Reciprocal Tariffs Will Not Apply to Steel and Automobiles

On April 2nd, President Donald Trump announced a 25% tariff on South Korea and reciprocal tariffs for all countries. However, items that were previously subject to other tariffs, such as steel, aluminium, and automobiles, will not face additional reciprocal tariffs. In addition, Canada and Mexico, which have a trade agreement under the United States-Mexico-Canada Agreement (USMCA), will continue to receive tariff-free status for items covered by the agreement. The White House issued a press release detailing these points.

The White House also identified several items that will not be subject to reciprocal tariffs, in addition to steel and automobiles. These include copper, pharmaceuticals, semiconductors, wood, gold bars, energy, and certain minerals not available in the United States. Pharmaceuticals, semiconductors, and wood are items that President Trump had previously announced tariffs on. The United States has been imposing a 25% tariff on steel and aluminum since March 12th, and a 25% tariff on automobiles is scheduled to take effect starting April 3rd.

Furthermore, the White House clarified that tariffs would remain waived for items covered by the USMCA for both Canada and Mexico. However, a 25% tariff will be applied to items not included in the trade agreement, with energy products facing a 10% tariff. Earlier this year, President Trump declared a state of emergency at the southern and northern borders in response to illegal immigration and fentanyl issues, and he issued an order imposing a 25% tariff on both Mexico and Canada in early February. This order was suspended for a month, and in early March, Trump announced that the 25% tariff would only apply to items not covered by the USMCA.

The White House also stated that if the existing executive order expires, products not covered by the USMCA would face a 12% reciprocal tariff. However, products under the USMCA would continue to enjoy preferential treatment. Regarding the timeline for the reciprocal tariffs, the White House stated that they would remain in place until the trade deficit and the threat of non-reciprocal treatment were resolved or mitigated. In terms of retaliatory actions from other countries, the White House warned that tariffs could be raised if a trading partner retaliates but could also be reduced if a trading partner takes significant steps to address non-reciprocal trade agreements and align with the United States on economic and security issues.

Senate Republicans Push Budget to Raise Debt Limit

On April 2nd, the Republican Party, which holds the majority in the U.S. Congress, released a new budget plan in the Senate. The plan includes large-scale tax cuts, a proposal to raise the U.S. debt ceiling, and efforts to reduce government spending. According to Bloomberg and Reuters, the budget resolution, which was released by the Republican-led Senate Budget Committee on the same day, includes a provision to increase the U.S. debt ceiling by up to $5 trillion (about 7,339 trillion won). This increase is $1 trillion more than the $4 trillion debt ceiling increase passed in the House budget bill. Senate Republicans explained that the higher debt ceiling was set in this manner to avoid the need for another vote before the 2026 midterm elections.

In addition to the debt ceiling increase, the Senate budget bill extends the $4 trillion tax cuts implemented during President Donald Trump’s first term in 2017. It also includes provisions for an additional $1.5 trillion in tax cuts. The total tax cuts previously agreed upon in the House budget resolution amounted to $4.5 trillion over 10 years. The House resolution also called for a $2 trillion reduction in government spending over the same period to fund these tax cuts. However, the Senate budget bill provides more flexibility on this matter, according to Bloomberg.

Furthermore, the Senate budget plan includes a 10-year increase in military spending of up to $150 billion, along with an additional $175 billion allocated for border and immigration enforcement. The Senate is scheduled to vote on this budget resolution later this week. U.S. media reports indicate that in recent years, Congress has bypassed the adoption of such a resolution, instead moving directly to process the appropriations bill after reaching a budget agreement between the ruling and opposition leaders. However, the Republican Party is pushing for the adoption of a budget resolution in both the Senate and the House to utilize the budget reconciliation process, which could expedite the bill. Senate Republican Leader John Thune stated, “It is time for the Senate to move forward with this budget resolution to further advance the shared Republican agenda in Congress.”

Four US soldiers missing during training in Lithuania

The armored vehicle used by four missing U.S. soldiers during training in Lithuania has been found submerged in water at a training area, AFP reported on the 26th (local time).

