Trump Fires Kristi Noem as Homeland Security Secretary

Summary

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WSJ What’s News — PM Edition

Episode Title: Trump Fires Kristi Noem as Homeland Security Secretary
Date: March 5, 2026
Host: Alex Osolep

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Episode Overview

This episode focuses on major political and business developments, notably President Trump’s dismissal of Kristi Noem as Homeland Security Secretary, rising tensions and disruptions in the Middle East, and Apple’s surprising shift toward lower-priced devices in a volatile tech market. The episode also touches on global tariffs, supply chain concerns, and the impact of external crises on industries and markets.

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Key Discussion Points & Insights

1. Trump Fires Kristi Noem as Homeland Security Secretary

[00:33–02:20]

• Event Summary:
  President Trump has removed Kristi Noem from her post as Secretary of Homeland Security, making her the first cabinet member dismissed in Trump’s second term. She will be replaced by Republican Senator Markwayne Mullin of Oklahoma.

  • Trump had defended Noem until now, despite growing criticism surrounding her handling of a controversial immigration enforcement operation in Minneapolis, which resulted in two U.S. citizens' deaths.
  • Noem's “chaotic leadership style” and attempts to boost her personal profile were cited as factors in her dismissal.
  • The final straw came after her combative Senate Judiciary Committee hearing, where she defended her nationwide $220 million TV ad campaign.

• Notable Quotes:

  • Kristi Noem (during Senate hearing, 02:01):
    “The president approved ahead of time you spending $220 million running TV ads across the country in which you are featured prominently? Yes, sir, we went through the legal processes. Did it correct us? Yes, he did.”
  • Alex Osolep (on Trump’s reaction, 02:20):
    “Trump was upset and told senators and advisors he had not signed off on such a campaign.”

• Aftermath:

  • Trump acknowledged Noem may join a new security initiative to be announced soon.
  • Noem, via social media, expressed gratitude for her tenure and pointed to her “historic accomplishments” at DHS.

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2. Middle East Conflict & Oil Market Turbulence

[02:20–06:55]

• Conflict Escalates:

  • The Middle East faces heightened hostilities: Israel and Iran are trading attacks; Azerbaijani and Saudi territories have been affected by Iranian drones/missiles.
  • The U.S. has closed its embassy in Kuwait.
  • Trump told Axios he “must be involved in picking Iran’s next leader”—a controversial statement, as administration officials deny seeking regime change.

• Impact on Workers and Expats:

  • Thousands of foreign workers, particularly in Dubai and other GCC hubs, face safety concerns, flight disruptions, and evacuation difficulties.
  • Chip Cutter (WSJ, 03:22):
    “Some workers actually put a mattress up against the windows of their apartment. They were worried about blast and what might happen there. It’s forced families and workers to think through what are we comfortable with? Are we safe? What do we do next?”
  • Chip Cutter (on evacuations, 04:07):
    “Companies like KPMG used various methods to get their workers out—via flights, via land... security officials advised having a go bag ready. There’s been a lot of planning, trying to keep in close contact, knowing this is all really fluid and changing so quickly.”

• Market Reaction:

  • U.S. stocks plunged (Dow down 1.6%, or 785 points), oil prices surged (U.S. oil up 8.5%+ to over $81 per barrel, Brent above $85).
  • The Strait of Hormuz closure has disrupted shipping, forcing alternative sourcing—most notably a rise in Venezuelan oil imports into the U.S.

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3. Legal and Policy Developments

[04:48–06:21]

• Tariffs:

  • Twenty-four states are suing over President Trump’s newly imposed 15% global tariff, arguing it misapplies the law and exceeds executive authority (Congress is supposed to control tariffs).
  • A federal judge has ordered the administration to begin refunds for previous, invalidated tariffs.

• Tech & Security:

  • The U.S. Defense Department designated Anthropic (AI startup) as a supply chain risk, a rare move typically reserved for companies tied to U.S. adversaries.
  • This curtails Anthropic’s collaborations with Pentagon partners; the firm is challenging the designation in court.

• Congressional Scandal:

  • House Speaker Mike Johnson and GOP leaders are urging Rep. Tony Gonzalez to withdraw his reelection bid after news of an affair and subsequent tragedy.

