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Why the Trump campaign is spending heavily on ads on trans issues

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FEW THINGS get Donald Trump more excited than talking about transgender issues. As he delivers his closing argument to America, barely a speech or ad goes by without a mention of “illegal aliens” getting “taxpayer-funded surgery” or biological males competing in women’s sports. Most of it is inflammatory and hateful. Some of it is clearly untrue, such as his claims that children are returning from school with sex changes, or his running-mate, J.D. Vance, suggesting this week that teens are “becoming trans” to get into Ivy League colleges. But some of it is not.

When asked recently how he would address the sports situation, Mr Trump said this was “such an easy question”: he would simply ban it. That brought loud cheers from the all-female Fox audience. It is a message Republicans are emphasising up and down the ballot. Recent polling by YouGov shows that Trump supporters have higher awareness of the former president’s policy on women’s sports than of his policy on abortion. In his final days of campaigning, Mr Trump is spending more on ads that attack Kamala Harris’s support for transgender rights than on any other subject, according to Politico.

Chart: The Economist

It is easy to see why. Most Americans favour basic protections for transgender people—against hate speech, for example, or discrimination at work—and believe transgender people should be treated with respect (see chart). Yet most agree with Mr Trump that some policies and practices, however rare, have gone too far. Only 19% of Americans, including 33% of Democrats, support the idea of trans athletes playing on the sports team that matches their gender identity rather than their biological sex, according to YouGov. Indeed 25 states now require transgender students to participate in sports based on their natal sex, for reasons of both safety and fairness. Only 30% of Americans believe prisons should be required to house transgender inmates according to their gender identity. And just 19% believe transgender youths should have access to puberty-blocking medication (27% are unsure and 54% are opposed).

All of these policies are associated with Democrats, either because they supported them in the past or because they have failed to acknowledge some of the practical tensions that come with slogans like “transwomen are women”. During her presidential campaign, Ms Harris’s strategy has been to avoid the T-word at all costs, pivoting instead to the safer ground of same-sex marriage or women’s reproductive rights. Whereas the Republican Party’s convention was full of (inflammatory) references to threats posed by trans people, including some remarks by Mr Trump’s two eldest sons, only two speakers at the Democratic convention mentioned trans people, neither of them in a primetime slot.

Ms Harris’s silence has left space for Mr Trump to fill with footage of her previous commitments (eg, to trans prisoners being able to get gender-affirming treatments) and with claims that, as a popular Republican ad concludes, “Crazy liberal Kamala is for they/them. President Trump is for you.” It seems to be resonating. According to new polling by The Economist/YouGov, despite her vow of silence, some 36% of Americans think Ms Harris talks about trans issues too much, compared with 23% who say the same about Mr Trump.

But will it matter?

Republicans hope that outrage over what Mr Trump calls “trans insanity” will be their version of what abortion has done for Democrats, but there is a crucial difference. Whereas many Americans say abortion is a leading reason to vote, few say the same about trans issues. Polling shows that social issues in general feature low on Trump voters’ priority list, and within social issues transgender health care (albeit an imperfect proxy) sits at the very bottom. Mr Trump’s lines clearly play well with his base, and are a sure-fire way of getting a rally audience to its feet, but there is little evidence that this specific issue will recruit many new voters (though Republican strategists claim it can help swing undecided voters, who could prove crucial).

Only Ms Harris knows whether her recent silence is just a ruse until she is elected or whether she has genuinely moderated her stance. If elected, one opportunity to show herself as more in touch with the electorate will come when her administration deals with the most controversial part of Title IX anti-discrimination protections that the Biden administration kicked down the road: how to deal with women’s sports. By then she might be ready to agree with her opponent on one matter: it is an easy question.

Economics

Will Elon Musk’s cash splash pay off in Wisconsin?

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TO GET A sense of what the Republican Party thinks of the electoral value of Elon Musk, listen to what Brad Schimel, a conservative candidate for the Supreme Court of Wisconsin, has to say about the billionaire. At an event on March 29th at an airsoft range (a more serious version of paintball) just outside Kenosha, five speakers, including Mr Schimel, spoke for over an hour about the importance of the election to the Republican cause. Mr Musk’s political action committees (PACs) have poured over $20m into the race, far more than any other donor’s. But over the course of the event, his name came up precisely zero times.

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Economics

German inflation, March 2025

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Customers shop for fresh fruits and vegetables in a supermarket in Munich, Germany, on March 8, 2025.

