Live updates: The latest on Trump’s presidency as tariffs take effect

February 2, 2025

Canadian PM candidate slams Trump tariffs as ‘act of economic warfare’

03:49

– Source:
CNN

Trump tariffs: President Donald Trump announced extraordinary new tariffs on Mexico, Canada and China — signing the long-promised economic policy Saturday. The leaders of all three countries soon announced they would take retaliatory measures. A day after signing the tariffs, Trump acknowledged what economists and members of Congress have been saying all along: Americans may find themselves paying the costs.

Federal workforce: Federal employees across the country have been confused and angered by a mass offer to resign from their positions. Meanwhile, senior USAID security officials were put on leave after attempting to refuse officials from Elon Musk’s DOGE access to systems at the agency. And dozens of employees at the Education Department were placed on paid leave as part of the Trump administration’s larger effort to rid the federal workforce of employees associated with DEI efforts, sources familiar with the move told CNN.

Potential Cabinet fights: Tulsi Gabbard, Trump’s pick for spy chief, is expected to meet with Republican senators in the coming days as behind-the-scenes efforts continue to shore up support for her nomination among some skeptical Republicans. Another controversial Cabinet pick, Robert F. Kennedy Jr., could also face pushback ahead of a Senate vote.

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US stock market futures plunged Sunday, one day after President Donald Trump announced 25% tariffs on Canada and Mexico and 10% tariffs on China set to go into effect on Tuesday.

Dow futures were down 1.4%, or more than 600 points, while S&P 500 futures dropped 1.9%. The futures traded for the tech-heavy Nasdaq Composite were down 2.4% as of 6:36 p.m. ET. Bitcoin was also down 3.5% over the last 24 hours.

Hours after the Trump administration announced the tariffs, Mexican President Claudia Sheinbaum said her country will impose retaliatory tariffs, and Canadian Prime Minister Justin Trudeau announced “far-reaching” retaliatory levies. China’s Commerce Ministry said it will file a complaint with the World Trade Organization and “take corresponding countermeasures,” without elaborating.

Economists warned that American families may bear the burden of these tariffs — and Trump posted to his Truth Social account that Americans could face “some pain.” The tariffs will make groceries more expensive because Mexico and Canada are the main sources of America’s imported agricultural goods. Gas, steel and cars are among other goods expected to be more expensive for American consumers.

Israeli Prime Minister Benjamin Netanyahu arrived in Washington, DC, on Sunday for his meeting with President Donald Trump this week, the prime minister’s office said in a statement.

Netanyahu is scheduled to meet with Trump on Tuesday, according to the prime minister’s office, making him the first world leader to have a formal meeting with the US president since his inauguration last month.

Netanyahu was welcomed at Blair House, the president’s official guest quarters.

Democrats on the Senate Foreign Relations Committee have demanded that Secretary of State Marco Rubio explain why Elon Musk’s Department of Government Efficiency officials have been able to access the US Agency for International Development’s main headquarters, “American citizens’ data and classified spaces.”

The letter, dated Sunday, comes after two top security officials at USAID were put on administrative leave for refusing to allow DOGE officials to access the agency’s systems, multiple sources familiar with the matter told CNN. Three sources told CNN that the DOGE personnel were eventually able to access the headquarters.

The letter also argues that because Congress created USAID as an independent agency, separate from the Department of State, “any effort to merge or fold USAID into the Department of State should be, and by law must be, previewed, discussed, and approved by Congress.”

On Saturday, USAID’s website went dark, and a new page for the agency appeared on the State Department website. USAID’s X account also went offline.

Dozens of employees at the Education Department were placed on paid administrative leave Friday as part of the Trump administration’s larger effort to rid the federal workforce of employees associated with diversity, equity, inclusion and accessibility efforts, two sources familiar with the move told CNN.

The department sent letters to employees informing them that their email accounts were being suspended but that they would continue to receive paychecks for an indefinite period, the sources said.

