The Dictatorship
The most problematic issue with Trump’s manufacturing obsession
Of all the illogical, wildly incoherent and downright bizarre aspects of President Donald Trump’s tariff warthere is perhaps nothing more inexplicable than the White House’s fixation on restoring and reshoring American manufacturing.
It’s hard to think of a worse idea than creating vast economic dislocation to make America a global manufacturing hub.
It’s a goal that is not only unachievable; it’s a terrible idea that ignores America’s key comparative advantage as a provider of global services. This reality, however, has not penetrated the Trump administration’s myopic economic thinking. To listen to the White House talk about tariffs and trade is to hear a message on manufacturing that would have made more sense in the 1970s or 1980s.At a news conference in January, Trump declared that America will “impose new tariffs so that the products on our stores [sic] will once again be stamped with those beautiful words, made in the USA.” Just this week, Deputy Chief of Staff Stephen Miller declared that Trump’s tariffs will “make America the manufacturing capital of the world.”
In testimony before Congress, U.S. Trade Representative Jamieson Greer went even further, stating the president’s view that he wants America “to be a hub for manufacturing and production” and sees trade deficits with other countries as “a manifestation of the loss of the nation’s ability to make, to grow, to build.” According to Greer, “We need to reshore manufacturing.”
No, we don’t.
It’s hard to think of a worse idea than creating vast economic dislocation to make America a global manufacturing hub.
Let’s start with some basic data that seems to have no home in the White House. Manufacturing is a mere 10% of the U.S. GDP and has been steadily declining for years (by comparison, health care is 17.5% of GDP, real estate is around 14% percent and professional and business services account for around 13% of GDP).
The reason is simple: It’s cheaper to manufacture goods overseas, where labor is less expensive. Moreover, automation has steadily decreased the number of American workers needed to produce goods. Even if the White House could reshore manufacturing to the United States, it would hardly produce an employment renaissance.
What is most problematic with Trump’s manufacturing obsession is that it ignores the real engine of U.S. economic growth — services.
Indeed, when Commerce Secretary Howard Lutnick declared recently“We’re going to bring manufacturing back. … Foreign goods may get a little more expensive, but American goods are going to get cheap,” he had this precisely backward. Bringing back American manufacturing by raising tariffs that make foreign exports more expensive will not make goods cheaper. Instead, because of labor costs alone, goods manufactured again in America would become significantly more expensive (according to one estimatemanufacturing the iPhone in the United States would run the price up to $3,500). However, what is most problematic with Trump’s manufacturing obsession is that it ignores the real engine of U.S. economic growth — services.
Service industries, including financial and legal services, health care, education and accounting to real estate, tourism, information technology, software development and media and entertainment, make up 70 percent of the U.S. economy. And they are also a considerable element of America’s export economy. In 2022, services represented 30 % of all U.S. exports.
Yet, this crucial element of the U.S. economy has gone largely unmentioned in Trump’s tariff war. The administration loves to talk about America’s trade deficit but only in terms of manufacturing. It seems the White House is almost embarrassed to talk about the fact that America has a nearly $280 billion trade surplus in services.
One can only assume it’s because Trump can’t conceptualize a product that doesn’t say “Made in the USA”… or perhaps because his understanding of the U.S. economy is stuck in the past — when American companies made cars and televisions or other tangible consumer products.
Whatever the reason, Trump’s obsession with manufacturing is the economic equivalent of missing the forest for the trees. The fact is, even if the U.S. could bring more manufacturing back to the United States, there’s little evidence that it’s what Americans want. If they did, perhaps there wouldn’t have been 482,000 unfilled manufacturing jobs in February.But perhaps the most frustrating element of Trump’s manufacturing focus is that it largely ignores what happened over the last four years in the manufacturing sector. To listen to MAGA-world is to believe that manufacturing in America was decimated during the Biden years. In fact, nearly 800,000 new manufacturing jobs were created during Biden’s presidency (by contrast, the U.S./ health care sector created more than 2.5 million new jobs between the spring of 2020 and March 2024).
