Prime Minister Narendra Modi’s longstanding friendly rapport with President Donald Trump could be tested as the Indian leader kicks off a visit to Washington on Wednesday, eager to avoid tariffs that have been slapped on others and threats of further taxes and imports.
More tariffs are expected, however: Trump is taking additional action to upset the world trade system, with plans to sign an order as soon as Wednesday that would require that U.S. tariffs on imports match any tax rates charged by other countries.
Meanwhile, Elon Musk is defending the swift and extensive cuts he’s pushing across the federal government.
Here’s the latest:
CFPB layoffs begin with fill-in-the-blank firing memo
The Consumer Financial Protection Bureau has started laying off probationary employees by distributing a form letter that doesn’t include their names.
“MEMORANDUM FOR (EmployeeFirstName) (EmployeeLastName),” the letter says. “This is to provide notification that I am removing you from your position of (JobTitle).”
“Unfortunately, the Agency finds that that you are not fit for continued employment because your ability, knowledge and skills do not fit the Agency’s current needs.”
Probationary employees have less civil service protection because they’ve been on the job for less than a year. The bureau, which says it has obtained nearly $20 billion in financial relief for U.S. consumers, is the latest target as President Trump and Elon Musk dismantle federal regulators.
▶ Read more on Trump’s effort to shut down consumer protection bureau
What to expect in Trump and Modi’s White House meeting
Prime Minister Narendra Modi’s longstanding relationship with Trump could be tested as the Indian leader kicks off a visit to Washington on Wednesday, eager to avoid tariffs that have been slapped on others and threats of further taxes and imports.
India, a key strategic partner of the United States, has so far been spared any new tariffs, and the two leaders have cultivated a personal relationship. Modi — a nationalist criticized over India’s democratic backsliding — has welcomed Trump’s return to the White House, seeking to reset India’s relationship with the West over his refusal to condemn Russia for its war on Ukraine.
But Trump has repeatedly referred to India as a “tariff king” and pressed the South Asian country on the deportation of migrants. In response, New Delhi has shown a willingness to lower its own tariffs on U.S. products, accept Indian citizens back and buy American oil.
But as tariff threats loom, the question remains how much a good rapport between two leaders matters and how far India will go to cut a deal.
▶ Read more about what to expected ahead of Modi and Trump’s meeting at the White House
Musk talks DOGE at the White House
Elon Musk made a rare public appearance at the White House on Tuesday to defend the swift and extensive cuts he’s pushing across the federal government while acknowledging there have been mistakes and will be more.
Musk stood next to the Resolute Desk with his young son as Trump praised Musk’s work with his Department of Government Efficiency, saying they’ve found “shocking” evidence of wasteful spending. The Republican president signed an executive order to expand Musk’s influence and continue downsizing the federal workforce.
Despite concerns that he’s amassing unaccountable power with little transparency, Musk described himself as an open book as he took questions from reporters for the first time since joining the Trump administration as a special government employee. He joked that the scrutiny over his sprawling influence over federal agencies was like a “daily proctology exam.”
He also claimed that DOGE’s work was being shared on its website and on X, the social media platform owned by Musk. However, the DOGE website has no information, and the postings on X often lack many details, including which programs are being cut and where the organization has access.
The White House has also been moving to limit independent oversight. The inspector general for the U.S. Agency for International Development was fired a day after warning that it had become nearly impossible to monitor $8.2 billion in humanitarian funds after DOGE began dismantling the agency.
▶ Read more about Musk’s comments on DOGE
Trump teases matching tariffs on trade partners, possibly setting up a major economic showdown
President Donald Trump is taking additional action to upset the world trade system, with plans to sign an order as soon as Wednesday that would require that U.S. tariffs on imports match the tax rates charged by other countries.
The president had suggested that the order would come on Tuesday or Wednesday. But when Tuesday passed without the tariffs being officially announced, Trump was asked if he would sign the order on Wednesday and Trump answered: “We’ll see what happens.”
A reciprocal tariffs order could amount to a substantial tax hike to be shouldered largely by U.S. consumers and businesses as the Census Bureau reported that the country had total imports of $4.1 trillion last year. The tariffs could set off retaliatory measures by trading partners that could roil growth around the globe and reset where the United States stands with allies and rivals alike.
By signing the order, Trump would fulfill his long-standing pledge to raise taxes on most imported goods, a clear break with his recent White House predecessors who saw tariffs as either targeted tools to use strategically or barriers worth lowering. Trump has broken with that precedent by saying he wants to return the United States to the 1890s when taxes on imports were the government’s dominant source of revenues.
White House fires USAID inspector general whose office warned of $8 billion lacking oversight
The White House fired the inspector general for the USAID on Tuesday, U.S. officials said, a day after his office warned that the Trump administration’s dismantling of the organization had made it all but impossible to monitor $8.2 billion in unspent humanitarian funds.
The White House gave no reason for the firing of Inspector General Paul Martin, one of the officials said. The officials were familiar with the dismissal but were not authorized to comment publicly and spoke on the condition of anonymity.
The dismissal, which was first reported by CNN, is the latest action by the Trump administration affecting the aid agency, including efforts to pull all but a fraction of its staffers worldwide off the job. Trump and ally Elon Musk say its work is out of line with the president’s agenda.
By Ellen Nickmeyer
▶ Read more on the latest regarding USAID
The Associated Press
