Trump-Zelensky Fallout & Tariffs Hit Canada, Mexico | 3.4.25

Summary

Morning Wire Summary: Trump-Zelensky Fallout & Tariffs Hit Canada, Mexico | March 4, 2025

In the March 4, 2025 episode of Morning Wire, hosted by John Bickley and Georgia Howe of The Daily Wire, the discussion centered around three major developments: the deteriorating relationship between President Donald Trump and Ukrainian President Volodymyr Zelensky, the imposition of new tariffs on Canada and Mexico, and Trump's ambitious announcement to create a U.S. crypto reserve. Below is a comprehensive overview of the key points, insights, and conclusions drawn during the episode.

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1. Trump-Zelensky Fallout

A. Breakdown of US-Ukrainian Relations

The episode delves into the escalating tensions between President Trump and President Zelensky following a contentious meeting in the Oval Office. Georgia Howe opens the discussion by highlighting the Trump administration's withdrawal of support from Ukraine after the "heated exchange" with Zelensky ([00:03]).

B. Trump's Critique and Strategy Shift

John Bickley criticizes the administration's stance, stating, "They want money and they want conflict, even if it means walking us into the brink of World War III, which, frankly, it is doing" ([00:10]). This sentiment reflects a broader frustration with ongoing support without tangible progress towards peace.

C. Impact on Military Aid

The conversation reveals that President Trump has decided to pause all military aid to Ukraine, including weapons, ammunition, and other equipment not yet delivered to Ukrainian forces ([03:13]). National Security Adviser Mike Waltz explains that this move is aimed at compelling Ukraine to engage more earnestly in peace negotiations: "President Trump has been clear that he is focused on peace" ([03:13]).

D. European and Public Reaction

European leaders have criticized the U.S. for what they perceive as favoritism towards Putin, accusing Trump of abandoning democratic support. In response, White House officials pointed out that the European Union actually provided more financial aid to Russia than to Ukraine in 2024 ([04:13]). Polling data indicates that Trump's approach enjoys modest support among Americans, with a CBS poll showing him at a net approval rating of +2 on issues related to Russia and Ukraine, compared to President Biden's -22 ([04:13]).

E. Upcoming Congressional Address

As Trump prepares for his joint address to Congress, experts anticipate a focus on fulfilling campaign promises, reversing Biden-era policies, and significant emphasis on immigration. Tim Pierce highlights dramatic improvements in border security, noting that illegal crossings have plummeted to 8,450 in February from 140,000 the previous year ([05:05]). This achievement is portrayed as a cornerstone of Trump’s administration, promising to continue securing the border in his address ([05:07]).

Notable Quotes:

• John Bickley [00:10]: "They want money and they want conflict, even if it means walking us into the brink of World War III, which, frankly, it is doing."
• Mike Waltz [03:13]: "President Trump has been clear that he is focused on peace."

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2. New Tariffs on Canada and Mexico

A. Implementation of Tariffs

On March 4, 2025, President Trump enacted 25% tariffs on goods imported from Canada and Mexico, a strategic move aimed at leveraging U.S. economic power to address issues like drug trafficking and illegal immigration ([06:40]).

B. Economic Repercussions and Corporate Responses

The tariffs are expected to have significant economic effects across North America. Companies have begun shifting supply lines and relocating factories to the United States to avoid the new tariffs. For instance, Honda has moved its Civic production to Indiana from Mexico ([09:18]), and Taiwanese semiconductor giant TSMC announced a $100 billion investment in Arizona, creating thousands of high-paying jobs ([09:35]).

C. Retaliatory Measures and Inflation Concerns

Canada and Mexico have responded with retaliatory tariffs, prompting further adjustments in trade dynamics. While these tariffs aim to promote on-shoring and local manufacturing, economic experts warn of potential inflationary pressures due to increased costs of imported goods. However, Trump’s team remains optimistic that their pro-growth policies will mitigate these effects ([09:59]).

D. Progress on Immigration and Drug Control

Commerce Secretary Howard Lutnick reported a significant decrease in illegal immigration numbers and highlighted Mexico's enhanced efforts in law enforcement against drug trafficking. General Hector Jimenez Baez of the Mexican military emphasized the unprecedented measures being taken to secure the border ([08:41]).

Notable Quotes:

• Howard Lutnick [07:24]: "25% on Canada and 25% on Mexico."
• General Hector Jimenez Baez [08:41]: "We are working every day... to stop the drugs, to stop illegal immigration that try to cross the border to USA."

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3. Creation of a U.S. Crypto Reserve

A. Announcement and Objectives

President Trump announced the creation of a U.S. crypto reserve, aiming to elevate the cryptocurrency industry by mitigating market volatility and establishing the United States as the "crypto capital of the world" ([10:21]). This reserve is intended to include major cryptocurrencies such as Bitcoin, Solana, Ether, and Cardano ([10:37]).

