US Accepts Qatar Luxury Jet to Serve as Trump's Air Force One
The Defense Department formally accepted a luxury Boeing Co. 747-8 jumbo jet from Qatar to temporarily serve as the new Air Force One for President Donald Trump, one of the biggest foreign gifts ever given to the US government.
The move fulfills Trump's desire for a new presidential aircraft, after years of delays in the US government's contract with the aerospace giant for new planes to serve that role. Still, the gift raises ethical and security concerns, with politicians from both parties questioning the president's decision.
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Politico
6 minutes ago
- Politico
Trump wants a manufacturing boom. The industry is buckling.
President Donald Trump is vowing to spark a manufacturing boom with tariffs to protect American workers and industry. So far, it's manufacturers that have borne the brunt of the pain. The president's surprise decision to raise tariffs on imported steel and aluminum to 50 percent will hit domestic manufacturing just as a new report shows the industry is already contracting. Uncertainty about where tariff rates will ultimately land — or where they'll be applied — has forced businesses to make hard decisions that could cut into both profits and hiring. And a leading trade group on Thursday called on Trump to give the companies a break on the tariffs. 'For a president who is intent on building U.S. manufacturing, the tariff strategy he's laid out is remarkably short-sighted,' said Gordon Hanson, a Harvard Kennedy School professor whose groundbreaking 2016 research work, 'The China Shock,' was among the first to sound the alarm about the threat to American industry. 'It fails to recognize what modern supply chains look like.' 'Even if you're intent on reshoring parts of manufacturing, you can't do it all,' he said. 'Steel and aluminum are part of that.' If Trump's tariffs fail to result in a manufacturing renaissance — a central focus of his presidential campaign — it could weaken the prospects of a GOP coalition that's increasingly reliant on working-class voters who supported his protectionist trade policies. But as unanticipated tariffs continue to drive up input costs for companies that need steel and aluminum for production, the warning signs emanating from manufacturers are getting louder. An index published this week by the Institute for Supply Management, which tracks manufacturing, slipped for the third straight month in May as companies made plans to scale back production. A quarterly survey conducted by the National Association of Manufacturers reported the steepest drop in optimism since the height of the Covid-19 pandemic, with trade uncertainty and raw material costs cited as top concerns. Federal Reserve data this month reported weaker manufacturing output. The manufacturers' association on Thursday urged Trump to develop a 'speed pass' that would allow companies to avoid costly new duties on imported raw materials and components that are essential to U.S. producers. 'The steel and aluminum tariffs are almost custom-made to hurt American manufacturing,' said Ernie Tedeschi, a former top Biden administration economist who's now with the Yale Budget Lab. Trump and top administration officials argue that tariffs will encourage investment in domestic manufacturers, which should lead to better-paying jobs, a more resilient economy and more secure supply chains. Exports climbed in April as the president's tariffs took hold, which contributed to an eye-popping decline in the U.S. trade deficit. Indeed, the overall economy remains solid, and businesses are continuing to hire, according to Friday's jobs report for May. Despite the trade headwinds, employment in the manufacturing sector has remained steady since Trump took office. 'As the president says, if you don't make steel, you can't fight a war. He's protecting that industry and bringing it back,' Commerce Secretary Howard Lutnick told Senate lawmakers this week. 'You're going to see more steel and aluminum furnaces and mills in the history of this country get built over the next three years.' The White House did not respond to a request for comment. Trump welcomed the monthly jobs report, posting on Truth Social: 'AMERICA IS HOT! SIX MONTHS AGO IT WAS COLD AS ICE! BORDER IS CLOSED, PRICES ARE DOWN. WAGES ARE UP!' Still, domestic manufacturers who rely on international supply chains for critical steel and aluminum inputs will face tough choices if they want to maintain their profits while keeping output steady. 'Higher costs are expected. Higher input prices. The question is, what do you do with those costs? How much can you pass along to the consumer? How much can you negotiate with your suppliers?' said Andrew Siciliano, a partner at KPMG who leads the consulting firm's trade and customs practice. The challenges posed by the increase in steel and aluminum tariffs are particularly acute because it's far from clear whether domestic suppliers will be able to meet the demands of domestic manufacturers. Almost half the aluminum used in the U.S. last year came from foreign sources, according to federal data, and roughly a quarter of all steel is imported. Either way, 'input costs are going to be higher,' Siciliano said. 