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Trump isn’t canceling travel, golf, or his ballroom, even with the government shuttered and 750,000 furloughed federal employees

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In shutdowns past — including during Trump’s first term — presidents normally scaled back their schedules. With staffers deemed “non-essential” sent home, the White House often sought to appear sympathetic to Americans affected by disruptions to health care, veterans benefits and other key services.

The current shutdown has left around 750,000 federal employees furloughed and others working without pay. Funding for the Supplemental Nutrition Assistance Program, or SNAP, is lapsing after Friday — affecting 1 in 8 Americans who rely it to help buy groceries.

Nonetheless, it’s been mostly business as usual for Trump over the past 29 days.

“It’s like that country song: ‘Sometimes falling feels like flying for a little while,’” said Paul Begala, a Democratic strategist and former adviser to President Bill Clinton, who presided over two shutdowns between 1995 and 1996. “They seem to be like, ‘So far, so good, man.’”

Ballroom building, golf, fundraisers and trips

Trump is on a six-day swing through Asia, after a recent, whirlwind Middle East visit to celebrate a U.S.-brokered ceasefire deal in Israel’s war with Hamas in Gaza. He hosted a White House fundraiser for major donors to his $300 million ballroom that has seen construction crews tear down the East Wing, and held another fundraiser at his Mar-a-Lago estate in Florida.

Members of the Cabinet have similarly hit the road. Vice President JD Vance traveled to Israel, Homeland Security Secretary Kristi Noem went to Portland, Oregon, to decry protests there, and Defense Secretary Pete Hegseth got a firsthand look at TOPGUN, the U.S. Navy’s elite fighter weapons school in Nevada.

Only 32% of the staff in the Executive Office of the President were set to be furloughed during the current shutdown, according to data in a contingency report from the White House budget office. That’s down from 61% during the last shutdown in 2018-19, during Trump’s first term. About half of the Executive Mansion’s team of housekeepers, ushers, valets and butlers are currently working. Last time, more than 70% were furloughed.

It’s often been hard to tell a shutdown is happening with so many staffers remaining at their desks.

“I don’t even know if they’re supposed to be working, but they wouldn’t miss a day,” Trump said during an event last week.

It’s a departure from Trump’s first term, when he cut out weekend golf games and canceled a planned trip to Mar-a-Lago for Christmas during the 2018 shutdown, which stretched into the new year. He made a surprise visit to visit troops in Iraq then, but nixed plans to go to the Swiss alps for the World Economic Forum.

When hosting Clemson University football players to celebrate their NCAA football championship, Trump brought in burgers and fries from McDonald’s, Burger King and Wendy’s and pizza from Domino’s because of White House staff furloughs.

This time, the president had Republican senators over for a lunch that featured burgers, too. But staff made them. “They do great food at the White House,” Trump said.

‘A smarter approach’

Barreling ahead like there’s no shutdown has some political advantages for Trump, allies say: It allows him to look presidential while avoiding congressional bickering.

“It’s a much smarter approach,” said Marc Short, chief of staff to former Vice President Mike Pence.

In Trump’s first-term shutdown, he rejected a congressional compromise to force the government to close — an attempt to win funding for a wall along the U.S.-Mexico border. Then, he named Pence as lead negotiator to end the shutdown while involving his son-in-law Jared Kushner — creating the visual of the pair having to go to Capitol Hill.

“The first go-around, he was pretty clear with cameras rolling: He said he wanted the shutdown. He claimed ownership,” Short said. This time? “The White House has been clear about not owning it.”

Back in 1995, Begala recalled talking strategy with Clinton during a sweaty summer run at Fort McNair in Washington, and telling the president that Republican House Speaker Newt Gingrich and his party “think they can roll you” to make cuts to Medicare by threatening a shutdown.

Clinton responded: “‘My favorite movie’s ‘High Noon,’” Begala recalled, referring to the 1952 Western in which a marshal stands up to outlaws. ”‘They do that — then I just have a Gary Cooper, High Noon moment. That’s easy.’”

When Gingrich later came to the White House to negotiate, Begala said Clinton refused to budge, even though some advisers urged him to cut a deal. Voters ultimately blamed congressional Republicans more than the White House for the government closing, and Clinton was easily reelected in 1996.

“That could have really gone badly for Clinton,” Begala said. “But he did understand that standing strong and having a Gary Cooper moment would be really good for him.”

