Mexico, Canada avoid tariffs — for now
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PRESIDENT TRUMP AGREED TO PAUSE TARIFFS on Mexico and Canada for one month after both countries pledged to bolster border security and crack down on the flow of fentanyl into the U.S. It’s been a nail-biter of a day, with two of the nation’s top trade partners seeking to avoid an all-out trade war with the U.S.
Tariffs were scheduled to go into affect at midnight.
Early Monday, Trump said he would delay tariffs on Mexico for one month after a “friendly” conversation with Mexican President Claudia Sheinbaum. Negotiations will continue, but Trump said Sheinbaum “agreed to immediately supply 10,000 Mexican Soldiers on the Border separating Mexico and the United States.”
Trump had cited illegal immigration, the influx of illegal drugs and a trade imbalance with Mexico as his primary concerns.
The tariffs on Canada went down to the wire, with Trump and Canadian Prime Minister Justin Trudeau speaking twice by phone, including a call that dragged into the early evening.
Trudeau announced on X that Canada agreed to send 10,000 troops to the border and will provide new choppers and technology to address illegal immigration. Canada will also appoint a Fentanyl Czar, designate cartels as terrorist organizations and launch a “Canada- U.S. Joint Strike Force to combat organized crime.” Trump has similarly cited the flow of fentanyl and a trade imbalance for imposing tariffs on the U.S. neighbor to the north, but he also appears fixated on pressuring Canada to become a part of the U.S. “I’d like to see Canada become our 51st state,” he said Monday. Both Mexico and Canada had been primed to retaliate with tariffs of their own, but that’s on pause for now. Other countries are on alert. The European Union said it will “respond firmly” if Trump seeks to impose tariffs on its members. The stock indices closed slightly lower Monday after opening deep in the red over concerns about the escalating trade war. |
Trump is meeting some resistance from within his own party over the trade wars, as conservatives have long viewed tariffs as bad economic policy. Sen. Mitch McConnell (R-Ky.) warned tariffs “will drive the cost of everything up.”
Sen. Chuck Grassley (R-Iowa) pleaded with Trump to exempt potash from any potential Canadian tariffs, saying it will drive up prices for farmers in his state who rely on it for fertilizer. Sen. Ron Johnson (R-Wis.) said he shares the “market’s concerns” with tariffs. “I don’t believe that’s productive,” he told Newsmax’s Wake Up America. "It’s going to hurt Americans, American companies, American exporters. It will hurt American consumers long term.” |
TRUMP'S EXPANSIONIST AMBITIONS |
• Trump directed his Cabinet secretaries to create an American sovereign wealth fund, while suggesting it could partially own the popular Chinese-owned social media app TikTok. • Secretary of State Marco Rubio met with Panamanian President José Raúl Mulino over the weekend, amid Trump’s threats to reclaim the Panama Canal. Mulino said he won’t negotiate over the canal, but he moved to address some of Trump’s concerns about Chinese influence. Panama will not renew an agreement offering favorable terms to China for infrastructure and development projects.
Additionally, Mulino said he’d conduct an audit of Chinese operated ports along the canal. “Secretary Rubio made clear that this status quo is unacceptable and that absent immediate changes, it would require the United States to take measures necessary to protect its rights under the Treaty,” the State Department said in a statement.
• Trump said the U.S. will cut off aid to South Africa until it changes its land ownership laws, which he says are discriminatory against white people.
“South Africa is confiscating land, and treating certain classes of people VERY BADLY,” he posted on Truth Social. 'It is a bad situation that the Radical Left Media doesn’t want to so much as mention. A massive Human Rights VIOLATION, at a minimum, is happening for all to see.”
• Trump will meet with Israeli Prime Minister Benjamin Netanyahu at the White House on Tuesday as they seek to maintain the fragile ceasefire and hostage release deal between Israel and Hamas.
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Former President Biden signed with the talent agency CAA.
A new lawsuit filed by more than 700 residents of East Palestine, Ohio, makes the first wrongful-death allegations in connection with the 2023 derailment that spilled toxic chemicals. Vice President Vance visited East Palestine on Monday.
The Army identified the third soldier killed in the Reagan National plane crash.
CBS will release the full transcript of its interview with Vice President Harris to the Federal Communications Commission following a lawsuit by President Trump.
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Musk strikes against federal workers; USAID dismantled
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Elon Musk is carrying out the Trump administration's efforts to slash the federal workforce, resulting in a bitter clash between longtime government employees and the new administration.
The top target at the moment: The U.S. Agency for International Development (USAID), which oversees the administration of billions of dollars of humanitarian, development and security assistance to more than 100 countries around the world
• Secretary of State Marco Rubio has been made acting administrator of USAID, as Trump and Musk seek to either shut the agency down or roll it into the State Department. Musk, who is spearheading the Department of Government Efficiency (DOGE), said over the weekend that he and Trump agreed that USAID should be eliminated. Trump described USAID as a “criminal organization.”
