Jason Miller, a top adviser to Donald Trump, says the president will defend his trade war to Americans when he speaks to a joint session of Congress tonight.“I would say that he’s going to lean into it and he’s going to talk about how increasing tariffs can actually go and close the trade deficits … [in] January we saw a record trade deficit, particularly when it comes to countries such as Canada, Mexico, China. And how, if we don’t go and do this now, we’re going to be completely wiped out by certain industries here in the United States,” Miller told CNN in an interview.“Ultimately the costs on this are going to be carried by the producers and the foreign countries as opposed to Americans,” he added, repeating a common argument of the administration that economists are skeptical of.Speaking to the former Trump advisor Larry Kudlow on Fox Business this hour, the US commerce secretary, Howard Lutnick, said that talks with Canada and Mexico are ongoing, and an announcement on a middle ground solution on tariffs could be announced on Wednesday.“Both the Mexicans and the Canadians were on the phone with me all day today, trying to show that they’ll do better”, Lutnick said, “and the president is listening because you know he’s very, very fair and very reasonable. So I think he’s gonna work something out with them. It’s not gonna be a pause, none of that pause stuff. But I think he’s gonna figure out, ‘You do more, and I’ll meet you in the middle some way’. And we’re going to probably be announcing that tomorrow. So, somewhere in the middle will likely be the outcome. The president moving with the Canadians and Mexicans, but not all the way.”The Fox Business host Kudlow was the director of the National Economic Council during the first Trump administration.In addition to the mass firings of federal workers, the Trump administration’s plan to slash the federal government apparently includes a real estate fire sale.On its website, the General Services Administration, which manages federal properties, said it has identified 443 properties, totaling more than 80 million square feet that “are not core to government operations” now “designated for disposal.”The list of buildings to be put up for sale includes some of the most iconic properties in Washington, including the headquarters of the Department of Justice, the Federal Bureau of Investigation and the Labor Department.Reuters reports that the agency said sales could potentially save more than $430 million in annual operating costs. The move could, however, put federal agencies at risk of exploitation by private landlords.The list also includes the Washington headquarters for the Department of Energy, the Department of Agriculture, the American Red Cross building and the Office of Personnel Management. GSA’s own headquarters were also on the list.It also includes major office buildings in Atlanta, Cleveland, Los Angeles and Chicago, including the landmark Chicago Loop Post Office designed by Ludwig Mies van der Rohe.The largest union of federal workers says that fired probationary employees must be reinstated, after the office of personnel management (OPM) amended a memo that had ordered their termination.“OPM’s revision of its Jan. 20 memo is a clear admission that it unlawfully directed federal agencies to carry out mass terminations of probationary employees – which aligns with Judge Alsup’s recent decision in our lawsuit challenging these illegal firings,” the American Federation of Government Employees president, Everett Kelley, said in a statement.“Every agency should immediately rescind these unlawful terminations and reinstate everyone who was illegally fired.”Here’s more about the Trump administration’s about-face:Democrats have seized on reports that congressman Richard Hudson, who leads the House GOP’s campaign operation, has asked lawmakers to stop holding in-person town halls after several incidences where constituents aired grievances over Donald Trump’s haphazard cuts to the federal government.Politico reports that Hudson made the request in a private meeting today, though lawmakers don’t have to follow it. In response, top Democrats have accused Republicans of trying to hide while supporting unpopular policies. Here’s minority leader Hakeem Jeffries:
House Republicans have just been ordered to stop holding town hall meetings. They can run from their extreme agenda. We will never let them hide.
And Katarina Flicker, press secretary for the House Majority Pac, which supports Democratic candidates:
If you’re going to have the audacity to raise prices and rip away health care from millions of Americans, you should at least have the courage to face your constituents. House Republicans are cowards.
