The Bulletin
WORLD IN BRIEF
- Russian markets surge amid sanctions ease: Russia's stock market has surged on March 4 amid reports that President Trump's administration is working on a plan to ease current U.S. sanctions on Russia, according to TradingEconomics.com.
- China strikes back on US tariffs: China has announced additional tariffs on U.S. agricultural products and food items in response to President Trump's decision to double tariffs on Chinese imports. Here's a list of the targeted products.
- Tax refund update: The Internal Revenue Service has said more than $100 billion has been returned to taxpayers through refunds so far this year. Know more.
- Pope Francis health: Pope Francis was resting on Tuesday after experiencing two acute respiratory crises on Monday that required a return to noninvasive mechanical ventilation, the Vatican confirmed.
- Island hit by sabotage attack: Swedish police officers are probing a suspected sabotage incident on the island of Gotland in the Baltic Sea—which is playfully now dubbed by some Western officials as the "NATO lake." Find out more.
- Weather warnings: Severe storms are expected to hit parts of Texas and Oklahoma, bringing the potential for damaging winds, large hail and tornadoes. Check out the affected areas.
US Products That Could Get More Expensive After Trump's Tariffs
The rundown: President Donald Trump is set to impose sweeping tariffs on goods imported from Canada, Mexico and China on Tuesday, in a move that experts warned could end up driving up the cost of everyday goods in the U.S. and weighing on American consumers. Here are the products that could see price increases.
Why it matters: The tariffs expected to come into effect today will add a 25 percent fee on all products coming from Canada and Mexico, and an additional 10 percent on goods coming from China. The president framed the tariffs as a response to the two countries allowing fentanyl to flow through their borders into the U.S. "at very high and unacceptable levels," though he admitted that "a large percentage" of the drugs were made in China. Trump's announcement also sent investors in a panic and stock markets tumbling. Both Canada and China have promised to retaliate against the Trump administration's new tariffs.
Read more in-depth coverage:
Canada Threatens Retaliation After Trump Tariffs
TL/DR: The S&P 500 plunged 1.8 percent on Monday, the steepest one-day drop so far this year.
What happens now? The impact of Trump's tariffs is expected to be felt on American consumers as well as on the global economy. Countries like Canada and Mexico, whose economies are intertwined with the U.S. and rely heavily on trade with their powerful neighbor, are expected to suffer dramatically from the new policies.
Deeper reading US Products That Could Get More Expensive After Trump's Tariffs
$840 Billion Plan To 'Rearm Europe' Announced
The rundown: The European Union will free up $840 billion in funding to funnel into defense across the bloc, European Commission chief Ursula von der Leyen announced on Tuesday. Learn more about the decision.
Why it matters: Dubbed "Rearm Europe," the remarks from the European Commission's president come hours after President Trump suspended all U.S. military aid to Ukraine, widening the gulf between Washington and Kyiv and going against the fresh commitments of support from Europe for Ukraine in recent days. The European Commission head said she had written a letter to the leaders of the European governments to outline a "set of proposals" to "rearm Europe." It details "how to use all the financial levers at our disposal in order to help member states to quickly and significantly increase expenditures in defense capabilities, urgently now, but also over [a] longer period of time, over this decade."
Read more in-depth coverage:
Why Europe Can't Defend Itself Without Trump
TL/DR: European officials publicly and privately agree that defense spending must dramatically increase, but are split on how quickly this can happen, and by just how much.
What happens now? As Washington rewrites its relationship with the continent, there are deep and pressing concerns about whether the various leaders across the continent can come up with a coherent strategy to protect NATO's continental countries, without U.S. involvement.
Deeper reading $840 Billion Plan To 'Rearm Europe' Announced
Trump Secures $100 Billion Boost for US Tech Industry
The rundown: Semiconductor giant Taiwan Semiconductor Manufacturing Company (TSMC) announced Monday that it is pouring another $100 billion into its U.S. operations after President Trump's tariff threat on foreign chips. Here's what to know.