Past White Houses highlighted shutdown effects

During the 16-day government shutdown of 2013, President Barack Obama scrapped a four-country Asia trip and skipped the swanky Congressional Hispanic Caucus gala. His schedule featured events meant to show the effects of the shutdown, including visiting a Maryland construction firm that benefited from the kind of federal business loans being jeopardized with the government shuttered.

In 2019, as that shutdown dragged on, Trump’s White House officials acknowledged feeling pressure to end it, worried that Trump’s polling numbers could suffer. This time, the administration’s public messaging has been to blame the Democrats while signaling that it’s prepared to wait — even warning of coming travel delays during the Thanksgiving holidays.

“President Trump is continuing to work night and day on behalf of American people,” White House spokesperson Abigail Jackson said in a statement. “The entire administration, including the president, will continue highlighting the workers and families who are suffering because of the Democrats’ decision to shut down the government.”

Bill Daley, a White House chief of staff to Obama in the years prior to the 2013 shutdown, said Trump isn’t acting like he’s feeling political heat to reopen the government, even before next Tuesday’s gubernatorial elections in Virginia and New Jersey — both home to sizable federal workforces.

“My guess is, he thinks it helps him,” Daley said, “until — and I don’t know if it will — the bottom falls out.”

Democrats are demanding an extension of expiring tax credits that have helped millions of people afford health insurance, while Republicans have refused to negotiate until the government is reopened.

Trump has said the government must reopen, but also used the shutdown to cut federal positions and target programs Democrats favor, while redirecting funds to his own priorities — like covering military paychecks. The president has even said of closed museums, “We should probably just open them,” though that hasn’t yet happened.

Americans, meanwhile, are divided on who’s to blame.

Roughly 6 in 10 say Trump and congressional Republicans have “a great deal” or “quite a bit” of responsibility for the shutdown, while 54% say the same about Democrats in Congress, according to a recent poll from The Associated Press-NORC Center for Public Affairs Research.

Mike McCurry, a White House press secretary under Clinton, said Democrats have yet to settle on a clear shutdown message that has resonated. Trump has the presidency to deliver his take, but McCurry noted he has been “mercurial.”

“It is not likely we’re going to have clear winners or losers after this,” McCurry said. “It’s going to be a bit of a muddle.”



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Americans are paying nearly all of the tariff burden as international exports die down, study finds

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After nearly a year of promises tariffs would boost the U.S. economy while other countries footed the bill, a new study shows almost all of the tariff burden is falling on American consumers. 

Americans are paying 96% of the costs of tariffs as prices for goods rise, according to research published Monday by the Kiel Institute for the World Economy, a German think tank. 

In April 2025 when President Donald Trump announced his “Liberation Day” tariffs, he claimed: “For decades, our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike.” But the report suggests tariffs have actually cost Americans more money.

Trump has long used tariffs as leverage in non-trade political disputes. Over the weekend, Trump renewed his trade war in Europe after Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland sent troops for training exercises in Greenland. The countries will be hit with a 10% tariff starting on Feb. 1 that is set to rise to 25% on June 1, if a deal for the U.S. to buy Greenland is not reached. 

On Monday, Trump threatened a 200% tariff on French wine, after French President Emmanuel Macron refused to join Trump’s “Board of Peace” for Gaza, which has a $1 billion buy-in for permanent membership. 

“The claim that foreign countries pay these tariffs is a myth,” wrote Julian Hinz, research director at the Kiel Institute and an author of the study. “The data show the opposite: Americans are footing the bill.” 

The research shows export prices stayed the same, but the volume has collapsed. After imposing a 50% tariff on India in August, exports to the U.S. dropped 18% to 24%, compared to the European Union, Canada, and Australia. Exporters are redirecting sales to other markets, so they don’t need to cut sales or prices, according to the study.

“There is no such thing as foreigners transferring wealth to the U.S. in the form of tariffs,” Hinz told The Wall Street Journal

For the study, Hinz and his team analyzed more than 25 million shipment records between January 2024 through November 2025 that were worth nearly $4 trillion.They found exporters absorbed just 4% of the tariff burden and American importers are largely passing on the costs to consumers. 

Tariffs have increased customs revenue by $200 billion, but nearly all of that comes from American consumers. The study’s authors likened this to a consumption tax as wealth transfers from consumers and businesses to the U.S. Treasury.   

Trump has also repeatedly claimed tariffs would boost American manufacturing, butthe economy has shown declines in manufacturing jobs every month since April 2025, losing 60,000 manufacturing jobs between Liberation Day and November. 

