Trump Plans to Deploy the National Guard to D.C.

Summary

WSJ What’s News: Trump Plans to Deploy the National Guard to D.C.
Released on August 11, 2025

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1. President Trump's Deployment of the National Guard to Washington, D.C.

Overview:
In an unprecedented move, President Donald Trump announced the deployment of approximately 800 National Guard troops to Washington, D.C., with the intent to take over the city's police department. This decision aims to address rising concerns over crime and restore order in the nation’s capital.

Key Points:

• Historic Action: President Trump declared the operation as a "historic action" to rescue Washington, D.C., from "crime, bloodshed, bedlam and squalor" ([01:12]).
• Future Implications: He hinted at the possibility of similar actions in other major U.S. cities if deemed necessary.
• Administration Support: The announcement was made during a White House news conference attended by Defense Secretary Pete Hegseth, Attorney General Pam Bondi, and other senior officials.
• Local Response: D.C. Mayor Muriel Bowser criticized the move as unsettling and unprecedented, opposing the use of the National Guard for policing purposes.
• Crime Statistics: Contrary to the administration’s claims, Justice Department data indicated a 35% reduction in violent crime in Washington over the past year, marking the lowest rates in over three decades.

Notable Quotes:

• Donald Trump ([01:12]): “I'm announcing a historic action to rescue our nation's capital from crime, bloodshed, bedlam and squalor and worse. This is Liberation Day in D.C. and we're going to take our capital back.”

2. Ford’s $2 Billion Investment in Electric Vehicles (EVs)

Overview:
Ford Motors unveiled plans to invest $2 billion in overhauling a factory in Louisville, Kentucky, aiming to produce affordable high-tech electric vehicles. This strategic move is a direct response to the increasing market competition from Chinese EV manufacturers.

Key Points:

• New EV Line: The investment will establish a new assembly line, with the first model slated to be a $30,000 electric pickup truck, targeted for a 2027 launch.
• Industry Challenge: Ford seeks to counter the surge of cost-effective Chinese electric vehicles capturing significant global market share.
• Executive Insights: Ford CEO Jim Farley emphasized the importance of balancing current profitability from traditional vehicles with long-term EV investments.
• Financial Risks: The company faces substantial risks, including previous EV-related losses totaling $5 billion and anticipates further financial challenges in the coming year.

Notable Quotes:

• Sharon Turlip, WSJ Reporter ([03:09]): “Ford says they're overhauling both the way this truck is built and the way it's made, with the goal of making an electric truck that has a lot of features, has a lot of technology, is nice to drive, but also is affordable in the realm of EVs.”
• Sharon Turlip ([03:45]): “If you talk to Ford, if you talk to many other auto executives, they'll say EVs eventually will be the future. And the issue that they had with the regulations is that they are not making EVs profitable right now.”

3. U.S. Market Performance and Tariff Developments

Overview:
U.S. stock markets experienced slight declines, influenced by President Trump’s policy decisions regarding tariffs and gold pricing. Additionally, an executive order was signed to extend higher tariffs on China, signaling ongoing trade tensions.

Key Points:

• Market Declines: The S&P 500 dipped by approximately 0.25%, the Nasdaq fell by 0.3%, and the Dow decreased by about 0.5%.
• Gold Prices: Following Trump’s announcement of no tariffs on gold bars, gold prices saw a downturn.
• Tariff Extension: An executive order extended the deadline for higher tariffs on Chinese goods until November 9th, postponing a previously scheduled increase.
• Negotiations: The extension allows for potential further negotiations and a meeting between President Trump and Chinese leader Xi Jinping later in the year.

Notable Quotes:

• Alex Osoloff ([04:59]): “President Trump has signed an executive order extending the deadline for higher tariffs on China until November 9th.”

4. Impact of Aluminum Tariffs on U.S. Industries

Overview:
The imposition of increased tariffs on aluminum imports has significantly affected U.S. industries reliant on the metal. Companies are exploring alternative strategies, including enhanced recycling efforts, to mitigate the additional costs.

Key Points:

• Tariff Increase: In June, President Trump raised aluminum import tariffs from 25% to 50%, impacting beverage, automotive, and manufacturing sectors.
• Industry Response: Companies like Molson Coors anticipate paying an added premium of $40 to $55 million this year due to the tariffs.
• Supply Challenges: With U.S. primary aluminum production minimal and Canadian suppliers facing increased tariffs, industries are seeking alternative solutions.
• Recycling Initiative: Experts suggest that increased recycling of aluminum cans could reduce the need for imports by 25-50%, offering a cost-effective alternative to primary production.

