The Dictatorship
DOGE is a trap, and Democrats can’t afford to fall for it
President-elect Donald Trump’s announcement that Elon Musk and Vivek Ramaswamy will head a new Department of Government Efficiency (DOGE) has met with plenty of scorn from Democrats. That’s not surprising: We live in polarized times. Whatever the issue, the partisan instinct is to take a position antithetical to the opposition, and the combination of Trump, Musk and Ramaswamy only intensifies that compulsion.
But when it comes to efficiency, Democrats must refuse to take the bait. Democrats cannot be cornered into defending harmful and unnecessary bureaucracy, red tape and wasteful spending. Instead, the party should fight for a very different vision of efficiency: government dedicated to swiftly and dramatically improve the lives of ordinary people and protect them from corporate profiteers — in other words, from exactly the kind of people who will lead the DOGE initiative and populate the incoming Trump administration.
Musk and Ramaswamy are nothing if not ambitious. They want to “cut the federal government down to size” and have set their sights on slashing up to $2 trillion, or about 30% of the federal budget. Their proposals for how to do this include cutting funding for scientific research, laying off federal employees at random, and trimming defense spending.
More likely than not, DOGE’s proposals will align with the goals of Project 2025.
Given that the military budget grew substantially under President Trump’s first term, the Pentagon will probably be safe. But we can’t say the same for other areas that make up the majority of government spending, including entitlements such as Medicaid. More likely than not, DOGE’s proposals will align with the goals of Project 2025, the conservative plan to radically remake the government by privatizing essential public services and concentrating power in the executive branch. After months of denying any knowledge of Project 2025, Trump has proposed one of its architects, Russell Vought, to head the Office of Management and Budget. This means things like replacing career civil service workers with Trump loyalists, gutting regulations, rolling back civil rights and labor protections, abolishing the Department of Education, and more.
Of course, Republicans salivating over the chance to slash government isn’t new. Remember anti-tax activist Grover Norquist saying he wanted to “reduce government to the size where I can drag it into the bathroom and drown it in the bathtub”? What’s new is how the Department of Government Efficiency repackages cruel and unpopular conservative ideology in meme-covered bottles, rebranding austerity, corporate deregulation, and cuts to public welfare as hip and edgy. Even the acronym DOGE is a reference to Dogecoin, a jokey, dog-themed cryptocurrency. Indeed, it isn’t even a real government department, but an advisory committee. DOGE, in other words, is a fake department named after a fake form of money.
And despite Musk and Ramaswamy’s images as men of bold new ideas, DOGE isn’t even a novel proposal. In 1982, Ronald Reagan created the Grace Commission, run by businessman Peter Grace, who vowed to “root out inefficiency” with the help of a counsel of corporate executives. Reagan promised to “drain the swamp” (a phrase Trump would adopt), but government bureaucracy has only grown in the decades since. Much of it, ironically, has been put in place by Republicans because they abhor the idea of the “undeserving” getting public assistance — think poor single mothers receiving food stamps or the sick and disabled not having to worry about deductibles or co-pays.
Ordinary people, however, are hardly as hostile to government or worried about “free riders” as the right-wing ideologues about to take power in Washington. What most folks want is for the government to work well and to work for them. Plenty of polls show that majorities of voters want the state to be more involved in health careeducationprotecting the planetregulating businessand more.
Americans like big government when it delivers. Much of my family lives in Buncombe County, North Carolina, the epicenter of Hurricane Helene’s recent destruction. No one complained when public officials managed to repair the storm-damaged water infrastructure in record time, condensing a job that would normally take a year or more into less than two monthsby working around the clock and finding creative ways to problem-solve. That’s one model of what truly efficient government looks like, and it’s the kind of government efficiency that Democrats should stand for.
Means-testing programs have been shown to waste people’s time and drive up costs.