In a statement released that day, the U.S. Army Europe and Africa Public Affairs Office said, “The M88 Hercules armored vehicle operated by the four missing U.S. soldiers has been found submerged in water at a training area,” and that recovery efforts are underway.

They added, “The search for the soldiers is continuing.”

Earlier, NATO Secretary General Mark Rutte told reporters during a visit to Warsaw, Poland, that four American soldiers had died in a training accident in Lithuania but then reversed himself.

In a post on X (formerly Twitter) that day, a NATO spokesperson said, “The Secretary General intended to mention new news, not to confirm the fate of the missing American soldiers who have not yet been confirmed,” and added, “We regret any confusion caused by the Secretary General’s remarks.”

In a statement that day, the Lithuanian military authorities said that they had received a report the previous afternoon that four soldiers from the 1st Brigade of the 3rd Infantry Division and an armored vehicle had gone missing while conducting tactical training near Babrad, eastern Belarus, and that local military and police were searching.

Lieutenant General Charles Costanza, commander of the U.S. 5th Corps, said, “I would like to express my gratitude to the Lithuanian military and emergency responders who quickly assisted in the search operation.”

More than 1,000 U.S. troops are stationed on rotation in Lithuania, a member of NATO and the European Union (EU).

NSC, Musk Team, etc. Investigating ‘Inviting Journalists

The White House announced on the 26th that President Donald Trump still trusts his national security team despite the controversy over discussions of military operations and inviting journalists to a private messenger group chatroom.

White House Press Secretary Caroline Levitt said in a briefing that day, “The president’s views have not changed yesterday or today,” and “he trusts his national security team.” The Atlantic, a weekly news magazine whose editor-in-chief Jeffrey Goldberg was invited to the chatroom, released a full transcript of Trump’s national security team’s discussions on striking pro-Iranian Houthi rebels, meaning that there has been no change in President Trump’s position until the day before. ”

What I can say for sure is that what I just spoke to the president is that he continues to have confidence in his national security team,” Levitt said, adding that Trump also saw the content released by The Atlantic that day.

He also reiterated the Trump administration’s previous position that “no war plans were discussed, no classified information was transmitted,” even though Defense Secretary Pete Hegseth provided specific information about the time of the operation and the means of attack in the full message released by The Atlantic.

He said, “The thread of this message is what I would call a policy discussion,” and “Sensitive policy discussions are clearly taking place between the Cabinet and senior (White House) officials.” When reporters continued to ask, “Then why is the time of the operation classified?”

Spokesperson Levitt responded, “I would like to mention what Secretary Hegseth said this morning. He listed things that are not classified,” and asked, “Do you trust the Secretary of Defense, who was confirmed by the Senate and served honorably in combat, or do you trust Goldberg, who is a Democrat and writes sensational articles criticizing President Trump?”

Spokesperson Levitt emphasized that the operation against the Houthis was successful despite the controversy, and said, “The attack will continue until the Trump administration feels it is no longer necessary and until the terrorists are eliminated.”

Spokesperson Levitt said that the White House National Security Council (NSC), the Office of Legal Counsel, and Elon Musk’s Office of Government Effectiveness (DOGE) team are investigating how Editor Goldberg was invited to the chatroom.

“Musk offered to bring in his technical expertise to figure out how this (Goldberg’s) number got accidentally added to the chatroom,” he said. Spokesperson Levitt explained about the controversial civilian messenger ‘Signal’, saying, “This app is an encrypted app installed on government phones by the Department of Defense, the Department of State, and the Central Intelligence Agency (CIA),” and “It is the most secure and efficient means of communication.”

In addition, regarding the suspicion that Steve Witkoff, President Trump’s Middle East envoy who was visiting Russia on the 15th when the chatroom conversation took place, he said, “It is completely false information,” and “Special Envoy Witkoff was provided with a confidential protection server by the U.S. government and was very careful about his communications while in Russia.”

