Lazy Caturday Reads

Good Afternoon!!

I didn’t think there would be much to write about today after Dakinikat’s post last night, but there actually are a whole lot of things happening–far more than I can cover here. With Trump, it’s always maximum chaos every day of the week. Here are some of the stories that captured my interest this morning.

The effects of Trump’s tariffs

We’ve seen the last of the ships without massive tariffs arriving in U.S. ports, and now we’re seeing the results of Trump’s insane policies.

CNN: Zero ships from China are bound for California’s top ports. Officials haven’t seen that since the pandemic.

On Friday morning, West Coast port officials told CNN about a startling sight: Not a single cargo vessel had left China with goods for the two major West Coast ports in the past 12 hours. That hasn’t happened since the pandemic.

Six days ago, 41 vessels were scheduled to depart China for the San Pedro Bay Complex, which encompasses both the Port of Los Angeles and Port of Long Beach in California. On Friday, it was zero.

President Donald Trump’s trade war imposed massive tariffs on most Chinese imports last month. That’s led to fewer ships at sea carrying less cargo to America’s ports. For many businesses, it is now too expensive to do business with China, one of America’s most important trading partners.

Officials are concerned not just about the lack of vessels leaving China, but the speed at which that number dropped.

“That’s cause for alarm,” said Mario Cordero, the CEO of the Port of Long Beach. “We are now seeing numbers in excess of what we witnessed in the pandemic” for cancellations and fewer vessel arrivals.

The busiest ports in the country are experiencing steep declines in cargo. The Port of Long Beach is seeing a 35-40% drop compared to normal cargo volume. The Port of Los Angeles had a 31% drop in volume this week, and the Port of New York and Jersey says it’s also bracing for a slowdown. On Wednesday, the Port of Seattle said it had zero container ships in the port, another anomaly that hasn’t happened since the pandemic….

“If things don’t change quickly, I’m talking about the uncertainty that we’re seeing, then we may be seeing empty products on the shelves. This is now going to be felt by the consumer in the coming 30 days,” said Cordero….

That doesn’t sound good to me, but Trump thinks it’s great.

Fortune, via Yahoo News: Trump calls emptying U.S. ports a ‘good thing’ despite supply-chain panic because ‘that means we lose less money.’

As logistics professionals sound the alarms on emptying U.S. ports as a result of steep tariffs, President Donald Trump said those major import slowdowns are actually a boon.

Following Trump’s introduction of sweeping tariffs, shipping volumes have fallen considerably, according to data from container-tracking software company Vizion. In the period between the five weeks before and five weeks after Trump introduced and implemented his tariff plan, virtually all major U.S. ports saw a decline in the number of container books. The Port of Portland in Oregon saw a 50% drop in exports, and the Port of Los Angeles, the U.S.’s largest outpost, had 17% lower exports. From the week ending April 28, Vizion reported a 43% week-over-week decrease in containers.

By Yayoi Kusama

Port of Los Angeles executive director Gene Seroka warned last month of a “precipitous drop” in shipping volumes, saying American retailers will have fully stocked shelves for only about another six weeks.

Trump not only acknowledged the shipping slowdown in a Thursday press briefing announcing a trade deal with the UK; he seemed heartened by it.

“We’re seeing as a result that ports here in the U.S., the traffic has really slowed and now thousands of dockworkers and truck drivers are worried about their jobs,” a reporter said in the press briefing.

“That means we lose less money,” Trump said. “When you say it slowed down, that’s a good thing, not a bad thing.”

He really is the stupidest president in the 250-year history of this country. He thinks it’s a good that longshore workers, truck drivers, and workers at package delivery companies like UPS and Amazon are going lose their jobs? That store shelves will be empty? That small businesses will quickly go bankrupt? He’s a fucking moron.

