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Morning Report — Carney’s art of the Oval Office deal

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    In today’s issue:  

    Trump, Carney talk trade and sovereignty  Economy, tariff talks back in headlines Georgia GOP lawmakers eye Senate race  Cardinals are choosing next pope

    Canadian Prime Minister Mark Carney came to Washington on Tuesday with two goals: talk trade and tariffs and remind President Trump that the sovereignty of his country was not up for debate.

    The Oval Office meeting, Carney’s first since being elected to a full term in April, remained civil, and both sides called the talks constructive. Trump said the meeting was a “step up,” signaling both sides are happy with the progress made and will keep talking.

    Still, Tuesday’s talks were shadowed by Trump’s tariffs against Canada and his repeated musings about making the United States’s neighbor to the north the 51st state, something Carney and other Canadian officials have consistently rejected. The annexation rhetoric and tariffs have sparked a wave of anti-American government sentiment that contributed to Carney’s electoral victory last month.

    “As you know from real estate, there are some places that are not for sale,” Carney said. “The opportunity is in the partnership.”

    “Never say never,” Trump replied. “I’ve had many, many things that were not doable, and they ended up being doable.”

    ▪ The Hill: Carney said he asked Trump in White House meeting to stop calling Canada the 51st state.

    ▪ The Hill: Alberta Premier Danielle Smith said Monday she would hold a referendum for the province’s departure from Canada in 2026 if a citizen's petition obtains the necessary signatures for a vote.

    As the global economy reels from Trump’s tariffs, many countries — including Canada — are itching to strike deals with the U.S. to lower levies. Within days of the April 2 announcement of the widespread levies, White House officials said around 70 countries were already calling to strike deals. 

    No concrete plans have materialized, and on Tuesday, Trump expressed exasperation over questions about when any agreements would be decided. 

    “Everyone says, ‘When, when, when are you going to sign deals?’” Trump said, at one point gesturing at Commerce Secretary Howard Lutnick. “We don’t have to sign deals. We could sign 25 deals right now, Howard, if we wanted to. We don’t have to sign deals. They have to sign deals with us. They want our market. We don’t want a piece of their market. We don’t care about their market.”

    ▪ The Hill: Lutnick said Monday that he is skeptical of cutting a trade deal with the Canadian government, calling it a “socialist regime.”

    ▪ Reuters: The U.S. and China will hold icebreaker trade talks in Geneva this weekend.

    Carney on Tuesday steered clear of criticizing Trump personally, acutely aware that the two countries share a tightly integrated economy, with more than $725 billion in trade between them.

    But as the standoff drags on, trade is shifting away from the U.S. The Trump administration’s tariffs on Canadian steel, aluminum, cars and other products — as well as Canada’s retaliatory levies — led to a decrease in U.S.-Canada trade in March. Canadian exports to the U.S. dipped 6.6 percent, while imports fell 2.9 percent. Meanwhile, its exports to other countries surged 24.8 percent, canceling out the deficit with the U.S.

    Trump on Tuesday said the U.S. and Canada would have talks coming up over the next year to renegotiate or terminate the U.S.-Mexico-Canada-Agreement. Carney chimed in to say there were parts of the deal that would “have to change.”

    The Hill’s Alex Gangitano and Brett Samuels break down five key moments from the Oval Office meeting.

    Trump also used the meeting to announce the U.S. will stop strikes against Yemen’s Houthis, ending a nearly two-month bombing campaign. Trump framed the move as a handshake agreement in exchange for no longer attacking American ships. 

    “It’s not a deal,” he said. “They said, ‘Please don’t bomb us anymore and we’re not going to attack your ships.’”

    Axios reports the truce with the Houthis was negotiated in recent days by White House envoy Steve Witkoff through Omani mediators.

    ▪ CNN: Israel struck targets in Yemen on Monday. The strikes came a day after the Iran-backed Houthis fired a ballistic missile that hit Israel’s main airport.

