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President Joe Bidens economic agenda is achieving one of his principal goals: channeling more private investment into small communities that have been losing ground for years.

Thats the conclusion of a new study released today, which found that economically strained counties are receiving an elevated share of the private investment in new manufacturing plants tied to three major bills that Biden passed early in his presidency. After decades of economic divergence, strategic sector investment patterns are including more places that have historically been left out of economic growth, concludes the new report from Brookings Metro and the Center for Energy and Environmental Policy Research at MIT.

The large manufacturing investments in economically stressed counties announced under Biden include steel plants in Mason County, West Virginia, and Mississippi County, Arkansas; an expansion of a semiconductor-manufacturing plant in Schuylkill County, Pennsylvania; a plant to process the lithium used in electric vehicle (EV) batteries in Chester County, South Carolina; an electric-vehicle manufacturing plant in Haywood County, Tennessee; and plants to manufacture batteries for EVs in Montgomery County, Tennessee; Vigo County, Indiana; and Fayette County, Ohio.

These are all some of the 1,071 countiesabout a third of the U.S. totalthat Brookings defines as economically distressed, based on high levels of unemployment and a relatively low median income. As of 2022, the report notes, these counties held 13 percent of the U.S. population but generated only 8 percent of the nations economic output.

Since 2021, though, these distressed counties have received about $82 billion in private-sector investment from the industries targeted by the three major economic-development bills Biden signed. Those included the bipartisan infrastructure law and bills promoting more domestic manufacturing of semiconductors and clean energy, such as electric vehicles and equipment to generate solar and wind power.

That $82 billion has been spread over 100 projects across 70 of the distressed counties, Brookings and MIT found. In all, since 2021 the distressed counties have received 16 percent of the total investments into the industrial sectors targeted by the Biden agenda. Thats double their share of national GDP. Its also double the share of all private-sector investment they received from 2010 to 2020. Funneling more investment and jobs to these economically lagging communities is really just at the core of what [Biden] is trying to accomplish, Lael Brainard, the director of Bidens National Economic Council, told me. The president talks a lot about communities that have been left behind, and now he is talking a lot about communities that are coming back.

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This surge of investment into smaller places is a huge change from previous patterns that have concentrated investment and employment in a handful of superstar metropolitan areas, Mark Muro, a senior fellow at Brookings Metro and one of the reports authors, told me.

As the rich places have been getting richer, the social-media/tech economy was something that was happening somewhere else for most people, Muro said. Clearly, this is a different-looking recovery that is occurring in different places and has a tilt to distressed communities right now.

One of those places is Fayette County, in south-central Ohio, about equidistant from Dayton, Cincinnati, and Columbus. Fayettes population of roughly 28,000 is predominantly white and rural with few college graduates. Its median income is about one-fourth lower than the national average, and its poverty rate is about one-fourth higher.

Early in 2023, Honda and its partner LG Energy Solution broke ground on a massive new plant in Fayette to build batteries for Honda and Acura EVs. The Honda project has already generated large numbers of construction jobs, as has a massive Intel semiconductor-fabrication plant under construction about an hour away, outside Columbus, in Licking County. The trade associations for electrical workers, plumbers, whatever it might be, they are going to have jobs in the state of Ohio for years, Jeff Hoagland, the CEO of the Dayton Development Coalition, told me. These are huge facilities. The Honda facility is the size of 78 football fields.

Honda is already advertising to fill some engineering jobs, and once the plant is operational in late 2024 or early 2025, it expects to hire some 2,200 people. Most of those jobs will not require college degrees, Hoagland said. Many more jobs, he added, will flow from the plants suppliers moving to establish facilities in the area. There are companies already buying up land, Hoagland told me.

Hoagland said he has no doubt that the federal tax incentives in the big Biden bills for domestic production of clean energy and semiconductors were central to these decisions. The federal incentives have been 100 percent critical, and I know that firsthand from Intel and from Honda, Hoagland said. Those companies needed those [incentives] to get into the full implementation of their strategy to rebuild that manufacturing, that supply-chain base, in the United States. Now we are seeing all these companies come back to the heartland in Ohio to do manufacturing. Yet another firm, Joby Aviation, announced in September that, with support from federal clean-energy loan guarantees, it plans to construct a factory near Dayton to build electric air taxis.

