The Dictatorship
Businesses scramble to contain fallout from Trump’s tariffs on Canada, China and Mexico
A Minnesota farmer worries about the price of fertilizer. A San Diego entrepreneur deals with an unexpected cost increase of remodeling a restaurant. A Midwestern sheet metal fabricator bemoans the prospect of higher aluminum prices.
Businesses knew that Trump’s import taxes — tariffs — on America’s biggest trading partners were scheduled to take effect Tuesday. But many of them assumed they’d get a reprieve. After all, the unpredictable president had delayed the tariffs on Canada and Mexico for 30 days right before they were originally supposed to kick in on Feb. 4.
No such luck this time.
At midnight Tuesday, the United States imposed 25% tariffs on goods from Canada and Mexico, starting a trade war with its closest neighbors and allies. Trump also doubled his 10% levies on Chinese imports in a series of moves that took U.S. tariffs to the highest level since the 1940s. Canadian energy was shown some mercy, getting taxed at a lower 10%.
The three countries promptly announced retaliatory tariffs of their own.
Commerce Secretary Howard Lutnick said later on Tuesday that the U.S. would likely meet Canada and Mexico “in the middle,” with an announcement coming as soon as Wednesday. Lutnick told Fox Business News the tariffs would not be paused, but that Trump would reach a compromise.
The longer the tariffs stick, the more damage they can do, forcing companies to decide between eating higher costs and passing them along to inflation-weary consumers. If the tariffs and the retaliation last a year, economist Kathy Bostjancic of Nationwide estimates, U.S. economic growth will be more than 1 percentage point lower and inflation 0.6 percentage points higher than they would have been otherwise.
Manuel Sotelo, who runs a Mexican truck fleet that carries goods across the southern U.S. border, didn’t expect that Trump would roll the dice on $2.2 trillion worth of American trade with Mexico, Canada and China.
“I really did think last afternoon or last night Trump would have reversed course,’’ Sotelo, who has a Trump bobblehead behind his desk, said Tuesday.
That’s in no small part because Mexico has already taken steps to address the ostensible grievances behind Trump’s Tuesday tariffs — the flow of illicit drugs and immigrants — including sending 10,000 troops to the border.
But the president went ahead with the tariffs, and now businesses are scrambling to deal with them.
David Spatafore, who owns several restaurants in San Diego, said his businesses have already been pummeled by the surging price of eggs and dairy over the last month. Tuesday’s tariffs are just the latest blow.
“Everything across the board is impacted,” Spatafore said.
One of his restaurants has also been in the middle of a remodel, which has grown increasingly expensive as tariffs hit Canadian lumber and steel.
“We were in the middle of a quote for a custom oven being made,’’ he said, when the contractor added the cost of the tariffs to his estimate. Thin margins in the restaurant industry mean it’s hard to eat the higher expenses.
“Where are you supposed to absorb it?’’ he said.
At Mission Produce in Oxnard, California, which packs avocados and mangos and distributes them to supermarkets and restaurants around the world, co-founder and CEO Steve Barnard won’t need to raise prices right away. Mission Produce still has some inventory of Mexican avocados and other produce ripening in its U.S. warehouses.
But “if this thing lasts 10 days or more, our costs will be substantially different,’’ he said. “We’ll have to come to the table and figure something out.”
Barnard expects big retailers will resist price increases, while smaller, independent chains might have to raise prices sooner because they have less pre-tariff inventory on hand.
“My company will feel an immediate, detrimental impact as a result of these tariffs,” Traci Tapani, co-president with her sister of Wyoming Machine, a sheet metal fabricator in Stacy, Minnesota that relies on Canadian aluminum, said in a statement. Tapani is the vice chair of the U.S. Chamber of Commerce’s Small Business Council. “The threats and uncertainty have made it hard to make business decisions, and these kinds of tariffs will make it extremely difficult for small businesses like mine to grow.”