The nation’s largest union of auto workers said it supported Donald Trump’s tariffs on major US trading partners and was working with its administration “to end the free trade disaster”.The statement from the United Auto Workers comes after it endorsed Joe Biden’s re-election bid and its president, Shawn Fain, campaigned for Democrats last year. The political winds have since shifted, and the UAW says it is in favor of Trump’s tariffs on Mexico and Canada as a way to undo the damage of free trade agreements that it claims undermined American manufacturing. From its statement:
Tariffs are a powerful tool in the toolbox for undoing the injustice of anti-worker trade deals. We are glad to see an American president take aggressive action on ending the free trade disaster that has dropped like a bomb on the working class.
There’s been a lot of talk of these tariffs “disrupting” the economy. But if corporate America chooses to price-gouge the American consumer or attack the American worker because they don’t want to pay their fair share, corporate America bears the blame for that decision. The working class suffered all the pain of NAFTA, and we won’t suffer all the pain of undoing NAFTA. We want to see corporate America, from the auto industry and beyond, recommit to the working class that makes the products and generates the profits that keep this country running.
The UAW is in active negotiations with the Trump Administration about their plans to end the free trade disaster. We look forward to working with the White House to shape the auto tariffs in April to benefit the working class. We want to see serious action that will incentivize companies to change their behavior, reinvest in America, and stop cheating the American worker, the American consumer, and the American taxpayer.
Earlier in the day, the Detroit automakers’ trade association pleaded for exemptions from the tariffs and warned they would undermine US car manufacturers.Add Republican former senator Pat Toomey to those who don’t think much of Donald Trump’s levying of tariffs on Mexico and Canada.On X, Toomey, who represented Pennsylvania until 2023, said:
With his multiple rounds of tariffs, and the inevitable retaliations, President Trump has wiped out all of the S & P 500 and Nasdaq 100 gains since his election. Next come higher prices and job losses.
Democratic lawmakers are split over whether to attend Donald Trump’s speech to a joint session of Congress this evening, and the degree to which they should express their dislike of what he will say.Many lawmakers plan to be there, but bring along guests with personal stories that can speak to the risks and failures of Trump’s ideology. Former House speaker Nancy Pelosi said she invited Elena Hung, an advocate for Medicaid, the insurance program for poor and disabled Americans that Trump wants to cut:
Elena Hung’s courageous daughter, Xiomara, was born with a number of serious medical conditions and is thriving today as a result of access to quality health care – including Medicaid …
At a time when Medicaid is under assault by those who seek to give tax breaks to billionaires and big corporations, I am honored that Xiomara’s story will be told through Elena’s attendance as my guest to this year’s address to a joint session of Congress.
Some Democrats want to stage protests during the speech, not unlike the heckling Joe Biden got last year when he gave what turned out to be his final State of the Union address. Axios has more about their plans, which are not popular with minority leader Hakeem Jeffries:
Some members have told colleagues they may walk out of the chamber when Trump says specific lines they find objectionable, lawmakers told Axios. Criticism of transgender kids was brought up as a line in the sand that could trigger members to storm out, according to a House Democrat.
A wide array of props – including noisemakers – has also been floated: Signs with anti-Trump or anti-DOGE messages – just as Rep. Rashida Tlaib (D-Mich.) held up a sign during Israeli Prime Minister Benjamin Netanyahu’s speech last year that said “war criminal.” Eggs or empty egg cartons to highlight how inflation is driving up the price of eggs.
