| | | |  | | By Adam Wren | | Presented by |  | | | With help from Eli Okun, Garrett Ross and Bethany Irvine Good Sunday morning from Indianapolis, where Lucas Oil Stadium was home to yesterday’s WWE Royal Rumble 2025 — an event that bears no resemblance at all to the current zeitgeist of American politics. Drop me a line: awren@politico.com.
|  | DRIVING THE DAY | | JMART’S LATEST — “Memo to Elon: Know Your Boss”: “By attempting to do to the federal workforce what he did to Twitter … [Elon] Musk is making a profound misread of what animates Trump. The president is eager for big, beautiful wins and press coverage of the same — not some conservative ideological project to shrink the federal workforce.” MINNESOTA NOT SO NICE — Democrats and Republicans this weekend made several key decisions that will most certainly have far-reaching consequences through 2026 and 2028. From Democrats choosing a new chair with deep ties to the old order at a time when many believe it needs an overhaul down to the studs, to Republicans launching a likely trade war with Canada and Mexico, the die is cast. Let’s start with the Democrats: Yesterday, inside a hotel ballroom at National Harbor, 448 party insiders did little to answer some of the deepest questions their party faces as they search for a path out of the political wilderness. But they did select someone to lead them the next four years: Ken Martin, a longtime Midwestern tactician and chair of Minnesota’s Democratic-Farmer-Labor Party. Do not let Martin’s Midwestern accent fool you. He is promising pugilism. “This is a new DNC,” he told reporters after his election, per our colleagues Elena Schneider and Brakkton Booker. “We’re taking the gloves off.” He added: “I’ve always viewed my role as a chair of the Democratic Party to take the low road, so my candidates and elected officials can take the high road, meaning, I’m going to throw a punch.” KNOWING MARTIN: One quote shared with Elena in her must-read how-he-did-it piece provided an evocative distillation of what to expect from Martin: “Minnesota nice has two sides: Minnesota nice is a pleasant, earnest ability to engage with people publicly, and it is also a private ruthlessness and a coldness that only comes when you’ve lived in 10-degree-below weather half your life,” said John Bisognano, who worked with Martin at the Association of State Democratic Committees and now leads the National Democratic Redistricting Committee. “Ken will cut you if he has to, but that ruthlessness is what we need to achieve electoral success.” WHAT DID WE LEARN? We can only extract so much from a decision made by fewer than 500 party insiders. But there are some takeaways from yesterday’s vote. Chief among them: Billionaire donors and big-name Democratic elected officials who backed Martin’s chief rival, Wisconsin Democratic Party Chair Ben Wikler, were the big losers. Check out our takeaways piece. Alongside LinkedIn co-founder and billionaire donor Reid Hoffman and George Soros’ Democracy PAC, who each gave Wikler $250,000 for his race, some major figures in the party backed the Wisconsinite. Among them: Senate Minority Leader Chuck Schumer, House Minority Leader Hakeem Jeffries, former Speaker Nancy Pelosi and several high-profile governors, including Michigan’s Gretchen Whitmer and Kentucky’s Andy Beshear. Notably, Rep. Jim Clyburn of South Carolina, a close Joe Biden ally, endorsed Martin. SORE FEELINGS? Martin soured some prominent Democratic donors. Elena writes that “the donors wanted Ben, and they will make the delegates and the new chair painfully aware of that fact over the course of the next four years.” But Martin told NYT’s Reid Epstein and Shane Goldmacher, “I don’t have any repair work to do. If they want to talk to me, they can come talk to me.” EYES ON 2028: Former VP Kamala Harris, meanwhile, used the moment to position herself as a party leader. A video message played to voting members received a warm reception. And unlike some of her fellow Democrats, she avoided inserting herself into an intra-party squabble: While she told each frontrunner before the vote that she looked forward to working with them, she did not endorse. EYES ON 2026 — AND MAYBE 2028? While Democrats were gathered at National Harbor, another Democrat in Michigan made another fateful decision: Pete Buttigieg closed the door on a 2026 gubernatorial bid in favor of looking closely at running for outgoing Sen. Gary Peters’ seat, as I reported yesterday. (More from the Detroit News’ scoop.) In my many conversations with him, Buttigieg has never quite envisioned himself as a member of Congress, instead seeing himself as more of an executive. Is he eyeing the Barack Obama model of having a hot minute in the Senate before mounting a 2028 presidential bid? RELATED READ: In 50 interviews with the NYT, Democratic leaders “revealed a party that is struggling to define what it stands for, what issues to prioritize and how to confront a Trump administration that is carrying out a right-wing agenda with head-spinning speed.”
