| | | |  | | By Jack Blanchard | | Presented by |  | | | With help from Eli Okun, Garrett Ross and Bethany Irvine
| | | Good Wednesday morning, and happy Steel and Aluminum Tariffs Day to all who celebrate. This is Jack Blanchard. FIRST IN PLAYBOOK: "Rahm Wants to Run. Yes, For the Presidency" — a marmalade-dropper from JMart to start your day. Rahm Emmanuel “has been as visible as any other Democrat” since returning from his stint as ambassador to Japan, writes POLITICO’s Jonathan Martin in his just-published column, and blatantly has 2028 in his sights. “Name the political podcast and Emanuel has likely been on it or will be shortly,” JMart notes. “He immediately snagged a CNN contract and regular Washington Post column … He’s also hitting the lecture circuit, appearing for paid and gratis gigs … and later this month will make his first stop on a service academy tour when he speaks at West Point.” The message: JMart has even seen the outline of a Rahm stump speech, with education — and a stern message for the left — at its heart. “I am done with the discussion of locker rooms,” Emmanuel told a D.C. conference last month, highlighting low achievement in kids’ reading skills. “I am done with the discussion of bathrooms … We better start having a conversation about the classroom.” And yes, the crowd lapped it up. Speaking of 2028: California Gov. Gavin Newsom has drawn 7 million views on YouTube for clips of the first episode of his new podcast series, a conversation with MAGA influencer Charlie Kirk, per Puck’s Peter Hamby. Dem strategists are watching with keen interest. For your listening today: Newsom interviews Steve Bannon.
|  | DRIVING THE DAY | | | 
President Donald Trump walks from the Oval Office to depart on Marine One on the South Lawn of the White House in Washington, Feb. 28, 2025. | Ben Curtis/AP | TRADE WARS, PART DEUX: Europe this morning slapped $25 billion of retaliatory tariffs upon U.S. imports as Donald Trump’s trade wars escalate around the world. The president’s 25 percent tariff on steel and aluminium imports kicked in at midnight as expected — and the European Union struck back within hours, with a raft of counter-measures on iconic American goods. As other Western allies hit by Trump’s latest tariffs consider their options, all eyes will again be fixed on the stock market this morning to see if the great U.S. sell-off continues. But an unrepentant Trump told business leaders last night the tariffs were necessary, and that the current turbulence is no more than “a period of transition.” We shall see. Addressing Europe this morning … EU Commission President Ursula Von Der Leyen described the bloc’s retaliatory measures as “strong but proportionate.” She stressed that the EU remains “open for dialogue” and keen to end the trade war as quickly as possible. “Tariffs are taxes,” she said. “They are bad for business, and even worse for consumers.” Nobody tell Karoline Leavitt. The details, per POLITICO’s Koen Verhelst: “The European Commission said it would, from April 1, reimpose tariffs in response to €8 billion in U.S. tariffs — including on iconic American products such as Harley-Davidson motorcycles, bourbon and jeans. And, from mid-April, it will set further countermeasures over €18 billion … The 27-nation bloc — a common market spanning 450 million people — wants to send an unmistakable message that the EU is serious about defending its economic interests should Trump launch a full-scale trade war.” Top of the morning to you! With deeply awkward timing, Trump will welcome Irish Taoiseach Micheál Martin to the White House this morning for his annual trip to D.C. ahead of St Patrick’s Day — and Ireland, in case you hadn’t noticed, is very much a member of the EU. Trump and Martin should both take brief questions from journalists at the top of the meeting at 10:45 a.m., and then again later on at a St. Patrick’s Day reception at 5 p.m. (No prizes for guessing what’ll be top of journos’ minds.) Martin starts his day with breakfast with VP JD Vance. Let’s hope he remembers to wear a suit. This all follows yesterday’s extraordinary on-off row with Canada, which saw Trump threaten to double the tariffs on Canadian metals to 50 percent in response to Ontario Premier Doug Ford’s tariff on U.S. electricity exports. Both sides eventually backed down, and Ford will meet with Commerce Secretary Howard Lutnick for further talk tomorrow. It’s this kind of uncertainty that is sending investors through the roof. Speaking of Lutnick: He defended Trump's economic policies in a CBS News interview yesterday, insisting tariffs are “worth it” even if they lead to a recession. “These policies are the most important thing America has ever had,” Lutnick told CBS when asked whether they would be worth it if they lead to a recession. “It’s worth it.” Lutnick quickly then tried to blame Joe Biden for any future recession … but that won’t stop Dems showing the clip on repeat if the economy goes downhill in the months ahead. Knives out: Moments like this from Lutnick are now unsettling those around Trump, POLITICO’s Megan Messerly, Dasha Burns, Ari Hawkins and Daniel Desrochers scooped last night. “White House and administration officials, as well as Trump’s outside allies, are growing increasingly frustrated with Lutnick, privately