U.S. Government Shutdown Enters Third Week as Partisan Divide Worsens

The political standoff in the United States has deepened as the government shutdown entered its third week on Monday, with Republicans and Democrats still unable to reach a compromise on a new funding bill to reopen federal operations.

The prolonged closure has left hundreds of thousands of federal workers furloughed, major public institutions such as the Smithsonian museums and the National Zoo closed, and key services like air traffic control under increasing strain.

Despite mounting frustration from citizens and mounting economic concerns, both parties remain entrenched in their positions, showing no immediate signs of compromise.

At the heart of the stalemate is a fierce disagreement over health care spending.

Senate Democrats have refused to support a short-term funding bill unless Republicans agree to restore subsidies under the Affordable Care Act (ACA) and reverse President Donald Trump’s cuts to Medicaid.

Republicans, on the other hand, insist that the government must first reopen before any policy negotiations can take place, accusing Democrats of “holding the budget process hostage.”

The impasse underscores the deep mistrust that has defined relations between both parties — now nine months into Trump’s second term.

While recent opinion polls suggest that a majority of Americans blame Republicans for the crisis, neither side has yet to gain a clear political advantage from the standoff.

Standoffs escalated further on Friday after the Trump administration dismissed hundreds of government employees, a move widely condemned as politically motivated and unprecedented in modern U.S. governance.

The White House defended the layoffs as part of broader “efficiency measures,” but critics say it was an attempt to pressure Democrats and consolidate control over key agencies.

Several of the terminations were later reversed after widespread confusion within government departments, exposing what observers described as chaotic management inside the administration.

In a bid to control the public narrative, President Trump assured that military personnel would continue to receive pay, presenting himself as a leader defending national security in difficult times.

He accused Democrats of “holding the government hostage”, saying they were using civil servants as bargaining chips.

However, Democrats have countered that narrative, accusing Trump of politicising the civil service and inflicting avoidable hardship on working families.

“This president is trying to turn public service into a political tool,” Senator Mark Kelly said. “It’s an attack on civil servants and the very idea of an independent government.”

Within the Republican camp, signs of internal friction are beginning to show.

While House Speaker Mike Johnson and Vice President JD Vance have maintained that Democrats are to blame for prolonging the shutdown, some lawmakers — including Marjorie Taylor Greene and Kevin Kiley — have criticised their leadership’s refusal to reconvene Congress to negotiate an end to the crisis.

Party insiders warn that the shutdown could deepen divisions within the GOP ahead of next year’s midterm elections, especially if the public continues to associate the crisis with Republican inflexibility.

Across the United States, the economic toll is beginning to bite.

Local businesses dependent on federal contracts are reporting losses, tourism has slowed, and public frustration is mounting, particularly in Washington, D.C., where government operations remain partially paralysed.

Unions representing furloughed workers have staged demonstrations in several cities, demanding that both sides return to the negotiating table.

Economists estimate that the shutdown could cost the U.S. economy billions of dollars if it extends into a fourth week.

For now, the standoff shows no sign of easing. Both parties appear determined to hold their ground — each calculating that the other will bear the greater political cost of public anger.

Until one side finds more advantage in compromise than confrontation, the shutdown — and the hardship it inflicts — may continue indefinitely.

Trump-Xi Meeting to Hold Despite Rising Trade Wars

Despite renewed trade tensions between the United States and China, plans for a high-profile meeting between US President Donald Trump and his Chinese counterpart, Xi Jinping, later this month remain on course, according to US Treasury Secretary Scott Bessent.

Bessent, who spoke on Fox Business Network on Monday, said both nations had “substantially de-escalated” hostilities following a week of tariff threats and export restrictions that had rekindled fears of a fresh trade war between the world’s two largest economies.

He confirmed that the meeting — scheduled to hold on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in South Korea — would proceed as planned.

“The 100% tariff does not have to happen if negotiations go well,” Bessent said. “President Trump and President Xi have a very good relationship, and both sides are communicating substantially again.”

The reassurance followed days of uncertainty triggered by Beijing’s October 9 decision to expand export controls on rare earth minerals, a move that provoked a sharp response from Washington.

President Trump had reacted angrily to the development, announcing plans for a 100% tariff on all Chinese goods beginning November 1, in what analysts feared could spark a renewed trade standoff.

However, Bessent disclosed that back-channel talks have since resumed, with staff-level negotiations expected to continue throughout the week.

He also hinted that China’s export decision may not have originated from Xi himself but possibly from lower-ranking officials, suggesting an element of miscommunication within Beijing’s bureaucracy.

Bessent’s comments echoed the US president’s own remarks on Truth Social on Sunday, where Trump struck a more conciliatory tone after days of heated rhetoric.

“Don’t worry about China, it will all be fine!” Trump posted. “Highly respected President Xi just had a bad moment. He doesn’t want depression for his country, and neither do I.”

The softer message appeared to soothe jittery investors, with US stocks rebounding sharply on Monday after a steep sell-off last Friday, which followed Trump’s initial tariff threat.

Still, Bessent was critical of Beijing’s latest actions, describing the rare earth restrictions as “a provocative move” and accusing China of attempting to “weaponize supply chains.”

“They’ve pointed a bazooka at the industrial base of the free world,” he said. “We’re not going to have it.”

He added that the US government was coordinating with key allies in Europe, India, and across Asia to reduce reliance on Chinese rare earths — minerals vital to the production of smartphones, electric vehicles, semiconductors, and defence equipment.

Beijing, in response, defended its export measures, insisting that they were retaliatory steps against Washington’s “provocative and damaging” policies, including the blacklisting of Chinese technology firms and the introduction of new port fees targeting vessels with links to China.

China remains the world’s largest supplier of rare earth minerals, while the US ranks among the biggest consumers — a reality that gives Beijing significant leverage in global supply chains.

Analysts say the upcoming Trump-Xi meeting in Seoul will be a critical test of both countries’ ability to manage competition without derailing global trade stability.

The two leaders are expected to discuss trade, technology, and regional security, with the rare earth issue now dominating the agenda.

Bessent reiterated that the US was not seeking confrontation but “fair and balanced trade relations.”

For now, both sides appear to be treading cautiously, hoping that the Seoul talks could pave the way for another temporary truce — and spare global markets another round of trade turmoil.

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