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Trump’s promise of a US manufacturing renaissance leaves experts scratching their heads

by Evelyn Reynolds 18 August 2025, 09:00

Donald Trump’s hugely disruptive trade war is setting the stage for a manufacturing renaissance in the US, administration officials say. Outside the White House, many economists are skeptical.Global trade experts point to many reasons they believe the president’s tariffs will fail to bring about a major resurgence of manufacturing, among them: Trump’s erratic, constantly changing policies, his unfocused, across-the-board tariffs, and his replacing Joe Biden’s carrot-and-sticks approach to brandish sticks at the world.“I think [Trump’s tariffs] will reduce the competitiveness of US manufacturing, and will reduce manufacturing employment,” said Michael Strain, an economist at the conservative American Enterprise Institute (AEI). “They’re raising the costs of production to US manufacturing companies, and that makes manufacturers less competitive. There will be some winners and some losers, but the losers will outnumber the winners.”‘Trump keeps changing his mind’The president and his aides insist that higher tariffs on more than 100 countries – making goods imported from overseas more expensive – will spur domestic manufacturing. “The ‘Made in USA’ label is set to resume its global dominance under President Trump,” White House spokesperson Kush Desai claimed recently.But few economists see that happening. Ann E Harrison, an economics professor and former dean of the Haas School of Business at the University of California, Berkeley, said the erratic, on-again-off-again rollout of Trump’s tariffs has already gone far to doom the president’s hopes of inspiring a huge wave of manufacturing investment.“For the policy to be successful, it has to be consistent over a long period,” she told the Guardian. “People need to believe it’s going to last. Some factories take five years to plan and build. You’re talking a long-term play. But Trump keeps changing his mind. Even over the last six months, we’ve had very little consistency.“The other problem is that he’s old, and no one is sure he’s going to be around that long. These policies need to be consistent, and that’s not happening.”Economists point to another question mark that is causing corporate executives to think twice about building factories in the US. In May, the US Court of International Trade ruled that Trump’s blanket tariffs are illegal – a decision that is under appeal.Strain, at the AEI, said: “When you add into the equation the erratic nature of president Trump’s tariff regime, when you add the question of its questionable illegality, when you add that none of this is going through Congress, when you add that even when the US secures a ‘deal’ with another country, it’s not really a deal, there are major outstanding questions.”France doesn’t think its alcohol exports will be hit by tariffs as part of the European Union’s agreement to pay 15% tariffs, noted Strain. “That’s a big question mark that would never go unresolved in any regular, traditional trade deal,” he said. “That’s all part of the massive uncertainty we’re seeing.”The Biden administration used deliberate industrial policies to boost several strategic industries, most notably semiconductors and electric vehicles, including a 100% tariff on EVs from China and 25% on lithium-ion EV batteries, as well as subsidies to buy EVs and build EV-related factories. The policies resulted in a surge in new factories to build semiconductors, electric vehicles and EV components.Biden “said we care about semiconductors and national security, and what he’d try to do is get actual investors to invest in it”, said Dani Rodrik, an economist specializing in trade and industrial policy at Harvard’s Kennedy School of Government, who predicted Trump’s blanket tariffs will prove less successful in inspiring investment. “If you really want to increase manufacturing and employment in the US, you’d go about it in a very different way, through industrial policies that first identify specific segments you care about.”When China, Japan and South Korea adopted policies to build their electronics and auto industries, they insisted that the corporations that benefited from those policies compete with foreign companies to help make them globally competitive. “For industrial policy to succeed, it has to work to promote more competition,” said Harrison, at the Haas School of Business. “The problem with tariffs is they do just the opposite. They restrict competition.”Susan Helper, an economist at Case Western Reserve University who worked on industrial policy in the Biden and Obama administrations, said Trump’s tariff rates on some countries and markets – like 15% on the EU, Japan and South Korea – are too low to spur much investment, questioning why a company would build a major factory to circumvent such a duty.“A [semiconductor fabrication] plant, that’s a billion dollars. You need to get a payback and that takes several years,” Helper said. “If the tariffs are 145% [as Trump once imposed on China], that’s attractive for building a plant. But if they fall back to 15%, then it’s really hard to get a return on your investment.”The administration boasts that several of its trade deals have specific commitments to spur huge manufacturing investment. It says its deal with the EU includes a $600bn investment pledge; with Japan, a $550bn investment pledge; and with South Korea, $350bn. Jamieson Greer, US trade representative, wrote in the New York Times: “These investments – 10 times larger than the inflation-adjusted value of the Marshall Plan that rebuilt Europe after World War II – will accelerate US reindustrialization.”But these supposed pledges have attracted skepticism. After all, this president claimed during his first term that “the eighth wonder of the world” was being built in Wisconsin after FoxConn pledged to invest $10bn and create 13,000 jobs at an electronics plant. But that promise fell embarrassingly short.Many economists question whether the EU, Japan or South Korea can force corporations to make a specific investment in the US. Indeed, an EU Commission spokesperson said the bloc had expressed “aggregate intentions” that are “in no way” binding. “These large numbers really sound like window dressing, some round numbers they’re throwing around,” said Harvard’s Rodrik.“Some include investments you were already going to make, and some are aspirational,” said Todd Tucker, a trade and industrial policy expert at the Roosevelt Institute. “Once we’ve had time to evaluate whether the investment happens or not, Trump will be on to the next press cycle.”In recent years, manufacturing employment has been trending downward – not just in advanced industrial countries, but also in China, as new technologies enable factories to churn out goods more efficiently, with fewer workers. That trend raises questions whether Trump’s trade policies can increase factory jobs in the US.‘An island of backwardness’The US is past its manufacturing peak, Berkeley’s Harrison noted. “That was actually during World War Two, and it has been declining ever since,” she said. “I don’t see manufacturing’s share of the economy or manufacturing employment reversing.”She added: “If the question is, are you going to bring about a major resurgence in manufacturing employment, it’s not just unlikely, the answer is no. More and more manufacturing is robot-driven and not done by people.”Auto industry officials in the US complain that Trump’s 50% tariffs on steel and aluminum have increased their costs and injured their competitiveness. “In manufacturing, for every one job in steel production, there are 80 jobs that use steel,” the AEI’s Strain said. “So putting tariffs on imported steel might help that one guy, but you’re hurting the other 80 people.”A study by Federal Reserve economists found that the tariffs Trump imposed in his first term were actually associated with a reduction in factory jobs nationwide, because increased input costs and retaliatory tariffs outweighed import protection from tariffs.Helper, at Case Western Reserve University, warned that the US auto industry will be hurt badly by Trump’s mishmash of tariffs coupled with his slashing subsidies for EVs. “Trump’s policies are setting the auto industry up to be an island of backwardness,” she said. “The rest of the world is going to be making EVs, but we’re going to be focused on making really high profits on pickup trucks that will be bad for the climate and won’t sell in the rest of the world.“We’ll have a great, competitive position in large, gas-guzzling pickups, but we’ll fall further behind in EVs. That’s a very risky and dangerous path.” More