In Cannon Falls, Minnesota, about 45 miles (72 kilometers) south of Minneapolis, farmer Danny Lundell is particularly worried that Trump’s import taxes will drive up the price of Canadian potash fertilizer.
“We need potash to raise healthier crops,’’ he said. “And it doesn’t matter if you’re big, medium or small, it’s going to affect you.’’
Minnesota’s Democratic governor, Tim Walz, visited Lundell’s farm Tuesday to criticize Trump for jeopardizing relationships with his state’s biggest trading partners.
Higher costs aren’t the only consequence of Trump’s trade wars. There’s also the uncertainty as the president threatens, delays and actually imposes import taxes.
“Things are unfolding so quickly,” Brian Cornell, CEO of discount retailer Targettold reporters Tuesday. “We will watch this carefully and understand: Are these long-term tariffs? Is this a short-term action? How will this unfold over time? I think all of us are speculating.’’
Uncertainty can take an economic toll as businesses delay plans to make investments and sign up new suppliers until they know which countries and which products are likely to be tariff targets.
During Trump’s first-term trade battles, U.S. business investment weakened late in 2019, prompting the Federal Reserve to cut its benchmark interest rate three times in second half of the year to provide some offsetting economic stimulus.
Adding to the uncertainty now are Trump’s plans for more tariffs, not least his call for “reciprocal tariffs” to raise U.S. duties to match higher tariffs charged by other countries. Trump could also impose more tariffs on the European Union, India, computer chips, autos and pharmaceutical drugs.
“Everything else that’s coming down the pipeline is what adds to the uncertainty,’’ said Antonio Rivera, a partner in the international trade practice at the law firm ArentFox Schiff.
The Whiskeyjack Boutique gift shop in Windsor, Ontario, has been getting some usual customers: Americans stopping in to apologize for Trump’s decision to start a trade war with Canada.
“They are mortified by what’s happening, and they don’t support what’s going on, and they don’t like how Canada’s being kind of dragged through the mud on this,” said Katie Stokes, co-owner of the shop.
Stokes has also heard Canadians planning to cancel plans to take vacations in the United States.
“It’s almost remorseful and sad, like people are upset, and they don’t love how this is playing out,’’ she said.
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Associated Press Staff Writers Jaimie Ding in Los Angeles; Anne D’Innocenzio in New York;, Dee-Ann Durbin in Detroit; Mike Householder in Windsor, Ontario, Canada; Megan Janetsky in Mexico City; and Steve Karnowski in Minneapolis contributed to this report.
WASHINGTON (AP) — President Donald Trump’s administration on Tuesday accelerated its dismantling of the Education Departmentdelegating much of its work to protect the nation’s at-risk students.
The Department of Justice will take on enforcement of civil rights in education, while the Department of Health and Human Services will oversee special education, administration officials announced. With those moves, the Education Department has now carved away the vast majority of its functions for other agencies to handle.
The two Education Department offices involved — the Office of Special Education and Rehabilitative Services and the Office for Civil Rights — defend the rights of children with disabilities and those who experience discrimination based on race, sex or religion. Advocates worry the change could mean lapses in communication for families and school officials who need help.
Trump, a Republican, campaigned on shutting down the Education Department, saying he would “move education back to the states where it belongs.” While only Congress can close the department, Trump’s education secretaryLinda McMahon, a billionaire and former CEO of World Wrestling Entertainment, has formed agreements with other federal agencies to handle much of her department’s work.
McMahon said the agreements align federal responsibilities with the agencies best positioned to support them.
“The Trump Administration has been clear: as we scale back federal micromanagement when it hinders success, we are equally committed to bolstering the efficacy of federal oversight where it is essential,” McMahon said in a written statement.
Critics warn of impacts to student services
Advocates said the changes would create uncertainty around services relied upon by millions of students and families.
“As is too often the case, traditionally underserved students — including students with disabilities, Black and Latino students, multilingual learners, students from low-income backgrounds, and students in rural communities — will bear the greatest burden created by this reckless decision, to which the disability and civil rights communities have already been vehemently opposed,” said a written statement from EdTrust, a Washington, D.C.-based think tank that advocates for educational equity.
