The briefing for Wednesday, January 28.

India and the European Union reached a free trade agreement Tuesday after nearly two decades of negotiations, a deal European Commission President Ursula von der Leyen called the 'mother of all deals.' The accord affects 2 billion people and represents 25% of global GDP, covering nearly all goods traded between the EU's 27 member states and India. The agreement will eliminate tariffs on 96.6% of EU exports to India and 99% of India's shipments to Europe, with full implementation expected by year's end after parliamentary ratification.

The deal comes as both India and the EU face economic pressure from the Trump administration's tariff policies. Washington has targeted both regions with steep import tariffs, pushing major economies to seek alternative partnerships. Trump threatened European allies with punitive tariffs over objections to his Greenland demands before backing off last week. India is currently dealing with 50% US tariffs imposed last year while negotiations for a US-India trade deal continue to drag on.

The agreement will cut up to €4.7 billion in annual tariffs for exporters and is expected to create jobs for millions of workers. For the EU, tariffs on cars will gradually drop from 110% to 10%, while India will reduce duties on European wine from 150% to 20%. India excluded dairy products and cereals from the deal citing domestic sensitivities, while the EU won't allow concessional tariffs on Indian sugar, meat, and poultry. Both sides also agreed on a framework for deeper defense cooperation and a separate pact to ease mobility for skilled workers and students.

Spain announced Tuesday it will grant legal status to potentially 500,000 to 800,000 undocumented immigrants living and working in the country, marking a sharp contrast to increasingly harsh immigration policies in the United States and much of Europe. Migration Minister Elma Saiz called it 'an historic day' as the government will use an expedited decree to bypass a stalled parliamentary bill. Eligible immigrants who arrived before December 31, 2025, can prove at least five months of residency, and have no criminal record will receive one-year legal residency permits and work authorization starting in April.

The measure came after a last-minute deal between the ruling Socialist Party and the left-wing Podemos party in exchange for parliamentary support. Many beneficiaries are Latin American or African immigrants working in agriculture, tourism, or service sectors that form the backbone of Spain's growing economy, which posted nearly 3% growth in 2025. Prime Minister Pedro Sánchez and his ministers have consistently emphasized the benefits of immigration to the economy, with unemployment recently dipping below 10% for the first time since 2008.

The announcement drew immediate political opposition. Conservative People's Party leader Alberto Núñez Feijóo warned the mass legalization would 'increase the pull effect and overwhelm our public services,' while far-right Vox spokeswoman Pepa Millán said it 'attacks our identity' and pledged to appeal before the Supreme Court. The move represents the first large-scale migrant regularization in Spain in two decades. Between 1986 and 2005, similar initiatives by both Socialist and conservative governments legalized an estimated half a million migrants, but the practice had lapsed in recent years.

The shooting deaths of two American citizens during Trump administration immigration enforcement operations in Minneapolis have upended congressional politics on immigration, pushing the country toward another government shutdown by Friday's deadline. Democrats are refusing to fund the Department of Homeland Security's operations without new restraints on ICE activities, while a growing number of Republicans are calling for a full investigation into the death of Alex Pretti and congressional hearings about enforcement tactics. Two former presidents, Barack Obama and Bill Clinton, have broken from retirement to speak out against the operations.

The political climate has shifted dramatically from just a year ago, when dozens of Democrats joined Republicans in passing the Laken Riley Act as Trump's first signed bill. At stake is a six-bill government funding package covering more than 70% of federal operations, including Defense and Health departments, not just Homeland Security. Despite billions already allocated to DHS from Trump's tax break bill, Democrats are coalescing around changes to ICE operations, with proposals to unmask federal agents and limit their reach into schools, hospitals, and churches.

In a related development, Chief Federal Judge Patrick Schiltz in Minnesota ordered ICE acting director Todd Lyons to appear in court Friday to explain why he shouldn't be held in contempt for failing to provide bond hearings for detained immigrants. Schiltz wrote that 'the extent of ICE's violation of court orders is likewise extraordinary' and that 'lesser measures have been tried and failed.' The White House has signaled a potential shift by sending border czar Tom Homan to Minneapolis to replace Border Patrol Commander Gregory Bovino, a move Senate Majority Leader John Thune called 'a positive development' that could help 'restore order in Minnesota.'