The Wharton School at the University of Pennsylvania release an analysis of the economic effects of the Trump’s tariffs. Here’s the introductory summary:

Summary: Many trade models fail to capture the full harm of tariffs. PWBM projects Trump’s tariffs (April 8, 2025) will reduce long-run GDP by about 6% and wages by 5%. A middle-income household faces a $22K lifetime loss. These losses are twice as large as a revenue-equivalent corporate tax increase from 21% to 36%, an otherwise highly distorting tax.

Key Points

• Revenue Impact: President Trump’s tariff plan (as of April 8, 2025) is projected to raise significant revenue—over $5.2 trillion over 10 years on a conventional basis (with micro-elastic responses) and $4.5 trillion on a dynamic basis (with economic effects). This revenue could be used to reduce federal debt, thereby encouraging private investment.
• Comparison with a Corporate Tax Increase: Tariffs are estimated to raise about the same amount of revenue as increasing the corporate income tax from 21 to 36 percent, in the absence of these recent tariffs. While raising the corporate tax rate is generally seen as highly economically distorting, tariffs would reduce GDP and wages by more than twice as much. All future households are worse off. The estimated economic declines are likely lower bounds, with actual declines potentially even larger.
• Broader Economic Impact: Many existing trade and macroeconomic models fail to capture the full harm caused by tariffs. Larger tariffs reduce the openness of the economy, including international capital flows. This is especially costly under the nation’s current baseline debt path, which is increasing faster than GDP, that is generally excluded from trade models or treated as neutral (Ricardian). U.S. households would need to purchase more bonds, requiring bond prices to fall (yields increase), domestic capital investment prices to fall (the marginal product of capital increases), or both. Even conservatively assuming only domestic capital investment prices fall, the reduction in economic activity is more than twice as large as a tax increase on capital returns that raises the same amount of revenue.

I’m sure Trump hasn’t seen this report and wouldn’t understand it if he did.

China is poised to profit from Trump’s tariff obsession. David Pierson at The New York Times: This Is the Trade Conflict Xi Jinping Has Been Waiting For.

Xi Jinping has been preparing for this moment for years.

In April 2020, long before President Trump launched a trade war that would shake the global economy, China’s top leader held a meeting with senior Communist Party officials and laid out his vision for turning the tables on the United States in a confrontation.

Tensions between his government and the first Trump administration had been simmering over an earlier round of tariffs and technology restrictions. Things got worse after the emergence of Covid, which ground global trade to a halt and exposed how much the United States, and the rest of the world, needed China for everything from surgical masks to pain medicines.

Cat catching mouse, by Koson Ohara

Faced with Washington’s concerns about the trade imbalance, China could have opened its economy to more foreign companies, as it had pledged to do decades ago. It could have bought more American airplanes, crude oil and soybeans, as its officials had promised Mr. Trump during trade talks. It could have stopped subsidizing factories and state-owned companies that made steel and solar panels so cheaply that many American manufacturers went out of business.

Instead, Mr. Xi chose an aggressive course of action.

Chinese leaders must “tighten international production chains’ dependence on our country, forming a powerful capacity to counter and deter foreign parties from artificially disrupting supplies” to China, Mr. Xi said in his speech to the Central Financial and Economic Affairs Commission in 2020.

Put simply: China should dominate supplies of things the world needs, to make its adversaries think twice about using tariffs or trying to cut China off.

A bit more:

Mr. Xi has ramped up exports and deepened China’s position as the world’s leading base for manufacturing, in part by directing the state-controlled commercial banking system to lend an extra $2 trillion to industrial borrowers over the past four years, according to data from China’s central bank. He has also introduced new weapons of economic warfare to the country’s arsenal: export controls, antimonopoly laws and blacklists for hitting back at American companies.

So when the current Trump administration slapped huge tariffs on Chinese goods, China was able to go on the offensive. Besides retaliating with its own taxes, it imposed export restrictions on a wide range of critical minerals and magnets, the global supply of which China had cornered. Such minerals are essential for assembling everything from cars and drones to robots and missiles.

