Podcast Summary

Podcast: Hold These Truths with Dan Crenshaw
Episode: SITREP #7: Tariff Battles, Panama Canal, USAID, & “The Gaza Riviera”
Date: February 7, 2025
Host: Dan Crenshaw

Overview

In Situation Report #7, Congressman Dan Crenshaw provides an analytic roundup of major geopolitical developments and internal policy changes during the first two weeks of President Trump’s second term. The episode explores the administration's aggressive use of tariffs as a negotiation tool, U.S. strategic interests in the Panama Canal, the controversial restructuring of USAID, and an explosive new proposal for U.S. stewardship of Gaza. Crenshaw offers both factual reporting and insider commentary, blending updates with pointed analysis and humor.

Key Topics & Discussion Points

1. Trade Policy & Tariff Battles

[00:55–09:40]

• Trump Administration Policy Shift:
  Tariffs are being rapidly imposed not as long-term tools, but as negotiation leverage. “President Trump's primary goal in leveraging the strength of the US Economy appears to be coaxing trade or national security concessions out of other countries.” (Crenshaw, 02:19)

• Colombia Tariff Standoff:

  • President Trump enacted emergency 25% tariffs on Colombian imports after President Petro refused the return of deported Colombian nationals.
  • Result: Colombia reversed course “within hours” and accepted deportees.

• Actions Against NAFTA Allies & China:

  • 25% tariffs announced on Mexican and Canadian imports, 10% on all Chinese goods.
  • The administration uses reduced tariffs for select goods (e.g., Canadian oil) to manage domestic impacts like gas prices.
  • Both Canada and Mexico pledged to reinforce borders and crack down on fentanyl trafficking, leading Trump to delay implementation of some tariffs.
  • Crenshaw notes hope for deeper cartel cooperation with Mexico’s new administration.

• Analysis:
  Crenshaw contextualizes these rapid shifts as a result of Trump’s increased experience and prepared policy documentation going into a second term.

2. Panama Canal: Geopolitics and China’s Influence

[09:40–15:45]

• Strategic Importance:

  • 40% of U.S. container traffic and $270 billion in cargo pass through the canal annually.
  • Disruption would "vastly impede the Navy's ability to move resources around the world.” (Crenshaw, 10:35)

• Chinese 'Control' Narrative—Debunked:

  • CK Hutchinson Holdings (Hong Kong) operates ports at both canal entrances, but “a port is not a canal.”
  • "China doesn’t control access to the Canal in any way and it’s not clear how they would, except...the act of war I mentioned earlier.” (Crenshaw, 13:38)
  • Panama set to exit China’s Belt and Road Initiative, signaling a diplomatic win for the U.S.

• Wider Implications:

  • Chinese companies continue expanding influence via infrastructure investment, leveraging state subsidies the U.S. can't match.
  • U.S. companies’ inability to outbid China creates openings for Beijing.

• Memorable Note:

  • “If you want us to tell the Chinese to kick rocks...then give us an alternative that's at a better price. And often we can't.” (Crenshaw, 15:08)

3. USAID & the Department of Government Efficiency (DOGE)

[15:45–22:35]

• DOGE Formation:

  • Created by Trump executive order from the US Digital Service, now rumored to be working with Elon Musk’s engineers.

• Dismantling and Reforming USAID:

  • Trump admin pushes to fold USAID into the State Department, under Sec. Marco Rubio’s direct control.
  • Controversial grants discovered—e.g., $70K for a DEI musical in Ireland, $47K for a transgender opera in Colombia.
  • “Honestly, just having grown up in Colombia, that's a weird place to have a transgender opera, but apparently it happened.” (Crenshaw, 17:52)

• Republican & Democratic Divide:

  • GOP: Aid must be strategically aligned; too often wasteful and political.
  • Democrats: Any foreign aid is a brand multiplier for the U.S.
  • Some Democrats, e.g., Axelrod & Emanuel: “This is not the Hill I'm going to die on.” (Crenshaw quoting Axelrod/Emanuel, 19:45)

• Wider Restructuring:

  • Trump signals intent to shutter the Department of Education (“Linda McMahon... should put herself out of a job by overseeing the department’s dismantling.” 20:55) and reduce federal bureaucracy by 200,000 jobs.