'If they pass it on, it could affect demand. If they don't pass it on, it could affect profitability.' That isn't to say manufacturers won't benefit from tariffs in the long term. To the extent that Trump's overall tariff regime limits imports, U.S.-based industrial production could expand to address unmet demand. The Budget Lab's analysis of Trump's tariff regime — which includes the 50 percent tariffs on steel and aluminum — projects that manufacturing output could grow by 1.3 percent over the next five years if existing import duties are left in place. But Tedeschi cautioned that growth may exclude segments like electronic and semiconductor production — which tend to generate higher incomes for workers. Meanwhile, output in other sectors like construction or agriculture would likely contract. Julia Coronado, founder of MacroPolicy Perspectives, also said the flurry of new import duties may prompt some manufacturers to actually move their manufacturing facilities offshore rather than subject their supply chains and production processes to multiple tariffs. 'If I have to assemble a bunch of parts and inputs, why don't I just don't do that on the Canadian or Mexican side of the border and then pay the tariff on the final good?' she said. An even bigger challenge may involve finding and training workers who can staff up any facilities that reshore. Most Americans work in the service sector and, to the extent tariffs lead to reshoring, those facilities will likely rely heavily on automation, according to economists at the Bank of America Institute. Finding qualified workers in the U.S. is either too difficult or too expensive. 'Whatever manufacturing production comes back to the U.S. will require far fewer jobs than 30 or 40 years ago,' Hanson said. 'It's just the way the world has gone.'
Newsweek
12 minutes ago
- Newsweek
How rising US national debt impacts the average American
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The federal debt in America is rising, and financial analysts are warning that it could have a substantial impact on everyday Americans. The U.S. national debt stands at 36.9 trillion today. While many Americans may not think about how the federal deficit affects their lives, America's excessive borrowing can drive up interest rates and increase the risk of inflation. Why It Matters The federal debt plays a role in interest rates, which can have significant effects on the larger U.S. economy. If the government is forced to print more money to handle its debt, inflation can skyrocket for Americans as well. U.S. President Donald Trump delivers remarks during a meeting with German Chancellor Friedrich Merz in the Oval Office at the White House on June 05, 2025 in Washington, DC. U.S. President Donald Trump delivers remarks during a meeting with German Chancellor Friedrich Merz in the Oval Office at the White House on June 05, 2025 in Washington, To Know Concerns over the budget deficit have been increasing for Americans in recent years. A 2023 Pew Research survey found that 57 percent believed reducing the budget deficit should be a 'top priority,' a 12-point jump from just the year prior. Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, said not all deficits are bad, but America's has surpassed that level. "A government deficit often leads to a private sector surplus—meaning more money in the hands of consumers. That dynamic can work well as long as inflation stays in check and interest rates remain low, keeping the cost of servicing the debt manageable," Thompson told Newsweek. "Right now, however, the cost of servicing the debt has surpassed even the cost of funding our military—and it's only getting worse as interest rates stay higher for longer." For the average American, the debt will likely be a "pain point" as investors demand a higher rate of interest on their economic debt, forcing mortgage rates higher. "The tax debate is pivotal since the majority of government inflows come from those very taxes, and if we continue to lower taxes or keep them low, we won't have the money to cover the outlays, which will invariably increase. This will have to be resolved with higher future taxes to bring down the deficit—effectively robbing the future to pay for today," Thompson said. With President Donald Trump in office, many are waiting to see how new Republican leadership could affect America's looming debt pile. In the Pew Research poll, Republicans were far more likely to prioritize reducing the debt at 71 percent compared to Democrats at 44 percent. A more recent Gallup poll discovered that 53 percent of Americans say they worry