Imagine public transportation that is clean, fast, on time, and free. Or being able to quickly and seamlessly e-file your taxes in a matter of minutes, based on employer-submitted earnings, the way people in many industrialized countries do. Or what about the efficiency of knowing your kids could go to excellent public colleges without having to fill out broken FAFSA forms or rely on impossible-to-pay student loans? Why should being able to apply for unemployment benefits or emergency disaster relief through functioning websites, and receiving swift and adequate assistance, seem like a pipe dream?
Efficient government programs should be high quality and, whenever possible, universal. Means-testing programs have been shown to waste people’s time and drive up costs by adding layers of unnecessary bureaucracy. Our byzantine profit-driven health care system, for example, would be much more efficient if it was replaced by a well-funded public option, one that would free patients from having to file claims or fight to have life-saving treatments covered. Today, administrative costs make up around a third of all U.S. health care expenditures. Americans spend nearly five times more per person on administration than Canadians pay.
This type of wasteful spending should be reallocated. That is what anti-war and racial justice advocates have been saying for years. Why not trim bloated military and police budgets and reinvest money saved in revenue-starved schools, mental health services, libraries, jobs and more? We need the government to build green housing, high speed rail, renewable energy infrastructure, and we need it done fast — not bogged down by proceduralism, paperwork and pointless delays.
Sadly, improving government isn’t what DOGE is about. Consider Musk’s legacy at Twitter. Sure, he eliminated six letters when he changed the name to X (talk about efficiency!) but he also laid off about 80% of the staffincluding those who worked in vital areas like security and fraud. He even cut the janitorial service, reportedly forcing at least one employee to bring their own toilet paper to work and rig it up using a coat hanger. Today the company is worth roughly 20% of what Musk paid for it. X may still be semi-functional, but it’s a social media site, not an essential service. Unlike the Centers for Disease Control and Prevention or the Food and Drug Administration, we’d all be fine if X collapsed.
In the end, when Trump and his buddies say “efficiency” what they really mean is “boondoggle.” As Musk puts other people’s jobs on the chopping block, his net worth has ballooned to over $300 billion. With improved access to federal funding for his vehicles and spaceships — and less pesky government oversight from his enemies at the National Highway Traffic Safety Administration and Federal Trade Commission — he’s poised to become even wealthier.
Every American, no matter who they voted for, deserves better than DOGE. Democrats don’t need to pretend to be for small government, but they certainly shouldn’t embrace inefficient government. What they need is a clear, compelling vision of how government can and should efficiently be used for good.
The Dictatorship
The decades-long resilience of Cuba’s government in jeopardy over Trump administration’s siege
MIAMI (AP) — The Cuban Communist Party has shown an astonishing resilience over six decades in power.
Whether it’s the United States trade embargo to counter Fidel Castro’s 1959 revolution, or the widespread starvation of the “special period” that followed the breakup of its Cold War patron, the Soviet Union, both U.S. hostilities and calamities of its own making have proven no match for the country’s leadership.
But perhaps none of those crises pose as grave a threat as the one triggered by an all-but-declared naval siege by the Trump administration as it seeks to force regime change in the wake of its successful ousting of Cuba’s longtime ally Venezuelan President Nicolás Maduro.
Even as he fights a war with Iran, President Donald Trump this week said he believes he’ll have “the honor of taking Cuba” soon. While it wasn’t clear exactly what he meant, the U.S. is looking for President Miguel Díaz-Canel to leave power as part of ongoing talks with Havana that could avert some kind of U.S. military intervention.
Without declaring a formal blockade, Trump and his administration have already crippled trade with the island.
People watch the sunset from the Malecón during a blackout in Havana, Monday, March 16, 2026. (AP Photo/Ramon Espinosa)
People watch the sunset from the Malecón during a blackout in Havana, Monday, March 16, 2026. (AP Photo/Ramon Espinosa)
In March, supplies of oil, food and other goods to the island collapsed, with no foreign-originating tankers arriving to Cuba, according to shipping data analyzed by Windward, a maritime intelligence firm. The volume of port calls, which includes tankers moving from one Cuban port to another, averaged around 50 per month in 2025 but fell to just 11 in March – all of them arriving from domestic ports. It was the lowest since 2017. Moreover, little relief is in sight: with no tankers and only three container ships — originating in China, India and the Netherlands — listing Cuba as their intended harbor. On Thursday, The Associated Press reported that two vessels, one of them sanctioned by the U.S., could arrive in the coming days carrying Russian fuel.