B. Mechanisms and Potential Strategies

The reserve could be formed either by the government seizing cryptocurrency from criminal activities or by directing the Federal Reserve to purchase substantial amounts of crypto assets. This strategy is intended to signal government support and provide a stabilizing force in the notoriously volatile crypto market ([12:34]).

C. Market Reaction and Speculations

The announcement initially caused cryptocurrency prices to surge, with Bitcoin reaching $95,000 before settling back to the mid-$80,000 range amid broader market declines. Speculation arose regarding potential favoritism towards certain crypto entities, especially concerning AI crypto czar David Sachs, who is linked to Solana despite claims of divesting prior to his appointment ([13:25]).

D. Future Implications and Expert Opinions

Critics express concerns about the government's increased involvement in the crypto market potentially leading to overregulation or market manipulation. Nonetheless, proponents like Cathie Wood of Ark Invest remain bullish, predicting Bitcoin could reach $1 million by 2030 ([13:25]).

Notable Quotes:

• Tim Rice [10:37]: "President Trump wrote on Truth Social... 'a U.S. crypto reserve will elevate this critical industry after years of corrupt attacks by the Biden administration.'"
• John Bickley [12:34]: "Never sell your bitcoin. Right? That's right, isn't it?"

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Conclusion

The March 4 episode of Morning Wire provided an in-depth analysis of President Trump's strategic shifts in foreign policy, trade, and financial innovation. The fallout with Ukraine marks a significant pivot towards prioritizing peace and reducing foreign entanglements, while the new tariffs on Canada and Mexico aim to bolster domestic manufacturing and address critical border issues. Additionally, the ambitious crypto reserve initiative signifies a bold step into the digital financial frontier, poised to reshape the U.S. role in the global cryptocurrency landscape. As Trump prepares his joint Congressional address, the ramifications of these policies will continue to unfold, reflecting the administration's broader agenda to reshape American economic and geopolitical standing.

Stay tuned to Morning Wire for ongoing coverage and detailed reports on these pivotal developments.

Transcript

[Georgia Howe]

The Trump administration continues to withdraw from Ukraine following the heated Oval Office exchange with President Zelensky.

[John Bickley]

They want money and they want conflict, even if it means walking us into the brink of World War iii, which, frankly, it is doing.

[Tim Pierce]

Will the president restart negotiations? And what can we expect from his congressional address tonight?

[Georgia Howe]

I'm Georgia Howe with Daily Wire Editor in Chief John Bickley. It's Tuesday, March 4th, and this is Morning W. Trump's 25% tariffs on Canada and Mexico go into effect today. What kind of changes have we already seen as a result?

[John Bickley]

What they have to do is build their car plants, frankly, and other things in the United States, in which case they have no tariffs.

[Tim Pierce]

And Trump announces the creation of a crypto reserve. How are the markets responding?

[Georgia Howe]

Thanks for waking up with MORNING wire. Stay tuned. We have the news you need to know.

[Cabot Phillips]

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[Tim Pierce]

As Donald Trump prepares for his highly anticipated joint address to Congress this evening, the fallout continues from his contentious meeting with Vladimir Zelensky last week.

[Georgia Howe]

Daily Wire senior editor Cabot Phillips is here to preview the address. But first, let's talk about Ukraine. There's been a lot of developments since that White House sit down on Friday, right?

[Mike Waltz]

Coming into Friday's meeting, basically everyone believed the US And Ukraine would sign that minerals deal and the stage would be set for a ceasefire and formal negotiations with Moscow. But after that disastrous event at the White House, everything has changed. Zelensky was in London late Sunday night seeking financial support from Prime Minister Keir Starmer and told reporters that a peace deal with Russia is, quote, still very, very far away. And no one has started all these steps yet. That just outraged Trump, who has said there could be a peace deal right now if Zelensky were willing. Here he is elaborating on that sentiment during a press conference Monday.

[John Bickley]

President Zelensky supposedly made a statement today in ap. I'm not a big fan of ap, so maybe it was an incorrect statement. But he said he thinks the war's going to go on for a long time, and he better not be right about that. That's all I'm saying.

[Mike Waltz]

Trump went on to discuss his shifting relationship with Zelensky.

[John Bickley]

I just think he should be more appreciative because this country has stuck with them through thick and thin. We've given them much more than Europe. The money is one thing, but they're losing thousands of soldiers a week, and I want to see it stop.

[Georgia Howe]

Well, and now Trump is taking concrete steps to pull back from Ukraine. What exactly does that look like?

