| | | |  | | By Eli Okun | | Presented by |  | | | |  | THE CATCH-UP | | | 
President Donald Trump's tariffs are already changing economies around the world. | Francis Chung/POLITICO | DR. TRUMP: “THE OPERATION IS OVER!” President Donald Trump declared on Truth Social this morning. “THE PATIENT LIVED, AND IS HEALING. THE PROGNOSIS IS THAT THE PATIENT WILL BE FAR STRONGER, BIGGER, BETTER, AND MORE RESILIENT THAN EVER BEFORE.” Tough medicine: Trump’s historic tariffs went off like a bomb this morning across the national and global economy, with financial and political fallout spreading as Trump’s new world order of 21st-century protectionism comes into clear view. Stock markets saw their worst decline in two years — with the Dow tumbling roughly 3 percent, the S&P 500 4 percent and the Nasdaq 5 percent — and the dollar weakened as fears of recession and higher inflation grew. The WSJ estimates that $2.7 trillion went poof across the big indexes. In corporate America: Ripple effects are already beginning to appear. Stellantis said it’ll hand out temporary pink slips to 900 workers across the country as it gauges what’s next, per Reuters. (The United Auto Workers slammed this as unnecessary.) The Hill to die on: With some Republicans uneasily eyeing the ramifications, a rare spot of GOP pushback emerged from Sen. Chuck Grassley (R-Iowa), who introduced legislation with Sen. Maria Cantwell (D-Wash.) to claw back Congress’ tariff power, per POLITICO’s Ben Leonard. The bill would force levies to be approved by Congress and allow them to end the tariffs. … Following his successful play to pass a bill through the Senate blocking Trump’s Canada tariffs, Sen. Tim Kaine (D-Va.) plans to do it again for Trump’s new universal 10 percent tariffs. Senate Dems also plan to force tariff votes during vote-a-rama, per Semafor’s Eleanor Mueller and Burgess Everett. But but but: None of that legislation, of course, stands much chance of becoming law. And many Republicans are holding their fire; Senate Majority Leader John Thune told reporters that he views the tariffs as leverage to force changes from other countries. Eric Trump sounded a similar note. That, however, has not been the message from the president and some of his top officials, who have framed these tariffs as a revolution to transform America, not a tactic. “Trump has bet that he can speed the end of the age of globalization,” NYT’s David Sanger writes. On defense: Administration officials fanned out across the airwaves to make the case for Trump’s tariffs. Commerce Secretary Howard Lutnick told Bloomberg that countries will have to make changes to regulations or value-added taxes, not just their own tariffs, to get U.S. relief: “These non-tariff trade barriers, they are the monster that needs to be slayed.” On CBS, he also dismissed the idea that market backlash would spook the administration: “This is a reordering of global trade.” And press secretary Karoline Leavitt maintained to NewsNation that “there’s not going to be any pain for American-owned companies and American workers.” (Read the NYT on whether Trump can really revive manufacturing.) The global reaction: French President Emmanuel Macron called for companies to stop investing in the U.S. for now: “We must have collective solidarity.” Within the EU, both France and Germany are urging the bloc to respond aggressively, Bloomberg’s Ania Nussbaum, Samy Adghirni, and Kamil Kowalcze report. … Canadian PM Mark Carney promised “carefully calibrated and targeted” countermeasures on autos, per POLITICO’s Mike Blanchfield. … Norway floated the prospect that Trump might be violating NATO’s Article 2, per CNN’s Alex Marquardt. … China warned it would retaliate, per Reuters. … But Russia was delighted. LAURA LOOMER GETS RESULTS: The White House has axed multiple NSC staffers in what’s being described as an “anti-neocon move,” Axios’ Barak Ravid, Dave Lawler and Alison Snyder scooped. One source told them the “bloodbath” could see as many as 10 fired. CNN’s Katie Bo Lillis, Alayna Treene, Kylie Atwood and Kaitlan Collins name Brian Walsh, Thomas Boodry and David Feith as three of the officials let go. The changes come after far-right conspiracy theorist Laura Loomer urged Trump in a White House meeting yesterday to oust some NSC staffers, NYT’s Maggie Haberman, Jonathan Swan and Ken Bensinger reported earlier. Loomer showed Trump materials “attacking the character and loyalty of numerous N.S.C. officials.” The Times pegs the number of people fired at six, but principal deputy national security adviser Alex Wong was not among them. Loomer is “apparently wielding more influence over the staff of the National Security Council than [national security adviser Mike] Waltz, who runs the agency,” they write. Good Thursday afternoon. Thanks for reading Playbook PM. Drop me a line at eokun@politico.com.
| | | | A message from Instagram: States are taking action to protect teens online. Congress should, too.