The department cited guidance from the White House’s Office of Personnel and Management, issued on January 21, that directed government agencies to notify “all employees of DEIA offices that they are being placed on paid administrative leave effective immediately as the agency takes steps to close/end all DEIA initiatives, offices and programs.”

At least 55 Education Department employees, including senior-level career workers who have served at the agency for decades, were notified Friday night that they’d been placed on paid leave, according tothe American Federation of Government Employees, the union representing the agency’s career officials.

According to the union, these employees do not hold job titles nor official duties related to DEIA. But Sheria Smith, union president for Department of Education career employees, told CNN the employees had attended a two-day diversity training seminar in 2019 during the first Trump administration “that was required for senior-level employees and strongly encouraged for others,” as well as similar training under the Biden administration.

Read more here.

The Panamanian president said a migrant repatriation flight agreement with the United States could be expanded, but the US would have to shoulder the costs.

Panamanian authorities spoke with US Secretary of State Marco Rubio on Sunday about the possibility of expanding the US-funded program to remove foreign nationals who don’t have the legal basis to be in Panama, President José Raúl Mulino said.

The program, signed in July, aims to reduce irregular migration through the Darien Gap, a mountainous rainforest region connecting South and Central America. The 66-mile (106-kilometer) hike through the Darien Gap brings migrants from Colombia to Panama and is a crucial passage for those hoping to reach the United States and Canada.

Mulino said Sunday that those who will be repatriated could include migrants from Venezuela, Colombia, Ecuador and elsewhere.

The Trump administration ended a form of humanitarian relief for Venezuelans already residing in the United States, according to a Homeland Security official, marking the latest in a series of moves to strip temporary protections for certain migrants.

Some Venezuelans granted what’s known as Temporary Protected Status in 2023 will lose protections in April after Homeland Security Secretary Kristi Noem decided not to grant an extension. Republicans have argued the program, meant to be temporary, has allowed migrants to remain in the US for longer periods.

The move comes days after the administration reversed a Biden-era decision that extended deportation protections for Venezuelans, issuing a major blow to hundreds of thousands of Venezuelans who anticipated having those protections until at least the fall of 2026.

In its final days, the Biden administration extended Temporary Protected Status, which applies to people who would face extreme hardship if forced to return to homelands devastated by armed conflict or natural disasters, for hundreds of thousands of immigrants residing in the United States.

That extension, which was rolled back by Noem, would have shielded Venezuelans from deportation for another 18 months and allowed them to remain in the US with work permits.

Panamanian President José Raúl Mulino said his country would not renew a 2017 memorandum of understanding to join China’s Belt and Road Initiative, suggesting the agreement could end early. He said Panama would seek to work with the US on new investments, including infrastructure projects.

Mulino reiterated on Sunday that the country’s sovereignty over the Panama Canal was not up for debate, saying that he addressed the United States’ concerns over China’s presence around the canal during talks with US Secretary of State Marco Rubio.

According to a readout of the meeting, Rubio had informed Mulino and Foreign Minister Javier Martínez-Acha Vásquez that China’s “control” over the Panama Canal may mean the US has to “take measures necessary to protect its rights under the Treaty.”

Mulino said Sunday he doesn’t think there is a real risk that the US would use military force to retake the canal, despite President Donald Trump threatening to do so.

Mexican President Claudia Sheinbaum said her government would announce details on its retaliatory tariffs on US goods on Monday.

Sheinbaum previously said the plan would include tariff and non-tariff measures in response to the US imposing a series of tariffs, including a 25% duty on all imports from Mexico. The US’ steep tariffs are expected to take effect on Tuesday.

Sheinbaum rejected the Trump administration’s accusation that Mexico’s government has ties to drug cartels and said the US has done little to fight drug trafficking.

She also addressed Mexican migrants in the US, saying her country would welcome them if they decide to return.

