April 25 (Reuters) - Highlights for U.S. President Donald Trump's administration on Tuesday: NORTH KOREA North Korea conducts a big live-fire exercise to mark the anniversary of its military's founding as a U.S. submarine docks in South Korea in a show of force.
RETREAT ON THE WALL The threat of a U.S. government shutdown this weekend appears to recede after Trump backs away from a demand that Congress include funding for his planned border wall with Mexico in a spending bill.
TAXES Trump's two tax policy chiefs are scheduled to go to Capitol Hill late on Tuesday to meet with top lawmakers as Washington digs for details on an impending Trump tax plan.
TRADE The United States and Canada face off in a renewed battle over softwood lumber that threatens to spill over into multiple other sectors, although Trump says he does not fear a trade war with Canada.
Mexico's government says it will fight any measures in a U.S. tax overhaul that break international trade rules, and threatens to review cross-border cooperation on migration and security if upcoming negotiations founder.
Mexico can impose annual trade sanctions worth $163.23 million against the United States after winning a dispute over trade in tuna fish, a World Trade Organization arbitrator rules.
SANCTUARY CITIES A U.S. judge blocks a Trump executive order that sought to withhold federal funds from so-called sanctuary cities for immigrants.
NATO Two of the Air Force's newest and most advanced jets land in the Baltic state of Estonia for the first time, a symbolic gesture meant to reinforce the United States' commitment to the defense of NATO allies that border Russia.
RUSSIA Former White House national security adviser Michael Flynn likely broke the law by failing to get permission to be paid for a trip to Russia in 2015, the leaders of the House of Representatives oversight panel say.
Two former U.S. officials, intelligence director James Clapper and Deputy Attorney General Sally Yates, will testify next month in a Senate investigation into alleged Russian meddling in the 2016 U.S. presidential election, the Senate Judiciary Committee says.
IVANKA TRUMP Ivanka Trump is booed in Berlin when she describes her father as a "tremendous champion of supporting families" and says she is still fine-tuning her role as first daughter and informal White House adviser.
(Compiled by Jonathan Oatis and Bill Trott; Editing by Lisa Shumaker and Peter Cooney)