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Trump revokes Biden order promoting competition in the US economy
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Donald Trump on Wednesday revoked a 2021 executive order on promoting competition in the US economy issued by Joe Biden, the White House said.The move by the Republican US president further unwinds a signature initiative by his predecessor, a Democrat, to crack down on anti-competitive practices in sectors from agriculture to drugs and labor.The justice department welcomed Trump’s revocation of the order, saying it was pursuing an “America first antitrust” approach focused on free markets instead of what it called the “overly prescriptive and burdensome approach” of the Biden administration.It said it was also making progress on streamlining the Hart-Scott-Rodino Act (HSR) review process of mergers and reinstating more frequent use of targeted and well-crafted consent decrees.Biden signed a sweeping executive order in July 2021 to promote more competition in the US economy as part of a broad push to rein in what his administration described as a pattern of corporate abuses, ranging from excessive airline fees to large mergers that raised costs for consumers.skip past newsletter promotionafter newsletter promotionThe initiative, which was very popular with Americans, was championed by top Biden economic officials, many of whom had previously worked for or with the senator Elizabeth Warren, who played a key role in creating the Consumer Financial Protection Bureau under Barack Obama.Trump has attacked that agency since taking office, announcing plans to shrink its workforce by 90%.Those moves have cost Americans at least $18bn in higher fees and lost compensation for consumers allegedly cheated by major companies, according to an analysis released in June by the Student Borrower Protection Center and the Consumer Federation of America.Biden’s order said it aimed to “enforce the antitrust laws to combat the excessive concentration of industry, the abuses of market power, and the harmful effects of monopoly and monopsony”, focused on areas such as labor and healthcare. More
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View image in fullscreenBeing sick is a costly business for Bill Thompson, who worked in the fast-food industry in Independence, Missouri, for more than 30 years, and recently worked at Guitar Center until early July, when he was laid off.“As an older worker, I have health issues from working on my feet and with my hands for many years with no breaks for eight to 10 hours a day. I have done it for 38 years now, living paycheck to paycheck,” 54-year-old Thompson said, noting in Missouri workers are not mandated breaks of any kind during work.So when Republicans in Missouri repealed a paid sick leave mandate that the state’s voters approved by 58% after an aggressive lobbying campaign by the Missouri chamber of commerce and industry and other business industry groups, he said, “It was a literal gut punch.“If you’re not paid for missed days, it literally means food off your table, bills unpaid, rent unpaid, then that can lead towards homelessness. Some of the people I know in the movement are currently homeless but still are fighting back against this,” said Thompson. “I was very disappointed and disgusted that hard-working taxpayers this would have helped matter so little to them.” Thompson helped gather signatures for the paid-sick-leave and minimum-wage-increase ballot initiative because of his experiences of working through illnesses and losing income when he had to take time off to care for his ailing mother.Workers and labor groups in Missouri strongly criticized the repeal, arguing elected officials chose to side with “greed” over workers, as efforts to re-enact the law and prevent legislators from overturning voter ballot initiatives in Missouri are under way.The state’s house and senate passed HB567, signed into law on 10 July by the governor, Mike Kehoe, which repealed the paid sick leave mandate and annual minimum wage increases tied to the consumer price index beyond the increase to $15 an hour in 2016 that voters also approved.Voters in Nebraska, by more than 74.5%, and Alaska, with nearly 57% approval, also passed paid sick leave mandates in November 2024. As of December 2024, 18 states and Washington DC had enacted paid sick leave laws covering private employers.“They chose to side with greed over the health of Missouri workers,” said Richard Eiker, a McDonald’s worker in the Kansas City, Missouri, area for more than 20 years who supported the paid sick leave mandate. “But we’re not going anywhere, we’re going to stay in this and keep fighting until we win better treatment for Missouri workers.”Eiker said the issue of paid sick leave was a public health issue, especially for food service workers, and that he has often had to go into work sick or injured because he couldn’t afford to take the unpaid time off from work.View image in fullscreen“Whether it’s been an injury I’ve sustained at work or been an illness I’ve had, I’ve often found myself having to go into work regardless of whether I recovered fully or not, simply because I can’t afford to take the time off of work in order to take care of my bills and everything,” Eiker said.For 10 years, Eiker was the primary caregiver for his mother and he recounted that on a day that she wasn’t feeling well, he had to go to work. He came home to find her unconscious and unresponsive after she suffered a stroke.“At the time I was caring for her, her expenses, my expenses, and we were trying to keep the apartment we were in, all these pressures on me, if I had paid sick time off and I had been able to stay with her that day, I wonder if things could have been different,” Eiker added.Though voters all approved paid sick leave in states where Republicans have dominated in statewide elections, only Republicans in Missouri have pushed to entirely repeal paid sick leave approved by voters.The repeal law in Missouri goes into effect on 28 August, just weeks after the paid sick leave mandate took effect in May 2025.Proponents of paid sick leave criticized the repeal given the strong support for it and that negotiations were under way to reach a compromise.“I think we were 95% of the way on a negotiated agreement, one that I wouldn’t have been happy with, because it would have been different than what the voters had passed. But at the end of the day, elected officials, I think, weren’t so much concerned with paid sick days. I think they were more concerned with the idea that working people have power over our lives,” said Richard von Glahn, policy director at Missouri Jobs With Justice, a worker advocacy group based in St Louis that worked on the paid sick leave ballot initiative.“I think that was the more important issue for the chamber of commerce and elected officials to try to push back on, because I think they’re really terrified that working people have a sense of our own agency in a state like this.”He argued the paid sick leave campaign to gather signatures and speak with voters “were easy because paid sick days are such common sense to most people”.