Business
Column: The salmon industry faces extinction — not because of drought, but government policies and politics
Snapshots from an environmental and economic disaster:
Kenneth Brown, the owner of Bodega Tackle in Petaluma, reckons he has lost almost $450,000 in the last year.
“I haven’t taken a paycheck in seven or eight months,” he says. He has had to lay off all but one employee, leaving himself, his son and the one remaining worker to run the business.
James Stone, board president of the Nor-Cal Guides & Sportsmen’s Assn., says more than 120 guides who serve recreational fishing customers in and around the Sacramento River and San Francisco Bay have been all but put out of business, costing the economy as much as $3.5 million a year.
Salmon have survived droughts in California for millennia. But when on top of that you have incredible water diversions and temperature pollution, you’re killing these baby fish. And when you kill the baby fish, they don’t come back as adults.
— Scott Artis, Golden State Salmon Assn.
Sarah Bates, the owner of a commercial fishing boat in San Francisco, has seen 90% of her income washed away. She has watched a commercial fleet capacity of nearly 500 boats reduced nearly to zero.
The circumstance affecting all three is the shutdown of the crucial fall-run salmon fishing in California, which the Pacific Fishery Management Council, a governmental body, recently extended for 2024, the second year in a row.
The main reason is the decline of the salmon population in the Sacramento River to such an unsustainable level that there’s reason to fear that it may not recover for years, if ever — unless government policies are radically reconsidered.
Commercial fishers who relied on the fall-run salmon as their dominant source of income have struggled to find alternatives.
“Some people are bringing in black cod or rockfish or albacore,” Bates told me. Some land Dungeness crab. But prices for those products don’t match the value of Chinook salmon.
“That allows for some income, but doesn’t really make up the difference for what you lose,” Bates says. “There are members of the fleet who have taken land jobs, or are relying on household members to pay the bills.”
One can’t minimize the scale of the shutdown, which follows a long-term decline in the fishery and is the first such shutdown since 2008-2009, which was driven by a severe drought. In 2022, the last year of salmon fishing in California, the fleet consisted of 464 commercial vessels, down from 4,750 in 1980.
Private and chartered recreational trips in California, which reached 98,900 in 2022—down from 148,000 in 2012—have also been shut down.
The closing of both categories has rippled across the entire fishing economy, affecting hotels and restaurants that catered to recreational fishing customers as well as bait and tackle shops. For Brown’s Petaluma shop, there are no sales of bait or commercial gear — “no more boots, no more rain slickers, all that business is gone and there’s nothing to replace it.”
There’s more to the salmon crisis than the devastation of livelihoods of tens of thousands of Californians working in an industry valued at more than $1.4 billion annually.
The crisis underscores the utter failure of the state’s political leaders to balance the needs of stakeholders in its water supply. In this case, the conflict is between large-scale farms on one side and environmental and fishery interests on the other.
For decades, agribusiness has had the upper hand in this conflict. It’s not hard to discern why: The growers have more money and therefore more political influence. Westlands Water District, the vast irrigation district sprawled over Fresno and Kings counties in the Central Valley—the largest such district in the nation—spent more than $4.7 million on Sacramento lobbying over the last decade.
During the same period, Stewart Resnick, whose Roll International conglomerate owns the Central Valley almond orchards that are the largest growers of those nuts in the world and enormous consumers of water, donated $2.8 million to political campaigns in California, chiefly to Democratic candidates and in support of ballot box initiatives; among his contributions was $125,000 to oppose the 2021 recall of Gov. Gavin Newsom.
Officially valued at $1.4 billion a year, the salmon fishery can’t hope to compete with agriculture on a dollar-for-dollar basis. The market value of all agricultural products in California was $59 billion in 2022, according to state figures; salmon weren’t counted. The 10 most lucrative farm crops, led by dairy products, brought in some $35 billion that year.
The salmon fisheries are bellwethers for ecological health generally. “Fishermen are directly dependent on a healthy ecosystem,” says Barry Nelson, an advisor to the Golden State Salmon Assn. Their fortunes reflect not merely adequacy of water flows in California rivers and bays, but water quality. Any factor that falls outside a given range can produce a crash in fish populations, endangering whole species while putting men and women out of work.
As my colleague Ian James has reported, a key factor in the survival of the salmon population is water temperature. The diversion of ever more water from the federal government’s Shasta Dam for farm irrigation has driven temperatures in the Sacramento River to murderous levels.