The stranglehold is disrupting the lives of Cuba’s 11 million residents, who are enduring massive blackouts and a breakdown in medical care due to a lack of fuel to power ambulances and hospital generators. The country, one of the most heavily reliant in the world on oil to generate electricity, produces barely 40% of the oil needed to cover its energy needs.
(NASA’s Black Marble; AP Interactive/Marshall Ritzel)
Ian Ralby, head of I.R. Consilium, a U.S.-based consultancy focused on maritime security, said the United States’ aggressiveness will not endear Trump to Cubans long eager for change.
“Every Cuban resident is suffering the acute inaccessibility to fuel and all the knock-on consequences in terms of access to food, hospitals and free movement,” he said.
A street vendor tends to a customer on the Malecón during a blackout in Havana, Monday, March 16, 2026. (AP Photo/Ramon Espinosa)
A street vendor tends to a customer on the Malecón during a blackout in Havana, Monday, March 16, 2026. (AP Photo/Ramon Espinosa)
The sudden halt in trade has taken place without the White House reapplying restrictions on exports to Cuba that were last loosened during the Biden administration. Indeed, shipments of U.S.-produced poultry, pork and other foodstuffs to Cuba — which account for the vast majority of U.S. exports to the country — last year soared to $490 million, the most since 2009. Non-agricultural exports and humanitarian donations, much of it to Cuba’s emerging private sector, more than doubled.
But emboldened by the U.S. capture of Maduro, Trump has gradually escalated his rhetoric on Cuba, first suggesting he would pursue “a friendly takeover” of the country and more recently telling conservative allies from Latin America that he would “take care” of Cuba once the war with Iran winds down.
While neither he nor the administration has articulated what exactly the pledge meansthe continued presence in the Caribbean of U.S. warships used in the strike against Maduro has led companies and countries that do business with Cuba to self-police.
“Nobody wants to be on the radar of Trump’s Truth Social account,” said John Kavulich, president of the New York-based U.S.-Cuba Trade and Economic Council.
In the run-up to the U.S. military’s ousting of Maduro during a nighttime raid on Jan. 3, Trump declared that the U.S. would block all Venezuelan oil shipments to Cuba and even seized a few tankers to enforce what it called a “quarantine,” borrowing a term used by President John F. Kennedy during the 1962 Cuban missile crisis. Later in the month, Trump signed an executive order threatening tariffs on any country that supplies oil to Cuba. The warning alarmed officials in Mexico, who have long opposed U.S. policy toward Cuba and where state-run oil company Pemex emerged as a valuable lifeline last year as Venezuelan oil exports declined.
Cuba has upped its rhetoric against what it calls a “fuel blockade” by the U.S. But the Trump administration has disputed that characterization, no doubt aware that according to international law any naval operation seen as punishing civilians is considered an illegal act of aggression outside wartime.
“Cuba is a free, independent and sovereign state — nobody dictates what we do,” Díaz-Canel said in a social media post in January. “Cuba does not attack; we are the victims of U.S. attacks for 66 years and we will prepare ourselves to defend the homeland with our last drop of blood.”
Street vendors chat during a blackout in Havana, Monday, March 16, 2026. (AP Photo/Ramon Espinosa)
Street vendors chat during a blackout in Havana, Monday, March 16, 2026. (AP Photo/Ramon Espinosa)
Amid mounting criticism that U.S. actions are starving Cuba, Secretary of State Marco Rubio has started to walk back some of the administration’s threats. In January, the State Department sent $3 million in food kits, water purification tablets and other humanitarian assistance items to the island. Then last month, the White House said it would allow U.S. companies to send fuel — including Venezuelan oil — to private businesses in Cuba.