Encouraging manufacturers to locate their facilities in the U.S. rather than abroad has been the central goal of the tax incentives, loan guarantees, and grants in the clean-energy, semiconductor, and infrastructure bills. But the Biden administration has also been using provisions in those bills, as well as other programs, to try to steer more of those domestic investments specifically into distressed communities.

As the Brookings/MIT report notes, the Inflation Reduction Acts clean-energy tax credits provide extra bonuses of 10 percent or more to companies that invest in low-income communities. An Energy Department loan-guarantee program favors companies that locate clean-energy investments in communities that lost jobs when fossil-fuel facilities shut down. In a speech last month, Brainard highlighted a $1 billion Transportation Department program that funds infrastructure improvements to reconnect neighborhoods that have been isolated from job opportunities by highways or other transportation infrastructure. (Many of those places are heavily minority communities.)

Similarly, under the semiconductor bill, the administration is awarding substantial funds for regional innovation engines through the National Science Foundation, as well as tech hubs that require communities to organize businesses, schools, and government to develop coordinated plans for regional growth in high-tech industries. The winners of these grants include projects that are based in places far beyond the existing large metro centers of technological innovation, such as Louisiana, Wyoming, North Dakota, South Carolina, and Oklahoma. Those [programs] are spreading innovation investment to clusters all around the country rather than being concentrated just in a few huge metros, Brainard told me.

Joseph Parilla, the director of applied research at Brookings Metro, told me that the large manufacturing facilities being built in response to the new federal incentives naturally would flow toward the periphery of major metropolitan areas where many of these distressed counties are located. But Parilla believes the tax incentives and other programs that the Biden administration is implementing are also having a pretty significant impact in driving so many of these investments to smaller, economically strained places.

Biden has made clear that he considers steering more investments to the places lagging economically both a political and policy priority. Even in forums as prominent as the State of the Union address, he often talks about the importance of creating jobs that willallow young people to stay in the communities where they were born. Biden has also, as Ive written, rejected the belief of his two Democratic predecessors, Bill Clinton and Barack Obama, that the most important step for expanding economic opportunity is to help more people obtain postsecondary education; instead, Biden conspicuously emphasizes how many jobs that do not require four-year college degrees are being created in the projects subsidized by his big-three bills. What youll see in this field of dreams are Ph.D. engineers and scientists alongside community-college graduates, he declared at the 2022 Ohio Intel plant ground-breaking.

But its not clear that the economic benefits flowing into distressed communities will produce political gains for Biden. In 2020, despite his small-town, blue-collar Scranton Joe persona, Biden heavily depended on the big, well-educated metro areas thriving in the Information Age: Previous Brookings Metro research found that, although Biden won only about one-sixth of all U.S. counties, his counties generated nearly three-fourths of the nations total economic output.

The outcome was very different in the economically distressed counties. Brookings found that in 2020, Trump won 54 of the 70 distressed counties where the new investments have been announced under Biden. Some Democratic operatives are dubious that these new jobs and opportunities will change that pattern much.

Read: Bidens economic formula to win in 2024

Partly thats because Democrats face so many headwinds in these places on issues relating to race and culture, such as immigration and LGBTQ rights. But its also because of the risk that without unions or many local Democratic officials to drive the message, workers simply wont be aware that their new jobs are linked to programs that Biden created, as Michael Podhorzer, the former AFL-CIO political director, has argued to me.

Jim Kessler, the executive vice president of Third Way, a centrist Democratic group that has studied the partys problems in small-town and rural areas, agrees that even big job gains wont flip small red places toward Biden. But even slightly reducing the GOP margin in those places could matter, he told me. Some of these swing states have vast red areas, and he needs to do well enough in those areas, Kessler said. Pointing to new jobs in previously declining places, Kessler said, could also provide Biden a symbol of economic recovery that resonates with voters far beyond those places.

The Brookings and MIT authors expect that Biden will have many more such examples to cite as further investments in industries including clean energy and semiconductors roll out. The map is not yet finished, the report concludes. There are hundreds of distressed counties with assets similar to those that have attracted investment and have not yet been targeted. One of the most tangible legacies of Bidens presidency may be a steady procession of new plants rising through the coming years in communities previously left for scrap. Whether voters in these places give him credit for that will help determine if hes still in the White House to see it.

