Bloomberg Daybreak: US Edition

Winter Storm Pummels East Coast; Dems Threaten Shutdown After Latest Minneapolis Killing

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Key takeaways

  • The winter storm has left significant portions of the U.S. without power and is straining local resources.
  • The Minneapolis shooting incident has intensified discussions about immigration policy and federal presence in local areas.
  • Trade relations with Canada have become increasingly contentious due to President Trump's tariff threats.

Summary

Severe Weather Disruptions Across the U.S.

A massive winter storm has significantly impacted large parts of the U.S., leading to over 800,000 households without power. Reports reveal severe icy conditions causing travel delays and cancellations, with flight cancellations reaching their highest level since the pandemic. The storm has resulted in major disruptions to commuter services, with various transportation authorities adjusting their schedules and some private bus services suspending operations.

Political Fallout from Minneapolis Shooting

Tensions are rising in Minnesota following the police shooting of Alex Pretti, an ICU nurse, which has sparked public outrage and political responses. Governor Tim Walt has publicly criticized federal agents' presence in Minnesota and called for their removal. Leading figures in Minnesota’s business sector, including CEOs from prominent companies, have issued calls for de-escalation. Nationally, Senate Democrats are leveraging this incident to push for changes in immigration enforcement funding, posing a threat to a looming government shutdown.

Trump’s Trade Tariffs on Canada

In a bold move, President Trump threatened Canada with 100% tariffs on all exports to the U.S. should they proceed with a trade agreement with China. This ultimatum escalates the already fraught relations between the U.S. and Canada, as discussions regarding the USMCA (United States-Mexico-Canada Agreement) are set for the summer. The threat suggests potential complications for multiple industries dependent on trade with Canada.

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Show notes

On today's podcast:
1) US power grids are expected to grapple with unprecedented seasonal demand and the threat of blackouts after a damaging winter storm coated parts of the South and Mid-Atlantic in ice — leaving brutal cold in its wake. More than 800,000 homes and businesses nationwide are currently without electricity as snow and ice wreak havoc on local distribution lines. Grids so far have avoided larger system-level cuts, but frigid wind chills will likely persist all week, testing seasonal power-demand records from New England to Texas. In the New York metropolitan area, commuter lines run by the Metropolitan Transportation Authority will be operating with modified schedules on Monday, while at least one private bus operator, Boxcar, used by New Jersey workers, suspended its service because of the inclement weather.
2) Senate Democratic leader Chuck Schumer vowed to block a massive spending package next week unless Republicans strip funding for the Department of Homeland Security, dramatically increasing the risk for a partial US government shutdown. Schumer’s announcement came on the same day that a Border Patrol agent shot and killed an American intensive care unit nurse in Minnesota during protests over the immigration crackdown in that state. The man was identified by state and local officials as Alex Pretti. Democratic opposition to the funding package potentially affects not just Homeland Security but also the departments of Defense, Labor, Education, State, Treasury and Health and Human Services. The effects would be widespread, including possibly delaying the next Bureau of Labor Statistics report.
3) President Trump threatened Canada with 100% tariffs against all its exports to the US if it makes a trade deal with China, escalating tensions between the US and its northern neighbor. Trump, referring to Prime Minister Mark Carney as “Governor Carney,” said the Canadian leader was “sorely mistaken” for opening up his country to more business from China, including a recent deal allowing an increase in Chinese electric vehicle exports. Trump and key administration officials have denounced that bilateral agreement and warned of potential consequences, including an additional levy for Canadian goods, portending a difficult renegotiation for the US-Mexico-Canada free trade agreement scheduled in the summer.

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