Quotulatiousness

October 20, 2025

Carney’s trip to Egypt, without the pesky Canadian media tagging along

Filed under: Cancon, Media, Middle East, Politics, USA — Tags: , , , , , — Nicholas @ 05:00

I guess it’s slightly to Prime Minister Mark Carney’s credit that he was able to get a last-second invitation to attend President Trump’s latest international triumph … we all know how Mr. Carney loves him a nice photo op. But it was almost unprecedented that he nipped over to Egypt without taking any of the usual flappers and fart-catchers of the Canadian media along with him:

X-post by former PMO chief of staff Norman Spector, who noticed something was up concerning how the Prime Minister’s team got its message out
Image and caption from The Rewrite by Peter Menzies

Last week, the Parliamentary Press Gallery (PPG) and I had something in common.

We were both dismayed.

They, because they weren’t invited to join Prime Minister Carney on his last-minute trip to Egypt for a photo opp; Me because most of them didn’t seem all that interested in looking into the circumstances of the PM’s hasty departure and instead allowed themselves to be played in the most appallingly obvious manner.

What got the PPG’s knickers twisted was that they weren’t invited to accompany Carney when he departed Ottawa in a rush to get to the Egyptian resort of Sharm El Sheikh, a popular spot on the Red Sea for the world’s glitterati. It took PPG President Mia Rabson a couple of days to issue a statement, but she made it clear the PPG disapproved:

    The Parliamentary Press Gallery was not informed in advance of the Prime Minister’s trip to Egypt to participate in the Middle East Peace Ceremony on Oct. 12-13, […] The Gallery is disappointed and dismayed at the exclusion of Canadian media from the event and expresses in no uncertain terms that this must never happen again.

    It is unprecedented that Canadian media be entirely excluded from a Canadian prime minister’s foreign trip.

The only reporting I could find on this was in Politico, where it was recorded that the PMO had posted this notice: “6:30 p.m. The Prime Minister will depart for Sharm el-Sheikh, Egypt, to attend the signing of a Middle East peace plan. Closed to media.”

What first caused my jaw to drop and to become, like Rabin, disappointed and dismayed, were the stories left unpursued. On the morning of Oct. 12, Canada was not listed as among the countries invited to join in the “peace summit” associated with the ceasefire deal reached between Israel and Hamas. If it had been, the prime minister may not have had to charter a private jet because the usual Royal Canadian Air Force planes and crews were, as City News‘s Glen MacGregor reported, unavailable.

There are two lines of journalistic inquiry there, neither of which appears to have been of interest. The first is: how can Canada’s military be so poorly equipped that there isn’t at all times a fully-equipped aircraft and crew on standby and is this an issue that will be addressed in the future? The second is: how did we wind up getting invited to the peace summit? Comments by US President Donald Trump indicate that we weren’t initially considered important enough to be on site but phoned to ask if we could join the party. (The Line — which doesn’t accept government subsidies — noticed.)

Trump, in remarks to media said: “You have Canada. That’s so great to have, in fact. The president called and he wanted to know if it’s worth — well he knew exactly what it is. He knew the importance. Where’s Canada, by the way? Where are you? He knew the importance of this.”

What was pursued, at least in comments online by journalists, was Trump’s inability to identify Carney by his correct title. (In an exchange that followed, Carney sarcastically thanked Trump for elevating him and, in response, was told “at least I didn’t call you governor”. Ha ha.)

Everyone is free to make their own decisions, but if Canada had to call Trump to ask to be invited, Canadians need to know if that means we are in the president’s debt. Trump, after all, seems like the sort of guy who keeps score.

But it’s what followed that really got creepy. While Canadian reporters were not allowed to accompany the prime minister to Egypt, someone who says he or she was on the plane started phoning around to tell reporters what happened. And they went for it. The Globe and Mail, Toronto Star and Politico all reported unverified statements emanating from a single, unnamed source. The Globe‘s Robert Fife reported that “a senior government official” said that while Carney and others thought they were just in Egypt for a photo opp, during a four hour wait for Trump to arrive from Israel “Mr. Carney had back-and-forth conversations with a group of leaders”.

So, after a bit of ritual humiliation — par for the course with Trump and Carney — the PM got to have unstructured/unfocused chit-chat with other diplomatic rag-tag and bob-tail clinging to the President’s cape. Not a good look, but Canadians must be getting inured to their national leaders being treated as, at best, an afterthought.

October 19, 2025

Printed Maplewash from Random Penguin “Canada”

Filed under: Books, Business, Cancon, Media, Politics, USA — Tags: , , , , — Nicholas @ 06:00

In the latest SHuSH newsletter, Ken Whyte discusses one of the most cynical and blatant attempts to “Maplewash” US product as 100% home-grown Canadian: a book of essays by living and dead Canadian authors, titled with the Liberals’ moronic “Elbows Up” slogan … with all the profits going to Random Penguin’s US corporate headquarters:

Ever since the Trump tariffs against Canada were launched last spring, US firms operating in Canada have been engaged in a variety of maple-washing tactics to shield themselves from consumer backlash. Some are as simple as new labelling — “prepared in Canada!” More audacious was McDonald’s effort to make everyone forget it’s the White House’s caterer of choice: a partnership with Canada’s sweetheart, Shania Twain.

You might think the McDonald’s gambit would be hard to top, but Penguin Random House has done it.

Penguin Random House Canada is a division of Penguin Random House LLC, corporate headquarters at 1745 Broadway, 3rd Floor, New York, New York, 10019. Penguin Random House LLC is in turn controlled by Bertelsmann, a media conglomerate in Gütersloh, Germany, but legally and operationally, it is a US company. Its executive leadership, including CEO Nihar Malaviya, works out of the above address. Strategy and publishing priorities are set in New York, and profits in PRH’s many far-flung international divisions flow to New York. You can see why this firm, with its dominant position in the Canadian market, might feel vulnerable and want to camouflage its Americanness when everyone starts shouting “buy Canadian!”

[…]

There are at least four levels of cynicism to Elbows Up!

The first — let’s call it eye-popping — is that Penguin Random House Canada would use so many of its own authors as human shields in a trade war. I mean, that’s cold. You not only have to conceive it, you have to be confident the authors are so oblivious that they won’t notice — or so obliged that they won’t care — that they’re laundering the reputation and protecting the economic interests of a US multinational and that the net proceeds from their rousing defence of Canadian sovereignty are going straight to 1745 Broadway, 3rd Floor, New York, New York, 10019, along with the licensing rights to their contributions.

[…]

The third level of cynicism — gobsmacking — is that Penguin Random House Canada used its McClelland & Stewart imprint for this atrocity.

I’m not sure there’s ever been a more important Canadian cultural institution than M&S. In the second half of the twentieth century, it was synonymous with Canadian literature. It published the core of the modern Canadian canon — Margaret Atwood, Leonard Cohen, Alice Munro, Mordecai Richler, Mavis Gallant, Robertson Davies, Rohinton Mistry, and many others. More than that, M&S was a symbol of our cultural sovereignty. Its catalog is the closest thing we’ll ever have to the Elgin Marbles.

