The ACTUAL NEWS: Monday, February 3rd 2025 Recap
Today in History; The Tariff Saga, Dismantling the Department of Education, "Sovereign Wealth Fund," and Other National and Global News
TODAY IN HISTORY
1568: German craftsman and inventor Johannes Gutenberg, known for revolutionizing printing with his press, passed away in Mainz.
1690: Massachusetts issued the first paper money in the American colonies.
1811: American newspaper editor and prominent antislavery advocate Horace Greeley was born in Amherst, New Hampshire.
1865: during a personal meeting with Confederate representatives, President Abraham Lincoln offered liberal pardons in exchange for the South's surrender, but the proposal was rejected.
1870: the Fifteenth Amendment to the U.S. Constitution was ratified, granting voting rights regardless of race and ensuring civil rights for former slaves.
1894: the Dirigo, the first American steel ship, was launched from Bath, Maine.
1913: the Sixteenth Amendment to the U.S. Constitution was ratified, giving Congress the power to levy income taxes.
1917: the United States severed diplomatic ties with Germany as the latter announced plans for unrestricted submarine warfare, marking a step toward U.S. involvement in World War I.
1924: former U.S. president Woodrow Wilson passed away at the age of 67.
1995: American astronaut Eileen Collins became the first woman to pilot a space shuttle, taking command of the Discovery.
2005: Alberto R. Gonzales was sworn in as the first Hispanic Attorney General of the United States.
QUICK ACTUAL NEWS
NATIONAL
Elon Musk, who has swiftly moved to reduce the size of the U.S. government at President Donald Trump’s request, was designated as a "special government employee," the White House announced on Monday.
Rohit Chopra, the Biden-appointed director of the Consumer Financial Protection Bureau (CFPB), was unexpectedly removed from his position on Saturday, surprising many political observers. A key ally of Senator Elizabeth Warren, Chopra lasted only 12 days into the Trump administration. In his farewell letter, Chopra emphasized that the CFPB was ready to cooperate with the new administration, noting its work on critical issues like protecting Americans from foreign surveillance by data brokers and ensuring access to banking services regardless of political or religious beliefs.
The U.S. Consumer Financial Protection Bureau (CFPB) is refusing to defend Biden-era rules in court following the removal of its director. In emergency filings on Monday with the 5th U.S. Circuit Court of Appeals, CFPB lawyers indicated they had been instructed not to participate in litigation except to seek a pause in proceedings.
On Monday, President Trump appointed newly confirmed Treasury Secretary Scott Bessent as the acting director of the Consumer Financial Protection Bureau. Bessent immediately halted nearly all CFPB activities, including investigations, litigation, rulemaking, and public communications, according to an internal email obtained by Reuters.
The Democratic National Committee elected Ken Martin, the head of Minnesota's state party, as its new chair on Saturday.
On Saturday, dozens of U.S. government workers involved in diversity initiatives—though not directly working in diversity, equity, and inclusion—were placed on leave after President Trump ordered the elimination of DEI positions, according to the Washington Post.
Employees at the U.S. Agency for International Development (USAID) were notified on Monday that their Washington headquarters would be closed for the day, just hours after Elon Musk announced that President Trump had agreed to shut down Washington’s main humanitarian agency.
In trade news, first President Trump imposed tariffs starting February 4th: 25% on Canada and Mexico, and 10% on Chinese and Canadian oil. In retaliation, Canada imposed 25% tariffs on $30 billion worth of U.S. goods, with an additional $125 billion of U.S. goods facing tariffs in 21 days to allow time for Canadian companies to adjust. Mexican President Sheinbaum also announced 25% tariffs on all U.S. goods.
However, President Trump announced on Monday a one-month pause on tariffs for Mexican imports after a conversation with President Sheinbaum, who “agreed to deploy 10,000 troops to secure the border.” Interestingly, in Sheinbaum's readout, she mentioned the U.S. agreeing to control arms sales harming Mexico, a point Trump did not mention. Additionally, the 10,000 troops were already stationed at the border during the Biden administration, contributing to the decline in illegal crossings by the end of Biden's term.