The Justice Department is instructing thousands of FBI employees to provide information about their work investigating the January 6, 2021, insurrection, multiple sources told CNN.

On Sunday, employees who were identified as taking part in the massive January 6 case began receiving a questionnaire requiring them to explain their role in the investigation.

The questionnaire sent Sunday has caused consternation among FBI employees, who fear it will be used to amass of list of people to be fired for their work on cases involving January 6 rioters and Donald Trump, sources said.

Some background: The unusual demand for FBI employees to explain their role in an investigation comes as CNN has reported the Trump Justice Department is considering expanding its purge of bureau personnel.

Leaders of the FBI were instructed Friday to provide the Justice Department by Tuesday information about all current and former bureau employees who “at any time” worked on January 6 investigations, according to an email from acting FBI Director Brian Driscoll and obtained by CNN.

Secretary of Defense Pete Hegseth will visit Joint Task Force North in El Paso, Texas, on Monday, according to the Pentagon, to meet with military members working to support the Trump administration’s crackdown on the US-Mexico border.

Hegseth, who was narrowly confirmed by the Senate last month, has reiterated his support for Trump’s hardline immigration policy. On Friday, the Pentagon announced it is preparing to deploy around 1,000 additional active-duty troops to help border protection efforts.

At least five provinces in Canada will pull American liquor from government wholesale shelves in response to President Donald Trump’s tariffs — a move that could impact more than half of Canada’s population.

In British Columbia, Premier David Eby has directed the BC Liquor Distribution Branch — a government-managed wholesaler — to immediately stop buying liquor from American “red states” and to remove those brands from available stocks for sale.

BC Liquor serves more than 36 million retail customers annually, according to its website.

Canadian provinces Ontario, Nova Scotia, Newfoundland and Labrador, and Quebec have also announced measures instructing government liquor agencies to pull American-made liquor from their shelves.

“Every year, (Liquor Control Board of Ontario) sells nearly $1 billion worth of American wine, beer, spirits and seltzers. Not anymore,” Ontario Premier Doug Ford wrote on X Sunday morning.

While some alcohol sales do occur in grocery stores and individual shops, the LCBO supplies most wine, beer and spirits in the province.

President Donald Trump is expected to meet with Jordanian King Abdullah II on February 11, according to a White House official and the Jordanian government.

The White House said the meeting came at the request of Abdullah.

Some context: Trump indicated last month that he had spoken with the king of Jordan about potentially building housing and moving more than 1 million Palestinians from Gaza to neighboring countries, a remarkable proposal from a sitting US president. “I said to him that I’d love you to take on more, because I’m looking at the whole Gaza Strip right now and it’s a mess, it’s a real mess,” he told reporters aboard Air Force One.

However, a key group of Arab nations said they “firmly” reject any efforts to resettle or evict Palestinians from Gaza. The foreign ministers of Jordan, the United Arab Emirates, Saudi Arabia, Qatar and Egypt issued a wide-ranging statement Saturday, saying they hoped to work with Trump on a two-state solution in the Middle East.

Secretary of State Marco Rubio told Panamanian President José Raúl Mulino and Foreign Minister Javier Martínez-Acha Vásquez that what he called China’s “control” over the Panama Canal may mean the US has to “take measures necessary to protect its rights under the Treaty.”

Bruce also said that the “this status quo is unacceptable” and that “absent immediate changes,” the US would have to “take measures necessary to protect its rights under the Treaty.”

Some context: President Donald Trump’s publicly stated desire for the US to retake control of the key waterway has already caused a diplomatic stir, with Mulino repeatedly stating that Panama’s sovereignty over the canal is not up for debate.

There are valid questions about Chinese influence over infrastructure on and around the Panama Canal. Most notably, a subsidiary of a Hong Kong-based company operates a port at each end of the waterway. But Panama has run the canal itself since the US handed it over to the country in 1999. Specifically, the canal is operated by the Panama Canal Authority, whose administrator, deputy administrator and 11-member board are Panamanians selected by Panama’s government. And other canal ports are operated by companies that are not Chinese — including one run by an American-Panamanian joint venture.