Spokesperson Levitt said, “Goldberg is an anti-Trump Democrat. His wife is also a Democrat and worked under Hillary Clinton (former Secretary of State).” He strongly criticized Goldberg for “spreading fake news” while mentioning the controversial article about ‘President Trump’s disparaging remarks about veterans’ reported in 2020. He also claimed that the Democratic Party and some media outlets that are fiercely attacking the Trump administration over this controversy are “conducting an organized campaign to create confusion, and this is an attack on the White House, which has had the most successful two months of any administration in history.”

Mass Deportations to Continue Despite Court Ruling

The White House announced on March 19th that large-scale deportations will continue despite a court’s block on deporting illegal immigrants by air under the Enemy Nationals Act (AEA). White House Press Secretary Caroline Levitt addressed the situation in a briefing, confirming that “there are no specifically planned flights” to destinations like El Salvador while the case remains in court, but also reiterated that deportations would persist.

Earlier, on March 15th, Judge James Vosberg of the U.S. District Court for Washington, D.C. ordered a temporary halt to the Trump administration’s efforts to deport hundreds of Venezuelan nationals to El Salvador by labelling them members of a criminal organization. The ruling also stated that deported individuals must be returned to the U.S., even if their flights had already taken off. Despite the court’s order, the Trump administration proceeded with deportations to El Salvador. On March 18th, President Trump directly criticized Judge Vosberg, calling for his impeachment.

In response, Chief Justice John Roberts issued an unusual statement, dismissing the impeachment suggestion as inappropriate. The conflict between the executive and judicial branches is now intensifying. Meanwhile, the White House has signalled its intent to continue the large-scale deportations, which have been a central focus of President Trump’s campaign. Levitt stated, “The president has made it clear that the judge should be impeached and has expressed great respect for Chief Justice Roberts,” but stressed that the president believes the Supreme Court must address what he described as activist judges.

Levitt also pointed out that Judge Vosberg, who was appointed by former President Barack Obama, was part of a broader pattern in which Democratic-appointed judges have issued injunctions against Trump’s policies. She argued, “60% of the injunctions issued by partisan activists in the judiciary this century were against President Trump, and 92% of them were issued by Democratic judges.” Levitt framed these actions as part of a larger coordinated effort by the left to oppose the president’s policies.

The White House spokesperson further criticized Judge Vosberg, claiming that his ruling represented an abuse of power, especially as Vosberg’s wife had donated more than $10,000 to the Democratic Party. Levitt emphasized that despite complying with the court’s order, the White House would appeal the decision, and that the Justice Department and White House counsel are studying the case with the intention of eventually taking it to the Supreme Court.

LA City’s Financial Crisis Forces City Employees to Lay Off

As the city’s budget crisis worsens, layoffs are inevitable, according to the city’s budget chief. With next year’s budget deficit approaching $1 billion, City Manager Matt Szabo has urged the Los Angeles City Council to focus on cost-cutting measures, including staff reductions, to balance the 2025-26 budget. In a presentation to the council, Szabo attributed the city’s financial woes to skyrocketing spending on civil lawsuit settlements in recent years. Additionally, falling tax revenues are expected to continue declining, further exacerbating the city’s financial situation.

The next budget year, which begins July 1, will also see an additional $250 million allocated for pay raises for city employees. As a result, the city faces a difficult decision, with layoffs looming. The city is considering not just a handful of layoffs, but possibly thousands of positions being cut. Mayor Karen Bass is set to present the 2025-26 budget by July 21 and will need to develop a strategy to eliminate the $1 billion deficit.

Following Szabo’s presentation, city council members held a closed-door meeting to review contracts with various unionized employees, including police officers, firefighters, garbage truck drivers, librarians, and park maintenance workers. Councilwoman Katie Yaroslavsky, who leads the budget committee, suggested that the council consider options such as asking city employee unions to delay scheduled pay raises.

The mayor emphasized that the city’s budget situation requires a fundamental change in operations and that no program or department is safe from potential cuts or restructuring. She pointed to various contributing factors, including large civil lawsuit settlements, the cost of responding to the Palisades wildfires, and broader economic trends like volatile stock markets and national fiscal policies.