    ▪ Axios: Israeli Ambassador to Washington Yechiel Leiter proposed that Trump add a stop in Israel during his trip to the Middle East.

    SMART TAKE with NewsNation’s BLAKE BURMAN:  

    We’re starting to see the challenges Republicans face in trying to turn President Trump’s campaign promises on taxes into “one big, beautiful bill.” 

    For example, I spoke with Rep. Greg Murphy (R-N.C.), who is a member of the House Ways and Means Committee, where tax legislation begins. 

    “We have to be able to afford everything. I think we've made a lot of good progress in so many initiatives that the president does want,” Murphy told me. “At the end of the day, we have to be able to afford this. And plus, we also have to be able to make sure that it is not adding to our debt.” 

    Murphy said he believes the legislation will ultimately pass. But here’s one thing I’ve noticed: The more I interview Republicans on this issue, the more I hear different answers about what matters most to them. 

    Burman hosts “The Hill” weeknights, 6p/5c on NewsNation.

    3 THINGS TO KNOW TODAY:

    ▪ The Food and Drug Administration’s vaccine division will be led by Vinay Prasad, a prominent critic of federal COVID-19 policies. Meanwhile, the administration jettisoned a Centers for Disease Control and Prevention expert panel focused on infection control in hospitals. ​​ 

    ▪ The administration is cutting the Energy Star program, which for three decades has been a voluntary way for manufacturers to promote energy-efficient appliances to cost-conscious consumers. 

    ▪ Pondering a body of water off the coast of Iran, Trump plans to rename the Persian Gulf the Arabian Gulf. The moniker has already been used for years by the U.S. military to identify the gulf.

    LEADING THE DAY 

    © Associated Press | Mariam Zuhaib

    UNCERTAINTY: The spotlight today is on the economy as Federal Reserve Chair Jerome Powell reports on inflation, the labor market and interest rates and Treasury Secretary Scott Bessent testifies on Capitol Hill before heading to Switzerland, where he’ll meet with a high-level Chinese delegation to talk about trade and other challenges this weekend. It will be the first such talks since Trump launched his economic war against Beijing.

    House and Senate Republicans, including those who support Trump’s tariff policies, are nervously listening to the president’s public assurances of an economic rainbow at the end of today’s consumer and investor doubts.

    Senate Republicans say they want Trump to stop talking about scarcity, sacrifice and painful economic transitions while boasting about a U.S. manufacturing boom and future “reciprocal” trade deals. They really, really want Trump to stop talking about doll shortages ahead of Christmas while in a standoff with China. Forecasts of empty shelves and higher toy prices send shivers through the Republican Party. 

    House GOP members, who are split over many key budget decisions, are nonetheless cheerleading for unity and quick legislation.

    “We need to do it because the economy right now is a bit stalled because we are not offering certainty and stability,” Rep. Mike Haridopolos (R-Fla.) told “Fox & Friends First” last week.

    Politico: GOP moderates warm up to Speaker Mike Johnson’s latest Medicaid plan.

    Some House Republicans who represent districts in blue states suggest they would be willing to sink Trump’s tax bill this year if they cannot make the state and local tax, or SALT deduction more generous for their constituents in high-tax states.

    ▪ The Hill: The GOP is divided over Trump’s budget treatment of the Pentagon. 

    ▪ The New York Times: GOP takes aim at a Medicaid funding loophole that has been used by most states to gain federal dollars.

    ▪ The New York Times: Here’s why 35 House Democrats joined Republicans last week to kill one of the most ambitious climate policies in the country. 

    COURTS: The Supreme Court on Tuesday ruled the administration may start enforcing a ban on transgender troops serving in the military, ordered by Trump on Jan. 20 while revoking former President Biden’s order allowing transgender service members to serve openly. Trump’s executive order was blocked by lower courts. The unsigned high court decision will remain in place while challenges to the ban move forward. Justices Sonia Sotomayor, Elena Kagan and Ketanji Brown Jackson, the court’s three liberal members, noted dissents but provided no reasoning. 

