Donald Trump has picked fiery Florida congressman Matt Gaetz to be his attorney general – a man who was under investigation over sex trafficking just days ago.
Democrats have described the MAGA loyalist as “a gonzo agent of chaos” and his appointment a “red alert moment for our democracy”, while some Republican senators have also raised doubts about his suitability for the role.
It comes as Mr Trump won control of the House of Representatives, giving him full control of the government, and continues to fill out his top team.
Mr Gaetz, 42, has been under investigation by the House of Representatives’ ethics committee over allegations he was part of a scheme that led to the sex trafficking of a 17-year-old girl.
But after he resigned from Congress on Wednesday following being named as Mr Trump’s pick for attorney general, that probe has ended – without the publication of any findings.
Despite the cloud over his character – Mr Gaetz denies all allegations – he has repeatedly shown his loyalty to the president-elect, attending his hush money trial in Manhattan and vociferously calling out prosecutors.
The MAGA firebrand in the past has spread the conspiracy theory that the January 6 riots were actually orchestrated by the left-leaning group Antifa.
If he’s going to lead the Department of Justice, the Florida politician needs to be confirmed by a Senate vote like other cabinet positions. That’s where it could get difficult for him.
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Image: The nomination is seen by some as a reward for his loyalty to Donald Trump. Pic: AP
What have Republicans said?
“I don’t think it’s a serious nomination for the attorney general,” Republican senator Lisa Murkowski said. “This one was not on my bingo card.”
Senator Susan Collins said she was “shocked” by the pick and said there would be “an awful lot of questions being asked in this case”.
Both Ms Murkowski and Ms Collins have been vocal Trump critics (the latter vowed to write fellow Republican Nikki Haley’s name on her ballot) and will be under the spotlight next year as their party retakes control of the Senate.
“I think it’s a little bit of a test,” said Republican senator Kevin Cramer.
He said he sees Mr Gaetz as a disruptive force in the House and has concerns about the “serious allegations” against him – but stopped short of saying he would not vote for him.
“It will take a lot of political capital to get him across,” he added.
Image: Mr Gaetz will need to be confirmed by a Senate vote. Pic: AP
“I’ve known Matt for a very long time, we’re friends,” said Florida senator Marco Rubio, who was nominated for secretary of state on Wednesday. “I think he would do a very good job for the president.”
Some Republican senators were reluctant to publicly criticise the incoming president’s pick to lead the justice department but did not endorse him either.
Senator John Cornyn, a member of the judiciary panel, said he did not know Mr Gaetz “other than his public persona”, and said he will not “prejudge any of these” nominations.
“I’ve got nothing for you,” said senator Katie Britt when asked by reporters. “We’ll see,” said senator Ron Johnson, when asked if he is voting for Mr Gaetz.
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1:41
Difference between Trump meeting Obama and Biden
What have Democrats said?
Unsurprisingly, Democrats in Congress have been less restrained with their reactions to Mr Gaetz’s nomination.
Veteran senator Chris Murphy declared the announcement to be “a red alert moment for our democracy”.
Representative Jim Himes meanwhile, who sits on the House Intelligence Committee, told CNN the role of attorney general requires “care, prudency, a deep respect for the rule of law… Matt Gaetz is the opposite of all of those things, he is a gonzo agent of chaos”.
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Senator Richard Blumenthal, who sits on the Senate’s judiciary panel, said the nomination was the “first test of whether Republicans are willing to stand up to Donald Trump and go with conscience and conviction as opposed to just politics”.
New Mexico senator Martin Heinrich was even more blunt, posting on X: “People voted for cheaper eggs, not whatever the f@#€ this is.”
Global financial markets gave a clear vote of no-confidence in President Trump’s economic policy.
The damage it will do is obvious: costs for companies will rise, hitting their earnings.
The consequences will ripple throughout the global economy, with economists now raising their expectations for a recession, not only in the US, but across the world.
While the UK’s FTSE 100 closed down 1.55% and the continent’s STOXX Europe 600 index was down 2.67% as of 5.30pm, it was American traders who were hit the most.
All three of the US’s major markets opened to sharp losses on Thursday morning.
Image: The S&P 500 is set for its worst day of trading since the COVID-19 pandemic. File pic: AP
By 8.30pm UK time (3.30pm EST), The Dow Jones Industrial Average was down 3.7%, the S&P 500 opened with a drop of 4.4%, and the Nasdaq composite was down 5.6%.
Compared to their values when Donald Trump was inaugurated, the three markets were down around 5.6%, 8.7% and 14.4%, respectively, according to LSEG.
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Worst one-day losses since COVID
As Wall Street trading ended at 9pm in the UK, two indexes had suffered their worst one-day losses since the COVID-19 pandemic.
The S&P 500 fell 4.85%, the Nasdaq dropped 6%, and the Dow Jones fell 4%.
