Evening Report — Trump's tariffs stress test

Presented by National Council on Aging — President Trump's "America first" foreign policy doctrine will face several stress tests in the coming days, as he weighs potential compromises on tariffs and Ukraine, while China makes new threats against the U.S.

View Online Evening Report  PRESENTED BY  Wednesday, March 5 | By Jonathan Easley TRUMP FIRST 100 DAYS ©  Julia Demaree Nikhinson/Associated Press Trump's 'America First' push faces major stress test PRESIDENT TRUMP'S FOREIGN POLICY doctrine of "America first" will be tested in the coming days, as he weighs potential compromises on tariffs and Ukraine, while China makes new threats against the U.S.   Trump's tariffs on Mexico and Canada have roiled the financial markets and provoked dire warnings from economists that the burgeoning trade war threatens to sink the economy.   Canada retaliated with tariffs of their own, and Mexico will do the same Sunday, barring a deal.   Trump announced a carveout Wednesday: There will be a one-month exemption on tariffs for cars coming into the U.S. from Canada and Mexico.   The White House said Trump spoke with leaders of the "Big Three" automakers and decided to give them more time to come up with a plan to move their manufacturing operations to the U.S.   The exemption applies to Ford, General Motors and Stellantis, as well as other companies with production facilities in North America.   Trump's Commerce Secretary Howard Lutnick signaled the trade war with two of the U.S.'s top trading partners could be scaled back as soon as today, but there were no signs of a thaw after Trump spoke with Canadian Prime Minister Justin Trudeau.   The Trump administration is seeking to address a trade imbalance with Mexico and Canada and to stem the flow of illegal drugs across the border as it considers whether to dial back the trade war.   Trump said on Truth Social that nothing Canada has done so far to address his concerns have been "good enough." He also accused Trudeau, who is not seeking reelection, of using the trade war to try to "stay in power."   The president acknowledged in his joint speech to Congress on Tuesday night that Americans will experience some economic pain from the tariffs.   "There will be a little disturbance, but we're OK with that," he said. "It won't be much." MIXED SIGNALS ON UKRAINE Trump signaled the beginning of a thaw with Ukrainian President Volodymyr Zelensky during his Tuesday night speech, with the president quoting from a statement in which the Ukrainian leader expressed regret with how the Oval Office meeting between the two leaders escalated.   "I appreciate he sent this letter," Trump said.   White House press secretary Karoline Leavitt called Zelensky's note "a positive step forward."   Still, Trump's actions tell a different story.   The White House paused intelligence-sharing with Ukraine in its war against Russia as part of a broader review of assistance to Kyiv. This came after the U.S. put a freeze on aid to Ukraine.   Zelensky says he remains ready to sign a minerals deal with Trump at any time.   Leavitt said talks on the mineral deal are in progress, with national security adviser Mike Waltz discussing the matter with Trump in the Oval Office on Wednesday.   A top aide to Zelensky said a meeting between the U.S. and Ukraine could happen "in the near future." SABER RATTLING FROM CHINA Tensions with Beijing are growing.   Trump this week doubled tariffs on China, which responded with its own retaliatory tariffs.   "If war is what the U.S. wants, be it a tariff war, a trade war or any other type of war, we're ready to fight till the end," the Chinese Embassy in the U.S. posted to X.   Defense Secretary Pete Hegseth told Fox News "we don't war with China" but said the U.S. will be "ready" if it comes to that. He noted Trump has a good relationship with Chinese President Xi Jinping.   The Justice Department has charged 10 people with hacking and cyber-espionage crimes targeting U.S. agencies, including the Treasury Department.   China will increase its defense budget by more than 7 percent this year, likely putting pressure on Congress to increase military spending in the U.S.   Trump said Tuesday night he'll prioritize U.S. shipbuilding to counter China's military moves. 💡Perspectives: • The American Conservative: What is realistic in Ukraine? • Foreign Affairs: Ukraine Without America. • The Hill: 4 lessons to be learned from Zelensky's White House meeting. • The Hill: Trump's 'beautiful' tariffs will weaken trade and worsen inequality. • The Washington Post: How tariffs will make America poorer. Read more:  • Trump's tariff timeline: What to know. • What Trump's aid freeze means for Ukraine war. • Kabul airport bombing suspect arrives in U.S. • State Department unveils visa restrictions in immigration crackdown. CATCH UP QUICK Rep. Sylvester Turner (D-Texas) died Tuesday night at the age of 70. The former Houston mayor won a seat in Congress in November, succeeding the late Rep. Sheila Jackson Lee (D-Texas).   The Trump administration is holding direct talks with Hamas about the ceasefire with Israel. The talks are a departure from longstanding practice of not directly engaging those designated as terrorists. NEWS THIS AFTERNOON ©  Julia Demaree Nikhinson, Associated Press Trump, House conservatives meet as shutdown clock ticks President Trump huddled with House conservatives Wednesday as Republicans seek a path forward in passing his fiscal agenda.   