Notable Quotes:

• Ryan December, WSJ Reporter ([07:04]): “One of the biggest suppliers of aluminum to the US is Canada. And the reason for that is Quebec has these massive hydro dams, very cheap power.”
• Ryan December ([08:13]): “Aluminum executives and analysts say we should use the metal that's already here in our trash cans. When you recycle aluminum, you make something called secondary aluminum and it's a lot cheaper because you're not causing a chemical reaction to create the metal.”

5. Tariffs on Semiconductor Chips and Their Implications

Overview:
President Trump’s proposed tariffs on semiconductor chips could disrupt the global electronics trade. However, industry experts express skepticism about the tariffs effectively incentivizing domestic chip manufacturing.

Key Points:

• Tariff Plan: Trump announced a 100% tariff on semiconductor chips, with exemptions for companies investing significantly in U.S. operations.
• Industry Reactions: Large chip manufacturers, already heavily invested in the U.S., may qualify for exemptions, reducing the intended impact of the tariffs.
• Economic Impact: The tariffs might encourage companies to import chips tariff-free from regions outside the U.S., potentially undermining the goal of boosting domestic chip production.
• Market Discrepancy: The stated intent of the tariffs contrasts with their actual effect, as outlined by industry experts.

Notable Quotes:

• Asa Fitch, WSJ Street Columnist ([09:22]): “When Trump laid out this 100% chip tariff plan last week, he said that there would be exemptions for companies that invest a lot of money in the U.S. now, all the large chip makers have already invested tons of money in the US.”
• Asa Fitch ([09:22]): “There's a little bit of a mismatch of the stated intent of these tariffs and the actual effect of them, at least as they appear so far to have been outlined.”

6. Explosion at Clairton Coke Works Steel Facility

Overview:
A tragic explosion occurred at the Clairton Coke Works in Pennsylvania, resulting in at least one fatality and numerous injuries. Emergency responders were swift in their actions, and safety protocols were enacted to protect nearby residents.

Key Points:

• Incident Details: The explosion took place about 15 miles southeast of Pittsburgh, with gray smoke visible from the site.
• Casualties: One person was confirmed dead, and dozens were injured. Two individuals remained unaccounted for at the time of reporting.
• Safety Measures: Residents within a one-mile radius were advised to stay indoors and secure their windows and doors.
• Company Response: U.S. Steel emphasized that employee and environmental safety remained their top priorities.

7. Judicial Decision on Ghislaine Maxwell Investigation

Overview:
A federal judge denied the Justice Department’s request to release grand jury materials related to the investigation of Jeffrey Epstein associate Ghislaine Maxwell, maintaining the confidentiality of the proceedings.

Key Points:

• Court Ruling: The judge determined that the DOJ did not meet the stringent criteria required to make the grand jury materials public.
• Department’s Stance: The Justice Department did not provide immediate comments following the decision.
• Legal Implications: The denial preserves the secrecy of the ongoing investigation, limiting public and media access to detailed information.

8. Additional Content: What’s News in Earnings

Overview:
A bonus episode titled "What's News in Earnings" delves into the earnings reports of various asset managers. The discussion focuses on the underperformance of their shares compared to the broader market and explores potential factors that could reverse this trend.

Key Points:

• Asset Managers’ Performance: Recent earnings reports indicate that several asset management firms have lagged behind overall market growth.
• Market Analysis: The episode examines reasons behind the underperformance, including market volatility, investment strategies, and economic factors.
• Future Outlook: Experts discuss what could rejuvenate the asset managers' shares, such as strategic shifts, innovation in services, or changes in market conditions.

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Produced by:
Charlotte Gartenberg (Producer)
Supervising Producer: Michael Cosmides

For more detailed coverage and future updates, tune in to tomorrow’s episode of WSJ What’s News.

Transcript

[Alex Osoloff]

President Trump plans to deploy the national guard in Washington, D.C. and take over the city's police department. Plus, how recycling your beer can may help keep auto prices down and beat aluminum tariffs.

[Ryan December]

If we started recycling like all those cans we throw away, the industry folks think that we could reduce imports by 25 to 50%.

[Alex Osoloff]

And at least one person has been killed and dozens injured after an explosion at a U.S. steel plant in Pennsylvan. Alex It's Monday, August 11th. I'm Alex Osoloff 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 said today that he would deploy National Guard troops to Washington, D.C. and place the city's police department under federal control, launching an unprecedented effort to take charge of the nation's capital. During a news conference at the White House, where he was flanked by Defense Secretary Pete Hegseth, Attorney General Pam Bondi, and other senior administration officials, the president compared the homicide rate in Washington with capitals around the world, including Bogota, Colombia.