Finally, some lawmakers are boycotting the address. Among them is progressive Alexandria Ocasio-Cortez, who said on Bluesky she’d be “live posting and chatting with you all here instead. Then going on [Instagram] Live after.”The magnitude and scale of President Trump’s decision to go ahead with 25% tariffs on Canada and Mexico has had economists recalling the Tariff Act (1930) signed by President Herbert Hoover.It saw average tariffs jump by 20% for thousands of different imported goods, as the US tried to protect its depressed agricultural sector from foreign competition.Proposed by senator Reed Smoot and representative Willis C Hawley, the bill, reported in the Manchester Guardian (below) was opposed by more than onethousand economists, who warned Hoover of a dramatic downturn in US trade with other countries, especially from those that retaliated.Nonetheless Hoover signed it into law, with some Congress members, realising the vote was quite close, engaging in logrolling to get something for their constituency in return for their support.The impact of the Smoot-Hawley Tariff Act was, as predicted, highly damaging to the United States, with estimates of imported goods, many of which were needed by US industry and commerce, plummeting by nearly half.The tariffs also caused shock waves to global trade as other nations deployed protectionist policies, resulting in an estimated half of the 25% decline in world trade.Elon Musk will brief House republicans tonight about criticism of Doge cuts, Bloomberg News and the Hill report. Tonight at 7pm, Musk, who leads the so-called Department of Government Efficiency – which has been slashing the federal workforce and the budgets of federal agencies – will meet in the House basement with Republican lawmakers about complaints from their constituents about the mass firings.Mass firings have taken place at the Department of Veteran Affairs, Defense Department, Department of Education, Department of Health and Human Services, the IRS, National Parks, and more.In a message to employees on Monday, the newly confirmed secretary of education, Linda McMahon, a billionaire ex-wrestling executive, laid out the “final mission” for the department as Donald Trump threatens to dismantle the agency.“My vision is aligned with the President’s: to send education back to the states and empower all parents to choose an excellent education for their children,” wrote McMahon, a co-founder of World Wrestling Entertainment (WWE), the professional wrestling organisation. “This is our opportunity to perform one final, unforgettable public service to future generations of students.”The message comes as Trump is reportedly finalizing plans to issue an executive order to eliminate the 45-year-old US Department of Education and eliminate or reorganize the department’s functions and programs.Workers at the Department of Education called the email a “power grab” focused on privatization at the expense of children with disabilities and from low-income families.“It’s heartbreaking to read such a disingenuous, manipulative letter from the head of the agency,” said one employee who requested to remain anonymous for fear of retaliation. “I don’t read the letter to be an end to the department. It reads as a transformation into something sinister, a tool for the president to use to ensure his ideology is implemented by states and local governments at the risk of losing funding. It’s the exact overreach it’s purporting to stop.”You can read more on this story here:Trump took to his social media platform Truth Social to respond to Canada’s announcement of retaliatory measures against the US after Donald Trump imposed his sweeping tariffs plan: “Please explain to Governor Trudeau, of Canada, that when he puts on a Retaliatory Tariff on the U.S., our Reciprocal Tariff will immediately increase by a like amount!”Trump flippantly referring to Canadian Prime Minister Justin Trudeau as “Governor” in his post underscores the president’s previous comments that he wants to annex Canada and make it the 51st US state.When asked what he would tell his constituents who have federal government jobs and are worried about the so-called department of government efficiency’s cuts to the federal workforce, Republican senator Tommy Tuberville told ABC News: “We’re going to have to suck it up.” He echoed Trump’s calls to “stop the bleeding” and spend less, even though this means it will hurt Americans. Federal employees make up 7.6% of the workforce Huntsville, Alabama. Many of these employees work at Nasa’s Marshall Space Flight Center.In response to the tariffs that went in effect today, which experts say will raise the price of goods, Tuberville said “there’s going to be pain” but that it was the best way forward for the country.Donald Trump has upended the United States’ relationship with three of its top trading partners by following through on his campaign promise to impose tariffs on Canada, Mexico and China. Prime minister Justin Trudeau said the tariffs were “a very dumb thing to do” and announced Canada would impose retaliatory levies, while in Mexico, President Claudia Sheinbaum said she would announce her nation’s response on Sunday. Trump defended the decision as necessary to restore domestic manufacturing, though his commerce secretary acknowledged they could drive prices higher in the short term. The president is expected to elaborate on the decision this evening, when he addresses the first joint session of Congress of his new term.Here’s what else has happened today so far:
The CEOs of two large US retailers, Target and Best Buy, said they expected prices to go up as a result of Trump’s trade war.