Jack McClelland, who built the company, ran into financial trouble and sold M&S to strip-mall baron Avie Bennett in 1986. In 2000, Bennett cashed out, selling 25 percent of M&S to Penguin Random House and granting 75 percent to the University of Toronto because federal rules required majority Canadian ownership of cultural enterprises. It was an ingenious deal: UofT played the stooge of Canadian control; PRH had its way with the jewel of Canadian publishing; M&S remained eligible for federal grants because of its “Canadian ownership”. Then, in 2011, the U of T quietly transferred its shares to PRH, giving the multinational full ownership, never mind the foreign-ownership rules. UofT explained that playing the stooge of Canadian control was no longer “a core business” of the university. The house that built Canadian literature, along with its full catalogue of Canadian classics was now fully domiciled at 745 Broadway, 3rd Floor, New York, New York, 10019. The feds didn’t lift a finger.

I don’t know what you’d call that but a cultural crime.

And I don’t know what you can say about PRH using M&S for its maple-washing exercise beyond that it’s gloating.

The final level of cynicism — this one’s just sad — is that Elbows Up! is a forgettable book. It has none of the freshness, quirkiness, and genuine intellectual engagement of The New Romans. It takes as its title a partisan Liberal slogan from the last election (an act of toadying that probably qualifies as its own level of cynicism). A few of the essays, particularly those by the younger writers, are interesting, but none of them has much to say about Canada’s current predicament or the nature of the Canada-US relationship. I was struck by how many of the contributors can’t see beyond their narrow professional or personal identities. It’s as though they’ve never before been called upon to consider Canada as a whole. They lack the vocabulary to contribute anything meaningful. Also, the emotional tone is oddly flat from start to finish.

October 18, 2025

Remembering GamerGate

We’ve lived through such a tumultuous decade that it’s sometimes difficult to remember what things were like in the “before times”. On Substack chat, John Carter linked to this essay by Billionaire Psycho which helps refresh memories about one of the seminal events that kicked off the political and social chaos of the last decade:

GamerGate is maybe the most important event of the past 20 years which never receives mainstream media coverage. Lomez will be publishing an in-depth history of GamerGate, to serve as an official record going forward, and that’s crucial as part of building a foundation for a new culture — fighting the narrative war over how history is remembered, how history is interpreted, what events are recognized as significant and influential moments in culture, and how Western identity is defined.

GamerGate was only possible because a generation of incompetent Leftists inherited an empire built on propaganda that came without a legible instruction manual. Leftists forgot how to run their imperial machine. Video games sedated young white men, funneling their energy into a simulation of achievement, an illusory power fantasy of digital significance. Leftists forgot that porn, video games, movies, junk food, and other passive consumption activities primarily existed to prevent young white men from doing anything useful with their lives. And this zone of sedation was viewed as another industry to conquer so that DEI activists could bully the video game industry into providing overproduced elites with fake jobs.

This event was important for several reasons.

GamerGate exposed American Sharia laws. It unveiled the shibboleths, religious taboos, and blasphemy codes which were considered more important than Constitutional protections on “free speech”. A gulf emerged between written laws, and selective enforcement.

GamerGate was maybe the first time in 50 years that Leftists suffered a real, measurable defeat.

It functioned as a generational awakening: a catalyst that activated a decentralized army of shytpoasters, bloggers, podcasters, streamers, journalists, and RW activists.

It mapped out in real-time the architecture and OODA loop of the Leftist hivemind, providing empirical data on how the swarm intelligence perceives, coordinates, reacts, propagates … and suffers damage.

It educated critics of the hegemonic monoculture that rules the Global American Empire.

But I think the most important aspect of GamerGate was that it disproved the narrative illusion that everyone more or less accepted as conventional wisdom, the bedrock of the uniparty worldview. Before GamerGate, it was taken as a self-evident fact that America was a capitalist country, and that all of the evil in the world was caused by Wall Street corporations chasing “shareholder value” and advancing “the profit-motive”. Capitalism and racism were the invisible demons which could be used as scapegoats for anything bad that ever happened at any point and at any place in American society.

Leftism could do anything it wanted, no matter how dumb, destructive, intrusive, or evil — and then blame capitalism and racism for the consequences.

This illusion was shattered by GamerGate.

[…]

There’s one important thing that’s been lost since GamerGate (GG) and the Meme War of 2016, which is the adolescent fun, transgressive irreverence, and juvenile sense of humor which once characterized the RW youth. There was a brief window when video game enthusiasts believed they could meme their way to victory (they did), win a landslide election (they did), and reverse imperial decline (they didn’t). Ten years have passed since then. Countless accounts have been banned, doxxed, deplatformed, debanked. Dissidents have been prosecuted and imprisoned. The presidency of 2016 was stalled out and subverted, the election of 2020 was stolen, the election of 2024 almost ended in an assassination on live television. Covid lockdowns crashed the economy and trapped everyone in their homes, while Antifa and Black Lives Matter rioted outside in the name of George Floyd.

At some point, it stopped being fun, and the contest turned into a forever war.

Comedy turned serious.

But it should be remembered that in the aftermath of GamerGate, humor and a playful, childish energy fueled the engine of RW victories. That’s the secret ingredient.

Samizdat is the key to winning.

Always remember to keep having fun, and keep laughing, because our enemies are ridiculous.

October 17, 2025

Stellantis took the bribe, left Canada anyway

Filed under: Business, Cancon, Government, Politics, USA — Tags: , , , , , — Nicholas @ 04:00

The former American Motors plant in Brampton, now owned by Stellantis, was supposed to be the manufacturing site for a new Jeep vehicle. The federal government under Justin Trudeau handed about $15 billion to Stellantis to build an EV battery complex in Windsor, Ontario. It was apparently just assumed that this meant that Stellantis would keep the Brampton facility open and operating, but that assumption was faulty:

Stellantis has announced they’re leaving Brampton. That’s it. End of story.

Three thousand workers. Gone. A manufacturing base gutted. A city thrown into economic chaos. And a federal government left holding a $15 billion bag it handed over like a drunk tourist at a rigged poker table.

The Jeep Compass — the very vehicle they promised would anchor Ontario’s role in the so-called “EV transition” — will no longer be built in Canada. Production is moving to Belvidere, Illinois. The same company that cashed billions of your tax dollars under the banner of “green jobs” and “economic transformation” has slammed the door and walked out. And no, this isn’t a surprise. This was baked into the cake from day one.

Let’s rewind.

In April 2023, under Justin Trudeau’s government, Chrystia Freeland — then Finance Minister — and François-Philippe Champagne, the Industry Minister, announced what they called a “historic” agreement: a multi-billion-dollar subsidy package to Stellantis and LG Energy Solution to build an EV battery plant in Windsor, Ontario.

It was sold as a turning point. The future. A Green Revolution. Thousands of jobs. A new industrial strategy for Canada. But in reality? It was a Hail Mary pass by a government that had already crippled Canada’s energy sector and needed a shiny new narrative heading into an election cycle.

