America

What economists don’t get about Trump’s tariffs

We already knew that most economists are quite bad at economic policy. Unfortunately, foreign policy appears not to be much of a strength either. Indeed, it appears most financial experts may not even know the difference, based on their criticism of Donald Trump’s recent tariff threats against Mexico, Canada and China. Of course, a nation can introduce tariffs to generate revenue, promote domestic production, shift international supply chains and ‘decouple’ itself from an undesirable trading partner. But a nation can also use tariffs as powerful leverage to make other states change their behaviour. That is a negotiating tariff, not an economic one, and it is designed not to minimise potential

How to solve a problem like the Chagos Islands

Very soon – as soon as the mutual courtesies now being exchanged between the new American President and his British counterpart are over – our government is likely to be at loggerheads with Donald Trump over our plan to cede the British Indian Ocean Territory (BIOT), the Chagos archipelago, to Mauritius, then take out a long and expensive lease on the island of Diego Garcia so we can secure the operational status of our base there. This accommodates an American base of great importance to US defence. The agreement with the new Mauritian government has yet to be signed. It has been widely criticised here in the United Kingdom as

Peter Mandelson’s rocky path to Trumpworld

The muddle about who’s to be the next British ambassador in Washington has been only a small part of the grandiose confusion which surrounds Donald Trump’s assumption of power. Sir Keir Starmer announced that Lord Peter Mandelson would bring ‘unrivalled experience to the role and take [the Anglo-American] partnership from strength to strength’, apparently without checking first that President Trump would be willing to accept him. The US President’s campaign manager, Chris LaCivita, said Mandelson was ‘an absolute moron’ who should ‘stay home’. He did nothing to improve his prospects when he described Trump as ‘reckless and a danger to the world’ How ambassadors get appointed is a mystery to

Will Trump remember his allies?

I had thought that having to be inaugurated indoors would have cramped Donald Trump’s style. Not so. The rhetoric with which he would have tried to fill the chilly air on the steps of the Capitol was even more exciting inside the crowded Rotunda. Only feet away from Trump, poor Joe Biden, Kamala Harris and behind them the Clintons shrank in their places, like captives paraded in ancient Rome after a military triumph. I experienced contradictory reactions. On the one hand, I felt a surge of joy that an American president at last has the confidence to do obviously right things – control the southern border, get out of the Paris

Freddy Gray

The Trump resistance is dead

The special relationship is dead, long live the special relationship. On Friday, at a ‘Stars and Stripes & Union Jack Celebration’, British and American right-wingers mingled gladly atop the Hay-Adams hotel, which overlooks the White House. Nigel Farage and co smoked cigarettes with their Republican brethren and shared Trump war stories. Dolled-up American girls took selfies with Liz Truss. And Steve Bannon showered Lord Glasman, the Labour peer, with admiration. The horseshoe theory has gone full circle. I bumped into Truss at the bar. ‘You’re a Gove shill,’ she told me, in that delightful, easygoing manner of hers. How did she think Kemi Badenoch was getting on, I asked, trying to

How to eat like a president

John F. Kennedy opted to serve New England lobster, Ronald Reagan a California-inspired garden salad – and James Buchanan 400 gallons of oysters. Held at Statuary Hall in the US Capitol, the inaugural luncheon for a new president is as much part of inauguration day as the swearing-in ceremony and the inaugural address.  Nixon enjoyed pineapple slices topped with cottage cheese and washed down with a glass of milk First time around, in 2017, Donald Trump’s inaugural meal featured dishes including Maine lobster and Gulf shrimp. But for those not on the guest list to find out what he serves tomorrow (McDonald’s ice cream, perhaps?), there are plenty of other

Which were the most destructive fires in history?

Swing states Where would Canada and Greenland rank if they became US states? – Canada would be, by far, the largest state. In fact, at 3,855,100 square miles it is marginally larger than the current US (3,796,742 square miles). – It would also be the largest state by population, with 41.5m inhabitants, putting it ahead of California (39.4m). – It would have the third largest GDP, at $2.58tn, behind California ($4.08tn) and Texas ($2.69tn). – Unless Canada also joined, Greenland would become the largest US state, at 836,330 square miles, ahead of Alaska (665,384 square miles). – It would be the smallest in terms of population, its 56,600 inhabitants less

Am I a MAGA icon?