The Education Department already has offloaded some of its programs through 10 earlier internal agreementsbut the offices affected by Tuesday’s announcement were among the most closely watched.
The Office of Special Education and Rehabilitative Services manages billions of dollars in grants and oversees state compliance with the Individuals with Disabilities Education Act. The Office for Civil Rights, which has been thinned by mass layoffsinvestigates complaints of discrimination at the nation’s schools and universities.
The Department of Justice also will take over work protecting student privacy and will provide some training and advisory help to schools.
While Justice and Health and Human Services will handle over most day-to-day duties of the assigned offices, the Education Department will continue to perform some tasks, such as responding to audits and issuing final determinations in civil rights cases, which it is explicitly required to do by law.
Rep. Bobby Scott, D-Va., ranking member of the House Committee on Education and the Workforce, said the announcement Tuesday was a political one intended to fulfill the president’s campaign promise. The changes, he said, will likely widen inequities for students of color and students with disabilities.
The agreements are scattering education programs to agencies that do not have the expertise to manage them, said Sen. Patty Murray, D-Wash.
“Instead of helping kids get a great education, this administration is spending its time, energy, and taxpayer resources fixated on where employees sit and illegally trying to shutter the Department of Education,” Murray said in a written statement.
Rachel Gittleman, president of the union that represents department employees, said the moves will create chaos for families, students and schools.
“This will leave our most vulnerable students and families who have been shut out of our education system without the services they need and without protection when they face discrimination,” Gittleman said in a written statement.
Families of students with disabilities opposed the decision
The transfer of special education to Health and Human Services most alarmed disability advocates, who say oversight of whether schools are adequately serving children with disabilities is best handled by education experts — not medical experts.
“The IDEA is intended to equip students as they learn alongside their peers, not cure them — the HHS is not prepared to oversee and administer the IDEA program effectively. Health and education systems speak in entirely different languages, including variations in terminology, training and disciplines,” said Jennifer Coco, interim executive director of the Center for Learner Equity.
The Education Department said McMahon spent over six months in listening sessions with families, advocates and educators to better understand concerns around how the department’s dismantling could affect special education. Many families raised concerns about obstacles to obtaining proper services for their children, but Coco said participants in those sessions were united in their opposition to moving special education oversight out of the Education Department.
“I think we agree on the problem,” Coco said. “We have stark disagreement on the solution and these transfers today don’t feel like a solution to that problem.”
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The Associated Press’ education coverage receives financial support from multiple private foundations. The AP is solely responsible for all content. Find the AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.
Rep. Mike Collins won Georgia’s Republican Senate primary runoff Tuesday, defeating former University of Tennessee football coach Derek Dooley.
Now, he will have the far larger task of knocking off Democratic Sen. Jon Ossoff in one of the most competitive Senate race this election cycle.
The runoff was triggered after Collins and Dooley each failed to win a majority in the May 19 primary, forcing a second round in a contest that Republicans view as one of their best opportunities to flip a Democratic-held Senate seat in 2026. President Donald Trump endorsed Collins over the weekend, boosting his chances in the runoff.
Collins, a congressman representing Georgia’s 10th District, finished first in the primary. The trucking company owner and staunch ally of Trump built his campaign around support for the president’s agenda, border security, immigration enforcement and conservative cultural issues. Collins sought to portray himself as a proven conservative fighter with experience in Washington and strong ties to the Republican base.
Dooley, meanwhile, leaned on his name recognition as a former college football coach and member of one of Georgia’s most prominent political families. His father, Vince Dooley, was the legendary University of Georgia football coach and athletic director. Although Dooley has never held elected office, he has campaigned as a political outsider capable of attracting independent and swing voters in a general election.
Collins argued that Republicans need a candidate with a proven conservative record and close ties to Trump. Dooley has countered that his outsider status and broader appeal would make him a stronger challenger in November.