Ultimately, Canada has also received the same one-month reprieve from U.S. tariffs, with Prime Minister Justin Trudeau announcing it in a post on X after his second talk with Trump on Monday.
On the trade front, China’s response to the tariffs imposed during Trump's administration is reportedly focused on restoring the “Phase 1” trade deal, signed in 2020, which required China to purchase $200 billion more in U.S. exports over two years. China failed to meet its commitments due to COVID. Additionally, Beijing’s proposal includes pledges not to devalue the yuan, greater investments in the U.S., and a reduction in fentanyl precursor exports.
U.S. consumers were expected to face higher gas prices due to the new tariffs on Canadian and Mexican oil, analysts and fuel traders warned.
Two Federal Reserve officials cautioned on Monday that the large-scale tariffs being pursued by the Trump administration could lead to inflation, although they stopped short of directly addressing how this would impact monetary policy in an environment of growing uncertainty.
The head of the largest North American aerospace union urged on Monday that tariffs on Canadian goods be paused, just as Mexico’s tariffs were, due to concerns about the impact on U.S. aerospace industries, including aircraft parts and jets.
Trump also shared with AFP on Monday that he plans to impose “substantial tariffs” on the European Union, though it remains unclear when these would be announced.
In other developments, Elon Musk and his "efficiency team" were granted access to the U.S. Treasury Department’s payment system after resolving a standoff, the New York Times reported on Saturday.
President Trump signed an executive order on Monday directing the U.S. Treasury and Commerce Departments to create a "sovereign wealth fund", with the possibility of purchasing TikTok.
The U.S. State Department announced on Saturday that the President’s Emergency Plan for AIDS Relief (PEPFAR)—the world’s leading HIV initiative—is covered by a waiver for life-saving humanitarian assistance during a 90-day pause in foreign aid.
The U.S. Centers for Disease Control and Prevention (CDC) is withdrawing all research papers submitted for publication in external scientific journals for review by the Trump administration, according to a federal official. The review aims to align with Trump's executive order recognizing only two sexes, male and female.
Pentagon officials indicated that the first trip for newly appointed Secretary Hegseth will be to the U.S.-Mexico border, signaling that border security will remain a priority under Trump’s leadership. "POTUS wants 100% operational control of the border—and we will deliver," Hegseth said on Sunday.
The FBI instructed its employees on Sunday to answer a questionnaire about any involvement in criminal cases related to the January 6th, 2021 attack on the Capitol, raising concerns about potential firings within the agency.
A U.S. judge extended the pause on Trump’s plan to freeze federal loans, grants, and other financial assistance on Monday following a legal challenge by advocacy groups.
The ACLU filed a lawsuit against President Trump’s sweeping asylum ban at the U.S.-Mexico border, arguing that the restrictions effectively block access to asylum, violating U.S. laws and international treaties.
Trump's advisers are reportedly considering executive actions to dismantle the Department of Education as part of a larger effort led by Musk to reduce the size of the federal workforce. Officials have discussed an executive order that could eliminate non-statutory functions of the department or transfer its responsibilities to other agencies, reflecting the continued push to limit government operations.
The U.S. Justice Department formed a multi-agency task force on Monday to combat antisemitism, with its initial focus on eliminating antisemitic harassment in schools and universities.
More than 8,000 government web pages have been removed since Friday, according to a New York Times analysis.
Air Force wargamers in Alabama have gathered to help prepare for a major series of exercises this summer, with Resolute Force Pacific at the core, alongside other integrated exercises.
The Pentagon is preparing orders to deploy at least 1,000 additional active-duty troops to the U.S.-Mexico border as part of Trump’s expanded immigration crackdown, U.S. officials said on January 31. This includes sending 500 soldiers from the 10th Mountain Division at Fort Drum and 500 Marines to Guantanamo Bay, Cuba, where some detained migrants will be held.
A relatively low-cost cruise missile being developed by the U.S. Air Force may eventually transform into an air-launched counter-drone weapon, with an anti-ship version also being considered.