“Even on a day where Missourians sort of overwhelmingly voted for Donald Trump, Josh Hawley and Governor Kehoe, they also overwhelmingly voted for an increase in paid sick days,” Von Glahn said. “Any notion that there’s really a Republican party, that is a party of workers, Missouri shows just how much of a stranglehold corporate interests still have on the Republican establishment. I think that’s a cautionary tale for working-class people.”Groups in Missouri are weighing a new ballot initiative to enshrine the law in the state’s constitution, and a 2026 ballot initiative has been filed to require at least 80% of the state legislature to repeal all or parts of a voter-approved measure.The paid sick leave mandate was repealed as the Missouri chamber of commerce and industry called the bill to do so its “top priority” during the 2025 legislative session, though repealing the law through the legislature was initially seen as challenging given the strong public support for it.“Some legislators may look at this and go, we don’t want to goof with it at all because the percentage was so high in support of it,” Ray McCarty, CEO of Associated Industries of Missouri, said in an interview with the Missouri Independent in November 2024.Opponents of the paid sick leave bill claimed it was “a job killer”, a common refrain in opposition to paid sick leave policies for years, though data and research have shown paid sick leave improves workforce participation and lowers employee turnover, especially of women, in addition to adding health benefits.The authors of the bill to repeal the paid sick leave mandate in the state house and senate did not respond to multiple requests for comment.View image in fullscreenIn an email, a spokesperson for Kehoe claimed “out of state special interests” played a significant role in passing the voter-approved Proposition A, though they did not name who they believe those were.“HB567 protects families, job creators, and small businesses by rolling back government overreach, cutting red tape, and eliminating costly mandates,” the spokesperson added. “This law promotes freedom for workers to find jobs that fit their needs and for businesses to offer the benefits that work best for them – ensuring Missouri’s future is driven by its own people and economy.”Thompson could not disagree more. In 2020, when he worked at Burger King, he said, he had to take eight weeks off work, all unpaid, because his mother’s cancer had reached an inoperable stage and she was put on palliative care through hospice.“I moved in with her and cared for her, cooked meals, made sure she took her meds,” explained Thompson. “I had to go to food pantries and rely on the charity of family and neighbors to feed us. She was in hospice care for eight weeks and passed away. I wasn’t paid for that time away from work. No one should go through this working in the richest country in the world.” More
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Trump nominates Heritage Foundation economist as labor statistics chief
by Evelyn Reynolds 11 August 2025, 23:54
Donald Trump has announced he is nominating EJ Antoni, the chief economist at the conservative Heritage Foundation, as the next commissioner of the Bureau of Labor Statistics.“Our Economy is booming, and E.J. will ensure that the Numbers released are HONEST and ACCURATE,” Trump said in a post on Truth Social.The nomination comes after Trump fired the BLS commissioner, Erika McEntarfer, earlier this month following the release of a weak jobs report which he claimed, without evidence, had been “rigged”.Antoni, a longtime critic of the agency, had previously voiced concerns about revisions to the BLS jobs data.“There are better ways to collect, process, and disseminate data – that is the task for the next BLS commissioner, and only consistent delivery of accurate data in a timely manner will rebuild the trust that has been lost over the last several years,” Antoni posted on X earlier this month.The Senate will have to confirm his nomination to lead the BLS, an independent agency under the labor department. The Wall Street Journal reported on Sunday that former White House adviser and rightwing provocateur Steve Bannon had advocated for Antoni’s nomination.In a statement on X, labor secretary Lori Chavez-DeRemer said Antoni would “provide the American people with fair and accurate economic data they can rely on”.The president’s shock firing of McEntarfer alarmed economists and statisticians – as well as some senior Republican lawmakers –who feared the move would undermine the credibility of the agency’s economic data – long seen as a gold standard. More
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‘Unsettling and unprecedented’: Washington DC mayor responds to Trump’s federal takeover of city police – live
by Evelyn Reynolds 11 August 2025, 21:31
Bowser says that her office plans to follow the law, and cooperate with the federal government. The DC Home Rule Act requires the mayor to “provide the services” of the police department in the case of a declared emergency.Although, she notes that there is a “question about the subjectivity” of the declaration – referring to the recorded evidence of a dropping violent crime rate in DC. “While this action today is unsettling and unprecedented, I can’t say that, given some of the rhetoric of the past, that we’re totally surprised,” she adds.The mayor also says that she’s requested a meeting with attorney general Pam Bondi, who will temporarily oversee the Metropolitan police department.Bowser notes that all officers should be clearly identifiable: “a uniform, a badge, a jacket, so that people know that they are law enforcement”.The DC Council, the chief policy-making authority for the district, issued a statement calling Trump’s move to federalize the Metropolitan Police Department “unwarranted” and “a manufactured intrusion on local authority.”“Violent crime in the District is at the lowest rates we’ve seen in 30 years,” the statement said.“Federalizing the Metropolitan Police Department is unwarranted because there is no Federal emergency. Further, the National Guard has no public safety training or knowledge of local laws. The Guard’s role does not include investigating or solving crimes in the District. Calling out the National Guard is an unnecessary deployment with no real mission,” added the council.President Donald Trump said on Monday he met with Intel Corp’s chief executive Lip-Bu Tan, along with commerce secretary Howard Lutnick and treasury secretary Scott Bessent.“The meeting was a very interesting one,” Trump said on Truth Social. “Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week.”Trump’s remarks come just days after he called on the chief executive to resign, alleging Tan had ties to the Chinese Communist party.Trump plans to impose a 100% tariff on imported computer chips, a move experts warn could lead companies to pull back on production or raise prices, but could favor Intel as a US-based semiconductor firm.Tan had invested in hundreds of Chinese firms, some of which were linked to the Chinese military, Reuters reported in April.Over the weekend, more details emerged about the fatal attack on the US Centers for Disease Control and Prevention (CDC) that took place on Friday, killing a police officer. In case you missed it:
We reported that the shooter had blamed a Covid-19 vaccine for making him depressed and suicidal. The suspect’s father contacted police and said his son was upset about the death of his dog, and had also become fixated on the Covid-19 vaccine.
A union representing CDC employees demanded that the federal government condemn vaccine misinformation after it was known that the shooter blamed the Covid-19 vaccine. The CDC workers’ union said the deadly violence was not random and “compounds months of mistreatment, neglect, and vilification that CDC staff have endured”. It said vaccine misinformation had put scientists at risk.
The Georgia Bureau of Investigation named Patrick Joseph White as the shooter. After firing shots at the CDC campus near Emory University on Friday, White was found dead on the second floor of the pharmacy building.