Rubio’s trip: The secretary of state will also visit El Salvador, Costa Rica, Guatemala, and the Dominican Republic, with migration a key focus.

CNN’s Daniel Dale contributed reporting to this post.

On Saturday, President Donald Trump made good on his promise to impose steep tariffs on America’s three largest trading partners — Canada, China and Mexico.

Economists warn that these moves will negatively impact American businesses and consumers, many of whom are still reeling from the sharp rise in inflation in recent years.

Here’s where a tariff on Mexican and Canadian goods could hit Americans hardest:

Cars and car parts: The US imported $87 billion worth of motor vehicles and $64 billion worth of vehicle parts from Mexico last year, not accounting for December, according to Commerce Department data. Motor vehicles were also the second-largest good the US imported from Canada last year through November, for a total of $34 billion.

Food and alcoholic beverages: Mexico and Canada supply a significant share of several key food categories. For example, Mexico is the largest supplier of fruit and vegetables to the US, while Canada leads in exports of grain, livestock and meats, poultry and more.

The result would be also a stiff penalty on some of America’s favorite libations, including tequila, which can be made only in Mexico, and the No. 1 beer brand in the nation, Modelo.

Electronics, toys, appliances: Consumer electronics are among the top goods the US imported from China last year, according to federal trade data. That includes cellphones, TVs, laptops, video game consoles, monitors and all the components that power them.

China also is a major supplier of home appliances. Those, along with toys and footwear, are particularly exposed to Trump’s tariff threats. More than half of shoes sold in the United States are made in China, according to the Footwear Distributors & Retailers of America.

The United States is also reliant on China for toys and sporting equipment, including items such as footballs, soccer balls and baseballs. The United States gets 75% of its imported toys and sports equipment from China.

Read more here.

The average price of cars in the United States is expected to rise by $3,000, while the number of units sold could fall by 1 million as a result of US tariffs on Mexico and Canada, Mexico’s National Auto Parts Industry association (INA) warned on Saturday.

The INA, which represents more than 700 auto-part manufacturing plants in Mexico, said the tariffs will lead to higher production costs and consumer prices in part because auto parts must cross the three borders up to eight times during the production process.

The INA also warned that the tariffs could affect the availability of products and disrupt supply chains.

Some context: On Saturday, President Donald Trump imposed a series of steep tariffs, which are expected to take effect on Tuesday, including a 25% duty on all imports from Mexico.

The US imported $87 billion worth of motor vehicles and $64 billion worth of vehicle parts from Mexico last year, not accounting for December, the top two goods imported from there that year, according to Commerce Department data.

Canadian Finance Minister Dominic LeBlanc on Sunday unveiled the full list of items covered by tariffs on $30 billion worth of US goods, the first phase of Canada’s response to US tariffs.

The items include American produce, alcohol, apparel, household appliances, tools, firearms and more.

Canada’s tariffs come in retaliation after US President Donald Trump on Saturday announced sweeping levies on Canada, Mexico and China.

Items on the tariff list include:

  • Fruits and vegetables
  • Dairy products such as yogurt, milk and cheese
  • Coffee and tea
  • Clothing including gloves, scarves, footwear and suits
  • Alcohol such as wine, vermouth and beer
  • Toilet paper
  • Various household items, such as utensils, refrigerators and water heaters

See the full list here.

The Canadian ambassador to the United States, Kirsten Hillman, said she is “hopeful” steep US tariffs on Canadian goods will not be enacted.

The Canadian ambassador told ABC the administration has been meeting “nonstop” with US President Donald Trump’s border officials, but she acknowledged the decision lies in Trump’s hands.

Canada’s efforts to bolster border controls include investing a billion dollars in border equipment, ensuring boots on the ground, and joint training exercises with US authorities, the ambassador said.

