The crypto world's most promising application is bursting into the financial mainstream — powered not by hype, but by regulation, political backing, and trillions in real-world transactions.

Why it matters: Memecoins, fraudsters and crypto volatility have overshadowed the quiet success of stablecoins — digital tokens designed to hold a steady value, typically pegged to the U.S. dollar.

• Stablecoins remain in a legal gray area in the U.S., but both chambers of Congress are racing to draft rules for what's become the most functional use case for blockchain technology worldwide.
• "We are going to keep the U.S. the dominant reserve currency in the world, and we will use stablecoins to do that," Treasury Secretary Scott Bessent vowed at a White House summit last month.

The intrigue: The digital currency has support not just from the Trump administration, but from the Trump family itself.

• Their crypto venture World Liberty Financial has announced its own plans to sell a stablecoin — drawing massive backlash from Democrats, who accuse the president of profiting from his office.
• Democrats who support passing stablecoin legislation fear the Trump family's conflicts could derail the bipartisan efforts to regulate and legitimize the fast-growing industry.

By the numbers: Global asset manager Ark Invest estimates that annual stabelcoin transaction volume hit $15.6 trillion in 2024 — basically on par with what the Visa Network reported for its fiscal 2024.

• More than $230 billion in assets have been dedicated to backing this class of tokens, up more than $100 billion since Trump won the 2024 election.

How it works: The most popular stablecoins are backed by dollar deposits and other highly liquid assets, ensuring that each token can be reliably redeemed for actual U.S. dollars — even during a bank run.

• Stablecoins started as liquidity for crypto traders, but they've caught on as a way for companies to manage global treasuries, pay workers around the world and conduct peer-to-peer transactions.
• There's been questions about the soundness of stablecoin reserves in the past, but it's become normal to release regular statements from accountants verifying their adequacy.
• Circle's stablecoin — the largest based in the U.S. — holds its reserves almost entirely at BlackRock, which pays it interest.

Between the lines: Stablecoins are highly profitable. Issuers pocket the interest on the assets backing the tokens — a lucrative spread in a high-rate environment.

• One major issuer reported $13 billion in profits for 2024.

State of play: After Paypal became the first big brand to release a stablecoin, a wave of new issuers are following suit.

• A U.S. law will likely permit big banks to issue their own — alongside credit unions, financial firms and others.

What we're watching: The Senate Banking Floor has sent its stablecoin bill, GENIUS, to the floor.

• The House Financial Services Committee did the same with its own bill, the STABLE Act, on Wednesday — setting the stage for crucial votes in both chambers of Congress.

White House deputy chief of staff Stephen Miller brought a one-two combo to his old Senate stomping grounds on Thursday, according to Senate aides.

Why it matters: With the market melting down, the White House wants to stay on offense on judges and ensure the GOP presents a united front on tariffs.

• Miller is essentially calling for more cavalry for President Trump's attacks on the judiciary, which has blocked some of the president's boldest, and most controversial, moves.
• At the same time, he wants the Senate to extend Trump's 2017 tax cuts while also defending Trump's tariff-happy finger.

Between the lines: Expect an additional $6 trillion in tariff revenue over the next decade, Miller told GOP chiefs of staff on Thursday.

• That number was also offered by White House trade adviser Peter Navarro on "Fox News Sunday," and assumes the tariffs will be permanent.

Miller is enormously influential in the West Wing, but the former Senate staffer also has a feel for how to light (and put out) fires on Capitol Hill.

• He acknowledged to the group the legislative process can get bumpy and he understood their bosses were taking some heat on tariffs.
• Stocks were cratering while Miller spoke, on their way to their biggest one-day decline since March of 2020.
• But Miller told them to hold the line and trust the president.

Zoom in: He argued Trump's plan to lift burdensome regulations, plus extend the Tax Cuts and Jobs Act — along with another $6 trillion in new revenue from tariffs —would lead to an enduring manufacturing boom.

• Top White House officials promised senators on Monday they would show their math on how the president's agenda would lead to 3% growth and lower deficits, we scooped.
• Today, the White House provided their official analysis, which included estimates of an additional $4.1 trillion in revenue, relative to CBO's projection if the tax cuts expire.
• They didn't include the potential economic impact of Trump's aggressive tariffs.

The bottom line: Some Senate Republicans remain hopeful the tariffs will be temporary or are just a negotiating tool.

• The $6 trillion estimate, over 10 years, should destroy that optimism.

Editor's note: This story has been corrected to note that Miller said $6 trillion over ten years (not $600 billion.)

Commerce Secretary Howard Lutnick on Thursday touted the use of robotics in his pitch for an American "manufacturing renaissance."

The big picture: While President Trump's tariffs are meant to boost American manufacturing and jobs, U.S. manufacturers will likely hurt from these tariffs, at least in the short run. Whether they lead to more jobs in the long term remains an open question.

What he's saying: Lutnick made the case in several TV interviews this week that tariffs will bring jobs and factories back to the U.S., saying they'll utilize robotics to make American workers "more efficient."

• Speaking on CNBC, he said that with the use of robotics, factories are "going to see the greatest surge in training for what we call trade craft — teaching people how to be robotics, mechanics, engineers and electricians for high tech factories."
• On CNN, Lutnick said, "We use robotics here. It's cheaper than cheap labor overseas." He added, "The renaissance will be the greatest factories in the world, high-tech people. What are the jobs Americans are going to have? We are going to have mechanics who fix robotics."
• On Fox News' Hannity on Wednesday, Lutnick touted that "a high school-educated workforce is going to get trained to do robot mechanic," adding that it'll bring the "coolest" and "highest-paying jobs" to the U.S.

