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      Donald Trump’s cartoon-like chaos leaves US economy on unstable course | Heather Stewart

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      Ten days reporting from the US – in Pittsburgh, Washington DC, and just across the Potomac River in Arlington, Virginia – gave me a fascinating snapshot of what feels like the slow-motion unravelling of the world’s largest economy.So many conversations featured uncertainty and wariness; and weariness, too, as businesses and consumers weigh up every decision, against the backdrop of the chaos emanating from the White House.Even the president conceded last week that the economy was in a “transition period”, claiming he had warned of this during his campaign. (When challenged, the White House could not come up with any examples of when he had done so.)The problem for Trump and his supporters, many of whom remain staunchly loyal, is that the transition period in question is starting to resemble that felt by the classic Looney Tunes character Wile E Coyote between charging off a cliff into midair and plunging to the ground.So far, the hard data from the US economy is holding up well. Friday’s payrolls report was strong, and the negative first quarter gross domestic product reading, while worrying, was hard to take a clear reading from because of the rise in imports as companies stocked up ahead of tariffs.There is little sign of anything as dramatic as mass job cuts, or a sudden stop in consumer spending – although the recent crop of data mainly relates to the period before “liberation day”.Look at the forward-looking surveys, though, and there are clear signs of anxiety. The long-running Michigan consumer sentiment index just had its steepest quarterly decline since the 1990 recession.Spend any amount of time talking to US consumers and businesses, and it is abundantly clear why: there are so many sources of policy ambiguity as to make the future not just uncertain but completely unknowable.There is a cliche that “markets hate uncertainty”, but in truth the same applies to everyone in the real economy, too: the company wondering what size order to put in and how many people to hire and the family thinking about buying that fridge or booking that holiday.It is not surprising they are uncertain. No one, even inside the administration, can say with any confidence what the tariff rates on imports from specific countries will be in July.Even if the tariff policy was crystal clear, its impact on prices would be hard to gauge – depending, as it does, on how much of the cost companies are willing to bear (or “eat”, as the Americans have it) at the expense of reduced profits, and how much is passed on to consumers.For the moment, as the Treasury secretary, Scott Bessent, has admitted, the tariffs on China, at 145%, are now so high as to amount to an effective trade embargo.Not every company will have the deep pockets and global reach of Apple to be able to bend its supply chain away from China to manufacture products for the US elsewhere (in the iPhone-maker’s case, India). Instead, many will be scrambling to find substitutes, which may be more expensive or not exist at all. Shortages of some products seem a distinct possibility.At the same time, sharp cuts in federal budgets, many of which have an ideological taint, including Robert F Kennedy Jr’s decimation of the National Institutes of Health, are raising short-term questions about unemployment and much longer-term worries about the US’s world-leading science base.Some of the most heartbreaking conversations I had were about aspects of Trump’s immigration policy: the man who said a Guatemalan friend’s six-year-old son had stopped going to school in case his mum was snatched by the authorities while he was there, and the restaurant manager who said it was becoming harder to hire Latinos because even fully documented workers feared they could face deportation anyway.skip past newsletter promotionafter newsletter promotionThese are first and foremost human tragedies, but clearly they also have an economic dimension. The credit rating agency Fitch warned in a report last week: “Risks associated with mass deportations could include potential worker shortages, production delays and increased wage inflation that hinders revenue growth, weakens profitability and lowers return on investment.”Of course, because the US economy’s abrupt gearshift has been driven by deliberate policy actions, it’s tempting to think: “It doesn’t have to be like this.”Much more of the real economy impact so far results from this widely shared uncertainty – or perhaps it is better to call it fear – than from the specifics of Trump’s policies.Business owners told me that if they just knew what the final tariffs on products from the various countries in their supply chain would be, for example, then over time they could adapt.It is not completely out of the question that a more settled policy position could arrive in the coming weeks.Certainly, Bessent appears to be trying to manoeuvre Trump towards striking a series of “deals” (in effect, promises of concessions in exchange for tariff carve-outs) with key economies.Yet the president appears to have such a love of political drama – and such an inability to choose a course and stick to it – that the unknowability of future policy seems to be the very essence of Trump 2.0.It seemed to be the mighty bond markets, driving up the cost of US borrowing, that checked Trump’s initial “liberation day” drive, prompting the “pause”.But if time drags on with no agreements in sight, the next wave of distress signals are likely to come not from Wall Street but from main street – in soaring prices and empty shelves. How Trump responds then is anyone’s guess. More

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      This hockey town in Michigan has deep ties to Canada. Then came Trump’s tariffs