And here’s what they didn’t tell you: the deal had no enforceable commitment to keep auto production in Brampton. There were performance-based incentives — yes — but only for the battery plant. Not for the Brampton assembly line. Not for the existing workforce. And certainly not for ensuring the long-term health of Canada’s domestic auto industry.

They tied this country’s future to a globalist fantasy. A fantasy that assumed the United States would remain under the control of climate-obsessed technocrats like Joe Biden. A fantasy that required a compliant America pushing carbon neutrality, electric vehicle mandates, and billions in matching subsidies for green infrastructure.

But in November 2024, Americans said no.

Donald Trump was elected president. And just as he promised, he tore Biden’s green agenda to shreds. He pulled out of the Paris Climate Accord — again. He dismantled the EV mandates. He unleashed American oil and gas. But he didn’t stop there. Trump imposed a sweeping America First manufacturing policy, pairing 25% tariffs on imported goods with aggressive incentives to bring factories, jobs, and supply chains back onto U.S. soil.

And, as Conservative deputy leader Melissa Lantsman points out, it’s just the beginning:

You probably heard the news by now: Stellantis is cancelling its opening of a Jeep factory planned in Brampton, taking over 3,000 jobs and USD $600 million of investment out of Canada and moving it to the U.S.

This is the latest development in the growing trend of companies scaling back their operations in our country and choosing instead to grow in the US. Whisky maker Diageo found its name in the headlines last month when they announced they’d move their Crown Royal bottling facility south. GM laid off or cut down shifts for 750 autoworkers in Oshawa and 900 in Ingersoll while sending $4 billion to the U.S. Those are the ones that drew the headlines.

Why is this happening? Well – the reason on everyone’s mind right now is tariffs. And it’s true – tariffs are having a big impact on the Canadian economy and on our trading relationships. But there are other, deeper reasons at play, too.

Companies don’t just make decisions on a whim – especially those related to long-run production and fixed investments totalling hundreds of millions or even billions of dollars. Those decisions are made as part of detailed, multi-year analyses that take into account predicted economic conditions, market forces, and many other factors. A massive move of your production facility isn’t a temporary, six-month decision to be trifled over – it’s a permanent thing and that means they aren’t coming back.

The objective is to decrease uncertainty, cut costs, increase production, etc. etc. all to work in favour of any company’s ultimate goal, which is, of course, to make money.

So let me translate what all these investment and job cuts really mean: they’re not a knee-jerk reaction to the tariffs, although those play a part. They’re a statement about the long-term trajectory of the Canadian economy and the kind of climate that a decade of Liberal government has built for businesses in this country.

If these companies thought the U.S. tariffs would be transitory, a six-month blip, an economic fad – then they’d have no reason to cancel factories that will be producing goods for 20 or 30 years. That wouldn’t make financial sense.

[…]

If things get worse, the government might resort to its favourite strategy of just offering more hand-outs for businesses to try and entice them to stay here, but that only works for so long. That Stellantis plant in Brampton? The one that’s moving to the U.S.? The Ontario government promised them over $500 million just a few years ago – and the feds followed.

Turns out, you can promise to cut somebody a giant cheque and it’s still unprofitable for them to do business here.

As I mentioned, the continued trade uncertainty doesn’t help our situation, and the Prime Minister’s failure to get a deal is costing us big-time – especially as he promises to drive a trillion dollars of investment southbound at the expense of our workers here.

But as long as the Liberals keep the same old approach towards economics and business in this country, as long as the Liberals keep the taxes high, the productivity low, and the red tape piled up high — expect to see more headlines like the one about Stellantis, not fewer.

How many more job losses will it take for our leaders to realize that?

October 16, 2025

RIFfing the US federal workforce

Filed under: Government, Media, Politics, USA — Tags: , , , , — Nicholas @ 03:00

In Reason, J.D. Tuccille considers the impact of the US government shutdown on the federal civil service:

“Lincoln Memorial During Government Shutdown 2013” by Flickr user reivax is licensed under CC BY-SA 2.0 .

As promised — or threatened, if you wandered over to Reason by accident — the Trump administration has started using the government sort-of-shutdown as an opportunity to engage in mass layoffs of federal employees. In the game of chicken between Republicans and Democrats over just how much the government should overspend and on what, the losers so far appear to be some of the almost 3 million Americans who thought federal employment would be a comfortable way to collect a paycheck.

Setting thousands of former government workers loose to seek jobs elsewhere — preferably not involving money forcibly extracted from taxpayers — is a step in the right direction.

Shutdowns Are (Mostly) Political Theater

As we all should know by now, government shutdowns are largely political theater. National parks and museums are closed to inconvenience the public into believing something big is happening even as taxes keep getting collected and government enforcers continue twisting arms to make sure people comply with laws and rules that never should have been imposed.

The Brookings Institution’s David Wessel pointed out last week, “the Justice Department said 90% of its employees would be exempted from the furlough” and “the Department of Homeland Security said in its 76-page contingency plan that roughly 95% of its nearly 272,000 employees would remain on the job if a shutdown occurred”. Agencies accomplish this by defining “essential” employees who remain on the job in the broadest way possible.

Paychecks may be delayed during the shutdown. But after it ends, “employees who were required to perform excepted work during the lapse will receive retroactive pay” and “employees who were furloughed as the result of the lapse will receive retroactive pay for those furlough periods” according to the Office of Personnel Management. Basically, all federal employees eventually get paid whether they continue to work or are sent home for the duration of the “shutdown”.

An Opportunity To Reduce the Federal Workforce

At least, that’s how it usually works. This time is a little different because the Trump administration came into office promising to downsize the federal government. The Department of Government Efficiency (DOGE) was supposed to accomplish that goal, but the shutdown offers another opportunity. Even before furloughs began, the Office of Management and Budget (OMB) sent out a memo noting:

    With respect to those Federal programs whose funding would lapse and which are otherwise unfunded, such programs are no longer statutorily required to be carried out. Therefore, consistent with applicable law, including the requirements of 5 C.F.R. part 351, agencies are directed to use this opportunity to consider Reduction in Force (RIF) notices for all employees in programs, projects, or activities (PPAs) that satisfy all three of the following conditions: (1) discretionary funding lapses on October 1, 2025; (2) another source of funding, such as H.R. 1 (Public Law 119-21) is not currently available; and (3) the PPA is not consistent with the President’s priorities.

The White House is apparently taking this opportunity seriously. “Around 4,200 employees were laid off in total on Friday,” reports Eric Katz of Government Executive. The biggest cuts were at the Department of the Treasury (1,446 employees) and the Department of Health and Human Services (between 1,100 and 1,200 employees). The Department of Education, which President Trump proposes to totally eliminate, also experienced layoffs (466 or nearly 20 percent of its remaining workforce), as did the Environmental Protection Agency, Homeland Security, and Housing and Urban Development.

Everything this administration does seems to involve a bit of chaos, and the latest rounds of reductions in force are no different. While hundreds of employees of the Centers for Disease Control and Prevention (CDC) were included in the layoffs, some were fired by accident and immediately rehired.

