Trump says more tariffs coming, calls for lower interest rates
Donald Trump has called for interest rates to be lowered, and said they would “go hand in hand” with tariffs he plans to announce.
He made the quip on Truth Social:
Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!! Lets Rock and Roll, America!!!
While tariffs are in a president’s wheelhouse, interest rates are not. Those are controlled by the independent Federal Reserve, and though presidents appoint the central bank’s leaders, they usually don’t push for them to lower rates – except for Trump, who did this sort of thing in his first term.
Key events
Hegseth says Europe must provide ‘overwhelming share’ of aid to Ukraine
Addressing a meeting of Ukraine’s western allies in Brussels, defense secretary Pete Hegseth said the Trump administration expects European nations to pay for the “overwhelming share” of Ukraine’s defense.
We have a live blog covering the event, and you can follow it here:
US consumers saw more inflation than expected in January
Consumer price inflation was higher than forecast in the United States last month, just-released government data confirms, potentially reducing the likelihood that the Federal Reserve will heed Donald Trump’s call to reduce interest rates.
The data is also a warning sign for the new president that the deeply unpopular economic force, which played a major role in sinking Joe Biden’s public standing, is not quelled. Here’s more on the price growth, from the Guardian’s Callum Jones:
Trump says more tariffs coming, calls for lower interest rates
Donald Trump has called for interest rates to be lowered, and said they would “go hand in hand” with tariffs he plans to announce.
He made the quip on Truth Social:
Interest Rates should be lowered, something which would go hand in hand with upcoming Tariffs!!! Lets Rock and Roll, America!!!
While tariffs are in a president’s wheelhouse, interest rates are not. Those are controlled by the independent Federal Reserve, and though presidents appoint the central bank’s leaders, they usually don’t push for them to lower rates – except for Trump, who did this sort of thing in his first term.
Nato secretary general Mark Rutte said on Wednesday that he agrees with Donald Trump on the need for more burden sharing between the US and its European allies on aid for Ukraine, Reuters reports.
“I agree with him that we must equalize security assistance to Ukraine,” Rutte told reporters in Brussels on Wednesday ahead of a gathering of officials dedicated to discussing help for Ukraine.
Nato members agreed last year to provide Ukraine with 40bn euros in security assistance within a year but ended up sending over 50bn, with over half coming from European allies and Canada, according to the alliance.
‘On the brink of a dictatorship’: Democratic state attorneys general condemn Trump’s actions
![Lauren Gambino](https://i.guim.co.uk/img/uploads/2023/05/25/Lauren_Gambino.png?width=300&quality=85&auto=format&fit=max&s=3833532f3081d9984bd879152f17b9f6)
Lauren Gambino
Several Democratic state attorneys general warned that the country was in the grip of a full-blown constitutional crisis, as they battle Donald Trump in court over actions they argue are lawless and in some cases brazenly unconstitutional.
“We are on the brink of a dictatorship, and America has never been in a more dangerous position than she is today,” Kris Mayes, the attorney general of Arizona, said at a press conference in Los Angeles on Tuesday.
Mayes alleged Trump’s stunning power grabs, his disregard for the rule of law, his alliance with – and reliance on – billionaire Elon Musk, and his attacks on judges and journalists amounted to “an ongoing coup against American democracy”.
“He was elected president, but no one put a crown on this guy’s head,” said Delaware’s attorney general, Kathy Jennings, co-chair of the Democratic Attorneys General Association, which convened its quarterly policy conference in Los Angeles. The state attorneys general spoke to reporters during a round table on the sidelines of the event.
“We have three branches of government,” Jennings continued. “He thinks there’s one. We have separation of powers. He thinks there is none.”
You can read the full report here:
Donald Trump is scheduled to attend a meeting of global financiers and tech executives hosted by Saudi Arabia’s sovereign wealth fund in Miami later in February, Reuters reports, citing several people with knowledge of the event.
Trump’s participation would come after Saudi Arabia condemned his call to displace Palestinians from Gaza as part of a US–led rebuilding plan.
It also follows Trump’s call in January for Riyadh to invest $1tn in the US – a figure about matching the size of the Saudi PIF sovereign fund’s assets.