Since the coronavirus pandemic, city leaders have persuaded public employee unions to forgo scheduled pay raises, allowing more than 1,000 employees to take early retirement for up to $80,000. In the past two years, Mayor Bass and the Los Angeles City Council have provided raises to police officers, city employees, and firefighters. However, despite these cuts, the proposed pay raises for 2025-26 will still be a major part of the budget. LA City Council President Harris Dawson has urged city officials to find ways to increase revenue, such as raising utility service fees.

Fears Amid Opposition to ‘Republican Temporary Budget’

As the U.S. Congress approaches its budget processing deadline on the 14th, concerns are rising over the potential for a federal government shutdown. The House of Representatives passed a Republican-led interim budget bill, but its future in the Senate remains uncertain. For the bill to pass, it needs the support of some Democratic lawmakers in addition to Republicans, yet the Democratic Party has expressed strong opposition to the bill.

The possibility of a government shutdown looms if the budget fails to pass, but some analysts suggest it would be difficult for Democrats to block the bill at the risk of triggering a shutdown. According to reports from The New York Times (NYT) and The Washington Post (WP), Democratic senators met behind closed doors on the 12th to discuss the situation. Senate Democratic Leader Chuck Schumer stated that Republicans had not secured the necessary votes for the bill’s passage. He also emphasized that the Democratic Party was united in proposing a separate temporary budget bill, which would keep the government operational for 30 days while providing time for negotiations on a longer-term, bipartisan deal.

The Republican-led interim budget, which passed the House the day before, would fund the government through September 30th. However, the bill, which was drafted solely by Republicans, includes a provision to maintain the previous year’s budget levels, increase defence spending by approximately $6 billion, and reduce non-defence spending by around $13 billion. These cuts, particularly to non-defence spending, have drawn criticism from Democrats. They have argued that the bill gives President Donald Trump excessive control over detailed budget adjustments, including the ability to make cuts without sufficient oversight.

In the Senate, where 60 votes are required to pass the bill without a filibuster, the outcome is still in question. With 53 Republicans in the Senate, the bill’s passage depends on securing at least 8 Democratic votes, especially since Senator Rand Paul (Kentucky) has already expressed his opposition. If Democrats continue to block the bill, the government could face a shutdown.

Alternatively, the Senate could amend the temporary budget bill, but this would require the House to approve the changes. Following the House’s passage of the bill, Republican members recessed and left Washington, D.C., which has led some to speculate that Democratic senators now face a difficult decision: either cooperate with a Republican proposal they oppose or risk shutting down the government under the Trump administration.

Senator Angus King of Maine, an independent who often aligns with Democrats, remarked, “This is a matter of choosing between two terrible alternatives.”

Over 30,000 Illegal Immigrants Arrested

Since President Donald Trump took office, authorities have arrested more than 30,000 illegal immigrants. A senior official from Immigration and Customs Enforcement (ICE) revealed in a phone call with reporters that, from January 20th (the date of President Trump’s inauguration) through March 10th, ICE had arrested approximately 32,800 individuals living in the U.S. illegally. This information was reported by Reuters and ABC News on March 12th.

Among the arrested individuals, 14,000 were convicted criminals, while 9,800 had pending criminal charges. Additionally, 1,155 were suspected gang members, and 44 had committed crimes abroad and fled the country. The remaining 8,718, or 27 percent, were categorized as “immigration violators.” These individuals were not originally targeted but were arrested after their illegal status was confirmed during the detention of individuals related to criminal activities.

Todd Lyons, the Acting Director of ICE, emphasized the shift in policy: “We are ending catch-and-release and returning to ICE’s core mission of arresting people who violate our immigration laws.” Lyons added that changes were being made to transform ICE’s culture into one of action and accountability under the leadership of Secretary Christie Nome.

In comparison to the previous administration, which saw 113,400 arrests of illegal immigrants in fiscal year 2024, the Biden administration’s number of arrests and deportations had increased due to a surge in migrants crossing the U.S.-Mexico border. ICE officials also highlighted that the number of arrests has risen significantly, and current detention facilities have reached their capacity of 47,600 detainees. The agency normally receives government funding to detain an average of 41,500 people, but officials are working with lawmakers to secure additional funding. Furthermore, they are collaborating with the Marshals Service and Bureau of Prisons to add more detention facilities.