Today, teens can download any app – even ones parents don't want them to. Federal action putting parents in charge of teen app downloads can help keep teens safe online.
Twelve states are considering legislation requiring app store parental approval and age verification. It's time for Congress to do the same with federal legislation.
Learn more. | | | | | | 6 THINGS YOU NEED TO KNOW | | 1. 2026 WATCH: Rep. Chris Pappas (D-N.H.) made it official — he’s running for Senate, WMUR-TV’s Adam Sexton scooped. His launch video emphasizes taking on “special interests and big corporations” and goes after Elon Musk. … Independent Dan Osborn may shake up another Nebraska Senate race, today announcing an exploratory committee for a potential run against GOP incumbent Pete Ricketts, POLITICO’s Brakkton Booker and Jordain Carney report. Osborn mounted an unusually strong, pro-labor challenge to GOP Sen. Deb Fischer last year but still lost by several points. Now he may try his populist message against one of the wealthiest members of Congress, but it would still be an uphill battle. Race for the House: Democrat Bob Harvie is jumping into the race to challenge Rep. Brian Fitzpatrick (R-Pa.), the Philly Inquirer’s Julia Terruso reports. Dems have long been unable to pick off the moderate Fitzpatrick — one of just three Republicans nationwide representing a district Kamala Harris won — but Harvie, the Bucks County Commissioners chair and a former public school teacher, will hope to repeat his success from flipping the county board in 2020. 2. HILL HAPPENINGS: The Senate Banking Committee approved the nominations of Paul Atkins as SEC chair and Jonathan Gould as comptroller of the currency on party-line votes this morning, per POLITICO’s Michael Stratford. Luke Pettit’s Treasury nomination got bipartisan backing. … Speaker Mike Johnson is working behind the scenes to try to figure out a path forward with Rep. Anna Paulina Luna (R-Fla.) amid their proxy voting fight, which has brought the House to a standstill, POLITICO’s Meredith Lee Hill reports. He’s also considering finding a leadership spot for Rep. Elise Stefanik (R-N.Y.) as a supercharged chair of the Elected Leadership Committee, Semafor’s Kadia Goba reports. 3. PAX AMERICANA: “Justice Department declined to prosecute Texas AG Paxton in final weeks of Biden’s term,” by AP’s Alanna Durkin Richer and Eric Tucker: The DOJ’s quiet decision “effectively [ended] the corruption investigation that cast a long shadow over [Ken Paxton’s] political career” … Politically appointed Justice Department leadership was not involved in the decision, which was recommended by a senior career official who had concerns about prosecutors’ ability to secure a conviction.”
| | | | Cut through policy complexity and turn intelligence into action with POLITICO’s Policy Intelligence Assistant—a new suite of tools designed to save you time and demonstrate your impact more easily than ever—available only to Pro subscribers. Save hours, uncover critical insights instantly, and stay ahead of the next big shift. Power your strategy today—learn more. | | | | | 4. RUBIO ABROAD: Secretary of State Marco Rubio told NATO today that Trump won’t pull the U.S. out of the military alliance — but warned European members to spend more and assume a bigger role, per WaPo. In his first visit to the Brussels headquarters since taking over at State, Rubio dismissed speculation about the U.S. withdrawing as “hysteria and hyperbole,” per Bloomberg. Europe is trying to make sure the U.S. doesn’t pull back from them or Ukraine too quickly for them to make up the gaps. War in Ukraine: Bloomberg reports that Russia isn’t really worried about Trump’s sanctions threats, but it does want to continue negotiations in hopes that Trump can deliver a peace deal in the Ukraine war that’s favorable to Moscow. “The Kremlin is holding out for more US concessions, including some sanctions relief and a suspension of arms deliveries to Ukraine.” Otherwise, Russia is ready to keep attacking Ukraine. 5. IMMIGRATION FILES: “Trump touted these ICE arrests. Half were already in prison,” by WaPo’s Maria Sacchetti and Artur Galocha: “The Trump administration has roared into cities and towns over the past two months, often with cameras and celebrity live-streamers in tow, to arrest thousands of immigrants they say pose a threat to Americans. … The White House has showcased 72 ICE arrests. At least 36 — or half — were in state prisons or local jails when Immigration and Customs Enforcement said they arrested them. Another 17 were on parole or probation after serving years in prison.” 6. IN THE DOGE HOUSE: The Department of Government Efficiency’s abrupt mass firing notices sent to USAID staffers “were so rife with errors that corrected versions are being issued to avoid affecting pensions and pay,” Reuters’ Jonathan Landay and Patricia Zengerle scooped. “The only thing correct was my name,” one employee said. Meanwhile, in the wake of reporting that Musk would soon step back from his administration role, VP JD Vance said on Fox News today that he’ll “remain a friend and adviser.” DOGE “is not even close to done,” he added. The fallout: After the EPA cut more than $1.5 billion in grants, many rural Western communities are losing funding to address firsthand effects of climate change, from flooding to drought, WaPo’s Joshua Partlow and Amudalat Ajasa report. Nonprofit groups, including one that distributed air purifiers during intense periods of wildfire smoke, are staring down big losses.
