AN “INVASION”. That’s how Donald Trump describes migration across America’s southern border. “For American citizens, January 20th 2025 is Liberation Day,” he said in his inaugural address. The notion that America is being invaded is the defining theme of ten executive orders on immigration and border enforcement he signed on his first day in office. This is despite the fact that encounters at the border are the lowest they have been in four years. The orders fall into three categories: the rescission of Joe Biden’s policies and reinstatement of Mr Trump’s first-term plans; flashy things that sound tough; and extreme measures that range from probably illegal to flagrantly unconstitutional.
In the first group Mr Trump issued a sweeping order that aims to increase detention, coerce countries to take back their citizens, encourage local police to help with immigration enforcement and punish sanctuary cities, among other things. He resurrected Remain in Mexico, a policy he introduced in 2019 that forced migrants to wait on the other side of the border while their asylum claims were adjudicated.
He also shut down CBP One, an app set up by the Biden administration that helped migrants schedule appointments to apply for asylum. Migrants already in the queue found their meetings abruptly cancelled after Mr Trump took office. During his first term, the number of refugees relocated to America plummeted. This time he suspended all refugee resettlement for at least three months. Another order increases vetting for migrants and directs agencies to identify whether there are countries from which travel should be prohibited, perhaps a prelude to a ban like the one Mr Trump imposed on arrivals from mostly Muslim-majority countries in 2017.
Some orders sound harsh but may not change much. One that demands physical border barriers, detention and deportation is “just calling for enforcing laws that are already on the books”, says Julia Gelatt of the Migration Policy Institute, a think-tank. Additionally, Mr Trump declared a national emergency at the southern border, which allows the defence secretary to send troops to help secure the frontier with Mexico. George W. Bush and Barack Obama did something similar. Federal law limits soldiers’ roles in domestic affairs to non-law-enforcement activities such as transport and logistical support, rather than actually arresting migrants. The national emergency also unlocks funds from the Department of Defence for the fortification of the border wall, a move the president made in 2019, too.
That leaves the most extreme orders. One aims to end birthright citizenship, which is enshrined in the 14th Amendment . The new president kickstarted the lengthy process of classifying drug cartels as foreign terrorist organisations and directed top officials to prepare for the possibility that he will invoke the Alien Enemies Act, the only piece of the Alien and Sedition Acts, passed in 1798 when America was feuding with France, that was not repealed or allowed to lapse. It permits the president to summarily detain and deport citizens of countries at war with America. Yet America is not at war, and drug gangs are not sovereign states, even if they do control some territory.
This is where Mr Trump’s talk of an “invasion” becomes more than rhetorical bombast. Framing the cartels as terrorists invading America is meant to legitimise his use of the law. And because America is being invaded, Mr Trump argues, he can block anyone from crossing the border. The courts may not see it that way.■
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TO GET A sense of what the Republican Party thinks of the electoral value of Elon Musk, listen to what Brad Schimel, a conservative candidate for the Supreme Court of Wisconsin, has to say about the billionaire. At an event on March 29th at an airsoft range (a more serious version of paintball) just outside Kenosha, five speakers, including Mr Schimel, spoke for over an hour about the importance of the election to the Republican cause. Mr Musk’s political action committees (PACs) have poured over $20m into the race, far more than any other donor’s. But over the course of the event, his name came up precisely zero times.
Customers shop for fresh fruits and vegetables in a supermarket in Munich, Germany, on March 8, 2025.
Michael Nguyen | Nurphoto | Getty Images
German inflation came in at a lower-than-expected 2.3% in March, preliminary data from the country’s statistics office Destatis showed Monday.
It compares to February’s 2.6% print, which was revised lower from a preliminary reading, and a poll of Reuters economists who had been expecting inflation to come in at 2.4% The print is harmonized across the euro area for comparability.
On a monthly basis, harmonized inflation rose 0.4%. Core inflation, which excludes food and energy costs, came in at 2.5%, below February’s 2.7% reading.
