What we're covering
• Tariff hikes: President-elect Donald Trump has promised massive hikes in tariffs on goods from Mexico, Canada and China starting on the first day of his administration. The move will be in retaliation for illegal immigration and “crime and drugs” coming across the border, he said. Mexico’s president responded, saying that “neither threats nor tariffs” will solve immigration or drug issues in the US.
• Federal cases dropped: Meanwhile, special counsel Jack Smith is dropping the federal election subversion and the mishandling of classified documents cases against Trump. Here are our takeaways on the president-elect’s legal victories.
• Confirmation hearings: Republicans are now bracing for how they’ll navigate the confirmation process with some of Trump’s most controversial selections. Cabinet picks like Pete Hegseth for defense secretary and Tulsi Gabbard for spy chief are presenting a test for GOP lawmakers in the narrowly controlled Senate.