Trump’s Tariff Shake-Up. Newsom’s Surprising Pivot, Censure Fallout Escalates: AM Update 3/7

Good morning, everyone. I'm Megyn Kelly.
It's Friday, March 7th, 2025, and this is your AM Update. We just weren't treated right.
We were ripped off as a country. I've been saying it for a long time.
President Trump temporarily pausing some tariffs on Mexico, but promising the relief stops for every country come April 2nd. China publicly challenges Trump's tariff threats, but what's really happening behind the scenes? So that's easy to call out, the unfairness of that.
California Governor Gavin Newsom breaking ranks with Democrats, calling boys and girls sports unfair. Is the sudden dose of common sense a sign of larger political ambitions? Texas Congressman Al Green censured for his outburst, but that's not the end of the story.
Dozens of other Democrats now at risk of losing their committee assignments. All that and more coming up in just a moment on your AM Update.
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Code MK. President Trump pausing some tariffs on Mexico until April 2nd, when reciprocal tariffs kick in for everyone.

All Mexican goods under the U.S.-Mexico-Canada trade agreement, signed under the first Trump administration to replace NAFTA, granted reprieve. President Trump posting to Truth Social, quote, I did this as an accommodation and out of respect for President Scheinbaum.
Our relationship has been a very good one, and we are working hard together on the border, both in terms of stopping illegal aliens from entering the United States and likewise stopping fentanyl. The market's continuing to slide in reaction to the back and forth actions.
President Trump reacting to the market drop from the Oval. Well, a lot of them are globalist countries and companies that won't be doing as well because we're taking back things that have been taken from us many years ago.
We've been treated very unfairly as a country. We protect everybody.
We do everything for all these countries. And a lot of these are globalist in nature.
You know, they have if you're outside of the United States, it's going to be a little bit different. We just weren't treated right.
We were ripped off as a country. I've been saying it for a long time.
Democrats highly critical of the tariffs, arguing the economic uncertainty is harming their constituents. His tariffs on allies like Canada will raise prices on energy, lumber and cars.
Average American families can expect that these Trump tariffs are going to cost them about $2,000 annually. So considering the President ran on a platform of bringing down costs, he seems to be doing exactly the opposite.
Trump started this. This is not only going to put pain and suffering for Canadian families.
It's also going to be for Minnesota families and families all across the United States. Public support for tariffs falling along party lines.
An Economist YouGov poll showing 68 percent of Republicans support a 25 percent tariff on Mexico versus only 11 percent of Democrats. On CNBC, Commerce Secretary Howard Lutnick pressed about the seemingly chaotic thinking of the White House.
First, the tariffs were announced, then paused, then implemented, now paused again in some capacity.

Are you unsure of what President Trump wants?

I speak to him all the time. You've got to be kidding me.

The president knows exactly what he wants.

We know exactly what he wants.

And our job is to try to execute exactly what he wants.

You communicated fully with your counterparts in Mexico and Canada, for example, exactly what the president wants, I assume. Like yesterday and the day before yesterday.
Of course. Like, come on.
Mr. Lutnick telling NBC this month it's all about fentanyl.
But beginning April 2nd, attention turns to busting down trade barriers throughout the world, especially with China. At the Economic Club of New York, Treasury Secretary Scott Bessent laying out the fuller strategy with President Trump's upcoming tariff wars.
I know it's what President Trump believes. He believes three things.
One, it is a good source of revenues. Two, it protects our important industries and the employees.
And three, he's added a third leg to the stool and he uses it for negotiating. The popular argument against the Trump tariffs, even from right-wing economists, is there are tax on American consumers and increased costs on American businesses.
Economist Vance Ginn, who worked in the OMB in the first Trump administration, writing in the Courier-Journal, quote, A trade deficit is not a sign of economic weakness. It reflects strong capital inflows and consumer purchasing power.
Trying to fix it with tariffs only distorts markets and raises costs. President Trump argues that global free trade doesn't really exist because countries like China, with authoritarian governments, don't play fair.
More from Secretary Besson. We can accumulate all of the strategic mineral deposits that we need, but China still processes 85 percent, does 85 percent of the processing.
And every time a plant, every time a private sector company tries to stand up a processing facility outside of China, China drops their prices and puts them out of business. There are several in the United States that are just sitting idle because the Chinese saw what was happening and dropped it, and that's unacceptable.
The U.S. is the largest importer in the world, purchasing $4.1 trillion worth of goods and services last year from everywhere else.
Mr. Trump believes the U.S.
can leverage that massive purchasing power to force other countries to bend to his will. Americans have a lot of money to spend.
If you want access to this market, you either deal with a tariff or build your factory here. Secretary Lutnick spells it out on CNBC.
If you want to buy things from other countries and you want to bring it into America, then the price is going to rise. But if you make it here, then of course the price won't rise.
So make it here. Apple builds it all in China.
Why are they building it all in China and giving us our iPhone? Why don't they make it here? Wages are lower over there. And now there are robots who can do it.
You're going to see robotic production of iPhones and the jobs that are going to be created. These are great, high-paying jobs, and you don't need a college education to do it.
This is the recreation of tradecraft in the United States of America, and Donald Trump is on it. He's bringing it back.
Publicly, the Chinese are responding to tariff threats with bravado. A Chinese foreign ministry spokesman saying late Tuesday, if war is what the U.S.
wants, be it a tariff war, a trade war, or any other type of war, we're ready to fight to the end. The Wall Street Journal reporting behind the scenes, China's worried they can't win a trade war.
The Journal writing, quote, the vision haunting Xi is one where China finds itself cut off by trade restrictions and sanctions, suffering Soviet-style isolation, with fewer outlets for its goods and limited access to crucial technologies. China's economy depends on U.S.
demand. Last year, the U.S.
imported $439 billion worth of goods from China, one of their top sources of revenue. Losing that access would not just hurt, it could destabilize China's economic foundation, and that's what President Trump is gambling on.
Coming up, California Governor Gavin Newsom bucks his party and actually agrees that biological males playing against girls in sports is unfair. What? What's behind this sudden dose of common sense? And the censure of Texas Congressman Al Green may only be the start of the fallout resulting from his outburst at President Trump's joint address.
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The truth fits dot com code MK20. California Governor Gavin Newsom breaking ranks with fellow Democrats on the debate over transgender participation in sports.
The governor joined by conservative Turning Point USA founder Charlie Kirk in the first episode of his new podcast, weighing in on the issue. Would you do something like that? Would you say no men in female sports? Well, I think it's an issue of fairness.
I completely agree with you on that. So that's easy to call out, the unfairness of that.
The governor's policies when it comes to so-called trans children have been downright radical. Last week, every single Senate Democrat voted against advancing the Protection of Women and Girls in Sports Act, a bill banning men's participation in women's sports.
A January New York Times poll shows 70 percent of Democrats are against allowing biological males into women's leagues. House Minority Leader Hakeem Jeffries, who also voted against the bill, stumbled in his response to Governor Newsom's new stance.
I want to ask about California Governor Gavin Newsom's comments saying that Democrats were in the wrong for allowing transgender athletes to compete in female and girls sports. What is your response to that after Democrats had opposed the women and girls in sports? I haven't seen his comments.
What Democrats opposed was unleashing sexual predators