The goal, said Rubio, is to encourage the development of the nation’s small private sector.
“The reason why those industries have not flourished in Cuba is because the regime has not allowed them to flourish,” Rubio said when announcing the private sales.
But it’s unclear if any companies have started fuel shipments and critics say the strategy is unrealistic as most Cuban companies lack capital and the Cuban government has a monopoly on gasoline distribution.
John Felder, owner of Premier Automotive Export, a Maryland-based business that has been selling electric cars and scooters to Cuba since 2012, said most Cubans, even in their current anguish, are fearful of what lies ahead.
“U.S. policies have created the most resilient people in the world and yet all they want to do is buy things in Miami like you and me,” said Felder, who just returned from a four-day business trip to Havana and says he’s never seen conditions worse. “They want change but they don’t want to be controlled by the United States.”
The Dictatorship
US intel official says Iran’s regime still intact but refuses to discuss talks with Trump about war
WASHINGTON (AP) — The U.S. government’s top intelligence official told lawmakers Wednesday that Iran’s government “appears to be intact but largely degraded” yet repeatedly dodged questions about whether President Donald Trump had been warned about the fallout from the weeks-old war, including Iran’s attacks on Gulf nations and its effective closure of the vital Strait of Hormuz.
Tulsi Gabbardthe director of national intelligence, also stated in prepared remarks to the Senate Intelligence Committee that U.S. attacks on Iran last year had “obliterated” Iran’s nuclear program and that there had been no effort since then to rebuild that capability.
The statement was notable given Trump’s repeated assertions that a war with Iran was necessary to head off what he said was an imminent threat from the Islamic Republic. Gabbard pointedly said that conclusion was the president’s alone to draw as she declined to directly answer whether the intelligence community had likewise assessed that Iran’s nuclear system presented an imminent risk to the United States.
Watch live the U.S. Senate Intelligence Committee hearing on worldwide threats.
“It is not the intelligence community’s responsibility to determine what is and is not an imminent threat,” she said at one point.
From left, FBI Director Kash Patel, Defense Intelligence Agency Director James Adams III, Director of National Intelligence Tulsi Gabbard, and Acting Commander of the U.S. Cyber Command William Hartman, listen during the Senate Committee on Intelligence hearings to examine worldwide threats on Capitol Hill Wednesday, March 18, 2026, in Washington. (AP Photo/Jose Luis Magana)
From left, FBI Director Kash Patel, Defense Intelligence Agency Director James Adams III, Director of National Intelligence Tulsi Gabbard, and Acting Commander of the U.S. Cyber Command William Hartman, listen during the Senate Committee on Intelligence hearings to examine worldwide threats on Capitol Hill Wednesday, March 18, 2026, in Washington. (AP Photo/Jose Luis Magana)
Democratic Sen. Jon Ossoff of Georgia shot back: “It is precisely your responsibility to determine what constitutes a threat to the United States.”
The testimony came at the first of two congressional hearings held each year to offer the public a glimpse into the largely secret operations of the government’s intelligence agencies and the threats they confront.
The hearings this week take place at a time of scrutiny over the war with Iran and heightened concerns about terrorism at home after recent attacks at a Michigan synagogue and a Virginia university. Wednesday’s hearing also came a day after the resignation of Joe Kent as director of the National Counterterrorism Center. Kent said he could not “in good conscience” back the war and did not agree that Iran posed an imminent threat.
But the hours-long hearing offered few revelations from Gabbard, who repeatedly declined to discuss conversations with Trump, or other senior intelligence officials who testified.
“I am very disappointed,” said an exasperated Sen. Mark Warner, the top Democrat on the Senate Intelligence Committee. “It’s the only one time of year the public gets to hear from you guys in this kind of setting.”
Gabbard deflected questions about intelligence given to Trump
A frequent line of questioning for Democrats: What intelligence, if any, had been given to Trump about the war’s potential consequences? Trump, for instance, has said he was surprised that Iran responded to strikes from the United States by attacking Arab nations and has been contending with the economic impact of the effective closure of the Strait of Hormuz, a body of water connecting the Persian Gulf to the world’s oceans and a vital passageway for oil and gas.