That river, Nelson points out, is “the most important salmon-producing system south of the Columbia River.” But California authorities haven’t required the federal Bureau of Reclamation, which owns and manages the dam, to meet temperature standards downstream of the dam, even though it has the power to do so. “The state just hasn’t done its job,” Nelson says.
Talk to stakeholders in the salmon fishery, and one term keeps cropping up: “water management.” Their point is that drought isn’t the most important factor in the survival of the species — policy is, specifically the management of water supplies so that they’re balanced among users and serving irrigation demand from farmers doesn’t wipe out competing interests, especially during dry years.
To better understand the threats to salmon, it helps to know about their life cycle. Salmon live and breed on a three-year timeline. Adult fish swim in the ocean, but migrate upstream to lay eggs in the gravel beds of inland rivers. After they hatch, the baby fry and juveniles, called smolt, begin migrating downstream, typically via San Francisco Bay, and out to sea. Then the cycle begins again.
The critical period for the fall-run salmon in the Sacramento is while the eggs are incubating in their gravel beds. At water temperatures of 54 degrees, they start being cooked to death. Irrigation releases from Shasta suck down the reservoir’s cold water, leaving surface water heated by the sun; that’s what ends up in the Sacramento River at spawning season.
In recent years, water in the spawning beds has been measured at 70 degrees or higher. In 2021, state biologists reported, 99% of winter-run Chinook salmon failed to reach the San Francisco-San Joaquin River delta and the bay.
“Salmon have survived droughts in California for millennia,” says Scott Artis, executive director of the Golden State Salmon Assn. “But when on top of that you have incredible water diversions and temperature pollution, that’s what’s killing these baby fish. And when you kill the baby fish, they don’t come back as adults.”
The need for painstaking water management is the result of human interventions in California’s natural environment. Over the last 100 years, rivers across the Central Valley were dammed to provide irrigation for farms, blocking salmon from their natural habitats. The federal government opened salmon hatcheries to compensate, but they have not produced enough fish to make up for the losses from poor water management.
Meanwhile, the water demands of California growers became less flexible. Crops that could be fallowed during dry spells, leaving more water for the environment, were supplanted by almond and pistachio orchards, which require water in wet years and dry. California almond acreage rose to 1.38 million last year from 418,000 in 1995. In the same period, pistachio acreage rose to more than 461,000 from 60,300.
The crisis that has unfolded in 2023 and this year has its roots in actions taken during the Trump administration. In 2019, Trump installed David Bernhardt, a lobbyist for agricultural water users, as Interior secretary.
As an attorney in private practice, Bernhardt had sued the government on behalf of the giant Westlands Water District to challenge its enforcement of the Endangered Species Act, which conflicted with Westlands’ interests. As Interior secretary, Bernhardt advocated for loosening enforcement of the act.
In 2020, Bernhardt and Trump implemented an increase in water deliveries to big farmers under conditions that spelled disaster for the salmon fishery, among other ecological issues. California objected, asserting that Interior’s official biological opinions, which concluded that the increases wouldn’t adversely affect salmon and other species, bore no “rational connection [with] the facts.” The Natural Resources Defense Council labeled the opinions “a plan for extinction” of salmon and other endangered species.
They went through anyway. The demands from agribusinesses in the Central Valley for more water had received a friendly hearing from the Trump administration and Republicans in Congress, who recognized that the valley was perhaps the only strongly Republican part of California. They decried the passage of water from inland reservoirs to rivers and out to sea as wasteful; as I wrote at the time, their single-minded service for the growers deprived the salmon fishery of its lifeblood.
The impact of the Trump policies was destined to be felt three years on. Indeed, last year only 6,160 adult salmon were estimated to have spawned in the Sacramento River, the worst level since the drought year of 2017 and obviously well below the annual average of 175,000 spawning from 1996 to 2005, the best period for the health of the salmon fishery over the last four decades.
In January, Newsom responded to the salmon crisis with an action plan encompassing restoring salmon habitats, modernizing hatcheries, and removing impediments to salmons’ upstream migrations. The fishery community supports many of those initiatives, but also recognizes that the package is largely aspirational, for money hasn’t been appropriated to fulfill all its elements.
The Newsom administration also outlined plans in March 2022 to reach a series of voluntary agreements with agricultural water users over water sharing. Environmental and fishing groups, which weren’t part of the negotiations, weren’t impressed — a coalition of those groups, including the Sierra Club and the Golden State Salmon Assn., panned the proposal as “incomplete, unenforceable, inequitable, inadequate, and [lacking] a scientific foundation.”
