Your editorial “Trump’s miracle cure for America” (FT View, September 28) rightly calls out the Republican presidential candidate Donald Trump for his tariff zeal as a cure-all for America’s economic ailments: fixing the trade deficit, strengthening national security, reducing the fiscal imbalance, raising the standard of living, rejuvenating US manufacturing, among other things. It’s way too much to expect from a largely obsolete, ineffective and blunt policy instrument.

Trump’s tariff fetish has intensified. It is driven primarily by a narrow-minded obsession with America’s merchandise trade deficit and manufacturing employment. The elimination of the deficit via tariffs — as high as needed to do the job — has become an overarching policy goal.

Unfortunately Trump fails to understand a basic macroeconomic principle: as long as the US invests more than it saves, the trade deficit is inevitable. (By the same token, excess savings are the primary underlying driver of China’s persistent trade surpluses.)

Given this hard reality, even if Washington were to succeed in slashing the trade deficit via new “killer” tariffs (60 per cent or higher) against China, other exporters (India, Mexico, Vietnam etc) would fill the gap. This happened when Trump was president: the overall trade deficit kept widening and manufacturing employment deteriorated after the tariff war began in 2018. Undersaving is the main structural cause behind the large US trade deficit, which cannot be corrected by any amount of “smart tariffs”.

However, the national savings rate can be increased by reducing America’s unsustainable fiscal deficit. There is considerable empirical evidence for the existence of an American “twin deficit”: the fiscal and trade deficits moving largely in tandem.

Trump’s proposed high tariffs would be a huge negative shock to world trade, probably triggering a global trade war, producing far more losers than winners. Instead of acting as a chief disrupter in world commerce, the new president — whoever is elected — should reestablish Washington as the global champion of rules-based free and fair trade and a credible leader to fight the rapidly growing protectionism worldwide.

Given these risks, and Trump’s demonstrated abuse of tariffs as president (applied on phoney national security grounds, even against close allies), it may be high time for Congress to consider reclaiming its constitutional responsibility under Article 1, Section 8, to regulate commerce with foreign nations.

Istvan Dobozi
Former Lead Economist, World Bank, Sarasota, FL, US

The boss of Tesco exuded confidence about the economy yesterday as he claimed shoppers were getting back to treating themselves.

Chief exec Ken Murphy said consumers were “in good shape” and noted sales of its more expensive Finest range had risen by almost 15 per cent in the past six months.

3

The boost in sales of upmarket products is a sharp reversal from the trend during the cost-of-living crisis when sales of cheaper budget and own-brand products rocketed.

Mr Murphy said that shoppers had a “willingness to spend a little bit more to treat themselves… While they’re not doing cartwheels down the aisles, they’re in reasonably good shape.”

He acknowledged there was a “lot of uncertainty in the world” but said Tesco was preparing for a strong Christmas.

“We see customer sentiment improving before Christmas,” Mr Murphy said. He added that Tesco was expecting a record-breaking Halloween, with three million pumpkins forecast to be sold at its stores this month.

3

Advertisement

His upbeat comments come despite a slew of economic data showing falling consumer confidence as Brits worry about what may be in this month’s Budget.

Mr Murphy’s tone is also at odds with remarks made by Sainsbury’s chief exec Simon Roberts, who a day earlier cautioned that shoppers were holding back on spending due to worries about what Labour will announce.

However, Tesco, Britain’s biggest supermarket chain, is already riding high after boosting its profits by a fifth to £1.9billion on the back of its sales rising by 3.5 per cent to £31.46billion in the half-year.

The boost gives Tesco its highest market share since January 2022. Mr Murphy said its Aldi Price Match and Clubcard promotions had made it more competitive.

Around 23 million British households, 80 per cent of the country, have a Tesco Clubcard.

Plea on electric car VAT

3

Private buyers are increasingly choosing diesel cars ahead of electric ones — prompting the motor industry to call for more support in hitting its Net Zero targets.

The Society of Motor Manufacturers and Traders said private diesel registrations in September were up by 17.2 per cent on last year — an increase of 1,369 units.

That compared with a rise of just 430 pure battery electric registrations — 3.7 per cent — despite huge discounting.

Bosses from Ford, Honda, Kia, Mercedes, Nissan, VW, Jaguar Land Rover and Vauxhall-maker Stellantis have written to Chancellor Rachel Reeves ahead of her October 30 Budget, calling for VAT cuts on electric vehicles and public charging points.

These cost an average of 80p per kilowatt hour — so drivers pay more to recharge electric cars than petrol and diesel drivers do to fill up the tank.