Michael Nguyen | Nurphoto | Getty Images

German inflation came in at a lower-than-expected 2.3% in March, preliminary data from the country’s statistics office Destatis showed Monday.

It compares to February’s 2.6% print, which was revised lower from a preliminary reading, and a poll of Reuters economists who had been expecting inflation to come in at 2.4% The print is harmonized across the euro area for comparability. 

On a monthly basis, harmonized inflation rose 0.4%. Core inflation, which excludes food and energy costs, came in at 2.5%, below February’s 2.7% reading.

Meanwhile services inflation, which had long been sticky, also eased to 3.4% in March, from 3.8% in the previous month.

The data comes at a critical time for the German economy as U.S. President Donald Trump’s tariffs loom and fiscal and economic policy shifts at home could be imminent.

Trade is a key pillar for the German economy, making it more vulnerable to the uncertainty and quickly changing developments currently dominating global trade policy. A slew of levies from the U.S. are set to come into force this week, including 25% tariffs on imported cars — a sector that is key to Germany’s economy. The country’s political leaders and car industry heavyweights have slammed Trump’s plans.

Meanwhile Germany’s political parties are working to establish a new coalition government following the results of the February 2025 federal election. Negotiations are underway between the Christian Democratic Union, alongside its sister party the Christian Social Union, and the Social Democratic Union.

While various points of contention appear to remain between the parties, their talks have already yielded some results. Earlier this month, Germany’s lawmakers voted in favor of a major fiscal package, which included amendments to long-standing debt rules to allow for higher defense spending and a 500-billion-euro ($541 billion) infrastructure fund.

This is a breaking news story, please check back for updates.

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Economics

First-quarter GDP growth will be just 0.3% as tariffs stoke stagflation conditions, says CNBC survey

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U.S. President Donald Trump speaks to members of the media aboard Air Force One before landing in West Palm Beach, Florida, U.S., March 28, 2025. 

Kevin Lamarque | Reuters

Policy uncertainty and new sweeping tariffs from the Trump administration are combining to create a stagflationary outlook for the U.S. economy in the latest CNBC Rapid Update.

The Rapid Update, averaging forecasts from 14 economists for GDP and inflation, sees first quarter growth registering an anemic 0.3% compared with the 2.3% reported in the fourth quarter of 2024. It would be the weakest growth since 2022 as the economy emerged from the pandemic.

Core PCE inflation, meanwhile, the Fed’s preferred inflation indicator, will remain stuck at around 2.9% for most of the year before resuming its decline in the fourth quarter.

Behind the dour GDP forecasts is new evidence that the decline in consumer and business sentiment is showing up in real economic activity. The Commerce Department on Friday reported that real, or inflation-adjusted consumer spending in February rose just 0.1%, after a decline of -0.6% in January. Action Economics dropped its outlook for spending growth to just 0.2% in this quarter from 4% in the fourth quarter.

“Signs of slowing in hard activity data are becoming more convincing, following an earlier worsening in sentiment,” wrote Barclays over the weekend.

Another factor: a surge of imports (which subtract from GDP) that appear to have poured into the U.S. ahead of tariffs.

The good news is the import effect should abate and only two of the 12 economists surveyed see negative growth in Q1. None forecast consecutive quarters of economic contraction. Oxford Economics, which has the lowest Q1 estimate at -1.6%, expects a continued drag from imports but sees second quarter GDP rebounding to 1.9%, because those imports will eventually end up boosting growth when they are counted in inventory or sales measures.

Recession risks rising

On average, most economists forecast a gradual rebound, with second quarter GDP averaging 1.4%, third quarter at 1.6% and the final quarter of the year rising to 2%.

The danger is an economy with anemic growth of just 0.3% could easily slip into negative territory. And, with new tariffs set to come this week, not everyone is so sure about a rebound.

“While our baseline doesn’t show a decline in real GDP, given the mounting global trade war and DOGE cuts to jobs and funding, there is a good chance GDP will decline in the first and even the second quarters of this year,” said Mark Zandi of Moody’s Analytics. “And a recession will be likely if the president doesn’t begin backtracking on the tariffs by the third quarter.”

Moody’s looks for anemic Q1 growth of just 0.4% that rebounds to 1.6% by year end, which is still modestly below trend.

Stubborn inflation will complicate the Fed’s ability to respond to flagging growth. Core PCE is expected at 2.8% this quarter, rising to 3% next quarter and staying roughly at that level until in drops to 2.6% a year from now.

While the market looks to be banking on rate cuts, the Fed could find them difficult to justify until inflation begins falling more convincingly at the end of the year.

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