complaining about the close proximity he has to the president and the counsel he is giving him on economic issues. It’s an exasperation compounded by recent television appearances, they say, that suggest a lack of understanding of even the basics about how tariffs and the economy work.” Howard’s end? “Those factors, coupled with an abrasive personality, have left Lutnick with few friends in the administration,” Megan and co. add, “and a growing consensus within it that he could be forced to take the fall for the economic turmoil generated by the president’s unsteady tariff policies.” And there’s more: Clashes between Lutnick and other administration officials also appear prominently in a damning new WSJ piece on the state of Trump’s economic operation. But their bigger target is the scattershot approach taken by Trump himself. “Senior officials, including White House chief of staff Susie Wiles, have received panicked calls from chief executives and lobbyists, who have urged the administration to calm jittery markets by outlining a more predictable tariff agenda,” the Journal’s Brian Schwartz, Gavin Bade and Josh Dawsey report. “Many in the business community have abandoned efforts to get the president to reverse course on trade, instead pleading with the White House for clarity on his approach.”
| | A message from the American Bankers Association: Support the ACRE Act. Congress has a great opportunity to lift up rural America. By supporting the bipartisan Access to Credit for our Rural Economy (ACRE) Act, lawmakers can lower the cost of credit for farmers and ranchers trying to navigate a challenging economic cycle. The legislation will also drive down the cost of homeownership in more than 17,000 rural communities across the country. Learn more about this important effort to support farm country. | | | MEANWHILE ON THE HILL SPRING BREAK: Gleeful House Republicans head off for a 12-day break today after pushing through their stopgap funding bill without a single Democratic vote. As you no doubt saw, Speaker Mike Johnson — aided and abetted by the giant clunking fist of President Trump — eked out another victory last night, all-but-uniting his fractious conference to secure a seven-month continuing resolution, 217-213. It means the pressure today switches to Senate Democrats, who must decide whether to grudgingly back the GOP spending plan and risk the wrath of their own supporters, or use their filibuster powers to block the bill, triggering a federal government shutdown on Friday night. Neither option looks remotely palatable to Chuck Schumer and friends, but at this point there’s nowhere for Senate Dems to hide. The big winner: We’re only a couple months into the 119th Congress, but so far, Speaker Johnson — the man with The Hardest Job in Washington™ — appears to be pulling this thing off. Yes, he wouldn’t keep winning these votes without Trump turning the screws on his behalf. But still: Consider the internal diplomacy required just to get the GOP to this point, and just how precarious his position was after the bitter funding row before Christmas. The big losers: First, there’s Schumer himself, who faces a miserable few days which will further divide his party and potentially enrage either the Democratic base or the wider American public, depending which way the Senate vote goes. And then there’s the people of Washington D.C., who due to a still-unexplained drafting tweak to the funding bill are now facing in-year cuts to their essential public services totalling $1 billion, WaPo’s Meagan Flynn reports. The capital’s police, schools and health services are all on the butcher’s block. Incredibly, the measure won’t save the federal government a single cent. But the biggest message of all from last night: “It Really Is Trump’s Party Now,” writes POLITICO’s Capitol bureau chief Rachael Bade in her latest “Corridors” column. “Trump is redefining GOP orthodoxy in so many ways it’s difficult to keep track,” she writes. “But the turnabout on the House floor has been especially stark. Without much drama at all, he’s convinced even the most skeptical Republicans to extend a spending deal negotiated in part by Joe Biden and Chuck Schumer — making them swallow the kind of long-term patch that both fiscal hawks and Pentagon cheerleaders have railed against for years.” How it went down: Trump and Johnson’s strategy for winning over GOP holdouts involved much more than just threatening phone calls and all-caps blasts on social media, POLITICO’s ace Congress reporters Meredith Lee Hill and Jennifer Scholtes write. “It took an all-out lobbying blitz that involved promises of future spending cuts, a scattering of presidential threats and 11th-hour policy concessions involving tariffs and visas for Afghan refugees.” The crucial move, Meredith and Jennifer report, was bringing the hardline House Freedom Caucus into the bill-crafting process at an early stage. “Trump and White House officials made the strategic decision to get head rebel Rep. Chip Roy (R-Texas) and other perennial leadership critics on board with the plan early. It happened shortly after a White House meeting last month where Trump personally signed off on Johnson and Senate Majority Leader John Thune’s plan to abandon bipartisan funding talks and pursue a seven-month