Donald Trump rushes to meet Vladimir Putin’s demands on Ukraine

Good morning! It’s a big day for us — it’s our first anniversary.Thank you to all the readers who have joined us in the past year. For White House Watch’s birthday, let’s dive into:

Donald Trump is in such a rush to end the war in Ukraine, that he seems willing to give Vladimir Putin the advantage in any deal.

The Russian president has stuck to stringent demands that would undo Europe’s security architecture and basically turn Ukraine into a failed state. Yet Trump has openly sided with Moscow.

He’s blamed Volodymyr Zelenskyy for starting the war, calling him a “dictator”, and today the US opposed calling Russia the war’s aggressor. In his most overt threat to end the war on Moscow’s terms, Trump posted online: “A Dictator without Elections, Zelenskyy better move fast or he is not going to have a Country left.”

The Ukrainian leader hit back, saying Trump “is living in this disinformation bubble” pushed by Russia.

The Europeans are furious: the EU has agreed to a fresh sanctions package against Russia, and the UK has pushed back against Trump’s thinly veiled call for Ukrainian elections. Plus, Russia’s demand that Nato troops withdraw from eastern Europe has trigged real concern.

Trump’s hurry to normalise ties has left Putin “standing tall and proud”, said Sergey Radchenko, a professor at the Johns Hopkins School of Advanced International Studies:

The Russians and Americans are meeting on equal ground as partners — Putin is no longer the kid slouching at the back of the classroom . . . [Trump] is bound to make steps that may even be detrimental in the short term for US interests. And Putin can afford to wait it out.

The US has already ruled out Nato membership for Ukraine and the beleaguered nation getting back territory occupied by Russia. But Trump’s team hasn’t said what, if any, concessions it could get from Moscow.

Washington has tried to flash the benefits of re-engagement and entice Russia to end the war by offering to put economic and geopolitical issues on the table. But the Kremlin is likely to see that outreach as a victory in itself, according to Alexander Gabuev, director of the Carnegie Russia Eurasia Center in Berlin.

“They’re not offering it as a prize — it’s already the direction of travel,” he said.

The latest headlines

What we’re hearing

Trump has continued to tighten his grip on the federal government by taking greater control of independent agencies, including financial watchdogs.

One of his latest executive orders “reins in independent agencies”, directing them to submit draft regulations for review, according to the White House.

Agencies targeted by the order include the Securities and Exchange Commission, Wall Street’s top watchdog; the Federal Trade Commission, the antitrust regulator; and the Federal Communications Commission, which regulates US television, internet and radio.

While the Federal Reserve’s supervisory role is affected, its monetary policy functions are exempt from the order, the White House said. But it’s not clear if this exemption will stick.

“The fact that it’s carved out should not mean that we can breathe easy when it comes to the independence of the Fed,” one analyst told the FT’s Stefania Palma. “Because one executive order carves it out, another executive order could carve it right back in, if it’s legal.”

Critics of the order say it defies Congress’s core function of granting regulators power with laws.

“This is a profoundly dangerous idea for the nation’s health, safety, environment and economy — and for our democracy,” said Robert Weissman, co-president of Public Citizen, a consumer advocacy group. “Congress made independent agencies independent of the White House for good reason.”

Q&A: Trump’s trade agenda

Thank you to readers who sent us their questions on Trump’s tariffs. Any other questions? You can reach us at whitehousewatch@ft.com — Emily Goldberg

John Remnant in England asked: I am getting the impression that Trump’s tariff threats are simply being used as a bargaining tool; is this a fair characterisation?
It depends who you ask. Before Canada and Mexico gained reprieve from the president’s initial threats, Trump said tariffs were “not a negotiating tool”. Members of his own trade team, though, have varying views on this [Available for Premium subscribers]. Yet Trump’s 10 per cent tariff on Chinese goods did go into effect as planned this month. The FT editorial board argued it would be “unwise” to assume that Trump is only using tariffs as a negotiating tool. Decide at your own peril. 

Jim Keeney in Scotland lamented how the alcohol trade in his country could be affected by US tariffs. What could happen?
So far, the only UK products expected to be hit by Trump’s tariffs are steel and aluminium. But Britain has drawn up potential retaliation plans. Trade experts said that high on the UK’s list will be items that the EU targeted in response to Trump’s 2018 tariffs. Since US bourbon features on the list, any retaliatory tariffs from the UK will probably make the Scotch whisky industry anxious about a tit-for-tat dispute.

João Pinheiro in Portugal asked how we see the world in 2050.
This is a very subjective question with many possible answers (we’re merely journalists who lack a crystal ball) but economist Daron Acemoglu elucidated a frightening prediction on how trade wars, Big Tech and the loss of faith in US institutions could cause America’s decline in the next 25 years. 

Viewpoints