Morning Report — Trump hails early strides, “a little disturbance”

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In today’s issue:

Trump lauds “disturbance” paired with success
Trade tempest could blow over
DOGE backtracks on savings
Zelensky offers truce proposal

President Trump used a sweeping 100-minute address to a joint session of Congress Tuesday to rally Americans behind his tariff-and-tax-cuts plan for the economy while blaming former President Biden for inflated egg prices, a surge of illegal migrants and escalating deficits.

Forty-three days into his second term, Trump delivered his own report card. He sparred in the House chamber with Democratic lawmakers, arguing he would never be able to please them. He assured Americans that his decisions to close borders, fire thousands of federal civil servants and levy tariffs on neighboring allies would improve their economic realities.

For years, Oval Office predecessors urged lawmakers to reform immigration laws. “It turned out that all we really needed was a new president,” Trump said to applause from GOP lawmakers and members of his Cabinet.

The president said little about the budget reconciliation conundrum facing House and Senate Republicans as they try to anchor his “common sense revolution” agenda in law without Democratic support. Trump, who praised Speaker Mike Johnson (R-La.) and Senate Majority Leader John Thune (R-S.D.), also did not mention the escalating chances of a government shutdown when federal funds are depleted on March 14.

Eager to tout his barrage of executive actions and directives since Jan. 20, Trump used his address to ask Congress for just three things: passage of tax cuts including 100 percent expensing, which would benefit large companies; increased resources for border security; and authorization to create what is still a vaguely described missile defense “Golden Dome” to protect the United States.

“A LITTLE DISTURBANCE”: After steep slides in financial markets this week in reaction to U.S. tariffs on goods from Mexico, Canada and China, and downbeat reports about consumer sentiment, the president reprised a script assembled during his campaign and the mandate he’s claimed since Nov. 5.

Americans, the president said, will experience firsthand the economic benefits of “hundreds of billions” in savings from government downsizing led by billionaire Elon Musk, a lighter regulatory hand, lower taxes, increased investments in U.S. manufacturing and new, reciprocal trade tariffs.

“Tariffs are about making America rich again,” the president pledged. But first, he warned, “there will be a little disturbance, but we’re OK with that. It won’t be much.”

Musk today will meet with House Republicans nervous about Department of Government Efficiency (DOGE) disruptions and decisions.

▪ The Hill’s Niall Stanage reported five takeaways from the president’s address.

▪ CBS News: A large majority of speech watchers surveyed overnight said they approved of Trump’s remarks. The president’s audience was largely Republican.

▪ The New York Times: Read the full speech transcript.

“SAVAGE CONFLICT”: As an initial step toward a proposed negotiated ceasefire with Russia, a U.S. deal for Ukraine’s rare earth minerals appeared to be back in play Tuesday, one day after Trump halted additional U.S. aid to Ukraine.

The president quoted from a letter he said he received from Ukrainian President Volodymyr Zelensky, whose fiery discussion with the president in the Oval Office on Friday scuttled a planned deal-signing. Zelensky, who unsuccessfully sought security guarantees from the U.S. as part of a mineral agreement last week, said Ukraine is prepared to start over and sign what the administration sees as a “backstop” deal as step one.

Trump repeated his view that Europe is not doing enough to shoulder the costs of defending its neighbor: “Europe has sadly spent more money buying Russian oil and gas than they’ve spent on defending Ukraine, by far.” That statement is partially correct, according to data.

▪ CNN: Trump says U.S. apprehended “top terrorist” responsible for 2021 Kabul airport bombing.

▪ The Hill: Sen. Elizabeth Warren (D-Mass.) panned Trump’s address as “a fantasy” after he called her “Pocahontas” while touting his plan to end the war in Ukraine.

Trump again promised to seize the operation of the Panama Canal. And he said Greenland will be part of the U.S. “one way or another.” Trump believes the Arctic island, part of the kingdom of Denmark, is integral to U.S. national security.

▪ Haaretz: Trump didn’t mention the Middle East until nearly 90 minutes into his speech and referenced Israeli hostages and Hamas only in passing.

▪ Bloomberg News: Trump said he will prioritize U.S. shipbuilding in an effort to counter China.

ROWDY RESISTANCE: As Trump spoke, Democratic lawmakers flashed miniature hand fans and signs that read “False,” “LIES” and “This is not normal,” among other messages. Some attendees booed Trump and eventually walked out.

In the opening minutes of the president’s remarks, Rep. Al Green (D-Texas) interrupted loudly, which prompted the Speaker to bang his gavel in warning before ordering security to escort the lawmaker, clutching a cane, out of the chamber. The 77-year-old lawmaker departed without incident and Trump resumed.

The Hill: Dozens of Democratic members of Congress skipped the president’s remarks in the Capitol to participate in counterprogramming on YouTube, including some fact-checking.

Sen. Elissa Slotkin (D-Mich.) slammed Trump during the Democrats’ televised response. The first-term senator criticized DOGE and its restructuring of the federal government, saying that “America wants change, but there's a responsible way to make change and a reckless way.”