Between the lines: If the jobs are for repairing and maintaining robots to do the factory work, blue collar jobs likely won't be as plentiful.

Flashback: Former President Biden had also floated the use of robotics in his clean energy push, including for solar panel installation and wind turbines.

• But the interest in automation paired with a vow to create millions of jobs as part of the clean energy boom proved to be a difficult undertaking — and one that could take years to come to fruition.

Our thought bubble, via Axios' Emily Peck: American manufacturing is already quite advanced and has increased in productivity overall.

• That means fewer workers are needed. So while the industry has grown over the past decade, there hasn't been a proportionate increase in jobs.

Go deeper: Tariffs will squeeze manufacturers and jobs may not follow

President Trump threw his weight behind Rep. Anna Paulina Luna (R-Fla.) in her fight with House Speaker Mike Johnson (R-La.) over proxy voting that has paralyzed the House floor.

Why it matters: His comments will likely further embolden Luna and make it even more difficult for Johnson to defang her efforts to force a vote on the issue.

What he's saying: "I don't know why it's controversial," Trump said Thursday of Luna's proposal to let House members vote by proxy for three months after the birth of their child.

• Trump told reporters on Air Force One that he will "let the speaker make the decision," but added, "I like the idea. … I'm in favor of that."
• "You're having a baby, you should be able to call in and vote," he said, according to the Associated Press.
• Johnson and Trump spoke by phone after the president made his comments on Air Force One, Punchbowl News reported.

What happened: Luna succeeded last month in obtaining the 218 discharge petition signatures necessary to bypass Johnson and force a vote.

• But Johnson, a bitter foe of proxy voting in all forms, attached a motion killing the vote to unrelated GOP legislation on non-citizen voting in an attempt to pressure all Republicans into siding with him.
• After his maneuver fell short Tuesday, Johnson scrapped House votes for the rest of the week and sent lawmakers home.

What we're hearing: Trump and Luna have spoken by phone about her discharge petition, according to a lawmaker familiar with the discussion.

• Luna said last week she didn't want to burden Trump with the issue while he was handling sensitive foreign policy matters, adding that "these should be internal discussions."
• But she also noted that Trump's daughter Ivanka has championed maternity leave for federal workers, arguing her proposal is "well in line with the administration."

The other side: Johnson said Wednesday in a post on X that he "simply cannot support the change" Luna is proposing, which he believes violates the Constitution.

• Johnson signaled he would continue to try to kill Luna's discharge petition rather than give it an up-or-down vote on the floor — in which it would likely succeed.
• He said he is "actively working on every possible accommodation to make Congressional service simpler for young mothers."

Between the lines: Trump's support for the substance of Luna's proposal could grow the anti-Johnson coalition, further complicating the speaker's efforts to regain control of the House floor.

• Johnson's effort to block Luna from bringing her bill to the floor failed after eight Republicans broke with the party and sided with her.
• Several Republicans expressed discontent with Johnson's attempts to effectively kill rank-and-file members' one tool for bypassing leadership on legislation that a majority of the House supports.

Fifteen Senate Democrats backed a pair of resolutions from Sen. Bernie Sanders (I-Vt.) to withhold billions of dollars in offensive weapons sales and other military aid to Israel.

Why it matters: The votes split the party, revealing continued internal divisions over Democrats' views on the war in Gaza and support for the Israeli government. The measures failed 15-82 and 15-83.

• Sanders wants to cancel the Trump administration's proposed sales of $8.8 billion in bombs and other munitions to Israel.
• In addition to Sanders, Democratic Sens. Richard Durbin (Ill.), Martin Heinrich (N.M.), Mazie Hirono (Hawaii), Ben Ray Luján (N.M.), Tim Kaine (Va.), and Andy Kim (N.J.) voted in favor.
• So did Ed Markey (Mass.), Jeff Merkley (Ore.), Chris Murphy (Conn.), Brian Schatz (Hawaii), Tina Smith (Minn.), Chris Van Hollen (Md.), Elizabeth Warren (Mass.) and Peter Welch (Vt.).
• No Republicans supported the measures.

The big picture: Sanders forced similar votes under the Biden administration to call out U.S. support for Israel's war efforts in Gaza.

• "The United States must end our complicity in these atrocities, we cannot be part of this any longer," Sanders said in a video he released on Wednesday.
• The vote comes as Israel resumed its war in Gaza last month, despite a ceasefire deal between the two sides that was signed earlier this year.

Between the lines: Senate Democrats facing reelection next year were split on the resolution. "No" votes could open up incumbents to attacks from their left.

• Sens. John Hickenlooper (D-Col.), Mark Warner (D-Va.), Cory Booker (D-N.J.), Jon Ossoff (D-Ga.) and Jack Reed (D-R.I) — all up for reelection next year — voted "no."

Go deeper: Israel resumes war in Gaza with a series of massive airstrikes against Hamas

Editor's note; This story has been updated with additional reporting.

The Heritage Foundation is going to acquire the Abraham Accords Peace Institute (AAPI), which was established by President Trump's son-in-law and former senior adviser Jared Kushner, according to a statement shared with Axios.