But some Republicans are worried about Collins, including his hardline stance on abortion rights and an Office of Congressional Conduct probe into his office’spotential misuse of resources that the Republican lawmaker has referred to as a “nothing burger.”
His social media tonewhich includes severely downplayingthe U.S. Capitol attack where some pro-Trump rioters injured members of law enforcement, gives credence to the president’s view of him as a “a true Friend, Fighter, and WARRIOR,” as Trump wrote in his post endorsing Collins.
But those sentiments also spotligh a few of the vulnerabilities for a statewide candidate coming from a reliably red congressional district.
Collins will now face Ossoff, who is seeking a second term after winning a pair of runoff elections in 2021 that helped Democrats gain control of the Senate. Since taking office, Ossoff has built a national fundraising network. His re-election campaign has emphasized lowering costs for families, protecting access to healthcare, supporting economic development and promoting government accountability.
In a statement published shortly after Collins’ win, Ossoff called the congressman a “notorious bigot” who was under federal investigation.
“Donald Trump’s handpicked candidate Mike Collins is a notorious bigot, antisemite, and extremist currently under federal investigation for the illegal misuse of tax dollars,” Ossoff said. “Collins, who is only a congressman because his daddy was a congressman, voted to double health insurance premiums for more than a million Georgians, for the Iran War, and for the Trump tariffs.”
The House Ethics Committee is investigating allegations that Collins used government funds to benefit an aide.
Georgia remains a key battleground state heading into the midterm elections. Once considered a reliably Republican stronghold, the state has become increasingly competitive over the past decade.
Republicans see Georgia as one of their strongest pickup opportunities in a midterm cycle where control of the Senate could once again hinge on a handful of closely contested races. Democrats, meanwhile, are expected to invest heavily to protect Ossoff’s seat, viewing him as a key part of the party’s future.
Ebony Davis is a breaking news reporter for MS NOW based in Washington, D.C. She previously worked at BLN as a campaign reporter covering elections and politics.
Senate Republicans are still waiting for details of the preliminary U.S.-Iran agreement. But they’re already making one thing clear: Congress should have a vote on any final deal.
President Donald Trump, Vice President JD Vance and Iranian Parliament Speaker Mohammad-Bagher Ghalibaf signed a memorandum of understanding on Monday, formally giving the two countries 60 days to negotiate an agreement.
While there’s a healthy dose of skepticism about the deal and whether it will actually materialize, Republicans want a say on the eventual agreement.
“If there is a final deal, and I hope there is, it should come to the Senate for approval,” Sen. John Kennedy, R-La., told reporters on Tuesday.
Sen. Bill Cassidy, R-La., said if the final agreement is a treaty — and it “sounds like a treaty,” he said — then it “certainly seems like” the deal should be subject to a vote by Congress.
And Sen. Roger Wicker, R-Miss., the Republican chairman of the Senate Armed Services Committee, echoed his colleagues.
For now, it appears Trump agrees with Senate Republicans.
During a bilateral meeting at the Group of Seven (G7) summit in France on Tuesday, Trump suggested he would be open to sending the eventual deal to Congress. “I wouldn’t mind,” he said.
“I never thought about sending. Never even thought about it,” Trump added. “But I will — I will send it to Congress. I like the idea.”
Trump’s comments quickly made their way to Washington, where Republican senators like Lindsey Graham and Roger Marshall repeatedly pointed out that Trump said he would give Congress a vote.
“I hope he does,” Marshall said.
Despite the GOP desire for a vote, it’s far from clear Congress will ever hold one. For starters, the talks could fall apart before a final agreement is reached. And if the deal ultimately resembles elements of the Obama-era accord that Republicans long opposed, GOP leaders may be reluctant to force lawmakers into a politically fraught vote — particularly if Democrats line up against it.
The dynamic highlights a familiar tension on Capitol Hill.