    Trump’s controversial nominee to be the Justice Department’s top prosecutor in Washington, D.C., Ed Martin, is encountering pushback among Senate Republicans needed for confirmation, The Hill reports. Sen. Thom Tillis (R-N.C.), a swing vote on the Senate Judiciary Committee, informed the White House on Monday after meeting with Martin that he would not support the president’s nominee for the job. Tillis has said he objected to Martin’s comments denigrating police officers who defended the Capitol during the Jan. 6, 2021, attack. Martin’s interim position expires May 20. 

    The Hill: A second federal judge on Tuesday determined Trump exceeded his authority by relying on the Alien Enemies Act to deport Venezuelans alleged to be gang members, blocking the administration from using it in the Southern District of New York. U.S. District Judge Alvin Hellerstein said the law is limited to a declared war or if the U.S. experiences an incursion on its territory. Trump’s team was failing to meet the due process protections of the wartime law, the judge ruled. 

    The Hill: An appeals court grapples with efforts to deport international students Rumeysa Ozturk and Mohsen Mahdawi. 

    WHERE AND WHEN

    The House will meet at 10 a.m. The Senate will convene at 10 a.m. The president at 11 a.m. will receive his intelligence briefing. Trump will participate at noon in a swearing-in ceremony for U.S. Ambassador to China David Perdue. He will have lunch with Vice President Vance. The Federal Reserve concludes a two-day meeting with a statement at 2 p.m. and a press conference at 2:30 p.m. Vance will attend the Munich Leaders Meeting in Washington and join a discussion at 9:30 a.m. with former Ambassador Wolfgang Ischinger, president of the Foundation Council of the Munich Security Conference.  Secretary of State Marco Rubio will meet this morning with Kenyan Cabinet Secretary Musalia Mudavadi. The secretary at 7 p.m. will deliver remarks during a gala event in Washington hosted by the Congressional Hispanic Leadership Institute. The White House daily press briefing is scheduled at 1 p.m.

    ZOOM IN

    © Associated Press | Brynn Anderson

    The political stakes in Georgia are enormous as Republicans work to enlarge their Senate majority next year, in part by challenging Sen. Jon Ossoff (D), who is campaigning for reelection. Senate Majority Leader John Thune (R-S.D.), juggling a narrow 53-47 majority, was among those who tried but failed to persuade the term-limited Gov. Brian Kemp (R) to challenge the incumbent. The governor took a pass, but firebrand Rep. Marjorie Taylor Greene (R-Ga.) is interested. And therein lies a problem, according to some Senate Republicans, who believe winning in the Peach State demands crossover appeal, not just brash MAGA fortitude practiced in one of the nation’s most conservative districts. On the other hand, Greene could pick up Trump’s endorsement in a state he won last year.   

    Sen. John Cornyn (R-Texas), a former National Republican Senatorial Committee chair, says his party needs a candidate who would be competitive in the general election, reports The Hill’s Alexander Bolton. Without a marquee GOP nominee in the wings, it could be harder for Republicans to oust Ossoff. Other GOP names mentioned: Georgia Reps. Buddy Carter, Mike Collins and Rich McCormick, Insurance Commissioner John King and Secretary of State Brad Raffensperger.

    The medium is the message: The White House communications team knows how to turn official and unofficial social media accounts into viral message-delivery devices to benefit the president and his agenda. How? There’s both rhyme and reason, The Hill’s Brett Samuels explains. 

    Campuses and classrooms: The administration told the University of Washington in Seattle on Tuesday it’s now under federal review in response to a pro-Palestinian demonstration and occupation of a building on Monday that resulted in 31 arrests. … Meanwhile, the school choice movement shifts to a federal strategy after achieving a long-sought bill-signing victory in Texas. Next target for political impact: Congress.  