Why it matters: The move by the conservative think-tank which is considered highly influential on Trump administration policies could reenergize the efforts to push for new normalization agreements between Israel and the Arab world — something the president has said he wants to do.

Flashback: The Abraham Accords, signed in September 2020, were arguably Trump's biggest foreign policy achievement and the biggest breakthrough for relations between Israel and the Arab world for 25 years.

• Kushner, who negotiated the Abraham Accords, founded the non-profit in May 2021 after he left government. The goal was to develop programs that will help in strengthening the normalization between Israel, the UAE, Bahrain and Morocco.

Driving the news: Robert Greenway who worked at the national security council when the Abraham Accords were signed was the first CEO of Kushner's institute.

• Now as the director of the Allison Center for National Security at The Heritage Foundation, he will chair the merger initiative.
• Kushner said the Abraham Accords Peace Institute's outgoing CEO Aryeh Lightstone joined the Trump administration and will work on White House Middle East envoy Steve Witkoff's team.

What they're saying: Lightstone said that with the Trump administration's focus on expanding the Abraham Accords, the mission of the institute "will move to its proper home — the administration."

• He added: "Several of its data collection functions, as well as the efforts to coordinate the many complementary and supporting efforts to the current administration, will continue under the leadership of Robert Greenway."
• Dr. Victoria Coates, vice president of the Kathryn and Shelby Cullom Davis Institute for National Security and Foreign Policy at The Heritage Foundation, said she is looking forward to continued close collaboration with Kushner and his team on new opportunities to support peace initiatives in the Middle East.

South Korea's impeached President Yoon Suk Yeol has been removed from office over his brief martial law declaration last December that saw troops deployed to the National Assembly.

Why it matters: The South Korean constitutional court's unanimous ruling on Friday morning local time upholding Parliament's impeachment vote means the country must hold a snap election to replace Yoon within 60 days, per Yonyap news agency.

The big picture: Yoon is due to stand trial on insurrection charges in relation to the emergency declaration sparked massive protests and threw the U.S. ally into political turmoil before he rescinded it.

• He denies any wrongdoing and claimed the declaration was necessary to defend Seoul from "pro-North Korean" elements.
• Yoon is the first sitting president in South Korea to both be arrested and indicted on criminal charges.

State of play: His supporters swarmed the streets of the South Korean capital Seoul and video from the scene showed a heavy police presence as the court's verdict was being delivered.

In photos: Yoon impeachment ruling sparks rallies

Go deeper: Yoon becomes South Korea's 1st sitting president to be indicted

Editor's note: This article has been updated with new details throughout.

A powerful multi-day storm system that's lashing the U.S. South and Midwest has killed at least seven people as it unleashes tornadoes and flooding flooding rains.

The big picture: The storm that ramped up Wednesday has brought a "life-threatening, catastrophic," flash flood event to the Lower Ohio Valley and Mid-South. The National Weather Service said more "significant severe weather" was "expected from the Mid-South through the Ozarks and ArkLaTex," with "very large hail and strong tornadoes possible."

Go deeper: Rainstorms are getting more intense amid climate change

Editor's note: This a breaking news story. Please check back for updates.

The Trump administration intends to pull some $510 million in federal funding from Brown University, a White House official confirmed to Axios on Thursday.

The big picture: The Providence, Rhode Island, school is among five Ivy League universities to have its federal funding reviewed or revoked in recent weeks — alongside Princeton, Columbia, Harvard and the University of Pennsylvania.

• Brown is one of 60 colleges and universities under investigation for allegations of antisemitic harassment and discrimination.

Driving the news: Brown's provost, Frank Doyle, sent campus academic leaders an email Thursday afternoon saying the university is "aware there are troubling rumors emerging about federal action on Brown research grants" but that "at this moment, we have no information to substantiate any of these rumors."

• A Brown spokesperson told Axios Thursday evening that the university still has "no information to substantiate what's being reported."
• The Daily Caller first reported on the news.

Go deeper: Columbia caves to Trump demands to regain $400 million in funding

Editor's note: This is a breaking news story. Please check back for updates.

Economics 101 dictates that higher tariffs strengthen the value of a country's currency, but Trump's tariff announcement sent the value of the U.S. dollar plunging.

Why it matters: It's a sign that investors are worried about a recession, particularly in the U.S. — on top of concern that U.S. policies are making America a longer-term risky bet.

By the numbers: An index that tracks the value of the dollar against six major currencies was at 102.1 on Thursday, from around 104 before reciprocal tariffs were unveiled. (A lower number means a weaker dollar).

Catch up quick: The dollar strengthened after the election. Investors were optimistic about deregulation and tax cuts and anticipated economic growth. Since inauguration day it's fallen back.

The intrigue: Up until right before Trump's announcement, investors had expected the dollar to rise on tariff news, WSJ points out.

• They had reason. The idea that tariffs make the dollar more valuable "has been part of economic theory for 100 years," Joseph Gagnon, a senior fellow who specializes in exchange rates and monetary policy at the Peterson Institute, tells Axios.
• A 2019 study of 151 countries from the International Monetary Fund found this was still the case — at least in the short term.

How it works: The rules of supply and demand apply to currency, too, as Nobel-prize winning economist Paul Krugman explained to Axios reporters on a recent episode of Slate Money.

• Tariffs are supposed to reduce demand for imports. In the U.S. that would mean there's less need for businesses to exchange dollars for other currencies to buy foreign goods.
• That would translate into fewer dollars to trade on the currency market. Less supply means higher prices, but only if demand stays relatively constant.