ICE acknowledged that some individuals had been released due to judicial decisions and humanitarian factors, including medical conditions.

White House Officially Announces One-Month Exemption

The Trump administration officially announced on March 5th that it will grant a one-month exemption on the 25% tariffs imposed on automobiles imported from Mexico and Canada. This decision follows the imposition of the tariffs, which began on March 4th. White House Press Secretary Caroline Levitt shared the announcement during a briefing, stating, “We have talked to the ‘Big 3’ automakers,” and “We will exempt tariffs for one month on automobiles coming in (to the U.S.) through the ‘United States, Mexico, Canada Trade Agreement (USMCA).'” Levitt further explained that the exemption was granted at the request of industries associated with the USMCA, emphasizing the aim to avoid economically disadvantaging these industries during the transition.

It is important to note that the one-month exemption measure was not primarily intended to address U.S. relations with Canada and Mexico but to safeguard domestic industries. On the same day, President Trump held discussions with representatives from the “Big 3” American automakers — General Motors (GM), Ford, and Stellantis. The 25% tariff on automobiles from Canada and Mexico, initially set to take effect on February 4th, had been postponed for a month but was ultimately enforced on March 4th.

However, the decision to implement these tariffs has resulted in some economic challenges. The U.S. economy is experiencing negative impacts, with stock prices of American companies plummeting, especially in industries that rely heavily on the integrated supply chains with Canada and Mexico. The USMCA, a free trade agreement, had previously allowed for tariff-free trade between these countries, and the imposition of tariffs disrupts that system. There are growing concerns that these tariffs could lead to significant increases in automobile consumer prices in the U.S.

The temporary exemption for Canadian and Mexican automobiles will also provide Korean automakers and parts suppliers, who have established operations in Mexico, with time to devise countermeasures in response to the tariffs. Additionally, Spokesperson Levitt reaffirmed during the briefing that the “reciprocal tariff,” which considers each country’s tariff rates and non-tariff barriers, will take effect on April 2nd.

Stop Using U.S. Military Aircraft to Deport Illegal Immigrants

The Wall Street Journal (WSJ) reported on March 5th, citing a U.S. Department of Defence official, that the Donald Trump administration, which has been pursuing a strong illegal immigrant deportation policy since taking office, has ceased using military transport planes for deportations. According to the report, the Department of Defence has not conducted any forced deportations of illegal immigrants using military aircraft since March 1st. Additionally, a flight scheduled for March 6th was also cancelled, as confirmed by a Department of Defence official.

Since President Trump’s inauguration on January 20, he has been implementing a large-scale policy aimed at deporting illegal immigrants. Federal authorities have utilized the Guantanamo Bay naval base detention facility in Cuba as a transit point for deportations. Around 200 Venezuelan immigrants were transferred to Guantanamo Bay and were recently sent back to their home countries. In the past, U.S. authorities have relied on military transport aircraft to deport immigrants either to Guantanamo Bay or directly to their home countries.

WSJ reported that Defence Department officials explained that the Trump administration opted to use military aircraft to reinforce its hard-line stance against illegal immigration. According to the WSJ’s analysis of flight tracking data, U.S. authorities conducted approximately 30 flights using C-17 transport aircraft and about 12 flights using C-130 Hercules transport aircraft. In addition to Guantanamo Bay, other destinations included countries such as India, Guatemala, Ecuador, Peru, Honduras, and Panama.

However, the WSJ pointed out that using military aircraft for deportations is far less efficient and more expensive than utilizing civilian aircraft. For instance, the cost of a forced repatriation flight to India amounted to $3 million per flight, and transporting 12 immigrants to Guantanamo Bay cost at least $20,000 per person. Reuters had previously reported that the operating cost of a C-17 transport aircraft is estimated at $28,500 (around 41.4 million won) per hour, which makes the cost of deporting one immigrant using a military aircraft more expensive than a first-class commercial flight ticket.