Chris Bray notes that — stop me if you’ve heard this before — a district court judge has ruled that the President doesn’t have the power to do, well, pretty much anything to do with the federal workforce (what is it with the executive branch thinking they have powers that haven’t been explicitly approved by the judiciary?):

After a just absolutely bizarre hearing in a Northern California federal court, a judge has forbidden the Trump administration from laying off government employees. The hearing may have been held in the Court of the Red Queen: After Counsel to the Assistant Attorney General Elizabeth Hedges argued that she wasn’t going to get into the legal merits of the Trump administration’s layoffs because the court lacked jurisdiction and the plaintiffs hadn’t met the legal standards for filing a lawsuit, Judge Susan Illston warned that, actual quote, “This hatchet is falling on the heads of employees all across the nation and you’re not even prepared to address whether that’s legal?” Getting laid off is a hatchet attack, so we skip the arguments about ripeness and standing. It’s emotionally dire, a thing that feels very bad. Judges talk like this, now. OH GOD COUNSEL THIS IS LIKE A THING WITH A KNIFE THAT WOUNDS ME. Objection, your honor, inadequate trigger warning. […]

Illston declared the existence of a temporary restraining order from the bench, and I’ve been waiting for her written order to land on PACER. It’s here, and it’s … very … Well, okay: It has a lot of feelings. […]

Opening paragraphs, first page:

Note that the first paragraph frames federal RIFs as historically unprecedented, while the second paragraph frames the current federal RIFS as not ordinary: different than the way RIFs are usually conducted. So this is unprecedented, but it has happened before, and the problem with the unprecedented thing is that it’s not being done the way the thing that has never been done before is usually done.

But anyway, a reduction in force of federal personnel during a shutdown is “unprecedented in our country’s history”. Of course, a reduction of force alone is not at all unprecedented, and the Clinton administration reduced the size of the federal bureaucracy by about 400,000 people. Illston doesn’t articulate a reason why reducing the bureaucracy during a shutdown is worse, or a reason why Clinton RIFs were good but Trump RIFs are a violent hatchet attack, but she clearly feels it. Of course, during a shutdown, the agencies being shrunk have no approved funding, so it would seem to make more sense to be careful about personnel costs, but this argument means that I just hurt people with a hatchet.

Above all, note that the argument out of the gate is a normative argument, not a legal argument. This is unprecedented! This is not ordinary! If a judge feels that something is a little off, she can order it stopped.

October 12, 2025

Restricting activism from the bench

Filed under: Britain, Government, Law, Liberty, Politics, USA — Tags: , , , , , — Nicholas @ 09:05

As we’ve seen far too many times in Canadian courts, when judges become politically active, they can produce far worse situations than the politicians who cynics might say are specialists in that discipline. British judges, however, are still well ahead of their Canadian counterparts:

Until judges are replaced by robots, we will have to accept the reality of activist judges. Even the most august patriarch of the bench cannot wholly escape his innate human biases. And so perhaps there was something in Robert Jenrick’s speech at this week’s Conservative Party Conference, in which he announced that, if elected, the Tories would empower the Lord Chancellor to appoint judges and more carefully scrutinise their political activities.

Those who have supported the ideological capture of our major institutions were understandably furious. The New Statesman claimed that Jenrick had “declared war on the judiciary”. But then, the New Statesman is an activist publication which can make no serious claim to impartiality or sound journalistic standards. (Those in any doubt about its mendacity should take the time to read about its shameful treatment of Roger Scruton.)

The problem of an activist judiciary is currently preoccupying the White House, given that a number of federal judges have attempted to block executive policies or have issued nationwide injunctions. Trump himself was convicted on thirty-four felony counts by a judge who had made small political donations to Democratic-aligned causes. It seems clear that given these circumstances he ought to have recused himself. The entire case, of course, was an example of the law being twisted for politically partisan ends. (The best overview is by the senior legal analyst for CNN, Elie Honig, which can be read here.) Little wonder that Trump now appears to be seeking revenge through the courts.

In the UK, there have been a number of revelations of judges tied to political causes whose claim to impartiality seems shaky at best. During his speech, Jenrick spoke of those judges who have been associated with pro-immigration campaign groups and have “spent their whole careers fighting to keep illegal migrants in this country”. Many commentators have observed a generalised bias toward asylum applications, sometimes to an absurd extent. Who could possibly forget the Albanian criminal whose deportation was halted by an immigration tribunal on the grounds that his ten-year-old son did not like foreign chicken nuggets?

Leaving such outliers aside, most of us will have noticed patently ideological remarks occasionally uttered by judges during sentencing. In the Lucy Connolly case, the judge explicitly expressed his support for the creed of DEI before sentencing her to 31 months in prison for an offensive and hastily deleted post on social media. “It is a strength of our society that it is both diverse and inclusive”, he said. It couldn’t be much clearer than that.

That lawfare has become a major weapon in the settling of political disputes should trouble us all. Judges are not accountable to the electorate, and so any suggestion that they are exercising power for their own political ends is bound to be interpreted as a threat to democracy. Inevitably, Jenrick’s criticism of activist judges, and his call for them to be removed, has led to some commentators assuming that he would prefer judges who simply acted according to the government’s bidding. That way lies tyranny.

October 11, 2025

Antifa declared a foreign terrorist organization

Filed under: Government, Media, Politics, USA — Tags: , , , , — Nicholas @ 03:00

On the social media site formerly known as Twitter, ESR claims a win from his earlier analysis posts on Antifa in the United States:

For those of you who have been tracking my intelligence analysis posts about Antifa, I now get to claim a correct prediction.

The President of the United States has declared Antifa a foreign terrorist organization.

Providing aid to an FTO is a crime (18 U.S.C. § 2339B). This declaration unlocks the legal tools required to go after Antifa’s funding network and allies, both foreign and domestic.

Those of you who are watching as USAID was unmasked as a left-wing slush fund won’t have any trouble understanding how the funding network functions. Allies of revolutionary Communism and nihilism at large charitable foundations direct money to smaller foundations which act as pass-throughs to others. After enough layers of this to maintain deniability (because the federal statute specifies “knowingly”), direct enablers of terrorism collect the money and use to fund things like a bullet ripping through Charlie Kirk’s neck.

There’s some rake-off along the way, of course. Can’t have all those elite failsons and faildaughters going without sinecures, after all. They have expensive habits to maintain.

Following the FTO declaration, the government can now gin up a case for seizing the assets of anybody in the funding chain, all the way back to the initial donors. The usual doctrine that “knowingly” extends to those who should have known, and who willfully failed to perform due diligence in order to avoid criminal exposure, applies here. Precedent for this was well established by organized-crime prosecutions 50 years ago; it’s why we have RICO laws.

It remains to be seen how much political will there is to actually bring down this hammer. In the maximal scenario,

(1) Trump issues a loud public warning to all charitable donors that they’d better cut ties to any organization that doesn’t provide them with full transparency about where the money is going.

(2) Left-wing dark money outfits like Arabella and the Tides Foundation get sent formal spoliation-of-evidence warnings, followed swiftly with audits by people with zero sense of humor.