"Every dollar we spend will be aligned with the national interest of the United States," Rubio said Monday during a stop in Venezuela. "USAID has a history of ignoring that and deciding that they're a global charity. These are not donor dollars, these are taxpayer dollars. We owe the American people assurances that every dollar we are spending abroad is being spent on something that furthers our national interest."
Via The Hill’s Taylor Giorno: “USAID’s website has been taken offline, hundreds of contractors have been laid off and employees are being locked out of their accounts one-by-one without notice.“
Democrats are livid, rallying outside of USAID headquarters to defend the agency, although they were blocked from entering the building. Sen. Brian Schatz (D-Hawaii) announced a blanket hold on Trump's State Department nominees until USAID is restored.
"This is self-inflicted chaos of epic proportions that will have dangerous consequences all around the world," he said.
Punchbowl News obtained a letter Rubio sent to Congress, saying he will work with relevant committees on a “review and potential reorganization of USAID’s activities to maximize efficiency and align operations with national interest.”
• Musk says DOGE is halting Treasury payments to U.S. contractors, provoking outrage among Democrats who say he shouldn't have access to government payment systems.
Sen. Elizabeth Warren (D-Mass.) sent a letter to Treasury Secretary Scott Bessent seeking answers, saying “it is extraordinarily dangerous to meddle with the critical systems that process trillions of dollars of transactions each year.” Trump told reporters Monday that Musk can't do anything without White House approval.
“We’ll give him the approval when appropriate, where not appropriate, we won’t ... If there’s conflict, then we won’t let him get near it," Trump said. |
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• Musk staffers at DOGE locked employees at the Office of Personnel Management out of computer systems containing federal employee data, according to Reuters.
• The FBI is preparing to purge several senior leaders, according to CNN. The Justice Department is reviewing the list of FBI employees who worked on cases pertaining to the Jan. 6, 2021 riots.
• Dozens of former intelligence officials have been banned from entering government facilities, including former CIA director John Brennan, former national security adviser John Bolton and former director of National Intelligence James Clapper.
Rep. Ilhan Omar (D-Minn.) agrees with that move, posting on X: “I hope this list grows and the revolving door closes for good," she said.
• Dozens of former Education Department staffers have been put on leave amid Trump’s effort to rid the government of Diversity, Equity and Inclusion programs. More than 1,000 employees at the Environmental Protection Agency were notified last week that they may be subject to immediate firing, according to an email obtained by The Hill.
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💡Perspectives:
• Very Serious: Trump is doing several things that seem unwise.
• The Hill: Judges are the first line of defense against Trump’s barrage.
• Fox News: How Dems can win the midterms.
• The American Prospect: What is Trump’s mandate?
• The Hill: Elon Musk’s glaring conflicts of interest deserve more attention. |
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Washington roundup: Jeffries threat raises likelihood of shutdown
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• House Minority Leader Hakeem Jeffries (D-N.Y.) said Monday that Democrats will use the upcoming battle over government funding as a vehicle to block President Trump’s efforts to gut federal programs.
Jeffries said Democrats would oppose any federal spending bill that doesn’t explicitly prevent Trump from freezing or slashing federal loan programs.
Last week, the Trump administration issued a sweeping order to freeze federal loan and assistance programs. The order was later rescinded. A federal judge signaled Monday she will block the administration from implementing the across-the-board pause on federal grants. Jeffries said he let GOP leaders know that without those assurances, Republicans can expect to go it alone in passing a budget. Speaker Mike Johnson (R-La.) already faces a tough task in keeping the GOP united in passing Trump's budget, considering the GOP’s ultra-narrow majority in the House. The Hill’s Mike Lillis reports that Jeffries’s threat “raises the chances of a shutdown in the middle of next month.” This comes as Democrats seek to unify around a plan to respond to Trump’s overwhelming early blitz of executive orders. Over the weekend, Democrats elected Ken Martin to be the new Chairman of the Democratic National Committee.
Martin, the former leaders of the Minnesota Democratic-Farmer-Labor Party, defeated Wisconsin state party chair Ben Wikler, who had support from Jeffries, Senate Minority Leader Chuck Schumer (D-N.Y.), former Speaker Nancy Pelosi (D-Calif.), and several top Democratic donors.
• The Senate Intelligence Committee will vote Tuesday on the nomination of Tulsi Gabbard to be Trump’s Director of National Intelligence, according to Politico. Gabbard can’t afford to lose any GOP senators to get panel approval.
Sens. Jerry Moran (R-Kan.) and Todd Young (R-Ind.) remain undecided after Gabbard faced tough questions at her hearing last week.
Sen. Susan Collins (R-Maine), a crucial swing vote, announced Monday she'll support Gabbard's nomination. |
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