Good morning. Treasury Secretary Scott Bessent is ordering a freeze to work at the Consumer Financial Protection Bureau, after being named its acting director by President Trump.

• In an internal email Monday: Bessent’s office directed CFPB staff to cease much of the bureau’s work, including on enforcement actions and decisions about active litigation. The email also directs staff to suspend the effective dates for rules that had been completed, but aren’t yet in effect.
   
• Leadership in turmoil: Biden appointee Rohit Chopra was ousted on Friday, and Trump has yet to name a candidate to lead the CFPB on a permanent basis. It remains unclear what approach the administration will take to the agency during Trump’s second term as president.
   
• Rollback at CFPB: Bessent’s appointment is the beginning of what is expected to be a rollback of many of the agency’s actions under the Biden administration, which included rules capping overdraft fees and banning the use of medical debt by credit-reporting companies.

U.S. strikes deals to pause tariffs on Canada, Mexico. 

The U.S. struck last-minute deals with Mexico and Canada to delay new tariffs. China, another tariff target, is also preparing to talk trade with Trump.

The Trump administration’s proposed tariffs jolted global markets Monday, driving huge swings in stocks around the world.

President Trump’s weekend threat to place tariffs on goods imported from Mexico, Canada and China triggered a sharp overnight drop in global stocks and futures that continued in early trading Monday. But by midday, many of the trades had reversed after the U.S. and Mexico struck a last-minute deal to delay new levies.

• Inside the Chaotic Run-Up to Trump’s Tariff U-Turn

Marco Rubio wants USAID to undergo overhaul, backs off sudden shutdown.

Secretary of State Marco Rubio notified lawmakers Monday that he intends to work with Congress to reorganize the U.S. Agency for International Development, stepping back from the full closure of the agency Elon Musk envisioned.

“The Department of State and other pertinent entities will be consulting with Congress and the appropriate committees to reorganize and absorb certain bureaus, offices, and missions of USAID,” Rubio wrote to senior Republican and Democratic lawmakers.

Rubio’s note came hours after moves by Musk’s Department of Government Efficiency sought to exert control over the foreign-aid organization and shut its headquarters to agency officials.

• Democratic Senator Says He Will Stall Trump Nominees Until USAID Is Back
• What to Know About USAID, the Agency Elon Musk Wants Dead

• Major League Baseball has fired umpire Pat Hoberg after he was caught sharing the sports gambling accounts of a professional poker player who had bet on baseball. Hoberg used the accounts to bet more than $700,000 in the span of about three years.
   
• DeepSeek’s success shows companies are making the most of limited resources in a hot artificial-intelligence market, but that doesn’t mean controls targeting China’s chip sector have failed, the chief of a leading semiconductor equipment maker said in an interview.
   
• European consumer-advocacy group BEUC called out Chinese e-commerce company Temu for selling products it considers dangerous and in breach of the European Union’s consumer-protection rules.
   

China retaliates against U.S., intensifying trade war.

China unleashed a burst of retaliatory measures in response to President Trump’s tariff increase, resuming a long-simmering trade war between the world’s two largest economies and sparking fears of a wider conflagration.

In a coordinated action Tuesday, several Chinese government bodies announced actions targeting U.S. goods and companies—at 1:02 p.m. local time, one minute after the U.S. formally increased tariffs on imports of all Chinese-made goods by an additional 10%.

U.S. frackers and Saudi officials tell Trump they won’t drill more.

President Trump wants to boost oil drilling. His allies in the U.S. shale industry and Saudi Arabia are pushing back.

Trump for months has encouraged the U.S. shale industry to “drill, baby drill,” but another American oil boom isn’t in the cards soon, no matter how many regulations are rolled back, according to oil executives. After many producers overdrilled themselves into bankruptcy during the shale boom’s heyday, the industry is now focused on keeping costs down and returning cash to investors.

• Venezuelan opposition leader María Corina Machado on Monday urged her compatriots to maintain hope while vowing to fight for democracy in the country, after a senior Trump envoy cut a deal with Venezuelan President Nicolás Maduro to facilitate U.S. deportations.
   
• The Trump administration has asked congressional leaders to approve new transfers of roughly $1 billion worth of bombs and other military hardware to Israel at the same time the White House is working to preserve a fragile cease-fire in Gaza, according to U.S. officials familiar with the sale.
   
• Things in the Arctic have never been hotter. In the past year, Russian nuclear submarines have practiced firing cruise missiles near NATO members Norway, Finland and Sweden. That drill followed Arctic wargames by the North Atlantic Treaty Organization that included amphibious assaults in the frigid seas.

Wadhwa, who helped lead the SEC’s enforcement division with enforcement chief Gurbir Grewal, will be a partner in the securities litigation and white collar defense, regulatory and investigation practice at the law firm based in New York. He briefly served as the acting director of the enforcement division after Grewal left the SEC.

Paul Rosen, who formerly oversaw the Committee on Foreign Investment in the U.S., will join Latham & Watkins as a partner, the law firm said Monday. Rosen oversaw CFIUS, which reviews mergers for national security concerns, as it imposed a record number of penalties amid concern about China. Rosen will join Latham's CFIUS and U.S. national security practice, the firm said.

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• Behind President Trump’s barrage of immigration announcements in his first two weeks in office, there is an overriding goal: to take in fewer foreigners and ones who, in his view, are better for the country.
   
• Trump administration officials are weighing executive actions to dismantle the Education Department as part of the campaign by billionaire Elon Musk and his allies to shrink federal agencies and slash the size of the government workforce.
   
• President Trump on Monday signed an executive order to create a U.S. sovereign-wealth fund and suggested the fund could be used in unlocking a deal to keep TikTok operating.

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