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      There are few entities that embody the close, fraternal ties between the US and Canada quite like the Saginaw Spirit junior ice hockey team.In a place whose fortunes have been more down than up in recent decades, the Dow Event Center hockey arena in Saginaw, Michigan, comes alive with more than 5,000 fans once these young stars take to the ice. A huge banner depicting the players adorns the main street into the city.Nearly all the players, aged 16 to 20, come from Canada, and stay with local Saginaw families during the regular playing season, which runs from September to April.“They are family, almost literally,” says Jimmy Greene, the Spirit’s vice-president of marketing and community relations, “because players come over here and stay with American families. It’s more than just sport.”One of the top prospects of this year’s National Hockey League entry draft is forward Michael Misa, the Spirit’s 18-year-old Canadian captain. Last year, the Saginaw Spirit won the Memorial Cup of the Ontario Hockey League for the first time. In the season that recently finished, the Spirit played 28 times on Canadian soil.So the fallout from Donald Trump’s tariffs regime on Canadian goods has been felt more keenly in Saginaw than most other communities – as has the fight over the Canadian election, with the US president’s jibes over Canada becoming the US’s 51st state looming over the contest amid a fierce backlash against such comments.“We’ve had this relationship for decades and all of a sudden, in the last couple of months, it’s been uprooted,” says Greene.“Of course, you’re going to be concerned because you just don’t know [what will happen next]. At some point, it’s going to end up costing us. I just don’t know what extent and by how much.”As the largest city in the northern half of Michigan located within a short drive of three Canadian border crossings, Saginaw has closer ties to Canada than perhaps any other community of its size. Canadian companies own close to 4,000 acres (1,600 hectares) of farmland in the county, and last year, Saginaw established its first sister-city ties with a Canadian counterpart.What’s more, it is a key political bellwether and manufacturing county that helped push Donald Trump over the line in last November’s presidential election, but today the community faces uncertainty around the trade war with Canada.Michigan, with its vast automotive manufacturing industry, is set to be affected by Trump’s trade battle with Canada more than perhaps any other US state.After Trump announced 25% tariffs on Canadian vehicles and parts – with some exemptions – Ottawa responded with its own 25% tariff on certain US automotive products. Canada says the tariffs are unjustified, but on 23 April Trump warned that the tariff figures could go up.While Trump has claimed the US doesn’t need goods produced by its northern neighbor, Canada buys more American products than any other country, at $356bn worth of purchases. Nearly 40% of Michigan’s exported goods go to Canada. In 2023, $1.7bn worth of goods made in the Saginaw metropolitan area were exported, one of the highest amounts for any Michigan city, with much of that sent to Canada.Nexteer Automotive employs around 5,000 people in Saginaw while Means Industries, an automotive parts company headquartered in the city, also has a base in London, Ontario. Repeated calls and emails sent by the Guardian to Saginaw’s chamber of commerce seeking information on specific local industries potentially affected by the tariffs were not responded to.‘Sport right now triumphs over politics’Saginaw is no stranger to economic ups and downs.On a recent Friday afternoon, the downtown area is almost dead. Despite the recent success of the hockey team, there isn’t a sports bar for blocks in any direction as most of Saginaw’s commercial activity is now concentrated around miles of strip malls north of downtown.For Brad Pyscher, an officer at a correctional facility and former union president who, on a recent Saturday afternoon, is manning the Saginaw county Republican party office in one of these strip malls, the tariffs on Canada were something of a shock.“People are concerned, and they hope this works itself out,” he says. “The shock and awe [of the tariffs] really took everyone by surprise.”The 54-year-old says he had voted independent all his life before backing Democrat Barack Obama, and then Trump for president in 2016.“The thing with Trump, whether you like him or don’t like him, there’s transparency,” he says. “I’m drawn to him because he is not a politician.”But Pyscher concedes that Trump could have negotiated with Canada before “hitting them with that shock and awe. I think it’s on purpose, to let the world know he can do it,” he says.“[With] Canada, it should have been negotiated a bit better, a lot better. I’m expecting the deals with Canada to come soon, and we can all put this behind us.”Trump has said one of his main motivations for issuing tariffs on Canada was to stop the flow of illicit drugs into the US. However, reports indicate the opposite may be happening. Last month, $11m worth of cocaine was seized at the Port Huron border crossing, 80 miles (130km) east of Saginaw – on its way into Canada. In December, around 1,000lb (450kg) of cocaine were also seized in a semi-truck attempting to enter Ontario from the same border crossing.Back in the world of ice hockey, Greene of Saginaw Spirit says he feels most people he interacts with have been able to park their political feelings, starting with the organization’s Canadian players, who have been essential to the team’s recent success.“I think we all made a concerted effort, while not to keep [the players] dumb and naive, we did enough to make them feel comfortable in our environment and away from the political stuff. We kept them in a mindset of sport,” he says.But Greene also realizes the strained ties with Canada fueled by the White House’s policies are a very real dynamic.“I’m not immune to the idea that at some point Canada had some hostile feelings towards us, but people have, until this point, been able to park the politics away from sport. I think sport right now triumphs over politics,” he says.“Because we play in Canada, and [because of] the tariffs. I’m more concerned about how they feel about us. Our feelings towards Canada have been and always will be favorable and friendly. I’m concerned not just because of the economic tariffs, but because of the emotions that come from that. I’d be foolish to pretend otherwise.”Saginaw residents are hoping the kind of fraternal ties that were on display across the city last May, when hundreds of Canadian hockey fans from as far away as Saskatchewan descended on the region for the Memorial Cup, won’t become a thing of the past.“Everybody’s been super friendly. You guys have been incredible hosts,” one Canadian hockey fan who drove 11 hours from Quebec for the tournament told local media. More

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      Trump’s promised ‘golden age’ for the US economy is off to a chaotic start

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      Donald Trump promised to usher in a new “golden age” for the US economy – one with lower prices, more jobs and greater wealth. This week, his first quarter report card came in, and the new age is off to a chaotic start.Gross domestic product (GDP) shrank for the first time in three years during the first quarter, abruptly turning negative after a spell of robust growth as trade distortions and weaker consumer spending dampened activity.It took the US president all of 43 minutes to distance himself from the dismal reading, released on Wednesday morning.“Our Country will boom, but we have to get rid of the Biden ‘Overhang’,” Trump wrote on Truth Social, his social media platform. “This will take a while, has NOTHING TO DO WITH TARIFFS, only that he left us with bad numbers, but when the boom begins, it will be like no other. BE PATIENT!!!”By Trump’s telling, any bad numbers are the fault of Joe Biden – but this attribution does not extend to the good ones.March’s strong jobs report demonstrated how “the private sector is roaring back under President Donald J. Trump”, according to a statement issued by the White House. “IT’S ALREADY WORKING,” the president declared the day it was published.But April’s less buoyant jobs report, released on Friday, prompted a more tepid response. He wrote: “Just like I said, and we’re only in a TRANSITION STAGE, just getting started!!!”So which is it? Is the “golden age” of America well under way? Or will it take a while?Growth in the first three months of the year – no matter how much Trump wants to blame the 19 or so days he was not yet in office – was significantly challenged by the new administration’s plans to overhaul the world economy. US goods imports surged 41% as companies scrambled to pre-empt tariffs, while consumer spending on durable goods fell 3.4% as sentiment came under pressure.And the first quarter figures raised troubling questions about the second. Activity weakened largely as firms braced for the lion’s share of Trump’s tariffs, which he only unveiled in early April. How those firms, and their customers, ultimately respond to those tariffs – and the confusion around them – is widely expected to have a greater impact on growth.Trump’s erratic rollout of 10% tariffs on goods from much of the world, and 145% on China, “have altered the picture dramatically” since the end of the first quarter, Oliver Allen, senior US economist at Pantheon Macroeconomics, observed. “Any support to spending from pre-tariff purchases will unwind soon now that substantial new tariffs have been imposed.“Consumers’ spending will also be weighed down by a hit to confidence and real incomes from higher prices, while intense uncertainty will put the freeze on business investment, and exports – especially to China – will suffer.”It is too soon to say whether tariffs, which the administration insists will revitalize the US economy, will, in fact, set the stage for a recession: two consecutive quarters of contraction. On Trump’s watch, the landscape shifts rapidly from one day to the next, let alone during an entire quarter.Trump is right, to a point: most of his tariffs are not to blame for the stunning reversal of growth in the first quarter. The US only hiked duties on China and imposed its blanket 10% levy on many other countries last month, days into the second quarter.The foundations of a potential Trumpcession were not laid in the early months of the year by the tariffs themselves, but by his administration’s execution of them.From repeated jerks and jolts around sweeping duties on Canada and Mexico to announcing “reciprocal” tariffs on dozens of nations which were ultimately imposed for less than a day, widespread confusion and uncertainty is now embedded into the world’s largest economy. Businesses inside it and out are not happy.Scott Bessent, Trump’s treasury secretary, has coined an interesting term for this playbook of threats, theatrics and social media broadsides. “President Trump creates what I would call ‘strategic uncertainty’ in the negotiations,” he told a press briefing on Tuesday. “As we start moving forward, announcing deals, then there will be certainty. But certainty is not necessarily a good thing in negotiating.”However useful Trump and his officials find “strategic uncertainty” during trade negotiations, it has different consequences for those paying bills they were repeatedly assured would swiftly fall, trying to grow a business in a market with leaders locked in a war of words with the White House, or planting a crop without knowing what the economic realities will be by the harvest.Trump returned to office after winning the backing of rural and lower-income voters in significant numbers last November. He needs to preserve his base if Republicans are to maintain power in Washington during his second term.Polling suggests these groups are concerned. A PBS News/NPR/Marist survey, published this week, found 48% of rural voters disapproved of Trump’s handling of the economy. The same was true for 57% of voters with a household income of less than $50,000.As apprehension grows, the US president has sought to play down the risks. In one of the more peculiar moments in another bizarre week, he appeared to play down the threat of empty store shelves.“Well, maybe the children will have two dolls instead of 30 dolls, y’know,” Trump said during a cabinet meeting on Wednesday. “And maybe the two dolls will cost a couple of bucks more than they would normally.”China has “ships that are loaded up with stuff, much of which – not all of it, but much of which – we don’t need”, he continued.It is typically up to the American consumer, not their president, to decide what they do and don’t need to buy. For a man whose fortune and image are built around conspicuous consumption, the comments seemed very off-brand. “Skimp on the Barbie” read the front page of the often Trump-friendly New York Post. It is still early days for Trump. But already the Biden “overhang” argument is wearing thin. It will be up to US voters, not their president, to deliver a verdict on his handling of the economy. More