Nor were the proposed voluntary agreements favored by two key federal agencies. The Environmental Protection Agency wrote in January that the absence of strong mandates for higher water flows in the Sacramento River meant that the plan would have only a “insignificant impact” on water temperature in the river. The National Marine Fisheries Service questioned whether the $740 million in state and federal funding needed to implement the voluntary agreements was realistic, since none of it had been appropriated.
In other words, Newsom’s approach involves a heaping helping of hand-waving. From the standpoint of the salmon industry, his other water policies, including a 45-mile water tunnel under the delta and fast-tracking construction of the Sites Reservoir in the western Sacramento Valley, will make things worse. The tunnel would turn the delta into “a deathtrap for salmon,” Nelson says, and the Sites Reservoir would degrade downstream waters, possibly increasing temperatures.
In many respects, the policies on the table are antiques. Some were developed without regard for the effects of global warming, and others reflect thinking that emerged in an era when California authorities thought the water supply was abundant, even unlimited.
That won’t do anymore. The federal government already lists Sacramento River winter-run Chinook salmon as an endangered species and the spring run as a threatened species. The all-important fall run might not be far behind.
California’s water policies need to be subjected to a thorough rethinking, and money to fix all that’s broken needs to be appropriated, not just put on somebody’s wish list.
Fishermen and -women are a constitutionally optimistic class. “There’s always hope that things will get better,” Artis told me. But hope is waning. “We have to educate the Legislature and the public so we get those water flow and temperature protections, or we’ll be here again year after year with fishery closures.”
Business
China’s Exports and Imports Set Records in April Amid High Energy Costs
China’s exports and imports each set monthly records in April, further cementing the country as the world’s leading trading nation as Beijing prepares to welcome President Trump for a summit next week with Xi Jinping, China’s leader.
China also ran a trade surplus — the excess of exports over imports — of $84.8 billion last month, according to data released on Saturday by the General Administration of Customs. However, that surplus did not set a record. The war in Iran and closure of the Strait of Hormuz pushed up the cost of imported oil and natural gas, causing China’s overall imports to increase slightly faster than exports.
The surplus in April keeps China on track for a third year of roughly trillion-dollar trade surpluses. China posted a $1.19 trillion trade surplus last year, easily breaking the world record of $992 billion that it had set the year before.
Mr. Trump is expected to press Mr. Xi to buy more American goods during their scheduled summit, part of his long-running effort to narrow China’s longtime trade surplus with the United States. But two recent court decisions overturning Mr. Trump’s tariffs on imports have eroded some of his leverage.
China’s exports to the United States jumped 11.3 percent last month compared to its shipments in April of last year, when President Trump’s “Liberation Day” tariffs produced a slump in imports from China.
The country’s imports from the United States rose only 9 percent in April this year. As a result, its trade surplus with the United States widened by 13 percent.
China has long used state-run purchasing collectives in big categories like farm goods and commercial aircraft to manage its trade with the United States, ensuring it sells three to five times as much as it buys. Mr. Trump and his advisers have criticized that imbalance.
Semiconductor exports doubled last month compared with April of last year. Chinese manufacturers cashed in on the artificial intelligence data center boom even though they cannot yet produce some of the fastest kinds of chips.
Overall exports of electronics and machinery were up 20 percent in April from a year earlier.
China acts in many ways as a shock absorber in global oil markets. Beijing buys more oil for its vast reserves when the price is low, then cuts back purchases when prices are high, as they were last month.
With oil prices spiking upward this spring, the tonnage of China’s oil imports dropped last month to its lowest level since July 2022, when Shanghai’s two-month Covid lockdown reduced demand. The lockdown hurt many of China’s oil-dependent industries.
Because prices rose faster last month than the tonnage declined, China’s overall bill for crude oil imports rose 13 percent from a year earlier. Rising oil prices helped drive China’s overall imports up 25.3 percent in April from a year ago, to a record $274.6 billion. Its exports surged 14.1 percent last month from a year earlier, to a record $359.4 billion.
China has been particularly successful this year in exporting electric cars as well as renewable energy products like wind turbines and solar panels. Exports of electric vehicles were up 52.8 percent last month from a year earlier.
China has been running large, and widening, trade surpluses over the past several years with most of the rest of the world. It has trade deficits with only a handful of countries, including those like Brazil and Australia which have very large commodity exports.