Andriy Yermak, the chief of staff to Ukrainian president Volodymyr Zelenskyy, has recently discussed diplomatic efforts to end the war in Ukraine with secretary of state Marco Rubio.On Monday, Yermak said in a post on X that Rubio was briefed “on active communications with our partners,” including a meeting with US vice-president JD Vance.“We coordinated our positions ahead of important diplomatic steps planned for this week,” Yermak said in the post. “For Ukraine, the priority is a just and lasting peace, which requires an unconditional ceasefire as a prerequisite for substantive negotiations, as well as increased pressure on Russia to take real steps in this direction.”The post comes after UK foreign secretary David Lammy and Vance held a meeting with Ukrainian and European partners in Britain over the weekend, where leaders discussed the drive for peace in Ukraine.Donald Trump and Vladimir Putin are slated to meet on Friday in Alaska to discuss ways forward to end the years-long war.CNN is reporting that national guard troops in the nation’s capital deployed by the Trump administration are not expected to openly carry rifles.An army official told the news outlet that troops will most likely have weapons nearby, like inside their trucks, if they absolutely need to access them for purposes of self-defense.Still, the official said it is always a possibility that troops could be ordered to operate differently.Gavin Newsom tried to play nice with Maga. But then in June, Donald Trump sent the national guard to LA, to quell immigration protests following Ice raids on the city, and the California governor went scorched-earth on the new administration.Since then Newsom’s social media exchanges with Trump and his White House have taunted and trolled, factchecked and alarm-sounded.Following Trump’s announcement on Monday that he’s activating the National Guard in the nation’s capital and taking over Washington’s police department, Newsom’s social media team set to work.Newsom warned in one post that other cities were next (and reminded followers that he had predicted this might happen back in June.)His press office grabbed a screenshot of the Trump officials looking bewildered.The team continued its full-frontal social assault, peppering Trump with tweets on the DC takeover, tariffs and his partisan redistricting plan. They deployed a Taco tariffs meme (Trump always chickens out) in response to the news that Trump and China extended their truce for another 90 days. They questioned how Attorney General Pam Bondi, who they said “couldn’t find the Epstein files” might fare as the head of the newly installed DC police department.They even fired off a Trump-style all-caps missive warning that California would redistrict if he did not call on Texas to stand down.
Donald Trump is launching a federal takeover of DC Metropolitan police department (MPD), and deploying 800 national guardsmen to assist local law enforcement. He declared crime in the city “public safety emergency” in a press conference earlier, invoking a section of the DC Home Rule Act which places MPD under federal control. It’s expected to last 30 days, according to the White House.
DC’s mayor Muriel Bowser said today that her office plans to comply and cooperate with federal government, but noted there are questions about the “subjectivity” of the emergency declaration. DC has seen a notable drop in violent crime, and even saw a record 30-year low in 2024, according to the justice department.
Beyond Washington, Trump also previewed his Friday meeting with Vladimir Putin in Alaska, claiming he will know “probably in the first two minutes” whether a peace deal can be made. Trump confirmed that while Volodymyr Zelenskyy wouldn’t be a part of the summit, he would call him first as soon as he saw a “fair deal” for a ceasefire emerge. He also didn’t rule out the possibility of a future trading relationship with Russia.
And while the ongoing redistricting battle across the US wasn’t the main story of the day, California governor Gavin Newsom said that he will be “forced to lead an effort to redraw the maps in California to offset the rigging of maps in red states” in a letter to Donald Trump. Newsom said he would be left with no choice if the president can’t get governor Greg Abbott to drop his push to redraw Texas’ congressional maps mid-decade.
In a statement, Democratic congressman Hakeem Jeffries of New York, who serves as the House minority leader, said that the president’s plan to federalise the DC police department and deploy the National Guard had “has no basis in law and will put the safety of the people of our Nation’s capital in danger”.He added:
The violent crime rate in Washington DC is at a 30-year low. Donald Trump doesn’t care about public safety. On his first day in office, he pardoned hundreds of violent felons – many of whom brazenly assaulted law enforcement officers on January 6. We stand with the residents of the District of Columbia and reject this unjustified power grab as illegitimate.
On the president’s statements earlier that he would be comfortable bringing the military into DC if he deems it necessary, Muriel Bowser says that “we don’t believe it’s legal to use the American military against American citizens on American soil”.Trump did, however, bring in out-of-state, unfederalised national guard troops during the Black Lives Matter protests in 2020.Bowser does note that she suspected that the national guard would be deployed, but had no prior knowledge of the federal takeover of the Metropolitan police department.Donald Trump has once again delayed implementing sweeping tariffs on China, announcing another 90-day pause just hours before the last agreement between the world’s two largest economies was due to expire.On Monday, Trump signed an executive order extending the deadline for higher tariffs on China until 9 November, officials confirmed to Reuters.Chinese officials said earlier in the day they hoped the United States would strive for “positive” trade outcomes on Monday, as the 90-day detente reached between the two countries in May was due to expire.“We hope that the US will work with China to follow the important consensus reached during the phone call between the two heads of state … and strive for positive outcomes on the basis of equality, respect and mutual benefit,” a foreign ministry spokesman, Lin Jian, said in a statement.Bowser says that her office plans to follow the law, and cooperate with the federal government. The DC Home Rule Act requires the mayor to “provide the services” of the police department in the case of a declared emergency.Although, she notes that there is a “question about the subjectivity” of the declaration – referring to the recorded evidence of a dropping violent crime rate in DC. “While this action today is unsettling and unprecedented, I can’t say that, given some of the rhetoric of the past, that we’re totally surprised,” she adds.The mayor also says that she’s requested a meeting with attorney general Pam Bondi, who will temporarily oversee the Metropolitan police department.Bowser notes that all officers should be clearly identifiable: “a uniform, a badge, a jacket, so that people know that they are law enforcement”.The Democratic mayor of Washington DC, Muriel Bowser, is now addressing the president’s actions today.“I’ve said before, and I’ll repeat, that I believe that the president’s view of DC is shaped by his Covid-era experience during his first term,” she says. “It is true that those were more challenging times related to some issues. It is also true that we experienced a crime spike post-Covid, but we worked quickly to put laws in place and tactics that got violent offenders off our streets, and gave our police officers more tools.”In a letter to the president, California governor Gavin Newsom has asked Donald Trump to call on Texas governor Greg Abbott – and other red states who are acting under the president’s direction – to end the ongoing efforts to redraw their states’ congressional maps mid-decade.This comes as the redistricting battle in Texas enters its second week. State Democrats broke quorum again on Friday in protest of a gerrymandered GOP-drawn map – that could lead Republicans to pick up five extra seats in the US House ahead of the 2026 midterms.In his letter Newsom said that he will be “forced to lead an effort to redraw the maps in California to offset the rigging of maps in red states”, if Trump does not stand down. “You are playing with fire, risking the destabilization of our democracy, while knowing that California any gains you hope to make,” he wrote.We’re seeing a number of reactions from DC city leaders on the president’s move to deploy the National Guard to the city, and federal takeover of the Metropolitan police department (MPD).DC’s attorney general Brian Schwalb wrote in a post on X that “the administration’s actions are unprecedented, unnecessary, and unlawful”. He added that “Violent crime in DC reached historic 30-year lows last year, and is down another 26% so far this year”.Similarly, DC congressional delegate Eleanor Holmes Norton said that the president’s actions are “a counterproductive use of DC’s resources to use for his own purposes”.By contrast, the DC Police Union, which represents more than 3,000 officers in the MPD, said in statement that it “acknowledges and supports” Donald Trump’s decision to federalise the department. “The Union agrees that crime is spiraling out of control, and immediate action is necessary to restore public safety”. The statement did underscore that the measure should be temporary, with “the ultimate goal of empowering a fully staffed and supported MPD to protect our city effectively”.The US conference of mayors has issued a statement that pushes back against the administration’s deployment of DC national guard troops.