This likely doesn’t register with Trump because these manufacturing jobs weren’t in industries like steel or automaking but in semiconductors, battery storage and clean technology. The growth in these industries wasn’t accidental. It was a byproduct of significant pieces of legislation passed in Congress, such as the 2022 Infrastructure Law and the CHIPS and Science Act — both of which had bipartisan support.
The worst part of Trump’s tariff strategy is its incoherence and the acute financial uncertainty it has created.
The new manufacturing industries look very different from those of Trump’s younger days (when he seemed to have formulated his views on trade and tariffs). Rather than producing cars and iPhones or sewing together Levi’s jeans, manufacturing companies today are working with advanced technology, which is befitting an industrialized economy like ours that has left the belching smokestacks of yesteryear behind us. And they are doing more with less. Even as manufacturing employment has fallen dramatically, production has continued to rise.In effect, Trump is trying to revive declining U.S. manufacturing industries at the expense of the ones that are increasingly the most innovative and lucrative. Moreover, his tariff strategy completely ignores the service sector, representing America’s most potent comparative economic advantage on the global stage.
To be sure, the worst part of Trump’s tariff strategy is its incoherence and the acute financial uncertainty it has created. After yesterday’s announcement of a 90-day pause, why would any business want to make a new investment or hire new workers when they don’t know if tariffs will go into effect?
But the real problem with Trump’s tariffs is that his obsession with them reflects a complete misunderstanding of how the economy operates. Voters chose Trump over Kamala Harris because they were concerned about pocketbook issues. The problem is they’ve turned the reins of power over to a president who has no economic clue.
Michael A. Cohen is a columnist for BLN and a senior fellow and co-director of the Afghanistan Assumptions Project at the Center for Strategic Studies at the Fletcher School, Tufts University. He writes the political newsletter Truth and Consequences. He has been a columnist at The Boston Globe, The Guardian and Foreign Policy, and he is the author of three books, the most recent being“Clear and Present Safety: The World Has Never Been Better and Why That Matters to Americans.”
The Senate Judiciary Committee postponed a vote on acting Attorney General Todd Blanche’s nomination, a spokesperson said late Wednesday, as two retiring Republicans on the panel dug in over President Donald Trump’s personal “anti-weaponization” deal with the government he runs.
Sen. Chuck Grassley’s decision to delay the committee vote that had been set for Thursday marks a setback for one of Trump’s highest-profile Cabinet nominees, at the hands of Texas Sen. John Cornyn and Sen. Thom Tillis of North Carolina, a pair of Republicans set to leave the chamber next year.
“Chairman Grassley works to set President Trump’s nominees up for success in committee, not failure. Senators Cornyn and Tillis want written assurances from the Department of Justice regarding the Trump-IRS settlement,” the committee spokesperson said.
Blanche’s nomination to permanently head the Department of Justice needs the support of either Cornyn or Tillis to make it out of the committee to a vote by the full Senate, assuming all Democrats remain opposed.
“Why don’t you call over the Department of Justice and tell them they have one hour and 50 minutes to get me what I asked for,” Cornyn told reporters Wednesday afternoon amid the hardening standoff over his demand that Blanche and the DOJ put in writing a commitment never to pursue the president’s prized “anti-weaponization” fund, and to clarify the terms of Trump’s personal deal with the Internal Revenue Service.
Tillis told MS NOW that the conversations were complicated by the need for the Justice Department to get “several parties” to agree on the language of the statement Cornyn and Tillis are seeking.
“What I’ve advised the chair, and I would assume Senator Cornyn said something similar, is that we’re not prepared to vote yes yet,” he added.
“The Department has been in regular communication with Committee members for weeks, and we look forward to continuing to work productively with Senators to address any concerns,” a Justice Department spokesperson said in response to the decision to postpone the committee vote.