£666m hell of a sale

Investors dumped a devilish £666million worth of UK shares last month, amid fears the Budget could push up capital gains taxes.

Figures from global fund network Calastone show that UK funds were out of favour while other markets saw inflows of cash.

Capital gains tax on shares being sold is currently at 20 per cent but the Chancellor is reportedly considering increasing this to 45 per cent.

Mulberry help

Mike Ashley’s Frasers Group is backing Mulberry’s £10million cash call to investors — just days after having an £83million hostile takeover bid rejected.

Frasers, which owns a 37 per cent stake in the luxury bag brand, will put £3.9million into the share sale to avoid being diluted. It has also not ruled out a further bid offer.

But sources say that is unlikely to be successful, with the company being backed by its majority shareholder Challice, owned by Singaporean billionaire Christina Ong.

Upper Crust owner SSP enjoyed a 9 per cent rise in UK sales in the last three months.

Its railway station shops have benefited from fewer rail strikes while its airport cafes have been boosted by more holidaymakers.

Chat for £118bn

ChatGPT owner OpenAI is now worth £118billion after its latest funding round.

The artificial intelligence firm has raised another £5billion from investors, including tech giant Microsoft and AI chipmaker Nvidia.

Only four companies on London’s FTSE 100 are still worth more. It also has a new £3billion credit facility from big Wall Street banks.

It comes amid speculation that the Californian firm’s boss, Sam Altman, is restructuring the company into a for-profit entity, rather than non-profit.

Offering 132 hotels and resorts around the world, Four Seasons Hotels and Resorts is one of the premier hoteliers in the industry. With 54 properties in North America – four properties in Central and South America, 20 properties in Europe, 23 properties in the Middle East and Africa and 35 properties in Asia and the Pacific – they also have grown to manage close to 6,000 units across 54 properties in 29 countries in their Private Residences. The brand also offers the Four Seasons Private Jet Experience, Four Seasons Drive Experience and the upcoming Four Seasons Yachts and is proud to have a global pipeline of more than 60 projects under planning or in development. Consistently ranks among the world’s best hotels, we at JustLuxe have been afforded the opportunity to stay at several properties, here are some of the recent ones visited or reviewed.

A mere 15 minutes from the exclusive Cabo San Lucas private airport (CSL), Four Seasons Resort and Residences Cabo San Lucas at Cabo Del Sol introduces a vibrant oasis in Mexico. This vibrant Riviera-style village boasts 96 charming guest rooms and suites, plus 61 splendid residences, villas, and estates – each with mesmerizing views of the sparkling Sea of Cortez. Offering eight dining and drinking venues, it is home to Cabo’s only oceanfront rooftop bar at a luxury resort. Guests can book a multitude of activities through the Resort’s Baja 360° Adventure Center or lounge at the three large pools and hot tubs, including an adults-only pool, a family pool with shallow splash areas, and a spa pool. The secrets of the local Kumiai tribe are woven into modern treatments at Tierra Mar Spa, while those seeking even further relaxation or rejuvenation, can book restorative retreats. Read the full story HERE. 

Four Seasons Resort & Residences Napa Valley features a working winery and vineyard with on-site wine tasting opportunities, a Michelin-starred restaurant, gracious accommodations, a deluxe spa, and a welcoming atmosphere that exudes the relaxed sophistication for which the region is known. The resort opened in 2021 and has since established itself as one of Napa’s premier destinations, thanks to its all-star medley of Elusa Winery, Spa Talisa and MIchelin-starred Auro restaurant. The resort’s 85 beautifully appointed rooms and suites encircle Elusa Winery’s organic vineyards and feature a fireplace, a private furnished terrace, a fully stocked mini-bar, a wine fridge with a small selection of local wines for purchase, and the heavenly Four Seasons bed. Additionally, of 20 on-site standalone residences, 10 are available for rental and are a great option for families. Read the full story HERE.

Four Seasons Hotel Osaka officially welcomed its first guests in August 2024 inside the new One Dojima multi-use building. Featuring a modern ryokan experience on the 28th floor and a wellness zone on the 36th floor, guests can choose from six destination dining concepts, including a Japanese tea lounge and Cantonese restaurant. With its dedicated GENSUI floor, this contemporary ryokan experience, the first of its kind in Osaka, presents a modern expression of Japanese customs and design principles. Beyond the GENSUI floor, Four Seasons Hotel Osaka offers 130 guest rooms and 24 suites, all boasting elevated city views from the 29th to 35th floors. anchored by a 52-foot indoor pool, The Spa at Four Seasons Hotel Osaka offers signature rituals like the 100-minute, high-performance facial inspired by Empress Komyo. Read the full review HERE.