stopgap.” Rebel rebel: WaPo has a handy graphic showing last night’s barely-bipartisan voting split, with just a single rebel on either side. POLITICO’s Ben Jacobs interviewed Republican fiscal hardliner Rep. Thomas Massie (R-Ky.) on why he refused to support the bill despite Trump’s public threats. And the only House Democrat who did back the bill, Rep. Jared Golden (D-Maine), explains his reasons for doing so here. And so to the Senate: All attention now turns to the upper chamber — not least because the House just wrapped business until March 24. The key players now are Schumer’s Democrats, who have the numbers to block this bill via the filibuster if they so wish. The group is deeply divided on how to proceed (as CNN’s Manu Raju illustrates), with some senators fearful of the political and economic consequences of a shutdown, and others insisting the party stand up to Trump. Schumer hosts his caucus for a private lunch today to discuss Dem strategy, and every Hill reporter worth their salt will be hanging around to hear what went down. Follow along on our Inside Congress liveblog. Next on Johnson’s to-do list: The small matter of a reconciliation bill which somehow needs to put every one of Trump’s second-term priorities into legislative form and — again – win the backing of almost every Republican on the Hill. Per POLITICO’s Jordain Carney, Johnson told an event in Georgetown last night that he wants the bill on the House floor before Easter. Given the House leaves for recess on April 10, that gives the speaker less than a month to get this sorted. And as for House Dems … They’re all off to the Landsdowne, a luxury Virginia resort 25 miles down the Potomac, for a three-day policy retreat, report POLITICO’s Nicholas Wu and Mia McCarthy. The Dems, they write, are “looking for a reset as they try to close gaping divides over the party’s messaging and strategy — and regroup ahead of the 2026 midterms, where they have to flip only a handful of seats to regain the majority.” NOW READ THIS: Who are the best-dressed people in Congress? (What do you mean, none of them?) The great Derek Guy of X fame takes a closer look for POLITICO Magazine.
| | | | A message from the American Bankers Association:  
The bipartisan Access to Credit for our Rural Economy (ACRE) Act of 2025 would provide critical economic support to rural communities. Learn more. | | | THE MAGA REVOLUTION SCHOOL’S OUT: Trump’s long-promised war on the Education Department finally took shape last night as the department announced mass layoffs totalling almost half its workforce, AP’s Collin Binkley and Moriah Balingit write. Staff were told via email that all employees must “leave the building by 6 p.m. local time,” and that all department offices in D.C. and regionally would be closed today “for security reasons,” CBS News’ Sara Cook reports. What did you expect? Education Secretary Linda McMahon told Fox News’ Laura Ingraham the changes were aimed at cutting “bureaucratic bloat” and marked the first step in eliminating the department and handing powers back to states. In context: “The staff reductions announced Tuesday were the largest in department history and of a magnitude rarely contemplated before this administration took office,” WaPo’s Laura Meckler and Danielle Douglas-Gabriel report. “A senior official … insisted that the reductions will not impact its ability to deliver services to student borrowers, to distribute grant money to school districts or to enforce civil rights law … But critics said it was impossible to reduce staff so dramatically without affecting the services that states, school districts and students have come to rely on.” SLASH AND BURN: Those cuts are just the latest workforce reductions to hit the federal government as Trump and top aide Elon Musk continue their slash-and-burn approach. That strategy seems to have been taken literally at USAID, where staff were yesterday instructed to “shred and burn classified and personnel documents” at its former HQ in possible violation of federal record-preservation laws, Devex’s Sara Jerving scooped. Not at all worrying: The Trump administration is also cutting back the DOJ’s Public Integrity Section — leaving roughly six employees to staff “an office that, until recently, oversaw all federal public corruption cases nationwide and housed dozens of employees,”NBC News’ Ryan Reilly, Sarah Fitzpatrick and David Rohde report. And there’s more: NOAA, the nation’s premier weather agency, is slashing over 1,000 more jobs, meaning one in four have now gone since January, per AP. … New cuts at the GSA’s fine art and preservation units have stoked fears around the fate of the federal collection of precious artwork, per WaPo. … And the Department of Veteran Affairs’ efforts to address inequalities in the dispensing of benefits have been “effectively hobbled” by Trump’s DEI-focused cuts, per ProPublica. AND THE LOVE-IN CONTINUES: In an unheard-of move for a White House staffer, Musk has signaled to Trump’s political advisers that he plans to add a further $100 million to Trump’s political coffers, NYT’s Teddy Schleifer and Maggie Haberman report. It follows yesterday’s bizarre spectacle outside the White House, at which Musk and Trump showcased the full Tesla automotive lineup for the gathered cameras.
