☕ The tariffs are here

It’s Tuesday.

The fallout from the Oval Office meeting between President Trump, VP Vance and Ukrainian President Volodymyr Zelenskyy continues, with the delivery of Ukrainian aid halted. Let’s cover the latest, and then dive into the introduction of tariffs which we’ve been chatting through over the past few weeks.

I’ve got 30 seconds

Some headlines from this morning:

President Donald Trump has immediately suspended aid to Ukraine. The move will affect any arms and ammunition currently in transit to the country. It comes days after Ukrainian President Volodymyr Zelenskyy, Trump, and Vice-President JD Vance clashed at a press conference in the Oval Office. According to a number of sources, President Trump has said he is willing to re-start the delivery of aid to Ukraine should a deal be reached, including appropriate concessions by both Ukraine and Russia.

House Speaker Mike Johnson has echoed comments made by other high level republicans on Sunday saying that Ukrainian President Zelenskyy may need to step down following his fiery exchange with President Trump. Mr Johnson, who is third in line to the Presidency after the Vice President, called for Zelenskyy to “come to his senses … or someone else needs to lead the country to do that.” The statement comes as European leaders expressed widespread support for Ukraine, with some nations promising increased presence of soldiers on the ground to defend any Russian advances.

US cyberattack operations against Russia are set to be stopped, after Secretary of Defence Pete Hegeseth ordered a halt to the current projects. The effort is seen as part of an effort to strengthen diplomatic relations with Russia, as the US attempted to negotiate a peace deal to end the Russia/Ukraine war. Although US government authorities are yet to respond to reports, Hegseth is reportedly hoping Russia halt their own efforts to corrupt US cyber systems in response.

First Lady Melania Trump has made a rare appearance on Capitol Hill urging lawmakers to support the Take It Down bill, which would make ‘revenge porn’ illegal in the US. Revenge porn is the non-consensual sharing of intimate images or videos to harm, humiliate, or blackmail. The bill has already been passed by the Senate, it awaits a vote by the House of Representatives to be scheduled in coming weeks. Ms Trump expressed ‘heartbreak’ for “young teens, especially girls, grappling … challenges posed by malicious online content”.

I’ve got 1 minute

In a statement on Monday, Secretary for Health Robert F Kennedy (RFK) expressed concern for the current measles outbreak, “This situation has escalated rapidly … [with] 146 confirmed cases since late January 2025.”

The current outbreak claimed its first casualty last week, killing a school-aged child.

The history of measles

Measles is highly contagious and primarily affects the respiratory system, leading to serious complications, especially in young children.

Measles, a national concern since 1912, did not have a vaccine until 1963. The disease was eradicated in 2000.

The current outbreak

The current outbreak of measles started in a Mennonite (an offshoot sect of catholicism) community in Texas, attributed to growing vaccine skepticism in the US. In the 2023-2024 school year, one in five school aged children in Texas had vaccine exemptions.

RFK, a previous advocate for the anti-vaccine movement, emphasised the following line in his statement today:

“Vaccines … protect individual children from measles .. [and] contribute to community immunity.”

The statement, which speaks of the Health Secretary’s high level of concern with the current outbreak, is a change of tone from his statement earlier this month which was criticised for not taking the outbreak seriously.

What’s the plan?

Measles is notoriously difficult to contain, the CDC first announced an intention to eradicate the disease in 1976 which they did not achieve until 2000.

RFK has said CDC resources will help state authorities contain the outbreak.

I’ve got 2 minutes

On Monday evening, President Trump said there was no room for a deal to be made which prevents 25% tariffs on Canada and Mexico, and a doubling of the previously imposed 10% tariff on China. Key US economy indicators since this announcement have investors worried.

The tariffs started at 12:01am this morning. Here’s what you need to know.

What are the tariffs and why are they being imposed? 

A ‘tariff’ is a tax on imports. It’s applied to foreign-made goods brought into another country, and paid by the importer.

The threatened countries were previously able to delay the 25% tariffs by 30 days by promising that both the countries, which border the US, would take further action against the flow of fentanyl and illegal immigrants.

Despite unprecedented efforts from both Canada and Mexico, including a historic Mexican extradition deal, President Trump today said, "They're going to have to have a tariff. So what they have to do is build … things in the United States, in which case they have no tariffs"

A 10% tariff on all China imports to the US was imposed last month and doubled this morning.

How is the US economy reacting?

Data from the US stock market and companies, originally optimistic about the pro-business Trump administration, is telling a less optimistic narrative.

Stock indexes are used to track the performance of specific markets or sectors. The US stock indexes today went down again after decreases earlier this month, with the major stock index the Dow Jones dropping 1.5% and S&P recording its worst day since December on Monday.

Private company CEOs and spokespeople have also indicated hesitancy around the amount of investment they would be able to expect in their companies after the tariffs are imposed, which will affect $900 billion worth of product coming into the US.

CEO of the company that makes beloved children's toy such as the ‘Care Bear’ who makes 90% of their product in China, said that even if the tariffs forced him to move production into the US prices would triple, “A $10 baby doll will go to $30. Is that what the consumer wants?”

Metrics on US consumer confidence have also been hit by the recent news, falling at a historic mess.

What’s next?

When the tariffs were first announced, Canada said they would immediately impose reciprocal tariffs on $30 billion worth of US imports, with further increases to come unless the US acquiesces. China has also said they are preparing a series of hit-back tariffs. Mexico’s reaction is unknown as of yet.