The Four Seasons Hotel Seattle offers a luxurious and refined experience in the heart of downtown Seattle. With its prime location near the Seattle Art Museum, Pike Place Market, and the waterfront, it provides easy access to the city’s top attractions. The hotel boasts 147 contemporary rooms and suites, many of which feature stunning views of Elliott Bay and the Olympic Mountains. Amenities include a rooftop infinity pool with sweeping vistas, a state-of-the-art fitness center, and The Spa, offering personalized treatments to unwind and rejuvenate. Dining at the hotel’s Goldfinch Tavern provides a Pacific Northwest-inspired menu, crafted in partnership with renowned chef Ethan Stowell. Read the full story HERE.

Hidden along the untouched shores of Mexico’s Costalegre, Four Seasons Resort Tamarindo is where luxury coexists with nature’s most pristine wonders. A unique sanctuary where luxury and nature are seamlessly intertwined, the resort is surrounded by 3,000 acres of untouched tropical jungle and pristine beaches, creating experiences that invite guests to disconnect from the world and fully immerse into a landscape of extraordinary beauty. Whether you choose a suite, beach house or spacious villa, their accommodations seamlessly blend indoor and outdoor living with every modern amenity. The dining experiences at Four Seasons Resort Tamarindo are a celebration of Mexico’s vibrant culinary heritage, which is highlighted at Coyul where Chef Elena Reygadas’ globally inspired dishes are crafted from fresh, local ingredients sourced from the resort’s own Rancho Ortega. From a family barbecue at Majahua Beach, a romantic dinner at Nueve — the picturesque 9th hole of the resort’s ocean front golf course, or a picnic at Playa Dorada to epicurean workshops led by Culinary Director Nicolas Piatti, you’ll discover the soulful expressions of Mexico’s culinary traditions. Read the full story HERE.

Housed in the original Banco Hispano Americano headquarters building, Four Seasons Hotel Madrid faces the Plaza Canalejas and forms the main entrance to Galería Canalejas. Located perfectly in the City Center, the hotel is within walking distance of all the city’s key attractions and offers 200 rooms (161 rooms and 39 suites) across five floors and 22 Private Residences. Combining the best of Dani García’s Michelin-starred dishes with more casual Spanish and international cuisine, the hotel’s rooftop restaurant Dani Brasserie is a fun brasserie with a sophisticated touch and for a more eclectic atmosphere, and menu, head over to Isa on the first floor which presents a sophisticated blend of Asian and Mediterranean cuisine. Offering the largest urban wellness center in Madrid. The eight-treatment room spa is located on the hotel’s fifth floor and is adjacent to the fitness center, swimming pool and spa as well as the Rossano Ferretti Hair Spa. Read the full story HERE.

Featuring 200 guest rooms and 40 suites, Four Seasons Hotel Mexico City is just steps from the busy grand boulevard of Paseo de la Reforma. Set around a verdant inner courtyard with tropical fruit trees, the courtyard is where you’ll find one of the two signature restaurants, Zanaya, along with Pan Dulce, which offers Mexican and French pastries, as well as Fifty Mils gastropub. The hacienda-style hotel also presents Il Becco a lively and sophisticated Italian restaurant featuring a list of fine Italian wines (the largest in the country) and views of the open kitchen. Rooms range from 540 sq. ft. to 2,230 sq. ft. and are designed with contemporary touches and abstract patterns with bold fabrics and dark woods. At the Wellness House, the hotel’s spa, guests can pamper themselves with custom-tailored treatments like the ancestral signature treatment or the sensorial massage with poultices. Read the full review HERE.

A harmonious blend of luxury and history, The Four Seasons Hotel in Florence is housed within a Renaissance palace and embraced by lush gardens. The meticulously restored 15th-century palace and a 16th-century convent is a 10-minute walk from Piazza del Duomo and just steps away from the cultural heart of Florence. Whether overlooking the gardens, the historic buildings or the Arno River, the rooms and suites offer a unique perspective of Florence’s beauty. Guests can indulge in the finest of Tuscan cuisine at the Michelin-starred Il Palagio or for a more relaxed dining experience, the Al Fresco restaurant offers alfresco dining in a charming courtyard setting. Take dining to new heights with their secret dinner experience which allows guests to enjoy a private meal alongside the Duomo. Set alongside the pool, the spa offers a litany of spa and wellness services along with their relaxation experiences. Read the full story HERE.

