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Economy
'Trump Is Making Your Life More Expensive': Tariff Chaos Engulfs US Economy
“Poor and working people are paying the price" of the president's tariff policies, said Rep. Pramila Jayapal.
Sep 16, 2025
US consumers are increasingly feeling the impact of President Donald Trump's tariffs, and the head of the Congressional Budget Office said on Monday that they are fueling inflation.
During an appearance on CNBC, Congressional Budget Office (CBO) director Phillip Swagel said that the president's tariffs have pushed up inflation more than the agency initially anticipated, although he emphasized that their impact on inflation so far was "not by a lot, but by enough to show" in the numbers.
Swagel also said that the higher-than-expected inflation was a surprise because there are signs that the US economy has slowed significantly since January.
CNN on Tuesday published an analysis using numbers from the Yale Budget Lab estimating that Trump's tariffs will cost US households an average of $2,300 extra per year, which is nearly three times as much as the $800 US households are projected to receive on average from new tax provisions contained in the Republicans' "One Big Beautiful Bill Act" that passed earlier this year.
The combined distributional impacts of the Trump tariffs and the GOP tax law are also highly regressive. According to CNN's analysis, a household with annual earnings of $38,840 would be $2,560 worse off thanks to the tariffs and the tax law, while households earning $517,700 would be $8,180 better off.
The Washington Post on Tuesday reported that Trump's tariffs aren't just hurting Americans in the US, but those living abroad as well.
As explained by the Post, Americans living abroad have been unable to send mail to the US without paying hefty fines thanks to the chaos being caused by Trump's tariffs. The reason for this, writes the paper, is that Trump earlier this year canceled a policy known as the de minimis exemption, effective August 29, that "allowed the tariff-free flow of goods under $800 into the United States."
This has led not just to increased shipping costs for Americans living abroad, but has also resulted in foreign nations slowing or even outright halting shipments to the US because they are unsure about how to calculate the costs.
"Confusion about the rules have led to issues since the exemption was lifted on August 29," the Post wrote. "At first, national postal services in more than 30 countries temporarily suspended sending some or most US-bound packages. Since then, restrictions have eased, and the Universal Postal Union deployed a tool this week to help operators calculate duties and resume services."
Reacting to fresh revelations about the impact of the tariffs, many progressive Democrats hammered Trump for increasing the cost of living for working-class families.
"Under Donald Trump’s economy: coffee is up 26%, beef is up 14%, oranges are up 17%, bananas are up 6%, chicken is up 6%, chocolate chip cookies are up 5%, potato chips are up 4%, milk is up 4%," wrote Sen. Elizabeth Warren (D-Mass.). "But average worker pay is only up 2%. Trumpflation is eating up your paycheck."
Rep. Pramila Jayapal (D-Wash.) added that “from school supplies to gas to groceries, Trump is making your life more expensive."
"Poor and working people are paying the price of his reckless policies," said the congresswoman.
Sen. Alex Padilla (D-Calif.), a member of the Senate Committee on Energy and Natural Resources, took to the Senate floor on Monday to single out a different Trump policy that he said was also raising prices for US consumers—namely, his attacks on green energy projects.
"This administration is shamelessly working to block one of our best defenses against rising energy bills: renewable energy," Padilla said. "And I say so because renewable energy is absolutely affordable, renewable energy is abundant, and whether you want to admit it or not, renewable energy sources are our future."
The senator also pointed to his home state of California as an example of what can happen when the government encourages the development of green energy projects.
"[California is] harnessing the power of solar and wind and hydroelectric power and nuclear, geothermal, even hydrogen power to our state," he said. "And it’s exactly because of those investments that even in a year like 2024, just last year, when we experienced record heatwaves that we also saw record renewable energy generation, and we kept the lights on."
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'Corporate Greed Is Out of Control': Tlaib-Sanders Bill Would Tax Companies for Excessive CEO Pay
"At a time of record-breaking income and wealth inequality, we must demand that the wealthiest people and most profitable corporations in America finally pay their fair share of taxes," said Sen. Bernie Sanders.
Sep 16, 2025
With the world's richest person, Tesla CEO and Republican megadonor Elon Musk, on the cusp of becoming the first trillionaire on the planet, two leading progressive lawmakers are calling on Congress to pass a bill to "rein in the obscene salaries of America's top executives."
Sen. Bernie Sanders (I-Vt.) and Rep. Rashida Tlaib (D-Mich.) on Monday introduced the Tax Excessive CEO Pay Act with the aim of raising taxes on companies that pay their executives more than 50 times their workers' wages.
The legislation would impose penalties starting at 0.5 percentage points for companies with CEO-to-worker pay ratios between 50-to-1 and 100-to-1. Firms where executives make more than 500 times their workers' pay would be forced to pay the highest rate.
The bill would also require the US Treasury Department to crack down on tax avoidance, including schemes that disguise pay disparities by outsourcing jobs to contractors.