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President Donald Trump is charging ahead with major tariffs on America's biggest trading partners. | Matt Rourke, File/AP Photo | TRUMP’S TRADE WAR: On the other side of the aisle, President Donald Trump fired the opening salvos of a likely trade war, imposing a “25% levy on imports from Canada and Mexico, a 10% tariff on energy products from Canada, and an additional 10% tariff on China,” as the WSJ reports. WHAT IT COULD COST YOU: The Journal has a rundown of how the tariffs could spike prices on everything from Tonka Trucks to tequila. HOW IT’S PLAYING: Canada and China are already hitting back. PM Justin Trudeau promised 25 percent tariffs on C$30 billion of U.S goods by Tuesday, and said he could follow up with a further C$125 billion in three weeks. Beijing promised “corresponding countermeasures to firmly safeguard its own rights and interests.” WHAT THE CANADIANS ARE READING: The CBC (roughly Canada’s NPR) called it “an unprecedented strike against a longstanding ally that has the potential to throw the economy into a tailspin.” UNCHARTED LEGAL WATERS: Many congressional Republicans quickly aligned in support of the tariffs. Trump used the International Emergency Economic Powers Act to impose the levies, the first time it’s ever been used for tariffs. It’s uncharted legal territory, likely to face a court challenge, Reuters’ David Lawder notes. This also amounts to a massive upending of the U.S.-Mexico-Canada Agreement that Trump negotiated to much fanfare in his first term. BEHIND THE BLUSTER: Trump, our Victoria Guida writes in her Capital Letter column, “needs tariffs to provide some hard-number cash for the treasury….The [Trump] administration is serious about using duties as a way to raise revenue as Republicans look to extend and expand tax cuts … So they are working to develop a framework for achieving that — one that goes well beyond one-off threats.” SUNDAY BEST … — Transportation Secretary Sean Duffy on the FAA warning system that went down overnight, on “Fox News Sunday”: “The backup system is now up and running as we try to get the primary system online. … It’s an old, antiquated system that has to be upgraded. That’s in the works. It has been in the works for years. We have to rush this new system online because, again, this is the second time in two years it’s gone down.” — Canadian Ambassador Kirsten Hillman on Trump’s tariffs, on ABC’s “This Week”: “We’re hopeful that they don’t come into effect on Tuesday. We’re ready to continue to talk to the Trump administration about that, and in particular about all the work that we’re doing with them and on our own, with respect to the border. … The Canadian people are going to expect that our government stands firm and stands up for itself.” — DHS Secretary Kristi Noem on whether Americans will suffer from higher prices, on NBC’s “Meet the Press”: “We have a strong leader. He has laid down exactly what he is going to do and what the consequences are. I encourage [other countries’] leadership teams to get on board and to make sure that they’re not pushing up prices. If prices go up, it’s because of other people’s reactions to America’s laws.” — Larry Summers on the tariffs, on CNN’s “Inside Politics Sunday”: “I don’t think these other countries are likely to accept meaningful changes in policy. Think about what giving in to a bully does. It invites more bullying. And any other country that was thinking of moving in our direction is now surely not going to do that when they think we’ll just pocket the concession and make more threats, and other countries might even move in the wrong direction … The winner here is Xi Jinping. We’ve given him an excuse for his own economic failures. We’ve moved to drive some of our closest allies into his arms. We’ve weakened our own economy.” TOP-EDS: A roundup of the week’s must-read opinion pieces.
