposal to create a new US$20 fee on most passenger cars to help pay for Trump administration priorities may already be in danger thanks to Republicans loathe to create a new fee. (Politico / Politico)