The big picture: The magnitude of these tariffs is changing the equation. They've spooked markets about recession risk to such an extent that for now, pessimism is causing the dollar to weaken.

• When the economy softens, so can the value of the dollar, because demand for money overall falls.
• The dollar has weakened more than other currencies, as the index shows, because investors believe the U.S. economy is more at risk from the tariffs than other major countries.
• "When US growth is negative and rest of world growth is positive, the Dollar weakens on average," per a 2024 note from Goldman Sachs.

What they're saying: "The blowback of US tariffs onto the US domestic economy leaves the dollar naked," writes ING's chief international economist James Knightley in a note.

There is concern that this drop is bigger than recession fears.

• "One way of interpreting this is investors are suddenly becoming afraid of the policies that are being promoted in the U.S., and therefore they don't want their money here," say Gagnon of the Peterson Institute.
• Alan Cole, a senior economist with the Tax Foundation's Center for Federal Tax Policy, tells Axios "If people think the U.S. isn't a good place to invest in, they might say, 'I don't trust this whole tariff regime,' or 'I don't trust the U.S. economy,'"

The other side: Markets go up and down, of course. Ultimately, it's possible tariffs could strengthen the dollar, says Gagnon.

• On Thursday, as stocks were plummeting, Trump was optimistic.
• "The markets are going to boom, the stock is going to boom, the country is going to boom."

-Jason Lalljee contributed reporting

The president campaigned on a promise to bring down grocery prices, but the new tariffs announced Wednesday will do the opposite for many staple foods.

Why it matters: The supermarket is where Americans feel the most affected by inflation.

The big picture: The groceries and food hit hardest, if these tariffs take effect, are the things mostly not grown or harvested in the U.S.

• For example: Coffee, chocolate, vanilla, bananas, fruits and vegetables from South America (the berries you buy in winter), a lot of shrimp.

By the numbers: Implementing the new reciprocal and baseline tariffs, on top of the other taxes on imports already imposed by the White House, would increase fresh produce prices by 4% and food prices overall by 2.8%, per the Yale Budget Lab's model.

• But prices for certain products will rise further.

Zoom in: Outside of some marginal production in Hawaii and Puerto Rico, the U.S. doesn't grow coffee beans, instead importing 99% of its coffee, per the National Coffee Association.

• And most of us drink it. 63% of adults in the U.S. drink coffee each day. Only 10% of Americans are eating eggs daily — recall the commotion when those prices went up.

There's also shrimp: You might have noticed shrimp at the grocery store is relatively affordable — that's partly because duties on imported shrimp are at zero.

• More than 94% of the shrimp Americans eat comes from other countries, according to International Trade Commission data cited by the Southern Shrimp Alliance, a U.S. industry group.
• And more than 90% of that comes from just four countries: Ecuador (imports from this country will face a 10% tariff); India (26%), Indonesia (32%) and Vietnam (46%)
• "I think shrimp and seafood is going to get hit pretty hard," says Ed Gresser, trade director at the Progressive Policy Institute, who is a former assistant U.S. trade representative for policy and economics.
• However, the U.S. shrimp industry is happy. "We are grateful for the Trump Administration's actions today," said John Williams, executive director of the Southern Shrimp Alliance said in a statement. It "will preserve American jobs, food security, and our commitment to ethical production."

Chocolate: Most cocoa beans are imported. Prices have already risen quite a bit over the past few years.

• U.S. imports have fallen, with candy makers shrink-flating chocolate bars and pushing alternatives, as the USDA reports.

Big Macs could be in play. Though the U.S. imports only 12% of its beef, it's important meat.

• Australian farmers told Reuters they'd pass along the 10% beef tariffs to American consumers. "Australian beef is prized by U.S. fast food chains for its lower fat content, which is combined with fattier U.S. beef to produce hamburgers with the ideal fat content," Reuters reports.
• Last month the country's trade minister warned McDonald's hamburgers were at stake. The fast food giant did not immediately return an email request for comment.

Reality check: This could've been a lot worse. The President didn't include Mexico and Canada in his 10% baseline tariff assessment.

• Though those countries are now subject to 25% tariffs, there are exemptions under the USMCA that allow imports of goods that are actually made or grown in those countries.
• Canada is a top chocolate exporter. Mexico supplies a substantial amount of our fresh fruits and vegetables. In other words, there will be avocados.

Zoom out: Rising food prices are politically toxic. The president knows this. He took some time to muse on the topic yesterday.

• "An old-fashioned term that we use 'groceries," he said. "It sort of says a bag with different things in it. Groceries went through the roof. And I campaigned on that."

The bottom line: A reason to perk up? Coffee beans do keep for a while.

Editor's note: This story has been updated with comment from the Southern Shrimp Alliance.

Far-right activist Laura Loomer was at President Trump's side as he campaigned and is now visiting the Oval Office. Trump previously claimed he's unaware of the conspiracy theories Loomer promoted.

Why it matters: National Security Council staffers were fired on Thursday, a day after Loomer visited the Oval Office and pressed Trump to remove specific members.

• Some Republicans have sounded alarms over Loomer's presence in Trump's inner circle, concerned it's a sign he's moving deeper into a world of conspiracies and racism, Axios' Sophia Cai and Alex Thompson reported last year.