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Politics

Unite votes to suspend Angela Rayner over Birmingham bin strike

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Unite votes to suspend Angela Rayner over Birmingham bin strike

Labour’s largest union donor, Unite, has voted to suspend Deputy Prime Minister Angela Rayner over her role in the Birmingham bin strike row.

Members of the trade union, one of the UK’s largest, also “overwhelmingly” voted to “re-examine its relationship” with Labour over the issue.

They said Ms Rayner, who is also housing, communities and local government secretary, Birmingham Council’s leader, John Cotton, and other Labour councillors had been suspended for “bringing the union into disrepute”.

There was confusion over Ms Rayner’s membership of Unite, with her office having said she was no longer a member and resigned months ago and therefore could not be suspended.

But Unite said she was registered as a member. Parliament’s latest register of interests had her down as a member in May.

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The union said an emergency motion was put to members at its policy conference in Brighton on Friday.

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Unite is one of the Labour Party’s largest union donors, donating £414,610 in the first quarter of 2025 – the highest amount in that period by a union, company or individual.

The union condemned Birmingham’s Labour council and the government for “attacking the bin workers”.

Mountains of rubbish have been piling up in the city since January after workers first went on strike over changes to their pay, with all-out strike action starting in March. An agreement has still not been made.

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Rat catcher tackling Birmingham’s bins problem

Ms Rayner and the councillors had their membership suspended for “effectively firing and rehiring the workers, who are striking over pay cuts of up to £8,000”, the union added.

‘Missing in action’

General secretary Sharon Graham told Sky News on Saturday morning: “Angela Rayner, who has the power to solve this dispute, has been missing in action, has not been involved, is refusing to come to the table.”

She had earlier said: “Unite is crystal clear, it will call out bad employers regardless of the colour of their rosette.

“Angela Rayner has had every opportunity to intervene and resolve this dispute but has instead backed a rogue council that has peddled lies and smeared its workers fighting huge pay cuts.

“The disgraceful actions of the government and a so-called Labour council, is essentially fire and rehire and makes a joke of the Employment Relations Act promises.

“People up and down the country are asking whose side is the Labour government on and coming up with the answer not workers.”

SN pics from 10/04/25 Tyseley Lane, Tyseley, Birmingham showing some rubbish piling up because of bin strikes
Image:
Piles of rubbish built up around Birmingham because of the strike over pay

Sir Keir Starmer’s spokesman said the government’s “priority is and always has been the residents of Birmingham”.

He said the decision by Unite workers to go on strike had “caused disruption” to the city.

“We’ve worked to clean up streets and remain in close contact with the council […] as we support its recovery,” he added.

A total of 800 Unite delegates voted on the motion.

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World

Donald Trump announces 30% tariff on imports from EU

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Donald Trump announces 30% tariff on imports from EU

Donald Trump has announced he will impose a 30% tariff on imports from the European Union from 1 August.

The tariffs could make everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals more expensive in the US.

Mr Trump has also imposed a 30% tariff on goods from Mexico, according to a post from his Truth Social account.

Announcing the moves in separate letters on the account, the president said the US trade deficit was a national security threat.

In his letter to the EU, he wrote: “We have had years to discuss our trading relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, trade Deficits, engendered by your tariff, and non-Tariff, policies, and trade barriers.

“Our relationship has been, unfortunately, far from reciprocal.”

In his letter to Mexico, Mr Trump said he did not think the country had done enough to stop the US from turning into a “narco-trafficking playground”.

The president of the European Commission, Ursula von der Leyen, said today that the EU could adopt “proportionate countermeasures” if the US proceeds with imposing the 30% tariff.

Ms von der Leyen, who heads the EU’s executive arm, said in a statement that the bloc remained ready “to continue working towards an agreement by Aug 1”.

“Few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” she continued.

“We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”

Ms von der Leyen has also said imposing tariffs on EU exports would “disrupt essential transatlantic supply chains”.

Meanwhile, Dutch Prime Minister Dick Schoof said on the X social media platform that Mr Trump’s announcement was “very concerning and not the way forward”.

He added: “The European Commission can count on our full support. As the EU we must remain united and resolute in pursuing an outcome with the United States that is mutually beneficial.”

Mexico’s economy ministry said a bilateral working group aims to reach an alternative to the 30% US tariffs before they are due to take effect.