The European Union and many developing countries now find themselves with rapidly growing trade deficits with China. Practically all of them have run their own trade surpluses with the United States to fund their deficits with China, sometimes repackaging goods from China and shipping them on to the United States to do so.
China’s huge trade surpluses are not necessarily a sign of economic strength. They partly reflect very weak spending by Chinese households on imports and domestic goods alike after five years of sliding housing prices wiped out much of the savings of the middle class. This has prompted many families to scrimp on purchases like new cars, leaving Chinese automakers with more cars to export.
“The Chinese economy still demonstrates resilience in trade and industrial supply chains,” said Zhu Tian, an economics professor at the China Europe International Business School in Shanghai, after the release of the trade data.
But weak domestic spending and a leveling off in the trade surplus, he said, “suggest that economic growth will continue to face significant challenges for the rest of the year.”
Business
Disney’s ABC challenges FCC, escalating fight over free speech
Walt Disney Co.’s ABC is forcefully resisting Federal Communications Commission efforts to soften the network’s programming, accusing the federal agency of an overreach that violates 1st Amendment freedoms.
Last week, the FCC took the unusual step of calling in the licenses of eight Disney-owned television stations for early review. The move — widely interpreted as an effort to chill the network’s speech — came a day after President Trump demanded that ABC fire late-night host Jimmy Kimmel over a joke about First Lady Melania Trump.
The FCC separately has taken aim at ABC’s daytime discussion show, “The View,” which delves deeply into politics.
The FCC has questioned whether the show, which prominently features Trump critics Whoopi Goldberg and Joy Behar, could continue toclaim an exemption to rules that require broadcasters to provide equal time for opponents of political candidates.
In its response this week to the FCC, Disney’s Houston television station raised the stakes in “The View” dispute, calling the commission’s actions “unprecedented” and “beyond the Commission’s authority.” The ABC station’s petition for a declaratory ruling said “The View,” has long qualified as a “bona fide” news interview program with freedom to conduct interviews of legally qualified political candidates.
“The Commission’s actions threaten to upend decades of settled law and practice and chill critical protected speech, both with respect to The View and more broadly,” the Houston station KTRK-TV said in the filing.
The network’s firm stance sets up a clash with the Trump administration, including the president’s hand-picked FCC Chairman Brendan Carr, who has made no secret of his disdain for Kimmel and other ABC programming. Earlier this year, Carr announced that decades-old exemptions from the so-called “equal time rule,” for some programs, including “The View,” were no longer valid.
In a statement, the FCC said it would “review Disney’s assertion that ‘The View’ is a ‘bona fide news program’ and thus exempt from the political equal time rules,” according to a spokesperson.
“Decades ago, Congress passed a law that generally prohibits broadcast television programs from putting a thumb on the scale in favor of one political candidate over another,” the spokesperson said. “The equal time law encourages more speech and empowers voters to decide the outcome of elections.”
ABC’s strenuous arguments mark a turning point for the Disney-owned outlet.
In December 2024, a month after Trump was elected to a second term, the network quickly settled a lawsuit over statements made by news anchor George Stephanopoulos that Trump found offensive. ABC agreed to pay Trump $15 million to end his legal fight — sparking an outcry among free speech advocates, who accused the network of caving on a case it may have won.
But, over the past year, the network has weathered several storms, including a threat by Carr in September to punish ABC if it didn’t muzzle Kimmel for comments he made in the wake of conservative activist Charlie Kirk’s death. ABC briefly benched Kimmel to allow tensions to cool but, during the week his show was off the air, protesters loudly bashed Disney, demanding the legendary company stand up for free speech.
Thousands of consumers canceled their Disney+ and Hulu subscriptions in protest.
Protesters swarmed Hollywood Boulevard, protesting ABC’s move to bench Jimmy Kimmel in September over comments he made about the shooting of right-wing influencer Charlie Kirk.
(Genaro Molina/Los Angeles Times)
Some conservatives, including Sen. Ted Cruz (R-Texas) and commentator Ben Shapiro also criticized Carr’s handling of 1st Amendment issues.
“The days of the FCC as a paper tiger are numbered,” the FCC’s lone Democrat, Anna M. Gomez, said Friday in a statement. “What the public will remember is who complied in advance and who fought back. I’m glad Disney is choosing courage over capitulation.”