Relationship with Trump

The latest: Loomer was furious that "neocons" had "slipped through" the vetting process for Trump administration jobs, Axios' Barak Ravid and Dave Lawler reported on Thursday.

• At the White House on Wednesday, she presented "research and evidence," per a U.S. official. The firings occurred on Thursday.
• Axios has not confirmed if the firings were directly linked to that incident.

Zoom out: Loomer, who previously said she doesn't work for Trump, is a frequent guest of Mar-a-Lago and was backstage at September's presidential debate.

• She traveled with him the following day to New York and Pennsylvania.

What she's saying: "It was an honor to meet with President Trump and present him with my research findings," Loomer wrote on X on Thursday.

• "I will continue working hard to support his agenda, and I will continue reiterating the importance of, and the necessity of STRONG VETTING, for the sake of protecting the President of the United States of America, and our national security."
• She also said she would not divulge details on the Oval Office meeting.

Trump was asked about Loomer and his relationship with her several times during a press conference in California last year, and said she's a "supporter" of him and his campaign.

• "I don't control Laura," he said. "Laura has to say what she wants. She's a free spirit."
• Pressed on whether he's aware of the conspiracy theories she espouses, he said "No, I don't know that much about it. ... I know she's a big fan of the campaign."
• He said in a Sept. 2024 post on his Truth Social platform: "I disagree with the statements she made but, like the many millions of people who support me, she is tired of watching the Radical Left Marxists and Fascists violently attack and smear me."

Conspiracy theories and racist commentary

Loomer, who has described herself as a "proud Islamophobe," has called the 9/11 attacks an "inside job." She also falsely claimed President Biden was behind the assassination attempt against Trump in July.

• Last year, she peddled another baseless conspiracy theory about Haitian immigrants eating pets — a claim that Trump also raised.
• Loomer, who has 1.2 million followers on X, had also posted that if Vice President Harris — whose mother immigrated from India — had been elected president, "the White House will smell like curry & White House speeches will be facilitated via a call center."

Rise to prominence as provocateur

Loomer has worked for conspiracy theorist Alex Jones' Infowars media platform, among other right-wing outlets.

• In one 2015 stunt, she posed as a Hillary Clinton supporter to try to entrap campaign workers into accepting illegal cash donations.
• Her social media presence is full of inflammatory posts about immigrants and other groups, including one celebrating the deaths of migrants crossing the Mediterranean. She denies being a racist, though she has described herself as pro-white nationalism.
• Her history of false claims include that multiple school shootings were staged.
• Getting banned from social media outlets like Twitter, Facebook and Instagram — for reasons including violating policies on hateful conduct and speech and for posting misinformation — helped build her notoriety, even as it cost her large followings on those platforms.

Failed races for Congress

Loomer is a twice-failed congressional candidate in Florida.

• She ran in 2020 as the GOP nominee for the state's 21st congressional district and again in the Republican primary for the 11th congressional district in 2022.

Go deeper:

• Anatomy of a Trump conspiracy theory
• Scoop: Multiple firings on Trump's National Security Council after Loomer visit

Editor's note: This story has been updated with details about the Trump administration firing National Security Council members. Axios' April Rubin contributed reporting.

The Department of Education sent letters Thursday to state K-12 agencies requiring them to comply with the Trump administration's anti-diversity policies to maintain their federal funding.

Why it matters: It's the Trump administration's latest action against public schools that threatens Title I funding, which provides support for low-income students.

State of play: State officials were given a certification form, due within 10 days, to vouch that their policies aligned with federal directives against DEI practices.

• The department referred to the Supreme Court's overturning of affirmative action as a basis for anti-diversity policies, in addition to the Trump administration's interpretation of Title VI of the Civil Rights Act.

What they're saying: "Federal financial assistance is a privilege, not a right," Craig Trainor, acting assistant secretary for civil rights, wrote on Thursday. "When state education commissioners accept federal funds, they agree to abide by federal antidiscrimination requirements."

• "Unfortunately, we have seen too many schools flout or outright violate these obligations, including by using DEI programs to discriminate against one group of Americans to favor another based on identity characteristics."

Context: In a January executive order, Trump called for the end of diversity, equity, inclusion and accessibility in schools and companies.

• They "undermine our national unity, as they deny, discredit, and undermine the traditional American values of hard work, excellence, and individual achievement in favor of an unlawful, corrosive, and pernicious identity-based spoils system," the executive order said.

Zoom out: Last month, the Trump administration targeted 45 schools for what it called "race-exclusionary practices" a part of the effort to crack down on diversity initiatives.

• In February, the Department of Education warned academic institutions that it may cut federal funding for those with policies related to race or diversity.

Go deeper: Trump-voting states have more to lose if Education Department dismantled

The world economic order is shifting beneath our feet, as historic allies look to America-proof their economies. President Trump's latest tariff announcement will accelerate the shift.

Why it matters: Global leaders and corporate executives alike are trying to figure out how to rejigger their economies to be less reliant on the U.S. in the longer run, even as they contemplate near-term retaliatory measures in hopes of lessening the tariff pain.

• Any economic delinking won't happen overnight. But the sense in Canada, Europe, and beyond is that their relationship with the U.S. has irreparably changed for the worse.

What they're saying: "Investors will be shocked how much things are going to move away from the US in standards, networks, and infrastructure — as well as services — in coming years," said Adam Posen, the president of the Peterson Institute for International Economics and a former Bank of England official.