The Pentagon revoked its abortion access policy for troops on January 30, following an executive order from President Trump limiting taxpayer funding for abortion services. Under the previous policy, service members could take administrative leave and receive travel stipends to obtain abortion services if prohibited in their state.
The January 29 helicopter crash outside Washington, D.C., marked the Army’s first significant aviation incident in months but followed a fiscal year that saw the highest rate of serious crashes in over a decade. The Army recorded 17 class-A mishaps in fiscal 2024, 13 of which occurred after January 2024.
New York enacted a law on Monday to protect its doctors from prosecution by other states that have banned abortion when they prescribe and mail abortion pills.
GLOBAL
Asian stock markets plunged sharply on Monday, with U.S. equity futures also falling significantly after President Trump's new tariffs on Canada, Mexico, and China raised concerns about a potential global trade war and slower economic growth. The U.S. dollar surged to record highs against the Chinese yuan and reached its strongest levels since 2003 against the Canadian dollar and since 2022 against the Mexican peso. Japan's Nikkei index dropped by as much as 2.3%, while Australia’s benchmark index, often seen as a global sentiment proxy, also suffered losses.
A meeting of the United Nations Security Council in two weeks could provide a "very good opportunity" for Chinese Foreign Minister Wang Yi and U.S. Secretary of State Marco Rubio to meet, according to China’s U.N. envoy on Monday. The envoy stressed the importance of cooperation between the U.S. and China, adding that "so much is at stake," while also criticizing Washington’s stance on tariffs.
In immigration news, a U.S. military plane deported migrants to India, marking the farthest destination for Trump administration’s deportation flights.
Panama announced it would not renew its participation in China’s Belt and Road Initiative, with President José Raúl Mulino considering ending it early. This move follows a visit from U.S. Secretary of State Marco Rubio. Trump’s administration believes that China’s growing influence in the Panama Canal violates its neutrality treaty, although China has denied any role in operating the canal.
Trump’s administration has ended deportation relief for hundreds of thousands of Venezuelans in the United States, as initially reported by the New York Times on Sunday.
New tariff orders from President Trump against China now include suspending a duty-free exemption for low-value shipments below $800, which is often used to bypass U.S. import taxes. This exemption has allowed shipments of fentanyl and its precursor chemicals into the U.S. The suspension will also highly impact e-commerce platforms like Shein and Temu, which have relied on the exemption.
While U.S. defense officials have frequently warned about China’s military power, several defense analysts remain skeptical about the People’s Liberation Army's (PLA) ability to defeat the U.S. military in a conventional conflict. Concerns include issues of human capital, structural challenges, and political will.
President Trump is expected to speak with Chinese President Xi Jinping in the coming days, his spokesperson announced. This follows Trump’s threat to further increase tariffs on China and his frustration over fentanyl-related chemicals from China and Chinese involvement in the Panama Canal.
The far-right Alternative for Germany (AfD) party has gained increasing international attention, with endorsements from Elon Musk, significant financial donations, and now an invitation to meet Hungary’s Prime Minister Viktor Orban.
Israeli Prime Minister Benjamin Netanyahu will extend his visit to Washington D.C., returning to Israel on Saturday. He is scheduled to meet with President Trump at the White House on Tuesday to discuss the situation in Gaza, hostages held by Hamas, and regional tensions with Iran.
The Trump administration has requested congressional approval for new transfers of $1 billion worth of bombs and other military equipment to Israel, the Wall Street Journal reported on Monday.
A delegation of Russian diplomats arrived in Syria on January 28 to lay the groundwork for maintaining Russia's military presence in the country. This comes less than two months after Syrian rebels ousted Bashar al-Assad, Moscow’s preferred leader.
Ukrainian special forces in Russia’s western Kursk region reported no sightings of North Korean troops for the past three weeks, suggesting they had pulled out after sustaining heavy losses.
On February 1, U.S. forces launched airstrikes in northern Somalia targeting members of ISIS’s branch in the region. This marks the first U.S. military operation in Somalia under the Trump administration.