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| | | | | | TALK OF THE TOWN | | Mike Pence will receive the John F. Kennedy Profile in Courage Award for certifying the 2020 election. Hayden Haynes, chief of staff to Mike Johnson, pleaded not guilty to driving under the influence. Elizabeth Schulze of ABC welcomed a new baby. PLAYBOOK METRO SECTION — “Trump’s Order Puts the Smithsonian’s Chief in the Hot Seat,” by NYT’s Robin Pogrebin, Graham Bowley and Jennifer Schuessler OUT AND ABOUT — Procter & Gamble hosted its annual “Delivering Relief” event with kit packing for states that have experienced disasters and a reception, in collaboration with Matthew 25: Ministries, at Bullfeathers yesterday evening. SPOTTED: Reps. John Joyce (R-Pa.), David Taylor (R-Ohio), Andrew Garbarino (R-N.Y.) and Pat Harrigan (R-N.C.), Tara Hogan Charles, Jonny Slemrod, David Thomas, Paul Thornell, Lisa Goldman, Helen Tolar and Kev Dumay. — SPOTTED at the opening night of “Uncle Vanya” at Shakespeare Theatre Company, directed by Simon Godwin: Hugh Bonneville, John Benjamin Hickey, Carol Rocamora, Ed Gero, Craig Wallace, Sen. Roger Wicker (R-Miss.), Rep. Gabe Amo (D-R.I.), Jane Harman, Evan Ryan, Nicole Elkon, Julie Mason, Anita Antenucci and Abbe Lowell. — SPOTTED at a Y Combinator tech competition summit on “Making America Competitive Again,” at Gallup: Sens. Cory Booker (D-N.J.) and Josh Hawley (R-Mo.), Andrew Ferguson, Teresa Ribera, Gail Slater, Tim Sweeney, Garry Tan, Lina Khan, Jonathan Kanter, Blake Scholl, Matt Stoller, Joshua Green, Steve Bannon, Rohit Chopra, Saagar Enjeti, Doha Mekki, Mike Davis and Stephen Miller. — SPOTTED at the Information Technology Industry Council’s tech policy summit, The Intersect: Sens. Amy Klobuchar (D-Minn.) and Dave McCormick (R-Pa.), Reps. Brett Guthrie (R-Ky.), Suzan DelBene (D-Wash.), Jay Obernolte (R-Calif.), John Joyce (R-Pa.), Gabe Amo (D-R.I.) and Bob Latta (R-Ohio), FCC Commissioner Nathan Simington, Morgan Adamski, Cate Johnson, Alan McQuinn, Cristiano Amon, Barbara Humpton and Jason Oxman. MEDIA MOVES — Editor-in-chief Radhika Jones is leaving Vanity Fair, she announced to staff. More from TheWrap … Eugene Robinson is leaving WaPo, where he’s been a Pulitzer-winning, longtime columnist, NYT’s Ben Mullin scooped. TRANSITIONS — The Leadership Conference and Leadership Conference Education Fund have added Jessica “Jess” Smith as chief of staff, Michelle Hudgins as VP of comms and Vonetta Faulkner as VP of finance. Smith most recently was a senior policy adviser to VP Kamala Harris. Hudgins most recently was VP of comms at the Pew Research Center. Faulkner previously was a financial management consultant at Marcum Advisors. … Jin Choi is now comms director for Rep. Nanette Barragán (D-Calif.). She previously was battleground state deputy digital director for the Harris campaign. 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.
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