CIA Director John Ratcliffe testifies during the Senate Committee on Intelligence hearings on Capitol Hill Wednesday, March 18, 2026, in Washington. (AP Photo/Jose Luis Magana)
CIA Director John Ratcliffe testifies during the Senate Committee on Intelligence hearings on Capitol Hill Wednesday, March 18, 2026, in Washington. (AP Photo/Jose Luis Magana)
White House press secretary Karoline Leavitt said in a post on X that Trump was “fully briefed” on the possibility of Iran closing the Strait of Hormuz and that the Pentagon has been planning for the possibility of Iran closing it “for DECADES.”
But Trump’s plan to secure the waterway is unclear, especially after he said this week that NATO and most other allies had rejected his calls to help secure it. Iran has said the strait is open except to the U.S. and its allies.
Democrats got few direct answers when they pressed administration officials on what Trump understood about that possibility, with Gabbard saying she would not divulge her conversations with him and CIA Director John Ratcliffe observing that he had been in countless briefings with the president.
“We’re trying to figure out if the president knew what the downside was of the Strait of Hormuz being closed,” said Sen. Mark Kelly, an Arizona Democrat. “Did he know this was going to happen or did he just disregard it?”
Gabbard appeared to try to thread a needle between emphasizing the intelligence community’s views of Iran’s risks — she said, for instance, that internal tensions would continue to increase even if the regime’s leadership remained intact — and not completely echoing the president’s arguments of an imminent threat.
At one point, Warner noted that Gabbard, in her prepared written statement submitted to the committee, said Iran’s nuclear enrichment program had been obliterated in strikes last year, but her opening remarks on Wednesday did not use that language.
He asked whether she had omitted that reference to conform to Trump’s claims of an imminent threat. Gabbard insisted that she had skipped some of her written statement in the interest of time.
FBI Director Kash Patel listens during the Senate Committee on Intelligence hearings on Capitol Hill Wednesday, March 18, 2026, in Washington. (AP Photo/Jose Luis Magana)
FBI Director Kash Patel listens during the Senate Committee on Intelligence hearings on Capitol Hill Wednesday, March 18, 2026, in Washington. (AP Photo/Jose Luis Magana)
Trump has sought to distance himself from Kent. Ratcliffe tried to do the same Wednesday when he was asked whether intelligence supported Kent’s assessment that Iran was not an imminent threat. “The intelligence reflects the contrary,” Ratcliffe said.
Questions about other attacks and Gabbard’s presence at an FBI search
Gabbard and Ratcliffe fielded the majority of questions, but other witnesses included the heads of the National Security Agency and Defense Intelligence Agency, as well as FBI Director Kash Patel, who was pressed about the terrorism threat amid a spate of attacks this month. Those include a man with a past terrorism conviction who opened fire inside an Old Dominion University classroom in Virginia and a Lebanese-born man in Michigan who drove his car into a synagogue.
One subject that did not receive attention: a deadly missile strike on an elementary school in Iran, which people familiar with the matter have said the U.S. likely carried out as a result of outdated intelligence.
Apart from Iran, Gabbard was pressed on her presence at an FBI search in January of the main election hub in Fulton County, Georgia, where agents seized voter data related to the 2020 presidential election. Her appearance at a domestic law enforcement operation raised eyebrows given that Gabbard’s office is meant to focus squarely on foreign threats.
Warner described her appearance there as part of an “organized effort to misuse her national security powers to interfere in domestic politics and potentially provide a pretext for the president’s unconstitutional efforts to seize control of the upcoming elections.”
Gabbard responded that she was present for the search at the request of the president but did not participate, though she later said she helped to oversee it.
The House Intelligence Committee will hold its own threats hearing on Thursday.
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Associated Press writers Mike Catalini, Ben Finley and Michelle L. Price contributed to this report.
