Axios AM

February 21, 2025
๐ป Happy Friday! Smart Brevityโข count: 1,466 words ... 5ยฝ mins. Thanks to Noah Bressner for orchestrating. Copy edited by Bryan McBournie.
๐ฌ Situational awareness: President Trump is preparing to fire the U.S. Postal Service governing board and place the agency under the Commerce Department's control, The Washington Post reports (gift link).
1 big thing: How Zelensky set off Trump
Ukraine President Volodymyr Zelensky angered President Trump so much during the peace talks with Russia that Trump was on the verge of withdrawing American military support from Ukraine, three U.S. officials familiar with the discussions tell Axios' Marc Caputo.
- Why it matters: The conflict between Trump and Zelensky escalated into a war of words between the two. It scared European allies who worry about emboldening Russian President Vladimir Putin and rewarding his brutal expansionism.
๐ผ๏ธ The big picture: Trump and Zelensky have had an awkward relationship ever since Trump was impeached in 2019 for trying to leverage U.S. military aid to the war-torn country, in return for Zelensky having Joe Biden's son investigated over his sinecure with a Ukrainian gas company.
- Today, Trump is finding it more difficult than expected to make good on his pledge to quickly implement a deal to end the Russia-Ukraine war.
๐ Six administration officials tell Axios that during the past nine days, there were five incidents that angered Trump, Vice President Vance, Secretary of State Marco Rubio and National Security Advisor Mike Waltz.
- Feb. 12: Treasury Secretary Scott Bessent met Zelensky in Kyiv to offer a proposal that would give the U.S. access to Ukrainian mineral rights in return for de facto U.S. protection. Trump later told reporters Zelensky was "rude" and delayed his meeting with Bessent because he slept in.
- Feb. 14: At the Munich Security Conference, Vance and Rubio met Zelensky to get his approval for the mineral rights deal. But Zelensky surprised the Americans by saying he didn't have the authority to approve it without parliament, the officials said.
- Feb. 15: Zelensky publicly rejected the offer at the conference. White House sources noted that his remarks to reporters โ that the deal was "not in the interests of a sovereign Ukraine" โ were markedly different from more positive-sounding comments he'd made on X the day before.
- Feb. 18: As Rubio, Waltz and presidential envoy Steve Witkoff sat down with Russian negotiators in Saudi Arabia to talk peace, Zelensky criticized the meeting for occurring without Ukraine at the table. An angry Trump lashed out at Zelensky, falsely suggesting Zelensky had started the war with Russia and had an approval rating of only 4%.
- Feb. 19: Zelensky fired back, saying the U.S. president "lives in a disinformation space." Trump ratcheted up the pressure by posting on Truth Social that Zelensky, a former actor, was a "modestly successful comedian" who became a "dictator without elections." Trump has refused to criticize Putin as a dictator.
๐ Between the lines: In the White House view, Zelensky grew too accustomed to former President Biden's open-ended support for Ukraine's war effort, the full-throated backing of NATO countries and the positive press that went with it.
- "Zelensky is an actor who committed a common mistake of theater kids: He started to think he's the character he plays on TV," a White House official involved in the talks said. "Yes, he has been brave and stood up to Russia. But he would be six feet under if it wasn't for the millions we spent, and he needs to exit stage right with all the drama."
Another official involved in the negotiations said: "We created a monster with Zelensky ... And these Trump-deranged Europeans who won't send troops are giving him terrible advice."
2. ๐บ๐ฆ Scoop: Trump offers "improved" mineral deal

The Trump administration has given Ukraine an "improved" draft for a minerals agreement between the countries after President Volodymyr Zelensky infuriated President Trump by rejecting his initial offer, Axios' Barak Ravid and Marc Caputo report.
- Why it matters: Sources on both sides say a deal is looking more likely.
The intrigue: A source said several of Zelensky's aides have encouraged him to sign the updated proposal โ to avoid a further clash with Trump, and allow the U.S. president to justify U.S. support for Ukraine.
Zoom out: Ukraine sits on significant reserves of rare earth minerals critical to the world's most cutting-edge technologies.
- In total, the value of the minerals could run into the trillions of dollars.
3. ๐๏ธ Senate's all-nighter