    ELSEWHERE

    © Associated Press | Vatican Media via AP

    CONCLAVE: All eyes are on the Vatican today as the papal conclave commences to elect the 267th pope and successor to the late Pope Francis. Cardinal Jean-Paul Vesco, archbishop of Algiers, told ABC News it would be "unexpected" if the conclave goes past Friday.

    “If on Friday night, the pope is not elected, it will be that something unexpected has happened,” Vesco said.

    Among the issues that differentiate the presumed frontrunners for the job are extremely controversial topics for Catholics, including the church’s stance on LGBTQ members and women’s roles in the church. Francis’s papacy was defined by progressivism and outreach to marginalized communities, and the conclave’s pick for the next pontiff will stand as a direct response to his legacy.

    ▪ CNN: Cardinals choosing the next pope have been offered a dossier on candidates — with a subtext.

    ▪ The Economist: Intrigue and attacks as the papal conclave begins.

    INDIA: On Wednesday, the government said it launched missiles into Pakistan-controlled territory, aggravating tensions between the nuclear-armed neighbors over last month’s militant attack on tourists in the Indian-controlled portion of Kashmir that killed 26 people. Pakistan said the strikes killed 26 people and injured 46 others.

    The escalation puts India and Pakistan, two neighbors with a long history of conflict, in dangerous territory, with Pakistan vowing to retaliate against India’s strikes and the international community calling for restraint.

    LIBYA: In a controversial immigration move, the U.S. plans to deport migrants to Libya on a military plane as soon as today. The nationalities of those being deported were not immediately known. 

    UKRAINE: Despite back-to-back drone attacks on Moscow, Ukrainian officials have dismissed the possibility of any attacks on Russia’s Victory Day celebrations this week. Victory Day is the most significant day for Russian President Vladimir Putin, as he has long used it to rally public support and demonstrate the country’s military prowess.

    ▪ BBC: Former President Biden told the BBC that pressure from the Trump administration on Ukraine to give up territory to Russia is "modern-day appeasement.”

    ▪ The Washington Post: In a late January memo, Trump’s team urged Ukraine to take in U.S. deportees amid the war.

    ▪ Reuters: A January order by Defense Secretary Pete Hegseth to cancel Ukraine weapons caught White House off guard.

    GERMANY: Germany’s Parliament elected Friedrich Merz as the chancellor Tuesday in a second round of voting, after the leader of the center-right Christian Democrats failed to secure an absolute majority in the first ballot. His appointment ends six months of political deadlock in the country, but the stumbling block casts doubt on the stability of his governing coalition.

    ▪ The Hill: What to know about the roller-coaster day in German politics.

    ▪ The New York Times: What to know about Merz’s new government.

    OPINION

    ■ Could incompetence save the Republic? by Dana Milbank, columnist, The Washington Post.

    ■ Xi can’t trust his own military, by Phillip C. Saunders and Joel Wuthnow, guest essayists, The New York Times.

    THE CLOSER

    © Associated Press | Centivax via AP 

    And finally … ? “I wanted to push the limits as close to death as possible to where I’m just basically teetering right there and then back off of it,” said snake admirer Tim Friede of Wisconsin, who has been bitten by venomous snakes hundreds of times, often on purpose. 

    Friede wanted to help science through his experiences — and his blood. He emailed every scientist he could find, asking them to study the tolerance he’d built up.

    When Columbia University’s Peter Kwong heard of Friede, he said, “Oh, wow, this is very unusual. We had a very special individual with amazing antibodies that he created over 18 years.”

    In a study published Friday in the journal Cell, Kwong and collaborators shared what they were able to do with Friede’s unique tolerance: They identified two antibodies that neutralize venom from many different snake species. Their aim? Potentially find a snake bite treatment that could offer broad protection for the approximately 110,000 people who die from such bites every year, according to the World Health Organization.

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