on girls throughout the United States of America.

Reaction from Governor Newsom's fellow Democrats ranging from anger to disappointment.

A joint statement from the leaders of the California Assembly and State Senate LGBTQ

Caucus saying, quote,

We woke up profoundly sickened and frustrated by these remarks.

It's not the first time in recent weeks the governor rejected far-left policies.

In February, Mr. Newsom vowed to veto a bill banning California prisons from cooperating with ICE.

The moderate pivot, leaving many suspicious that Governor Newsom is eyeing a title bump come

2028. Democrat Congressman from Texas, Al Green, officially censured by the House of Representatives

for his outburst during President Trump's joint address. Ten Democrats joining with Republicans

to reprimand the congressman in a final vote of 224 to 198. Just 10 Democrats joining with Republicans to reprimand the congressman in a final vote of 224 to 198.

Just 10 Democrats. Once the censure resolution is passed, the offending party is to stand before

the chamber while the resolution is read. A group of several dozen Dems staging a protest of their

own. Representative Al Green, be censured with public reading of this resolution by the Speaker.
The House had come to order. The House had come to order.
That cacophony drowning out Speaker Johnson, an attempt at singing the civil rights anthem, We Shall Overcome. Congressman Green standing front and center, waving his cane like a conductor.
Speaker Johnson banging the gavel multiple times, eventually forced to call a recess. In response, Republican Congressman from Tennessee, Andy Ogles, filing a resolution to remove participating Democrats from their committee assignments.
Mr. Ogles posting on X, quote, if you want to act like a child in the halls of Congress, you will be treated like a child.
The House Freedom Caucus filing a similar resolution against Congressman Green, seeking to oust him from his committee assignments as well. A vote on that is expected next week.
The speaker has not yet commented. Liberal darling Lin-Manuel Miranda pulling musical Hamilton from its upcoming run at the Kennedy Center.
The move comes in response to President Trump's dismissal of the entire board and his naming of staunch ally Rick Grinnell as its interim executive director. Mr.
Grinnell tasked with ensuring the Kennedy Center promotes values aligning with the America First vision. Mr.
Miranda, along with lead producer Jeffrey Seller, telling the New York Times the show must not go on. Mr.
Seller stating, quote, it became untenable for us to participate in an organization that had become so deeply politicized. The Kennedy Center opening in 1971 to serve as the National Cultural Center of the U.S.
In 2024, there were at least three drag events hosted in the space. In 2019, the center named Mark Bamuthi Joseph, vice president and artistic director of Social Impact.
In 2017, prior to that appointment, the Kennedy Center commissioned Mr. Joseph to write the play Pelota.
The Boston Globe called that show, quote, a poetic and impassioned meditation on race, on racism, and on the experience of immigration. Rick Grinnell, responding to Lin-Manuel Miranda on X, quote, this is a publicity stunt that will backfire.

It's clear he and Seller don't want Republicans going to their shows. Americans see you, Lin.

And that'll do it for your AM update. I'm Megan Kelly.
Join me back here for the Megan Kelly show

live on Sirius XM Triumph channel 111 at noon east on youtube.com slash Megan Kelly and on all podcast platforms. As a business owner, you wear a lot of hats.
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