• "The breach of trust and evident short-sighted self-dealing by the Trump Administration with regard to NATO and to trade reinforce each other," Posen, who just returned from a trip to Ottawa and has been speaking with European officials, added.
• "They make it more likely that Europe and the US will increasingly diverge in coming years economically as well as in security."

Driving the news: Top European Union official Ursula von der Leyen said the bloc was in the process of finalizing retaliatory measures for steel and aluminum tariffs.

• Next comes a potential response to the 20% across-the-board tariffs on European goods.
• "We are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail," von der Leyen said.

What to watch: In Europe and Canada — two of America's largest trading partners — officials have been blunt about the realities of a global system where the United States is less prominent.

• Germany has ditched its debt-averse mindset and ramped up borrowing for mega-investments in its defense sector in the wake of U.S. threats to back out of NATO.
• Canadian Prime Minister Mark Carney said last week that the country's U.S. relationship "based on deepening integration of our economies and tight security and military cooperation is over."
• He added that Canada would "fundamentally reimagine our economy" in a way that might make it less reliant on America.

That sentiment was echoed in a recent conversation with one of Canada's leading business trade groups.

• "A lot of Canadians feel hurt and upset," Doug Griffiths, head of the Edmonton Chamber of Commerce, tells Axios. "We are looking at investments that make us less dependent on the U.S.," he added. "I think we will ultimately be stronger, but I worry about you guys."

The intrigue: The value of the U.S. dollar has fallen sharply against other major currencies in the last 24 hours — in contrast to economic theory that predicts higher tariffs would drive a currency up.

• Analysts attribute the move to a sense that the U.S. may no longer serve its unique role in the global economy.
• Thierry Wizman, a foreign exchange strategist at Macquarie, writes that the role of the dollar as a safe haven "was already attenuating" in the first quarter, amid a "loss of American exceptionalism under the push for a more 'autarkic" trade regime."

The bottom line: In the short term, economists anticipate higher global inflation and slower world economic growth from Trump's tariff suite.

• But the potential economic delinking that plays out alongside those conditions might be more daunting.

One of the surprises out of Wednesday's big tariffs announcement was that the Trump administration used a surprisingly simplistic approach to calculating these much-hyped reciprocal tariffs.

Why it matters: This was not a finely tuned set of import taxes calibrated to exert pressure on trading partners to adjust specific policies with which the U.S. has grievances.

• Rather, it was some simple arithmetic, based on overall trade data, that became the justification for the most sweeping U.S. duties in generations — a trade-weighted 22.5% tariff, per the Yale Budget Lab, up from around 2.4% last year.
• It implies fewer off-ramps for countries that seek tariff relief, and thus less potential for de-escalation. If tariffs are applied without regard to the details of each country's economic policies and circumstances, what is there to negotiate?

State of play: Wednesday, some social media sleuths figured out, and the administration confirmed, that there was a simple formula behind the reason, say, Vietnam was slapped with a 46% tariff while Norway faces 15%.

• The formula is to divide the U.S. trade deficit with each country by that country's exports to the U.S. The final reciprocal tariff was then divided by 2, with a minimum of 10% (which applies even to those countries with which the U.S. has a trade surplus).
• "While individually computing the trade deficit effects of tens of thousands of tariff, regulatory, tax and other policies in each country is complex, if not impossible, their combined effects can be proxied by computing the tariff level consistent with driving bilateral trade deficits to zero," per the U.S. Trade Representative's explainer.

Between the lines: This logic implies that any country with which the United States experiences a trade deficit, regardless of the reason, is in some way a bad actor and requires tariffs as payback.

• But even if you believe that it's not good for the U.S. to run large, persistent overall trade deficits (which can contribute to financial imbalances and under-investment in key industries), it doesn't imply that there needs to be balanced trade with every individual country.
• Depending on U.S. consumer demand for a given country's exports, whether it seeks to buy U.S. financial assets, and myriad other factors, even in a world where there is balanced U.S. trade, some countries would be expected to run surpluses and others deficits.
• Moreover, the 10% minimum tariff — even on countries with which the U.S. runs a surplus — implies that tariffs of more than 4x their previous levels are a new minimum that will apply to the rest of the world, no matter how a given country tries to respond to U.S. concerns.

What they're saying: Tobin Marcus and Chutong Zhu of Wolfe Research write in a new note that "since these 'reciprocal' numbers are driven not by actual tariffs but by the simple fact of trade deficits, they will be very challenging to negotiate away, and policy changes may do nothing to alleviate them."

The bottom line: The calculation method used for this round of tariffs implies they won't be negotiated away quickly or easily.

Corporate America's reaction to President Trump's tariffs has been muted so far, with many relying on trade associations or special interest groups to speak on their behalf.

Why it matters: Corporate America has recently drawn a hard line in the sand regarding how and when they comment on public policy, social issues or cultural moments.

• The line is, "We only comment on policies that impact our business." For many companies — specifically those in automotive, retail and consumer goods — this moment would qualify.
• Plus, silence is a statement too.

Catch up quick: Trump ended the free-trade era on Wednesday by implementing 10% baseline tariffs on U.S. imports, plus steeper reciprocal levies on those from the European Union, China and Vietnam, among others.

• It's one of the "biggest, most abrupt economic gambles in presidential history," says Axios Macro co-authors Courtenay Brown and Neil Irwin.