According to the people, who spoke to Reuters on condition of anonymity, Trump is scheduled to deliver an in-person address at the gathering.
A Riyadh-based representative for the FII Priority summit, scheduled for February 19 to 21, declined to comment. Representatives for the US embassy in Riyadh didn’t immediately respond to a request for comment.
The Kremlin said on Wednesday that a Russian citizen was freed in the United States in exchange for Moscow’s release of American Marc Fogel, but refused to identify them until they arrive in Russia.
Fogel, a history teacher who was deemed wrongfully detained by Russia, was released and returned to the US on Tuesday in what the White House described as a diplomatic thaw that could advance negotiations to end the war in Ukraine.
When asked what the United States gave up in exchange for Fogel, Trump told reporters: “Not much” and called the release a show of good faith from the Russians.
He added: “We were treated very nicely by Russia, actually. I hope that’s the beginning of a relationship where we an end that war.”
Fogel was arrested in August 2021 and was serving a 14-year prison sentence.
Kremlin spokesman Dmitry Peskov told reporters the unidentified Russian individual would return to Russia “in the coming days,” and their name would be revealed once they are on the Russian soil.
Misleading Ice data ‘laying groundwork’ for mass deportations, advocates say
Will Craft
US Immigration and Customs Enforcement (Ice) arrested more than 8,200 people between 22 January and 31 January, according to data the department is releasing on social media.
The figures are the first public data into the new Trump administration’s promised mass-deportation efforts and are part of a new tactic from the administration to promote its efforts to fulfill Donald Trump’s campaign promise to detain and deport millions of undocumented immigrants. The posts highlight the daily number of arrests and detainers, which are requests to local law enforcement agencies to hold someone so that Ice can detain them.
As of 10 February, the agency hasn’t released any new figures in 10 days. But on average, the administration has been arresting 826 people a day since the president was inaugurated on 20 January.
If Ice continues to arrest people at this rate, the administration is on track to arrest nearly 25,000 in its first 30 days, more than any other month in the last 11 years.
You can read the full report here:
US defense secretary Pete Hegseth arrived for his first meetings at Nato headquarters on Wednesday looking to push European nations over support for Ukraine and ramping up military spending.
Washington’s allies are waiting nervously for clarity from president Donald Trump’s administration after he demanded Nato more than double its spending target and vowed to end the war in Ukraine.
Hegseth’s two days of talks in Brussels with his counterparts from Nato and Ukraine are part of a series of visits to Europe this week by top US officials, AFP reports. They will culminate with vice-president JD Vance meeting Ukrainian president Volodymyr Zelenskyy at a security conference in Munich on Friday.
Hegseth wrote on X:
Arrived at NATO HQ. Our commitment is clear: NATO must be a stronger, more lethal force – not a diplomatic club. Time for allies to meet the moment.
On Wednesday the Pentagon chief will sit down with an international coalition of Ukraine’s backers before huddling with the 31 other defence ministers from Nato on Thursday.
Supreme Court Justice Sonia Sotomayor advocates for courts to proceed ‘cautiously’
US supreme court Justice Sonia Sotomayor, without directly mentioning the new administration, advocated on Tuesday evening for US courts to move cautiously to maintain a system of checks and balances with the executive.
“By and large, we have been a country who has understood that the rule of law has helped us maintain our democracy,” she said on Tuesday. “But it’s also because the court has proceeded cautiously, and has proceeded understanding that it has to proceed slowly.”
Speaking at an event hosted by the Knight Foundation, she said:
Court decisions stand, whether one particular person chooses to abide by them or not. It doesn’t change the foundation that it’s still a court order that someone will respect at some point.
She said that it was especially a responsibility of the supreme court to “make it clear to the society, to presidents, to Congress, to the people, that we are doing things based on law, and the constitution, as we are interpreting it fairly.”
“We must be cognizant that every time we upset precedent, we upset people’s expectations and the stability of law. It rocks the boat in a way that makes people uneasy about whether they’re protected or not protected by the law,” she said, adding “And if you’re going to undo precedent, do it in small measures. Let the society absorb the steps.”
Last year, in a stark dissent from the conservative-majority opinion granting Donald Trump some immunity from criminal prosecution, Sotomayor said the decision was a “mockery” that makes a president a “king above the law”.