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| | | 9 THINGS FOR YOUR RADAR 1. ANTIFREEZE: The State Department yesterday officially explained that the massive foreign aid freeze exempts at least some of the President’s Emergency Plan for AIDS Relief, Devex’s Adva Saldinger scooped. That will allow critical HIV medicine to proceed after days of confusion and fear around the world that people could die from losing access to treatments. (20 million HIV-positive people depend on PEPFAR.) Road to Marocco: PEPFAR aside, the Trump administration is still making major moves to crack down on foreign aid, which it argues should be deprioritized relative to Americans. The USAID website went offline yesterday as Trump plans to shrink the agency and fold it into the State Department, WSJ’s Alex Ward, Michael Gordon and Laura Kusisto report. Democrats warn that would be illegal without congressional signoff. Pete Marocco, the man reportedly behind the foreign aid freeze, would also lead USAID’s integration into State. The Guardian’s Andrew Roth profiles Marocco as “a campaign ally who sowed a trail of enmity at multiple agencies during the first Trump presidency.” (The State Department didn’t respond to questions about whether Roth took part in the Jan. 6 insurrection.) Dems fear USAID is being gutted, amid reports of agency signs coming down and Gemini AI being installed on email accounts for surveillance purposes, NYT’s Karoun Demirjian reports. And the real-world effects continue to stack up, with the future of U.S. humanitarian aid writ large now in doubt. Due to the freeze, sick people are still being denied access to medicine on the ground, WaPo’s Missy Ryan and Dan Keating report. Global health programs are in crisis and chaos: Thousands of people in the middle of clinical trials have seen their treatment or oversight paused, for instance, NYT’s Stephanie Nolen reports. There’s particular concern about malaria. The President’s Malaria Initiative, which is the world’s No. 1 anti-malaria funder, saw two-thirds of its staffers laid off. “You could open the funding floodgates again tomorrow and you will still have children dying months from now because of this pause,” one of them warms. 2. IMMIGRATION FILES: Trump secured a major victory for his deportation plans in Venezuela, announcing that Richard Grenell had helped negotiate a deal with President Nicolás Maduro for the country to finally start accepting tens of thousands of deportees, per WSJ’s Bojan Pancevski and Juan Forero. That includes Venezuela taking members of the Tren de Aragua gang and offering its own transport. Grenell said he hadn’t promised anything in return. But experts say they’re waiting to see if the U.S. will step back from its pressure on the authoritarian government — and if Maduro makes good on his pledges. Related read: “When Trump’s Immigration Crackdown Came to Chicago,” by Michael Gerstein in POLITICO Magazine 3. MUSK READ: “Elon Musk’s Team Now Has Access to Treasury’s Payments System,” by NYT’s Andrew Duehren, Maggie Haberman, Teddy Schleifer and Alan Rappeport: “Treasury Secretary Scott Bessent gave representatives of the so-called Department of Government Efficiency access to the federal payment system … The system could give the Trump administration another mechanism to attempt to unilaterally restrict disbursement of money approved for specific purposes by Congress, a push that has faced legal roadblocks.” Musk liaison Tom Krause is leading the effort. Krause won’t have the ability to make changes to the system, only to see the trillions of dollars in payments, Michael Stratford, Sam Sutton and Holly Otterbein report. Musk said it was part of an effort to take on fraud or identify payments made to terrorists, without providing evidence that Treasury has done so. Related read: “Musk aides lock Office of Personnel Management workers out of computer systems,” by Reuters’ Tim Reid 4. CONFIRMATION WATCH: Republicans are increasingly worried that Tulsi Gabbard’s nomination for director of national intelligence could fail, especially after she wouldn’t explicitly call Edward Snowden a traitor at her hearing, NBC’s Kristen Welker, Carol Lee and Yamiche Alcindor report. That moment “rattled” even White House aides, and one person familiar with the confirmation process puts Gabbard’s odds at 50-50. The White House remains confident that she’ll win over — or they’ll pressure — wavering senators. VP JD Vance is directly lobbying Sen. Todd Young (R-Ind.) on Gabbard, Punchbowl’s Andrew Desiderio and John Bresnahan report. 