American Institutions, From Law Firms to Universities, Are Under Siege

The Wire

6 days ago

In 2020, Donald Trump's hardcore supporters mounted the first full-fledged attack on the US republic at his behest—the attempt to overthrow the result of the presidential election. In 2024, that very system has, by re-electing him, enabled him to launch what could be the final assault. In six months alone, Trump has, according to the economic commentator Martin Wolf, 'made huge strides in his war on everything that has made the US successful.'
Institutions are under siege all around, from law firms to universities. Departments like the Immigration and Customs Enforcement (ICE) have been empowered and are acting like a secret police.
The signs of erosion of the US system are also all around. It began with the Department of Government Efficiency (DOGE) which was supposed to streamline bureaucracy and modernise government. Its real aim was to cow down bureaucracy. This was done through dramatic halving of the staff of the department of education and the elimination of the US Agency for International Development (USAID). Another agency that saw steep cuts was the Environment Protection Agency. The broad policy adopted was to hire just one person and fire four. Coinciding with this was the firing of 18 inspectors general who are tasked with oversight over various government departments and the disbanding of the Department of Justice's Public Integrity Section.
Immigration
A characteristic feature of the US was that it was a country of immigrants whose symbol was the Statue of Liberty, which welcomed immigrants from around the world. Today, the short-sighted crackdown on migrants risks significant negative economic and social impact on the US.
Estimates are that in 2023 some 31 million immigrants comprised nearly 19% of the US civilian workforce, with higher labour force participation than the native born workers. They comprise 14 % of construction and healthcare workers, 50 % of agriculture workers and a significant percentage of those in the hospitality sector.
Mass deportation of undocumented immigrants, estimated at 11 million will significantly impact US GDP, increase inflation and cause labour shortages in critical sectors. As it is, the current crackdown has reduced net immigration significantly.
Restrictions on legal immigration (restricting H1B or student visas) will have its own impact. Immigrants also drive innovation where over half of US billion dollar startups have immigrant founders. Actually high-skilled immigration actually boost productivity and wages for native workers.
Tariffs
On the foreign front, the trade war is not over. After pushing 'Liberation Day' tariffs till August 1, Trump has posted letters threatening the EU and Mexico with 30 % tariffs and Japan and South Korea with 25% each. He has threatened Brazil with a 50% rate if it does not end the trial of former President Jair Bolsanaro and has threatened the US northern neighbor Canada with a 35% rate. Trump now says that he is planning tariffs on other nations at 20% double the rate he had proposed in April. Deals have been reached with just a handful of partners. With his confidence restored after the US markets have stabilized and the US economy appearing sound, he is back to an aggressive mode.
Trump has boasted as to how tariffs have boosted US revenues, but they have also raised costs for American consumers and businesses as importers pass on the added expense. In other words, they are a tax on Americans that hit the lower income households the most. Theoretically, the tariffs can protect domestic industries and jobs, but since the US has not yet, as per Trump's desire, become a manufacturing powerhouse their impact remains negative.
They will in the short-run trigger inflation and promote export loss through retaliation. High tariffs will create supply chain chaos as they will raise costs for industries reliant on imported parts. High tariffs for example could make critical components for semiconductors or lab instruments could affect research institutions.
High tariffs, along with administrative actions like funding cuts and restrictive policies could severely affect US scientific institutions by increasing costs, reducing resources and pushing talent abroad. This could be accompanied by economic ripple effects such as job losses, reduced innovation affecting US global competitiveness.
Corruption
Some of Trump's actions may border on allowing alleged corrupt practices. It is no coincidence that he has paused the enforcement of the Foreign Corrupt Practices Act (FCPA) through EO14209 of February 10, 2025 on grounds that its 'overexpansion and unpredictable enforcement harms US national security by creating an uneven playing field for American companies. Looked at another way, this opens the way for US companies to indulge in bribery that could benefit Trump companies that are operating internationally in Saudi Arabia, UAE, Vietnam and elsewhere.
Trump's own conduct as President has been questionable. This includes the pausing of the FCPA, as well as profiting from cryptocurrency ventures, accepting a $ 400 million jet from Qatar.
Three days before his inauguration as President, on January 17, 2025, Trump launched a cryptocurrency memecoin, '$TRUMP' of which he owns 80 % whose valuation rose to $5 billion in hours. Two days later the $MELANIA memecoin was issued. In April 2025, the top 20 holders of the coin were offered dinner with the President with the top 25 getting a special VIP White House tour. This boosted the value of the coin further as buyers spent $140 million to bag an invite. Trump companies make money on trading activities of the memecoin and estimates say they have so far made around $ 400 million.
The Qatar gift of the $400 million Boeing 747 coincided with a $5.5 billion Trump Organisation golf resort project in Qatar funded by a state owned Qatari firm.
In April days after the Pahalgam attack Pakistan partnered with World Liberty Financial (WLF) a company which is 60 per cent owned by President Trump's sons and son-in-law to develop its own crypto currency through a newly formed Crypto Council.
Educational and scientific institutions
An even more important assault has been on the US educational and scientific establishment. As is well known the US educational system is perhaps the most prized asset of the country which has made the country what it is today. The relationship between Universities and government goes back to the 19th century when land grants were made to promote science and agriculture. As of 2021, the government gave anywhere up to $ 180 billion to universities and colleges for a variety of projects. The institutions attract the best and the brightest from across the world, many of whom stay behind and contribute to America's growth.
Trump efforts have included the banning of foreign students from entering the US to attend Harvard. The university has nearly 7,000 international students constituting 25 % of its student body. More than 1.1 million, many from India make up the international students enrolled in US colleges and universities. Besides talent, they also act as a financial life-line for the institutions.
As of this year, the government has cancelled about $ 11 billion worth of University research funding. The Administration cut $400 million in federal funding to get Columbia University to accept its diktat on issues like anti-semitism, reviewing academic programmes such as Middle-eastern Studies and hiring campus police. Harvard has temporary court injunctions against the Trump Administration's cancelling of $ 9 billion in federal funding and contracts. Billions in research grants have been canceled or frozen across institutions like John Hopkins, University of Pennsylvania and others. Over 60 universities are being investigated on charges of anti-semitism and face potential fund cuts.
The administration has slashed grants for the National Institutes of Health (NIH) and the National Science Foundation (NSF). Over 400 NSF grants on subjects like cancer, diabetes and AI have been cut.
The future
Since World War II, the United States has been the greatest power on earth. Since the end of World War II it not only led the process of globalisation by pushing for the creation of the United Nations, the International Monetary Fund and World Bank, and helping give shape to the World Health Organisation, World Trade Organisation, the International Atomic Energy Agency and helping shape the international order through the Geneva Conventions, Nuclear Non-Proliferation Treaty, Paris Agreement on climate control.
The US rise was also marked by a slow but distinct trend towards self-improvement. It fought a Civil War to end slavery, and then in the mid-1990s, it saw a Civil Rights movement to empower the deprived Black Americans. It also played a significant role in shaping international treaties and frameworks to promote women's rights.
But all that seems to be a distant memory now as Trump's America seeks to undo domestic advances on the rights of the Blacks, women and LGBTQ people, trash the advances made in the global trading regime and in fighting climate change.
It seems determined to self-harm by attacking its own vaunted universities and research institutions, as well as its government system which has served it so well. Perhaps the most pernicious assault is on the immigration system which has been tantamount to a foundational principle of the republic. Next year is the 250th anniversary of the Republic, and it would be interesting to see how the pluses and minuses of the US as a nation add up.
Manoj Joshi is a distinguished fellow with the Observer Research Foundation in Delhi.
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