Department of Homeland Security Secretary Noem declined to comment on whether migrant women and children would be included in Trump’s administration's plan to expand the notorious Guantanamo Bay detention center. The government has indicated it will utilize all facilities available under the law.
In Brussels, EU countries are holding informal talks on security collaboration with the UK and Norway, despite both being non-EU members. President Trump has urged European countries to increase defense spending.
Belgium swore in its first government led by a Flemish nationalist, following months of coalition negotiations. Bart De Wever’s N-VA party has pushed for greater independence for Dutch-speaking Flanders.
Taiwan announced it would support companies planning to relocate to the U.S., helping them find partners and providing assistance following President Trump’s new tariffs.
Prime Minister Justin Trudeau of Canada spoke with President Claudia Sheinbaum of Mexico about U.S. tariffs and their shared efforts to enhance border security and combat illegal drug production. Both leaders agreed to maintain close communication on matters of mutual interest.
The Indian government projects tax relief measures will produce approximately $11.5 billion in benefits, aimed at boosting the economy, which is expected to grow at 6.4% this fiscal year, though still short of Prime Minister Narendra Modi’s goal of 8% annual growth to reach developed country status by 2047.
Pakistan deported 141 Afghan nationals back to Afghanistan, according to the Taliban government. This ongoing campaign to detain and deport Afghans has faced criticism from human rights organizations and other nations, including Germany.
Syria’s interim president, Ahmad al-Sharaa, visited Riyadh for the first time since being named to the role, signaling Syria’s growing distance from Iran and potential Saudi investment in Syria’s reconstruction.
President Trump announced the U.S. would cut off funding to South Africa over its controversial land expropriation policy, which allows for land seizures without compensation. South African President Cyril Ramaphosa responded, saying no land had been confiscated yet and expressed a willingness to engage with Trump on the issue.
NATO Secretary-General Rutte told Bild newspaper that the alliance "must prepare for war as the best way to prevent it", a clear statement on NATO's defense posture in the current geopolitical climate.
CARTOONS OF THE DAY
Canadians reacting to the unprovoked tariffs. Please tap on the image to enlarge, then scroll left.
DOCUMENT WORTH READING
A federal prosecutor appointed by President Donald Trump, Edward Martin, sent a letter to Elon Musk on Monday, requesting information about anyone attempting to obstruct the billionaire's government efficiency initiative. Martin, the interim U.S. attorney for Washington, D.C., warned that any actions aimed at threatening or confronting employees of Musk's Department of Government Efficiency could lead to criminal charges.
In the letter, Martin emphasized, "We will pursue any and all legal action against anyone who impedes your work or threatens your people." Martin shared the letter on his personal X account, and Musk later posted a message thanking Martin for his support.
NOTE: The DOGE "employees" are not federal employees, DOGE is not a government agency.
VIDEO QUICK NEWS
JD Vance on Trump's push to "acquire" Greenland: "He doesn't care what the Europeans scream at us ... you've got probably 55,000 people living on Greenland who are not actually happy with Danish government."
Raskin: "Elon Musk, you may have illegally seized power over the financial payments systems of the Treasury, but you don't control the money of the American people. The US Congress does that under Article 1 of the Constitution ... we don't have a fourth branch of government called 'Elon Musk'"
Murphy: "This is a constitutional crisis that we are in today. Let's call it what it is.”
Former Vice President Al Gore joined Pope Francis today at the Vatican for the first-ever World Leaders' Summit on Children's Rights.
Elon Musk's Unauthorized Access to Treasury’s Payment System Raises Legal and Ethical Concerns
In a controversial move on Friday, Treasury Secretary Scott Bessent granted Elon Musk and his DOGE team access to a sensitive system that manages trillions of dollars in government payments, including Social Security checks and tax refunds. This access, which allows Musk’s team to examine transactions and potentially influence government spending, has sparked widespread alarm. Notably, David Lebryk, a longtime Treasury official who oversaw the system, resigned the same day, reportedly due to concerns about the unauthorized access being granted to an unelected, private individual.