I wish I were confident that all of this is going to happen. There’s going to be a lot of obstruction from Democrats and screaming by the media — the people who keep telling you that Antifa doesn’t exist because they want to keep their army of brownshirts intact. The administration could lose its nerve.

But at least it’s possible now. The political conditions for it are better than they have been in my entire lifetime.

Update: Fixed messed-up URL.

September 27, 2025

NATO – the alliance of paper tigers?

Filed under: Europe, Germany, Italy, Military, USA, Weapons — Tags: , , , , , , — Nicholas @ 05:00

In UnHerd, Edward Luttwak suggests that despite President Trump calling the Russians “paper tigers”, the non-US members of the NATO alliance could more appropriately be described that way:

It’s been an open secret for decades that Canada’s NATO contributions are more rhetoric than reality, but it’s true of many of the European NATO allies, too.

… simply raising defence spending will not turn Europe’s states into genuinely effective military powers. For one thing, the GDP criterion is much too vague to mean much. Finland, for instance, spends only 2.4% of its GDP on defence and yet can mobilise some 250,000 determined soldiers. Other Nato members, which spend much more than the Finns, obtain far less for their money.

Moreover, focusing on GDP instead of force requirements — so many battalions, artillery regiments, fighter squadrons — is nothing but an invitation to cheat, an opportunity lustily taken up across the continent. The latest Spanish submarine, for instance, is not imported for €1 billion or so from Thyssen-Krupp, which supplies navies around the world with competent, well-proven submarines. Instead, it was proudly designed and built at the Navantia state-owned Spanish shipyard: for €3.8 billion, roughly the cost of a much bigger French nuclear-powered submarine. As a feeble justification for that absurdly high cost, Spain’s defence minister cited a supposedly advanced air-recirculation system — so greatly advanced, in fact, that it is not actually ready, and will not be installed even in the submarine’s next iteration.

Soon, though, Italy will outdo Spain’s platinum submarine: by including a new bridge to Sicily, set to cost some €13.5 billion, into its 2% of GDP Nato spending quota. The government’s excuse is that some 3,000 Italian troops may need to cross the Strait of Messina were the Italian army ever to be fully mobilised. But it would be much cheaper to fly them individually, each trooper in his own luxurious private jet. Even without the bridge, meanwhile, Italy’s cheating on the 2% target is bad enough. Most notably, much of the Italian Navy’s spending goes towards warships made by Italy’s state-owned Fincantieri shipyard. But there is not enough money for the fuel and maintenance expenses to operate more than half of them, meaning another industrial subsidy is camouflaged as defence spending. All the while, Italy refuses to increase its defence budget beyond the very modest target of 2% — which it has yet to meet.

As for Germany, three and half years since the start of the Ukraine war, with ever more ambitious rearmament plans loudly promised, the total number of personnel in uniform has actually slightly decreased. And, aside from beginning a multi-billion euro purchase on an Israeli missile-defence system, nothing much has happened. Despite its high demand in Ukraine, even the battle tank, that German specialty, is being produced in very, very small numbers: so low that the annual output could be lost in a morning of combat. In May 2023, indeed, a meagre 18 Leopard tanks were ordered to replace older models lost in Ukraine. The expected delivery date? Between 2025 and 2026! Then, in July, Germany purchased a further 105 advanced Leopard 2A8s. That is the number needed to equip a single brigade, the German force stationed in Lithuania — and they are expected to arrive in 2030!

The sad truth, then, is that Germany has yet to start working in earnest to correct the extreme neglect inflicted on its armed forces during the long Merkel premiership, when she kept saying that “even if we had the money we would not know how to spend it”. All the while, German helicopters lacked rotors and tanks lacked engines. The exceedingly slow recovery of the German army is especially frustrating because Nato is not actually short of air or naval forces. What it lacks are ground forces, soldiers more simply, or rather soldiers actually willing to fight. Having added Estonia, Latvia and Lithuania to the alliance, tiny countries with outsized defence needs, the alliance faces a severe troop deficit across the entire Baltic sector. The troops so far sent by Nato allies, such as visiting Alpini battalions from Italy, cannot improve the maths.

Update, 30 September: Welcome, Instapundit readers! Please do have a look around at some of my other posts you may find of interest. I send out a daily summary of posts here through my Substackhttps://substack.com/@nicholasrusson that you can subscribe to if you’d like to be informed of new posts in the future.

Canada’s supply management cartels benefit “an affluent few, burdening the poorest, and creating needless friction with allies and trading partners”

In Reason, J.D. Tuccille explains to an American audience why Donald Trump has been playing hardball with Canada on trade issues:

President Donald Trump justifies his enthusiasm for prohibitively high tariffs by insisting the U.S. is being “ripped off” by other countries. It’s a strange argument, since people only trade with one another if they see benefit in the deal. But the president is right to complain that other governments impose trade barriers of their own that are often every bit as burdensome as the high taxes Americans pay on imports. If foreign officials honestly wish to restore something like free trade, they should emphasize dropping their own barriers in return for lower U.S. levies. Case in point: Canada, which sends three-quarters of its exports across its southern border but imposes damaging restrictions on imports.

In a February proclamation of trade war on the world, Trump announced, “the United States will no longer tolerate being ripped off” and complained that “our trading partners keep their markets closed to U.S. exports”. The first part of that claim is silly. But the second part has a kernel of truth.

A glimpse at that truth came in June when Trump angrily posted that Canada “has just announced that they are putting a Digital Services Tax on our American Technology Companies” and, as a result, “we are hereby terminating ALL discussions on Trade with Canada”.

The threat had the desired impact. Canada rescinded the tax immediately before it was supposed to take effect. While nominally targeted at all large tech companies, in practice that meant American companies and everybody knew it, since U.S. firms dominate the industry.

But that was only the tip of the iceberg when it comes to Canada’s trade barriers. Also in June, international trade attorney Lawrence Herman, a senior fellow at Canada’s C.D. Howe Institute, bemoaned proposed legislation in the Canadian parliament that he characterized as “yet another regrettable effort to enshrine Canada’s Soviet-style supply management system in the statute books.”

He added, “the bill would prohibit any increase in imports of supply-managed goods – dairy products, eggs and poultry – under current or future trade agreements”.

The legislation about which Herman complained has since become law.

[…]

More skeptically, Fraser Institute senior fellow Fred McMahon notes, “supply management is uniquely Canadian. No other country has such a system. And for good reason. It’s odious policy, favouring an affluent few, burdening the poorest, and creating needless friction with allies and trading partners.”

McMahon elaborates that the supply management process is controlled by agricultural management boards which “employ a variety of tools, including quotas and tariffs, and a large bureaucracy to block international and interprovincial trade and deprive Canadians of choice in dairy, eggs and poultry”.

But as we’ve seen so many times over the years, it disproportionally benefits Quebec, and the Liberals desperately need those Quebec votes to stay in power, so the government would rather destroy the national economy rather than give up on our Stalinist supply management cartels.