[Mike Waltz]

Right. On Monday night, we learned that President Trump would be pausing all military aid to Ukraine. That pause will apply to all weapons, ammunition, and other equipment not already inside Ukraine's borders. A White House official told the Daily Wire, quote, president Trump has been clear that he is focused on peace. We need our partners to be committed to that goal as well. We are pausing and reviewing our aid to ensure that it is contributing to a solution. According to European officials, without any new weapons from the U.S. ukraine would, at its current pace, have enough resources to last until this summer. So this could be a means of Trump attempting to force Zelensky to the negotiating table. For context, here's Trump. National Security Adviser Mike Waltz on Fox ahead of that decision being made public.

[Tim Rice]

He's not ready to talk peace at all. But here's the problem. Time is not on his side. Time is not on the side of just forever continuing this conflict. The American people's patience is not unlimited. Their wallets are not unlimited, and our stockpiles and munitions are not unlimited.

[Mike Waltz]

Now, as you talked about yesterday in the fallout of Friday's meeting, European leaders rallied around Ukraine taking open shots at the U.S. accusing Trump of siding with Putin and abandoning democracy. For their part, White House officials were quick to point out that the European Union actually gave more money to Russia last year than to Ukraine. The EU purchased $23 billion worth of Russian oil and gas in 2024, compared to the $19 billion in military and financial aid to Ukraine. So they're essentially calling the Europeans hypocrites. And it's worth noting that here, stateside, the American public does seem to back Trump's approach to ending the war. According to a new CBS poll, Trump has a net approval rating of plus 2 on Russia, Ukraine, and President Biden left office. He was at negative 22.

[Georgia Howe]

Well, and all of this comes as the president gears up for his joint address to Congress this evening. What are we expecting to see?

[Mike Waltz]

Well, he's almost certain to touch on Ukraine. But more broadly, from what we're hearing, the president is going to tout his efforts to fulfill campaign promises and reverse course from the Biden administration. Specifically, expect to hear him focus a good chunk of time on immigration, where we've seen perhaps the most drastic turnaround. According to the latest government data, in the month of February, there were just 8,450 illegal crossings along the southern BO. For context, last February, that number was 140,000. It's now 8,000. That means that Trump's first full month in office saw the lowest number of illegal border crossings for any month since, get this, 1968. Trump vowed to secure the border. On the campaign trail is clearly doing just that, a stunning turnaround. We'll certainly hear about that when he takes the podium this evening.

[Georgia Howe]

And it's going to be streaming live on daily wire at 9pm Eastern. And of course, we're going to have a full report Wednesday morning. Cabot, thanks for reporting.

[Mike Waltz]

Anytime.

[Cabot Phillips]

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[Georgia Howe]

New tariffs on the United States largest trading partners go into effect this morning as President Trump tries to leverage America's economic might to score wins on drugs and immigration.

[Tim Pierce]

Daily Wire reporter Tim Pierce is here to talk about how the new tariffs could impact Americans. Hey, Tim. So Canada and Mexico were able to negotiate a pause to these tariffs the first time around, but not again. What was the White House's message yesterday?

[Howard Lutnick]

So President Trump delayed the tariffs last month. And leading up to the second deadline, there was a lot of confusion about what these tariffs would look like. Would an agreement be reached to avoid the tariffs? Would Trump delay again? Would he go halfway? None of those scenarios played out here. Was Trump yesterday, very importantly, tomorrow, tariffs.

[John Bickley]

25% on Canada and 25% on Mexico.

[Howard Lutnick]

The blanket tariff is now in place except for Canadian energy. And this is going to have some major economic effects on North America, especially as Canada and Mexico implement their own retaliatory tariffs. Many companies have already shifted supply lines and factories to avoid the brunt of the costs. Of course, on shoring this manufacturing is one of the goals of putting these tariffs in place. I should note that Trump also levied this morning an additional 10% tariff on Chinese goods to the United States. That falls on top of the 10% tariff Trump applied on China last month.

[Tim Pierce]

Right now, the president has said that he wants Canada and Mexico specifically to crack down on illegal immigration and drugs. Has there been any progress there? And what does Trump want to see happen?

[Howard Lutnick]

Yeah, Commerce Secretary Howard Lutnick was on Fox News over the weekend and he said that the illegal immigration numbers are way down. But drugs are another matter. Here's Lutnick.

[John Bickley]

They just haven't moved on the fentanyl deaths in America. And that's one of those key things protecting the lives of Americans.

[Howard Lutnick]

So it's not that Canada and Mexico won't work with the White House, but the president feels like they could do more. For what it's worth, Mexico has evidently taken some basic law enforcement steps that it's been neglecting for decades. Decades. Here's what Mexican General Hector Jimenez Baez told the Daily Caller.

[Tim Rice]

We are working every day, National Guard and Mexican army to stop the drugs, to stop illegal immigration that try to cross the border. That is the first time in my entire career that I see checkpoints checking Mexican vehicles and people before to cross the border to USA.