Ontario’s premier Doug Ford told the Wall Street Journal that he was imposing a 25% export tax on electricity sent to three US states, and might cut it off altogether if the tariffs linger.
Volodymyr Zelenskyy said he was ready to sign the minerals deal Trump was demanding, and acknowledged his White House meeting last week “did not go the way it was supposed to”.
The Trump administration has backed down from its demand for federal agencies to fire employees on probation, even after many have already been let go.The decision comes as a federal judge temporarily halted the administration’s move, which was part of a larger effort to thin out the federal workforce and targeted at workers who were newly hired or promoted.In a revised memo, the office of personnel management instead instructed agency human resource chiefs to send them lists of workers on probation and determine whether those employees should be retained, without specifying that they be terminated. It’s unclear what this will mean for workers who have already been fired.The development was first reported by the Washington Post.Jason Miller, a top adviser to Donald Trump, says the president will defend his trade war to Americans when he speaks to a joint session of Congress tonight.“I would say that he’s going to lean into it and he’s going to talk about how increasing tariffs can actually go and close the trade deficits … [in] January we saw a record trade deficit, particularly when it comes to countries such as Canada, Mexico, China. And how, if we don’t go and do this now, we’re going to be completely wiped out by certain industries here in the United States,” Miller told CNN in an interview.“Ultimately the costs on this are going to be carried by the producers and the foreign countries as opposed to Americans,” he added, repeating a common argument of the administration that economists are skeptical of.Back in the US, more business leaders are warning consumers to expect higher prices as a result of Donald Trump’s trade war. Here’s more on that, from the Guardian’s Callum Jones and Leyland Cecco:Americans have been warned to brace for higher prices within days after Donald Trump pulled the trigger on Monday and imposed US tariffs on goods from Canada and Mexico, and hiked tariffs on China.Global stock markets came under pressure again on Tuesday, with leading indices falling sharply – and the benchmark S&P 500 losing all its post-election gains – as Canada, Mexico and China vowed to retaliate, and investors balked at the prospect of an acrimonious trade war.US retail giants predicted that prices were “highly likely” to start rising on shelves almost immediately after a 25% duty came into effect on exports from Mexico to the US.Most Canadian exports to the US also now face a 25% duty, with a 10% rate for energy products. The Trump administration imposed a 10% levy on all Chinese exports to the US last month, which has now been doubled to 20%.Trump, who won back the White House after pledging repeatedly to bring prices down, has acknowledged that his controversial trade strategy could lead them to rise. Consumers could face “some short-term disturbance”, the president conceded last month.With US retailers relying heavily on imports from Mexico and Canada to stock their shelves, top executives claimed they would have no choice but to increase prices.Justin Trudeau went on to accuse Donald Trump of seeking to destroy the Canadian economy to make the country easier to annex – something he insisted was “never going to happen”.“What he wants is to see a total collapse of the Canadian economy, because that will make it easier to annex us, is the second half of his thought. Now, first of all, that’s never going to happen. We will never be the 51st state, but yeah, he can do damage to the Canadian economy, and he started this morning,” Trudeau said.The prime minister warned that Americans will suffer in the trade war as well:
As American families are going to find out, that’s going to hurt people on both sides of the border. Americans will lose jobs, Americans will be paying more for groceries, for gas, for cars, for homes, because we have always done best when we work together. So we are, of course, open to starting negotiations on the customer review, but let us not fool ourselves about what he seems to be wanting.
Justin Trudeau also said that he did not believe Donald Trump’s insistence that tariffs were imposed in retaliation for Canada’s failure to combat fentanyl trafficking.“We have laid out extensive plans, actions, cooperations, including as recently as the past days in Washington, and they have always been very well received, and the numbers bear that out,” the prime minister said.“I think in what President Trump said yesterday, that there is nothing Canada or Mexico can do to avoid these tariffs, underlines very clearly what I think a lot of us have suspected for a long time, that these tariffs are not specifically about fentanyl, even though that is the legal justification he must use to actually move forward with these tariffs.” More