A continuing resolution (CR) that funds the government at current levels through the end of the fiscal year but punts on codifying Trump's tax and spending cuts appears more likely by the day.   The Hill's Mychael Schnell and Emily Brooks report:   "Hard-line House conservatives are signaling an openness to supporting a continuing resolution to keep the government open later this month — a notable shift from their usual stance against stopgaps that is changing the playing field for GOP leaders as they look to keep the lights on in Washington."   Speaker Mike Johnson (R-La.) told Politico the CR could hit the floor next week, potentially including a bump in defense spending, which is a priority for many Congressional Republicans.   House Democrats are steadfastly opposed to a CR, and Republicans can't afford any defections after Rep. Thomas Massie (R-Ky.) said he'd vote against the temporary funding measure, raising the odds of a government shutdown.   MEANWHILE…   Democrats are sniping over their disjointed response to Trump's speech to Congress on Tuesday night, part of a broader frustration over their inability to land on an effective line of counter-messaging.   Rep. Al Green (D-Texas) was escorted off the House floor after waving his cane and shouting at Trump to protect Medicaid. Republicans on Wednesday introduced a measure to censure Green.   Many Democratic lawmakers waved hand signs at Trump as he spoke. They refused to stand and applaud, even when Trump singled out grieving families who had lost loved ones to immigrants with criminal backgrounds in the country illegally.   "A sad cavalcade of self owns and unhinged petulance," Sen. John Fetterman (D-Pa.) posted on X. "It only makes Trump look more presidential and restrained. We're becoming the metaphorical car alarms that nobody pays attention to—and it may not be the winning message."   PLUS THIS: The Hill's Amie Parnes reports that Democrats could be in the market for an outsider candidate to lead the party into 2028, as many on the left complain that their leaders in Washington are too old and out of touch. 💡Perspectives: • The Bulwark: The chaotic killing off of the government. • Townhall: Under Trump, America's borders are secure again. • The Los Angeles Times: Trump came through for Los Angeles. • The Liberal Patriot: Time to ditch DEI in favor of something better. Read more:  • Most approved of Trump speech: Snap polls. • White House hits back at Democrats for Trump speech response. • GOP lawmaker says she will criminally refer 4 Democratic mayors to DOJ. • Democratic senator recants praise for Trump border 'progress.' CONTENT FROM OUR SPONSOR IN OTHER NEWS ©  Greg Nash Musk to meet with House, Senate GOP as Supreme Court deals setback to DOGE Elon Musk will hold separate meetings with House and Senate Republicans on Wednesday, as some lawmakers express concern with his slash-and-burn style.   Republicans are largely on board with the Department of Government Efficiency's (DOGE) mandate to root out waste, fraud and abuse from within the government.   But Musk's chaotic approach has rubbed some the wrong way, and his quick actions have resulted in several walk-backs to ensure critical government programs remain in place.   Some Republicans are also irked by Musk's apparent indifference to the plight of federal workers, including veterans and those who live outside of Washington.   This comes as the Supreme Court dealt a setback to DOGE on Wednesday, ordering the Trump administration to immediately release nearly $2 billion in foreign aid payments owed under existing contracts.   Chief Justice John Roberts and Justice Amy Coney Barrett joined with the court's three liberals to side against the administration in the 5-4 ruling.   It's one of the first moves by justices in response to Trump's efforts to reshape the federal government in his second term.   In addition, Trump's remarks about DOGE in his joint address to Congress have already made their way into a court filing.   The Trump administration has insisted that Musk is not technically a part of DOGE, which they say is run by interim administrator Amy Gleason.   But Trump indicated otherwise Tuesday night.   "DOGE. Perhaps you've heard of it. Perhaps," Trump said. "Which is headed by Elon Musk, who is in the gallery tonight."   Kelly McClanahan, the attorney representing plaintiffs in a lawsuit claiming DOGE's setup is illegal, alerted the judge in the case to Trump's remarks.   MEANWHILE…   The Department of Veterans Affairs plans to cut 80,000 jobs, according to an internal memo obtained by The Associated Press. The Internal Revenue Service is planning for a 50 percent workforce reduction. 💡Perspectives: • The Hill: America is changing, but it's still America the great • USA Today: DOGE fired me from USAID. America is in trouble. • Vox: Trump's big speech to Congress signaled more chaos ahead. • The Hill: The one big take away from Trump's speech to Congress. • Sasha Stone: Democrats disgusted the entire country. Read more:  • How small can the Education Department get without Congress? • Justice Department stretched thin in Trump litigation onslaught. • Unpacking the MAGA world uproar over the Epstein files. • Key Republican lays out ideas for FEMA reform. Stay Engaged Someone forward this newsletter to you? Sign up to get your own copy: TheHill.com/Evening. Did I miss a story? Drop me a line. See you next time! Privacy Policy  |  Manage Subscriptions  |  Unsubscribe  Sign Up for Other Newsletters 400 N Capitol Street NW Suite 650, Washington, DC 20001 © 1998 - 2025 Nexstar Media Inc. | All Rights Reserved.

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