The Trump administration is engaged in open hostilities with the European Union, turning long-simmering feuds over free speech, Ukraine and mass migration into official U.S. policy, Axios' Zachary Basu writes.

• Why it matters: The EU's $140 million fine against Elon Musk's X platform lit the fuse on a conflict the Trump administration was already primed for — and which it formalized in a new National Security Strategy that casts Europe as a geopolitical villain.

"They're destroying their countries," Trump told Politico, slamming European nations as "decaying" and "weak."

• The newest flashpoint comes as the U.S. and its European allies are also sharply divided over Ukraine and the future of European security.

🔎 Zoom in: The EU penalized X on Friday after regulators found the platform misled users, obscured key advertising information and blocked researchers from accessing public data.

• A furious Musk accused the EU of stifling free speech through "bureaucratic tyranny" — rallying far-right leaders and millions of followers behind the hashtag #AbolishTheEU.

Senior U.S. officials piled on, with Secretary of State Marco Rubio calling the fine "an attack on all American tech platforms and the American people."

• Vice President Vance, the administration's most outspoken euroskeptic, called the fine "garbage" and the product of X's refusal to accept EU "censorship."
• Sen. Ted Cruz (R-Texas) urged Trump to impose sanctions on the EU "until this travesty is reversed" — an extraordinary escalation typically reserved for U.S. adversaries.

🖼️ The big picture: The fight over X stems from the worldview formalized in Trump's National Security Strategy, which accuses the EU of "regulatory suffocation" and "subversion of democratic processes."

• At the heart of the allegations is mass migration: The White House argues that European elites have unleashed demographic change through open borders.
• Musk and Vance — who previewed many of these arguments in a blistering speech at the Munich Security Conference — have championed far-right parties in Europe, including Germany's AfD.

Such interference in domestic politics is now codified in Trump's National Security Strategy, which calls for "cultivating resistance" within EU member states as a remedy to Europe's "civilizational erasure."

• "It is a declaration of political war on the EU. [Trump] wants a white Europe divided into nations, subordinate to his demands and voting preferences," said former EU top diplomat Josep Borrell.

👀 Between the lines: Trump's strategy also calls into question whether some EU allies can remain reliable NATO members due to demographic change — and declares an end to "the perception" of NATO as a "perpetually expanding alliance."

• Russia has welcomed the transatlantic rift. Kremlin press secretary Dmitry Peskov told reporters Sunday that "the adjustments we are seeing ... are largely consistent with our vision."

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In just the last few weeks, the Trump administration has threatened to expand the travel ban list, paused all asylum decisions and signaled it will reopen Biden-era immigration cases.

• Why it matters: Any of these changes would strain the system. Doing them all at once could overwhelm it, Axios' Brittany Gibson writes.

Policy changes announced after the National Guard shooting near the White House last month are expected to grow the backlog at U.S. Citizenship and Immigration Services, the office that handles legal migration.

• Green cards and asylum claims will be re-reviewed, slowing processing for everyone, not just the targeted nationalities.
• Overall, USCIS faces 11 million pending cases across all forms of immigration status, from asylum and green cards to work visas and family-based applications.

🔭 Zoom in: The impact has been immediate for people from the 19 countries on the travel ban list, including Afghanistan, Somalia, Venezuela and Iran.

• The travel ban, when unveiled this summer, shut down travel for those passport holders to the U.S.

But now that list is being used against immigrants already here applying for visas, work authorization or permanent legal status.

• Some saw interviews with USCIS officers canceled. Others have been pulled out of citizenship ceremonies.

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Small-business owners were excited for Trump 2.0. Now, tariffs and inflation are causing headaches and eroding optimism, Axios' Emily Peck writes from new MetLife and the Chamber of Commerce data out this morning.

• Why it matters: Main Street's pain drags down the entire economy.

🧮 By the numbers: 45% of small-business owners cited inflation as their biggest challenge in the Chamber's survey, conducted in October during the government shutdown.

• They're raising prices just to keep up: 58% said they expect to raise prices this holiday season, but 52% also expect lower revenue.

The other side: That's better than in 2022, when inflation peaked. 69% expected to raise prices, and 61% expected less revenue.

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In Pennsylvania last night at the first stop of a planned economic tour, President Trump repeatedly called the term "affordability" a "hoax" and blamed Democrats for high prices.

• "I have no higher priority than making America affordable again. They caused the high prices and we're bringing them down," Trump told a crowd at a casino resort in the Poconos.

🗳️ Trump said White House Chief of Staff Susie Wiles told him he needs to hit the campaign trail again to engage MAGA voters for next year's midterms.

• "I haven't made a speech in a little while. You know, when you win, you say, 'I can now rest.' ... The chief of staff — and she is fantastic — said: 'We have to start campaigning, sir.'"

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Elon Musk is planning the biggest IPO in history for SpaceX, one that would value his rockets-and-satellites company at $1.5 trillion, Bloomberg reports.

• Stunning stat: At those sums, Musk's reported 42% stake in SpaceX would be worth more than $600 billion, bringing the world's richest man closer to becoming history's first trillionaire.

💸 By the numbers: A $1.5 trillion valuation would make SpaceX worth more than Tesla — and one of the world's 10 most valuable companies, Axios' Ben Berkowitz writes.

• Bloomberg notes the IPO would raise more than $30 billion, topping Saudi Aramco, the previous record holder.

The IPO could take place as soon as mid-to-late next year. The timeline could slip into 2027.

• Keep reading (gift link),

🎙️ In an interview on "The Katie Miller Podcast," Musk said DOGE was "somewhat successful" but he wouldn't do it again, Axios' Rebecca Falconer writes.

• "Instead of doing DOGE, I would have worked at my companies, essentially, and they wouldn't have been burning the cars," he added.

Miller worked with Musk on DOGE.

• Video: Musk on DOGE ... Musk on God ... Full interview.

By a surprising 19-point margin, Miami voters elected a Democrat as mayor for the first time in nearly 30 years — choosing Eileen Higgins over President Trump's pick, Axios Miami's Jeff Weiner writes.

• Why it matters: Higgins' win is a loss for Trump, who tried to influence the nonpartisan race, backing Emilio González, a Republican.

Higgins, a former county commissioner, overcame the trend of Republican gains in South Florida — in Mar-a-Lago's backyard.

• Xavier Suarez was elected (before later changing parties) as a Democrat 28 years ago.

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"Fatigue" is online career platform Glassdoor's word of the year, Axios' Emily Peck writes.

• Why it matters: Anxious about keeping jobs, people are burning out.

Mentions of "fatigue" were up 41% this year in posts, comments and reviews on the jobs site.

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These trends — isolated by Pinterest in its annual prediction report — will shape how we dress, eat and decorate next year, Axios' April Rubin writes:

1. 👗 Opulent fashion: Searches on Pinterest jumped for "80s luxury" (+225%) and "Midnight masquerade" (+95%).
2. 🥬 Cabbage: Recipe searches are spiking for bok choy, cabbage dumplings, golumpki soup, cabbage alfredo and fermented cabbage.
3. 📮 Letter writing: Searches for "snail mail gifts" rose 110% and "penpal ideas" rose 90%.
4. 🦚 Neodeco: Art Deco is modernizing. The retro vibe is getting shiny, sleek twists. Searches for pendant lamps, antique bar carts and brass aesthetic are soaring.

6 more trends.