“We can make that change without forgetting who we are as a country and as a democracy,” Slotkin continued.

NewsNation: Veterans Affairs Secretary Doug Collins was absent from the Capitol for the president’s address because he served as the “designated survivor” in case of catastrophe.

SMART TAKE with NewsNation’s BLAKE BURMAN:

I spoke last night with the premier of Ontario, Doug Ford. He’s been talking pretty tough about what tariffs will mean for the United States and Canada, even threatening to cut off electricity, if necessary. “Yeah, that’s the last step I’d want to do,” Ford said.

Another thing he said, though, caught my attention. Ford, who has also been speaking with Commerce Secretary Howard Lutnick, turned his attention to Beijing. “The real enemy is China,” Ford told me. He added, “I’m all for tariffing every item that comes out of China. We need to stand united.”

We’ll see how all of this shakes out in the coming days and weeks with Canada and Mexico, but the focus on China likely isn’t going away anytime soon. Even if a lasting tariff deal with Canada and Mexico materializes, the tit for tat with China is likely just ramping up.

Burman hosts “The Hill” weeknights, 6p/5c on NewsNation.

3 THINGS TO KNOW TODAY:

▪ For sale in D.C.: The FBI headquarters, first opened in 1974, and the Justice Department headquarters, according to a list of more than 440 government properties. Explanation? “Not core to government operations.”

▪ The Supreme Court gravitated toward the American firearm industry Tuesday in its fight to end a $10 billion lawsuit brought by the Mexican government over claims U.S. gunmakers are fueling cartel violence.

▪ The two-headed monster under the economy’s bed has a name: stagflation.

LEADING THE DAY

© The Associated Press | Eric Gay

TRUMP’S TARIFF TEMPEST MAY END: The president is likely to “work something out” beyond the option of a pause in trade tariffs levied Tuesday on Canada and Mexico. A change in the policy could be announced today, according to a member of Trump’s Cabinet.

“Somewhere in the middle will likely be the outcome,” Commerce Secretary Howard Lutnick told Fox Business on Tuesday after spending the day on the phone with counterparts in Canada and Mexico. The secretary signaled a pending compromise hours after retaliatory tariffs by Canada and China took effect and Mexico threatened new trade levies this weekend, as outlined by Mexican President Claudia Sheinbaum.

Lutnick’s remarks added new uncertainty in oil markets.

The Associated Press: China retaliated against U.S. tariffs Tuesday with up to 15 percent on a wide array of U.S. farm exports. It also expanded the number of U.S. companies subject to export controls and other restrictions by about two dozen.

Among early reactions to Trump’s trade tempest: criticism of the president’s premise and calculations, upheaval in financial markets, consumer angst and increasingly strained relations with major U.S. trading partners, The Hill’s Tobias Burns reports.

▪ CNBC: Stagflation fears swirled as Trump’s tariffs take effect and the U.S. economy slows.

▪ NBC News and Bloomberg News: As of Tuesday, more than $3 trillion in stock value had been wiped out since Nov. 6, the day after Trump won the election. Financial markets tumbled for a second consecutive day as U.S. levies took effect.

Even if tariffs are a familiar Trump strategy to try to gain concessions, the effects are perceived by many as costly. Canadian Prime Minister Justin Trudeau called the 25 percent U.S. tariffs a “dumb thing to do,” echoing a word used in a Wall Street Journal editorial Tuesday.

▪ The New York Times: American farmers brace for harm from retaliatory tariffs.

▪ CBC: Trudeau accused Trump of trying to engineer the “total collapse of the Canadian economy” to make it easier to try to annex Canada, which the president has previously proposed but did not repeat during his speech to Congress.

Canada’s Ontario province slapped a 25 percent export tax on electricity to the U.S., taking aim at Michigan, Minnesota and New York. Ontario Premier Doug Ford told NewsNation in an interview that he hoped the tariff fight would end within days.

CONGRESS: Meanwhile Tuesday, some GOP members of the Senate Armed Services Committee expressed opposition while questioning Trump nominee Elbridge Colby, nominated to be a Pentagon undersecretary, about his views on Iran, Taiwan and NATO.

The Hill: Democrats are ready to oppose a full-year stopgap funding measure that would keep the government operating after a March 14 deadline. Conservatives, meanwhile, oppose a short-term continuing resolution. House tensions are heating up.

WHERE AND WHEN

The House will meet at 10 a.m. The Senate will convene at 10 a.m.
The president has no public schedule.
Vice President Vance will travel to the U.S. southern border.
The White House daily press briefing is scheduled at 1 p.m.

ZOOM IN

© The Associated Press | Alex Brandon

DOGE: Musk’s DOGE team deactivated 24,000 government credit cards used by federal employees for official travel and operations. Scientific experiments, maintenance and projects governmentwide were halted as a result.

“The longer this disruption lasts, the more the system will break,” a U.S. Department of Agriculture official told WIRED.

