Daily News Brief

April 25, 2025

Welcome to CFR’s Daily News Brief. Today we’re covering the far-flung implications of the upheaval surrounding the U.S. Agency for International Development (USAID), as well as...

• A high-stakes White House visit for Japan’s PM
• The EU’s hesitations on its carbon border tax
• Trump’s sanctions on the ICC—and Iran’s shipping networks

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Top of the Agenda

USAID staff around the world are due to be placed on mandatory leave just before midnight tonight. It is the latest step in the Donald Trump administration’s chaotic undercutting of the agency in recent days. Funding has been frozen at many USAID-backed programs across the world, while the team of Trump ally Elon Musk—acting as a “special government appointee”—shut workers out of the agency’s headquarters this week and reportedly accessed classified systems. Planned reductions would reportedly reduce USAID’s more than ten thousand employees to just a few hundred; yesterday, a government workers’ union sued to block the dismantling of the agency. 

From criticism to cuts. Much of the political momentum for the current changes at USAID came from Musk, who has called it “a viper’s nest of radical-left marxists who hate America.” U.S. Secretary of State Marco Rubio—made the agency’s interim administrator—said he aims to trim down and potentially eliminate it, folding it into the State Department as it was before a 1998 restructuring. Rubio said he aims to eliminate the State Department’s “focus on political and cultural causes that are divisive at home and deeply unpopular abroad.”

What the Donald Trump administration says is a step to cut waste in the federal government has triggered worries from foreign officials and civil society groups. USAID managed more than $40 billion in 2023, according to the Congressional Research Service. Rather than studying what to cut before taking action, the Trump administration opted to suspend USAID actions and offer the chance to apply for waivers for programming it qualifies as “lifesaving humanitarian assistance.”

The worldwide fallout. Writing for CFR, former senior USAID official Larry Garber detailed some of the agency’ actions around the world that are now threatened:

• In Ukraine, programs to ensure the economy and institutions remain resilient.

• In Syria, efforts to contain the self-declared Islamic State.

• In Gaza, humanitarian work that “enhances prospects for a long-term cease-fire.”

• In Central America, support for governments trying to control gangs and thus reduce emigration.

Around the world, some autocratic world leaders celebrated the slashing of USAID, which funded pro-democracy programs. Democratic leaders have voiced unease. Rubio sought to assure at an event in Guatemala this week that “the United States is not walking away from foreign aid.” Yet, Rubio’s first international tour was marked by concern over the aid freeze.

Labott is the Edward R. Murrow press fellow at the Council on Foreign Relations. She is a leading journalist specializing in U.S. foreign policy and global affairs.

How has USAID historically served U.S. interests?

Labott: USAID has been one of America’s most powerful soft power tools since President John F. Kennedy created it in 1961. The agency responds to about sixty five global disasters annually, while building international goodwill through its visible “From the American People” brand. With its lifesaving aid and programs in health, education, and democracy, USAID helps maintain U.S. global leadership while being far more effective—and cheaper—than military intervention.

What was the global reaction to this week’s events?

Labott: The global response has been stark, revealing both humanitarian and strategic concerns. European allies are warning they cannot fill the funding gap, while Russia’s leaders are openly celebrating USAID’s dismantling. The freeze leaves a dangerous vacuum in regions critical for U.S. interests—from Ukraine's democracy to Middle East stability and security partnerships in Asia—which China and Russia are eager to fill. This retreat threatens decades of relationships, influence, and trust around the world.

Waivers were announced for some aid. Still, what critical areas might be affected?

Labott: Massive staff cuts threaten USAID’s historic role as the coordinator for international disaster response. The U.S. military may need to take on humanitarian missions, diverting it from core security duties. Critical development programs in democracy, economic growth, and conflict prevention face disruption, potentially destabilizing vulnerable regions. Early warning systems for famine and disaster could fail without proper staffing, along with programs keeping 20 million HIV patients on life-saving drugs. USAID’s ability to rapidly deploy disaster teams—a hallmark of U.S. global crisis response—may be permanently degraded.