Driving the news: Axios reached out to more than a dozen Fortune 500 companies whose stock plummeted following the tariff news, none of which had comment.

• The Business Roundtable — the lobbying group that represents America's top CEOs — put out a statement on Wednesday warning that the universal tariffs "run the risk of causing major harm to American manufacturers, workers, families and exporters" and that "damage to the U.S. economy will increase the longer the tariffs are in place."
• Meanwhile, the U.S. Chamber of Commerce called the tariffs "a tax increase that will raise prices for American consumers and hurt the economy."

Yes, but: Leaders from the automotive industry voiced concerns ahead of "Liberation Day," with Ford Motor Company CEO Jim Farley stating the tariffs will create "costs and chaos" and some are adjusting their production and manufacturing operations.

• Meanwhile, executives from Target, Best Buy, Mattel, Hasbro, Walmart and Costco preemptively warned consumers that price hikes are likely.

Between the lines: While "Liberation Day" didn't serve as a liberating moment for CEOs, some are voicing frustrations behind closed doors, according to corporate communicators who asked to speak on background.

• "It's already starting to feel like the tide is changing among CEOs. You can come for their workers' rights, but don't come for their money," said one communications leader from a major tech company.

The big picture: Business leaders will need to navigate the uncertainty and volatility brought forth by the Trump administration's policies and explain how these policies impact key audiences.

• Employees, in particular, are concerned about how these policies could affect their lives, employment or the business' broader operations.

What's next: First-quarter earnings season will get into swing next week, which will likely force many executives to address Trump's trade policies head-on.

What to watch: During the first administration, Trump's 2017 immigration ban opened the floodgates for corporate pushback, with Microsoft, Google, Apple, Facebook and other major tech companies arguing that the ban hindered business growth.

• The implementation of these trade policies could serve as a similar tipping point for his second term.

More on Axios:

• Trump takes the ultimate risk with the global economy
• Clothing prices could surge if these tariffs stick

Former Vice President Mike Pence will be honored with the 2025 John F. Kennedy Profile in Courage Award for putting his life and career on the line to certify the 2020 election, the John F. Kennedy Library Foundation announced Thursday.

Why it matters: Pence has been ostracized by President Trump and the Republican Party for refusing to overturn the 2020 presidential election amid the violent Jan. 6 attack on the Capitol.

Zoom in: The foundation said Thursday that despite extraordinary pressure to single-handedly overturn the results of the 2020 election, Pence stood firm in his commitment to democracy.

• Pence's actions ensured the constitutionally mandated transfer of power from Trump to newly elected President Biden.
• Pence upheld his duty in spite of a violent mob that was seeking to halt the certification by storming the U.S. Capitol and threatening his life. The Secret Service urged him to evacuate.

What they're saying: "Political courage is not outdated in the United States. At every level of government, leaders are putting country first, and not backing down," Caroline Kennedy and Jack Schlossberg said in a statement.

• "Despite our political differences, it is hard to imagine an act of greater consequence than Vice President Pence's decision to certify the 2020 presidential election during an attack on the U.S. Capitol."
• "His decision is an example of President Kennedy's belief that an act of political courage can change the course of history."
• Caroline Kennedy is JFK's daughter and Schlossberg is his grandson.

In a statement, Pence said he was "deeply humbled and honored to be the recipient" of the award.

• "I have been inspired by the life and words of President John F. Kennedy since my youth and am honored to join the company of so many distinguished Americans who have received this recognition in the past."

The White House did not immediately respond to Axios' request for comment on Pence's honor.

What's next: The award will be presented at the John F. Kennedy Presidential Library and Museum on May 4 in Boston.

Zoom out: The John F. Kennedy Profile in Courage Award is presented annually to public servants for making a courageous decision of conscience without regard for the personal or professional consequences.

• The award was created in 1989 to honor President Kennedy's commitment and contribution to public service.
• The award is named for President Kennedy's Pulitzer Prize-winning book, "Profiles in Courage," which recounts the stories of eight U.S. senators who risked their careers by taking principled stands for unpopular positions.

Go deeper: Pence says he won't endorse Trump

Editor's note: This story has been corrected to reflect that the award is given by the John F. Kennedy Library Foundation (not the John F. Kennedy Presidential Library and Museum), and it was updated to include the place and time of the ceremony.

Several members of President Trump's embattled National Security Council have been fired, a U.S. official and a second source familiar told Axios on Thursday.

Why it matters: The firings come a day after conspiracy theorist Laura Loomer visited the Oval Office and pressed Trump to fire specific NSC staffers. Axios has not confirmed whether the firings were directly linked to that incident, but the source familiar said they were "being labeled as an anti-neocon move."

Driving the news: In a conversation with reporters on Air Force One on Thursday, Trump confirmed the firings at the National Security Council.

• "We're always going to let go of people — people we don't like or people that take advantage of [us] or people that may have loyalties to someone else," he said.
• Trump praised Loomer and said "she makes recommendations ... and sometimes I listen to those recommendations ... I listen to everybody and then I make a decision."
• Trump said Loomer recommended some people for jobs at the White House but denied she had anything to do with the firings.

Behind the scenes: The U.S. official said Loomer was furious that "neocons" had "slipped through" the vetting process for administration jobs, referring to hawkish foreign policy views commonly associated with the Bush administration.