[Donald Trump]

I'm announcing a historic action to rescue our nation's capital from crime, bloodshed, bedlam and squalor and worse. This is Liberation Day in D.C. and we're going to take our capital back. We're taking it back.

[Alex Osoloff]

Trump said roughly 800 D.C. national Guard troops would be deployed to the city. He added that he would call in active duty military troops if needed, and suggested he might attempt to take similar action in other U.S. cities. D.C. mayor Muriel Bowser called Trump's decision to exert control over the city unsettling and unprecedented, and she objected to the use of the National Guard in the city. Justice Department data show that violent crime in Washington was down 35% last year from 2023, the lowest in more than 30 years. The data showed a decline in homicides, robberies, armed carjackings and assaults with a dangerous weapon. Our president has never asserted emergency power over the D.C. police before, but Congress has occasionally intervened in D.C. affairs. A city government financial crisis prompted Congress to create a financial oversight board in 1995, giving it authority to override decisions by local officials. The board ceased operation in 2001 after the city had several years of balanced budgets. Ford Motors says it has an answer to the cheap Chinese electric vehicles that are gobbling up market share around the world. The company announced today that it plans to spend $2 billion to overhaul a factory in Louisville, Kentucky, to build a new line of affordable high tech EVs, one of the first models the company is planning to roll off that assembly line is a $30,000 electric pickup for US consumers, which it intends to launch in 2027. For more, I'm joined now by WSJ reporter Sharon Turlip, who is on her way back from visiting that Ford factory in Louisville. So, Sharon, how is this new EV pickup expected to challenge those Chinese competitors?

[Sharon Turlip]

Ford says they're overhauling both the way this truck is built and, and the way it's made, with the goal of making an electric truck that has a lot of features, has a lot of technology, is nice to drive, but also is affordable in the realm of EVs.

[Alex Osoloff]

Sharon, we had you on the show last week talking about how the Trump administration is really rolling back some of the regulations against internal combustion engines and how Detroit is, like, really loving it. So. So how does that fit in with this priority of having these affordable EVs?

[Sharon Turlip]

If you talk to Ford, if you talk to many other auto executives, they'll say EVs eventually will be the future. And the issue that they had with the regulations is that they are not making EVs profitable right now. They're not something consumers are willing to pay for right now. So right now, they're able to make a lot of money on big trucks and SUVs. But it's a balancing act because they also believe that down the road, and we already are seeing this happen in markets all over the world outside of the US EVs are becoming a bigger and bigger part of what people are driving.

[Alex Osoloff]

So how much of a risk is this really for Ford to take this on?

[Sharon Turlip]

It's a big risk. The CEO, Jim Farley, underscored that. I actually asked him what the biggest risk was, and he kind of ticked off the whole list of things that they're doing differently in this vehicles in terms of things that could possibly go wrong, because a lot of these things are new for Ford, and it's a big investment. They're spending $2 billion on this factory. They are spending $3 billion to develop the battery that will power this line of vehicles. Ford lost $5 billion last year on EVs, and they've said they expect to lose even more than that this year. So already EVs have driven big losses, and so they need to turn it around.

[Alex Osoloff]

That was WSJ reporter Sharon. US markets closed slightly lower today. The S&P 500 slipped about a quarter of a percent. The Nasdaq lost 0.3%, and the Dow fell by about half a percent. Gold prices were down following Trump's declaration that there would be no tariff on gold bars. President Trump has signed an executive order extending the deadline for higher tariffs on China until November 9th. The that's according to a White House official. Tariffs on China were set to rise tomorrow, but Trump's order extends the deadline for 90 days, allowing time for further negotiations and a potential meeting between the US President and Chinese leader Xi Jinping this fall. Coming up, how the US Aluminum industry is looking to reduce its reliance on imports. That's after the break. In June, President Trump raised the tariff on aluminum imports from 25% to 50%. It's already walloping beverage, auto and manufacturing companies. And though US primary aluminum production has dwindled over the past 25 years, companies are finding other creative ways to avoid the additional cost. Ryan December covers commodities for the Journal and joins me now. Ryan, how are the companies that use aluminum affected by this?