The Dictatorship
How Trump’s tariffs have hurt manufacturers instead of helping them
WASHINGTON (AP) — Jay Allen is a fan of President Donald Trumpand voted for him on the belief that the Republican would cut taxes and trim regulations, helping his manufacturing business in northeast Arkansas.
But the tariffs at the core of Trump’s economic agenda have wreaked havoc on his company, Allen Engineering Corp., which makes industrial equipment used to install, finish and pave concrete. The import taxes have raised the costs of engines, steel, gearboxes and clutches made abroad that Allen needs to build power trowels that can sell for up to $100,000 each.
Jay Allen, owner of Allen Engineering Corporation, poses for a portrait Monday, March 16, 2026, in Paragould, Ark. (AP Photo/Kevin Wurm)
Jay Allen, owner of Allen Engineering Corporation, poses for a portrait Monday, March 16, 2026, in Paragould, Ark. (AP Photo/Kevin Wurm)
Allen’s experience embodies a growing body of evidence that the tariffs that Trump said would help American factories are, in fact, squashing many of them. The problem could get worse as the administration scrambles to craft new tariffs to replace the emergency import taxes that the Supreme Court ruled illegal in February.
Allen said he ran his company at a loss in 2025 because of tariffs. His payroll has fallen to 140 workers from a peak of 205. To get by this year, he has hiked prices by 8% to 10%, even though that might mean fewer sales.
“What’s really sad is the unintended consequences of his tariffs are hurting manufacturing in our country,” said Allen. “Unfortunately, the working-class people are getting squeezed.”
A welder is seen inside the Allen Engineering Corporation plant Monday, March 16, 2026, in Paragould, Ark. (AP Photo/Kevin Wurm)
A welder is seen inside the Allen Engineering Corporation plant Monday, March 16, 2026, in Paragould, Ark. (AP Photo/Kevin Wurm)
Manufacturing jobs have declined during Trump’s first year back
Trump’s core rationale for tariffs has been that they would force more factories to open in the U.S. and would generate enough revenue to close federal budget deficits. But that hasn’t materialized.
Factories continue to shed workers, with 98,000 manufacturing jobs lost during Trump’s first full 12 months back in the White House. American companies that foot the bill for tariffs are now suing the Trump administration for more than $130 billion in tariff refunds. Meanwhile, the federal deficit is projected to climb over the next decade.
The White House maintains that construction spending is high, more workers are being hired to build factories, new investments are being made and labor productivity in manufacturing is increasing — which could eventually fuel a factory revival.
“It takes time to get production online, and therefore it will be some more time before we fully materialize the benefits of the president’s policies,” Pierre Yared, the acting chairman of the White House Council of Economic Advisers, said in an email.

Assembly of a riding trowel is seen in the assembly department of the Allen Engineering Corporation plant Monday, March 16, 2026, in Paragould, Ark. (AP Photo/Kevin Wurm)
The Allen Engineering Corporation plant is seen Monday, March 16, 2026, in Paragould, Ark. (AP Photo/Kevin Wurm)
Construction is up — but that’s due to Biden’s bill
Some of the bright spots in construction cited by the White House appear to be the result of programs launched by then-President Joe Biden, a Democrat.
Factory construction spending began to accelerate in 2022 with the anticipation of government support from Biden’s CHIPS and Science Actwhich included big subsidies for computer chip plants. The law was a primary contributor to a historic surge in the annualized rate of construction spending on manufacturing facilities, said Skanda Amarnath, executive director of the economic policy group Employ America.
Construction spending on factories has slipped during Trump’s presidency, but the pace remains relatively high largely because of continuing work on Biden-era projects in Arizona, Texas and Idaho, Amarnath said.
Amarnath has also gone through the interviews regional Federal Reserve banks have held with businesses. Those comments show some companies might expand by taking advantage of Trump’s tax breaks on investments in equipment and new buildings.
But while the pharmaceutical drug sector might be expanding, the comments show no overall uptick in manufacturing because of Trump’s tariffs.