Meanwhile services inflation, which had long been sticky, also eased to 3.4% in March, from 3.8% in the previous month.
The data comes at a critical time for the German economy as U.S. President Donald Trump’s tariffs loom and fiscal and economic policy shifts at home could be imminent.
Trade is a key pillar for the German economy, making it more vulnerable to the uncertainty and quickly changing developments currently dominating global trade policy. A slew of levies from the U.S. are set to come into force this week, including 25% tariffs on imported cars — a sector that is key to Germany’s economy. The country’s political leaders and car industry heavyweights have slammed Trump’s plans.
Meanwhile Germany’s political parties are working to establish a new coalition government following the results of the February 2025 federal election. Negotiations are underway between the Christian Democratic Union, alongside its sister party the Christian Social Union, and the Social Democratic Union.
While various points of contention appear to remain between the parties, their talks have already yielded some results. Earlier this month, Germany’s lawmakers voted in favor of a major fiscal package, which included amendments to long-standing debt rules to allow for higher defense spending and a 500-billion-euro ($541 billion) infrastructure fund.
This is a breaking news story, please check back for updates.
U.S. President Donald Trump speaks to members of the media aboard Air Force One before landing in West Palm Beach, Florida, U.S., March 28, 2025.
Kevin Lamarque | Reuters
Policy uncertainty and new sweeping tariffs from the Trump administration are combining to create a stagflationary outlook for the U.S. economy in the latest CNBC Rapid Update.
The Rapid Update, averaging forecasts from 14 economists for GDP and inflation, sees first quarter growth registering an anemic 0.3% compared with the 2.3% reported in the fourth quarter of 2024. It would be the weakest growth since 2022 as the economy emerged from the pandemic.
Core PCE inflation, meanwhile, the Fed’s preferred inflation indicator, will remain stuck at around 2.9% for most of the year before resuming its decline in the fourth quarter.
Behind the dour GDP forecasts is new evidence that the decline in consumer and business sentiment is showing up in real economic activity. The Commerce Department on Friday reported that real, or inflation-adjusted consumer spending in February rose just 0.1%, after a decline of -0.6% in January. Action Economics dropped its outlook for spending growth to just 0.2% in this quarter from 4% in the fourth quarter.
“Signs of slowing in hard activity data are becoming more convincing, following an earlier worsening in sentiment,” wrote Barclays over the weekend.
Another factor: a surge of imports (which subtract from GDP) that appear to have poured into the U.S. ahead of tariffs.
The good news is the import effect should abate and only two of the 12 economists surveyed see negative growth in Q1. None forecast consecutive quarters of economic contraction. Oxford Economics, which has the lowest Q1 estimate at -1.6%, expects a continued drag from imports but sees second quarter GDP rebounding to 1.9%, because those imports will eventually end up boosting growth when they are counted in inventory or sales measures.
Recession risks rising
On average, most economists forecast a gradual rebound, with second quarter GDP averaging 1.4%, third quarter at 1.6% and the final quarter of the year rising to 2%.
The danger is an economy with anemic growth of just 0.3% could easily slip into negative territory. And, with new tariffs set to come this week, not everyone is so sure about a rebound.
“While our baseline doesn’t show a decline in real GDP, given the mounting global trade war and DOGE cuts to jobs and funding, there is a good chance GDP will decline in the first and even the second quarters of this year,” said Mark Zandi of Moody’s Analytics. “And a recession will be likely if the president doesn’t begin backtracking on the tariffs by the third quarter.”
Moody’s looks for anemic Q1 growth of just 0.4% that rebounds to 1.6% by year end, which is still modestly below trend.
Stubborn inflation will complicate the Fed’s ability to respond to flagging growth. Core PCE is expected at 2.8% this quarter, rising to 3% next quarter and staying roughly at that level until in drops to 2.6% a year from now.
While the market looks to be banking on rate cuts, the Fed could find them difficult to justify until inflation begins falling more convincingly at the end of the year.