Tariff Trouble, Musk's Power Shift & a SCOTUS Ruling Against Trump
Plus: "Crypto Bros" may be increasing their influence in American politics.
-Rep. Jasmine Crockett, during a House Oversight Committee hearing asking "sanctuary city" mayors if they've run into an immigrants with more felony convictions than President Trump.
In this week's issue: Trump postponed tariffs after global backlash, Musk got a dressing down of sorts and "crypto bros" may be increasing their influence in American politics. Plus, FLOTUS made her first public appearance this week and the Supreme Court made its first ruling.... against the Trump White House.
TRUMP'S TARIFFS
Trump’s latest round of tariffs—25% on goods from Mexico and Canada and a tariff hike on China to 20%—were set to take effect Tuesday. By, Thursday, they were delayed. More on what happened and why continued below...
MUSK UNDER PRESSURE
President Trump told his cabinet secretaries in a hastily scheduled meeting Thursday that while Musk makes recommendations, they—not him—decide how to run their agencies.
The meeting followed complaints from cabinet members about Musk’s overreach. While they aligned with his mission, agency heads took issue with Musk’s heavy-handed and misguided approach.
In the meeting, Musk—according to one source—admitted that DOGE had made mistakes.
Still, Trump insisted they would take a "scalpel" approach rather than a "hatchet" moving forward.
Why Now?
Beyond the ongoing chaos of this administration pretending to be the world’s most powerful government, Trump may have a legal problem on his hands.
During his address to Congress this week, Trump publicly confirmed that Musk was the head of DOGE—contradicting White House claims to the press and a federal judge that Musk was merely an advisor.
Multiple lawsuits challenge Musk’s sweeping, unilateral authority, and they’ve been moving into discovery. That means testimony and evidence were about to expose the White House’s ruse—that Musk has far more power than they’ve admitted.
The New York Times (gift link) has the tea on what happened inside the meeting, including Musk’s clashes with Transportation Secretary Sean Duffy (upset by Musk’s request to cut air traffic controllers after several aviation disasters), Secretary of State Marco Rubio (angered by Musk’s unilateral decision to cut USAID), and Veterans' Affairs Secretary Doug Collins (worried about the impact of firing thousands of veterans from government jobs).
Musk—who wore a suit and tie for the occasion—was defensive, claiming that because he heads several successful companies, he knows what he’s doing.
THE MIDDLE EAST
Hamas signaled Saturday that the ceasefire may soon move to Phase Two, though Israel’s military killed at least four people over the weekend in violation of it.
For weeks, Israel has demanded that Hamas extend Phase 1 of the ceasefire. Hamas, on the other hand, wants to proceed to Phase Two, as agreed, which would involve talks about a permanent end to the occupation and fighting. In response, Israel has cut off all humanitarian aid to Gaza once again. This week, Trump threatened Hamas, demanding they release all hostages or face severe consequences.
Yemen’s Houthis have threatened to resume “naval operations” if the U.S. and Israel don’t lift the ban on humanitarian aid into Gaza. (Al Jazeera)
Meanwhile, Muslim nations gathered in Saudi Arabia over the weekend and expressed their opposition to Trump’s forced removal of Palestinians from Gaza. They labeled the plan "ethnic cleansing" and a "crime against humanity." These nations support the creation of a Palestinian administrative committee to govern Gaza under the Palestinian Authority, which would facilitate reconstruction. European ministers from France, Germany, Italy, and Britain have endorsed this approach as "realistic." They agree that Hamas should no longer govern Gaza or threaten Israel. Hamas, while agreeing it does not want to govern Gaza, insists it will not disarm until Palestinians are free.
Iran’s Supreme Leader, Ayatollah Ali Khamenei, rejected Trump’s offer for new nuclear talks, saying the disingenuous offer is aimed at pressuring Iran to bow to U.S. demands. (AP News)
MORE FROM THE EXECUTIVE BRANCH
₿ The Trump administration is proposing a Crypto Strategic Reserve, a government-backed fund holding Bitcoin, Ethereum, and other cryptocurrencies. A Senate-backed proposal outlines purchasing 1 million BTC over five years.