Sanders said that exorbitant CEO pay and massive pay gaps at corporations are intolerable "while 60% of Americans live paycheck to paycheck and millions work longer hours for lower wages."
"It is unacceptable that the CEOs of the largest low-wage corporations make more than 630 times what their average workers make," said the senator, who has been criss-crossing the country this year with his Fighting Oligarchy Tour, galvanizing people in red and blue districts against wealth inequality, political corruption, and corporate power.
"This is not only morally obscene, but also insane economic policy," said Sanders. "At a time of record-breaking income and wealth inequality, we must demand that the wealthiest people and most profitable corporations in America finally pay their fair share of taxes and treat all employees with the respect and dignity they deserve. That’s precisely what this legislation begins to do."
The proposal would raise an estimated $150 billion over a decade if tech giants, Wall Street firms, and other large corporations continue their current compensation patterns, and Sanders and Tlaib noted that the largest companies in the US would have paid billions of dollars more in taxes last year had the legislation been in effect.
JPMorgan Chase would have paid $2.38 billion in taxes, while Google would have paid $2.16 billion and Walmart would have paid $929 million.
With 62% of Republican voters and 75% of Democrats supporting a cap on CEO pay relative to worker salaries, the legislation would likely be well received by Americans across the political spectrum—but Republican lawmakers have shown little to no interest in confronting the pay gap, ensuring fair wages for workers, or reining in excessive executive compensation.
With the current CEO-employee pay gap, CEOs at the 350 largest publicly owned firms make 290 times more than the average pay of a typical worker at their companies, with the gap much larger at some corporations.
The median Walmart worker made $29,469 in 2024, while CEO Doug McMillon took home $27.4 million—a 930-to-1 gap.
The median Starbucks worker would have to work for more than 6,000 years to earn the pay CEO Brian Niccol took home in 2024.
"Working people are sick and tired of corporate greed," said Tlaib. “It’s disgraceful that corporations continue to rake in record profits by exploiting the labor of their workers. Every worker deserves a living wage and human dignity on the job."
"It’s time," she added, "to make the rich pay their fair share.”
Tlaib and Sanders introduced the legislation as Pope Leo spoke out against exorbitant CEO pay in his first interview since taking the helm of the Catholic Church, reserving particular condemnation for Musk, for whom the Tesla board proposed a $1 trillion pay package if he grows the company by eightfold over the next decade.
“CEOs that 60 years ago might have been making four to six times more than what the workers are receiving... it’s [now] 600 times more than the average workers are receiving,” the pope told the Catholic outlet Crux.
“Yesterday, the news that Elon Musk is going to be the first trillionaire in the world: What does that mean and what’s that about?" he added. "If that is the only thing that has value anymore, then we’re in big trouble.”
Sanders said Monday that the pope "is exactly right."
"No society can survive when one man becomes a trillionaire while the vast majority struggle to just survive—trying to put food on the table, pay rent, and afford healthcare," said Sanders. "We can and must do better."
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More Signs of Distress in Trump Economy as Inflation, Jobless Claims Rise
"The middle-class squeeze from tariffs is here," observed one economist.
Sep 11, 2025
New economic data released on Thursday revealed fresh signs of stress for the US economy and working families.
A new Consumer Price Index report from the Bureau of Labor Statistics (BLS) found that overall inflation rose by 2.9% year-over-year in August, while core inflation—a measure that excludes commodities such as food and energy—rose 3.1%, the highest reading recorded since this past January.
Both of these numbers were in line with economists' consensus estimates, although they still showed inflation trending in the wrong direction during a time when the US labor market is also showing signs of weakness.
Looking deeper into the report reveals that the cost of groceries continues to be a major pain point for US consumers, as food prices jumped by 0.6% on the month and 2.7% year-over-year.
The report comes days after US President Donald Trump said in a radio interview, "We have no inflation. Prices are down on just about everything."
New York Times economics reporter Ben Casselman said that the spike in food prices was notable because it came after a long period in which food inflation had been coming down.
"Grocery prices are once again rising relatively rapidly," he observed in a social media post. "Food inflation had eased significantly, and had been running well below overall prices, but that's no longer true."
Heather Long, the chief economist at Navy Federal Credit Union, singled out some particularly important household staples in the report that she argued were very likely being impacted by President Donald Trump's tariffs.
Among other things, Long said that coffee was now 21% more expensive than it was a year ago, while living room and dining room furniture saw a 10% year-over-year increase, and the price of toilet paper rose by an annualized 5%.
"The middle-class squeeze from tariffs is here," she said. "Inflation hit 2.9% in August, the highest since January and up from 2.3% in April. It's troubling that so many basic necessities are rising in price again: Food, gas, clothing, and shelter all had big cost jumps in August. And this is only the beginning."
Mike Konczal, senior director of policy and research at the Economic Security Project and a former member of President Joe Biden's National Economic Council, said that the new report shows "inflation is broadening" given that the "percent of items that had at least a 3% annualized price increase over the last month" increased to nearly 60%, which is the highest percentage seen in years.