4. Trump’s Gaza Proposal – “The Gaza Riviera”

[22:35–27:10]

• Trump’s Plan:

  • U.S. to "take over" Gaza, resettle Palestinians elsewhere, rebuild the area as a “Middle Eastern riviera.”
  • “As much as I would love to read this in Trump voice, it would just distract you all...” (Crenshaw, 19:45)
  • Direct Trump quote:
    • “The Gaza Strip would be turned over to the United States by Israel at the conclusion of Fight... [Palestinians] would have already been resettled in far safer and more beautiful communities... stability for the region would reign.” (Trump, 19:45)

• Global Backlash:

  • Saudi Arabia, Turkey, France, China & others reject the plan as destabilizing and illegal.
  • “Most notably Saudi Arabia said it would not establish ties with Israel without the creation of a Palestinian state. That contradicts Trump's claim...” (Crenshaw, 21:08)
  • Netanyahu praises “outside the box” thinking; Hamas calls it “absurd.”

• Context and Historical Precedents:

  • “Less than a century ago, Tel Aviv…[was] nothing more than sand dunes… Sharm El Sheikh…was developed from a fishing village to a tourist center under Israeli control in 1968.” (Crenshaw, 23:40)
  • Recounts Trump’s earlier “Peace to Prosperity” plan ($52M for Gaza redevelopment in exchange for disarming Hamas).

• Crenshaw’s Analysis:

  • Trump “throws a big idea out...and forces people to talk about it,” forcing reevaluation of regional responsibility and possible reconstruction.

5. Short Takes: Cabinet Confirmations, Fentanyl Legislation, and U.S.–Mexico Relations

[27:10–End]

• Cabinet Updates:

  • Confirmed: Attorney General Pam Bondi, Secretary of Energy Chris Wright, Secretary of VA Doug Collins.
  • Nominations pending: RFK for Secretary of Health, Tulsi Gabbard for National Intelligence, Kash Patel for FBI.

• Halt Fentanyl Act:

  • Permanently lists fentanyl as Schedule 1, countering Democratic opposition about “mass incarceration.”
  • Crenshaw: “That’s nonsense. Since this has been in place already for seven years, we’re just making it permanent.” (Crenshaw, 26:36)

• Regional Security:

  • Sean Derns’ piece “The US Looks South” noted (Washington Examiner).
  • Trump admin appoints “Latin Americanists” in key positions (Rubio, Landau, Homan) to reinvigorate southern policy.
  • “The US–Mexico relationship has been in a state of undeclared crisis... It’s to be seen if our two administrations can work together and get us back on a solid relationship of security, trade and coordinate cooperation.” (Crenshaw, 28:15)

Notable Quotes

• "There are no policy solutions, there are only trade offs."
  — Crenshaw referencing Thomas Sowell [02:02]

• "China doesn’t control access to the Canal in any way and it’s not clear how they would, except...the act of war I mentioned earlier.”
  — Crenshaw [13:38]

• “Honestly, just having grown up in Colombia, that's a weird place to have a transgender opera, but apparently it happened.”
  — Crenshaw [17:52]

• “This is not the Hill I’m going to die on.”
  — David Axelrod / Rahm Emanuel, quoted by Crenshaw [19:45]

• “You know, the argument there is like they've been saying for a long time, it's the world's biggest prison, so why wouldn't you want to leave?”
  — Crenshaw, on Trump’s “Gaza Riviera” proposal [20:06]

• "Less than a century ago, Tel Aviv…[was] nothing more than sand dunes… Sharm El Sheikh…was developed from a fishing village to a tourist center under Israeli control in 1968.”
  — Crenshaw [23:40]

• “That’s nonsense. Since this has been in place already for seven years, we’re just making it permanent.”
  — Crenshaw, on scheduling fentanyl as Schedule 1 [26:36]

Timestamps for Key Segments

• Tariff Battles (Intro & Colombia, Mexico, China) – [00:55–09:40]
• Panama Canal & China – [09:40–15:45]
• USAID, DOGE, & Domestic Cabinet Moves – [15:45–22:35]
• Trump’s ‘Gaza Riviera’ Proposal & Ceasefire – [22:35–27:10]
• Cabinet Confirmations, Halt Fentanyl Act, U.S.–Mexico Policy – [27:10–End]

Final Take

This SITREP episode delivers an unvarnished insider’s breakdown of the swift, often controversial policy moves being made in Washington and abroad as Trump's second term begins. Crenshaw’s delivery mixes news analyst, legislative actor, and dry humorist, making the podcast accessible and informative for listeners seeking both context and clarity on fast-moving world events.