More on Cuba’s Desperate Economic Situation 

According to Mary Anastasia O’Grady, a Wall Street Journal columnist, Cuba’s “legendary repression continues while medicine, housing and fuel are in short supply. Inflation is galloping. Parents find it hard to feed their children. In September the government cut back bread rations to 60 grams a day from 80 grams. In December, after more than six decades, it finally said it will eliminate the ration book, admitting that it cannot provide even a skimpy list of staples.”

“Reuters reported last month that “transportation by ground, sea and air in Cuba” fell by 19% in 2024, reaching a level not seen in 20 years, according to American University economist Ricardo Torres. The infrastructure, from roads to electricity, has collapsed. One demographer estimates 18% of the population emigrated between 2022 and 2023. Those left behind stare into an abyss of hopelessness. Beneath the surface, there’s hunger for change. The island is a powder keg.”

In addition, there was “a U.K. court ruling in December that the National Bank of Cuba and the Cuban state are liable for two 1984 loan agreements, governed by U.K. law, in the amount of about $75 million. Cayman Islands investment fund CRF bought the debt in the secondary market and took the bank and Havana to court for nonpayment. Earlier this month the U.K. Supreme Court refused to hear Cuba’s appeal.”

“The unfavorable decision for Cuba scratches the surface of its liabilities. Over the lifetime of the Cuban revolution the regime has borrowed an estimated $50 billion to $100 billion. It’s hard to calculate the total because Havana’s reckless sovereign lending has been forgiven so many times. The Soviet Union and later Venezuela propped up the regime, but countries like China, Japan, France, Canada, Italy, Brazil and Mexico also extended credit to Havana. Outstanding debt is now about $40 billion, according to the Miami-based Havana Consulting Group.”

“Foreign companies, invited into the country beginning in the mid-1990s, also have helped the regime stay alive by making direct investments on the island. But capitalism doesn’t work in an economy run by totalitarian gangsters, which is why 30 years after the ‘opening,’ the country’s foreign direct investment remains paltry. Havana wants to blame its poverty on the U.S. embargo. But Cuba’s dismal track record with sovereign lenders and the private sector goes a lot further in explaining why capital steers clear of the island.”

“Earlier this month the news broke that Cuban officials have quietly told some foreign companies operating on the island that they could no longer take their profits out of the country. It’s impossible to know how many investors are affected because there has been no official proclamation. Companies seem to be getting the news in private ‘interviews,’ as the regime reportedly calls the struggle sessions.”

“Foreign investment in Cuba is heavily Spanish and there were rumors circulating last week that Madrid’s Socialist government has tried to keep a lid on the story by pressuring Spanish media not to cover it. Still the news has leaked out. An April 10 headline in the Spanish outlet EFE read, ‘Cuba blocks the repatriation of foreign currency to foreign companies based in the country.’”

“Investors don’t seem to want to complain publicly. But they’re talking. ‘We completely disagree. It’s not the [Cuban] government’s money, but rather the companies’ money,’ one unidentified businessman who claimed his assets had been ‘frozen’ told EFE. He said he was informed his money could be used only inside Cuba. EFE also reported that ‘in some cases’ companies ‘have complained to their respective governments, according to business and diplomatic sources familiar with the situation who requested anonymity.’”

“These arbitrary expropriations send a message that what entrepreneurs earn in Cuba, they don’t own. Still, money losers might take comfort in knowing things could be worse. In 2011-12 English architect Stephen Purvis spent 18 months in Cuban dungeons after Raul Castro decided he wanted to take over the British expat’s business on the island. Mr. Purvis told his chilling tale in a 2017 memoir titled ‘Close but No Cigar.’”

“Cuba still receives hard-currency remittances and payments from governments that engage with the regime’s human trafficking of doctors and nurses. But it isn’t enough. Draining foreign businesses won’t be either. If the dictatorship hopes to survive it needs a new ideological sugar daddy willing to burn money.”

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O’Grady, Cuba Is Running on Empty, W.S.J. (April 20, 2025).