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      One hundred days in, Donald Trump faces a problem: he can rage, but he can’t govern | Jonathan Freedland

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      He says it’s the “best 100-day start of any president in history”, but you can file that along with his boast about crowd sizes and his claim to have won the 2020 election. In truth, the first three months of Donald Trump’s second presidency have been calamitous on almost every measure. The single biggest achievement of those 100 days has been to serve as a warning of the perils of nationalist populism, which is effective in winning votes but disastrous when translated into reality. That warning applies across the democratic world – and is especially timely in Britain.Start with the numbers that matter most to Trump himself. A slew of polls appeared this week, but they all told the same story: that Trump’s approval ratings have collapsed, falling to the lowest level for a newly installed president in the postwar era. He has now edged ahead of his only rival for that title: himself. The previous low watermark for a president three months in was set by one Donald Trump in 2017.Back then, 42% of Americans approved of the way Trump was doing his job. The latest Ipsos survey for the Washington Post/ABC News has Trump at just 39%. This, remember, is meant to be the honeymoon period, yet Trump is 10 points behind where Joe Biden stood at this point, 30 points behind Barack Obama and 44 points behind Ronald Reagan. Remember: US presidents tend to get less, not more, popular as time goes on.Perhaps most significant is that Trump is weak even in those areas where he’s meant to be strong. Confidence in his ability to handle immigration has tumbled and the same is true, even more critically, of his management of the US economy. On the latter, just 37% back Trump, a depth he never plumbed during his first term, even as the economy seized up under Covid. For the first time since 2001, a majority of Americans believe their economic situation is getting worse.With good reason. Because the economic data is almost as troubling for Trump as his poll numbers. This week, official figures showed that the US economy contracted by 0.3% in the first quarter of the year, further fuelling fears of a recession. Trump wasted no time in blaming the shrinkage on Biden, who was in charge for just 20 days of the first three months of 2025, an argument only slightly weakened by the fact that the last quarter with Biden in charge saw growth of 2.4%.It’s a precipitous drop, and the cause of it is hardly mysterious. Economists agree that the culprit is Trump’s tariffs, which prompted a surge in imports, as companies scrambled to buy in goods from abroad before the president’s on-again-off-again levies kicked in. Because those imported goods and services are not produced in the US, they’re subtracted from the headline GDP figure. Hence the contraction. Meanwhile, the chaos and volatility unleashed by Trump’s tariff policy has dented consumer confidence, now down to its lowest level since the recession of 1990, leaving Americans hesitant to spend money amid so much uncertainty. Even though the latest job numbers look healthy, analysts say the underlying picture is alarming. As Bloomberg reports, “corporate investment plans and expectations for growth and jobs have all plummeted – and the key reason is Trump’s trade war.”Trump knows that the warnings from retail giants Walmart and Target, of empty shelves as supplies from heavily tariffed China dry up, have cut through. He addressed that anxiety this week, but in a way that should make even Trump’s admirers, those who usually praise his ability to connect with ordinary folk, worry that he’s losing his touch.Asked about potential shortages of toys at Christmas, Trump said, “Well, maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls will cost a couple of bucks more.” Bit late in his career for Trump to don the saffron robes and preach a Zen flight from consumerist materialism. His two-toys remark – which strangely did not feature as one of his campaign pledges in 2024 – has already cast him as the Grinch set to ruin Christmas.“BE PATIENT!!!” he urges on his social media platform, as he insists that the vertiginous downward slide of the stock market either doesn’t matter or is all Biden’s fault. But the whiff of desperation is strong as Trump begins to see why the one idea he actually believes in and has believed in for decades – tariffs – is an object of near-universal contempt among economists. Yes, tariffs may have succeeded in persuading Apple to shift manufacturing away from China. But those jobs are not about to move to the US. Apple has announced instead that it will assemble its US-bound iPhones in India. Better restitch those red baseball caps with a revised slogan: make India great again.By now, you’ll recall, Trump was meant to have ended the wars in Ukraine and Gaza, indeed he promised to do that by 21 January. But after a brief ceasefire, Israel’s war against Hamas in Gaza has resumed, the Trump administration having apparently lost interest. As for Ukraine, Trump got to brag of a breakthrough this week, with an agreement that gives the US a stake in Ukraine’s mineral wealth. But it’s far from the deal he sought.The case he always made was that the US had to be reimbursed for the billions it had given Ukraine in military support under Biden – plucking the entirely bogus figure of $350bn out of the air. But this week’s arrangement includes no such payback. On the contrary, the deal is one Kyiv can look on with quiet satisfaction. It seems the Ukrainians could smell Trump’s need to have something to shout about in time for his 100th day, and they leveraged that eagerness to their advantage.As for his expansionist threats to gobble up Panama, Greenland and Canada, the only concrete result those have brought is defeat in Canada’s general election for the pro-Trump Conservatives and a back-from-the-dead success for the Liberal party that vowed to defy him. Such is Trump’s narcissism that he even boasted about that, citing it as evidence of how much he matters in the world. As he put it, just before Canadians voted: “You know, until I came along, the Conservative was leading by 25 points,” he mused. “I was disliked by enough of the Canadians that I’ve thrown the election into a close call.”The promise was that this second Trump term would be different, that the chaos and churn of Trump 1.0 would be gone. But on Thursday, we were back to the good old days, with the firing of his national security adviser, Mike Waltz, partly for his accidental admission of a journalist into a Signal group chat that discussed attack plans for Yemen, partly for advocating a tougher stance on Vladimir Putin, and partly for earning the hostility of far-right conspiracist Laura Loomer, who has the ear of the president.So it’s fair to say the 100 days have not gone as Trump would have wished. And thanks to those serial failures, you can see the first, small signs that his power to terrify is fading. Witness the handful of senate Republicans who voted with Democrats against his tariff policy. And note how the reliably rightwing editorial page of the Wall Street Journal is now a fierce critic, slamming Trump as a “bully” and denouncing tariffs as “the biggest economic policy mistake in decades”. For a few short hours, even Jeff Bezos seemed ready to take a stand, amid reports that Amazon was about to itemise the cost of tariffs to US customers, before the company backed down.Of course, none of this should be a surprise. Trump’s conman promises and delusional dreams of turning the clock back were always bound to fail. This is the nature of nationalist populism, whether it wears a red cap in Michigan or a turquoise rosette in Runcorn. It is expert at turning grievance, division and nostalgia into votes. But when it comes to governing, it will always fail. It offers an outlet for complaint – and has no answers at all.