Dislike of Trump prompts the CBC to spread faulty medical advice

Filed under: Cancon, Health, Media, Politics, USA — Tags: , , , , — Nicholas @ 03:00

It’s a long-running joke that US progressives — and the legacy media, BIRM — are programmed to respond to anything Donald Trump says by doing the exact opposite of what he says:

The CBC apparently felt the need to do the meme:

It was not controversial for news outlets like CBC to report in 2016, and later 2021, on new medical research raising concerns about the impact of Tylenol use on pregnancy and fetal development. But in 2025, those studies (among others) have become the basis for a new cautionary approach by the U.S. government that critics and media are trying to debunk.

On Monday, the U.S. Department of Health and Human Services announced that, as part of a bigger strategy in quelling autism, it would be issuing a “physician notice and begin the process to initiate a safety label change for acetaminophen”.

President Donald Trump relayed this to the press, stating the medication “can be associated with a very increased risk of autism”.

“So taking Tylenol is not good, all right? I’ll say it; it’s not good. For this reason, they are strongly recommending that women limit Tylenol use during pregnancy unless medically necessary. That’s, for instance, in cases of extremely high fever that you feel you can’t tough it out.”

[…]

The statement was reported in the mainstream news — including CBC, which found Canadian doctors who seemed to support the cautionary approach. The impression from these experts was that this wasn’t cause for panic and that more evidence was needed, but it was an occasion for discussion. The advice back then? Take the smallest amount for the shortest period of time, and don’t use it as a first resort to managing pain, which is consistent with the U.S. guidance.

Indeed, no major figure in this story is advocating for total avoidance because unmitigated pain and fever are bad for pregnancy, and in small amounts, Tylenol seems to be fine. That said, the manufacturer doesn’t recommend it for pregnant women (which they can’t really do without extensive testing, even if doctors generally consider it safe for mothers in minimized amounts when medically indicated).

More recently, a review of other studies by a team including Harvard University’s public health dean found similar “evidence of an association” between the drug and neurodevelopmental conditions. The dean released a statement saying that the “association is strongest when acetaminophen is taken for four weeks or longer”. That should be uncontroversial, because nobody is supposed to take Tylenol for that long, pregnant or not.

But perhaps, as the Babylon Bee suggests, it’s all Trumpian 4D Chess:

September 19, 2025

What’s the next thing to be devoured on Trump’s menu? Ah, Antifa it is …

Filed under: Government, Media, Politics, USA — Tags: , , , , , , — Nicholas @ 05:00

Again leaning heavily on the social media site formerly known as Twitter, ESR has several posts on Donald Trump’s announcement that Antifa is in his crosshairs:

Next comes the part where every NGO/nonprofit implicated in funding a major terrorist organization gets a proctological exam by people with no sense of humor at all.

As I have emphasized several times in the last week: the long game in taking down a terrorist network is to smash its funding chain.

ESR’s analysis begins thusly:

Antifa has just been declared a “major terrorist organization”. Putting on my intelligence-analyst hat again, I’m going to examine its strategic options in the new political and legal conditions following the assassination of Charlie Kirk.

I’m going to start with a briefing on what Antifa is and what it does.

A reminder: Antifa is not a unitary conspiracy. It’s a cluster of horizontally-networked cells, some visible aboveground, some semi-covert, possibly some that are fully underground. By design it doesn’t have a central command.

So we’re really asking what range of behaviors Antifa cells normally choose, or can choose.

Before we can explore that we have to identify what Antifa is for and how it fits into the political ecology of the U.S.

None of what I’m about to tell you is speculation. It can be verified by reading Antifa’s propaganda and watching its behavior.

Antifa is an organization of Communists and Left-Anarchists; thus the red and black flags in the main Antifa logo. Its ultimate goal is a violent anti-capitalist revolution that will destroy American constitutional government. The Communists and Left Anarchists have agreed to argue about the shape of what comes afterwards after the revolution.

In practice, Antifa acts as willing street muscle for a range of associated Communist and Socialist organizations, most notably the DSA (Democratic Socialists of America), CPUSA (Communist Party of the USA), the SWP (Socialist Workers Party), and various SWP splinter groups.

Antifa also takes strategic direction from the left wing of the Democratic Party. My readers can make their own judgments about whether there is anything remaining in the Democratic Party other than a left wing; the answer to that question is not relevant to the rest of this analysis.

An important point is that the links between the Democratic party and Antifa are personal and deniable. They probably do not run through the Democratic National Committee. A good place for counter-terror analysts to look (and I’m sure Palantir already has this mapped) would be the politicians known as “the Squad” and their close associates.

The strategic sub-goal that was being executed when Charlie Kirk was shot was the creation of a climate of fear that would inhibit public speech by conservatives. This is an explicit goal of Antifa direct action.

Antifa’s funding is deliberately obscure. Before USAID was dismantled, a significant percentage of it was probably coming from the American taxpayer through several layers of shadowy NGOs.

It is very likely that one way or another most of its money comes from low-profile liberal dark money groups such as Arabella, the Tides Foundation, and the Open Societies Foundations.

The effectiveness of Antifa as a political actor has always depended on its ability to act as a terror instrument for left-wing American politicians while maintaining deniability that the politicians’ rhetorical hate-targeting of opponents ever cashes out as violent action.

The first major constraint on Antifa’s future behavior is that this deniability is going to be much more difficult to maintain from now on. Because while the deliberate diffusion of its structure makes legal proof that something called “Antifa” shot Charlie Kirk difficult, it also made Antifa affiliation of any left-wing assassin impossible to effectively deny.

In my next post, I will examine the consequences of this shift.

Continuing the discussion:

Mafia families don’t have membership cards.

Why am I bringing this up now? Because one attempt to head off the hammer coming down on Antifa that we’re hearing from its aboveground allies is that Antifa doesn’t exist.

It’s just an idea. There’s no central command. No common funding. No membership cards. No way to tell who’s a member and who isn’t.

The reductio ad absurdum of this bullshit is to point out that, following the argument, the Mafia cannot possibly exist. Which would be interesting news to all the people it murdered.

Historical note: there was a period when the Mafia was structurally different from Antifa in that it had a Boss of All Bosses, but the position was abolished by assassination in 1931.

In reality, when you’re dealing with a criminal or terrorist conspiracy that doesn’t have membership cards, you identify members of it the same way that other members do: by their willingness to cooperate with each other on shared projects.

And sometimes, by their participation in shared bonding rituals like a Cosa Nostra initiation ceremony or a “bash the fash” demonstration.

None of this is difficult, and it’s exactly the kind of situation that the RICO (Racketeering and Corrupt Influence) laws were written to address.

From Trump’s public statements, I’m guessing that they’re going to go right past RICO to a Foreign Terrorist Organization designation.

This won’t be difficult either. If you have any doubt that at least some Antifa chapters are funded by Chinese Communist money, you really need to get out more.

The announcement clearly didn’t come out of the blue:

Still wearing my intel-analyst hat, and have realized something.

Trump’s announcement that Antifa is being designated a “major terrorist organization” doesn’t make any sense unless law enforcement is already holding evidence that the assassination of Charlie Kirk was an Antifa op.

Otherwise, the risk of political blowback from that announcement would be way too high. Trump can be erratic, but he’s cunning about stuff like this and obviously has a shrewd sense of what he can get away with.