The country was informed by the US that it would receive a letter about the tariffs, the ministry’s statement said, adding that Mexico was negotiating.

Read more US news:
Trump plans to hit Canada with 35% tariff
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How ‘liberation day’ unfolded

Trump’s tariff threats and delays

On his so-called “liberation day” in April, Mr Trump unleashed “reciprocal tariffs” on many of America’s trade partners.

The US president said he was targeting countries with which America has a trade imbalance.

However, since then he’s backed down in a spiralling tit-for-tat tariff face-off with China, and struck a deal with the UK.

The US imposed a 20% tariff on imported goods from the EU in April but it was later paused and the bloc has since been paying a baseline tariff of 10% on goods it exports to the US.

In May, while the US and EU where holding trade negotiations, Mr Trump threated to impose a 50% tariff on the bloc as talks didn’t progress as he would have liked.

However, he later announced he was delaying the imposition of that tariff while negotiations over a trade deal took place.

As of earlier this week, the EU’s executive commission, which handles trade issues for the bloc’s 27-member nations, said its leaders were still hoping to strike a trade deal with the Trump administration.

Without one, the EU said it was prepared to retaliate with tariffs on hundreds of American products, ranging from beef and auto parts to beer and Boeing airplanes.

Continue Reading

US

Donald Trump announces 30% tariff on imports from EU

Published

on

By

Donald Trump announces 30% tariff on imports from EU

Donald Trump has announced he will impose a 30% tariff on imports from the European Union from 1 August.

The tariffs could make everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals more expensive in the US.

Mr Trump has also imposed a 30% tariff on goods from Mexico, according to a post from his Truth Social account.

Announcing the moves in separate letters on the account, the president said the US trade deficit was a national security threat.

In his letter to the EU, he wrote: “We have had years to discuss our trading relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, trade Deficits, engendered by your tariff, and non-Tariff, policies, and trade barriers.

“Our relationship has been, unfortunately, far from reciprocal.”

In his letter to Mexico, Mr Trump said he did not think the country had done enough to stop the US from turning into a “narco-trafficking playground”.

The president of the European Commission, Ursula von der Leyen, said today that the EU could adopt “proportionate countermeasures” if the US proceeds with imposing the 30% tariff.

Ms von der Leyen, who heads the EU’s executive arm, said in a statement that the bloc remained ready “to continue working towards an agreement by Aug 1”.

“Few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” she continued.

“We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”

Ms von der Leyen has also said imposing tariffs on EU exports would “disrupt essential transatlantic supply chains”.

Meanwhile, Dutch Prime Minister Dick Schoof said on the X social media platform that Mr Trump’s announcement was “very concerning and not the way forward”.

He added: “The European Commission can count on our full support. As the EU we must remain united and resolute in pursuing an outcome with the United States that is mutually beneficial.”

Mexico’s economy ministry said a bilateral working group aims to reach an alternative to the 30% US tariffs before they are due to take effect.

The country was informed by the US that it would receive a letter about the tariffs, the ministry’s statement said, adding that Mexico was negotiating.

Read more US news:
Trump plans to hit Canada with 35% tariff
More than 160 missing after Texas floods
Robot performs realistic surgery

Please use Chrome browser for a more accessible video player

How ‘liberation day’ unfolded

Trump’s tariff threats and delays

On his so-called “liberation day” in April, Mr Trump unleashed “reciprocal tariffs” on many of America’s trade partners.

The US president said he was targeting countries with which America has a trade imbalance.

However, since then he’s backed down in a spiralling tit-for-tat tariff face-off with China, and struck a deal with the UK.

The US imposed a 20% tariff on imported goods from the EU in April but it was later paused and the bloc has since been paying a baseline tariff of 10% on goods it exports to the US.

In May, while the US and EU where holding trade negotiations, Mr Trump threated to impose a 50% tariff on the bloc as talks didn’t progress as he would have liked.

However, he later announced he was delaying the imposition of that tariff while negotiations over a trade deal took place.

As of earlier this week, the EU’s executive commission, which handles trade issues for the bloc’s 27-member nations, said its leaders were still hoping to strike a trade deal with the Trump administration.

Without one, the EU said it was prepared to retaliate with tariffs on hundreds of American products, ranging from beef and auto parts to beer and Boeing airplanes.

Continue Reading

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