Located within the 1,400-acre Peninsula Papagayo on a hillside between two white sand beaches, the Four Seasons Resort Peninsula Papagayo houses 181 suites and private villas as well as estates with up to six bedrooms and private pools. Guests can enjoy two main pools at the center of the resort as well as Virador Beach Club, which houses an adult only infinity pool with single lounges and large cabanas with shaded daybeds and refrigerators. The resort’s wellness offerings are plentiful, centered around an expansive 18,000 sq. ft. spa and salon that offers luxurious treatments and therapies as well as a large gym. Additionally, the Four Seasons Resort Peninsula Papagayo has added a stunning new Wellness Shala, a space which offers modern wellness practices with ancestral Costa Rica rituals. The resort also offers six dining options, a variety of experiences and an 18-hole course and driving range. Read the full review HERE.

Conveniently located along Bangkok’s Chao Praya River, the Four Seasons Bangkok Chao Praya River features 299 rooms and suites. On the ground level, The BKK Social Club offers up exotic cocktails and craft beverages while Riva Del Fiume Ristorante offers Italian cuisine. Chef Gullaume Galliot presents French cuisine at Palmier By Gulliame Galliot and Yu Ting Yuan is the property’s Cantonese restaurant which features chef Cheun’s Tasting Menu. The hotel’s Urban Wellness Centre is a sanctuary above the bustle of the street below featuring state-of-the-art spa treatments, spiritual practices and elite fitness training tailored to your individual needs. Read the full story HERE.

Unlock the Editor’s Digest for free

Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

The UK government has announced up to £21.7bn of support to get the country’s first carbon capture and storage projects up and running, in a big moment for the nascent industry but one which highlights the costs involved.

Ministers said the funding, over 25 years, would support two undersea carbon storage sites and pipelines, with the capacity to store over 8.5mn tons of carbon dioxide per year combined, as well as carbon capture at three planned projects to produce hydrogen, power and energy-from-waste. The projects are in Teesside and Merseyside, northern England.

The UK emitted 384.2mn tonnes of carbon dioxide equivalent in 2023, according to provisional government figures.

Nonetheless, the move marked the first step towards getting the industry off the ground in the UK and an attempt to inject confidence about the government’s seriousness about the sector.

However, the three industrial sites receiving support to attach carbon capture technology to their projects fall short of the eight which entered negotiations with the government last year. The prospects of support are now unclear for the remainder.

The government also did not give any specifics about support for the next batch of capture and storage projects chosen by the previous government to be next in line for support, in Scotland and the Humber region.

A Labour party aide said it remained committed to the industry in “Humberside, Scotland and elsewhere around the country,” adding, “this is our first step, and we will set out our future plans in due course.”

The government said its support, of up to £21.7bn, to be funded by a mixture of levies on energy bills and Treasury funding, should attract about £8bn of private investment into the projects.

The government is keen to highlight its ability to secure private financial backing for the UK ahead of its international investment summit on October 14.

Prime Minister Sir Keir Starmer said the government was “reigniting our industrial heartlands” and the support will “give industry the certainty it needs”.

CCS involves trapping carbon dioxide as it is produced, compressing it and pumping it underground, sometimes into depleted oil and gas reservoirs, to avoid it being released into the atmosphere.

The technology is seen as key to the UK’s legally binding goal of cutting carbon emissions to net zero by 2050, but questions linger about its commercial and technical feasibility at scale.

Carbon capture capacity globally reached about 51mn tonnes last year, according to BloombergNEF, or 0.14 per cent of global emissions, including projects in the US, Canada and Norway. 

Previous government attempts to support the industry, in 2011 and 2015, were dropped at the last minute.

In 2023, Jeremy Hunt, then Tory chancellor, committed £20bn of investment in CCS projects over two decades. But none of that funding was made available before this year’s general election. 

The planned carbon storage sites to secure support are Italian oil giant Eni’s project in Liverpool Bay, in the north-west, and the Northern Endurance Partnership off the coast of Teesside, in the north-east, being developed by BP, Equinor and TotalEnergies.

One of the planned power projects to win support is BP and Equinor’s planned Net Zero Teesside gas-fired power station. Lord Ben Houchen, Tees Valley mayor, said work should start by the end of this year, creating 4,000 construction jobs.

The Protos energy-from-waste plant being developed by Encyclis and Biffa in Cheshire; and a hydrogen production plant being developed by Essar at its oil refinery in Stanlow, are the other two industrial sites which have secured support to capture their emissions.

Some scientists and environmentalists believe industry is using CCS to prolong the life of fossil fuel assets. However, groups including the Climate Change Committee, which advises the government, believe it is necessary for the UK to meet climate targets. 

Climate Capital

Where climate change meets business, markets and politics. Explore the FT’s coverage here.

Are you curious about the FT’s environmental sustainability commitments? Find out more about our science-based targets here