 

 

 

 

Trump and Florida Republicans Planning Increased Sanctions on Cuba To Topple Communist Regime

“In a gambit to try to precipitate regime change in Cuba, the Trump administration is planning to ramp up sanctions on the island’s military as part of a maximum-pressure campaign that may also further restrict travel, remittances and exports. Trump administration officials and Cuban-American members of Congress believe the communist regime in Havana is at its weakest moment in decades and have been pushing for an all-out effort to topple it. The island’s economy has been in a downward spiral in recent years, and the country’s ruler, Raúl Castro, is 94.”[1]

“In a Miami event last week, Trump’s special envoy for Latin America, Mauricio Claver-Carone, said the administration perceives ‘a historic opportunity in Cuba for political opening and political transition.’ Officials have been discussing how to update the existing decades-old embargo against Cuba and close ‘loopholes’ to avoid ‘the ups and downs, pressures and non pressures’ that have hindered its success. He also said he administration has already made strides in that direction and created ‘new mechanisms to be more efficient, to be more surgical’  to target ‘ the different economic sectors in the regime, particularly the military.’”

“U.S. Rep. Carlos Giménez, a Cuban American Republican from Miami who represents a district stretching to the Florida Keys, asked the administration last week to halt all travel and remittances to the island, which would prohibit Cuban Americans from visiting relatives on the island or sending money to help them.”

“Giménez also called for a halt to all travel to the U.S. originating from the island and asked for financial sanctions, including tariffs, on countries that do not directly pay Cuba’s doctors in the medical missions abroad that have become a significant source of hard currency for the island’s government.”

“The [Miami] Herald has also learned of other measures being floated by the Trump administration, including revoking export licenses held by U.S. companies supplying the island’s private sector and shutting down U.S.-based online supermarkets that allow Cuban Americans to pay for food, and even medicines, that are then delivered directly to Cubans on the island. The measures are still under discussion, and it is unclear how far officials would ultimately push to shut down revenue going into the island. But if enacted, some of the ideas proposed also risk destroying a nascent private sector and worsening the country’s ongoing humanitarian crisis.”

“Several years into a recession, Cuba faces chronic shortages of food, medicines and essential goods, and a crippled infrastructure that is hitting seniors living off state pensions the worst. The lack of food is particularly acute outside Havana, especially in rural areas in eastern Cuba. That’s why remittances and the online supermarkets have been a lifeline for many Cubans — the government sells groceries and other necessities in dollar stores but pays monthly salaries in pesos worth around $15, and much less to those on pensions. Some of these online platforms also deliver much-needed medications not available in state-run pharmacies.”

“The broad restrictions the administration is contemplating would also hamper discreet efforts by religious organizations and other non-profits to send humanitarian aid to the island. As the situation has deteriorated, donations to Cuba have jumped from $36.5 million in 2023 to $67 million last year, according to figures compiled by the U.S.-Cuba Trade and Economic Council.”

“’Shutting down U.S. flights and informal remittance channels would harm innocent Cuban families far more than communist party elites with global ties who can travel anywhere else,’ said Ricardo Herrero, executive director of the Cuba Study Group, a Cuban American group based in Washington. ‘Prohibiting Cuban Americans from supporting their loved ones in Cuba won’t topple the Cuban regime nor usher in democracy. It will only stoke migration to third countries and hasten the island’s descent into a failed state.’”

“But in a Fox News interview, Giménez called the money sent from Miami to Cuban relatives ‘a cash cow’ that helps the Havana regime finance its repressive apparatus. Without that revenue to spend on repression, he said, he hopes Cubans could rise and topple the government.”

“In the Miami event, Claver-Carone, who played a central role in shaping Cuba policy during the first Trump administration, showed little enthusiasm for Giménez’s proposal, which he called an example of the ‘old’ sanctions tools. The first Trump administration did not go as far as Giménez is advocating now, in part to avoid past controversies that divided South Florida’s Cuban American community.”

“Cuban Americans have been debating on social media the wisdom or effectiveness of ending remittances at a critical time for Cuba’s population. “I don’t think that will bring down that dictatorship,” an X user whose profile says ‘Maga! Trump 2025’ replied to a Giménez post warning Cuban Americans not to travel or send remittances to Cuba. ‘They always benefit, and the Cuban people continue to die of hunger, and our families need that little bit of money we can send them just to eat. Bring down the dictatorship, but don’t starve our families to death.’”

“U.S. officials are also looking at ways to stem increasing U.S. trade with Cuba, which the island’s emergent private sector has driven in recent years. In the month of February, exports to Cuba were $47.6 million, a 75% jump from February last year, according to figures compiled by the U.S.-Cuba Trade and Economic Council.”

