What we’re watching: Trump steps up tariff threats

Here’s what we’re watching in transition world today:

 ????️ What we're watching

• Trump vowed Monday to impose tariffs of 25 percent on both Mexico and Canada on his first day in office as part of an effort to crack down on migration and the flow of fentanyl into the U.S. He did not specify how he would impose the measure, though he could theoretically tap the International Emergency Economic Powers Act.
• Trump is considering nominating Jim O’Neill, an associate of billionaire investor and early Trump backer Peter Thiel, as HHS deputy secretary.
• Progressive Democrats are planning to deploy a new strategy against Trump during his second term: take Trump at his word on populist, working-class policy proposals — or at least pretend to.

????What’s up with the nominees?

• Hedge fund executive Scott Bessent will be Trump’s primary conduit to Wall Street investors who are skeptical of the president-elect’s punishing trade agenda. Inevitably, his Treasury secretary will have to shoulder the conflicts and contradictions that arise from that agenda.

⏱️What Cabinet secretary announcements are we still waiting on?

• None — Trump wrapped up his Cabinet picks over the weekend.