Musk, who has no official government role, was given "read-only" access to this crucial system without any public consent or oversight, raising serious legal and ethical questions. Critics, including Senator Ron Wyden of Oregon, argue that this is a blatant violation of norms and laws designed to protect the integrity of government operations. Wyden remarked that there is "no good reason" for political figures or private individuals with business interests, like Musk, to have access to mission-critical systems that have historically been monitored by career civil servants.
Musk has made unsubstantiated claims on social media that the Treasury has failed to prevent fraudulent payments and even funded terrorist groups, using these allegations to justify his interference. However, the Bureau of Fiscal Service, which operates the payment system, has consistently blocked $155 million in improper payments and recovered $350 million in misallocated funds. Many view Musk’s actions as not only unnecessary but as an overreach that could undermine the legal safeguards protecting the Treasury’s operations from private influence.
Global Reactions to Trump's Tariffs on China, Mexico, Canada, and Upcoming EU and UK Levies
The global community is reacting strongly to President Donald Trump’s decision to impose new tariffs on China, Mexico, and Canada, while also signaling plans to extend those tariffs to the European Union (EU) and the United Kingdom. As the world braces for further economic tensions, leaders across Europe are voicing their opposition to these aggressive trade policies, warning of the harmful effects and calling for unity in response.
EU’s Warning on Tariffs
The European Union expressed its concerns on Sunday, with a Commission spokesperson noting, “Our trade and investment relationship with the U.S. is the biggest in the world. There is a lot at stake. Tariffs create unnecessary economic disruption and drive inflation. They are hurtful to all sides.” The EU emphasized its intention to respond firmly to any trading partner, including the U.S., that imposes tariffs unfairly on EU goods.
France: A Power Dynamic in Trade Negotiations
In France, Industry Minister Marc Ferracci warned that trade negotiations with the U.S. under President Trump must be approached as a “power dynamic.” Speaking to France Info, Ferracci stressed the need for a strong response to Trump’s tariff threats, saying, “It is obvious that we must react.” He called for countermeasures targeting key U.S. products, adding that these measures should be “biting,” meaning they should be impactful enough to influence the American economy. Ferracci further suggested that Brussels consider creating a "Buy European Act" as part of its response.
Germany: Caution Against Division
German Chancellor Olaf Scholz echoed concerns about the divisiveness of tariffs, particularly in the globalized economy. After meeting with British Prime Minister Keir Starmer in the U.K., Scholz remarked, “It’s important that we don’t divide the world with numerous tariff barriers.” He emphasized the EU’s strength as an economic bloc, adding, “The EU is a strong economic area and has its own courses of action,” indicating that Europe would not bow to external pressure.
Belgium: Tariffs as a "Blatant Attack"
Belgium’s Prime Minister Guy Verhofstadt was even more direct, calling Trump’s new tariffs a “blatant attack on its own people and a gift to billionaires, all while tearing apart his closest allies.” Verhofstadt argued that the EU should not give in to “bullying tactics,” highlighting the broader risks to global stability and economic well-being.
Poland: A Call for Common Sense
In Poland, former Prime Minister Donald Tusk voiced a measured but firm stance, urging the EU to adopt a united front in the face of U.S. tariffs. “Poland will for sure be a country that encourages common sense and caution,” Tusk said. He continued, “But we also have to say clearly that any plans to introduce customs and (wage) trade wars are a complete mistake.” Tusk emphasized the need for a “firm, clear, friendly, but tough European position” to convey to the American administration the importance of maintaining unity among allies.
EU Leaders Prepare for Trade War
As EU leaders meet in Brussels on Monday, they are preparing for the possibility that they too will face harsh trade levies from the U.S. Tusk called for European unity, stating, “We must be unquestionably united. It is worth doing everything possible to ensure that in the face of a Russian threat or Chinese expansion, we do not fight between allies.” The comments reflect the growing concern that Trump’s trade policies could undermine global cooperation, especially amid rising geopolitical tensions.
As tensions over tariffs continue to mount, it remains to be seen how the EU and other global players will respond to Trump’s trade agenda and whether they can present a unified stance in defense of free and fair trade.