What would make USAID more effective and efficient?

Labott: USAID has long struggled with management issues, including slow grant-making, weak monitoring systems, and vulnerability to fraud. Key reforms should cut through red tape and strengthen financial controls. The agency needs more flexibility to respond quickly to global crises. Modern technology and data analytics could help prevent aid diversion and improve coordination between emergency response and long-term development teams. Some experts argue returning USAID to its Kennedy-era roots as part of the State Department could better align aid with U.S. foreign policy—but only if it preserves the agency’s crucial humanitarian mission.

Japan’s PM in Washington. Prime Minister Ishiba Shigeru is expected to discuss joint artificial intelligence (AI) projects and Indo-Pacific security with Trump today. The two countries plan to boost cooperation in the AI and chip fields in response to China’s growing capabilities, Nikkei reported. Ishiba’s predecessor during Trump’s first term, Abe Shinzo, spoke frequently with the U.S. president. Trump has so far not mentioned Japan as a potential tariff target as he has for other U.S. allies.

Sanctions on the ICC. Trump ordered sanctions on the International Criminal Court (ICC), saying it “engaged in illegitimate and baseless actions targeting America and our close ally Israel.” The ICC last year issued an arrest warrant for Israeli Prime Minister Benjamin Netanyahu over alleged war crimes in Gaza. The court said Trump’s measure meant to harm its “independent and impartial judicial work.” Human rights groups and some foreign officials defended the court; European Commission President Ursula von der Leyen said it “must be able to freely pursue the fight against global impunity.” 

Sanctions on Iranian oil transit. Trump administration sanctions yesterday targeted a shipping network that the U.S. Treasury said moves hundreds of millions of dollars worth of Iranian oil to China. Treasury Secretary Scott Bessent said Washington will “aggressively” target Iranian efforts to fund its nuclear activities, though Trump has also signaled openness to dealmaking with Tehran. Today, Iranian leader Ayatollah Ali Khamenei said talks with Washington were “not intelligent, wise, or honorable” but stopped short of issuing an order against them.

Panama disputes canal pledge. President José Raúl Mulino denied committing to no-fee passage for U.S. government vessels through the Panama Canal. The U.S. State Department said Panama had made such a pledge after Rubio’s visit earlier this week. Mulino said he would speak with Trump today.

Green tape cut in Brussels. Under new plans, more than 80 percent of European Union (EU) companies slated to be hit with a carbon border tax would instead be exempt, the EU tax commissioner said. Only the biggest importers would have to pay the tax, which is due to be fully in place by next year. The proposal is part of Brussels’ efforts to cut red tape and increase competitiveness. 

India’s migration enforcement. Opposition lawmakers objected in parliament yesterday to the treatment of 104 Indian deportees who arrived from the United States on a military plane. Some deportees said they had been handcuffed and denied access to restrooms during the flight. India’s foreign minister said New Delhi was working to ensure deportees were not mistreated, but that India’s focus should be on a “strong crackdown” on the illegal migration industry.

An anti-ISIS offensive in Somalia. An official from Somalia’s semi-autonomous Puntland region said its military forces have captured 250 square kilometers (nearly one hundred square miles) from the self-declared Islamic State, known as ISIS, since December 31. Reuters verified Puntland forces were patrolling formerly ISIS-controlled areas. Though al-Qaeda-linked al-Shabbab is larger than ISIS in Somalia, the latter group has become increasingly important to its parent network in the past few years, analysts said.

Kenyan reinforcements in Haiti. More than one hundred Kenyan police officers arrived yesterday in Haiti’s capital, Port-au-Prince, to join a multinational security mission there. In recent days, the United States froze some $13 million that had been in a UN fund to support the security mission. Rubio said yesterday that Washington would provide $40.7 million for the mission and for Haitian police without channeling the money through the UN fund.

• An eastern and southern African leaders summit will discuss the DRC crisis.

   

• Ecuador holds presidential and legislative elections.

   

• The U.S., French, and Japanese navies will conduct a drill around the Philippines.

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