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It is a Washington truism that little gets done in Congress during an election year. This means that pandering politicians, and particularly the president, need to get creative. Consider two recent moves by President Joe Biden to shore up support among blocs traditionally supportive of the Democratic Party.
On April 17th Mr Biden called for a 25% tariff on certain Chinese steel and aluminium products; in some cases that amounts to more than tripling existing import taxes. This is in addition to tariffs put in place by Donald Trump on some products. Mr Biden also told a steelworkers’ union that his administration will investigate Chinese shipbuilding subsidies and work with Mexico to block Chinese tariff evasion.
The day before the tariff announcement, the Department of Education proposed a regulation that would forgive unpaid interest for Americans who owe more on their student loans than they originally borrowed. Around 25m voters could benefit. The plan would also help more than 2m borrowers who have held loans for at least 20 years and an additional 2m who qualified for existing assistance programmes but didn’t sign up. Those who attended “low-financial-value programmes or institutions” could get relief as well.
The rule faces a month-long public-comment period, then a review. The administration hopes to implement the new proposal by the autumn. All this follows an announcement on April 12th of another student-loan cancellation for 277,000 borrowers that adds up to $7.4bn. The Education Department is working on yet another proposal to help those “experiencing hardship” repaying their loans.
These moves are the latest in a long White House campaign to relieve hundreds of billions of dollars in student debt. The White House estimates that it already has approved $153bn (or 0.6% of GDP) for more than 4m borrowers. The Committee for a Responsible Federal Budget (CRFB) believes the new policies cost $147bn. The hardship cancellation could range between $100bn and $600bn, depending how stringent the final proposal is.
This is probably good politics for Mr Biden, as the Democratic Party continues to consolidate support among college-educated voters and worries about losing rank-and-file union members seduced by Mr Trump’s overtures towards them. As policies, they are retrograde bungs to favoured groups at the expense of other Americans.
The steel and aluminium tariffs are inflationary, which makes them worse for low-income Americans. As for student-loan forgiveness, helping borrowers at high default risk could be progressive. But many borrowers in relatively good financial health carry debt because they choose to cover only their minimum monthly payments. Some voters might wonder whether law-school graduates really need more federal help than plumbers.
Congress has given the presidency broad but not unlimited authority to enact tariffs; Mr Biden’s student-loan actions are more dubious. The Supreme Court struck down a previous proposal, which relied on an overly expansive reading of a law that allowed for debt forgiveness during national emergencies. “This one is a lot more targeted, but if you pick enough targets, you get to a similar place,” Marc Goldwein of the CRFB says of the new proposal.
Both parties see value in having a debate about the cost, legality and fairness of Mr Biden’s student-loan efforts. While that goes on, the country is avoiding a more serious conversation about what has made college so expensive in the past few decades. And Mr Biden’s tariff play is only the latest sign that embracing protectionism is now a bipartisan habit. ■
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A tugboat pushes a barge near the U.S. Steel Corp. Clairton Coke Works facility in Clairton, Pennsylvania, on Sept. 9, 2024.
Justin Merriman | Bloomberg | Getty Images
President Donald Trump said Friday that U.S. Steel and Nippon Steel will form a “partnership,” after the Japanese steelmaker’s bid to acquire its U.S. rival had been blocked on national security grounds.
“This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add $14 Billion Dollars to the U.S. Economy,” Trump said in a post on his social media platform Truth Social.
U.S. Steel’s headquarters will remain in Pittsburgh and the bulk of the investment will take place over the next 14 months, the president said. U.S. Steel shares jumped more than 24%.
President Joe Biden blocked Nippon Steel from purchasing U.S. Steel for $14.9 billion in January, citing national security concerns. Biden said at the time that the acquisition would create a risk to supply chains that are critical for the U.S.
Trump, however, ordered a new review of the proposed acquisition in April, directing the Committee on Foreign Investment in the United States to determine “whether further action in this matter may be appropriate.”
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The night the United States Institute of Peace (USIP) was taken over, March 17th, staffers from Elon Musk’s Department of Government Efficiency (DOGE) walked round its headquarters smoking cigars and drinking beers while they dismantled the signage and disabled the computer systems. The takeover of the USIP building in Washington, DC, earlier that afternoon was one of the more notable moments of President Donald Trump’s revolution in the capital, because the think-tank is not actually part of the executive branch. The Institute’s board and president, George Moose, a veteran diplomat, were summarily fired. He and other senior staff were ultimately forced out of the building at the behest of three different police agencies. Then a DOGE staffer handed over the keys to the building to the federal government.
AMERICA’S MEASLES outbreak is alarming for several reasons. What began as a handful of cases in Texas in January has now surpassed 800 across several states, with many more cases probably going unreported. It is the worst outbreak in 30 years and has already killed three people. Other smaller outbreaks bring the total number of cases recorded in 2025 so far to over 1,000. But above all, public-health experts worry that the situation now is a sign of worse to come. Falling vaccination rates and cuts to public-health services could make such outbreaks more frequent and impossible to curb, eventually making measles endemic in the country again.