The high-profile dispute presents an early challenge for Disney Chief Executive Josh D’Amaro, who succeeded longtime chief Bob Iger in March.
ABC has asked for the full commission — a three member panel of Carr, Gomez and Commissioner Olivia Trusty, a Republican — to rule on the equal time exemption for “The View.” ABC said that, in 2002, it received a ruling from the FCC that granted the exemption, and the show’s format has not changed. “The View” is produced by ABC News.
“Some may dislike certain — or even most — of the viewpoints expressed on The View or similar shows,” the station said in its filing. “Such dislike, however, cannot justify using regulatory processes to restrict those views.”
ABC described a logistical nightmare of providing equal time for political opponents by pointing to California’s crowded primary field of gubernatorial candidates. “Affording equal time would mean accommodating over 60 legally qualified candidates, regardless of their perceived newsworthiness,” the station wrote.
The network said it makes show bookings based on newsworthiness, not partisan politics. It also noted it has invited politicians from both sides of the aisle to appear on “The View,” but some, including Vice President J.D. Vance, Health Secretary Robert F. Kennedy, Jr., Secretary of State Marco Rubio and entrepreneur Elon Musk, have declined the invitation.
The station also noted that, while the FCC has questioned the exemption for “The View,” the agency hasn’t shown interest in regulating programs on other networks, “including the many voices — conservative and liberal — on broadcast radio.” The FCC also oversees radio station licenses.
“The danger is that the government will simply decide which perspectives to regulate and which to leave undisturbed,” ABC said.
On April 28, Carr called for a review of Disney’s broadcast licenses, including for the Houston station and KABC-TV in Los Angeles, two years before any of them were set to expire. The FCC said the review was part of the agency’s year-old inquiry into Disney’s diversity, equity and inclusion policies and whether they violated federal anti-discrimination rules.
In its Thursday petition, ABC said it had fully complied with the FCC’s request for documents related to its diversity and hiring.
The company has produced more than 11,000 pages of documents to comply with the request, Disney said.
The same week that Disney sent documents to the FCC, Kimmel made a joke on his show about Melania Trump, comparing her glow to that of “an expectant widow.” On April 25, a gunman tried to breach security at the Washington Hilton, where the first couple were on stage for the White House Correspondents’ Assn. Dinner. Shots were fired outside the ballroom.
Three days later, the FCC announced it was requiring early license renewal applications for the Disney-owned stations.
Business
U.S. Targets Iran’s Missile and Drone Program With Sanctions
The United States on Friday announced a flurry of new sanctions intended to increase pressure on Iran’s economy, targeting people and companies in China and Hong Kong that have been helping the Iranian military gain access to supplies and war equipment.
The sanctions came ahead of a major summit between President Trump and China’s leader, Xi Jinping, in Beijing next week. China’s support for Iran has become a flashpoint with the Trump administration, which has been trying to compel independent Chinese refineries to stop purchasing Iranian oil.
China is Iran’s biggest buyer of oil, and the Trump administration has said that it is sponsoring terrorism by propping up the Iranian economy.
The new sanctions are aimed at Iran’s military industrial supply chain, and are intended to make it harder for Iran to secure access to the material it needs to build drones and missiles. In addition to China, the sanctions also target people and companies based in Belarus and the United Arab Emirates.
“Under President Trump’s decisive leadership, we will continue to act to keep America safe and target foreign individuals and companies providing Iran’s military with weapons for use against U.S. forces,” Treasury Secretary Scott Bessent said in a statement.
The Trump administration has been looking for ways to squeeze Iran’s economy and pressure the Iranian government to reopen the Strait of Hormuz, a conduit for the flow of global oil. Oil tankers have had sporadic access to the critical waterway since the war started earlier this year, and the United States and Iran have been fighting over who should control it.
U.S. warships that have been trying to transit the strait have been attacked by Iranian forces. The United States on Friday fired on and disabled two Iranian-flagged oil tankers as they tried to reach an Iranian port.
The Treasury Department has also imposed sanctions on the Chinese “teapot” refineries this month. The independent refineries are major purchasers of Iranian oil. But China invoked a domestic policy ordering its companies to disregard the sanctions.
Mr. Bessent said earlier this week that he expected Mr. Trump to urge Mr. Xi to use the country’s leverage over Iran to pressure it to allow oil cargo to travel.
“Let’s see if China — let’s see them step up with some diplomacy and get the Iranians to open the strait,” Mr. Bessent told Fox News on Monday.
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