The Trump administration announced Tuesday that 15 new prescription drugs will enter Medicare's price negotiation program, including treatments for Type 2 diabetes, HIV, and arthritis. The selections include some of Medicare's highest-cost medications, with the potential to deliver significant taxpayer savings when negotiated prices take effect in 2028. CMS Administrator Dr. Mehmet Oz said the move takes 'strong action to target the most expensive drugs in Medicare, negotiate fair prices, and make sure the system works for patients—not special interests.'

This marks the third round of the program established under the 2022 Inflation Reduction Act, bringing the total number of drugs with negotiated prices to 40. For the first time, the program includes Medicare Part B drugs, which are outpatient prescriptions infused or injected at a doctor's office, in addition to retail drugs covered under Part D. The newly selected medications include the diabetes drug Trulicity, HIV medication Biktarvy, and Botox for Medicare-covered uses such as treating migraines. Over the past year, about 1.8 million Medicare enrollees used these 15 drugs, accounting for approximately 6% of total Part B and Part D spending.

AARP CEO Dr. Myechia Minter-Jordan called the announcement 'a significant step forward,' noting that older Americans across the political spectrum consistently prioritize lowering drug prices. The pharmaceutical industry's leading trade association PhRMA criticized the approach, with Executive Vice President Elizabeth Carpenter arguing that 'government price setting is the wrong approach' and calling for policymakers to instead rein in insurers and pharmacy benefit managers. Negotiated prices for the first 10 drugs selected under the Biden administration went into effect at the start of this year.

Secretary of State Marco Rubio will warn Congress Wednesday that the Trump administration is prepared to use military force against Venezuela if the country's interim leadership strays from US expectations, according to prepared testimony released Tuesday. While stating that 'there is no war against Venezuela' and emphasizing cooperation with interim leaders, Rubio will tell the Senate Foreign Relations Committee that 'we are prepared to use force to ensure maximum cooperation if other methods fail.' The testimony comes as the State Department notified Congress of plans to reopen the US Embassy in Caracas, which has been shuttered since March 2019.

The administration has moved to cautiously normalize relations with acting President Delcy Rodríguez following the January 3 raid that captured former President Nicolás Maduro. Rubio's testimony will make clear that Rodríguez 'is well aware of the fate of Maduro' and that 'her own self-interest aligns with advancing our key objectives,' which include opening Venezuela's energy sector to US companies, providing preferential access to production, and ending subsidized oil exports to Cuba. Rodríguez said Tuesday her government has 'established respectful and courteous channels of communication' with the Trump administration.

The State Department's notification to congressional committees outlines a phased approach starting with temporary staff conducting 'select' diplomatic functions in an interim facility while the existing embassy compound is brought up to standard. Initial deployments will focus on security and management before gradually expanding to consular, political, and economic operations. The Venezuela Affairs Unit currently based in Bogota would eventually move to Caracas. Congressional Democrats have condemned Trump's Venezuela actions as exceeding executive authority, while the House narrowly defeated a war powers resolution that would have directed troop removal despite administration claims that no US troops are on the ground.

Iranian officials conducted intensive Middle East outreach Wednesday, one month after protests began that triggered a deadly crackdown killing at least 6,221 people, according to activists. The diplomatic push comes as the USS Abraham Lincoln and three destroyers arrived in the region, bringing renewed potential for US airstrikes despite President Trump's recent backing away from threatened military action. Saudi Arabia and the UAE have both signaled they won't allow their airspace to be used for attacks on Iran, though America's largest regional base, Qatar's Al Udeid Air Base, remains available.

Egypt's top diplomat spoke separately with Iranian Foreign Minister Abbas Araghchi and US Mideast envoy Steve Witkoff to 'work toward achieving calm,' while Saudi Crown Prince Mohammed bin Salman told Iranian President Masoud Pezeshkian the kingdom would 'not allow its airspace or territory to be used for any military actions against Iran.' Araghchi told journalists that 'applying diplomacy through military threats cannot be effective or constructive,' adding that negotiations must be 'conducted on an equal footing, based on mutual respect, and for mutual benefit.'

Trump has not elaborated on his recent claim that Iran halted the planned hangings of 800 detained protesters, which Iran's top prosecutor called 'completely false.' The president earlier threatened that any new military action would make last year's strikes on Iranian nuclear sites 'look like peanuts.' Iran's state-run media now only refers to protesters as 'terrorists' and serves as the sole news source for many Iranians after Tehran cut off global internet access three weeks ago. A 59-year-old Tehran teacher said the result of decades of education 'led to death of thousands, and maybe more injured and prisoners.'