“In 2024, U.S. companies exported $586 million to Cuba. Most of that trade, $433 million, is food and agricultural commodities, which is allowed under the embargo thanks to a 2000 law – the Trade Sanctions Reform and Export Enhancement Act. Unlike in the past, when the Cuban government was the leading importer, private enterprises on the island and U.S. exporters selling to private businesses are responsible for most of the recent trade growth. U.S. food products are sold in private stores and privately owned restaurants on the island, or delivered directly to people’s homes.”

“U.S. companies have also exported cars, solar panels, clothing, household items, and many other types of goods, using special government authorizations known as licenses or invoking an exception in the embargo rules that allows activities ‘in support of the Cuban people.’ The merchandise is imported mainly by private business owners residing on the island or bought by Cuban Americans for their relatives living there.”

“’Today, most of the food exported from the United States to Cuba is shipped to private businesses on the ground because the government is broke and in arrears with all of its former suppliers,’ Herrero said. ‘Limiting U.S. food exports to Cuba would not only harm those independent entrepreneurs, but also countless Cuban families already suffering from severe food scarcity.’”

“Prohibiting food exports from the U.S. would be difficult because it would require a change in the law, but revoking licenses might be easier for the administration, Kavulich said.”

“Critics of companies that export to Cuba question whether they ultimately benefit or have links to the Cuban government.”

“Carlos Gimenez, a Republican [Cuban-born] Congressman, asserts that ‘we are at war against Castroism. Under a dictatorship, one is either complicit in or a victim of the constant physical, psychological, and even domestic violence inflicted on society to keep it immobilized, with no right to reply. Every dictatorship is a war between a government and a people.’”

“’We’ve been waiting for 65 years for Castroism’s grip to loosen, waiting for totalitarianism to liquefy, freeing up some space for civil society. Well, that time is now, as the system’s inherent contradictions have led it to moral, ideological, leadership, and economic bankruptcy… All that’s left is repression and our inability to organize.’”

“’The dictatorship has never been weaker than it is today, but it’s weak because of its own inability, not because we weakened it . And if we give it time, it will achieve a balance, a new stability in that weakness… We must act quickly and decisively.’”

“’Castroism thrives on its prey, it feeds on its victims like a parasite, like a cancer, and to defeat it, we must cut off its source of energy. We must cut off the two legs that support the regime. On the one hand, this human trafficking, about which we can do little but denounce and trust Marco Rubio. But on the other hand, the resources sent by emigrants, we can act on these.’

“’ We are at war against this parasite, and wars aren’t pretty; wars require enormous sacrifices. Wars hurt, they damage, they make everything worse before they can improve it… but some wars are necessary.’”

“’Anyone who wants a Cuba without Castroism must be prepared to pay the price, must be prepared to sacrifice themselves, and worse, much worse, must be prepared to sacrifice their loved ones, bringing the country to the point where families on this island suffer unspeakably from shortages of all kinds. Because leaving the country without resources is the only way to leave Castroism without resources; there is no other way, at least not through nonviolent civil means.’”

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[1] Torres, Things are about to get a lot worse in Cuba: Trump’s crackdown plans explained, Miami Herald (April 10, 2025); Cruz, Congressman Carlos Gimenez calls for slaughter: Is it time for the final charge in Cuba?, Diario de Cuba (April 10, 2025).

 

U.S. Condemns Cuban Harassment of Its Citizens

Starting April 1, Cuban police have been harassing Jose Daniel Ferrer, a prominent opposition leader, at the headquarters of the Patriotic Union of Cuba (UNPACU) along with ordinary Cubans gathered there to obtain free food, which the police seized. Nevertheless, that day the organization fed 1,281 people, more than 40 of whom were victims of arrests and harassment.[1]

On April 2, the U.S. State Department on its social media channels reacted to this situation by saying, “Outraged by the Cuban police’s harassment of citizens receiving food and basic necessities from José Daniel Ferrer. We support José Daniel as he provides vital aid to the people of Santiago de Cuba. The Cuban regime must focus on caring for its people, not repressing them: those responsible will be held accountable.”

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[1] Second day of siege and arrests around the UNPACU headquarters, Diario de Cuba (April 2, 2025).

