Wall Street stock indices plunged on Monday after Donald Trump did not rule out the possibility that America could enter a recession this year. The S&P 500 fell by 2.7%; the tech-heavy NASDAQ fell by 4%, as Tesla shares plunged; and the Dow dropped by 2.1%, or 890 points. In an interview with Fox News, aired on Sunday, Mr Trump defended his economic policy and said his administration may increase some tariffs.
Marco Rubio, America’s secretary of state, confirmed that USAID, America’s main aid agency, would cancel more than 80% of its programmes. America’s state department will administer any remaining contracts. Mr Rubio thanked DOGE, which is making drastic cuts to the federal-government workforce, for the “overdue and historic reform”. The demise of American aid will halt life-saving programmes, including treatment for HIV, tuberculosis and other diseases.
The Canadian province of Ontario imposed a 25% surcharge on electricity exports to America. Doug Ford, Ontario’s premier, said he was retaliating against Mr Trump’s 25% tariffs on Canadian imports, which the president partially paused until April. Mr Ford warned that he would “shut the electricity off completely” if America escalates. In addition to the tariffs, Mr Trump has threatened to annex Canada.
Rescue services pulled more than 30 people from the North Sea after a cargo vessel collided with an oil tanker off the coast of East Yorkshire in northern England. Authorities said that some crew members were still missing. Tracking data suggests that the Portuguese-flagged cargo ship hit Stena Immaculate, an American-flagged tanker, while it was anchored.
Ahmed al-Sharaa, Syria’s interim president, said that the Syrian Democratic Forces, a Kurdish militia that runs three provinces in the country’s north-east, had agreed to a ceasefire and to merge with state institutions. If implemented, the deal would bring border crossings, airports and oil fields in the region under the Syrian government’s control, while Syrian Kurds would be granted broader constitutional rights.
Britain urged Israel to restore electricity to Gaza. Israel cut power to the strip on Sunday, leaving an important desalination plant reliant on generators and producing less water. Meanwhile Israel sent a team to Qatar to continue negotiations over extending a ceasefire with Hamas in Gaza. Steve Witkoff, America’s envoy to the Middle East, is expected to join the talks this week.
The Trump administration launched CBP Home, a mobile app migrants can use to voluntarily “self-deport” themselves from America with “the opportunity to return legally in the future”. It replaces CBP One, an app set up by the Biden administration that allowed migrants to schedule an appointment to apply for asylum. During the campaign Mr Trump had promised to shut it down.
Figure of the day: 85%, the proportion of people that said that they had experienced an annoying co-worker in a global poll conducted last year by Kickresume. Read the full story.
Donald Trump’s return to the presidency has brought exceptional changes to American politics—with consequences for the rest of the world, too. Read The US in brief, a daily update of the domestic political stories that matter. Sign up here to receive it as a newsletter, each weekday, in your inbox.