| | | | Policy moves fast—stay ahead with POLITICO’s Policy Intelligence Assistant. Effortlessly search POLITICO's archive of 1M+ news articles, analysis documents, and legislative text. Track legislation, showcase your impact, and generate custom reports in seconds. Designed for POLITICO Pro subscribers, this tool helps you make faster, smarter decisions. Start exploring now. | | | | | BEST OF THE REST ALL EYES ON PUTIN: The world is awaiting a response from Russia following Ukraine’s agreement to a U.S.-backed 30-day ceasefire. Russian officials have signaled they expect contact with the U.S. “in the next few days,” CNN’s Matthew Chance reports, though it’s far from clear how President Vladimir Putin will respond. “For Moscow, this is a moment of truth and one which may require awkward compromises if it is serious about peace,” Chance writes. “Even if Russian negotiators can impose their own conditions on the ceasefire … it is hard to imagine its greater territorial demands, let alone the goal of removing NATO from its western flank, would be met.” Reminder: Trump’s envoy Steve Witkoff is expected to meet Putin in Moscow this week. COLUMBIA UNIVERSITY LATEST: A courtroom showdown looms today over the future of Columbia University graduate student (and green card-holder) Mahmoud Khalil, whom the Trump administration is trying to deport over his alleged views on Hamas. But POLITICO’s Kyle Cheney reports the White House is preparing to do battle over where the case is eventually heard. Team Trump wants it to happen in conservative Louisiana, where Khalil is currently being held. Khalil’s lawyers want him transferred back to New York as quickly as possible. Dem discontent: Khalil’s potential deportation has put some Democrats in a tough spot, trying to balance their outrage over the alleged infringement of First Amendment rights without appearing supportive of antisemitism, POLITICO’s Amanda Friedman reports. Senate Minority Leader Chuck Schumer posted on X yesterday that while he abhors “many of the opinions and policies” Khalil holds, it would be “wrong” to deport him if he has committed no crime. THE NEW RIGHT: “Heritage Foundation prepared report calling for ending U.S. aid to Israel,” by Jewish Insider’s Danielle Cohen, Emily Jacobs and Marc Rod: “The Heritage Foundation has composed a new proposal calling for the U.S. to cut off aid to Israel by 2047 and require the Jewish state to increase its purchasing of U.S. defense materials … It was set to announce the report at an event on Wednesday, which has since been canceled.” MOTHERS OF INVENTION: As of last night, 218 House members — including 12 Republicans — have now signed onto a discharge petition by Reps. Brittany Pettersen (D-Colo.) and Anna Paulina Luna (R-Fla.) that would force a vote on a measure allowing new mothers to vote by proxy, The 19th’s Grace Panetta and Marissa Martinez report.