Crime rates are plummeting in cities across the United States, including in Washington, D.C., as documented in the FBI’s national crime rate report released just last week…America’s mayors never see takeovers by other levels of government as a tactic that has any track record of producing results. Local control is always best.
But the conference’s president, Republican David Holt, mayor of Oklahoma City, did add that “we do see great value in partnership between levels of government, and we can imagine value in such partnerships in our nation’s capital”, in his statement.A White House official confirms to the Guardian that the federal takeover of the DC Metropolitan police department is expected to be in effect for 30 days.The official added that this would be “subject to change” consistent with the taskforce’s operations.Section 740 of the DC Home Rule Act stipulates that this would be the maximum length for a federal takeover, before requiring a joint resolution in Congress to extend the 30-day limit.A trade truce between the US and China was set to expire on Tuesday, threatening an escalation of economic tensions between the world’s two largest economies.Chinese officials said they hoped the United States would strive for “positive” trade outcomes on Monday, as the 90-day detente reached between the two countries in May was due to expire.“We hope that the US will work with China to follow the important consensus reached during the phone call between the two heads of state … and strive for positive outcomes on the basis of equality, respect and mutual benefit,” a foreign ministry spokesman, Lin Jian, said in a statement.Chinese and US officials said they expected the pause to be extended after the most recent round of trade talks held last month in Stockholm. Scott Bessent, the US treasury secretary, said last week the US had “the makings” of a trade deal with China and that he was optimistic about a path forward.Donald Trump has yet to confirm any extension to the pause. “We’ll see what happens,” he told reporters on Monday. “They’ve been dealing quite nicely — the relationship is very good with President Xi and myself.”Failure to reach a deal would have major consequences. Trump had threatened tariffs on China as high as 245% with China threatening retaliatory tariffs of 125%, setting off a trade war between the world’s largest economies.The New York Times is reporting that the federal takeover of the Metropolitan Police Department is intended to last for 30 days, citing a White House official.Here is the full text of Donald Trump’s presidential memorandum “Restoring Law and Order in the District of Columbia”.
Section 1. Background. As President of the United States and Commander in Chief of the District of Columbia National Guard, it is my solemn duty to protect law-abiding citizens from the destructive forces of criminal activity. That obligation applies with special force in our Nation’s capital, where, as Commander in Chief of the District of Columbia National Guard, I must also ensure that all citizens can avail themselves of the right to interact with their elected representatives, and that the Federal Government can properly function, without fear of being subjected to violent, menacing street crime.
The local government of the District of Columbia has lost control of public order and safety in the city, as evidenced by the two embassy staffers who were murdered in May, the Congressional intern who was fatally shot a short distance from the White House in June, and the Administration staffer who was mercilessly beaten by a violent mob days ago. Citizens, tourists, and staff alike are unable to live peacefully in the Nation’s capital, which is under siege from violent crime. It is a point of national disgrace that Washington, D.C., has a violent crime rate that is higher than some of the most dangerous places in the world. It is my duty to our citizens and Federal workers to secure the safety and the peaceful functioning of our Nation, the Federal Government, and our city.
Sec. 2. Mobilizing the District of Columbia National Guard. Pursuant to my authority under the Constitution and laws of the United States and the District of Columbia, I direct the Secretary of Defense to mobilize the District of Columbia National Guard and order members to active service, in such numbers as he deems necessary, to address the epidemic of crime in our Nation’s capital. The mobilization and duration of duty shall remain in effect until I determine that conditions of law and order have been restored in the District of Columbia. Further, I direct the Secretary of Defense to coordinate with State Governors and authorize the orders of any additional members of the National Guard to active service, as he deems necessary and appropriate, to augment this mission.
Sec. 3. General Provisions. This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
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Nvidia and AMD reportedly agree to pay 15% of China chip sale revenues to US
by Evelyn Reynolds 10 August 2025, 23:49
Nvidia and AMD have agreed to give the US government 15% of their revenues from chip sales in China, under an unprecedented arrangement to obtain export licenses for the semiconductors, the Financial Times reported on Sunday.The revenue share applies to Nvidia’s H20 chips and AMD’s MI308 chips, the report said, citing a US official, noting that the Trump administration had yet to determine how to use the money.The chipmakers agreed to the quid pro quo arrangement as a condition for obtaining export licenses for the Chinese market that were granted last week, according to the unnamed official.According to export control experts, no US company has ever agreed to pay a portion of their revenues to obtain export licenses, the newspaper reported. But Donald Trump has encouraged firms, and countries, to make investments in the US to, in his words, “buy down” the tariff rates he imposes.Nvidia follows rules the US government sets for its participation in worldwide markets, an Nvidia spokesperson told Reuters in an emailed statement. “While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide.”AMD did not immediately respond to a request for comment.The US commerce department started issuing licenses to Nvidia to export its H20 chips to China last week, removing a significant hurdle to the artificial intelligence bellwether’s access to a key market.The US in July reversed an April ban on the sale of the H20 chip to China. The company had tailored the microprocessor specially to the Chinese market to comply with the Biden-era AI chip export controls.Nvidia’s chips are a major driver of the AI boom, and in July the company became the first ever to have its market value surpass $4tn.Complications facing the company are not necessarily over, however, with growing scrutiny of Nvidia by Chinese authorities. Late last month China’s cyberspace watchdog summoned Nvidia to a meeting to discuss whether the chips had any “backdoor” security risks which would allow remote access or control. Nvidia said they did not.But Chinese state media has continued to raise concerns. In a commentary earlier this month, the People’s Daily said Nvidia must produce “convincing security proofs” to eliminate Chinese users’ worries over security risks in its chips and regain market trust. And On Sunday a state media account on Chinese social media platform WeChat said the H20 chips posed a security risk for China. The account, Yuyuan Tantian, claimed Nvidia chips could achieve functions including “remote shutdown” through a hardware “backdoor”. Nvidia has not responded.With Reuters More
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Democrats respond to FBI agreement to locate Texas lawmakers: ‘We will not be intimidated’ – live updates
by Evelyn Reynolds 7 August 2025, 21:32