It marks Nasdaq’s biggest daily percentage drop since March 2020 at the start of COVID, and the largest drop for the Dow Jones since June 2020.
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5:07
The latest numbers on tariffs
‘Trust in President Trump’
White House press secretary Karoline Leavitt told CNN earlier in the day that Mr Trump was “doubling down on his proven economic formula from his first term”.
“To anyone on Wall Street this morning, I would say trust in President Trump,” she told the broadcaster, adding: “This is indeed a national emergency… and it’s about time we have a president who actually does something about it.”
Later, the US president told reporters as he left the White House that “I think it’s going very well,” adding: “The markets are going to boom, the stock is going to boom, the country is going to boom.”
He later said on Air Force One that the UK is “happy” with its tariff – the lowest possible levy of 10% – and added he would be open to negotiations if other countries “offer something phenomenal”.
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How is the world reacting to Trump’s tariffs?
Economist warns of ‘spiral of doom’
The turbulence in the markets from Mr Trump’s tariffs “just left everybody in shock”, Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions in Boston, told Reuters.
He added that the economy could go into recession as a result, saying that “a lot of the pain, will probably most acutely be felt in the US and that certainly would weigh on broader global growth as well”.
Meanwhile, chief investment officer at St James’s Place Justin Onuekwusi said that international retaliation is likely, even as “it’s clear countries will think about how to retaliate in a politically astute way”.
He warned: “Significant retaliation could lead to a tariff ‘spiral of doom’ that could be the growth shock that drags us into recession.”
It comes as the UK government published a long list of US products that could be subject to reciprocal tariffs – including golf clubs and golf balls.
Running to more than 400 pages, the list is part of a four-week-long consultation with British businesses and suggests whiskey, jeans, livestock, and chemical components.
Meanwhile, Prime Minister Sir Keir Starmer said on Thursday that the US president had launched a “new era” for global trade and that the UK will respond with “cool and calm heads”.
It also comes as Canadian Prime Minister Mark Carney announced a 25% tariff on all American-imported vehicles that are not compliant with the US-Mexico-Canada trade deal.
He added: “The 80-year period when the United States embraced the mantle of global economic leadership, when it forged alliances rooted in trust and mutual respect and championed the free and open exchange of goods and services, is over. This is a tragedy.”
Tanking stock markets, collapsing world orders, devastating trade wars; economists with their hair ablaze are scrambling to keep up.
But as we try to make sense of Donald Trumps’s tariff tsunami, economic theory only goes so far. In the end this surely is about something more primal.
Power.
Understanding that may be crucial to how the world responds.
Yes, economics helps explain the impact. The world’s economy has after all shifted on its axis, the way it’s been run for decades turned on its head.
Instead of driving world trade, America is creating a trade war. We will all feel the impact.
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PM will ‘fight’ for deal with US
Donald Trump says he is settling scores, righting wrongs. America has been raped, looted and pillaged by the world trading system.
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But don’t be distracted by the hyperbole – and if you think this is about economics alone, you may be missing the point.
Above all, tariffs give Donald Trump power. They strike fear into allies and enemies, from governments to corporations.
This is a president who runs his presidency like a medieval emperor or mafia don.
It is one reason why since his election we have seen what one statesman called a conga line of sycophants make their way to the White House, from world leaders to titans of industry.
The conga line will grow longer as they now redouble their efforts hoping to special treatment from Trump’s tariffs. Sir Keir Starmer among them.
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President Trump’s using similar tactics at home, deploying presidential power to extract concessions and deter dissent in corporate America, academia and the US media. Those who offer favours are spared punishment.
His critics say he seeks a form power for the executive or presidential branch of government that the founding fathers deliberately sought to prevent.
Whether or not that is true, the same playbook of divide and rule through intimidation can now be applied internationally. Thanks to tariffs
Each country will seek exceptions but on Trump’s terms. Those who retaliate may meet escalation.
This is the unforgiving calculus for governments including our own plotting their next moves.
The temptation will be to give Trump whatever he wants to spare their economies, but there is a jeopardy that compounds the longer this goes on.
Image: Could America’s traditional allies turn to China? Pic: AP
Malcolm Turnbull, the former Australian prime minister who coined the conga line comparison, put it this way: “Pretty much all the international leaders I have seen that have sucked up to Trump have been run over. The reality is if you suck up to bullies, whether it’s global affairs or in the playground, you just get more bullying.”
Trading partners may be able to mitigate the impact of these tariffs through negotiation, but that may only encourage this unorthodox president to demand ever more?
Ultimately the world will need a more reliable superpower than that.
In the hands of such a president, America cannot be counted on.
When it comes to security, stability and prosperity, allies will need to fend for themselves.
And they will need new friends. If Washington can’t be relied on, Beijing beckons.
America First will, more and more, mean America on its own.