 

Reflections on Cuba’s Independence from Spain  

In a recent Wall Street Journal op-ed, Jose Maria Aznar wrote that “Cuba wasn’t a mere colony, but part of Spain’s territory.”[1]

On the other hand, Professor Carlos Boix of Princeton University points out that a young Winston Churchill in 1895 “briefly joined the Spanish army fighting Cuban pro-independence guerrillas. In his first dispatch from the island, he wrote: “The insurgents gain adherence continually. There is no doubt that they possess the sympathy of the entire population.” Then, later, in his autobiographical book, My Early Life, he noted that Spaniards “felt about Cuba, it seemed, just as we felt about Ireland,” adding that “I thought it rather cheek that these foreigners should have just the same views and use the same sort of language about their country and their colonies as if they were British.”[2]

And Michal Bezek in a letter adds,“Mr. Aznar fails to reflect on how colonial misrule cost Spain the possession of Cuba. The Spanish may have considered Cubans to be an integral part of their country, but the Cubans certainly didn’t seem to think so. They fought against their colonial masters in the brutal Ten Years’ War (1868-78) and rose up in rebellion again in 1895.”[3]

“It was the constant flood of news about the brutal tactics of Valeriano Weyler—the colonial governor of Cuba, nicknamed “the Butcher,” who depopulated large swathes of the island and put inhabitants in concentration camps—that turned many Americans against Spain and convinced them that something had to be done about the festering sore 90 miles off our southern coastline.”

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[1] Aznar, McKinley, TR and Trump, A Spaniard Reflects, W.S.J. (Mar. 15, 2025).

[2] Letter by Professor Carlos Boix, Id.

[3] Letter by Michael Bezek, Id.  Bezek might be the Analytics Director at Health Catalyst in Colorado Springs.

Trump Cancels Humanitarian Parole for Cubans, Haitians, Nicaraguans and Venezuelans

On March 21, the U.S. Department of Homeland Security announced that it was terminating humanitarian parole status for Cubans and certain other Latin Americans in the U.S., effective April 24th.[1]

“Humanitarian parole is a temporary immigration status that allows individuals facing urgent humanitarian crises to enter the United States legally.

“Humanitarian parole is a legal authority that has been used for nearly a century by Republican and Democratic presidents alike to respond to humanitarian crises. For example, President Eisenhower admitted nearly 30,000 people from Hungary following the collapse of the anti-Communist revolution. From the 1960s–1990s, presidents of both parties used humanitarian parole to establish programs that helped hundreds of thousands people fleeing persecution from Cuba, Vietnam, Indochina, and other areas arrive safely in the United States. And most recently, it has been used to help Afghans after the takeover of their country by the Taliban in 2021; Ukrainians after the Russian invasion in 2022; as well as Venezuelans, Cubans, Nicaraguans fleeing persecution from authoritarian leaders and Haitians seeking safety as their government collapsed.”

“Individuals with humanitarian parole seeking to remain in the United States and those concerned for their safety can consult this guide to alternative legal options for humanitarian parolees.” [2]

==============

[1] Parole status to be terminated for CHNV newcomers (Mar. 21, 2025); Donald Trump revokes the humanitarian parole that benefited hundreds of thousands of Cubans, Diario de Cuba (Mar. 22, 2025).

[2] Alternative legal options for humanitarian parolees, Welcome.US (Mar. 21, 2025).

Cuba Suffers Another Total Collapse of Its Electrical System

On March 14th Cuba suffered a total collapse of its electrical system, leaving the island completely in the dark.

“At 10:00 PM Cuban time, Vicente de la O Levy, Minister of Energy and Mines, reported that micro-energy systems were already operating in Guantánamo, Santiago de Cuba, Holguín, Las Tunas, Ciego de Ávila, Sancti Spíritus, Villa Clara, Cienfuegos, Artemisa, and Pinar del Río, the first step toward restoring service and getting the thermoelectric plants up and running.”

“Cuba’s electricity crisis continues unabated, given the growing deterioration of the 20 thermoelectric power plants in operation, as well as the alleged shortage of fuel for distributed generation (electric motors) and the two trucks owned by the Turkish firm Karadeniz Holding that remain operating on the island.”

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Cuba suffers the fourth total collapse of its electrical system in less than half a year, Diario de Cuba (Mar. 15, 2025),

 

 

The Economist Magazine’s Critical Analysis of President Trump

The influential Economist magazine from London recently has published three critical articles about President Donald Trump: (1) “The would-be king;” (2) “Trump and the world: Europe’s Worst Nightmare;” and (3) “Trade: At the president’s pleasure.” [1]

Here are some highlights (lowlights?) of those articles.