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4. Apple’s Strategy: Lower Prices Amid Rising Costs

[06:55–10:59]

• Product Launches & Pricing:

  • Apple’s new iPhone 17e and MacBook Neo both start at $599—same as last year’s entry-level, and notably more affordable for education markets.
  • Reflects Apple’s attempt to regain market share, particularly in educational tech (a space dominated by cheaper Chromebooks and PCs in recent years).

• Strategic Context:

  • Rolf Winkler (WSJ Apple reporter, 08:27):
    “The 17e and this new low end Mac, they’re a play for market share... Apple used to be very dominant in education, but then the market turned to Chromebooks… $599, $499 for education—it’s much more in reach.”
  • Apple’s earlier success with affordable iPhones in Japan and the U.S. now targets the Chinese market, where a “memory crisis” is driving up costs for device makers.
  • Rolf Winkler (on memory crisis, 09:31):
    “Android phones for under $100 are no longer economic because of the cost of memory... The prices of both have skyrocketed because of AI demand... Apple is not immune, but they just have more capability to withstand it and to use it as a weapon.”

• Competitive Advantage:

  • Apple’s premium portfolio helps subsidize low-margin entry devices, while rivals must raise prices, narrowing the price gap with Apple’s entry-level phones and laptops.
  • Rolf Winkler (09:31):
    “In China, the low end of the market is going to get blown out... the mid-range will have to raise prices because they don’t have the luxury of this really great premium product portfolio… So Apple can use the memory crisis... Maybe this will make people think about switching [to iOS].”

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Notable Quotes & Memorable Moments

• Kristi Noem at Senate Hearing [02:01]:

  “Yes, sir, we went through the legal processes. Did it correct us? Yes, he did.”
  — Kristi Noem, defending her national ad campaign

• Chip Cutter on Middle East Expat Experience [03:22]:

  “Some workers actually put a mattress up against the windows of their apartment. They were worried about blast and what might happen there.”

• Rolf Winkler on Apple’s Competitive Move [09:31]:

  “Apple is not immune to that. Apple is going to also face higher costs, but they just have more capability to withstand it and to use it as a weapon.”

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Important Timestamps

• 00:33: Headline rundown and introduction of the episode’s main stories
• 00:53–02:20: Kristi Noem’s firing, replacement, and Senate hearing controversy
• 02:20–04:48: Middle East crisis—attacks, expat impacts, and flight disruptions
• 04:48–06:21: U.S. tariffs, legal challenges, and national security decisions
• 06:55–10:59: Oil market turmoil, Venezuela’s rising exports, and Apple’s pricing strategy
• 08:27–09:31: Rolf Winkler explains Apple’s entry-level device strategy and market context

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Tone and Style

The tone is direct, news-focused, and analytical, matching WSJ’s reputation for clear, succinct business journalism. Expert voices (such as Rolf Winkler and Chip Cutter) provide context and first-hand insights, blending reporting with informed commentary.

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This episode offers a concise but comprehensive look at fast-breaking political developments in Washington, a dramatic geopolitical crisis impacting workers and markets, and a sharp analysis of major tech industry maneuvers—all in around ten minutes.

Transcript

[Podcast Narrator]

What does leadership really look like? On the Power of Advice, a new podcast series from Capital Group. You'll hear from athletes, entrepreneurs and executives who've led on the field, in the boardroom and in their communities. It's not about titles, it's about impact. Discover what drives them and the advice they carry forward. Subscribe and start listening. Today, published by Capital Client Group Inc.

[Alex Osolep]

Kristi Noem is out as the secretary of Homeland Security. Plus how Apple is using lower prices on iPhones and MacBooks to go after market share and hurt its rivals.

[Rolf Winkler]

Apple is going to also face higher costs, but they just have more capability to withstand it and to use it as a weapon.

[Alex Osolep]

And US Stocks plunge as the Middle east conflict widens and the region's flow of oil remains blocked. It's Thursday, March 5th. I'm Alex Osolep for the Wall Street Journal. This is the PM edition of what's News, the top headlines and business stories that move the world today. President Trump has removed Kristi Noem as a secretary of homeland security, the first cabinet secretary to be fired by Trump in his second term. Trump is replacing her with Republican Senator Mark Wayne Mullen of Oklahoma. Trump had previously defended Noem despite widespread criticism of how she handled the immigration enforcement operation in Minneapolis that left two U.S. citizens dead. Her chaotic leadership style has come under scrutiny over the past year, and she had lost the confidence of almost all Trump senior aides. The Journal last month reported on how Noem has attempted to burnish her personal stardom. Advisors familiar with Trump's thinking said that the final straw for the president was Noem's combative hearing on Tuesday before the Senate Judiciary Committee. She was questioned by Senator John Kennedy, a Republican from Louisiana.