Supporters argue this diversifies government assets and strengthens the crypto industry. Critics warn of extreme volatility, regulatory uncertainty, and the growing political influence of crypto investors, who have donated over $130 million to Trump and Republicans.
A key figure behind the plan is David Sacks, venture capitalist, Musk ally, and former PayPal COO, now Trump’s “Crypto Czar.” His deep ties to Silicon Valley and past investments in crypto raise questions about conflicts of interest and financial transparency.
⬟ Defense Secretary Pete Hegseth has ordered U.S. Cyber Command to halt all offensive cyber operations against Russia. This directive is part of the Trump administration's effort to make nice with Moscow, despite ongoing concerns about Russian cyber threats.
The order does not affect the National Security Agency's intelligence-gathering activities targeting Russia. However, it has raised concerns among U.S. allies and critics who view it as a strategic mistake that could compromise national security.
The administration's shift in policy has been welcomed by the Kremlin, with spokesperson Dmitry Peskov noting that Washington's new approach aligns with Russia's vision (Axios).
- The New York Post
💻 Melania Trump made her first solo public appearance by advocating for the "Take It Down Act" at Capitol Hill. This bipartisan bill, which has already passed the Senate, aims to make distributing intimate images online without consent a federal crime. The legislation mandates social media platforms to remove such content within 48 hours and prevent duplicates, reflecting a concerted effort to protect individuals, especially teenagers, from the damaging effects of revenge porn (AP News).
💰 Business leaders are paying up to $5 million for one-on-one meetings with President Trump at his Mar-a-Lago estate, while group dinner reservations cost $1 million per seat. Critics raise ethical concerns about potential donor influence and the blurring of lines between Trump's business interests and his presidency (Wired).
📚 The Trump administration has canceled approximately $400 million in federal grants and contracts to Columbia University, citing the institution's inadequate response to anti semitic harassment on campus. This decision, announced by a federal task force on anti semitism, affects funding primarily allocated for healthcare and scientific research.
Critics argue that the funding cut is politically motivated to stifle criticism of Israel and suppress pro-Palestinian advocacy on college campuses. Some Jewish advocacy groups suggest the Trump administration is using the guise of protecting Jewish students to advance its agenda, undermining free speech and democracy.
Either way, it’s a significant escalation in government involvement in university affairs and student activism, raising questions about free speech, discrimination, and the use of federal funds to enforce specific political viewpoints (Truthout).
🏞️ The Trump administration will terminate the leases for 33 National Park Service (NPS) facilities nationwide, including visitor centers, museums, and law enforcement offices, as part of federal cost-cutting measures. Critics argue these closures could jeopardize the preservation of millions of artifacts, compromise public safety, and disrupt park operations. (Washington Post).
🚨 The DOJ arrested Mohammad Sharifullah, a member of ISIS-K, for his involvement in the August 2021 Abbey Gate bombing in Kabul, which killed 13 U.S. service members and approximately 170 Afghan civilians. Sharifullah confessed to scouting routes near the airport to facilitate the attack and to participating in other lethal operations, including a 2024 assault in Moscow. Captured in Pakistan through a joint U.S.-Pakistani operation, he faces a maximum penalty of life in prison (Justice.gov).
🍳 The DOJ is investigating major egg producers, including Cal-Maine Foods and Rose Acre Farms, for potential price-fixing amid soaring egg prices. The companies claim the price hikes stem from the avian flu outbreak, but the DOJ is examining whether they have coordinated to inflate prices or limit supply. (ABC News).
📉 Just Tuesday, Trump was blaming the Biden Administration for inflation — including the skyrocketing egg prices. But, according to a new Reuters-Ipsos poll, 51% of Americans disapprove of Trump’s handling of inflation. Two-thirds of those surveyed said the US is on the wrong track on addressing the rising cost of living.