Democrats have responded to the news earlier that the FBI has agreed to assist local law enforcement to track down Democratic lawmakers who left the state to break quorum in protest of the state’s GOP-drawn congressional map.It comes after Republican Senator John Cornyn’s statement earlier, praising FBI director Kash Patel for his support.Hakeem Jeffries lambasted the move in a post on X.“The Trump administration continues to weaponize law enforcement to target political adversaries,” the House minority leader wrote. “We will not be intimidated.”Meanwhile, Illinois governor JB Pritzker underscored on a podcast on Wednesday that Texas lawmakers hadn’t broken any laws. He also said that any arrests by FBI agents would be “unwelcome” in his state.“They’re grandstanding, there’s literally no federal law applicable to this situation,” he added.The US Air Force said it would deny all transgender service members who have served between 15 and 18 years the option to retire early and would instead separate them without retirement benefits, the AP reports.One Air Force sergeant said he was “betrayed and devastated” by the move.The move means that transgender service members will now be faced with the choice of either taking a lump-sum separation payment offered to junior troops or be removed from the service.An Air Force spokesperson told the AP that “although service members with 15 to 18 years of honorable service were permitted to apply for an exception to policy, none of the exceptions to policy were approved.”About a dozen service members had been “prematurely notified” that they would be able to retire before that decision was reversed, according to the spokesperson who spoke on condition of anonymity to discuss internal Air Force policy.A memo issued Monday announcing the new policy said that the choice to deny retirement benefits was made “after careful consideration of the individual applications.”Earlier, we reported that two senior FBI officials involved in a number of FBI investigations related to the president were fired. Now, senior politics reporter Chris Stein brings us more details:The Trump administration is forcing out a senior FBI official who resisted demands made earlier this year for the names of agents who investigated the January 6 insurrection, two people familiar with the matter said on Thursday.Brian Driscoll briefly served as acting FBI director in the first weeks of Donald Trump’s new term, and his final day at the bureau is Friday, the people told the Associated Press on condition of anonymity, as they were not authorized to discuss the move. Further ousters were possible.The FBI declined to comment to the Guardian.The New York Times further reported that the FBI was forcing out Walter Giardina, a special agent who worked on cases involving Trump as well as Peter Navarro, a top trade adviser to the president who was convicted of contempt of Congress.The ousters were the latest under the FBI director, Kash Patel, and his deputy, Dan Bongino, who had repeatedly alleged that the bureau had become politicized under Joe Biden. Numerous senior officials, including top agents in charge of big-city field offices, have been pushed out of their jobs, and some agents have been subjected to polygraph exams, moves that former officials say have roiled the workforce and contributed to angst.Here’s the full story:Donald Trump’s administration turned to the US supreme court in an effort to defend its aggressive immigration raids after a federal judge in Los Angeles blocked agents from profiling individuals based on race or language in pursuit of deportation targets.The justice department asked the supreme court in an emergency filing to lift the judge’s order temporarily barring agents from stopping or detaining people without “reasonable suspicion” that they are in the country illegally, by relying solely on their race or ethnicity, or if they speak Spanish or English with an accent.The move comes after a federal judge last month ordered the Trump administration to halt indiscriminate immigration stops and arrests in seven California counties, including Los Angeles.Donald Trump said Thursday that he would meet with Vladimir Putin even if the Russian president won’t meet with Volodymyr Zelenskyy.Trump, when asked by a reporter whether Putin would need to meet with the Ukrainian president to secure a meeting with the US, said: “No, he doesn’t. No.”His comments followed Putin’s remarks earlier in the day that he hoped to meet with Trump next week, possibly in the United Arab Emirates. But the White House was still working through the details of any potential meetings, press secretary Karoline Leavitt said.Donald Trump announced he will nominate the Council of Economic Advisers chair Stephen Miran to serve as a Federal Reserve governor.Miran would fill the position opened by Fed governor Adriana Kugler’s surprise resignation last week, as she returns to her tenured professorship at Georgetown University.The term expires on 31 January 2026 and is subject to approval by the Senate.Trump said the White House continues to search for someone to serve in the 14-year Fed Board seat that opens 1 February.Miran has advocated for a far-reaching overhaul of Fed governance that would include shortening board member terms, putting them under the clear control of the president and ending the “revolving door” between the executive branch and the Fed.Trump has unsuccessfully pushed the Fed to cut rates. Miran, if confirmed by the Senate, would have one of 12 votes on monetary policy at the Fed, which voted 9-2 last month to keep rates steady.Donald Trump and Stephen Moore, a fellow at the rightwing thinktank the Heritage Foundation, held an event at the White House on Thursday to show reporters “new numbers” that allege the Bureau of Labor Statistics overstated job creation during the first two years of the Biden administration.“I don’t think it’s an error,” Trump said during today’s event. “I think they did it purposely.”Moore said the data comes from “unpublished Census Bureau data”, and will supposedly be released sometime in the next six months.Moore is Trump’s former economic advisor and co-wrote the book Trumponomics: Inside the America First Plan to Revive Our Economy”, which praised the president’s economic plans. In 2019, Trump nominated Moore for a seat on the Federal Reserve board, but he withdrew amid scrutiny for his history of sexist comments and other scandals.Colleges and universities will be forced to disclose more student admissions data to prove that they are not implementing affirmative action policies, according to a directive sent by the White House on Thursday.The move comes as the Trump administration seeks to crack down on the use of race in the higher education application process. Ivy League universities, like Brown University, have reached settlements that require them to release information about applicants’ race.Colleges have been barred from considering race in admissions since 2023, when the supreme court overturned decades of precedent that allowed limited use of race as a factor. Trump’s directive would increase oversight of schools’ admissions processes.“Although the Supreme Court of the United States has definitively held that consideration of race in higher education admissions violates students’ civil rights,” the directive reads, “the persistent lack of available data – paired with the rampant use of ‘diversity statements’ and other overt and hidden racial proxies – continues to raise concerns about whether race is actually used in practice.”The directive was confirmed earlier today by White House press secretary Karoline Leavitt.
The president’s higher tariffs hit major US trading partners today. Trump and members of his cabinet declared it an economic victory, with commerce secretary Howard Lutnick estimating that the tariffs will lead to “$50bn a month” in revenue for the USand treasury secretary Scott Bessent saying a “manufacturing renaissance” was on the horizon in an interview with MSNBC. Countries feeling the hit, however, are now scrambling to respond.
Republican senator John Cornyn of Texas said today that the FBI had approved his request for the agency to help locate and arrest Democratic state lawmakers, who left the state last week to break quorum in protest over a GOP-drawn congressional map. “We cannot allow these rogue legislators to avoid their constitutional responsibilities,” Cornyn said in a statement.
In response, undeterred Democrats have fired back. “The Trump administration continues to weaponize law enforcement to target political adversaries,” House minority leader Hakeem Jeffries wrote on X. “We will not be intimidated.”