The Supreme Court was expected to rule as soon as today on whether Trump’s use of emergency powers to levy tariffs under the International Emergency Economic Powers Act was legal. The court initially announced they planned to rule last week and gave no explanation for the delay. 

Although justices appeared skeptical of the administration’s authority during oral arguments in November, economists predict the Trump administration will find alternative ways to keep the tariffs.



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Selling America is a ‘dangerous bet,’ UBS CEO warns as markets panic

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Investors are “selling America” in spades Tuesday: The 10-year Treasury yield is at its highest point since August; the U.S. dollar slid; and the traditional safe-haven metal investments—gold and silver—surged once again to record highs.

The CEO of UBS Group, the world’s largest private bank, thinks this market is making a “dangerous bet.”

“Diversifying away from America is impossible,” UBS Group CEO Sergio Ermotti told Bloomberg in a television interview at the World Economic Forum in Davos, Switzerland, on Tuesday. “Things can change rapidly, and the U.S. is the strongest economy in the world, the one who has the highest level of innovation right now.” 

The catalyst for the selloff was fresh escalation from U.S. President Donald Trump, who has threatened a 10% tariff on eight European allies—including Germany, France, and the U.K.—unless they cede to his demands to acquire Greenland.

Trump also threatened a 200% tariff on French wine and Champagne to pressure French President Emmanuel Macron to join his Board of Peace. Trump’s favorite “Mr. Tariff” is back, and bond investors are unhappy with the volatility.

But if investors keep getting caught up in the volatility of day-to-day politics and shun the U.S., they’ll miss the forest for the trees, Ermotti argued. While admitting the current environment is “bumpy,” he pointed to a statistic: Last year alone, the U.S. created 25 million new millionaires. For a wealth manager like UBS, that is 1,000 new millionaires a day. To shun that level of innovation in U.S. equities for gold would be a reactionary move that ignores the long-term innovation of the U.S. economy. 

“We see two big levers: First of all, wealth creation, GDP growth, innovation, and also more idiosyncratic to UBS is that we see potential for us to become more present, increase our market share,” Ermotti said. 

But if something doesn’t give in the standoff between the European Union and Trump, there could be potential further de-dollarization, this time, from Europe selling its U.S. bonds, George Saravelos, head of FX research at Deutsche Bank, wrote in a note Sunday. Indeed, on Tuesday, Danish pension funds sold $100 million in U.S. Treasuries, allegedly owing to “poor” U.S. finances, though the pension fund’s chief said of the debacle over Greenland: “Of course, that didn’t make it more difficult to take the decision.” 

Europe owns twice as many U.S. bonds and equities as the rest of the world combined. If the rest of Europe follows Denmark’s lead, that could be an $8 trillion market at risk, Saravelos argued. 

“In an environment where the geo-economic stability of the Western alliance is being disrupted existentially, it is not clear why Europeans would be as willing to play this part,” he wrote. 

Back in the U.S., the markets also sold off as the Nasdaq and S&P both fell 2% Tuesday, already shedding the entirety of Greenland’s value on Trump’s threats, University of Michigan economist Justin Wolfers noted. Analysts and investors are uneasy, given the history of Trump declaring a stark tariff before negotiating with the country to take it down, also known as the “TACO”—Trump always chickens out—effect. Investors have been “burnt before by overreacting to tariff threats,” Jim Reid of Deutsche Bank noted. That’s a similar stance to the UBS bank chief: If you react too much to headlines, you’ll miss the great innovation that’s pushed the stock market to record highs for the past three years.

“I wouldn’t really bet against the U.S.,” he said.



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Trump added $2.25 trillion to the national debt in his first year back in charge, watchdog says

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Trump’s first year back in the White House closed with the U.S. national debt roughly $2.25 trillion higher than when he retook the oath of office, showing how fast Washington’s red ink is piling up even amid DOGE hype and promises to pay it down. Over the calendar year 2025, the growth in the national debt was even higher, some $2.29 trillion.

The acceleration in borrowing, with the national debt standing at $38.4 trillion and growing as of January 9, is sharpening warnings from budget watchdogs and Wall Street alike that the country’s fiscal path is becoming a growing vulnerability for the economy.​ The total national debt has grown by $71,884.09 per second for the past year, according to Congressman David Schweikert’s Daily Debt Monitor.

