Political Strain in Washington Raises Global Economic Concerns

Nov 4

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Intelligence Summary

As November begins, the United States faces a convergence of domestic political crises with significant global implications. Three parallel developments define the period: the New York City mayoral election, a record-breaking federal government shutdown, and a Supreme Court hearing on the legality of President Donald Trump’s tariff powers. Each event continues to reflect deepening political polarization. The balance of power between federal and local authorities, the executive and legislative branches, and the United States’ role in global economic governance are all being called into question.


In New York City, the mayoral race between Democratic nominee Zohran Mamdani, independent candidate and former Governor Andrew Cuomo, and Republican Curtis Sliwa has become a national headline. Mamdani, a 34-year-old state assemblyman from Queens, led in yesterday’s polls with 45.8 percent support compared to Cuomo’s 31.1 percent and Sliwa’s 17.3 percent. President Trump intervened directly, endorsing Cuomo and warning that if Mamdani won, he would likely restrict federal funding contributions to New York City to the legal minimum. Trump posted a statement on Truth Social the day prior to the November 4 election, describing Mamdani as a “communist” and urging voters to elect Cuomo.


Mamdani’s campaign, supported by over 100,000 volunteers, emphasized affordability, rent freezes, free public transit, and universal childcare partially funded through higher taxes on the cities’ wealthiest residents. His platform drew strong support from working-class and immigrant communities, including Muslim and Bangladeshi voters, but also provoked backlash from financial and pro-Israel constituencies. Within New York’s Jewish community, which is the largest in the United States, religious leaders expressed differing opinions over Mamdani’s criticism of Israel’s military actions in Gaza and his support for Palestinian rights. Some rabbis accused him of mainstreaming antisemitism, while others acknowledged his outreach to Jewish leaders and his condemnation of Hamas’s October 7, 2023, attacks. Competing endorsements from Hasidic factions further illustrated the community’s internal polarization.


Cuomo, who resigned as governor in 2021 amid sexual misconduct allegations, sought to rebuild his image by appealing to centrist and conservative voters. He warned that Mamdani’s policies would turn New York into a “socialist city”, drawing a comparison to Venezuela or Cuba. Trump’s endorsement of Cuomo, despite their past rivalry, demonstrated the president’s strategic use of local elections to reinforce his national political agenda. Billionaires such as Elon Musk and hedge fund manager Bill Ackman have heavily supported Cuomo’s campaign, with Ackman donating $750,000 through super PACs.


Simultaneously, today, November 4, the United States enters the 35th day of a government shutdown, tying the 2018–2019 record. The shutdown, which began on October 1, 2025, stemmed from a standoff between Trump and congressional Democrats over the extension of Affordable Care Act subsidies. Approximately 670,000 federal employees were furloughed, and 730,000 continue to work without pay. The Federal Aviation Administration reported that 80 percent of air traffic controllers at New York-area airports were absent, causing more than 16,700 flight delays and 2,282 cancellations over the weekend of November 1–3.


The shutdown also continues to disrupt social programs. The Supplemental Nutrition Assistance Program (SNAP), serving 42 million Americans, faced suspension until federal judges in Massachusetts and Rhode Island ordered the administration to use $4.65 billion in contingency funds to partially fund the program in November, covering roughly half of normal benefits. Treasury Secretary Scott Bessent relayed that the administration is waiting for the court's direction. Patrick Penn, Deputy Under Secretary Food Nutrition and Consumer Services for USDA, confirmed that the department would not utilize additional emergency funds through September 2026 to prevent a gap in child nutrition programs. The shutdown has also forced closures of Head Start preschools serving 8,000 families nationwide, leaving low-income parents without childcare.


Coinciding with the New York City Mayoral election and the government shutdown, the Supreme Court prepares to hear oral arguments in a case challenging Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose tariffs on imports from Canada, China, Mexico, and other countries. The hearing is set to take place tomorrow, November 5, 2025. Lower courts previously ruled that the president had exceeded his authority. However, the administration appealed this ruling, leaving the tariffs in place, and resulting in the upcoming Supreme Court hearing. Treasury Secretary Bessent announced he would attend the hearing, framing it as an economic emergency and a matter of national security. The administration argues that tariffs are essential tools of foreign policy and security. Critics remain firm in their beliefs that Trump’s interpretation of IEEPA undermined congressional authority over taxation and trade and continues to do so presently.