“The world-be king”

“Mr. Trump’s every act demonstrates his belief that power is vested in him personally, and affirms he is bent on amassing more. Ignoring the legislature, he is governing by decree. . . Because some of . . .[his] orders are, on the face of it, brazenly unconstitutional, he also appears to be seeking a trial of strength with the judiciary. . . . Government departments are being thrown into confusion, partly to demonstrate Mr. Trump’s authority over them. . . . In foreign affairs too, Mr. Trump chafes to be rid of the obligations he inherited.. .. [Although] he has pledged to abide by legal rulings, [he] then quoted Napoleon, saying ‘He who saves his Country does not violate any Law.”

“Trump and the world: Europe’s worst nightmare”

“The past week has been the bleakest in Europe since the fall of the Iron Curtain. Ukraine is being sold out, Russia is being rehabilitated and, under Donald Trump, America can no longer be counted on to come to Europe’s aid in wartime.. . . The old world needs a crash course on how to wield hard power in a lawless world or fall victim to the new world disorder. . . . Mr. Trump’s shakedown of Europe and pandering to Russia have cast doubt on America’s commitment to defend NATO. . . .The problem is that if Europe comes under Russian attack and seeks America’s help, Mr. Trump’s first and deepest instinct will be to ask what is in it for him.. . In the medium term a huge [European] defense mobilization [is necessary]. . . . Paying for this rearmament will take a fiscal revolution. . . .  To raise [economic] growth, Europe must press ahead with obvious but endlessly delayed reforms.”

“Trade: At the president’s pleasure”

“What happens when you ditch the principles that underpinned global trade for three-quarters of a century. Donald Trump hopes to find out. . . . A stable multilateral trade system which has, for all its flaws, fostered miraculous rises in global prosperity gives way to arbitrary judgments made in the Oval Office.”

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[1] The Economist (Feb. 22, 2025);  “The would-be king” (p. 11), “Trump and the world: Europe’s worst nightmare” (p. 12) and  “Trade: At the president’s pleasure”  (p. 13).

How Trump Sees the World     

“It’s clear that the concept of a ‘rules-based international order’ is anathema to Mr. Trump. After all, following rules may force you to do something you don’t want to and may impose short-term costs on your country. Mr. Trump seems to think the current rules don’t promote America’s long-term interests.”

“His aim, it seems, is to maximize his freedom of action at all times. This explains why he is inclined to see alliances as burdens. Bringing your allies along with you takes time, patience and compromise. It constrains your will. Why bother? Better to deal one-on-one with friend and foe alike.”

“Binding commitments also constrain the will. Mr. Trump apparently believes deals should be revisable when they become inconvenient. You can negotiate the U.S.-Mexico-Canada Agreement with your southern and northern neighbors and then slap huge tariffs on them. That was then, this is now.”

“Mr. Trump’s approach to foreign policy is amoral—a relentless pursuit of self-interest. Appeals to principles leave him cold, as do international relationships based on ‘shared values.’ His instincts leave him unable to understand why so many people on both sides of the Atlantic are committed to an alliance of Western democracies against the rising tide of antidemocratic forces.”

“Indeed, it’s not clear that Mr. Trump prefers democracy to autocracy. He has praised autocratic leaders—Vladimir Putin, Xi Jinping, even Kim Jong Un. He admires their strength and envies their ability to act without pesky legislators and critical reporters.”

“Strength and weakness replace right and wrong in Mr. Trump’s lexicon. What matters most is leverage. If you have it, use it to the hilt. If you don’t, you must settle for what you can get. The merits of your position don’t matter.”

“Speaking of strength: Mr. Trump evidently believes that there are three great powers—China, Russia and the U.S.—and that establishing satisfactory relations among them takes priority over collateral damage to smaller countries. The idea is to return to ‘spheres of influence’: Ukraine and the ‘near abroad’ for Russia, and Panama, Canada and Greenland for the U.S.”

“And what for China? In the ‘great powers’ context, it’s not surprising that Elbridge Colby, Mr. Trump’s nominee for undersecretary of defense for policy, told the Journal that although the U.S. should be prepared to defend Taiwan, the island ‘isn’t itself of existential importance to America.’ And as Chinese pressure on the Philippines intensifies, I wonder whether Mr. Trump will honor America’s longstanding mutual-defense treaty with Manila.”

“What is of existential importance, it seems, is economics. Mr. Trump’s view is that just about every country is ‘ripping us off’ in trade. The size of the trade deficit is proof; never mind what economists say causes it. Our allies are ripping us off in defense as well. Helping them defend themselves, he thinks, costs the U.S. without attendant benefits. Mr. Trump knows the cost of everything and the value of nothing.”