“You don’t get the sense that there is this new manufacturing renaissance underway,” Amarnath said.
An American flag and the Pledge of Allegiance is seen inside the Allen Engineering Corporation plant Monday, March 16, 2026, in Paragould, Ark. (AP Photo/Kevin Wurm)
An American flag and the Pledge of Allegiance is seen inside the Allen Engineering Corporation plant Monday, March 16, 2026, in Paragould, Ark. (AP Photo/Kevin Wurm)
Uncertainty in tariffs has deterred investments
Based on orders, proclamations and other statements, Trump has taken more than 50 actions on tariffs so far — and that tally doesn’t include the tariff threats he regularly makes on social media or in conversations with reporters but hasn’t formally put in place.
The flurry of announcementsreversals, exemptions and legal challenges — as well as Trump’s decision to bypass Congress to impose tariffs — has made it difficult for smaller manufacturing companies to plan.
For example, Allen Engineering imports its 75-horsepower diesel engines from Germany. Building them in the United States would require a $20 million investment — a huge risk if the status of the tariffs is unclear.
Are engine-makers “going to spend that kind of money to move production from Germany to the U.S. when they don’t know what the landscape is going to be in three years?” Allen said. “I don’t know who is going to be in the White House, and what the stance is going to be on these tariffs.”
Joseph Steinberg, an economist at the University of Toronto, said research shows that under the best-case scenario “it would take a decade for manufacturing employment to rise above where it was before tariffs were enacted.”
But Steinberg said “the current situation is nothing like the ‘best case,’” since U.S. trade policy is unsettled and that leaves companies reluctant to expand.
The main entrance to the Allen Engineering Corporation is seen Monday, March 16, 2026, in Paragould, Ark. (AP Photo/Kevin Wurm)
The main entrance to the Allen Engineering Corporation is seen Monday, March 16, 2026, in Paragould, Ark. (AP Photo/Kevin Wurm)
Equipment makers have been hit hard by rising steel costs
About 98% of U.S. manufacturing establishments have fewer than 200 workers, according to Census Bureau data, and don’t have the kind of name-brand recognition or lobbying heft to minimize the damage from tariffs that big players like Apple, General Motors and Ford possess.
The Association of Equipment Manufacturers in February reported that America’s share of global manufacturing severely lags China’s. The group has urged tax credits to offset the expense of tariffs, and specifically called for tariff relief on raw materials, parts and components that cannot be acquired domestically at scale.
Steel tariffs have been a particular concern. Trump imposed them last March and hiked them to 50% in June. They were not affected by the Supreme Court decision.
Trump has credited the tariffs with restoring profits at American steel mills. But they have hurt companies that use that steel, like Calder Brothers in South Carolina, which makes equipment to pave asphalt.
“The steel tariffs were the first thing that got my attention,” said Glen Calder, the company’s president. “My steel pricing jumped 25% two weeks before the tariffs went into effect for domestic steel. The market price just jumped. It has stayed elevated.”
Meanwhile, China’s trade surplus has grown
Part of Trump’s push to expand manufacturing was to help American companies compete against China — a country he plans to visit this spring for talks with its leader, Xi Jinping.
But the U.S. manufacturing trade imbalance rose last year under Trump instead of narrowing. Meanwhile, China’s trade surplus with the world climbed to a record $1.2 trillion.
This trend exposes one of the big problems with Trump’s tariff strategy, said Lori Wallach, director of the Rethink Trade program at American Economic Liberties Project. She noted that he largely bypassed Congress and failed to address gaps in the World Trade Organization’s rules for the trade frameworks that he negotiated with other countries.
Instead of working with partners to ensure there were penalties for foreign manufacturers with abusive labor practices and unfair subsidies, Trump chose against rallying partners to counter China as a unified group. American manufacturers are at a disadvantage, Wallach argued, because there is not a coalition of nations that can impose penalties for currency manipulation, subsidies and schemes to evade tariffs.
“The general revulsion of this administration to international cooperation means they’re trying to do it alone,” Wallach said.
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