‘Traitor!’ the woman yelled at me the instant I entered the beautifully decorated living room of a famous actress. It was a Twelfth Night celebration, and the room was full of glamorous friends and acquaintances. ‘What?’ I replied, bemused. ‘That photo!’ she screamed, ‘How could you take that picture with all those Republicans?’ Over Christmas I had been to a dinner hosted by some good friends who happen to be Republicans. This, it turned out, was a great crime. I am a Tory but have many socialist friends and we get along just fine and have hearty and amusing conversations. Here in America, though, it seems Democrats and the Republicans

Freddy Gray

Empire of Trump: the President’s plan to make America greater

‘The mission of the United States is one of benevolent assimilation,’ said William McKinley, America’s 25th commander-in-chief, who happens to be one of Donald Trump’s favourite presidents. Trump, who barely dodged a bullet in 2024, shares a number of traits with McKinley, who was assassinated in 1901: Scottish blood, ferocious work ethic, an affinity with the super-rich that somehow appeals to the working classes, a faith in tariffs as a means of safeguarding industry, and a willingness to expand America’s empire to boost future prosperity. ‘I keep speaking to Europeans and British embassy people and telling them he really means this stuff’ ‘I’m talking about protecting the freeworld,’ said Trump

J. D. Vance is the future of MAGA

The vice-presidency of the United States has always been the butt of jokes. ‘I don’t plan to be buried until I’ve died,’ quipped Daniel Webster when he declined William Henry Harrison’s offer of the role. John Nance Garner, who served as FDR’s vice-president, dismissed it as ‘not worth a bucket of warm piss’. Even John Adams, the first to hold the office, was equivocal: ‘I am Vice-President. In this I am nothing, but I may be everything.’ He may prove to be a more effective standard bearer for Trumpism than Trump himself That ‘everything’ has proven elusive. Fewer than a third of vice-presidents have gone on to occupy the Oval

The architectural provocations of I.M. Pei

When first considering architects for the new Louvre in 1981, Emile Biasini, the project’s head, liked that I.M. Pei was both ‘Chinese as well as American: Chinese in his respect of the past, and American in the way of radical solutions’. His controversial glass pyramid ignited much debate about which side won out. These entanglements, between traditionalism and modernity, East and West, would come to characterise both Pei’s Louvre and his six-decade career. After a seven-year gestation, the first comprehensive retrospective of the architect, at Hong Kong’s M+ museum, finally offered a longer view. Despite calling America home, Pei felt a duty to help China find its own architectural language

The growing wealth gap between Britain and the US

New year predictions are always rash, but it feels as though one aspect of the story of 2025 can already be written. The gap between the economic fortunes of the US and Europe will continue to widen – and Britain will be trapped very much on the European side of the divide. In three weeks’ time the US will have a new leader, one who will unashamedly put the interests of US business first. Donald Trump’s threat of punitive tariffs may or may not be realised (as in his first term, it could prove to be a negotiating tool to press for the removal of restrictions on US exports and

Why does James Baldwin matter so much now?

James Baldwin matters. To veteran Baldwin admirers, his renewed prominence comes as a surprise after decades of indifference. This year, in the centenary of his birth in Harlem, Baldwin has seemed to matter more than at any time since his heyday, when he combined the roles of writer and civil rights spokesman. Between 1961 and 1964 he produced three bestselling books – two collections of essays and the novel Another Country – as well as a stylish collaboration with the photographer Richard Avedon and a Broadway play. In May 1963, Time put him on its cover (Martin Luther King had to wait until the following January). Life called him ‘the