Meanwhile, on Truth Social, Donald Trump announced today that he’s ordered the commerce department to conduct a new census that would exclude undocumented immigrants from the official count. “People who are in our country illegally will not be counted,” the president said. It’s important to note that the US census has historically counted all residents regardless of citizenship or immigration status, as required by the 14th amendment’s “whole number of persons” provision.
And in Florida, the administration’s immigration agenda hit a snag as a federal judge in Miami ordered a temporary halt to the construction of the detention centre being built in the Everglades, known as “Alligator Alcatraz”. While the injunction says the facility can continue to operate and hold detainees, any further construction must stop while environmental threats to the wetlands are assessed.
More than 60 countries around the world are scrambling to respond to the latest wave of US tariffs announced by Donald Trump, which came into force on Thursday.The Brazilian government said it was planning a state aid plan for companies affected. The president, Luiz Inácio Lula da Silva, said the duties were “unacceptable blackmail”.Switzerland said it was seeking new talks with the US after a last-gasp mission to Washington by its president, Karin Keller-Sutter, failed to stop a 39% tariff blow that industry group Swissmem described as a “horror scenario”.In a statement after an emergency meeting with Keller-Sutter, the Swiss cabinet said the tariffs would “place a substantial strain on Switzerland’s export-oriented economy”.“For the affected sectors, companies and their employees, this is an extraordinarily difficult situation,” Keller-Sutter told reporters.Despite a last-minute reprieve from Trump for Lesotho with tariffs dropping from 50% to 15%, the impoverished African nation said it was already hurting.Textile industry players in the country – which produces jeans and other garments for US companies including Levi and Walmart – said the uncertainty around tariffs over the past few months had already devastated the sector, with orders cancelled and jobs cut.Read more here:A federal judge in Miami has ordered a temporary halt to the construction of the detention centre being built in the Florida everglades known as ‘Alligator Alcatraz’.The temporary injunction, which lasts for 14 days, states that the facility can continue to operate and hold detainees, but any further construction must stop while any environmental threats to the wetlands are assessed.The plaintiffs – which comprise environmental groups and Florida’s Miccosukee Tribe – argue that the detention center’s construction ultimately violates the National Environmental Policy Act.The federal judiciary said on Thursday that it would be taking “additional steps” to strengthen protections for sensitive case documents after “recent escalated cyber-attacks” on its case management system.Politico first reported the news of a hack that hit the federal courts’ filing system.“Enhancing the security of its systems is a top priority for the Judiciary,” the Federal Courts system wrote in a statement. They didn’t offer any immediate information about who was behind the cyber-attacks.My colleagues are reporting on the latest developments following Benjamin Netanyahu’s remarks that he intends to take military control of all of Gaza, before eventually handing it over to Arab forces that will govern it properly.The Israeli prime minister’s statement comes after special envoy Steve Witkoff visited the region last week to assess the ongoing humanitarian crisis, increase the flow of US aid to Gaza.You can follow along here:Democrats have responded to the news earlier that the FBI has agreed to assist local law enforcement to track down Democratic lawmakers who left the state to break quorum in protest of the state’s GOP-drawn congressional map.It comes after Republican Senator John Cornyn’s statement earlier, praising FBI director Kash Patel for his support.Hakeem Jeffries lambasted the move in a post on X.“The Trump administration continues to weaponize law enforcement to target political adversaries,” the House minority leader wrote. “We will not be intimidated.”Meanwhile, Illinois governor JB Pritzker underscored on a podcast on Wednesday that Texas lawmakers hadn’t broken any laws. He also said that any arrests by FBI agents would be “unwelcome” in his state.“They’re grandstanding, there’s literally no federal law applicable to this situation,” he added. More
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World awaits Trump’s next move as Russia ceasefire deadline approaches
by Evelyn Reynolds 6 August 2025, 14:53
After taking six months to conclude that Vladimir Putin may not be a kindred transactional authoritarian leader but an ideological nationalist seeking the return of what “belongs to Russia”, the deadline Donald Trump set for the Russian president to agree a Ukraine ceasefire or face US sanctions on oil exports arrives on Friday.What Trump – who some had claimed was a Russian asset – does next to punish Putin could define his presidency.It is a remarkable turnaround and one that seasoned Trump watchers such as Michael McFaul, the former US ambassador to Russia, said they had never expected. Only months ago the debate was about what further inducements Trump would offer Putin to end the fighting. His administration has not introduced any sanctions against Russia, compared with at least 16 sets of actions in every prior six months back to February 2022, according to a report submitted to the Senate banking committee by top Democrats this week.Trump first set Putin a 50-day deadline then cut weeks off it. “Secondary sanctions and tariffs against China, India and Brazil, which buy Russian oil, are the obvious next step in an attempt to stop the conflict,” the US ambassador to Nato, Matthew Whitaker, predicted on Tuesday.But as the deadline approaches, there is lingering scepticism about how far Trump will go. He has dispatched his special envoy, Steve Witkoff, to Moscow for the fifth time for last-minute talks and on Friday Trump admitted he did not think sanctions would have much impact as Russians are “wily characters and pretty good at avoiding sanctions”.He has also given himself maximum room for political manoeuvre by ensuring the US Senate did not pass legislation before its summer recess that would have empowered him to slap bone-crushing 500% tariffs on exports from countries that import Russian oil, principally India, China, Brazil and Turkey.View image in fullscreenTrump had argued that the congressional legislation was unnecessary as he can act through executive orders, mentioning instead 100% tariffs on economies that import Russian oil – a whopping number, even if lower than the 500% floated by the Republican senator Lindsey Graham.It is striking that in the run-up to Witkoff’s talks in Moscow that Trump, normally keen to tout his leverage before a negotiation, has given only sketchy detail of the punishments the importers of Russian energy may face, either in terms of US sanctions on foreign refineries importing Russian oil or US tariffs on countries importing Russian oil.Some of Trump’s warnings this week to the Indian prime minister, Narendra Modi, that he would raise tariffs on India because its government did not care “how many people in Ukraine are being killed by the Russian war machine” do not yet seem to fit into a wider strategy. The tensions appears as much about Trump’s previous complaints with India’s trade practices as its purchases of cheap Russian oil. They are due to start on August 27.Rachel Ziemba, an adjunct senior fellow at the Centre for a New American Century, said if India was to receive a penalty but China – the largest buyer of most Russian crude – did not, the Russian oil trade may just go further underground. Some of Trump’s advisers, notably the Treasury secretary, Scott Bessent, warned China last week of tariff hikes related to Russia energy purchases, but it is hard to see such threats as credible given Trump’s eagerness for a trade deal with China and the risks associated with a sudden stop to trade between China and the US. In 2024 China accounted for 32% of