Two weeks into his second term, President Donald Trump has continued to take efforts to upend the operations of the U.S. federal government. Speculation over tariffs has caused fluctuation on Wall Street, the United States Agency for International Development appears to be on the verge of shutting down and there is speculation of a plan to close the U.S. Department of Education.
Here are this week’s headlines from Washington:
Israel’s PM visits White House
Trump hosted Israeli Prime Minister Benjamin Netanyahu at the White House Tuesday. The visit came after Trump once again called for Palestinians living in Gaza to be permanently relocated to neighboring countries in the Middle East. He also said that the U.S. would take over the Gaza Strip as a long-term solution.
“We’ll own it and be responsible for dismantling all the dangerous unexploded bombs and other weapons on site,” Trump said in a press conference on Tuesday night.
The notion was once again rejected by several Arab leaders, with the Saudi Ministry of Foreign Affairs saying, “The establishment of a Palestinian state is a firm, unwavering position.”
Trump announces sweeping tariffs, then seemingly backs down
Trump announced Saturday unprecedented tariffs on America’s three largest trading partners. These included 25% tariffs on imports from Mexico and Canada, along with a 10% tariff on imports from China. The resulting fears of a North American trade war sent stocks tumbling on Monday, with the Dow dropping nearly 500 points.
Markets rebounded after Trump announced a 30-day pause on the Mexican and Canadian tariffs following conversations with leaders and commitments on border security from both countries. Tariffs on China will remain in effect, with China announcing countermeasures including a 15% tariff on certain types of coal and natural gas.
DOGE doubles down on cuts
Employees at USAID were sent a notice on Monday advising them not to go into work. This came after Elon Musk, leader of the Department of Government Efficiency, said he was working to shut down the agency.
The email to employees Monday followed a sequence of events Friday night when a group of individuals identifying themselves as State Department Officials and DOGE representatives appeared at USAID headquarters in Washington, D.C., and demanded access to every office. It is currently unclear what authority, if any, DOGE has to make such commands.
Sources are also reporting that the administration is drafting an order to eliminate the Department of Education, something that cannot be done without congressional approval.
Purging at the FBI
The FBI has complied with an order to give the Justice Department a list of 5,000 employees who worked on investigations related to the Jan. 6, 2021, attack on the U.S. Capitol, with FBI employees concerned that it could lead to potential mass firings. Several have filled lawsuits against the Justice Department, accusing it of violating both the constitution and privacy laws.
DOGE officials reportedly sent by Elon Musk were also seen at FBI headquarters.
This story was written by Sahil Gupta. He can be reached at [email protected].