[Howard Lutnick]

For context, the General is in his 36th year of his career with the Mexican military.

[Georgia Howe]

Wow.

[Tim Pierce]

And just now seeing these kinds of enforcement. You mentioned that the tariffs will have some major impacts. What could they mean for American consumers and workers?

[Howard Lutnick]

Well, we've already seen a lot of investment come into the US as companies try to avoid the cost of importing. That includes companies such as Honda that now plans to build its new Civic in Indiana instead of Mexico. Trump announced on Monday that Taiwanese chip giant TSMC is also making a heavy investment in the United States.

[John Bickley]

Here's that this $100 billion in new investment will go into building five cutting edge fabrication facilities in the great state that we just discussed, Arizona and will create thousands of jobs, many thousands of jobs and high paying jobs. In total. Today's announcement brings Taiwan semiconductor investments to about 165 billion.

[Howard Lutnick]

So some major investments in the US but economic experts are warning about the inflationary pressure these New trade barriers could put on prices. But Trump's team is confident that their pro growth policies will ultimately counteract those pressures.

[Mike Waltz]

Right.

[Tim Pierce]

The Trump team remains very bullish that this is going to ultimately benefit Americans. Tim, thanks for reporting.

[Howard Lutnick]

Thanks for having me on.

[Tim Pierce]

President Trump sent cryptocurrency markets soaring over the weekend when he announced the creation of a crypto reserve.

[Georgia Howe]

Here to tell us more about the announcement is Daily Wire deputy Managing editor Tim Rice. So, Tim, this is clearly a big announcement, but what would a crypto reserve actually look like?

[Tim Rice]

Yeah. Good morning, Georgia. Let's start with what we do know. Trump wrote on Truth Social Sunday that, quote, a U.S. crypto reserve will elevate this critical industry after years of corrupt attacks by the Biden administration. He said that the reserve would include bitcoin and other cryptocurrencies like Solana, Ether, and Cardano. Trump says creating this reserve will ensure that the United States becomes the crypto capital of the world. At a basic level, this just means that the federal government is going to buy and hold a bunch of cryptocurrency that's going to signal the government's support of digital currencies, and it will allow the government to release crypto to stabilize the market if need be. Crypto advocates have long been pushing for the government to do something like this in the hopes that it will bring some modicum of stability to this notoriously tumultuous market.

[Georgia Howe]

Now, how would the government go about doing that and building the reserve?

[Tim Rice]

That's where things get a little bit unclear. Trump gave us a clue as to how this could work in July when he spoke at the Bitcoin 2024 conference in Nashville.

[John Bickley]

Many Americans do not realize that the United States government is among the largest holders of bitcoin. Does anyone know that the federal government has almost 210,000 bitcoin, or 1% of the total supply that will ever exist. But for too long, our government has violated the cardinal rule that every bitcoiner knows by heart. Never sell your bitcoin. Right? That's right, isn't it? Huh? That's right. How did I figure that one? Never sell your bitcoin. And so, as the final part of my plan, today, I am announcing that if I am elected, it will be the policy of my administration, United States of America, to keep 100% of all the Bitcoin the US government currently holds or acquires into the Future. We'll keep 100%.

[Tim Rice]

Now, this could be as simple as sitting on all the crypto. The federal government seizes from criminals. But Trump could also direct the Federal Reserve or some other agency to purchase a lot of crypto outright and build the stockpile that way. Critics are suggesting that Trump will pursue that latter route in a bid to enrich certain members of the crypto community that includes his AI crypto czar David Sachs, who is reportedly an early investor in Solana, one of the currencies set to be included in the stockpile. Now, Sachs said on Sunday that he sold all of his crypto before joining the Trump administration, but we can still expect a lot of this speculation in the coming days, or at least until Friday. That's when the White House is scheduled to host a crypto summit, where Sachs is expected to outline the plans for the strategic reserve in greater detail.

[Georgia Howe]

Now, how did the market respond to his first announcement?

[Tim Rice]

Bitcoin briefly surged to $95,000 on Monday, along with other cryptocurrencies, but after a sell off it dipped back into the mid-80s, which is part of a general downward trend. The crypto market hit an all time high in January, but has been faltering ever since. Just last week, Bitcoin dropped below $90,000 for the first time in months, a significant dip that had experts worrying the value would continue its nosedive. So, still a little bit unclear as to what's going to happen here, although I'll leave you with this. Cathie Wood, the CEO of Ark Invest, a pretty big figure on Wall street, insists that bitcoin is going to hit $1 million by 2030.

[Georgia Howe]

Well, interesting to see what we learn on Friday. Tim, thanks for reporting.

[Tim Rice]

You bet.

[Tim Pierce]

Thanks for waking up with us and if you enjoyed what you heard this morning, Share this episode with a friend.