Has Trump finally put himself above the tax code?

THE BRIEFING 

Here’s what’s happening in geopolitics today.

Today’s headlines are dominated by shifting alliances and strategic repositioning, with Washington juggling NATO tensions, new military deployments in Eastern Europe and fresh weapons support for Ukraine all at once.

Elsewhere, Australia is once again confronting the long-running issue of repatriating citizens linked to Islamic State camps in Syria, while anti-U.S. demonstrations in Havana highlight the rapidly worsening relationship between Cuba and the Trump administration.

In today’s Deep Dive, we take a closer look at how Donald Trump has allegedly used the machinery of government to shield himself and his family from tax audits.

THE LAST 24 HOURS IN GEOPOLITICS 

1. Marco Rubio visits Sweden for NATO Foreign Ministers meeting
U.S. Secretary of State Marco Rubio travelled to Sweden for a NATO Foreign Ministers meeting focused on defence spending, alliance burden-sharing and growing security concerns linked to the war in Ukraine and tensions with Iran. The talks in Helsingborg come amid rising European anxiety over Donald Trump’s stance toward NATO and reports that Washington could reduce parts of its military presence in Europe, prompting allies to push for greater clarity on long-term U.S. commitments. Rubio is also expected to hold discussions on Arctic security and regional cooperation before continuing on to India for meetings tied to the Quad partnership and Indo-Pacific strategy.
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2. US approves $108M Hawk Missile System equipment sale to Ukraine
The United States has approved a potential US$108.1 million sale of Hawk missile system sustainment equipment and support services to Ukraine as Kyiv continues to strengthen its air defence capabilities against ongoing Russian missile and drone attacks. The package includes spare parts, repairs, engineering support and logistics assistance for Hawk and FrankenSAM air defence systems already in service with Ukrainian forces, according to the U.S. State Department. Washington said the sale is intended to improve Ukraine’s ability to respond to current and future aerial threats while reinforcing broader U.S. and NATO security objectives in Europe.
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3. US sending 5,000 troops to Poland as it draws down forces in Germany
The United States is deploying an additional 5,000 troops to Poland while simultaneously drawing down parts of its military presence in Germany, in a move that has raised questions about Washington’s evolving strategy in Europe. President Donald Trump said the deployment was aimed at strengthening ties with Poland and reinforcing NATO’s eastern flank amid ongoing security concerns linked to Russia and the war in Ukraine, while Pentagon officials confirmed troop reductions in Germany remain underway. The reshuffle comes as the Trump administration pushes European allies to take on a greater share of regional defence responsibilities.
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4. Another group of Australians with IS links leave camp in Syria for Australia
A second group of Australian women and children with alleged links to the Islamic State has left the al-Roj detention camp in northeastern Syria, with authorities confirming they have departed for Damascus as part of a repatriation process. The group, reportedly comprising several women and their children, is expected to return to Australia in the coming days, although officials have not confirmed travel arrangements or timing. Their departure follows previous returns of Australian citizens from similar camps and comes amid ongoing political debate in Australia over national security risks and legal proceedings for returnees.
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5. Cubans gather before US embassy in Havana to protest Castro indictment
Thousands of pro-government demonstrators gathered outside the U.S. Embassy in Havana to protest Washington’s recent indictment of former Cuban leader Raúl Castro over the 1996 downing of two civilian aircraft operated by the Brothers to the Rescue group. Cuban officials condemned the charges as politically motivated, while protesters waved Cuban flags and chanted slogans in support of the former president amid sharply rising tensions between Havana and the Trump administration.
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TODAY’S DEEP DIVE 

Has Trump finally put himself above the tax code?

When the US Justice Department posted a one-page document to its website last Tuesday, there was no press release, no announcement, and no fanfare. The language, however, was anything but understated. The federal government, it declared, is "forever barred and precluded" from pursuing any tax claims against Donald Trump, his sons, the Trump Organization, and a web of associated trusts and subsidiaries.

The settlement covers existing audits and stems from a broader agreement in which Trump dropped his $10 billion lawsuit against the IRS over the leaking of his tax records. As part of the deal, the Trump administration also announced the creation of a nearly $1.8 billion fund to compensate allies of the president who believe they were unjustly investigated and prosecuted, a group that could plausibly include participants in the January 6 Capitol attack, who Trump had already pardoned.

Who signed what, and why it matters

The mechanics of how this happened are worth examining. The addendum was signed by Acting Attorney General Todd Blanche, Trump's former personal criminal defence lawyer. In other words, the president's former defence attorney, now running the Justice Department, signed an agreement that permanently shields the president from tax scrutiny. No press conference. No public deliberation. Just a document uploaded to a government website.

Richard Painter, the chief White House ethics lawyer under George W. Bush, has argued the arrangement is unconstitutional, saying it potentially violates the domestic emoluments clause, which bars the president from receiving financial advantages from the US government beyond his salary. Senator Ron Wyden went further, pointing to a federal statute that explicitly makes it unlawful for any executive branch official to request that the IRS terminate an audit of any particular taxpayer.

The asymmetry is the point

One tax law expert noted that the settlement puts Trump in the position of paying whatever he believes is correct without any fear of prosecution, a situation that makes him materially different from every other American taxpayer. That asymmetry is not incidental. It is the point. It is not just that Trump may have avoided a significant tax liability. It is that the mechanism used to do so was the government he controls, negotiated by lawyers he employs, and executed without scrutiny.

Where are the guardrails?

What this episode really reveals is less about corruption as a concept, which has become routine in coverage of this administration, and more about institutional capacity. Congress has shown little appetite for investigation. The courts offer uncertain protection. And the executive agencies now executing these arrangements are led by loyalists who owe their positions directly to Trump.

Presidential scholar Barbara Perry has argued that previous presidents with problematic family members never succeeded at this scale. That framing is useful but perhaps incomplete. What distinguishes this moment is not just ambition, but the near-total absence of institutional friction. The settlement is, in that sense, a useful marker. It shows a president who sued the government he runs, settled the case using a lawyer he employs, and walked away permanently shielded from tax scrutiny, all without a single meaningful institutional challenge.

The question is no longer whether Trump is willing to use the machinery of government for personal benefit. That much is settled. The more uncomfortable question is whether any institution remains both willing and able to stop him if he does.

Sources
Available upon request

TWEET OF THE DAY

Why are so many foreign heads of state lining up to visit China this year?

TODAY IN HISTORY

(May 22, 1807): Aaron Burr's treason trial begins

On this day in 1807, Aaron Burr went on trial for treason. A political outcast since his fatal duel with Alexander Hamilton, Burr was accused of levying war against the United States and preparing military forces to seize Mexico, then a territory of Spain. He was ultimately acquitted. For his next act, Burr fled to Europe, where he tried to convince Napoleon to conquer Spanish Florida.