Cornyn was set to meet with Blanche on Wednesday morning, but the meeting was called off after Blanche failed to meet the senator’s demand for written proposals to modify the controversial settlement agreement he brokered between Trump and the IRS. The Republican senator is set to leave Congress when his term ends in January after a bruising May primary loss to Texas Attorney General Ken Paxton, Trump’s chosen candidate.
“Maybe John Cornyn’s upset with me because I didn’t endorse him,” Trump told reporters Wednesday afternoon in the Oval Office. “I don’t know what it is, but I haven’t heard that there’s a problem. I heard (Blanche) is going through quite nicely.”
Cornyn made clear to Blanche during his confirmation hearing that he will not get his support until he agrees to reopen and modify the settlement. Due to the committee’s narrow Republican majority, one GOP “no” vote is enough to sink Blanche’s nomination.
The senator has asked Blanche to provide proof that the proposed nearly $1.8 billion “anti-weaponization” fund established as part of the deal between Trump and the IRS is formally dead, and he has also demanded Blanche narrow the tax audit immunity provisions the settlement afforded to Trump and his family.
Blanche has publicly stated that his department has dropped the fund, but he and the DOJ have dodged requests from Cornyn and a federal judge to put that in writing.
After announcing his meeting with Blanche would not take place Wednesday morning, Cornyn told reporters that changes from Blanche “in a modified release form” would be acceptable, but that “for some reason … they simply refuse to do it,” referring to the DOJ.
Shortly after the meeting was called off, a Justice Department official told MS NOW that the department “provided a written proposal to Senator Cornyn’s staff yesterday following ongoing discussion with both the Committee and the Senator’s office.”
Cornyn said that proposal was “not responsive” to his demands because it did not address the tax audit immunity provisions in the settlement, one of his key demands.
In May, Blanche signed an addendum as part of the deal that granted Trump, his family and his businesses immunity from pending IRS tax audits. That agreement, which has been decried by former IRS officials and legal experts as unlawful self-dealing, is being contested in federal court.
Cornyn noted that Blanche testified under oath that he could meet the request during his confirmation hearing.
“Maybe they think I’m just going to give up or you know, go along, but they’re mistaken,” Cornyn said when asked why he thinks the DOJ could be slow-walking his request.
Kevin Frey contributed to this report.
Sydney Carruth is a breaking news reporter covering national politics and policy for MS NOW. You can send her tips from a non-work device on Signal at SydneyCarruth.46 or follow her work on X and Bluesky.
Mychael Schnell is a reporter for MS NOW.
Ebony Davis is a breaking news reporter for MS NOW based in Washington, D.C. She previously worked at BLN as a campaign reporter covering elections and politics.
When Israeli Prime Minister Benjamin Netanyahu arrived this week for his tour of Washington, he may have had a mission in mind.
Netanyahu needed to overcome his newly diminished stature and waning influence over his once close friend President Donald Trump as both leaders grapple with the unpopularity of a war they started together and is escaping their control.
His meeting at the White House with Trump on Tuesday, which was closed to the press, was the first face-to-face encounter between the two allies since the U.S. and Israel launched a joint attack against Iran on Feb. 28.
Trump gave him a muted welcome and afterwards simply described the meeting as “very good.” “Obviously, many important subjects were discussed,” the president wrote on Truth Social.
Rather than an intimate one-on-one setting, the Oval Office was full of top U.S. officials — Vice President JD Vance, Secretary of State Marco Rubio, Treasury Secretary Scott Bessent, Secretary of Defense Pete Hegseth, Chairman of the Joint Chiefs of Staff Gen. Dan Caine, and special envoy Steve Witkoff.
But Netanyahu continued the full court press on the Trump administration.
Over the course of two days, in addition to seeing Trump and attending Sen. Lindsey Graham’s funeral at the Capitol, Netanyahu also met separately with Vance, Hegseth, and Rubio, White House and Israeli officials confirmed to MS NOW.