Hillman said Canada has made “incredible progress” on stemming illegal immigration into the US. “Illegal crossings between Canada and the United States … are less than 1% of the crossings into the United States, but even at that, they’re down 89% in recent months,” she said.

Some background: Trump administration officials said Saturday the tariffs were designed to stop the flow of fentanyl and undocumented immigrants coming into the US.

To put the tariffs in place, Trump in his executive action declared a national economic emergency, invoking the International Emergency Economic Powers Act, known as “IEEPA,” which authorizes a president to unilaterally manage imports during a national emergency. The tariffs are set to go into effect Tuesday at 12:01 am ET.

Chrystia Freeland, Canada’s former finance minister who is running to replace Justin Trudeau as prime minister, told CNN’s Fareed Zakaria that her country is determined to stand up for itself after US President Donald Trump announced new tariffs on Canada, Mexico, and China.

“We don’t want to have this fight, but we are not going to lose it,” she said Sunday.

Freeland called the tariffs a “terrible” idea and a “lose-lose” situation that will end up hurting Americans since they depend on Canada for many basic goods.

Freeland also said Canadian citizens have been so hurt and angered that some have already started to boycott American goods.

“Regular Canadians across the country are coming up with ways to stand for Canada, to fight for Canada, to defend Canada, but mostly to say to our American neighbors: ‘Guys, just cut it out,’” Freeland said.

Asked whether Canada would start looking for new markets and trading partners, Freeland said the country would prefer to continue working with the US but insisted the relationship should remain mutually beneficial.

“We are happy to work together. But it’s got to be a two-way street,” she said.

Two top security officials at the US Agency for International Development were put on administrative leave Saturday night after refusing to allow officials from Elon Musk’s Department of Government Efficiency to access systems at the agency, even after DOGE personnel threatened to call law enforcement, multiple sources familiar told CNN.

Personnel from the Musk-created office physically tried to access the USAID headquarters in Washington, DC, and were stopped. The DOGE personnel demanded to be let in and threatened to call US Marshals to be allowed access, two of the sources said.

Three of the sources said the DOGE personnel wanted to gain access to security systems and personnel files. Two of those sources also said they wanted access to classified information.

USAID Director of Security John Voorhees and his deputy are the latest officials who have been put on leave amid fears that the agency is being intentionally dismantled by the Trump administration. Rumors are swirling that President Donald Trump intends to sign an executive order to fold USAID into the US State Department — a move that Democratic lawmakers say is illegal.

USAID dispenses billions of dollars annually across the world in an effort to alleviate poverty, treat diseases, and respond to famines and natural disasters. The agency’s workforce totals more than 10,000 people (excluding contractors), with two-thirds of them overseas, according to the Congressional Research Service. USAID provided assistance to about 130 countries in fiscal year 2023.

Read more about recent changes to USAID here.

Sen. Bernie Sanders, ranking member of the Senate Committee on Health, Education, Labor and Pensions, said while he agrees with Robert F. Kennedy Jr. on issues in food and obesity, he was “not particularly happy with his presentation” during his confirmation hearings, citing “deep concerns” about the Health and Human Services nominee’s vaccine skepticism.

“But when you have Kennedy come forward in saying he … continues to believe that autism is caused by vaccines, despite the fact that there have been a dozen studies over the years which disprove that. When he has other conspiracy theories,” the Vermont independent said on CBS’ “Face the Nation,” also noting he and Kennedy had differing views on how to lower health care costs.

“So I was not particularly happy with his presentation,” Sanders added.

Sanders also sits on the Senate Finance Committee, which will vote on Kennedy’s nomination in committee on Tuesday. Republican Sen. Bill Cassidy, who is chair of the Health, Education, Labor and Pensions Committee and who said he was “struggling” with the Kennedy nomination, sits on the finance committee as well.

 

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