CONGRESS
House Republicans have introduced a stopgap spending bill to avert a government shutdown, proposing funding levels slightly below last year's. The bill allocates $892.5 billion for defense and $708 billion for non-defense spending, adhering to Fiscal Responsibility Act of 2023 caps. A vote is scheduled for Tuesday, but Democratic leaders have signaled potential opposition, creating uncertainty about funding beyond March 14. (Axios)
COURTS
The American Bar Association (ABA) is calling on Elon Musk and other government officials to cease their attacks on the judiciary. After a series of legal rulings against the Trump administration, Musk accused judges of attempting a "coup of American democracy" by ignoring the "will of the people" and called for the impeachment of judges who "make truly terrible decisions."
The ABA also pointed out that the Trump administration has intimidated lawyers representing clients the White House "does not like" and has labeled judges as corrupt without providing evidence. As a nonpartisan organization, the ABA emphasized that the judiciary is an equal branch of government, holding the same power as the executive and legislative branches. (ABA News)
The Supreme Court has ordered the Trump administration to release $2 billion in foreign aid funds that had been previously withheld. This decision marks the first significant action by the Court against the Trump administration, reinforcing the judiciary’s role in checking presidential power.
HEADLINES
⚕️Pope Francis is still in the hospital but doing better. (CNN)
🎥 No Other Land, documentary produced by a Palestinian and Israel journalist about Israel's destructive occupation of the West Bank, won an Oscar on Sunday. And a standing ovation from Hollywood's elite. (+972 Magazine)
🐭 Scientists have created mice with woolly mammoth-like traits, including fur and cold tolerance, by editing their genes. The research brings scientists closer to resurrecting mammoths and perhaps other extinct species. (404 Media)
⏰ Don't forget to "spring forward" tonight. (Newsweek)
📰 My favorite "Big Picture" article this week, from The New Republic.
Katherine Stewart
TRUMP'S TARIFFS, CONTINUED
Trump claims the tariffs on Mexico and Canada are to pressure both countries to do more to stop fentanyl trafficking. But Canada’s Prime Minister Justin Trudeau called that justification false on Tuesday, when he announced that Canada would retaliate with 25% tariffs of their own.
Following suit, Mexico announced that it would respond with their own tariffs. China said it would also respond with 10-15% tariffs on key U.S. exports like chicken, pork, soy, beef, dairy, cotton, corn, and wheat.
Mexico, China, and Canada are the U.S.'s top three trading partners, respectively.
Stock markets tumbled with tariff anticipation, with many fearing increased prices on everything from cars to groceries. By late Tuesday afternoon, Commerce Secretary Howard Lutnick claimed that Trump would pull back on some of the tariffs back because Canada and Mexico were freaking out – and not because of the stock market.
On Wednesday, the White House said the “Big Three” automakers—Ford, Stellantis (formerly Chrysler), and GM—reached out to argue for pushing back the tariffs, claiming they would raise car prices and hurt the economy. The auto industry makes up 22% of all North American trade.
Car parts cross borders multiple times during manufacturing, meaning these taxes compound at each step, drastically increasing costs. Automakers will either absorb the hit—leading to job cuts and lower production—or pass it on to consumers through higher prices. Either way, American-made cars would become more expensive.
By Thursday, Trump had signed off on an extension, claiming tariffs on cars and select other goods will now begin on April 2 because he wants to help carmakers and farmers, the same two groups of people that would have suffered the most from his tariffs in the first place.
Tariffs or no tariffs, experts say the damage is already done. Trump has proven (once again) to be unpredictable, unreliable, and untrustworthy. With no certainty about what’s to come, companies are forced to brace for the worst, a situation that will ultimately affect everyday American consumers.
What Could This Mean for You?
In 2024 alone, the U.S. imported:
- $49 billion in agricultural products from Mexico, including nearly half of all imported vegetables and 40% of fruits.
- $41 billion in farm imports from Canada.
- $32 billion in toys, games, and sporting goods & $7.9 billion in footwear from China.
📌 Households would pay $1,600–$2,000 more per year on average.
📌 Prices will rise on electronics (+11%), clothes (+7.5%), cars (+6%), and food.
Still confused? Here’s a timeline.
How it all went down, from the WSJ. (gift link)