[Kristi Noem]

The president approved ahead of time. You spending $220 million running TV ads across the country in which you are featured prominently? Yes, sir, we went through the legal processes. Did it correct us? Yes, he did.

[Podcast Sponsor Voice]

Yes.

[Kristi Noem]

Okay.

[Alex Osolep]

Trump was upset and told senators and advisors he had not signed off on such a campaign. Trump said in a social media post today that Noem will have a role in a new security initiative he plans to announce on Saturday. Posting on social media this afternoon, Noem thanked Trump for her new appointment and said she had made historic accomplishments in her time at the Department of Homeland Security. On day six of a conflict in the Middle East, Israel and Iran continue to exchange attacks, Azerbaijan said it would respond after it was hit by Iranian drones, and Saudi Arabia said it intercepted missiles and drones. The US Closed its embassy in Kuwait, and President Trump told the news site Axios that he must be involved in picking Iran's next leader. His comments come despite top administration officials denying that the US Effort is about regime change in Iran. And across the Middle east, thousands of expat workers are navigating a conflict at their doorstep while also trying to do their jobs. Chip Cutter, who covers workplace issues for the Journal, has spoken to some.

[Chip Cutter]

So for many of these employees, this was the first time they had ever been in a situation like this. They were drawn to places like Dubai, in particular, one of the world's biggest workplaces for multinationals. And so I talked to a number of expats who said they just didn't know what to do. They're hearing loud booms overhead. Some workers actually put a mattress up against the windows of their apartment. They were worried about blast and what might happen there. It's forced a lot of families and workers to think through what are we comfortable with? Are we safe? And what do we do next?

[Alex Osolep]

Nearly 20,000Americans have returned to the US from the Middle east, and flights are resuming across the region. But flying is still tricky, with missile and drone attacks scrambling airlines plans. Chip says that's made it hard for expats to get out.

[Chip Cutter]

That's been very challenging with so many flights canceled. Companies like the professional services firm kpmg, they used various methods to get their workers out of places like Doha in Dubai and Abu Dhabi. It could be via flights, it could be via land. The CEO of KPMG in the US Told me that essentially they just wanted to do whatever was possible to keep their workers safe. I talked to some security officials who said, for example, they were advising to have a go bag ready. There's been a lot of planning, a lot of trying. Just keep in close contact with employees, knowing this is all really fluid and changing so quickly.

[Alex Osolep]

Two dozen states have filed a lawsuit challenging President Trump's new 15% global tariff. The president imposed the tariff after the Supreme Court struck down an earlier set of levies. That decision sent companies scrambling to get back the tariffs they had paid. And. And a federal judge this week ordered the administration to start refunds. Today's lawsuit was filed in the Court of International Trade. It says the new tariff is a misapplication of a 1974 trade law. It also says the tariffs violate the Constitution in the same way that Trump's earlier tariffs did. Because the lawsuit says Congress is responsible for imposing tariffs, the White House says the administration will defend the new tariffs in court. Elsewhere in Washington, the Defense Department has officially told Anthropic it is a supply chain risk, an action normally reserved for businesses from foreign adversaries. That cuts Anthropic off from partners who work with the Pentagon and could affect other companies and investors. Anthropic said last week it would challenge the designation in court, and House Speaker Mike Johnson and top Republican leaders asked Texas Representative Tony Gonzalez to drop his re election bid a day after he admitted to having an affair with an aide who later killed herself. Gonzalez this week advanced to a runoff in the Texas Republican primary. A Gonzalez spokeswoman today didn't immediately respond to a request for comment. Coming up, the Middle east oil industry is in crisis, but Venezuela's exports are on the rise and why Apple is rolling out cheaper iPhones and MacBooks. That's after the break.

[Morgan Stanley Sponsor Voice]

This episode is sponsored by Morgan Stanley's Thoughts on the Market. Today's financial markets move fast. Morgan Stanley moves faster with their daily podcast Thoughts on the Market. Thoughts on the Market covers daily trends across the global investment landscape with actionable insights from Morgan Stanley's leading economists and strategists. And with most episodes under five minutes long, staying informed has never been easier. Listen and subscribe to Thoughts on the Market wherever you get your podcasts.