5. THE PURGE: “Senior FBI official forcefully resisted Trump administration firings,” by NBC’s By Ken Dilanian, Tom Winter, Jonathan Dienst and Ryan Reilly: “Acting FBI Director Brian Driscoll on Friday refused a Justice Department order that he assist in the firing of agents involved in Jan. 6 riot cases, pushing back so forcefully that some FBI officials feared he would be dismissed … The Justice Department ultimately did not dismiss Driscoll … A senior FBI official disputed the accounts of the current and former officials saying, ‘It’s not true.’ … Legal experts said that few, if any, of the firings carried out so far by the Trump administration have been legal.” 6. BIDEN RECRIMINATIONS: Biden’s last-minute move to commute thousands of major prison sentences for drug crimes during his last week in office “prompted anger and dismay” among many Justice Department officials, WSJ’s Ryan Barber, Annie Linskey and Sadie Gurman revealed. DOJ had recommended only about 10 percent of the people for clemency, and Biden’s “haphazard” process to select inmates ended up including some with a history of violence apart from their drug crimes. 7. ALL EYES ON DANIELLE SASSOON: “‘Sovereign’ Status of Manhattan Federal Prosecutor Hangs in the Balance,” by NYT’s Benjamin Weiser and Jonah Bromwich: “[T]he Southern District of New York’s interim United States attorney … [last month mounted a] vigorous defense of the corruption charges against [NYC Mayor Eric] Adams … But senior Justice Department officials have raised the possibility of dropping the charges altogether and on Friday, Ms. Sassoon was in Washington to discuss the prospect. … “Should Ms. Sassoon seek dismissal of the charges, she risks a potential uproar and even resignations among the office’s more than 200 assistant U.S. attorneys. Refusing such a directive could lead to another dismissal: Ms. Sassoon herself.” 8. WAR REPORT: “US military conducts airstrikes against Islamic State operatives in Somalia,” by AP’s Tara Copp, Aamer Madhani and Omar Faruk: “Defense Secretary Pete Hegseth said Saturday that the strikes by U.S. Africa Command were directed by Trump and coordinated with Somalia’s government. An initial assessment by the Pentagon indicated that ‘multiple’ operatives were killed. The Pentagon said it assessed that no civilians were harmed in the strikes.” 9. KENNEDY CENTER: Senate Finance Chair Mike Crapo (R-Idaho) announced his panel will mark up Robert F. Kennedy Jr.’s nomination as HHS secretary Tuesday morning. Questions about Kennedy’s conflicts of interest come from WSJ’s Peter Loftus and Liz Essley Whyte, who report that legal experts are concerned about his financial stake in lawsuits against vaccine makers. Kennedy said for the first time last week that he’d transfer it to his son, but that still leaves questions about whether he’d be in a position to influence policy that would boost his family. Kennedy has said he won’t need to recuse himself.
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| | | | | TALK OF THE TOWN | | TRANSITIONS — Carole Johnson is joining The Century Foundation as a senior fellow. She most recently was administrator of the Health Resources and Services Administration. … Ehab James will be digital assistant at Sole Strategies. He’ll remain CEO of MapleMark Media. HAPPY BIRTHDAY: Sens. John Cornyn (R-Texas) and Katie Britt (R-Ala.) … Reps. Jack Bergman (R-Mich.), Kelly Morrison (D-Minn.) and Mike Kennedy (R-Utah) … The Atlantic’s McKay Coppins … Ellen Malcolm … Gabriella Uli of the American Legislative Exchange Council … Carrie Dann … The New Yorker’s Michael Luo … Teddy Downey of The Capitol Forum … Reid Wilson … Paul Bedard … KPMG’s Dan Knight … Aaron Keyak … Victorino “Vic” Matus … Karly Matthews of the American Conservation Coalition … David Pakman … Heather Smith of Rep. William Timmons’ (R-S.C.) office … Matthew Hanson … Sam Schifrin of Sen. Cory Booker’s (D-N.J.) office … Traci Kraus … Patrick Hayden of the North American Export Grain Association … Avery Pierson of the House Appropriations Transportation-HUD Subcommittee … RGA’s Amanda Kitchen O’Malley … Barry Diller … Kate O’Leary of Purple Strategies … Adrienne Benson Did someone forward this email to you? Sign up here. Send Playbookers tips to playbook@politico.com or text us at 202-556-3307. Playbook couldn’t happen without our deputy editor Zack Stanton and Playbook Daily Briefing producer Callan Tansill-Suddath. Correction: Yesterday’s Playbook misidentified the department that houses the Office of Refugee Resettlement. It is part of HHS.
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