      Jonathan Freedland is a Guardian columnist More

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      The case for American reindustrialisation | Dustin Guastella

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      A poll from the conservative Cato Institute recently went viral. It found that 80% of Americans think the country would be better off if more people worked in manufacturing. At the same time, only 25% of respondents said they themselves would be better off working in a factory. What should we make of the results?First, there’s nothing contradictory between these figures. It’s easy to see how it would be good for the country to reshore manufacturing jobs, even if it’s not good for you, personally, to work in a factory. Imagine a local pharmacist in an industrial town. He can see how his business would benefit from the expansion of a nearby plant. Yet he could also see that he would personally lose out on a lot of income if he gave up his trade and marched into the factory himself. The same can be said for any number of other workers. The reason so many people find appeals to reindustrialization attractive is because life was undoubtedly better when the old factories in their town were buzzing with activity than it is today, where they sit idle.Second, that 25% figure represents a lot of people. Across the political spectrum, libertarians at Reason Magazine, liberals at the Financial Times, mainstream conservatives, and even some on the far left have misread this figure. They think 25% indicates a woefully low ceiling for appeals to reindustrialization. Yet currently only 8% of Americans are directly employed in manufacturing. If we gave the people what they wanted, we would more than triple the amount of manufacturing jobs in the United States, an increase from about 12.7 million workers to more than 40 million. That is not small, it’s seismic. That a quarter of Americans think they would be personally better off with a factory job – jobs that are often dangerous and difficult – represents a scathing indictment of the so-called “knowledge economy” that promised prosperity but has often delivered devastation instead.Back in 1987, the economists Stephen Cohen and John Zysman warned:“Lose manufacturing and you will lose – not develop – high-wage service jobs.” How prescient they were. Everywhere factories have fled, social rot has followed. Since then, wage growth for most Americans has been stagnant. For those without a college degree it has declined. The promise of a “service economy” was built on the myth that jobs in services could simply replace jobs in manufacturing, without any real trade-off. But, as experience has shown, many service jobs have proved to be stubbornly low-waged. And there is good evidence that, all things being equal, jobs in manufacturing still offer pay advantages over jobs in services. Moreover, as developmental economists have long acknowledged, the health of a nation is tied to the health of its industrial heartlands. Just look at China’s explosive rise to see how important manufacturing is to a nation’s economic strength. Or, alternatively, look at the deindustrialization of the United States, and now Germany, for examples of the equal and opposite effect. A decline, especially a rapid one, in manufacturing is linked to a decline in the social and economic health of the country as a whole.Still, some argue that the only thing special about manufacturing jobs in the US was that the sector was highly unionized and that in a more pro-labor environment, service jobs would make just as much money as factory jobs. For instance, Matt Bruenig notes: “McDonald’s workers in Denmark make more than Honda workers in Alabama.” He’s right. Yet, as he knows, the Danish example doesn’t just show the power of unions, it actually helps make the case for a strong manufacturing sector. For one thing, Danish manufacturing workers make nearly twice the amount that Danish McDonald’s workers do. For another, Denmark employs nearly twice as many (15.7%) workers in manufacturing than does the United States (8%). And, according to the World Bank, manufacturing counts for a significantly larger portion of Denmark’s GDP (about 16%) than it does in the United States (about 10%). Ultimately, a major reason Danish McDonald’s workers can earn high wages is that, thanks to intelligent industrial policy, Denmark has retained its manufacturing sector. It is because blue-collar Danes earn high wages that McDonald’s can afford to pay high wages. The same can’t be said of the United States.While unionized service workers at say, Starbucks, may be able to win significant wage increases through union bargaining, they won’t be able to make anything close to the wages made by union auto workers. And that is not due to a lack of effort or heroism on the part of the baristas. It’s structural. Manufacturing jobs simply have greater wage potential than many jobs in services because they have more room for productivity growth and a higher degree of leverage to win wage demands.Increases in productivity, the amount of work accomplished by each worker in a set period of time, make firms more efficient and more profitable. As productivity increases, so do profits, which can translate to higher wages through bargaining. But service firms and factories have very different productivity curves. A Starbucks store can introduce more efficient espresso machines but ultimately the potential for increased productivity is limited by the nature of the business itself. Starbucks is selling a service, a consumer experience, and it’s hard to increase the per-worker output of an experience. This is a problem across the service sector where the rate of productivity growth remains low. By contrast, manufacturing firms can rapidly increase the output of each worker by introducing new techniques and technologies.As a result, these workers have a regular claim to corresponding wage increases – each year they get more productive, they make the company more money, and therefore the company can afford to pay their wage demands. Still, whether they can win those demands depends on leverage. Here too manufacturing workers have the advantage. A strike in a key auto plant can shut down all downstream operations, resulting in windfall losses quickly. Yet no strike at any given Starbucks store could have the same effect. Productivity and worker-leverage give manufacturing its unique high-wage potential, and for these reasons, a strong manufacturing sector has a salutary effect on the entire economy.Even for union baristas, manufacturing matters.Besides the pay advantages, there are other good reasons for reshoring manufacturing. As John Maynard Keynes argued, national self-sufficiency, the ability of a nation to provide its own industrial necessities, has all sorts of benefits. Including increased leverage in trade negotiations, more sovereignty over economic policy, and greater potential for robust social programs (remember, none of the famously generous Nordic states allowed their major industries to shrivel and die the way that Britain and the United States have). Put simply, if we want more social equality, we need a better economic balance. Consider that in 1960 almost 95% of the clothing worn by Americans was made in the US – today it is 2%. And unionized American garment workers made more then than Bangladeshi garment workers make now.Finally, reindustrialization is great politics. With the left struggling to reach working-class voters, an economic appeal that reaches some 80% of the country is a good way to win back favor. Donald Trump’s chaotic and contradictory policies won’t yield an industrial renaissance, and his fumbling of the economy could make it yet harder to do so, but while we are in the political wilderness the left should figure out the right mix of industrial policies that can bring back manufacturing jobs. We need to figure out an exit path from neoliberal globalization and that involves a wholesale rethinking of trade and industrial policy; immigration and labor market policies; monetary and fiscal policies.The good news is there is hope. As UAW’s president, Shawn Fain, notes, even a modest reorganization of economic policy can result in an instant boost in new manufacturing employment. By the union’s calculations more than 50,000 new jobs could be reshored simply by filling out the capacity of existing plants. That may not sound like a lot, and it’s far short of the 25% figure, but if you’re among those newly employed it could mean the difference between scraping by in a post-industrial town and having a living wage with union rights.Beyond the short term, US deindustrialization, ironically, could be an advantage for its industrial rebirth. After the second world war, Europe saw the most fantastic industrial turnaround ever recorded. Decimated economies such as France and Germany, where industrial towns were bombed to smithereens, suddenly emerged as manufacturing powerhouses. How? The destruction of their old factories gave them a fresh start. Industrial policy-makers didn’t have to deal with stubborn institutional inertia or outmoded infrastructure. While British firms struggled after the war, unwilling to build new plants, French and German manufacturers, with a clean slate upon which to build, surged ahead.Walking through America’s deindustrialized zones is a bit like walking through Dresden after 1945. Maybe then, with a clean slate, we can rebuild better than before.