So, yep. The most likely scenario was the correct one. The hoofbeats really were horses, not zebras. Everybody still in denial about this is destined for more pain.

And back to the analysis:

“antifa 8973ag” by cantfightthetendies is licensed under CC BY 2.0

Continuing my analysis of Antifa’s strategic options following the Charlie Kirk assassination. These have changed yet again — narrowed considerably — following President Trump’s declaration yesterday.

The Federal Government has legal instruments that it can employ. The RICO (Racketeering and Corrupt Influence) laws were specifically designed to attack a different headless network of horizontally connected nodes — organized crime. The fact that Antifa doesn’t have membership cards or a unitary command structure isn’t even going to slow the Feds down.

I think that it’s likely the Feds will designate Antifa a foreign terrorist organization, zeroing in on Chinese Communist funding of some Antifa chapters. This will allow the direct use of the CIA, which is normally heavily restricted from operations on American soil.

Nothing Antifa itself can do as an organization will be able to prevent or deflect a massive multi-agency investigation. It is very likely that Palantir already has their core membership identified and their communications channels mapped. Fusion centers will be capturing an unknown but probably large percentage of Antifa message traffic.

(They’ll be helped by the fact that Antifa’s communications security is terrible — it uses Discord for most comms, which is strictly amateur-hour. To be fair, the inner membership is likely to be savvy enough to be using Signal.)

Antifa’s only hope is pressure by its aboveground allies in politics and media. The cells with intelligent leaders will understand that they must cease all direct actions in order to avoid putting those allies in any position of appearing to support assassinations.

Unfortunately for Antifa, in order for hunkering down to work, every single cell has to have leadership that is both strategically patient and capable of restraining its more mentally unstable footsoldiers.

A related problem is that subversive and terrorist organizations that don’t act tend to develop morale problems. A certain minimum level of satisfying violence is required to keep their troops engaged.

Antifa probably has a worse issue here than the average terrorist organization because they recruit so heavily from sexual deviants and borderline mental cases who are likely to have other MBD-related issues including impulsivity and high time preference.

Over time, external pressure for Antifa to look easy for its aboveground allies to defend will remain steady or increase. This is especially so if the Democratic Party line remains Joe Biden’s “Antifa is just an idea”.

At the same time, internal pressure for direct action will increase. Antifa’s survival may depend on how long it is able to manage that pressure.

Antifa needs the investigation to be stalled out and paralyzed by Democratic lawfare before its stupidest cells do something too public and violent for its allied mainstream media to willfully ignore or suppress.

Longer-term, if Antifa survives, it faces a different problem. It dreams of revolution, but is only capable of operating on the sufferance of a general public that largely dismisses it as a LARP for nose-ringed freakazoids. Having committed a gaudy murder of an Everyman figure, it is not likely to get that sufferance back.

September 17, 2025

“It would be a grave error to scrap NORAD”

Filed under: Cancon, Media, Military, Politics, USA — Tags: , , , , , , — Nicholas @ 03:00

J.L. Granatstein makes the case that abandoning NORAD in a fit of pique over the antics of the Bad Orange Man would be worse for Canadian national defence interests and might not even be noticed in Washington DC:

There are beginning murmurings that Canada should get out of the North American Aerospace Defence agreement (NORAD). Given the Trump administration’s hostile tone — its 51st state suggestions, its tariffs, and its growing concerns with Arctic defence — the United States has become a difficult partner and a threat to Canadian sovereignty. But would this be a sensible decision for Ottawa to make?

Not at all. In the first place, NORAD is a joint alliance to defend North America against Russian, Chinese, or other potential attackers. Canada provides aircraft, radars, personnel, and expertise to this role that serves our national interests. It would be a grave error to scrap NORAD and to take on the role of defending our part of North America on our own. It would also be hugely expensive.

The problem, however, is that the Trump administration is right: Canada is, in fact, not doing enough today to defend our portion of North America and protect our sovereignty in the region.

The Royal Canadian Air Force has 1980s vintage CF-18s flying patrols and occasional larger surveillance aircraft monitoring traffic in Arctic waters; there are snowmobile and ATV patrols of Canadian Rangers armed with rifles; and a few army exercises in the north each year. The Royal Canadian Navy has a half dozen new Arctic Offshore Patrol Vessels that have limited utility in Arctic waters and are very lightly armed, and the Canadian Coast Guard (CCG) has only one 66-year-old icebreaker capable of clearing thick ice. The CCG is now under the authority of the Department of National Defence, but its members, unlike those in the Canadian Armed Forces, are unionized, and its vessels are unarmed. This could be a problem in a conflict.

Yes, Ottawa has promised to do more. The Trudeau government agreed to the $38.6 billion NORAD Modernization Plan, which includes the new Northern Approaches Surveillance System featuring the Arctic Over-the-Horizon Radar and a Polar Over-the-Horizon Radar, enhancing early warning and threat tracking from the North for air and maritime threats. These systems will not be fully operational until the 2040s.

There’s more, but it’s behind the paywall.

September 7, 2025

Long before the “Bad Orange Man”, there was “T.R.”

In the Coolidge Review, Amity Shlaes points out some strong similarities between Donald Trump’s career and that of the Bull Moose himself, Theodore Roosevelt:

Though a century apart—TR served from 1901 to 1909 — these two chief executives have favored the same modus operandi: using unpredictability to amass power. And the record of Theodore Rex, as Edmund Morris titled his TR biography, bodes ill for both the economy and the Republican Party.

The Trump-TR Parallels

But to the similarities. They start, for both men, pre–White House. As Trump did, TR staged his pre-presidential efforts as much with an eye to public recognition as to sustained reform or strengthening institutions.

Whenever TR stumbled, he pivoted to a new venture and publicized it like mad, though the medium in those days was the printed word, not season after season on The Apprentice. Before the cognoscenti had even absorbed the meaning of the young Roosevelt’s humiliating fourth-place score in a key 1886 New York City mayoral contest, for example, TR was off to the Badlands, memorializing his ranching experiences in dispatches and books such as Ranch Life and the Hunting Trail.

As Trump does, TR routinely alienated GOP grandees, circumventing them to get ahead. As Trump has, TR skillfully cultivated the media — so skillfully that members of Congress were left trying catch up with whatever shifts in public opinion resulted from the politician’s press alliances. TR’s Rupert Murdoch was the widely syndicated William Allen White of Kansas’s influential Emporia Gazette. TR’s equivalent of Fox News was the New York Journal, whose owner, William Randolph Hearst, drummed a steady beat of support when Roosevelt called for war against Spain.

Today, Murdoch must be scratching his head over what his showcasing Trump has wrought, especially now that Trump decided to sue both Murdoch and his Wall Street Journal. White, too, found that he had second thoughts about his decision to back TR: “Roosevelt bit me and I went mad,” White reportedly told a colleague.

[…]

BULLY

The occupant of what he labeled the Bully Pulpit — “bully” as in “excellent” — proved a literal bully as well.