• "She went to the White House yesterday and presented them with her research and evidence," the official said. Loomer's visit was reported earlier by Status and The New York Times. The official suspected that the firings were linked to Loomer's visit but was not certain.
• The U.S. official named three senior NSC members who had been fired, and said it was shaping up to be a "bloodbath." Axios is seeking additional confirmation before naming those people.
• The source familiar said several people had been fired, possibly as many as 10, including senior directors. An NSC spokesperson declined to comment.

State of play: Axios has not confirmed whether any of the individuals let go were in any way connected to the separate controversy about the use of Signal and private email accounts by national security adviser Michael Waltz and NSC staff to discuss sensitive information.

• Waltz had accidentally added The Atlantic's editor-in-chief Jeffrey Goldberg, whom Trump allies have labeled a "neocon," to a Signal chat about military strikes in Yemen.
• Trump considered firing Waltz at the height of the "Signalgate" scandal but ultimately decided to keep him and deny his critics a scalp, Axios' Marc Caputo and Mike Allen reported.

Editor's note: This story has been updated with President Trump's comments on Thursday.

America is a large, rich country with a sweet tooth. Madagascar is a small, poor country with an abundance of vanilla. There's therefore a natural trade to be made: They send us their precious pods, we send them the dollars they need for day-to-day necessities.

Why it matters: By the logic of the Trump administration's new tariff regime, that's not a natural trade at all.

• Instead, it's proof that tiny Madagascar is "picking on us" (to quote Commerce secretary Howard Lutnick on CNBC this morning) by selling us its natural riches.

Zoom in: As the US Trade Representative sees it, every trade deficit is the result of "tens of thousands of tariff, regulatory, tax and other policies" — rather than reflecting any natural differences in the wealth and patrimony of different countries.

• In the case of Madagascar, because it runs a trade surplus with the United States, it is being hit with a 47% tariff, not only on vanilla but also on everything else it exports to us.
• The stated aim is to find a tariff large enough to bring that deficit down to zero.
• Given that Madagascar has precious little need for U.S. exports, that means in practice that the tariff has to be big enough to stop Americans from consuming more than a thousand tons of vanilla every year.

The big picture: When nice things more get expensive, we consume less of them, or move to cheaper alternatives.

• We'll use synthetic instead of natural vanilla, we'll swap domestic beer for imported wine, we'll drink coffee made from robusta rather than arabica beans.
• The losers are the exporters, to be sure — they make fewer sales to Americans, although in general they'll just sell to other countries instead.
• But among the losers must also be counted the U.S. consumers who valued those everyday luxuries in the first place and are now forced to cut back.

What they're saying: "The new U.S. tariffs won't affect the reputation of Italian wines, which continue to be regarded as high-quality by American consumers," says Italian wine merchant Andrea Moradei of Vinarium.

• "However, the impact on demand will be significant," he adds.

The bottom line: The U.S. doesn't produce a lot of luxury goods for export. The French don't drink much California cabernet; the Scots rarely covet Kentucky bourbon.

• If Trump and Lutnick want to tariff their way to their stated aim of a trade balance of zero, then Americans are going to have to do much less of the one thing they're the best in the world at, which is consuming things.
• Sorry, cigar aficionados.

A nationwide anti-President Trump movement on Saturday, "Hands Off!," is expected to be the largest single-day protest since he entered office.

Why it matters: The Trump administration's wide-reaching and ground-shaking policies have mobilized a varied cross section of Americans affected by political, economic, social and legal changes.

• "This is not just corruption," the Hands Off! website said. "This is not just mismanagement. This is a hostile takeover."

By the numbers: More than 1,100 rallies, visibility events and meetings were scheduled in all 50 states as of Wednesday afternoon.

• Organizers said they had nearly 250,000 RSVPs as of March 29.

The latest: White House garden tours scheduled for Saturday were postponed to Sunday in anticipation of D.C. protests, first lady Melania Trump said on Thursday.

State of play: Protesters are rallying against several Trump administration policies, including its handling of Social Security benefits, layoffs across the federal workforce, attacks on consumer protections and anti-immigrant policies and attacks on transgender people.

• The protests are also against Elon Musk's involvement in the federal government via DOGE — after he's already faced a wave of demonstrations at Tesla dealerships worldwide via the #TeslaTakedown movement.
• The Hands Off! demonstrations will occur at state capitals, federal buildings, congressional offices and city centers.
• Dozens of advocacy organizations are partnering to support Saturday's action, including the Center for LGBTQ Economic Advancement & Research, Declaration for American Democracy, the Human Rights Campaign, Indivisible and Planned Parenthood.

What they're saying: "This is a nationwide mobilization to stop the most brazen power grab in modern history," the movement's website said.

• "Trump, Musk, and their billionaire cronies are orchestrating an all-out assault on our government, our economy, and our basic rights—enabled by Congress every step of the way."

Zoom in: The movement hosted a virtual safety and deescalation training on Wednesday, after a Tuesday virtual meeting with nearly 35,000 RSVPs, recorded for posterity, gave general information on the protests and the Trump administration.

• "Whether they get away with any particular effort doesn't matter as much as the message that they are sending so loud and so clear, which is sowing fear, sowing the feeling of powerlessness," Deirdre Schifeling, the ACLU's chief political and advocacy officer, said on Tuesday.

Zoom out: Consumers have also been protesting corporations with boycotts, especially over anti-diversity policies since the start of the Trump administration.

Go deeper: The Trump 2.0 resistance: Alive, but evolved

Editor's note: This story was updated with news about the White House garden tours.