Trade War Fears Trigger Market Selloff, Weighing on Automakers, Tech, and Crypto Stocks
A broad market pullback occurred on Monday after U.S. President Donald Trump announced sweeping tariffs against Mexico, Canada, and China, sparking fears of a global trade war. The move sent investors into the safety of the dollar and U.S. Treasuries, while major automakers and tech stocks saw significant declines. General Motors, Ford, and Tesla all dropped, while Big Tech stocks like Microsoft, Apple, and Amazon also took hits. E-commerce firms, including Alibaba and PDD Holdings, faced losses as well. Cryptocurrencies were not spared, with major exchange and mining stocks falling sharply. Experts warned that the tariffs could disrupt supply chains, depress business sentiment, and add to global economic uncertainty. Trump acknowledged the potential short-term disruption, suggesting more substantial tariffs might follow for the European Union.
U.S. Weapon Shipments to Ukraine Paused Amid Trump Administration Debate
U.S. weapon shipments to Ukraine were halted before resuming over the weekend, as the Trump administration debated its stance on aiding Kyiv. The pause followed internal divisions within the administration over the level of support to continue providing to Ukraine's war effort. The White House ultimately reversed its decision to stop all aid, allowing shipments to resume. Halting U.S. weapons deliveries would weaken Ukraine's position in its fight and any potential peace negotiations. The situation highlights the internal disagreements within the administration, though it is unclear if the pause will be officially acknowledged. Under President Biden, the U.S. had provided substantial military aid to Ukraine, primarily through Presidential Drawdown Authority, which allows for quick transfers without congressional approval. These are the shipments that were paused. The pause is the first public indication of significant policy debate within the current administration.
DID YOU KNOW?
NATO’s recon soldiers have one of the most demanding and dangerous jobs in the Alliance: they scout far ahead of the main force, observing everything from terrain conditions, to weather, to the disposition of enemy forces. Pulling this off takes not just physical toughness, but the mental resilience to push through fatigue and discomfort to get the job done.
Every year, these soldiers gather in Estonia for the Admiral Pitka Recon Challenge, a grueling four-day event that tasks soldiers with crossing 150 kilometers of terrain on foot, facing a myriad of obstacles along the way. To find out first-hand what it takes to be a recon trooper, Rob Kunzig, video producer for NATO, visited the competition, trying out some of the obstacles and realizing that, as one Finnish solider puts it, "it's the heart that matters most".
Here’s the full story in 11:11 minutes.
IN CASE YOU MISSED IT
Former President Jimmy Carter was posthumously awarded the Grammy for Best Audio Book, Narration, and Storytelling Recording for his book "Last Sundays in Plains: A Centennial Celebration." The late president's grandson, Jason Carter, accepted the award on his behalf.
In response to U.S. President Donald Trump's announcement of 25% tariffs on most Canadian goods, many Canadians canceled trips to the U.S., boycotted American products, and even booed at sporting events.
The Wall Street Journal reported that Meta is contemplating a move to switch its state of incorporation from Delaware to Texas, although this change would not affect the company's headquarters in California.
OpenAI launched a new A.I. tool, Deep Research, which can gather and synthesize information from across the internet into concise reports.
A documentary film titled Air Force Elite: Thunderbirds, set to release this spring on Netflix, will offer a behind-the-scenes look at the U.S. Air Force's prestigious Air Demonstration Squadron, known for its complex aerial maneuvers.
At the 2025 Grammy Awards, Beyoncé made history by becoming the most-nominated and awarded artist ever. She secured her first Album of the Year for Cowboy Carter, which also won Best Country Album.
Kendrick Lamar triumphed with Record of the Year and Song of the Year for "Not Like Us." Chappell Roan was named Best New Artist, and Sabrina Carpenter earned two awards, while Taylor Swift went home empty-handed. The ceremony also paid tribute to the late legendary producer Quincy Jones and raised $7 million for the Los Angeles wildfires.
The Critics Choice Awards, originally scheduled for January 12, will take place this Friday after being postponed due to the wildfires in LA.
That’s it from me for now. Thank you so much for reading.
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