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Trump plans tariffs on countries buying Venezuelan energy products... President Donald Trump said he would impose a 25% tariff on any country that purchases oil or gas from Venezuela. Trump described the move as a “secondary tariff” on Venezuela over the flow of migrants to the U.S., including members of the Tren de Aragua gang. The Trump administration has said it is deporting alleged members of the gang as part of its deportation efforts. The measure would go into effect on April 2, Trump said, the same day he intends to impose reciprocal tariffs on targeted countries.
“Venezuela has been very hostile to the United States and the Freedoms which we espouse,” Trump wrote in a social media post. “Therefore, any Country that purchases Oil and/or Gas from Venezuela will be forced to pay a Tariff of 25% to the United States on any Trade they do with our Country.”
Countries scramble to avoid U.S. reciprocal tariffs... As an April 2 deadline approaches, countries from Asia to Europe are trying to offer ways to remove policies that the U.S. has argued disadvantages American companies or gives China a leg up in the race for technological supremacy, Bloomberg reported. Countries in the crosshairs of U.S. reciprocal tariffs are rushing to offer concessions and other defensive responses to White House demands in the final full week before President Donald Trump stages trade “Liberation Day.” And Trump indicated he may give “a lot of countries breaks” from the reciprocal tariffs.
European Union trade chief Maros Sefcovic will meet Tuesday with Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer. Brendan Lynch, U.S. assistant trade representative for South and Central Asia, and a team of officials will visit India this week as part of ongoing trade discussions, the U.S. embassy in New Delhi said.
Canadian Prime Minister Mark Carney announced a flurry of measures aimed at blunting the pain of U.S. tariffs as well as “nation-building” reforms to boost trade and investment. One would temporarily allow businesses to defer payments of corporate income tax and consumption tax remittances.
The UK government is weighing plans to reduce or even abolish its digital services tax before April 2.
Malaysia is planning tighter controls over the flow of Nvidia Corp.’s chips after the U.S. demanded it keep a closer eye on advanced semiconductors that could potentially make their way to China, the Financial Times cited the trade minister as saying.
Meanwhile, Greer is expected to hold his first phone call with his Chinese counterpart this week, people familiar with the plans told Bloomberg.
Trump said Monday he would announce tariffs on automobile imports “very shortly” and that new duties on pharmaceuticals would come “at some point in the not too distant” future.
Lutnick told reporters at a Cabinet meeting the administration would also announce next Wednesday plans for its so-called “External Revenue Service” to oversee tariff collection and “to build the power and prestige of America back.”
USDA announces key FPAC appointments to advance ‘America First’ farm agenda... USDA named key presidential appointees to lead the Farm Production and Conservation (FPAC) mission area, reinforcing its commitment to supporting American farmers under President Donald Trump’s “America First” agenda. These leaders will oversee programs vital to disaster relief, risk management, and conservation efforts. USDA Secretary Brooke Rollins emphasized FPAC’s frontline role, stating the new appointees will help deliver swift support to rural communities, cutting bureaucratic delays and boosting efficiency. New FPAC leadership appointments:
- Brooke Appleton – Deputy Under Secretary for FPAC: Former VP of Public Policy at the National Corn Growers Association; USDA veteran with deep Capitol Hill experience.
- Andrew Fisher – Chief of Staff, FPAC: Former legislative aide to Senators McConnell and Blunt, with a background in agriculture economics.
- Aubrey Bettencourt – Chief, NRCS: Expert in water policy and sustainability; past executive at Netafim and the Almond Alliance.
- Bill Beam – Administrator, FSA: Pennsylvania farmer and agribusiness leader with prior FSA leadership under the Trump Administration.
- Pat Swanson – Administrator, RMA: Iowa crop insurance professional and farmer with ASA and Federal Crop Insurance Board experience.
- Colton Buckley – Chief of Staff, NRCS: Rural economic development advocate and former CEO of a national conservation council.
Malanga: Time to prioritize growth... While Chair Jerome Powell signaled an increased openness to rate cuts and announced a slowdown in the Fed’s balance sheet reduction, his comments suggest a balanced focus between inflation control and supporting the broader economy, says Dr. Vince Malanga, president of LaSalle Economics. He believes the Fed should now place greater emphasis on economic growth over inflation. Policy uncertainty is dampening money velocity, which monetary policy should counteract. While inflation remains above target, Malanga notes that price pressures are clearly easing. Energy prices are falling, which will help reduce transportation costs and, over time, feed into broader price moderation. Retail demand is softening, hinting at upcoming price cuts, while airfare and rent pressures appear to be abating as well. A weakening economy would further support disinflation.
While this would ultimately boost real incomes, Malanga says the labor market remains a key concern. Initial jobless claims haven’t shown significant deterioration yet, but the effects of DOGE-led government downsizing could begin to appear in March data. Growth in service employment is slowing, raising questions about whether companies will cut hours further or begin laying off workers — both of which would weigh on income growth. A modest pickup in goods-producing jobs offers only a slight counterbalance, Malanga notes, especially with residential construction and business investment still sluggish.
LaSalle Economics estimates first-quarter GDP growth to come in below 1% annually, with the risk of an even weaker spring if businesses start reducing inventories stockpiled in anticipation of tariffs. Fiscal tightening will continue to weigh on near-term growth, Malanga details, which is why he says private sector demand needs a boost. With government funding now secured through the summer, Malanga hopes the Senate can fast-track a tax package by mid-spring. Lower corporate taxes and full expensing of capital investments could help spur business spending, he observes.
Housing remains a critical issue. Malanga maintains that mortgage rates must fall below 6% and remain there to unlock supply and encourage demand. After four years of housing recession, sustainably lower rates could restore housing as a leading economic driver.
But it’s up to the Fed to make that happen, Malanga says. A benchmark rate cut of 75 to 100 basis points might be needed, potentially alongside a new round of quantitative easing. Ultimately, he concludes, the most urgent issue is timing: fiscal and monetary stimulus must be delivered soon. If not, Malanga worries that economic weakness could overwhelm any fiscal savings produced by DOGE.
Debt ceiling deadline pushed to late summer... The Bipartisan Policy Center has released the first public estimate of the U.S. “X-date” — the point by which the debt ceiling must be raised to avoid default. The window falls between mid-July and early October, offering more time than earlier concerns of a June deadline. The Congressional Budget Office (CBO) is expected to release its own forecast on Wednesday. The exact timing of the X-date is uncertain and depends on factors such as tax receipts, government spending, and the effectiveness of “extraordinary measures” employed by the Treasury Department to manage cash flows. The current national debt exceeds $36 trillion, necessitating congressional action to avoid default. The need for a 60-vote threshold in the Senate to pass debt ceiling legislation complicates the process, requiring bipartisan support.
Of note: House Speaker Mike Johnson (R-La.) wants to include the debt limit increase in a larger reconciliation package. Senate Republicans are skeptical of that approach. President Trump, meanwhile, just wants the borrowing cap lifted quickly and doesn’t care about the method.