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
How ‘The View’ Landed at the Center of a Free Speech Battle
President Trump’s wide-ranging campaign to punish his perceived media critics has come for newspapers like The Wall Street Journal, The Des Moines Register and The New York Times; broadcast outlets like the BBC, NBC News and CBS News; and the late-night hosts Jimmy Kimmel and Stephen Colbert.
But now it is bearing down on a new opponent, one that remains politically potent and has a storied place in Mr. Trump’s oeuvre of media grudge matches — the long-running ABC daytime talk show, “The View.”
The Federal Communications Commission has been quietly investigating the program for months, looking into whether “The View” violated old federal rules requiring equal airtime to rival political candidates. The inquiry could also feed into the agency’s wider review of whether ABC should be allowed to continue to own some of the country’s most important local television stations.
The clash between ABC and the Trump administration could lead to a protracted, high-stakes legal battle over free expression. The network asserts that the F.C.C. action could have “a chilling effect on First Amendment-protected free speech on the eve of the 2026 elections” and affect which political guests — if any — talk shows will book.
The central role of “The View” is testament to the enduring influence of an old-fashioned broadcast television program that the ABC anchor Barbara Walters started 29 years ago, describing it “as a kaffeeklatsch with more caffeine.” People in both parties say the show continues to hold significant political power — even as streaming, podcasts and social media take up more attention.
“The View” draws 2.7 million viewers a day, more or less the audience it has had for a decade, according to Nielsen.
“It would be easy for our side to say, ‘Who watches that junk?’” said Tim Graham, a senior leader of the Media Research Center, a conservative group that has long been critical of the show. “But the answer is: Many people.”
Representatives for “The View” declined to comment, or to set up interviews with the hosts or anyone involved in the production.
Ms. Walters’s intention, as she said on the premiere episode in 1997, was to make the show destination viewing for a broad swath of women “of different generations, backgrounds and views.” The show’s panel has long included a conservative presence to balance the progressivism of its longstanding hosts Joy Behar and Whoopi Goldberg.
Mr. Trump, who was good friends with Ms. Walters, used to be a regular guest, once seeing the show as a great platform to promote himself, his business and his family. During a March 2006 appearance, Mr. Trump, sitting next to Ivanka Trump, notoriously mused, “If Ivanka weren’t my daughter, perhaps I’d be dating her.” (“Who are you, Woody Allen?” Ms. Behar blurted, sending Mr. Trump into a fit of laughter.)
Weeks later, Melania Trump gave the show her first interview after the birth of her son, Barron, revealing details about the delivery (“very, very easy”) and informing viewers that Mr. Trump had elected to stay out of the delivery room. Sometimes Mr. and Mrs. Trump even appeared together: In 2010, they made a joint appearance when Mrs. Trump promoted her QVC jewelry line.
But “The View” also set the scene for a foundational Trump feud — with the former host Rosie O’Donnell, starting in 2006. She called him a “snake-oil salesman”; he called her “a slob” and worse.
The final break in the relationship between the show and Mr. Trump came shortly after he entered politics. He clashed with Ms. Goldberg over his description of Mexicans as “rapists” in 2015, and he declined invitations from “The View” thereafter. He made 18 appearances in all.
The hosts became more critical of Mr. Trump over the past decade, and he attacked them back. The two Republicans on the panel — a first-term Trump spokeswoman, Alyssa Farah Griffin, and the longtime strategist Ana Navarro — are frequent Trump critics. And the anti-Trump critics are even tougher.
“It is unbelievable to me,” Sunny Hostin, a host, said this week, “that there are still people — despite the fact that they don’t have health care, despite the fact that the Department of Education has been gutted, despite the fact that they can’t afford to buy eggs — they are still with their guy.”
Conservatives accuse the show of interviewing mostly Democrats. This spring, the Media Research Center released a report titled, “The View Kicks Off Midterm Year With 27 Liberal Guests to 1 Republican.” (The study included celebrities in its tally.)
In its filing with the F.C.C., ABC noted that guest appearances did not reflect the full range of invitations. The network said the show had invited numerous Trump allies over the past two seasons, including Vice President JD Vance, Health Secretary Robert F. Kennedy Jr., Senator Lindsey Graham, Elon Musk and Secretary of State Marco Rubio — all of whom declined.
ABC’s lawyers said bookings were “based on newsworthiness, anticipated audience interest and their potential to ‘make news’ on the show.”
The administration has escalated its attacks over the past year. In July, it released a statement rooting for the show’s cancellation, after Ms. Behar compared Mr. Trump unfavorably with former President Barack Obama.