      Dustin Guastella is a research associate at the Center for Working Class Politics and the director of operations for Teamsters Local 623 More

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      in US Politics

      Apple quarterly earnings beat Wall Street expectations amid Trump trade policy chaos

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      Apple’s second-quarter financials came in slightly higher than Wall Street’s expectations on Thursday.The tech giant reported revenue of $95.4bn, up more than 4% over last year, and earnings-per-share of $1.65 per share, up more than 7%. Analysts had predicted revenue of $94.5bn and earnings of $1.62. The company, worth $3.2tn, has beaten Wall Street’s expectations for the previous four quarters.Investors have been keeping their eyes on Apple as it prepared to report its financial results . The tech giant has been working to calm nervous analysts after Donald Trump levied sweeping tariffs on countries around the world that are likely to complicate supply chains for consumer electronics. Since the beginning of the year, Apple’s stock has slumped 16%.In early after-hours trading, the company’s stock dropped by more than 5%, likely due to its services division reporting revenue that missed Wall Street’s expectations, despite growth over last year. The division covers iCloud subscriptions and revenue from various licensing deals. Sales in China also missed estimates.Apple’s CEO, Tim Cook, remained positive, however, saying that the company was reporting “strong quarterly results, including double-digit growth in Services”.The iPhone maker is heavily reliant on Chinese manufacturing for its phones, tablets and laptops. Days after Trump instituted soaring tariffs on China, at one point as high as 245%, the president said he would make an exception for consumer electronics.Cook spoke to senior White House officials around this time, according to the Washington Post. It was after these conversations that Trump announced his exception for consumer electronics. Apple’s stock rose 7% in the days after the announcement.However, it is unclear how lasting the reprieve may be. Howard Lutnick, the US commerce secretary, has called the exemption “temporary”, and even Trump later said on social media that there’s been no “exception”.The president has repeatedly said he wants to see more manufacturing in the US. In February, he met with Cook to discuss investing in US manufacturing. “He’s going to start building,” Trump said after the meeting. “Very big numbers – you have to speak to him. I assume they’re going to announce it at some point.”JP Morgan estimates costs would skyrocket for Apple if it moves production to the US, saying in a note this week that it could “drive a 30% price increase in the near-term, assuming a 20% tariff on China”. JP Morgan and other analysts have said Apple could continue to move more of its manufacturing to India, which only faces a 10% tariff.skip past newsletter promotionafter newsletter promotionApple chartered jets to airlift some $2bn worth of iPhones from India to the US earlier this month to boost inventory in anticipation of price hikes from Trump’s tariffs and panic-buying by worried consumers. This comes as investors have expressed concerned about decreasing iPhone sales in China, the world’s biggest smartphone market. During its last earnings in January, Apple reported that iPhone sales fell by 11.1% in China in the first quarter and missed Wall Street’s expectations for iPhone revenue.In the short term, however, analysts say the tariff confusion could benefit Apple with people panic-buying its products in fear that prices will rise. “What remains to be seen in the longer term is how much of any increased cost will be passed on to consumers,” said Dipanjan Chatterjee, principal analyst for Forrester. “And if [consumers] will absorb these price increases without pulling back on demand for Apple products.” More

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      Tesla denies report claiming board looked to replace Elon Musk

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      Tesla has denied a report that its board sought to replace Elon Musk as its chief executive amid a backlash against his rightwing politics and declining car sales.Robyn Denholm, the chair of the board at the electric carmaker, said in a statement on Tesla’s social media account on X: “Earlier today, there was a media report erroneously claiming that the Tesla Board had contacted recruitment firms to initiate a CEO search at the company.“This is absolutely false (and this was communicated to the media before the report was published). The CEO of Tesla is Elon Musk and the Board is highly confident in his ability to continue executing on the exciting growth plan ahead.”View image in fullscreenIt followed a Wall Street Journal story published on Wednesday that claimed “board members” had contacted headhunters to recruit a successor about a month ago.The reported move came as tensions grew at Tesla around falling profits and criticism of Musk for spending much of his time in Washington, where he has been helping Donald Trump slash federal spending as de facto head of the “department of government efficiency” (Doge).It is unclear in the report whether these members were acting on behalf of the board as a collective, or if it was only some of them taking steps to find a new chief executive. The Tesla board is made up of eight people, including Elon Musk himself, his brother, Kimbal Musk, and James Murdoch, son of media mogul Rupert Murdoch.Tesla has been hit by a widespread backlash against Musk’s recent political activity, not only against his Doge work, but also his public support for the far-right Alternative für Deutschland (AfD) party before German national elections in February. Sales of the electric car have dropped in some of its biggest markets and there have been political protests at some of its showrooms.Last week, the company reported that profits had dropped by 71% in the first quarter of this year to $409m (£307m), compared with $1.39bn in the same period in 2024. Meanwhile, Tesla’s stock has suffered, with the company losing about a quarter of its market value this year.Musk told investors that starting from May he would be “allocating far more of my time to Tesla”. He is scheduled to leave his government role on 30 May, according to a strict 130-day cap on his service as a special government employee.skip past newsletter promotionafter newsletter promotionThere have long been concerns around the demands on Musk’s time. As well as Tesla, he oversees four other companies, including the space exploration company SpaceX and the social media platform X, formerly known as Twitter.Musk denounced the Wall Street Journal report on X on Thursday. He wrote: “It is an EXTREMELY BAD BREACH OF ETHICS that the @WSJ would publish a DELIBERATELY FALSE ARTICLE and fail to include an unequivocal denial beforehand by the Tesla board of directors!” More