Russian petroleum and oil exports.McFaul told Foreign Policy magazine about a possible boomerang effect if generalised increases in tariffs turn into a full trade war.Trump has wavered about the impact of economic pressure on Putin. Many academics say that sanctions on oil reshape economic relationships and change markets rather than produce changes in state behaviour.skip past newsletter promotionafter newsletter promotionThree years of sanctions on Russia have so far been – at best – a slow burn. Russia chalked up economic growth of 4% in 2023 and 2024, kept unemployment to an astonishing 2%, and even reduced social inequality by sustaining real wage growth that has disproportionately benefited Russians at the lower end of the economic ladder, a recent report from the Center for Strategic and International Studies, a Washington-based thinktank, found. The authors predicted that Russia’s economy can withstand the current level of sanctions for at least three more years.But the report also pointed to developing vulnerabilities in Russia. Interest rates are at 18%, inflation stubbornly high and growth is stalling. Russia has had to rework its 2025 budget as oil revenues slipped, largely because of a fall in prices and the discounts importers such as India could demand. As a result, government revenues from Russian oil and gas in May-June were 35% lower than the same period in 2024, the Kyiv School of Economics said in its July review. Russian oil export revenue is projected to drop 16% from $189bn (£142bn) in 2024 to $163bn in 2025 and $151bn in 2026.The federal budget deficit reached 3.7tn rubles ($40.4bn) in the first half of 2025 – 97% of the full-year target of 3.8tn rubles. This is more than five times larger than the deficit in the first half of 2024 and 57% higher than the largest first six-month deficit in recent years (2023). Oil prices are unlikely to recover significantly, meaning Russia will miss its budget target by a wide margin, increasing reliance on its national welfare fund (NWF) and domestic debt issuance.View image in fullscreenThe NWF’s liquid assets are also under pressure, with Russia expected to draw heavily on these reserves by year end. In a report this week, Oxford Economics predicted that Russia “may tip into recession”.The overall reason is simple: the level of military spending, including the cost of voluntary recruitment is distorting the economy. The economist Janis Kluge, who conducts research on Russia at the Berlin thinktank SWP, thinks overall Russian military spending is 8 to 10% of GDP once all expenditure including regional recruitment is included.The pressure could grow. The EU’s most recent sanctions package included a ban from next January on buying oil products made from Russian crude. The package for the first time put sanctions on a big Indian refinery, Nayara Energy, causing Microsoft this week to suspend software services. Other refineries could be placed under sanction – with the UK likely following suit – but the question then arises as to how the supply gap created by the loss of Russian oil can be filled.Moreover, if Trump is joining sanctions, the US and Europe will have to come to a joint decision on the continuing value of the elaborate oil price cap, a Biden-era device designed to squeeze Russian oil profits while keeping the global price of oil low.The cap was introduced across the G7 in December 2022 and operates by withdrawing insurance from any shipping company that has not obtained a certificate that it is selling Russian oil below $60 a barrel, but a multitude of problems have arisen.In recent months, as the price of oil has fallen, it’s become evident the $60 cap was set too high. The cap has also led to the birth of a shadow fleet of oil tankers operating without formal insurance that are now being sanctioned by the EU, the US and the UK. The UK and the EU have agreed to lower the price cap from 2 September to $47.60 a barrel, but Trump is keeping the US cap at $60 a barrel, a recipe for circumvention.The one prerequisite is that Trump must not back off, McFaul said. “Making threats and not carrying through with them is one of the biggest mistakes you can make in diplomacy.” The former ambassador recalled George Shultz, the great Reagan-era US secretary of state, saying “never point a gun at anyone unless you are prepared to shoot”. More
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I was the US labor secretary. Trump’s latest firing undermines a key agency | Robert Reich
by Evelyn Reynolds 5 August 2025, 10:00
I spent much of the 1990s as the secretary of labor. One unit of the labor department is the Bureau of Labor Statistics.I was instructed by my predecessors as well as by the White House, and by every labor economist and statistician I came in contact with, that one of my cardinal responsibilities was to guard the independence of the Bureau of Labor Statistics.Otherwise, this crown jewel of knowledge about jobs and the economy would be compromised. If politicized, it would no longer be trusted as a source of information.So what does Donald Trump do? In one fell swoop on Friday, he essentially destroyed the credibility of the BLS.Trump didn’t like the fact that the BLS revised downward its jobs reports for April and May.Well, that’s too bad. Revisions in monthly jobs reports are nothing new. They’re made when the bureau gets more or better information over time, which it often does.Yet with no basis in fact, Trump charged that Erika McEntarfer, the commissioner of labor statistics, “rigged” the data “to make the Republicans, and ME, look bad”. Then he ordered her fired and replaced with someone else – presumably someone whose data Trump will approve of.How can anyone in the future trust the information that emerges from the Bureau of Labor Statistics when the person in charge of the agency has to come up with data to Trump’s liking in order to stay in the job? Answer: they cannot.Trump has destroyed the credibility of this extraordinarily important source of information.When Trump doesn’t like the message, he shoots the messenger and replaces the messenger with someone who will come up with messages that he approves. So we’re left without credible sources of information about what is really occurring.Trump is in the process of trying to do the same with the Federal Reserve – demanding that Jerome Powell, the Fed’s chair, cut interest rates or lose control of the agency.What happens to the Fed’s credibility if Powell gives in to Trump? It loses it.In the future, we wouldn’t have confidence that the Fed is fighting inflation as rigorously as it should. And without that confidence, longer-term interest rates will spike because investors will assume that there’s no inflation cop on the beat, and therefore will demand a higher risk premium.Trump hates facts that he disagrees with. That’s why he’s dismembering the Environmental Protection Agency, which has repeatedly shown that the climate crisis isn’t a “hoax”, as Trump claims, but more like a national emergency.It’s why Trump is attacking American universities, whose scientists are developing wind and solar energy, and whose historians have revealed America’s tragic history of racism and genocide of indigenous people.He is killing off the Centers for Disease Control and the National Institutes of Health, which are showing the sources of sickness and disease and how we can guard against them.This is a man and a regime that doesn’t want the public to know the truth. He is turning the US into George Orwell’s dystopian 1984.The Trumping of America is happening so fast and in so many places that it’s hard to see the whole. Which partly explains why he doesn’t want the facts out. He doesn’t want us to know how bad it really is.
Robert Reich, a former US secretary of labor, is a professor of public policy emeritus at the University of California, Berkeley. He is a Guardian US columnist. His newsletter is at robertreich.substack.com. His next book, Coming Up Short: A Memoir of My America, will be out on 5 August More

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I was the US labor secretary. Trump’s latest firing undermines a key agency | Robert Reich

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