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Galston, The Zelensky Spat Shows Us How Trump Sees the World, W.S.J. (Mar. 4, 2025).

 

 

 

 

Columnist Says U.S. Economic Problems May Be Reason for Trump’s Downfall   

Nicholas Kristof, a New York Times columnist, says that “what may impede Trump and preserve American democracy is not popular revulsion at the historic damage that he is doing to America but rather alarm at the myriad banal impacts on our daily lives because of Trumpian mismanagement.”

“Trump’s tariffs, even if partly delayed, presumably will raise consumer prices and hurt the financial markets and thus our retirement savings; they will create a mess of supply chains for manufacturing goods. One gauge of what to expect: The latest estimate from the Atlanta Federal Reserve is an astonishing 2.4 percent decline in American G.D.P. in the first quarter of 2025.”

“What’s more, Republicans are now apparently preparing to slash Medicaid to pay for continued tax cuts for the rich. . . [The] federal government would be providing less money to pay for health care for the roughly 72 million Americans on Medicaid. The essential reality is that the plan appears to cut health care for the poorest Americans so that the richest Americans can get a big tax cut — and this is not just morally outrageous but also politically fraught.”

When federal employees who are discharged “are health workers at a V.A. hospital, patients will notice. When they manage agriculture programs, farmers will notice.”

“In Western states, we’re already fearful of the ways the Trump cuts will hamstring firefighting during the next fire season.”

“In short, Trump-Musk incompetence and recklessness may — just may — discredit the vandals in Washington and rein them in.”

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Kristof, The Thing That  Could Be Trump’s Undoing, N.Y. Times (Mar. 8, 2024).

 

 

 

 

 

 

 

 

 

 

Washington Post’s Criticism of Trump’s Tariffs

A Washington Post editorial voices criticism of Trump’s policy and comments about tariffs.

“The market never lies. It is often mistaken, as it was during the post-election honeymoon, when investors seemed to assume Donald Trump didn’t really mean it about tariffs. But it always tells you exactly what it thinks.”

“Right now, it is thinking that the stiff tariffs Trump has imposed will cost American companies, and the economy, dearly. Markets have plummeted since Trump announced new levies on Canada, Mexico and China, erasing nearly all gains since his election. The president might think that “trade wars are good, and easy to win,” but investors disagree.”

“In this, they reflect not only the consensus among economists but also the realities facing American businesses and consumers.”

“’Customers are pausing on new orders as a result of uncertainty regarding tariffs,’ a transportation equipment company reported. ‘The incoming tariffs are causing our products to increase in price,’ a machinery manufacturer said. A maker of electrical equipment added, ‘The uncertainty about tariffs keeps us cautious on spending, despite the strong sales right now.’”

“’Regime uncertainty’ is the economic term for worries like these. Investments take time to pay off, and when government policy constantly shifts, companies have a hard time telling whether an investment will be worth it. Investors, too, get nervous about the rules governing businesses and those surrounding the taxation of their profits. By slowing investment and innovation, regime uncertainty stifles the economy and makes it harder to attract foreign investment.”

The ” president’s frequent shifts in policy stand to have a chilling effect. In the past month alone, tariffs have been imposed, delayed, reimposed, and now — at least for some categories of goods — delayed for another month. Adding to the unease are the administration’s attacks on the justice system, which foreign investors, especially, are bound to be watching. To repeat: There is a reason that so much foreign debt is structured to be governed by U.S. law. Signaling that America’s trade policies could change at any time, and that its justice system is vulnerable to political influence, risks the country’s position as a global destination for securities issuance and investment capital.”

“The haste with which this year’s tariffs have been imposed, and Trump’s dubious rationales for imposing them, justifiably make people worry that the current trade rules could be rewritten again and again.”

“And while companies could resolve this uncertainty once and for all by making, and sourcing, products in the United States, this is a costly proposition — too costly, in some cases, to be worthwhile. If domestically made products are more expensive than foreign ones, investments might not pencil out, and some exporters might find themselves priced out of global markets. This retrenchment will ripple through an economy that already looks fragile.”

“On the same day that the Trump administration announced the tariffs would go into effect, the Federal Reserve Bank of Atlanta said it had revised its estimate of first quarter gross-domestic product downward, to -2.8 percent. Consumers say they are nervous about inflation, job prospects and, yes, tariffs.”

“[M]anufacturers think abrupt changes in trade policy are bad for business.”

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Editorial,  The market’s grim view of tariff shenanigans, Wash. Post (Mar.7, 2025).