The Israeli prime minister’s slate of meetings with key U.S. national security officials comes at a pivotal moment in the Iran conflict as tensions escalate in the region and Americans increasingly sour on the war. A recent Quinnipiac poll shows 60% of American voters opposing U.S. military action against Iran and 74% against sending U.S. ground troops into Iran.
Not only does Trump face pressure as Republicans face an uphill battle to retain congressional control in this fall’s midterms, Netanyahu’s fate as prime minister is at stake in Israel’s upcoming September elections – and he can’t afford to lose Trump’s favor.
The talks largely focused on what to do next as Iran continues to menace shipping in the Strait of Hormuz and retaliate against American bases in the region and launch attacks on Gulf allies.
According to a senior Israeli official who was granted anonymity to describe the closed-door meeting, President Trump and Israeli Prime Minister Netanyahu did not come to a final decision after discussing three paths forward: get a “good deal” focused on Iran’s nuclear program and enriched material, have no deal and instead continue the blockade and economic pressure, or take escalated military action.
But Netanyahu did not tell Trump what he should do – nor did he express a preference.
The senior Israeli official noted Netanyahu has not ruled out diplomacy – as long as it is coupled with “very strong pressures,” calling the push to dismantle Iran’s nuclear program “a contest of will and a contest of force.”
“There are ways of squeezing them and squeezing them and squeezing them and negotiating at the same time,” the official said.
Netanyahu did not present President Trump with new intelligence regarding the underground Iranian nuclear facility Pickaxe Mountain, per the senior Israeli official, noting the U.S. and Israel already are constantly sharing intelligence – and know where Iran’s highly enriched material is. “We don’t think it’s moved, and I think we have a pretty good grasp on that,” the official said.
During their meeting on Tuesday, Trump and Netanyahu discussed ways Israel and the U.S. can work together to stop Iran’s nuclear program and get the Strait of Hormuz open to maritime trade, the senior Israeli official said.
The two leaders also discussed a third goal: to continue to undermine the Iranian regime and “possibly create future conditions for a change in that area.” U.S. officials have backed away from pursuing paths that would overthrow the current leadership, but Netanyahu still believes that could happen.
“The chasm that has been created between the people and the regime is not about to be closed,” the senior Israeli official said of Netanyahu’s thinking.
Netanyahu advised Trump in February that Israeli intelligence indicated launching strikes against Iran would lead to the toppling of the Islamic Republic’s regime – and five months later, the slain ayatollah’s son retains power with a close circle of hardliners, calling into question the accuracy of Israel’s intelligence apparatus.
But the senior Israeli official said at the time, Netanyahu did not promise the Iranian people would take fate into their own hands following a coordinated attack. Rather, he chose his words carefully and said that an attack could create conditions to “advance the probability or the possibility that that would happen.”
The conditions needed for the Iranian regime to fall, “did not materialize,” the official told MS NOW, adding, “not for lack of insight, but for either operational failure or decisions that were made.”
Despite Netanyahu insisting Israel and the U.S. are on the same page, differences still remain: the sale of F-35 fighter jets to Turkey and the Saudi nuclear arrangement did not come up during Wednesday’s White House meeting, according to a second Israeli official granted anonymity to describe sensitive discussions.
Meanwhile, the conflict continues to spread, with an Iranian drone attacking a U.S. gas storage tanker off the coast of Egypt on Wednesday.
Trump indicated he would not let Iran’s latest action slide, telling reporters on Wednesday that the U.S. would retaliate against Iran even as he leaves room for diplomatic talks to resume.
“It’s our turn, and we’ll see if we get there with an agreement at some point,” Trump said. “But we’re going to hit them very hard.”
As for what it would take for Israel to join the U.S. strikes, the senior Israeli official said that if Israel is attacked by Iran, “We will respond very, very forcefully and very quickly. And I think Iran would make a great mistake.”
