Week in Politics Focused on Potential Government Shutdown and Tariffs

It was another tumultuous week in Washington, D.C. as trade tensions escalated and more federal workers were let go from their jobs. Meanwhile, a battle has unfolded on Capitol Hill as a government shutdown looms. Here is the week in review from the nation's capital.

Rough Start to Trading Week After Trump's Comments on the Economy

The U.S. stock markets got off to a rocky start on Monday following comments made by President Donald Trump during a Sunday television interview. During the conversation with Fox News, Trump refused to rule out the chance of a possible recession in the coming months. The comments worried investors who aired their concerns by pulling back on trading on Monday.

All three major indexes finished the day Monday in the red. The Dow ended the day down 890 points for a loss of 2.08%. This was the worst trading day of the year so far for the Dow. The traditional blue chip index had been down by more than 1,000 points during its lowest point of the trading day. The Nasdaq and the S&P 500 also ended the day with major losses as investors grow increasingly skittish about the ongoing trade war.

President Trump went ahead with the planned 25% tariffs on aluminum and steel imports on Wednesday. The Canadian government responded to the implementation by announcing a set of retaliatory tariffs aimed at about $20 billion worth of U.S. imports. The European Union (EU) also said on Wednesday that it will impose its own retaliatory tariffs on the U.S.

JPMorgan Chase said that there is now a 40% chance that the U.S. will experience a recession this year due to what they said were Trump's "extreme" policies. The forecast by JPMorgan Chase is in line with what other economists are saying about the threat of a recession in the coming months. This is happening as new data suggests that food prices are continuing to increase.

Tesla Dealerships Across the U.S. the Target of Vandalization

Protestors are taking their displeasure with the government out on Tesla CEO Elon Musk. Tesla showrooms and charging stations have come under attack by protestors in recent weeks. The bulk of the protests have been peaceful, however, there are increasingly more reports of vandalism as Musk and his decisions as the head of the Department of Government Efficiency (DOGE) grow.

Musk and his DOGE agency have led massive layoffs across nearly every sector of the government since Trump took office on January 20. Tesla is now experiencing declining sales as consumers shy away from electric vehicles. Sales of Teslas are down in the U.S. and across Europe and China.

Mark Carney Elected to Succeed Justin Trudeau

The big political news of the week was not limited to the U.S. Mark Carney was elected to take over the Canadian Liberay Party on Sunday, succeeding outgoing Prime Minister Justin Trudeau as leader of this group. Carney is now charged with leading the Liberal Party into the country's next federal election. The date for this election has not been announced nor has Trudeau confirmed when he will step aside.

The road to the office of prime minister will not be easy for Carney. Canada's Conservative Party is currently leading most polls. Shortly after being tapped to serve as his party's leader, Carney addressed the Liberal Party convention on Sunday, telling Canadians that he will not back down from Trump's tariffs. Carney said that he will press forward with the retaliatory tariffs aimed at the U.S.

Congress Works to Pass Government Funding Bill

There was no shortage of drama on Capitol Hill this week as Congress worked to pass the government funding bill. House Speaker Mike Johnson enjoyed a big win on Monday when the chamber that he leads voted to pass the funding bill by a narrow vote of 217 - 213. Kentucky's Rep. Thomas Massie was the only Republican to vote no on the legislation.

The bill will now head to the Senate for a vote. At least eight Democrats will need to cross party lines in order for the bill to pass through this chamber. The House members convened after their vote, putting the pressure on the Senate to come to a consensus ahead of the midnight Friday deadline. The federal government will shut down at this time if the bill is not passed.

Senate Minority Leader Chuck Schumer was quiet about his intentions earlier in the week before speaking out on Wednesday. In a statement released at this time, Schumer reiterated that the Democrats have the numbers to block the spending bill. Despite the GOP having the slight majority in the Senate, they need 60 votes to pass the bill that is endorsed by President Donald Trump. Later Wednesday, Senate Majority Leader John Thune affirmed the Friday vote by setting up the procedural step to get the ball rolling.

The tensions on Capitol Hill escalated further on Thursday evening when Schumer went on the record and said that he will vote for the stopgap legislation. Schumer said that there was no off-ramp if the bill does not pass through the Senate, detailing that the GOP will be able to drag out the shutdown for months. It is being reported that there is unrest within the Democratic Party as some members are not happy with Schumer's decision to back down.

Education Department Slashes 50% of its Workforce

The U.S. Education Department is slashing its workforce by about half as part of the DOGE efforts to cut the federal budget. The layoffs were announced on Tuesday with many of the impacted workers notified just hours later. Approximately half of the 4,100 employees will be let go in 90 days.

The affected employees were told to report for telework on Wednesday. They will then go on paid administrative leave on March 21, receiving severance pay as well. The move has been hinted at for weeks. The Wall Street Journal reported last week that the Trump White House was working to sign an executive order that would abolish the department entirely.

On Thursday, Johns Hopkins University said that it will need to cut over 2,000 jobs after it lost $800 million in funding due to the reduction of the U.S. Agency for International Development (USAID). Like the layoffs at the Department of Education, the losses at USAID were part of DOGE plan to reduce the size of the federal government. John Hopkins is best known as a premier research university.

Pete Buttigieg Keeps Possibility of Run at Presidency on the Table

Former transportation secretary Pete Buttigieg told a group of Michigan democrats on Thursday that he will not run for the state's governorship or vacant Senate seat. The announcement raises more speculation that he will take another shot at the U.S. presidency in 2028. Top democrats in Michigan had been backing Buttigieg as a frontrunner for the two highest leadership positions in the state.

Michigan Gov. Gretchen Whitmer will not be eligible to run in the next election as the seat is term-limited. It is now being speculated that Whitmer will decide to throw her hat in the ring for the Senate position.