The seriousness of the F.C.C.’s inquiry into “The View” came to light when ABC responded forcefully to it this week. The agency is looking into whether the show was improperly operating outside longstanding broadcast rules requiring entertainment programs to provide equal airtime to candidates for the same office.
ABC’s lawyers noted that “The View” had received a news exemption from the agency in 2002 and that the exemption had not been challenged in the 24 years since.
Their response, which became public on Friday, accused the F.C.C. of violating the network’s First Amendment rights and indicated that they were prepared to take the case as far as the Supreme Court.
The network maintains that the mix of its guests should not be the government’s concern. “Of course, government officials are free to express their own views about ‘The View,’” ABC’s lawyers said in the filing. “But they cannot utilize the coercive powers of the state to punish viewpoints with which they disagree.”
The show has long been under a political microscope, not only because of what its hosts say but also because of the makeup of its audience.
The two highest-rated media markets for “The View,” according to Nielsen, are Philadelphia and the Flint-Saginaw-Bay City market in Michigan’s industrial corridor — both in swing states. The show also draws strong audiences in Pittsburgh, Atlanta, Milwaukee, Chicago and New York, Nielsen said, as well as in West Palm Beach, Fla.; Kansas City, Mo.; and Hartford, Conn.
That audience is made up of a prime voting demographic; two-thirds of its viewers are 65 or older, and nearly 90 percent are over the age of 50. Seventy percent are women. And 60 percent of its viewers are white and a quarter are Black, according to Nielsen.
“Women are one of the most important swing segments of the electorate,” said Daniel Suhr of the Center for American Rights, the conservative legal group that in March urged the F.C.C. to deny “The View” an exemption from the equal-airtime rules as a “bona fide” news program.
Having hosts who “constantly bash the president and the party” on a show that draws such swing voters, Mr. Suhr said, “has a real effect on our politics.”
Lis Smith, a Democratic strategist who has long seen “The View” as an important stop on any major candidate’s campaign schedule, said she thought conservatives were mainly picking on the show to whip up the faithful against a favorite media target. But, she added, “The View” does have its uses for Democrats.
“They reach a large audience of women, and Democrats need women to turn out to vote to win,” she said.
Business
Mattel investor campaigns to take the company private
A large investor in Mattel is asking the toy maker to sell itself to a big investor and take its shares off the stock market.
Southeastern Asset Management, which oversees 4% of Mattel’s stock, said in a letter released Thursday that the company would be better off if owned by a private equity firm, a toy competitor or a media company.
Mattel stock price was $15.41 as of Friday morning, up 2% from closing on Thursday. Its shares have fallen more than 20% this year.
Southeastern said Mattel’s current strategy would make shareholders wait too long for the company’s stock price to reach $30.
“We do not want to wait longer for that to be realized,” Southeastern said in the letter, addressed to Mattel Chief Executive Ynon Kreiz. “We would prefer you lead the effort to explore strategic alternatives given your industry knowledge and relationships.”
Mattel said in a release Thursday that it appreciates and will consider the perspectives shared by Southeastern and other shareholders. The company said it will maintain its focus on squeezing more profit from the many famous toys and other intellectual properties it controls.
“Our Board of Directors and management team are committed to acting in the best interests of all Mattel shareholders,” the company said in the release.
Southeastern sent the open letter to Mattel’s board and other shareholders on Thursday. It was originally sent to Kreiz in mid-March, shortly before the company announced it was laying off 65 employees.
Mattel has laid off hundreds of employees in the past year and a half.
The company’s shares and profit took a dip after it announced weak holiday sales in 2025, in part due to disappointing Barbie sales.
Last year, its net sales were about $5.3 billion, down 1% from the year before.
Southeastern suggested three potential buyers.
Private equity firms, which have expressed interest in Mattel for years, could help provide financial stability, the shareholder said. If the company delisted, it wouldn’t have to worry about quarterly reports or annual expectations, Southeastern said.
Another toy company could also be a potential buyer, the shareholder said, noting that Mattel and Hasbro have been in talks for years.
“We believe synergies between the two companies would be material, creating a stronger player in a global industry,” Southeastern said.
Mattel also has valuable intellectual property that could interest large media companies, Southeastern said.
The three buyer options aren’t mutually exclusive and could be combined, the shareholder said.
“We are grateful for your leadership that stabilized the business during a difficult period,” Southeastern said in the letter. “We believe that now is the time for the company to explore strategic alternatives.”
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.”
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