Why it matters: Taiwan plays a crucial role in global chip industry, producing 60 percent of the world's semiconductors, providing essential components in everything from electric cars to ATMs. The new TSMC investments will fund three new chip fabrication plants [fabs], two advanced packaging facilities, and a new research and design (R&D) center. This brings the company's total investment in Phoenix, Arizona, to $165 billion—the largest foreign direct investment in U.S. history. In its press release, TSMC projected that the investment would "support 40,000 construction jobs over the next four years and create tens of thousands of high-paying, high-tech jobs in advanced chip manufacturing and R&D."
Read more in-depth coverage:
Trump Deals Hammer Blow to Taiwan with Semiconductor Tariffs
TL/DR: Trump called semiconductors the "backbone of the 21st century" and a national security issue.
What happens now? News of TSMC's expansion raised concerns in Taiwan that the deal would entail moving the company's cutting-edge chip production to the U.S. Economics Minister Kuo Jyh-huei reassured lawmakers stateside that fabs will not be producing 2-nm chips or the even more advanced 1.6-nm chips next year, local media reported.
Deeper reading Trump Secures $100 Billion Boost for US Tech Industry
Trump's Halt on Ukraine Aid Could Backfire for Russia: Retired US General
The rundown: The Russia-Ukraine war continues to spell "big trouble" for Moscow regardless of whether Ukraine receives any U.S. military aid, according to retired U.S. Army General Ben Hodges, who said the U.S. freeze could even sting Russia on the battlefield in the long run. Find out more about what he said.
Why it matters: On Monday evening, the Associated Press reported that Trump had at least temporarily paused all U.S. military aid to Ukraine. The pause reportedly includes all military equipment and supplies in transit to Ukraine. During an interview with CNN's Erin Burnett just before the pause, Hodges, former commanding general of the U.S. Army Europe, suggested that stopping U.S. aid to Ukraine would inspire Kyiv's European allies to make up the difference. He then argued that Russia had been in "trouble" since Russian President Vladimir Putin ordered his forces to invade Ukraine in February 2022. Hodges went on to suggest that the U.S. would regret abandoning Ukraine.
Read more in-depth coverage:
Can Ukraine Survive Without US Help? Zelensky's Answer Amid USAID Shutdown
TL/DR: An anonymous senior Defense Department official told Bloomberg that Trump would keep the freeze in place until he is convinced that Ukraine is making "a good-faith commitment to peace."
What happens now? The future of the Russia-Ukraine war remains uncertain. Ukraine's already precarious position is likely to rapidly deteriorate unless it can replace any lost U.S. military aid and resources with support from other allies.
Deeper reading Trump's Halt on Ukraine Aid Could Backfire for Russia: Retired US General
Which Student Loan Repayment Plans Has Trump Suspended?
The rundown: The Trump administration has suddenly stopped accepting online applications for four of its federal student loan income-driven repayment (IDR) and loan consolidation plans. Find out which programs have been suspended.
Why it matters: According to the Federal Student Aid website, the removal of online applications is due to a "federal court issued an injunction preventing the U.S. Department of Education from implementing the Saving on a Valuable Education (SAVE) Plan and parts of other IDR plans." No official announcement was made by the White House. The removal of the IDR applications affects millions of borrowers who rely on repayment plans to manage their student debt. Last summer, a coalition of GOP-led states sued to halt the plan, resulting in 8 million enrolled borrowers being placed in interest-free forbearance while the case progressed.
Read more in-depth coverage:
The IRS Can Seize Your Tax Refund: Here's Who's Impacted
TL/DR: "As a result, the IDR and online loan consolidation applications are temporarily unavailable," a banner notice on the Federal Student Aid website reads. Borrowers are still invited to submit paper applications.
What happens now? Guidance from the Education Department on January 15 indicated that borrowers enrolled in the SAVE plan will not be required to make payments until at least December 2025 while student-loan servicers adjust payment plans for affected borrowers.
Deeper reading Which Student Loan Repayment Plans Has Trump Suspended?
White House Announces Theme of Trump's Address to Congress: What to Know
President Donald Trump's first address to a joint session of Congress of this term will focus on the theme "The Renewal of the American Dream," Fox News Digital first reported on Monday night.
Trump is set to deliver his first address to Congress of his second presidential term on Tuesday, just over seven weeks since his return to the White House. The address will allow him to make a case defending his record on the economy and culture war issues as his approval rating slowly ticks down.