Julia Jester covers politics for MS NOW and is based in Washington, D.C.
International rage over FIFA’s close ties to President Donald Trump has reached a fever pitch after soccer’s governing body announced a plan to sell a significant stake to an investor group led by Joshua Kushner, the brother of Trump’s son-in-law.
The president and his family have all but turned the White House into their personal piggy bank. And FIFA — which has its own sordid history of corruption — seems to have made itself a party to Trump’s self-enrichment under Gianni Infantino’s leadership, such as by paying for space inside Trump Tower in New York. (The organization has defended the office rental as a World Cup outpost.)
Soccer is seen by many as a unifying game. But Trump’s incorporation of FIFA into his political dynasty is threatening that idea.
FIFA has announced plans to sell a large minority stake in a new company that will run its main events, including the World Cup and Club World Cup, as part of a plan to triple the amount of development money it dishes out to its 211 member associations.
Under the proposals — which are subject to approval by a majority of those national associations and FIFA’s 37-member council — a new entity called FIFA Forward Enterprises (FFE) will take over all commercial operations, while FIFA remains the game’s global governing body and retains a majority stake in FFE.
A press release from FIFA confirmed the plans and said Thrive Eternal, which was launched by Joshua Kushner, is expected to lead the investment group that would control FIFA Forward Enterprise. FIFA did not clarify why Thrive Eternal was selected, and Kushner was already dabbling in sports.
But Trump basically has already given son-in-law Jared Kushner carte blanche to dictate U.S. foreign policy in the Middle East while simultaneously hatching business plans in the region. (Jared Kushner has denied any conflicts of interest.)
Joshua Kushner reportedly has been a major donor to Democrats. But, predictably, the idea of another Kushner becoming financially entwined with the World Cup — the world’s most popular sporting event — and basically being dropped into a position of global significance isn’t going over well. Several other soccer governing bodies have expressed concerns, including Europe’s UEFA.
“This crosses a line that football’s governing institutions should never cross,” UEFA said in a statement about The Athletic’s report, adding: “The soul and governance of football are not assets to trade — especially with zero transparency as to who gains financially. None of us are the owners of football. It is not FIFA’s to sell.”
Democrats on the House Judiciary Committee also rebuked the plan, writing on X: “Apparently the fake Peace Prize and giant lease with Trump Tower weren’t enough — now Infantino performs a kickback hat trick by pursuing a multibillion-dollar deal with Jared Kushner’s brother to sell ownership stakes in the World Cup to private investors.”
FIFA, Donald Trump’s favorite corrupt racketeering enterprise in world sports, is now going directly into business with the Trump family!
Apparently the fake Peace Prize and giant lease with Trump Tower weren’t enough—now Infantino performs a kickback hat trick by pursuing a… https://t.co/knSZibuMea
— House Judiciary Dems (@HouseJudiciary) July 28, 2026
Rep. Jamie Raskin, D-Md., has already launched an investigation into the FIFA leader’s relationship with the Trump administration, while dozens of European lawmakers — citing concerns about “potential breaches of political neutrality” — have called for the FIFA Ethics Committee to investigate Infantino. This new proposal seems unlikely to assuage those concerns.
But what it does seem likely to do is fuel global anger toward the U.S. — the kind that has been growing since Trump retook office.
And when you consider that, it’s truly remarkable how the same MAGA movement whose members whined for years about politics mixing with sports is now in lockstep with a president who seems dead-set on casting his shadow over every sports event he can.
This post on X basically sums up the foul stench around FIFA’s latest proposal.
Sepp Blatter was Infantino’s predecessor as FIFA president and oversaw the organization amid some of its many scandals. When heof all people, is warning about how Trump and Infantino’s relationship is “deeply damaging” soccer, it’s a sign of how far FIFA has descended into the gutter.
Ja’han Jones is an MS NOW opinion blogger. He previously wrote The ReidOut Blog.
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