[Ryan December]

So basically they're going to have to pay a lot more if they use primary aluminum. So far we haven't seen big headline increases and it'll probably vary by industry. Analysts say that like things like RVs and electric cars that use a lot of aluminum, proportionally those probably you'll see more costs passed on. You might see prices rise to the point where the companies are worried about demand destruction. It's probably not going to affect much the price of like your six pack, but we'll see. Molson Coors came out and said they're going to be paying somewhere between 40 and 55 million this year in the added premium for US aluminum.

[Alex Osoloff]

Where would these companies get aluminum before this tariff became a problem?

[Ryan December]

One of the biggest suppliers of aluminum to the US Is Canada. And the reason for that is Quebec has these massive hydro dams, very cheap power. The US Was long a big producer of aluminum. Basically, commercial production began here. The US dominated for over 100 years. Around 2000, though, utilities stopped providing cheap power. So the aluminum companies focused on producing primary aluminum, meaning from refined bauxite. So Canada was the answer. Of course, that relationship is frayed very seriously in this administration. And the Canadian production is being tariffed, so there's not a ton of US Production. In fact, the US Produces about as much primary aluminum by weight as the amount of aluminum cans that we throw away into landfills every year.

[Alex Osoloff]

So if the US Used to have this industry, why not just bring it back?

[Ryan December]

Well, the smelters, they're there, but the power costs too much. About 40% of the cost of making primary aluminum is electricity. There's also a lot of natural gas involved. So it just doesn't work at that price.

[Alex Osoloff]

So if primary production isn't going to get the industry to cover the needs of these companies, what is the answer here?

[Ryan December]

So aluminum executives and analysts say we should use the metal that's already here in our trash cans. When you recycle aluminum, you make something called secondary aluminum and it's a lot cheaper because you're not causing a chemical reaction to create the metal. It's more of a sorting and melting situation. So it uses a lot less electricity. It's feasible. The plants can be built in a couple years as opposed to five or six or more. The prices are like in the hundred of millions as opposed to several billion dollars for a smelter. So they say that's really the way to go. You need primary aluminum production and the purity involved for a few things, some military, some high tech applications. But for your typical soda can or auto part, you can use that making a recycled aluminum.

[Alex Osoloff]

That was Wall Street Journal reporter Ryan December. Thanks, Ryan.

[Ryan December]

Thank you.

[Alex Osoloff]

President Trump's tariffs on chips could disrupt the global electronics trade and send prices of all kinds of goods up upward. One thing it appears unlikely to do, bring advanced chipmaking roaring back in the U.S. wSJ heard on the street columnist Asa Fitch told our Tech News Briefing podcast why that's the case.

[Asa Fitch]

When Trump laid out this 100% chip tariff plan last week, he said that there would be exemptions for companies that invest a lot of Money in the U.S. now, all the large chip makers have already invested tons of money in the US So they've already passed that bar. And that means that they likely, based on the language that Trump used, will get exemptions. So there's no further incentive for these chip companies to build upon their existing manufacturing operations in the US Based on these tariffs, because the tariffs are gone. If anything, these companies are more incentivized to import stuff tariff free from other parts of the world where it's cheaper to produce chips than to make them here in the U.S. so there's a little bit of a mismatch of the stated intent of these tariffs and the actual effect of them, at least as they appear so far to have been outlined. And granted, that is kind of vague.

[Alex Osoloff]

To hear more from Asa, listen to tomorrow's episode of Tech News Briefing. An explosion at a U.S. steel facility in Pennsylvania this morning killed at least one person and injured dozens more. State officials and emergency workers were responding to Clairton Coke Works in Clairton, Pennsylvania, roughly 15 miles southeast of Pittsburgh. Footage from local media appeared to show a pillar of gray smoke rising from the site of a significant blast. County officials said that two people were unaccounted for. In addition to the person confirmed dead, residents living within one mile of the plant were advised by local health officials to remain indoors and close all windows and doors, quote, out of an abundance of caution. U.S. steel said the company's top priority is employee and environmental safety. And finally, a federal judge has denied the Justice Department's bid to release grand jury materials from its investigation into Jeffrey Epstein associate Ghislaine Maxwell, saying the request didn't meet the high bar to make the secret materials public. The department and a lawyer for Maxwell didn't immediately respond to requests for comment. And that's what's news for this Monday afternoon. In case you missed it, we've got a bonus episode out today in what's News in Earnings. We're looking at the earnings reports of some asset managers and discuss why their shares have lagged the broader market and what could reverse that. You'll find it in your what's News feed. Just before this podcast, Today's show was produced by Charlotte Gartenberg with supervising producer Michael Cosmides. I'm Alex Osola for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.