| | | | A message from the American Bankers Association:  
Urge Congress to support the ACRE Act which will lower the cost of credit in rural America. Learn more. | | | | | TALK OF THE TOWN | | PLAYBOOK INFLUENCER SECTION — “Trump official tasked with defending DOGE cuts posted fashion influencer videos from her office,” by CNN’s Curt Devine, Casey Tolan and Audrey Ash: “On the same day OPM sent a government-wide memo pressing federal officials to identify barriers they faced in their work to ‘swiftly terminate poor performing employees,’ [McLaurine] Pinover posted a video blowing a kiss to the camera with the caption ‘work look’ and the hashtag #dcinfluencer. … Pinover’s Instagram page linked to her account on the fashion website ShopMy, which featured links for viewers to buy the same pieces of clothing Pinover wore in her videos.” FIRST IN PLAYBOOK — The Aspen Economic Strategy Group announced that 11 new members have joined the bipartisan group: former Sen. Joe Manchin (I-W.Va.), former Speaker Kevin McCarthy, Kenneth Chenault, former Ambassador Rahm Emanuel, Mellody Hobson, Jonathan Levin, former Treasury Secretary Steven Mnuchin, former Secretary of Commerce Gina Raimondo, John Waldron, former Ambassador Meg Whitman and Heidi Williams. Full release OUT AND ABOUT — The Rockefeller Foundation hosted an event on Capitol Hill yesterday with Reps. Vern Buchanan (R-Fla.) and Chellie Pingree (D-Maine) which highlighted veterans’ experiences with Food is Medicine programs and launch of three new pilots to improve Veterans’ chronic health issues. Rockefeller Foundation President Raj Shah delivered remarks at the reception. SPOTTED:Joe Mendrala, Christine Going, Robin McKinnon, Brittney Roy-Morales, Jason Melton, Andrew Bremer, Caryn Marks, Anne Utech, Gina Plata-Nino, Susan Bratton, Maura Plante, Tom McDougall and Devon Klatell. — SPOTTED an event in Rayburn last night hosted by The Association for Prescription Psychedelics with Reps. Jack Bergman (R-Mich.) and Lou Correa (D-Calif.): Sen. Tim Sheehy (R-Mont.), Mimi Walters, Bob Dold and Jon Kostas.
| | | | California's tech industry is shaping national politics like never before. We’re launching California Decoded to unpack how the state is defining tech policy and politics within its borders and beyond. Sign up now to get it free for a limited time. | | | | | MEDIA MOVE — Averi Harper has been named the next political director for ABC News, and will relocate to D.C. She previously was deputy political director. TRANSITIONS — Rachel Millard is now director of corporate reputation and public affairs at EY (Americas). She previously was an SVP at Edelman Smithfield. … Chris Byrne is now a managing director at Breakwater Strategy. He is a Trump 2016, Fox News and Bush White House alum. … Lynese Wallace has been named director of Intersections of Our Lives. She most recently was chief of staff to Rep. Cori Bush (D-Mo.). … … Hailey Miller is now director of government relations and public policy for the Digital Power Network. She previously was a lobbyist for Tether, and is a Ted Cruz alum. … Rosalyn Hollingsworth is joining the Office of the USTR as deputy director of scheduling. She previously was a government affairs associate at Mehlman Consulting. HAPPY BIRTHDAY: Sen. Tammy Duckworth (D-Ill.) … Reps. Ritchie Torres (D-N.Y.) and Joyce Beatty (D-Ohio) … Jake Tapper … Andrew Young (93) … Emily Stephenson … Kedenard Raymond … Jalen Drummond … former Sens. Kent Conrad (D-N.D.) and Mitt Romney (R-Utah) … Remi Yamamoto … former Rep. Val Demings (D-Fla.) … Jordan Evich of Monument Advocacy … Alex Vargo … Riley Barnes … Scott Comer … Fox News’ Eric Shawn … Andres Penfold … Brian Weiss … Slate’s Jim Newell … WaPo’s Peter Spiegel … Colleen Carlos … S-3 Group’s Matt Bravo … Jeremy Pelzer … Aaron Magid … Rebekah Williams Lovorn … Neil Fried … Jeff Lande … James Ball … Steven Stenberg … Matt Glassman of Georgetown’s Government Affairs Institute … Economic Innovation Group’s Alex Heathcock … Amplifire Strategies’ Preston Maddock … Rachel Levitan … Eric Burns of Bullfight Strategies … Marshall Kosloff … David Sheon of Whitecoat Strategies … Tara (Jeffries) Payne … Marcy Stech … Jacob Castermans … John Myron of Rep. Rosa DeLauro’s (D-Conn.) office 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.
| | A message from the American Bankers Association: Support the ACRE Act. Farmers and ranchers play a critical role in ensuring America maintains its food independence and all Americans have affordable access to fresh, healthy food at their local grocery store. Congress can support our farmers and ranchers and lift up our rural communities by lowering the cost of credit for loans secured by rural or agricultural property. The Access to Credit for our Rural Economy (ACRE) Act of 2025 is a commonsense, bipartisan approach to help lower interest rates for rural borrowers. ACRE allows banks to offer lower interest rates on all loans secured by farm real estate and aquaculture facilities. ACRE would also reduce the cost of homeownership for people living in more than 17,000 thousand rural communities. Urge Congress to support our farmers and ranchers by passing the ACRE Act. Learn more here. | | | | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | |