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      Trump hails achievements of first 100 days despite polls revealing American disapproval on economy – as it happened

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      Trump is speaking now at a rally in Warren, Michigan and he has fulsome praise for what he calls “the most successful 100 days of any administration in the history of our country”.A raft of opinion polls released this week shows that a majority of Americans disagree, strongly, expressing deep disapproval of his performance as president, and particularly his handling of the economy, which has been severely damaged by his chaotic imposition of tariffs against nearly even nation, except Russia.A new NPR/PBS News/Marist poll released on Tuesday shows that 45% of those asked to grade Trump’s performance as president gave him an F, 7% a D, 8% a C, 17% a B, and 23% an A.Half of independents said Trump deserves an F, and only a slim majority of Republicans gave him an A.This brings our coverage of day 100 of Donald Trump’s second term to a close. We will be back in the morning, as the next of 1,000-plus days dawn, but in the meantime we leave you with this list of the day’s developments:

      At Donald Trump’s rally in Michigan, his supporters reacted to the screening of a long video, set to ominous music, showing the harsh treatment of men he had deported from the United States to a prison in El Salvador without due process by chanting”: “USA! USA!”

      As Trump defended his broadly unpopular handling of the economy, he criticized Fed chair Jerome Powell, saying: “I have a Fed person who’s not really doing a good job, but I won’t say that.” The businessman president who used bankruptcy law to rescue his failed enterprises six times added: “I know much more about interest rates than he does”.

      Trump mistakenly attacked the Michigan representative John James, calling the Republican he had endorsed “a lunatic” for trying to impeach him. That was someone else.

      Trump supporters praised by the president at a rally included the former member of a violent cult who founded Blacks for Trump, and a retired autoworker who once told people to read David Duke’s “honest and fair” book about race.

      The US Department of Justice has begun the first criminal prosecutions of immigrants for entering a newly declared military buffer zone created along the border with Mexico, according to court filings.

      Trump called Amazon executive chair Jeff Bezos on Tuesday morning to complain about a report that the company planned to display prices that show the impact of tariffs. Trump told reporters later that Bezos “was very nice, he was terrific” during their call, and “he solved the problem very quickly”.

      The Trump administration has reached one trade deal already but won’t tell us who with until that country’s prime minister and parliament approve the deal, the commerce secretary Howard Lutnick said told CNBC.

      The United States proposed sending up to 500 Venezuelan immigrants with alleged ties to the Tren de Aragua gang to El Salvador as the two governments sought to reach an agreement on the use of the nation’s notorious mega-prison, according to emails seen by CNN.

      Donald Trump signed a proclamation on Tuesday that offers temporary relief to automakers from the 25% tariffs he imposed in March in a previous proclamation. The measure gives automakers a break for two years to give them time to move auto production back to the United States.

      Doug Emhoff, the husband of Kamala Harris, accused the Trump administration of turning “one of the worst atrocities in history into a wedge issue”, after he and other Joe Biden appointees were removed from the board of the US Holocaust Memorial Museum.

      Pete Hegseth has abruptly banished the Pentagon’s Women, Peace and Security program as part of his crusade against diversity and equity, dismissing it as a “woke divisive/social justice/Biden initiative” despite it being a signature Donald Trump achievement from his first term.

      Donald Trump surprised Michigan’s governor, Gretchen Whitmer, by inviting her to speak during his address at Selfridge air national guard base on Tuesday afternoon.
      One notable feature of Tuesday’s Trump rally in Michigan is that it featured cameos from supporters of the president who have been fixtures of his campaign rallies for nearly a decade.Early in the speech, as he pointed to familiar faces, Trump recognized the Front Row Joes, a group of diehard supporters akin to groupies who have traveled the country to attend dozens of his rallies. He also shouted out Blake Marnell, a supporter who wears a “brick suit” in homage to Trump’s border wall and witnessed the assassination attempt last year in Butler, Pennsylvania.“There’s my friend, Blacks for Trump. I like that guy. He follows me”, the president said pointing into the crowd. “We love you, your whoile group has been so supportice over the years, I want to thank you”.“Everyone thinks I pay you a fortune”, Trump added. “I don’t even know who the hell he is, I just like him”.As I reported in 2020, the “Blacks for Trump” founder is Maurice Symonette, a.k.a. Michael the Black Man, a former member of a violent cult who posts anti-Semitic screeds and racist conspiracy theories online, and yet has been a featured member of the audience at Trump campaign events since 2016.Symonette was known as Maurice Woodside until 1992, when the black supremacist cult leader he followed, Yahweh ben Yahweh, was jailed for leading a conspiracy to murder 14 white people in initiation rites. Woodside was among the Miami-based Nation of Yahweh cult members charged in two of the murders, but he was acquitted. After the trial, he changed his last name to Symonette, which was his father’s surname, before eventually reinventing himself as Michael the Black Man.On his website, Symonette makes a variety of bizarre claims, including that Omar and other prominent Black Democrats, artists and athletes — including former President Barack Obama, Jesse Jackson, Spike Lee, Colin Kaepernick, and Rep. Maxine Waters, D-Calif. — are “DECEVING [sic] FAKE BLACK PEOPLE WHO ARE REALLY INDIANS!” In a sermon now deleted from YouTube, he claimed that the Senate is controlled by a secret underground of “Cherokee Mormons.”Later in the speech, Trump called to the stage another supporter who has been a figure at rallies since 2016: Brian Pannebecker, a retired auto worker who told the crowd, “We have the greatest President, probably not just in our lifetimes, but in the history of this country!”Pannebecker’s brief cameo was clipped and shared on social media by an official White House account, despite the fact that it was first reported a decade ago that he had written a glowing review of David Duke’s book, “My Awakening”, in which he called the former Klansman’s work “honest and fair”. After reading the book, Pannebecker wrote in his online review, people “will be able to discuss the issue of race without the fear of being labeled a racist because you will have the facts and the truth on your side”.A federal judge in New Jersey ruled on Tuesday that Mahmoud Khalil, the recent Columbia graduate and Palestine solidarity activist who was detained on 8 March in his apartment building in New York and moved to an Immigration and Customs Enforcement (Ice) detention center in Louisiana, can move forward with his lawsuit claiming the government is unlawfully detaining him for his political views.“This Court has habeas jurisdiction over this case” Judge Michael Farbiarz wrote. “And as set out in this Opinion, that jurisdiction is intact. It has not been removed.”“As I am now caring for our barely week-old son, it is even more urgent that we continue to speak out for Mahmoud’s freedom, and for the freedom of all people being unjustly targeted for advocating against Israel’s genocide in Gaza,” Noor Abdalla, Khalil’s wife said in a statement. “I am relieved at the court’s finding that my husband can move forward with his case in federal court. This is an important step towards securing Mahmoud’s freedom. But there is still more work to be done. I will continue to strongly advocate for my husband, so he can come home to our family, and feel the pure joy all parents know of holding your first-born child in your arms.”“The court has affirmed that the federal government does not have the unreviewable authority to trample on our fundamental freedoms,” Noor Zafar of the ACLU’s Immigrants’ Rights Project said in a statment emailed to reporters. “This is a huge step forward for Mahmoud and for the other students and scholars that the Trump administration has unlawfully detained in retaliation for their political speech, and a rebuke of attempts by the executive to use immigration laws to weaken First Amendment protections for political gain.”The US Department of Justice has begun the first criminal prosecutions of migrants for entering a newly declared military buffer zone created along the border with Mexico, according to court filings, Reuters reports.At least 28 migrants were charged were charged in federal court in Las Cruces, New Mexico, on Monday for crossing into the 170-mile-long, 60-foot-wide militarized buffer zone patrolled by active-duty US troops.Pete Hegseth, the defense secretary, visited the area last week and said it was the start of a plan to extend the buffer zone along the border.“The reason we are here today, at almost the 100-day mark of President Trump’s administration is because you’re standing on a National Defense Area, this may as well be a military base” Hegseth said in a defense department social media video posted online. “Any illegal attempting to enter that zone is entering a military base.”“As New Mexicans, we have deep concerns about the enhanced militarization of our borderlands communities” the American Civil Liberties Union of New Mexico in a statement last week. “The expansion of military detention powers in the ‘New Mexico National Defense Area’ – also known as the ‘border buffer zone’ – represents a dangerous erosion of the constitutional principle that the military should not be policing civilians.”The idea of militarizing the border has long been a dream of far-right politicians, like the failed Arizona senate candidate Blake Masters, who devoted a campaign ad to the idea in 2022.Trump has left the stage, and his supporters are filing out of the venue, which we are told by the pool reporter there has a capacity of 4,000, but was only about half or three-fifths full.One bizarre moment early in the speech that we would have heard a lot more about had the speaker been Joe Biden was when Trump tore into Representative John James, telling the crowd the Michigan Republican he had endorsed and campaigned with was “a lunatic”.“Some guy that I never heard of, John James. Is he a congressman? This guy? He said, he said, ‘Ladies and gentlemen, I am going to start the impeachment of Donald Trump”, Trump told the crowd. Many of his supporters in the room, and watching at home, were probably aware that the president, who celebrates his 79th birthday in six weeks, had confused James with Representative Shri Thanedar, the Michigan Democrat who did, in fact, introduce articles of impeachment against Trump on Monday.Trump has just finished speaking and departed to the strains of the Village People anthem YMCA. He spoke for about 90 minutes in what was a fairly typical rally speech and even told the crowd early on, “I miss you guys. I miss the campaign”.If there has been one constant theme throughout his time in office, it has been that he clearly loves the adulation of the crowd that comes from making campaign speeches far more than the work of governing.Trump just made the entirely false claim that, “for the first time in modern history, more Americans believe that our country is headed in the right direction than the wrong direction”.“For the first time ever, in, I think, ever, that they’re saying the country is headed in the right direction”, Trump added. “Has never happened before”.It is not clear why the president thinks this is true, or indeed if he does, but it is very clearly not true.In the latest nationwide poll, conducted from April 17-21 for the Associated Press by National Opinion Research Center at the University of Chicago, the overwhelming majority of Americans said that the country is headed in the wrong direction (62% vs 37%).The latest Gallup poll, from earlier in April showed that just 34% were satisfied with the way things were going in the US, and 64% were dissatisfied. While those numbers were markedly better than last summer, when satisfaction was as low as 18% and dissatisfaction reached 80%, the majority still clearly says the country is headed in the wrong direction.It is also not true to say that American have never previously said the country was going in the right direction. Gallup found that 50% of the public said that things were going n the right direction at this point in George W. Bush’s first term in 2001. There was even more optimism in 1999, during the presidency of Bill Clinton, when the right direction number reached 70%.Defending his handling of the economy, which has been severely damaged by his trade war and the prospect of rising inflation, Trump just told his supporters in Michigan: “Inflation is basically down, and interest rates came down despite the fact that I have a Fed person who’s not really doing a good job, but I won’t say that. I want to be very nice. I want to be very nice and respectful to the Fed. You’re not supposed to criticize the Fed; you’re supposed to let him do his own thing, but I know much more about interest rates than he does, believe me.”At his rally in Michigan, Donald Trump’s supporters reacted to the screening of a long video, set to ominous music, showing the harsh treatment of men he had deported from the United States to a prison in El Salvador without due process by chanting “USA! USA”!”The video, first posted on Elon Musk’s social media platform X by Salvadoran President Nayib Bukele in March, shows 238 men accused of being members of the Venezuelan criminal organization, Tren de Aragua, being taken from planes and confined in the Terrorism Confinement Center, known as Cecot.The images of the abusive treatment clearly delighted Trump, and his supporters. The fact that the men were not given an opportunity to contest the accusation that they are members of either Tren de Aragua or the Salvadoran gang MS-13, seemed not to trouble Trump.Instead, he accused Democrats of “racing to the defense of some of the most violent savages on the face of the Earth”.