about the budget deficit a "great deal" in March. Meanwhile, 28 percent said they worried about it "a fair amount." However, the debt is already likely hitting Americans' wallets, said Michael Ryan, a finance expert and the founder of "That grocery trip that used to run $100? We're talking about losing $300 to $1,250 in actual buying power over the last few years," Ryan told Newsweek. "It's not just you, it's not just inflation. It's partly because when the government keeps borrowing money, it drives up prices for everything." Those looking to buy a house will also face higher mortgage rates as a result of the deficit, but fixing it would likely require higher taxes, according to Ryan. "The job market will get tighter," Ryan said. "When businesses have to pay more in taxes and deal with higher interest rates, they hire fewer people and give smaller raises. So even if you keep your job, that promotion or raise you're hoping for? It will be harder to come by." Retirement accounts would also likely experience a "rollercoaster" as the government gets back on track. "We're basically stuck between a rock and a hard place. Keep ignoring the debt, and it slowly strangles everything. Higher prices, fewer opportunities, less money in your pocket," Ryan said. Trump's One Big Beautiful Bill is predicted to add $2.4 trillion to the U.S. federal debt, likely exacerbating the concerns over interest rates and the larger economy. "The Congressional Budget Office just confirmed that Donald Trump's Big Beautiful Bill is, in Elon Musk's words, a 'disgusting abomination,'" Sen. Elizabeth Warren (D-MA) said in a statement. "This independent analysis blows a hole through Congressional Republicans' lies—this bill will rip health care away from millions of people and still jack up the debt to fund trillions in tax breaks for billionaires and billionaire corporations." When it comes to Americans' views on Trump's proposed tax cuts in the past, 52 percent said that the tax cuts in 2017 would increase the deficit in the long run because the government would take in a lot less money that it won't be able to recover. Meanwhile, 38 percent believed the tax cuts would decrease the deficit in the long run because they would stimulate the economy and bring in more money for the government, according to Gallup. What People Are Saying Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "Government spending is contributing to our national debt as tax revenues and economic growth aren't keeping pace with rising outlays, leading to increasing deficits over time." Michael Ryan, a finance expert and the founder of told Newsweek: "You know that feeling when looking at your credit card bill, wondering how you're gonna dig out of this hole? That's basically where we are as a country. And just like when you're drowning in debt at home, we've got two main choices: make more money or spend less." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "The national debt is in many ways a phantom thief, as it slowly steals away buying power by being a key contributor to inflation over time even if Americans don't physically see its effects. In past decades, the impact of the deficit was more muted, as relatively small amounts of additional funding were needed to keep the government functional. In recent years, however, this has escalated dramatically due to multiple wars, the Great Recession, and the pandemic which called for additional government spending." What Happens Next As the debt continues to grow, future Americans may suffer, financial analysts warn. "The longer-term implications may be dire for future generations, having to be saddled with monumental debts they cannot outrun and becoming a debtor nation," Thompson said. "I know it sounds like some Orwellian nightmare, but if we continue down this path, this is the future we are destined to become. All once-great nations come to an end—it will just happen more quickly for the U.S. if this continues." For many Americans, it's a situation of "the longer we wait, the more painful it will be," Ryan said. "The debt isn't some abstract problem for future generations to worry about," Ryan said. "It's in your grocery bill today, your mortgage payment this month, and your tax return next year. And when we finally get around to dealing with it—and we will, because math always wins in the end—it's gonna cost you even more."
Washington Post
16 minutes ago
- Washington Post
Republicans urge Donald Trump and Elon Musk to end their feud
WASHINGTON — As the Republican Party braces for aftershocks from President Donald Trump's spectacular clash with Elon Musk, lawmakers and conservative figures are urging détente, fearful of the potential consequences from a prolonged feud. At a minimum, the explosion of animosity between the two powerful men could complicate the path forward for Republicans' massive tax and border spending legislation that has been promoted by Trump but assailed by Musk.