Together, these developments reveal an increasingly polarized nation grappling with institutional strain, economic uncertainty, and the politicization of both domestic governance and international economic policy.

Why it Matters

The convergence of the New York City mayoral race, the federal shutdown, and the Supreme Court tariff case illustrates how domestic political instability in the United States affects global systems of governance, trade, and security. Each event exposes a different dimension of the erosion of institutional norms and the centralization of executive power, with implications for both U.S. allies and adversaries.


Trump’s intervention in the New York mayoral race demonstrates the increasing fusion of national and local politics. By threatening to withhold elements of federal funding from a city of 8.5 million people, the president signaled a willingness to use fiscal coercion against domestic political opponents. This approach mirrors his use of economic tools abroad, where tariffs and sanctions have become instruments of political leverage. The precedent of conditioning federal support on political alignment could weaken the autonomy and power of state and municipal governments, undermining the federal balance that is central to U.S. governance. For international observers, it raises concerns about U.S. domestic policy and the potential for politically motivated disruptions to negatively impact urban infrastructure, financial markets, and social programs.


The government shutdown highlights the fragility of U.S. administrative capacity. With 1.4 million federal employees either furloughed or unpaid, critical sectors such as aviation, food security, and early childhood education are effectively paralyzed. The FAA’s 80 percent absentee rate at New York airports not only disrupts domestic travel but also affects global air traffic flows through one of the world’s busiest hubs. The partial funding of SNAP, covering only half of normal benefits, reveals the limits of judicial intervention in sustaining essential services for Americans during a time of political turmoil. For allies dependent on U.S. logistical and regulatory stability, the shutdown signals potential vulnerabilities in crisis response, supply chain management, and economic continuity.


The Supreme Court tariff case carries even broader implications for international trade. If the Court upholds Trump’s interpretation of IEEPA, it would effectively grant the executive branch unilateral authority to impose tariffs under what many analysts believe to be a guise of a national emergency. Such a ruling would erode congressional oversight and could normalize the use of tariffs as instruments of coercive diplomacy. Trump’s administration has already used tariffs to influence NATO negotiations, pressure Latin American governments on migration, and retaliate against judicial actions in Brazil and Canada. A judicial endorsement of this approach would institutionalize economic nationalism as a permanent and domestically protected feature of U.S. foreign policy.


Conversely, if the Court rules against the administration, it could constrain the president’s ability to act swiftly in trade disputes, potentially reassuring allies but also creating short-term uncertainty in global markets. Treasury Secretary Bessent’s framing of the case as a national security issue reflects the administration’s strategy of linking economic policy to defense rights, blurring the line between trade regulation and strategic deterrence. The association between defense and economic policy has already influenced U.S. relations with the European Union, which accepted higher tariffs in exchange for security guarantees related to Ukraine.


The glaring domestic political polarization in the Mamdani-Cuomo race has also resonated with many people internationally. Mamdani’s criticism of Israel and support for Palestinian rights have drawn global attention, highlighting how U.S. municipal politics can intersect with foreign policy debates. The divisions within New York’s Jewish community mirror broader fractures in U.S. public opinion on Middle East policy. Should Mamdani win, his administration could become a symbolic focal point for progressive movements worldwide, challenging the alignment between U.S. urban governance and federal foreign policy priorities.


Overall, these developments suggest that the United States is entering a phase where internal political conflicts increasingly shape its external posture. The use of economic instruments like tariffs, funding restrictions, and shutdowns, as tools of political control reflects a shift toward transactional governance. For global partners, this raises questions about the reliability of U.S. commitments in trade, security, and humanitarian cooperation. For adversaries, it presents opportunities to exploit domestic divisions and institutional paralysis. For United States Citizens, this creates a domestic environment defined by uncertainty and division. The outcome of the Supreme Court case, the resolution of the shutdown, and the result of the New York City election will collectively play a role in defining the domestic and geopolitical trajectory of U.S. governance.

Key Actors

- United States federal government

- President Donald Trump and his administration

- Zohran Mamdani, Democratic nominee for New York City mayor

- Andrew Cuomo, independent candidate and former governor

- U.S. Supreme Court

- Treasury Secretary Scott Bessent

- Federal Aviation Administration and U.S. Department of Agriculture