“They’re racing to the courts to help them”, Trump claimed, ignoring the fact that his own administration has admitted in court that at least one of the man deported, Kilmar Ábrego García, was sent there by mistake, in violation of an order issued during hjis previous term in office. The families of other men seen in the video have pointed to multiple errors in the interpretation of their tattoos as proof that they are gang members.Trump is speaking now at a rally in Warren, Michigan and he has fulsome praise for what he calls “the most successful 100 days of any administration in the history of our country”.A raft of opinion polls released this week shows that a majority of Americans disagree, strongly, expressing deep disapproval of his performance as president, and particularly his handling of the economy, which has been severely damaged by his chaotic imposition of tariffs against nearly even nation, except Russia.A new NPR/PBS News/Marist poll released on Tuesday shows that 45% of those asked to grade Trump’s performance as president gave him an F, 7% a D, 8% a C, 17% a B, and 23% an A.Half of independents said Trump deserves an F, and only a slim majority of Republicans gave him an A.“Today, the Prime Minister, Mark Carney, spoke with the President of the United States, Donald J Trump”, a statement from the Canadian prime minister’s office said.“President Trump congratulated Prime Minister Carney on his recent election. The leaders agreed on the importance of Canada and the United States working together – as independent, sovereign nations – for their mutual betterment. To that end, the leaders agreed to meet in person in the near future.”Carney’s center-left Liberal party won Monday’s general election thanks to a wave of resentment about Trump’s threats to annex Canada and the imposition of tariffs on Canadian imports.“As I’ve been warning for months, America wants our land, our resources, our water, our country”, Carney said in his victory speech late Monday. As the crowd jeered and shouted “Never!” Carney agreed. “These are not idle threats. President Trump is trying to break us so that America can own us. That will never, never, ever happen”.As Canadian went to the polls on Monday, Trump posted what seemed like an endorsement of Carney’s rival, the Conservative party leader Pierre Poilievre, suggesting that the pro-Trump politician would help bring about Canada’s absorption into the United States. When the votes were counted, however, Poilievre, who had a commanding lead in the polls before Trump started talking about annexing the country, had not only failed to lead the Conservatives to power, he had even lost his own seat.Despite Carney’s office claiming on Tuesday that he and Trump had agreed to work together “as independent, sovereign nations”, White House officials insisted that Trump is still serious about his stated desire to make Canada the 51st US state.White House press secretary Karoline Leavitt was asked during a briefing for rightwing influencers if Trump was “truthing or trolling” when he says that he wants to annex Canada, and Greenland. “Trump truthing, all the way”, she replied. “And the Canadians would benefit greatly, let me tell you that”.Donald Trump surprised Michigan’s governor, Gretchen Whitmer, by inviting her to speak during his address at Selfridge air national guard base on Tuesday afternoon.Trump, who came to Macomb county, Michigan, for an evening rally to celebrate what he calls the historic accomplishments of the first 100 days of his second term, despite widespread disapproval of his actions by a majority of Americans in a series of polls, announced a new fighter jet mission for the base outside Detroit, easing fears that the installation would be closed.For decades, Trump said, the base has “stood as a crucial pillar of North American air defense”.“In recent years, many in Michigan have feared for the future of the base. They’ve been calling everybody, but the only one that mattered is Trump,” he said. “Today I have come in person to lay to rest any doubt about Selfridge’s future.”Whitmer’s political standing was damaged earlier this month when she was photographed hiding her face from photographers in the Oval Office after Trump invited her to be present as he signed executive orders, two of which demanded investigations of critics who had served in his first administration.On Tuesday, she was careful to begin her impromptu remarks by saying that she had not expected to speak, and then praised the decision as a boon for the local economy, but did not praise Trump, as Republicans he invited to make remarks did.Donald Trump signed a proclamation on Tuesday that offers temporary relief to automakers from the 25% tariffs he imposed in March in a previous proclamation.The White House confirmed to Fox Business earlier that the new measure would give automakers a break for two years to give them time to move auto production back to the United States.The proclamation outlines a series of technical changes to the tariff regime, “to modify the system imposed in Proclamation 10908 by reducing duties assessed on automobile parts accounting for 15 percent of the value of an automobile assembled in the United States for 1 year and equivalent to 10 percent of that value for an additional year”.As we reported earlier, the changes will allow carmakers with US factories to reduce the amount they pay in import taxes on foreign parts, using a formula tied to how many cars they sell and the price.Doug Emhoff, the husband of Kamala Harris, accused the Trump administration of turning “one of the worst atrocities in history into a wedge issue”, after he and other Joe Biden appointees were removed from the board of the US Holocaust Memorial Museum.Emhoff, who is Jewish and spoke passionately against the rising tide of antisemitism during his time as the second gentleman, said he was informed on Tuesday that he had been removed from the museum’s council.“Let me be clear: Holocaust remembrance and education should never be politicized. To turn one of the worst atrocities in history into a wedge issue is dangerous – and it dishonors the memory of six million Jews murdered by Nazis that this museum was created to preserve,” he said.“No divisive political decision will ever shake my commitment to Holocaust remembrance and education or to combatting hate and antisemitism. I will continue to speak out, to educate, and to fight hate in all its forms – because silence is never an option.”The New York Times reported that the Trump administration also fired Ron Klain, Biden’s first chief of staff; Susan Rice, national security adviser to Barack Obama, and Biden’s top domestic policy adviser; and Tom Perez, the former labor secretary who was a senior adviser to the former president.Trump defeated Harris, then the US vice-president, in November. Emhoff’s law firm recently struck a deal with the Trump administration to avert an executive order targeting its practice, a decision Emhoff is reported to have voiced his disagreement with.Pete Hegseth has abruptly banished the Pentagon’s Women, Peace and Security program as part of his crusade against diversity and equity, dismissing it as a “woke divisive/social justice/Biden initiative” despite it being a signature Donald Trump achievement from his first term.In a post on X, the US defense secretary wrote: “This morning, I proudly ENDED the ‘Women, Peace & Security’ (WPS) program inside the [Department of Defense]. WPS is yet another woke divisive/social justice/Biden initiative that overburdens our commanders and troops – distracting from our core task: WAR-FIGHTING.”Hegseth added that the program was “pushed by feminists and left-wing activists”, claiming: “Politicians fawn over it; troops HATE it.”But the decision is raising some eyebrows, as the initiative was established during Trump’s first administration when he signed the Women, Peace and Security Act in 2017, making the US the first country in the world to codify standalone legislation on the matter.The Trump campaign even courted female voters by citing the initiative as one of its top accomplishments for women on its website.Attempting to square this circle, Hegseth later claimed the Biden administration had “distorted & weaponized” the original program. “Biden ruined EVERYTHING, including ‘Women, Peace & Security,’” he insisted.The Senate has confirmed billionaire investment banker Warren Stephens to be ambassador to the UK, backing Donald Trump’s nominee by 59 to 39.Stephens is chair, president and CEO of Stephens Inc, a privately owned financial services firm headquartered in Little Rock, Arkansas. He is a longtime contributor to Republican candidates, including Trump, having donated millions of dollars to support Trump’s campaigns and 2025 inauguration fund.Asked about negotiations with Congress over tax legislation, Trump said: “The Republicans are with us. I think we’ve got the big beautiful deal that’s moving along, and I think we’re going to have it taken care of.” He added:
      A very important element that we’re working on now, more important than anything with the border in good shape, is the fact that we want to get, and very importantly, the big beautiful new deal. If we get that done, that’s the biggest thing … And I think we’re going to get it done. We have great Republican support. If the Democrats blocked it, you’d have a 60% tax increase. I don’t think that’s going to happen. We have great support from Republicans. …
      The next period of time, I think, my biggest focus will be on Congress, the deal that we’re working on. That would be the biggest bill in the history of our country in terms of tax cuts and regulation cuts, and other things. More