๐๏ธ Breaking: At 4:45 a.m., after an all-night "vote-a-rama," the Senate voted 52-48 to pass a $340 billion budget framework โ a step toward unleashing money for President Trump's agenda, including border security.
- All Dems voted against. Sen. Rand Paul (R-Ky.) was the lone GOP "nay."
Senate Democratic Leader Chuck Schumer took to the floor after the parliamentary marathon and said Republicans "were forced to go on record and defend their plans to cut taxes for Donald Trump's billionaire friends."
- "What happened tonight was only the beginning," Schumer added. "This debate is gonna go on for weeks, and maybe months. Democrats will be ready to come back and do this over and over again."
4. ๐ธ 1,000 words

Elon Musk waves a chainsaw he received from Argentine President Javier Milei at CPAC yesterday outside D.C. in Oxon Hill, Md.
- "This is the chainsaw for bureaucracy," Musk said.
Watch: Full Musk CPAC interview.
5. ๐ Pharma's big RFK overture
The pharmaceutical industry is framing itself as a key partner for President Trump and HHS Secretary Robert F. Kennedy Jr. in their quest to alleviate America's chronic disease burden.
- The problem: Kennedy doesn't seem to be buying it, Axios Future of Health author Caitlin Owens writes.
Why it matters: One of America's most powerful industries is now in the position of convincing critics that its products aren't just safe, but crucial to solving the country's diciest health problems.
๐ฌ Zoom in: Pharmaceutical leaders kicked off Kennedy's tenure at the helm of HHS with declarations of optimism and mutual goal-sharing.
- "We have a disruptor-in-chief in President Trump and a new HHS secretary โ both of which are committed to overturning the status quo," PhRMA CEO Steve Ubl said in his remarks at the industry group's forum this week.
- "We embrace disruption because we are disruptors."
Between the lines: Speakers at the forum made it clear that former President Biden was bad for the industry, while Trump has the potential to be very good.
- "I truly believe that the opportunities truly outweigh the risks," Pfizer CEO Albert Bourla told the crowd.
6. ๐ฐ Trump's tricky budget math
President Trump wants to use tariffs to abolish the IRS, revive manufacturing, stop the flow of illegal drugs โ and now, balance the budget, too, Axios' Ben Berkowitz writes.
- Why it matters: It's a big lift for a revenue stream that barely exists.
๐งฎ By the numbers: In fiscal 2024, the U.S. government's budget deficit was $1.83 trillion.
- Elon Musk's DOGE is going for $1 trillion in government cuts, though the early effort is running into some math problems.
- If DOGE can get there, there would still need to be $800 billion-plus in incremental revenue to cover the rest.
๐ญ Zoom in: Trump has so far announced โ then called off, paused, or set for some future date โ tariffs on Colombia, Canada, Mexico, steel imports, aluminum imports, countries with tariffs of their own, countries with VAT tax systems, and imports of semiconductors, cars, pharmaceuticals and lumber.
- A 10% tariff on China did go into effect, however.
7. ๐ช Crypto's regulation wish list
The crypto industry is ready and willing to follow the rules of the road โ once Congress writes them, Coinbase chief policy officer Faryar Shirzad declares in a policy manifesto, "Why Congress Must Act: Clarity for Crypto and Consumer Protections."
- Why it matters: "The risks of inaction are clear. Without regulatory clarity, the U.S. will continue to lose its edge in blockchain innovation," Shirzad says.
Between the lines: Coinbase, America's leading cryptocurrency exchange, has been at the policy vanguard for the nascent sector, Axios Crypto author Brady Dale notes.
- "This is about more than regulating a new technology โ it's about securing America's future in a rapidly evolving digital landscape," Shirzad writes, twice using the term "clear pathways."
๐ก "Keep It Simple and Intuitive," Shirzad writes. "Incentivize innovation ... [P]rovide clarity while protecting consumers."
8. ๐ 1 for the road: Canada's revenge

Canadian star Connor McDavid scored a game-winning goal in overtime to give his country a 3-2 victory over the U.S. at the 4 Nations Face-Off hockey championship in Boston last night.
- Why it matters: High tensions between the two countries transformed a tune-up for next year's Olympics into a geopolitical brawl over anthems and annexation.

๐จ๐ฆ Zoom out: The already ripe rivalry took on an added intensity following President Trump's tariff threats and talk of making Canada the 51st U.S. state.
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