Elon Musk is wrong about the Roman Empire

I was in Washington D.C. during The Election, living halfway between the Capitol and White House. Concerned friends suggested I move to some boutique hotel in Virginia for election week, in case of ‘trouble’ in Washington. Or at least, they said, I should stock up the freezer, as I might not be able to get safely to the shops for several days if the results were bitterly contested. I took the freezer option (plus an enhanced cellar) and planned a week of working from home, to follow the news from each swing state, fortified by my supplies. It was all for nothing. By the time I woke up on the

Portrait of the year: Subpostmasters scandal, Rishi in the rain and Syrian rebels topple regime

January After an ITV drama, the government suddenly proposed to do something about the unjust prosecution of sub-postmasters. Junior doctors went on strike. There was a surge in scabies. The King went to hospital and was later found to have cancer. The Princess of Wales was in hospital with what turned out to be cancer. Five migrants died boarding a boat for England off Wimereux. In Beirut, Israel killed the deputy head of Hamas. Israel said that it expected war in Gaza to continue throughout the year. The United States, with token British support, struck sites in Yemen to deter Houthi attacks on shipping. Russia mounted the biggest missile bombardment

Portrait of the week: Labour’s ‘plan for change’, falling productivity and 20,000 wolves in the EU

Home The Labour government announced a ‘Plan for Change’ that it refused to call a reset. Sir Chris Wormald was named Cabinet Secretary. In his Guildhall speech at the Lord Mayor’s banquet, Sir Keir Starmer, the Prime Minister, said that ‘the idea that we must choose between our allies, that somehow we’re with either America or Europe, is plain wrong’. He said ‘we must continue to back Ukraine’ against Vladimir Putin as something ‘deeply in our self-interest’. With the arrival of another 122 people on 1 December, more than 20,000 had crossed the Channel in small boats since Labour entered office. A group of about 60 Sri Lankan Tamil asylum-seekers

What Scott Bessent’s appointment means for Trump 2.0

How rare it is to be given a second chance. That’s what the American people have handed Donald Trump. His second shot at the presidency means avoiding past mistakes, which in TrumpWorld means finally harnessing the full power of the state. Even in the last year of his first term, Trump was struggling to fill all the political appointment vacancies he had at his disposal. This was the consequence of never developing a real plan for governing that went beyond chanting ‘Drain the swamp’. Elon Musk talked down Bessent as the ‘business-as-usual choice’, but that’s what markets are looking for This time round, things are going to be different. Trump

Musical chairs at Mar-a-Lago

Welcome to the United States of Disruption. From his ‘Winter White House’ in Mar-a-Lago, Florida, Donald Trump has been busy lobbing hand-grenade cabinet appointments in the direction of Washington and watching on happily as each one blows up in a variety of stunning ways. Explosiveness is the point. ‘Personnel is policy,’ Trump’s transition team like to tell reporters with a wink. What they mean is that the second administration is setting itself up to be even more radical and incendiary than the first. The outsiders are in, the insiders are out, and the old world is driving itself mad trying to figure out what’s going on. It’s a mistake to

Welcome to life on Planet Elon

On 13 July this year, an assassin’s bullet grazed the ear of Donald Trump as he turned his head on stage in Butler, Pennsylvania. The whole world saw it and his response: ‘Fight, fight, fight.’ For Elon Musk, this was not just a news event but a galvanising and clarifying moment. He immediately posted a video of the shooting to X and wrote: ‘I fully endorse President Trump and hope for his rapid recovery.’ Musk is different from most people. For him, going all-in really means going all-in. When Trump returned to Butler last month, he was joined on stage by the billionaire. Musk is now one of the most

Why Trump changed his tune on crypto

This column comes to you from Atlanta, Georgia, where but for one giant ‘Trump Stands Up For Families’ billboard and some Harris-Walz placards in the leafier suburbs, you would hardly know there had just been an election. I was hoping to report a whiff of teargas after a contested result, but no. Urban Atlanta voted for Harris but rural Georgia was so solid for Trump that nothing was left to argument. The chattering classes on the east and west coasts may be traumatised, but for plainer folks – with a sense of relief that no violent disruption kicked off – it’s back to daily life and business as usual. Or