For years — decades, even — lawmakers have talked about replacing the sweeping 2001 Authorization for Use of Military Force with a more targeted authorization. The law has been used to justify dozens of military operations in more than 22 countries. But when it comes time to take ownership of a new war authorization, many in Congress seem content to defer to the president and the nearly 25-year-old law.
To be sure, there were some GOP voices on Tuesday who suggested a vote on Trump’s emerging Iran deal isn’t needed.
Sen. Eric Schmitt, R-Mo., argued that a law signed amid the debate over the Obama-era deal never explicitly required a vote — just congressional review.
“You might decide your opinion is we should vote on it, but there is no requirement that we do,” Schmitt said.
And some other Republican senators kept their cards close to their vest, insisting they need more information on the deal before asserting that a vote is necessary.
“Everybody’s got to see what it is first,” Sen. James Lankford, R-Okla., said. “None of us have seen it.”
Pressed on whether he wants a vote, regardless of the terms of the deal, the Oklahoma Republican offered a congressional truth: “It depends on what the deal is.”
Part of the insistence on a vote, Republicans say, is because the Iran nuclear deal brokered under President Barack Obama — formally known as the Joint Comprehensive Plan of Action, or JCPOA — wasn’t affirmed by Congress. That allowed Trump to singlehandedly dismantle it during his first administration.
This time, lawmakers say they want a deal to outlast the Trump presidency.
Sen. John Curtis, R-Utah, said Congress should “absolutely” vote on the final agreement, if negotiators reach one.
“That was one of the problems with President Obama’s deal,” Curtis said.
Sen. Thom Tillis, R-N.C., said he thought it “makes more sense” to have Congress give any agreement its stamp of approval, pointing to Obama’s now defunct deal.
“Obama made a mistake when he didn’t do the work to have it rise to a level of a treaty, and I believe that we should here, otherwise it’s only good for two and a half years,” Tillis said.
“Why don’t we do the hard work of making sure that it has staying power?” he added.
Lawmakers on both sides of the aisle — particularly Republicans — would be happy to approve an Iran peace agreement that advances U.S. interests. Republicans are inclined to support Trump, and few lawmakers seem eager to prolong the Iran “excursion,” as the president has put it.
But approving a deal that’s less-than-stellar for the United States isn’t such a popular prospect. And congressional leaders might hesitate to put the agreement up for a vote out of fear that lawmakers may shoot it down.
A failed vote would put Trump and the United States in a difficult position.
Just having to vote on the deal could put lawmakers in a tough political spot of their own — and right before the midterm elections.
If the final agreement ends up resembling the Obama-era JCPOA, Republicans could be forced to either support a deal they’ve long criticized or risk drawing Trump’s ire. Neither choice is ideal.
Meanwhile, if Democrats vote against a final deal, they could face accusations that they don’t want the war to end. Some Republicans see political value in forcing Democrats to take a position.
“When there’s a deal, of course, put the Democrats on record,” Sen. Bernie Moreno, R-Ohio, told MS NOW.
But if the final deal is one Republicans don’t love, don’t expect the agreement to come before Congress.
Already on Monday, several Republicans expressed nervousness about the early contours of a deal, as described in press reports about a yet-to-be released memorandum of understanding. And on Tuesday, the top Senate Republican — John Thune of South Dakota — said he had still not been briefed on the contents of the memorandum.
A handful of Republicans revealed to reporters that they had been in touch with senior U.S. officials to get some of their questions answered.
Moreno, for instance, said he was given some details about the agreement on Monday from Vice President JD Vance and White House peace envoy — and Trump son-in-law — Jared Kushner.
Asked about the delay in revealing the preliminary memorandum, Moreno insisted the Trump administration was just being “methodical,” in part so as not to upend the internal politics in Iran.
“It’s not going to kill everybody to just take a breath and wait until Friday,” Moreno said.
Mychael Schnell is a reporter for MS NOW.
Kevin Frey is a congressional reporter for MS NOW.
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