Meanwhile, for the second time in a week, DOGE updated its “wall of receipts” to remove mistakes that had overstated its success. The changes erased $4 billion in additional purported taxpayer savings.

▪ CNN: Why reports of use of artificial intelligence within DOGE have experts worried about a “massive risk.”

▪ The Wall Street Journal: The Commerce Department disbanded two expert committees that advised on economic statistics.

▪ The Hill: What started as a pledge to deliver on transparency has sparked an uproar in MAGA World after a promise to release files related to Jeffrey Epstein landed with a thud — and little new information.

LEARNING CURVE: Trump’s goal of closing the Department of Education is impossible without Congress, but that doesn’t mean he has no power to shrink or weaken the federal agency. The Hill’s Lexi Lonas Cochran writes the White House will seek to shift essential programs while drastically reducing staff. But how far Trump can ultimately go will likely be decided by the courts.

The Wall Street Journal: Trump threatened to take away federal funds from universities that allow what he called “illegal protests.” Legal experts said the move would violate the First Amendment.

ABORTION: Wyoming Gov. Mark Gordon (R) this week vetoed a “chemical abortions-ultrasound requirement” measure, which would have required that people seeking abortions undergo a transvaginal ultrasound before the procurement of a chemical abortion. Gordon, who has been active in restricting abortion access in his state, pointed to the potential psychological effects of undergoing an invasive ultrasound for people who have experienced sexual assault. He also called out the continuing battle over abortion’s legality in the state as an argument against this bill.

ELECTION WATCH: Republicans see a prime pickup opportunity next year in the Arizona governor’s race, The Hill’s Caroline Vakil reports, where Democratic incumbent Gov. Katie Hobbs faces a tough reelection in a state Trump won by more than 5 points. Yet even as the GOP has reasons to be optimistic, they also acknowledge beating Hobbs will be no easy feat.

The 2028 presidential campaign could be shaping up to be an outsider's race. As Democrats reel from their November loss, some say they need to take a good look at potential candidates who don't fit the traditional bill, writes The Hill’s Amie Parnes.

“In modern political history, there's never been a time that's more favorable for someone not of the system to rise in Democratic politics,” said Joel Payne, the veteran Democratic strategist who added that these non-office holders “have a bigger lane now more than ever.”

ELSEWHERE

UKRAINE: Zelensky said Tuesday he wants to “make things right” after last week's “regrettable” Oval Office clash with Trump, adding that Kyiv is ready to come to the negotiating table. He made his comments a day after Trump halted military aid to Ukraine following accusations by Trump and Vice President Vance that Zelensky behaved disrespectfully toward the U.S. while at the White House on Friday.

Zelensky on Tuesday proposed a new framework for a partial ceasefire with Russia, saying that Kyiv would be willing to sign a truce that would ban long-range attacks on civilian and energy infrastructure and release prisoners.

The Ukrainian president also said he’s ready to sign the proposed deal giving the U.S. rare minerals access in Ukraine. That deal fell apart last week, and European leaders have since been scrambling to present alternative plans for peace in Ukraine after three years of Russia’s invasion.

▪ The Hill: Senate Republicans are defending Trump's decision to pause aid for Ukraine. They view it as temporary and a negotiating tactic.

▪ CNN: Zelensky faces a fateful choice as Ukraine reels from Trump’s aid suspension.

▪ NBC News: Trump's decision to pause American military aid to Ukraine is handing Russian President Vladimir Putin the upper hand, experts say.

▪ Politico: European leaders brace for their “five-minutes-to-midnight” nightmare summit.

GAZA CEASEFIRE: Israeli officials said Tuesday they are ready to proceed to the second phase of the Gaza ceasefire deal if Hamas releases more of the 59 hostages it is still holding. The move comes as the fragile ceasefire that has halted fighting since January looks increasingly shaky, with each side accusing the other of violations. Israel earlier this week halted all humanitarian aid deliveries into Gaza.

Meanwhile, Arab leaders gathered in Egypt on Tuesday to endorse an Egyptian postwar plan for Gaza that would allow its roughly 2 million Palestinians to remain in the territory. Trump had earlier this year suggested a plan to depopulate the territory and redevelop it as the “Riviera of the Middle East.” The White House swiftly rejected the plan.

OPINION

■ In just five days, Trump has set the country back nearly 100 years, by Dana Milbank, columnist, The Washington Post.

■ Trump’s tariffs whack Trump voters, by The Wall Street Journal editorial board.

THE CLOSER

And finally… 🌋 The eruption of Italy’s Mount Vesuvius smothered Pompeii in ashen darkness 2,000 years ago, killing 1,500 people — even turning the brain of one victim in nearby Herculaneum to glass. The initial discovery of buried remains in 1748 has enlivened the imaginations of scientists and archaeologists ever since. They’re still trying to sort out some basic facts about the famously fiery catastrophe in A.D. 79.

▪ The Times (UK): Pompeii’s treasures are still being unearthed, preserved and revealed (new photo gallery and video).

▪ PBS (2024): Pompeii: The New Dig.

Stay Engaged

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