President Donald Trump made good on his threats to impose tariffs on some of the U.S.'s trading partners, announcing Saturday that he will levy 25% tariffs on some goods from Canada and Mexico and 10% on Chinese goods.
Experts have warned that tariffs of this magnitude will likely increase prices paid by U.S. and Trump appeared to acknowledge that “some pain” might be possible in the U.S.
Meanwhile, the Senate Finance Committee announced it will meet Tuesday, when it is expected to vote on the controversial nomination of Robert F. Kennedy Jr. for secretary of Health and Human Services.
President Donald Trump plans to speak with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum on Monday morning, he told to reporters during a stopover at Joint Base Andrews on Sunday evening.
The calls are scheduled two days after he imposed 25% tariffs on both of the United States' neighboring countries.
Sheinbaum is also expected to deliver Mexico’s response to the tariffs in the morning, according to sources familiar with the situation.
-ABC News' Hannah Demissie
Feb 02, 2025, 9:58 PM EST
Elon Musk gains access to Treasury Dept.'s federal payment system: Sources
The Treasury Department has given Elon Musk and representatives of his Department of Government Efficiency (DOGE) team access to the vast federal payment system responsible for handling trillions of dollars in government expenditures, multiple sources familiar with the matter said.
The payment system -- which is essentially a checkbook for the entire federal government -- is a closely held operation run by career officials, with a limited number of people authorized to access the information given it, contains sensitive information about hundreds of millions of Americans.
Tesla, SpaceX and X CEO Elon Musk arrives for the Inauguration of Donald J. Trump in the U.S. Capitol Rotunda, Jan. 20, 2025 in Washington.
Chip Somodevilla/Pool via Reuters
If Musk or his team were to attempt to block these payments, it would likely face legal challenges given the money is approved by Congress.
Sources tell ABC News that if Musk or his representatives were to request that changes be made to the system, such requests would be subject to an internal review process by Treasury Department officials.
Sen. Ron Wyden, the ranking Democrat on the Senate Finance Committee, said in a letter to Treasury Secretary Scott Bessent that any "politically-motivated meddling" in the payment systems "risks severe damage to our country and the economy."
Feb 02, 2025, 9:21 PM EST
Trump says USAID is run by 'radical lunatics' amid agency's uncertainty
President Donald Trump spoke to reporters on Sunday night and, among a roster of topics, mentioned that he believes his head of the new Department of Government Efficiency, Elon Musk, is doing a "good job."
At the same time, he implied that there were some things that he and Musk did not always agree on.
“I do, I think Elon is doing a good job. He's a big cost-cutter. Sometimes we won't agree with it. It will not go where he wants to go, but I think he's doing a great job. He's a smart guy, very smart, and he's very much into cutting our the budget of our federal government,” Trump said in a conversation that took place during a stopover at Joint Base Andrews.
When asked specifically about the ongoing turmoil at the U.S. Agency for International Development, where DOGE officials were reportedly taking offices as existing personnel were placed on leave, Trump said the organization has been run by “radical lunatics,” and they’re getting them out -- and that’s when he’ll make a decision about the organization.
-ABC News' Hannah Demissie
Feb 02, 2025, 9:19 PM EST
Trump says there may be 'a little pain' from tariffs, calls Canada 'abusive'
President Donald Trump told reporters on Sunday that he’s not concerned about the impact tariffs might have, saying the American people will understand.
The president's remarks come after White House officials announced Saturday that Trump has imposed 25% tariffs on Mexico and Canada as well as 10% tariffs on goods from China.
"I'm not concerned. We may have short-term -- a little pain, and people understand that, but long-term, the United States has been ripped off by virtually every country in the world," he claimed, adding, "That's why we owe $36 trillion -- we have deficits with everybody."
President Donald Trump talks to reporters after signing an executive order in the Oval Office, Jan. 31, 2025, in Washington.
Chip Somodevilla/Getty Images
Trump alleged that Canada has been taking advantage of the US, calling the relationship with our northern neighbor a "one-way street."
“Canada has been very abusive of the United States for many years," Trump said, claiming the country has been "tough on oil" and should accept American banks and farm products.
"Essentially, they don't allow a lot of things in, and we allow everything to come in. It's been a one-way street," he said.