WSJ What’s News – What to Expect From President Trump’s Domestic Agenda This Year

Date: January 11, 2026
Host: Alex Osola
Guests: Natalie Andrews (WSJ White House reporter), Damian Paletta (WSJ Washington coverage chief)

Episode Overview

This episode breaks down President Trump's domestic agenda as he enters the second year of his second term. It explores the political and economic landscape—with emphasis on tariffs, affordability, private sector intervention, and immigration—and offers predictions for the 2026 midterms. WSJ reporters Natalie Andrews and Damian Paletta provide insider perspectives on voter sentiment, administration priorities, and political dynamics ahead.

Key Discussion Points and Insights

Mood in the White House and Washington

Timestamp: [01:40]-[01:59]

• White House Confidence:
  • Trump and his inner circle feel they had “a great year” in 2025, heading into 2026 with optimism despite growing concerns about affordability.
    • “They’re coming off of the first year and then looking forward to concerns that voters are having about affordability and how they confront that.” – Natalie Andrews [01:40]
• Broad National Sentiment:
  • Trump’s second-term impact is undeniable—whether popular or not, his agenda has made waves, especially on tax, tariffs, and immigration.
    • “He accomplished a tremendous amount… Whether voters supported it or didn't, no one could argue that he didn't have a huge impact.” – Damian Paletta [01:59]

The 2026 Midterm Outlook

Timestamp: [01:59]-[02:53]

• Trump’s direct influence looms, but historically he struggles to inspire voters in midterms when not personally on the ballot.
  • “He’s not typically a great midterm election campaigner because he’s not on the ballot… It’s harder for him to sell other people than it is for himself.” – Damian Paletta [02:20]
• Poor current polling means 2026 could be a test of whether his base holds or if tactics have alienated key independent voters.

Tariff Policy and Economic Pressures

Timestamp: [02:53]-[03:38]

• Tariffs remain central to Trump’s economic approach, despite legal constraints.
  • “He says his favorite word in English language is tariffs. I don’t expect that to change in 2026.” – Damian Paletta [03:10]
• The lingering question: if prices for consumers keep rising, will Trump feel political pressure to scale them back?
• There’s an undercurrent of risk for Republicans if affordability worsens by November.

Affordability & Voter Concerns

Timestamp: [03:38]-[04:50]

• Lowering prices is proving stubbornly difficult—“like putting the toothpaste back in the tube.”
  • “He believes if there's lower rates at the Fed, then that'll bring down the price of homes and other stuff. But... it's really difficult to get prices down everywhere.” – Damian Paletta [03:51]
• Voters blame the party in power for high costs; Democrats likely to intensify their focus on Trump’s tariffs, rising costs, and potentially higher health care costs.
  • “You don’t always deserve the credit you get for your wins and your losses, but Democrats are definitely going to make a lot of noise about it this year.” – Natalie Andrews [04:20]

Trump’s Relationship with the Private Sector

Timestamp: [05:46]-[06:53]

• The administration has taken a more hands-on approach: influencing corporate deals, bringing manufacturing home, and launching the “Trump Rx” direct-to-consumer drugs program.
  • “If Donald Trump sees a deal, it goes to, like, his inner psyche to want to involve himself on that.” – Natalie Andrews [06:19]
• There’s a watchful eye on whether the business community will eventually push back against growing White House involvement.
  • “The business community… felt it’s worth giving up some equity or a pound of flesh to get his blessing. But… is there a point when the White House goes too far?” – Damian Paletta [06:19]

Immigration Policy and Controversies

Timestamp: [06:53]-[07:54]

• Trump’s aggressive tactics have intensified, both at the border and with domestic deportations.
  • “So far, he’s been unapologetic and they’ve doubled down… even in the face of pushback from Democratic mayors and governors.” – Damian Paletta [07:10]
• Recent incidents (e.g., the shooting of Renee Nicole Goode in Minneapolis) spark public outcry and may influence Congressional funding for immigration enforcement.

The Venezuela Factor: Immigration and Politics

Timestamp: [07:54]-[08:49]

• The U.S.-led ouster of Venezuelan President Maduro might affect migration flows; chaos could mean more arrivals in the U.S., but a stabilized Venezuela may entice migrants to return home.
  • “If what President Trump has done stabilizes the country, creates a better economy, it might make a much more attractive place for Venezuelans…” – Damian Paletta [08:06]
• The disposition of Venezuelan oil resources is likely to be a policy flashpoint in 2026.

Predictions & Political Theater: The 2026 “Trump Bingo Card”

Timestamp: [08:49]-[10:17]

• Endorsements and the Election:

  • Will Trump lean into influencing the midterm races? Does he begin to hint at a possible successor or even joke more about a third term?
    • “Does he want to open it up completely for 2028, or does he try to run for a third term, as he sometimes jokes about?” – Natalie Andrews [08:58]

• America’s 250th Birthday:

  • The nation’s semiquincentennial is forecast to become a grand, distraction-filled, highly “theatrical” celebration, with Trump leveraging the mood.
    • “There’s going to be parades and parties… and Trump’s going to make the most of it in a way that only he can. It’s going to give him a huge advantage because Americans love to have fun… I would anticipate a really theatrical, probably slightly zany 2026 for Americans.” – Damian Paletta [09:36]

Notable Quotes & Memorable Moments

• On tariffs’ persistence:
  “He says his favorite word in English language is tariffs. I don’t expect that to change in 2026.”
  — Damian Paletta [03:10]

• On the challenge of lowering prices:
  “Making prices lower can feel like putting the toothpaste back in the tube.”
  — Damian Paletta [03:51]

• On political blame:
  “The party that is in power, voters tend to blame them for anything they feel is wrong.”
  — Natalie Andrews [04:20]

• On spectacle in 2026:
  “It’s going to be a really theatrical, probably slightly zany 2026 for Americans.”
  — Damian Paletta [09:36]

Timestamps for Important Segments

• [01:40] White House mood and affordability concerns
• [01:59] Presidential impact and 2026 midterm stakes
• [03:10] Trump's continued focus on tariffs
• [03:51] The struggle to reduce prices and voter frustration
• [05:46] Administration’s deals with the private sector; “Trump Rx” coming in 2026
• [06:53] Aggressive immigration actions and controversy
• [07:54] Venezuela intervention’s impact on immigration and resources
• [08:58] Speculating on Trump’s moves, endorsements, and the 250th anniversary
• [09:36] The anticipated spectacle and political theater of 2026

Summary Takeaway

2026 promises continued turbulence and spectacle in American domestic politics. With Trump’s policies reshaping tariffs, corporate involvement, and immigration, major test points lie ahead—both economically and electorally. Voters’ concerns about affordability and national mood around the country’s 250th birthday will shape not only Trump’s legacy but also the balance of power after the midterms. Expect a year of political drama, economic maneuvers, and relentless news cycles.