In the United States, the looming threat of empty store shelves and higher consumer prices is putting pressure on the Trump administration. The prices of some critical minerals have tripled since China unveiled its curbs, according to Argus Media, a London commodities research firm.

“It’s about flipping the leverage so that the world is reliant on China, and China is reliant on no one. It is a reversal of what Xi has been so irritated about, which is that China was so dependent on the West,” said Kirsten Asdal, a former intelligence adviser at the U.S. Department of Defense who now heads a China-focused consultancy firm, Asdal Advisory.

Trump’s attitude toward natural disasters

We’re approaching hurricane season, and it looks like states are going to be on their own when such disasters hit. Here’s the latest on Trump’s plans for FEMA.

CNN: Trump’s acting FEMA chief fired a day after breaking from the administration.

The acting administrator of the Federal Emergency Management Agency has been fired one day after he broke with fellow members of the administration when he told lawmakers he does not support dismantling the agency, a Department of Homeland Security spokesperson confirmed to CNN.

Cameron Hamilton, who was appointed by President Donald Trump, was escorted out of FEMA’s headquarters on Thursday, according to multiple sources familiar with the situation.

“It’s at the discretion of (Homeland Security Secretary Kristi Noem) to have the personnel she prefers,” DHS spokesperson Tricia McLaughlin told CNN, confirming that DHS official David Richardson will take over for Hamilton effective immediately. McLaughlin declined to explain why Hamilton was removed from the post.

The move comes one day after Hamilton defended FEMA during testimony in front of the House Appropriations Committee.

Woman and Cat, by Ukiyo-e Kuniyoshi

“As the senior advisor to the President on disasters and emergency management, and to the Secretary of Homeland Security, I do not believe it is in the best interest the American people to eliminate the Federal Emergency Management Agency,” Hamilton told the committee Wednesday. “Having said that, I am not in a position to make decisions and impact outcomes on whether or not a determination as consequential as that should be made. That is a conversation that should be had between the President of the United States and this governing body.”

For months, both Trump and Noem, whose Department of Homeland Security oversees FEMA, have called for the agency to be “eliminated.” On Tuesday, Noem reaffirmed that stance when she took questions from the same House committee.

“President Trump has been very clear since the beginning that he believes that FEMA and its response in many, many circumstances has failed the American people, and that FEMA, as it exists today, should be eliminated in empowering states to respond to disasters with federal government support.” Noem told the committee.

The Associated Press reports on the new FEMA boss: ‘Don’t get in my way,’ the new acting head of federal disaster agency warns in call with staff.

The new head of the federal agency tasked with responding to disasters across the country warned staff in a meeting Friday not to try to impede upcoming changes, saying that “I will run right over you” while also suggesting policy changes that would push more responsibilities to the states.

David Richardson, a former Marine Corps officer who served in Afghanistan, Iraq and Africa, was named acting administrator of the Federal Emergency Management Agency on Thursday just after Cameron Hamilton, who’d been leading the agency, also in an acting role, was fired.

Richardson has been the Department of Homeland Security’s assistant secretary for countering weapons of mass destruction. He does not appear to have any experience in managing natural disasters, but in an early morning call with the entire agency staff he said that the agency would stick to its mission and said he’d be the one interpreting any guidance from President Donald Trump.

Prefacing his comments with the words “Now this is the tough part,” Richardson said during the call with staffers across the thousands-strong agency that he understands people can be nervous during times of change. But he had a warning for those who might not like the changes — a group he estimated to be about 20% of any organization.

“Don’t get in my way if you’re those 20% of the people,” he said. “I know all the tricks.”

“Obfuscation. Delay. Undermining. If you’re one of those 20% of the people and you think those tactics and techniques are going to help you, they will not because I will run right over you,” he said. “I will achieve the president’s intent. I am as bent on achieving the president’s intent as I was on making sure that I did my duty when I took my Marines to Iraq.”