As president, TR perpetually unnerved fellow Republicans, pivoting back to domestic politics. As Trump has, TR cast his campaigns in moral terms rather than economic ones. Where Trump launched his tariff war, TR made war against trusts, large combinations of companies. Relying more on whim than statute, Roosevelt segregated trusts into “good trusts” and “bad trusts”.

TR targeted an invincible-looking industry that, in those days, mattered as much as the interstate highways, or the internet, do today: railroads. James Hill’s Great Northern Railway took over a struggling competitor, Northern Pacific. Roosevelt asked Hanna what he made of the combined entity, Great Northern Securities. Hanna replied that it was “the very best thing possible for the future of the whole Northwest territory”. Roosevelt nonetheless sicced the Justice Department on the Great Northern.

J. Pierpont Morgan, a participant in the beleaguered deal, called on the president to inquire, as desperate steel importers these days do from time to time, whether their attorneys might work out the matter behind the scenes.

No.

Next, the disconcerted Morgan asked whether other investments of the House of Morgan might be assailed. Roosevelt’s reply captures the chill of arbitrary leadership. The administration would not go after the other Morgan companies, he said — unless “they have done something we regard as wrong”.

As Edmund Morris reports in Theodore Rex, to observers such as French ambassador Jules Jusserand, Roosevelt seemed “more powerful than a king”. That power suited many voters fine, which is why Roosevelt won so headily when he ran for office on his own in 1904.

Of course TR, like Trump, occasionally supported laws that aligned with his impulses. One example is the Elkins Act of 1903, which made it illegal for railroads to charge different freight rates for different customers. This shallow effort to achieve market “fairness” deprived the railroads of a standard business tool: the ability to provides discounts to those who buy the product in larger quantities. Shares in railroads promptly dropped more than 20 percent, a shift that undermined TR’s premise of railroad invincibility.

August 23, 2025

“Trump … sees transshipment and nearshoring as sneaky workarounds”

Filed under: China, Economics, Government, Politics, USA — Tags: , , , — Nicholas @ 05:00

At the Foundation for Economic Education, Jake Scott explains Donald Trump’s latest anti-trade moves:

President Donald Trump’s executive order of July 31st, effective August 7th, has upended global trade dynamics in a single stroke. Slapping a 40% tariff on all “transshipped goods” — products rerouted through third countries to dodge US duties — this is merely the natural development of his evolving protectionist agenda.

Just a week after the order, the move is a clear shot at China’s sprawling manufacturing empire, which has long exploited methods like transshipment and “nearshoring” to skirt American tariffs in general, and Trump’s tariff policies in particular.

While applied globally, China stands to take the biggest hit (and likely already is), with its vast factory networks and knack for rerouting goods through Southeast Asia, Mexico, and beyond. This isn’t just a tariff hike; it’s a calculated escalation in Trump’s ongoing crusade to reshape US trade policy and the global economy in the United States’ favor. But ripple effects that bruise consumers are already visible — and this move is likely to strain relationships with key allies as well.

The new tariffs build on Trump’s first-term strategy — so extensive that it now has a Wikipedia entry — when he wielded America’s economic heft like a sledgehammer to renegotiate or smash trade deals he deemed unfair. Back then, Chinese firms sidestepped US tariffs by setting up shop in countries like Vietnam and Mexico, funneling goods through these hubs to mask their origins.

This nearshoring strategy buoyed many economies that had pre-existing arrangements with the United States or were treated more favorably than China, such as Canada and Latin American nations. It is also seen as a natural part of globalization: shipping parts from where they are constructed (like China), assembling them in developing nations (like Mexico), and then exporting to high-value markets (like the United States). Nearshoring has a long history, but the fragility of extended global supply chains was exposed in the Covid pandemic; since then, manufacturers have sought to mitigate their damage.

The US trade deficit with China (roughly $295 billion) has long been a sore point for Trump, who sees transshipment and nearshoring as sneaky workarounds. The 40% duty on these goods, layered atop existing tariffs, aims to plug this loophole. As Stephen Olson, a former US trade negotiator, noted in the New York Times, China will likely view this as a direct attempt to “box them in”, potentially souring already tense talks.

August 8, 2025

China’s short- to medium-term reaction to Trump’s tariffs

Filed under: China, Economics, Government, USA — Tags: , , — Nicholas @ 03:00

In Reason, Liz Wolfe outlines some of the reasons China has not been suffering under the tariffs President Trump has levied on them over the last few months (unlike, say, Canada):

President Donald Trump and PRC President Xi Jinping at the G20 Japan Summit in Osaka, 29 June, 2019.
Cropped from an official White House photo by Shealah Craighead via Wikimedia Commons.

Total Chinese exports surged in July … but not to us. Compared to July 2024, Chinese exports were up 7.2 percent last month. “Its exports to Southeast Asia and Africa, key regions for reshipment to the United States, rose more than twice as fast as its overall exports”, per The New York Times‘ reading of the data. “China’s exports to the European Union, its main alternative to the American market, were also up very strongly.”

Specifically, “data released Thursday by the customs authorities showed the pickup was driven by strong growth in shipments to the European Union, Southeast Asia, Australia, Hong Kong and other markets, which more than made up for the fourth month of double-digit declines in US purchases”, reports Bloomberg.

Predictably, even the threat of tariffs has been enough to dampen trade. Remember, Washington and Beijing are still operating under a 90-day truce — set to expire on August 12, though it could be extended if a new agreement is reached — that holds off the imposition of higher tariff levels, namely, the tit-for-tat tariff increases that both countries had threatened. The truce also staves off export controls on certain critical rare-earth minerals and items that fall into the technology category. But still, current tariff levels mean a baseline 30 percent tariff on Chinese imports, which has been enough to depress trade.

For those in the Trump administration who are worried about trade deficits in particular, I suppose the good news is that we’ve made progress there: “For the last several decades, China has been selling as much as $4 worth of goods to the United States for each $1 of American goods that it buys”, reports The New York Times. Following China’s admission into the World Trade Organization, the trade deficit rose. Now, “tariffs have begun to reduce the imbalance. The United States announced on Tuesday that its overall trade deficit had narrowed in June to $60.2 billion, the smallest in nearly two years.”

It’s not clear why Trump administration officials, and the president himself, are so worried about trade deficits as something to eliminate for their own sake. We are dependent on Chinese goods to a rather substantial degree, which would pose a problem in the event of war with China (which is why the previous administration focused on improving our semiconductor manufacturing capabilities back in 2022). But you can just as easily make the case that it’s the vast volume of trade between the two countries — the deeply intertwined economies so reliant on each other (despite China’s claims of autarky and, more amusingly, communism) — that are incentivizing continued decent relations.

A few factors are at play that might help to explain why you likely haven’t felt a drastic increase in prices just yet. First, since there’s been a long lead-up to this trade war, many larger importers have stockpiled product over the last few months, so shortages haven’t been felt yet — they’ve just been selling off product they’ve been storing. Second, China has already managed to divert some stages of manufacturing to other countries—namely Vietnam — and some larger companies already have factories up and running in other Southeast Asian countries to avoid the “made in China” or “shipped from China” labeling. Expect more transshipping and manufacturing-locale creativity as a means of throwing customs officials off the scent.

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