[Alex Osolep]

The conflict in the Middle east has left the global oil market reeling, but more crude is coming from an unlikely source. Venezuela. Months after the ouster of Nicolas Maduro, US Imports of Venezuelan oil have climbed to their highest level in more than a year. American fuel makers are snapping up the rising supplies of Venezuela's heavy crude that their refineries were designed to process. The continuing conflict in the Middle east weighed on stock markets today. The Dow fell 1.6%, or 785 points, while the S and P and Nasdaq both fell by less than 1%. U.S. oil prices rose 8 1/2% to more than $81 a barrel, their highest price since July 2024 and the biggest one day jump since 2020. And Brent crude, the global energy benchmark, climbed above $85 a barrel. The effective closing of the Strait of Hormuz has trapped thousands of ships in the Persian Gulf force, forcing Gulf producers to slash output and Asian refiners to hunt for alternative supplies. When Apple announced new products this week, the lineup came with some changes, the return of bright colors and some lower than usual prices for the company. The starting price for its new entry level iPhone, the 17e, is $599, the same as last year's model, and the entry level MacBook Neo laptop also costs $599. Rolf Winkler covers Apple for the Journal and joins me now. Rolf, Apple is of course known for its pricey premium products. Why is Apple selling these cheaper devices now? What is its business strategy?

[Rolf Winkler]

I think they want market share. The 17e and this new low end Mac, they're a play for share. Apple used to be very dominant in education, but then over time the education market became dominated by Chromebooks, by PCs. They're much cheaper now, the MacBook, we're looking at one that's $599 and $499 for education. It's much more in reach. And what about for the iPhone, the 17e? This is following from the success of the 16e which has been a popular device for Apple in places like Japan, the U.S. now they can attack the market in China with this too, especially because right now there is a memory crisis and that's going to cause Apple's rivals to raise prices.

[Alex Osolep]

Yeah, let's talk about that memory crisis a little bit. So the costs for the components inside Apple's devices are rising. How is Apple dealing with those rising costs at the same time as it's pitching us those relatively low cost phones and computers? What happens to its profit margins?

[Rolf Winkler]

Well, on these devices they're not going to be very good. But Apple has premium devices where their profit margins are just fine. The companies that are going to be in most trouble in the smartphone market are the ones that sell low end Android. Android phones for under $100 are no longer economic because of the cost of memory, which is what you put in devices to make apps run faster, and storage, which is how you keep photos and videos on your device. The prices of both have skyrocketed because of AI demand. Servers are, these are all computers, they all need memory, they all need storage. And AI demand is taking what supply is available on the market and making it much harder for device makers to afford the stuff that goes into their devices. And Apple is not immune to that. Apple is going to also face higher costs, but they just have more capability to withstand it and to use it as a weapon. So in China for instance, the low end of the market is going to get blown out. Meanwhile, the mid range of the market is going to have to raise prices because they don't have the luxury of this really great premium product portfolio that Apple has to carry the profit load. Right, they have to raise prices. So all of a sudden the gap with an iPhone 17e is going to be smaller. So Apple can use the memory crisis. People who haven't thought about coming into the iOS universe. Maybe they'll make that switch. And you could say the same for this new low level Mac.

[Alex Osolep]

That was WSJ reporter Rolf Winkler. Thanks, Rolf.

[Rolf Winkler]

Yeah, sure, Alex.

[Alex Osolep]

And that's what's News for this Thursday afternoon. Heads up that we dropped a special bonus episode earlier today. In the latest what's News and Earnings, we look at what's dominated the media industry this earnings season. Murder drama that's in your what's News feed now. Today's show is produced by Pierre Bienname with supervising producer Tali Arbel. I'm Alex Osoleff for the Wall Street Journal while be back with a new show tomorrow morning. Thanks for listening.

[Podcast Sponsor Voice]

Support for this podcast comes from Washington Wise, an original podcast from Charles Schwab. Decisions made in Washington can affect your portfolio every day. But what policy changes should investors be watching? How might the2024 election affect your trading and investments? Washington Wise is an original podcast from Charles Schwab that unpacks the stories making news in Washington and how they may impact your finances and portfolio. Listen today at schwab.com washingtonwise. That's schwab. Com washingtonwise.