Axios

U.S. and Chinese officials will meet this week for their first formal economic talks since President Trump announced sweeping tariffs on China and triggered a trade war, the Treasury Department announced Tuesday evening.

Why it matters: The trade war between the world's two largest economies threatens the global order and the talks in Switzerland will mark the first high-level meeting between U.S. and Chinese officials since China's Vice President Han Zheng attended Trump's inauguration in January.

The regime of Venezuela's Nicolás Maduro is "probably not directing" the criminal gang Tren de Aragua's (TDA) movement into and operations within the U.S., according to a partially declassified intelligence memo.

What they found: "The small size of TDA's cells, its focus on low skill criminal activities and its decentralized structure make it highly unlikely that TDA coordinates large volumes of human trafficking or migrant smuggling," per the U.S. intel memo that was first shared with the New York Times on Monday.

Canadian Prime Minister Mark Carney privately asked President Trump to stop referring to the country as the 51st U.S. state, the prime minister said after their meeting Tuesday.

Why it matters: Trump has repeatedly threatened Canadian sovereignty, but Carney's Liberal Party staged a political comeback by rallying against Trump's annexation threats.

President Trump and Canadian Prime Minister Mark Carney, fresh off a Liberal Party election victory, met Tuesday — a week after Carney declared an end to his country's "old relationship of integration" with the U.S.

Why it matters: Carney and Trump met after the U.S. president's rollercoaster trade war and talks of annexation fueled a stunning Liberal party comeback in Canada.

President Trump on Tuesday said he would stop bombing Houthi rebels in Yemen because the group, armed by Iran, no longer wants to fight.

Why it matters: This tenuous deal follows a beefed-up U.S. presence in the greater Middle East and months of missile-and-drone exchanges that chewed through coveted stateside stockpiles.

China's no longer tops among the cheapest places in the world to make vehicles; today, Morocco, Romania and Mexico are the auto industry's emerging low-cost production centers, according to a new labor-cost analysis by Oliver Wyman.

Why it matters: Amid all the disruption in the auto industry — geopolitical tensions, economic headwinds and rising competition — automakers must reconsider where it makes sense to produce future vehicles.

Israeli Ambassador to Washington Yechiel Leiter recently proposed to the White House that President Trump add a short stop in Israel during his trip to the Middle East, which starts Monday, two Israeli officials tell Axios.

The intrigue: Israeli strategic affairs minister Ron Dermer, a close confidant of prime minister Benjamin Netanyahu, will visit Washington on Wednesday with the potential stop in Israel likely on the agenda, the Israeli officials say.

President Trump said Tuesday that Yemen's Houthi rebels had "capitulated" and told the U.S. they will stop attacking ships in the Red Sea. The Houthis refuted that characterization.

Why it matters: The Houthi attacks had snarled global shipping, and Trump ordered nearly two months of relentless strikes on Yemen targeting the group. Trump said the U.S. would "accept their word" and stop its attacks in Yemen as a result.

Canadian Prime Minister Mark Carney on Tuesday will meet face-to-face with President Trump, a sit-down that comes amid a deepening rift between the neighboring nations.

Why it matters: Trump's trade war and repeated annexation threats against Canada have upended the U.S.'s relationship with one of its closest allies.

President Trump's grand economic vision relies on a simple tradeoff: that Americans will accept short-term personal sacrifice — higher prices, fewer options, slimmer profits — in service of long-term national strength.

Why it matters: Trump is breaking sharply from free-market orthodoxy in his second term, blending bursts of anti-capitalism with a top-down, nationalist agenda for American dominance.

Defense Secretary Pete Hegseth ordered a reduction in the number of military generals and admirals by at least 20%, per a memorandum published Monday.

The big picture: Hegseth wants a minimum 20% cut to the number of four-star positions across the military's active component and the same for general officers in the National Guard to cut "redundant force structure to optimize and streamline leadership," per the memo.

Sen. Jeanne Shaheen (D-N.H.) is urging her fellow Democrats to focus on the threats posed by China as a way to sharpen their message that President Trump's first 100 days have left Americans less safe.

Why it matters: Democrats are struggling to find a unified and coherent message to challenge Trump's plans to impose tariffs and cut foreign aid.