The inflation report was not the only troubling economic indicator, however.
The BLS also revealed that jobless claims in the US jumped to 263,000 last week, which was significantly higher than the 235,000 claims expected by economists. Joe Weisenthal, the co-host of the Bloomberg "Odd Lots" podcast, noted that this was the highest total for weekly jobless claims in nearly four years.
Long also flagged the worrying jobless claims number and predicted that it was just the start of a further downturn in the US economy.
"'Cost cutting' is back among CEOs and that is corporate speak for more layoffs," she said. "It's going to be a rough few months ahead as the tariffs impacts work their way through the economy. Americans will experience higher prices and (likely) more layoffs."
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Advocates Warn Against Ted Cruz's Industry-Friendly 'Sandbox' for AI
"The mantra in Silicon Valley is 'move fast and break things,' and that's exactly what Big Tech will do with a green light to override the laws and regulations they don't want to follow," one expert said.
Sep 10, 2025
US Senate Commerce Committee Chair Ted Cruz on Wednesday unveiled a legislative framework for artificial intelligence, including a bill to create a "regulatory sandbox," which the Texas Republican said is part of President Donald Trump's AI Action Plan.
The Strengthening Artificial intelligence Normalization and Diffusion By Oversight and eXperimentation (SANDBOX) Act "gives AI developers space to test and launch new AI technologies without being held back by outdated or inflexible federal rules," Cruz's office said in a statement.
While his office celebrated support for the bill from "notable organizations in the tech space like the Abundance Institute, U.S. Chamber of Commerce, and the Information Technology Council," the consumer watchdog group Public Citizen swiftly sounded the alarm over the industry-friendly proposal.
"Public safety should never be made optional, but that's exactly what the SANDBOX Act does," said Public Citizen Big Tech accountability advocate J.B. Branch. "Companies that build untested, unsafe AI tools could get hall passes from the very rules designed to protect the public. It guts basic consumer protections, lets companies skirt accountability, and treats Americans as test subjects."
"It's unconscionable to risk the American public's safety to enrich AI companies that are already collectively worth trillions."
"The mantra in Silicon Valley is 'move fast and break things,' and that's exactly what Big Tech will do with a green light to override the laws and regulations they don't want to follow," Branch warned. "AI corporate executives see the opportunity to deploy all sorts of unregulated and untested products that can threaten our children's safety, consumers' privacy, and American democracy."
"It's unconscionable to risk the American public's safety to enrich AI companies that are already collectively worth trillions," he added. "The sob stories of AI companies being 'held back' by regulation are simply not true, and the record company valuations show it. Lawmakers should stand with the public, not corporate lobbyists, and slam the brakes on this reckless proposal. Congress should focus on legislation that delivers real accountability, transparency, and consumer protection in the age of AI."
Brendan Steinhauser, CEO of the Alliance for Secure AI, was similarly critical of Cruz's legislation on Wednesday.
"Ideally, Big Tech companies and frontier labs would make safety a top priority and work to prevent harm to Americans. However, we have seen again and again that they have not done so. The SANDBOX Act removes much-needed oversight as Big Tech refuses to remain transparent with the public about the risks of advanced AI," he said. "This raises many questions about who can enter the so-called 'regulatory sandbox' and why. We hope that we will get answers to these questions in the coming days."
Passing the SANDBOX Act, plus streamlining AI infrastructure permitting and opening up federal datasets to AI model training, is just the first pillar of Cruz's five-part framework. Part two focuses on combating government censorship. The third section is about countering "burdensome" state and foreign AI regulations. Pillar four calls for protecting Americans from scams and fraud, as well as safeguarding US schoolchildren. The fifth prong is about bioethical considerations and AI-driven eugenics.
In the absence of federal regulation, states have acted on AI. As Reuters detailed Wednesday:
Several states have criminalized the use of AI to generate sexually explicit images of individuals without their consent. California prohibits unauthorized deepfakes in political advertising and requires healthcare providers to notify patients when they are interacting with an AI and not a human.
Colorado passed a law last year aimed at preventing AI discrimination in employment, housing, banking, and other consequential consumer decisions. The tech industry has lobbied for changes to the law, and the state legislature recently pushed forward its implementation to mid-2026.
In July, ahead of the introduction of Trump's plan, over 90 groups focused on consumer protection, economic and environmental justice, labor, and more collectively called for an AI blueprint that "delivers on public well-being, shared prosperity, a sustainable future, and security for all."
Branch, whose group is part of that coalition, said at the time that "AI is already harming workers, consumers, and communities—and instead of enforcing guardrails, this administration is gutting oversight."
He said the defeat earlier this summer of a Senate measure that would have prevented state-level regulation of AI for a decade sent a clear message from the public: "No more handouts for Trump's tech bro buddies."
"We need rules and accountability," Branch said, "not a Silicon Valley free-for-all."
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