Over the 12 months from the close of trading on Jan. 17, 2025, to the end of day Jan. 15, 2026, the federal government added approximately $2.25 trillion to the national debt, according to calculations shared exclusively with Fortune by the Peter G. Peterson Foundation. That period roughly captures President Donald Trump’s first year back in office, as it is the last business day before last year’s Inauguration Day and the most recent day for which data are available. The jump from $37 trillion to $38 trillion in just two months between August and October was particularly notable, with the Peterson Foundation calculating at the time that it was the fastest rate of growth outside the pandemic. Michael A. Peterson, CEO of the nonpartisan watchdog dedicated to fiscal sustainability, told Fortune at the time that “if it seems like we are adding debt faster than ever, that’s because we are.”

As for how these figures compare to recent presidencies, the Peterson Foundation provided calculations (below) for each calendar year over the last quarter-century, revealing that President Joe Biden owns the highest year of national debt growth outside the pandemic, with almost $2.6 trillion in 2023. President Trump far and away holds the record, with nearly $4.6 trillion of national-debt growth occurring during the pandemic year of 2020, when massive federal spending occurred in the form of economic relief measures.

Trump and Biden together own the top five highest-debt-incurring years, two for Trump and three for Biden, across five of the last six years. While the figures are not adjusted for inflation, by and large, Trump and Biden have roughly doubled the rate of debt accumulation under President Barack Obama and tripled, even quadrupled the rate of growth under President George W. Bush, depending on which term you’re looking at. To be sure, both Bush and Obama presided over the aftermath of the Great Recession of 2008, with experts still debating whether their fiscal responses were large enough.

Interest costs explode

The surge in debt is landing just as interest costs on that debt become one of Washington’s fastest‑growing expenses. The specific line item for net interest in the federal budget totaled $970 billion for fiscal year 2025, but the Congressional Budget Office (CBO) calculated that, including spending for net interest payments on the public debt, this broke the $1 trillion barrier for the first time. The Committee for a Responsible Federal Budget, another nonpartisan watchdog, projects $1 trillion per year in interest payments from here on out.

Trump has repeatedly argued that his ambitious tariff program will be enough to tame the debt burden, casting duties on imports as a kind of magic revenue source for Washington. Treasury data show tariffs are bringing in significantly more money than before—likely in the $300 billion to $400 billion‑a‑year range—but even optimistic projections suggest those sums only cover a fraction of annual interest costs and an even smaller slice of total federal spending.​ As Trump retreated from many of his tariff threats—before the January 2026 spike that he threatened in relation to his desire for U.S. possession of Greenland—the CBO calculated that $800 billion of projected deficit reduction had also vanished.

At the same time, the administration has promised to share some of that tariff revenue directly with households through a proposed $2,000 “dividend” for every American, a pledge that independent analysts estimate could cost around $600 billion per year and further widen the deficit unless offset elsewhere. Economists say that the combination—more borrowing, high interest rates, and new permanent commitments—risks locking in structural deficits that keep the debt rising faster than the overall economy.​

Markets and America’s ‘Achilles’ heel’

Financial markets are taking notice. As Washington auctions hundreds of billions of dollars in new Treasury securities each week, yields on longer‑term notes and bonds have moved higher, reflecting both tighter monetary conditions and investor unease about the sheer volume of U.S. borrowing. Recent analysis from Deutsche Bank and others has described America’s mounting debt load as an “Achilles heel” that could leave the dollar and broader economy more vulnerable to shocks, particularly as geopolitical tensions and tariff fights escalate.​

Those worries are amplified by the prospect of future recessions or emergencies that could force the government to borrow even more heavily on top of today’s already‑elevated baseline. Rating agencies and international lenders have not sounded any immediate alarm about U.S. solvency, but they have increasingly highlighted fiscal risks in their outlooks, pointing to widening deficits and a political system that has struggled to impose discipline.​

Voters are paying attention

If there is one thing Americans still broadly agree on, it is that the debt problem matters. Recent polling sponsored by the Peterson Foundation found that roughly 82% of voters say the national debt is an important issue for the country, even as they remain divided over which programs to cut or taxes to raise.

Trump first won office vowing to erase the national debt over time; a decade later, after his return to power, that figure has instead climbed to record highs. As the administration prepares for another year of governing—and another season of fiscal showdowns on Capitol Hill—the question is shifting from whether the debt is growing too fast to how long the world’s largest economy can keep outrunning its own balance sheet.

For this story, Fortune journalists used generative AI as a research tool. An editor verified the accuracy of the information before publishing.



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