Trump lost in federal court again on Tuesday when the first circuit court of appeals declined his administration’s request to lift a temporary restraining order issued by a federal judge that bars Trump from freezing spending at federal agencies.
Earlier this week vice-president JD Vance hit out at the legal challenges against Trump’s executive orders, saying on social media “Judges aren’t allowed to control the executive’s legitimate power.”
![Jon Henley](https://i.guim.co.uk/img/uploads/2017/10/06/Jon_Henley,_L.png?width=300&quality=85&auto=format&fit=max&s=cf23d4c141249ac9dd9f5c331c359f12)
Jon Henley
Jon Henley is the Guardian’s Europe correspondent, based in Paris
Donald Trump’s return to the White House has sparked a “remarkable shift” in Europeans’ view of the US, according to a survey, with even the most America-friendly no longer seeing Washington primarily as an ally.
The polling, of 11 EU member states plus Ukraine, Switzerland and the UK, found most people now regard the US as merely a “necessary partner”. An average of 50% of Europeans across the member states surveyed view the US this way, the study revealed, with an average of only 21% seeing it as an ally, leading the report’s authors to urge a more “realistic, transactional” EU approach.
The figures “speak to a collapse of trust in Washington’s foreign policy agenda” and heralded “the potential death knell of the transatlantic alliance” said Arturo Varvelli, co-author of the report, by the European Council on Foreign Relations (ECFR).
You can read Jon Henley’s report in full here: Most Europeans see Trump’s US as more a necessary partner than ally, poll finds
Court action over Trump’s gutting of USAid agency to continue on Wednesday
US district judge Carl Nichols will hear arguments on Wednesday after a request from USAid employee groups to keep blocking the Trump administration’s move to put thousands of staffers on leave, Associated Press reports.
Nichols, an appointee of president Donald Trump, dealt the administration a setback Friday in its dismantling of the agency, temporarily halting plans to pull all but a fraction of USAid staffers off the job worldwide.
Trump and Elon Musk’s cost-cutting “department” have hit USAid particularly hard as they look to shrink the size of the federal government, accusing its work of being wasteful and out of line with Trump’s agenda. “The President’s powers in the realm of foreign affairs are generally vast and unreviewable,” government lawyers argued.
USAid staffers and supporters have called the aid agency’s humanitarian and development work abroad essential to national security. The administration has claimed USAid is rife with “insubordination” and must be shut down in order to decide what pieces could be salvaged.
A judge has ordered Louisiana State University to fully reinstate a professor who was removed from his teaching duties last month after he used vulgar language to criticise Gov Jeff Landry and President Donald Trump during a lecture, Associated Press reports.
Tenured law professor Ken Levy was recorded by students saying about November’s election “I can’t believe that fucker won”. An anonymous student complaint led to him being relieved from his teaching responsibilities. During two days of testimony, law students and another professor spoke about the “chilling effect” Levy’s removal had on them, and that it exacerbated fears over speaking freely in the classroom.
“Everyone was vulnerable if I lost this,” Levy said outside of the Baton Rouge courthouse Tuesday night, specifically speaking about other university faculty members and students. “So my win is their win.”
Welcome and opening summary …
Welcome to the Guardian’s rolling coverage of US politics and the second Donald Trump administration. Here are the headlines …
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The White House fired Paul Martin, the independent inspector general for the US Agency for International Development (USAid) on Tuesday, one day after he issued a damning report detailing the impact of the sudden dismantling of the agency.
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Elon Musk claimed in the Oval Office on Tuesday that his so-called “department of government efficiency” (Doge) was providing maximum transparency, contradicted by the reality of how he has operated in deep secrecy.
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Trump’s trade adviser Peter Navarro has claimed Australia is “crushing” and “killing” America’s manufacturing sector with its imports of aluminium
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The Associated Press said it was barred from sending a reporter to Tuesday’s Oval Office executive order signing in an effort to “punish” the agency for its style guidance on upholding the use of the name of the Gulf of Mexico.
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India’s prime minister, Narendra Modi, is heading to Washington for high-stakes talks in an attempt to avoid a trade war. India is considering tariff cuts in at least a dozen sectors in the hope of dodging US tariffs.