Trump's family is reportedly furious with John Kelly, and the sides may enter a 'death match'

Reuters

John Kelly and Jared Kushner at the White House in September 2017.

• Jared Kushner and his wife Ivanka Trump are reportedly squaring up for a "death match" with White House Chief of Staff John Kelly.
• Kushner had a horrendous day on Tuesday, in which he appeared to break the law, and had his security clearance downgraded.
• An article in the Washington Post also alleged that foreign officials had used his inexperience to manipulate him.
• But Kelly is on shaky ground too after botching domestic abuse allegations against Rob Porter, the former White House staff secretary who resigned.

Jared Kushner, the senior adviser and assistant to the president, and his wife Ivanka Trump are reportedly squaring up for a "death match" with White House Chief of Staff John Kelly, who they may feel betrayed them.

It follows a horrendous day for Jared Kushner on Tuesday, and would be the latest example of internal strife at the Trump White House.

"Javanka [Jared and Ivanka] and Kelly are locked in a death match. Two enter. Only one survives," a White House source told Axios' Mike Allen.

"Over the past few weeks I've found fewer people internally willing to defend Jared. ... Politically, I've never seen him so exposed," another source told Axios.

Kushner has faced wide criticism for his lack of full security clearance as he handles a basket of high-profile foreign policy initiatives for Trump.

On Tuesday, Kelly downgraded Kushner's security clearances, in a move that will likely damage his credibility as he tackles important initiatives like working on trade with China and towards peace between Israel and Palestinians.

On the same day, the Washington Post published a bombshell report saying that foreign officials in at least four countries had tried to manipulate Kushner into furthering their aims.

The foreign officials reportedly leveraged Kushner's lack of foreign policy experience and complicated business ties to push their agendas and find leverage.

Kushner's lawyer's spokesman dismissed the Post's story as "second-hand hearsay."

Also on Tuesday, Jordan Libowitz, a spokesman for the watchdog group Citizens for Responsibility and Ethics in Washington, told Business Insider that by endorsing Trump's announcement to run for office again in 2020 with his official White House title, Kushner may have committed "a clear violation of the Hatch Act."

The Hatch Act bars government employees from using their titles in political efforts, and has repeatedly tripped up Trump officials.

But despite the catastrophic day for Kushner, Kelly also appears to stand on shaky ground in the White House after reports surfaced that President Donald Trump was considering replacing him.

Trump was reportedly angered by Kelly's response to the scandal involving Rob Porter, the former White House staff secretary who resigned amid abuse allegations from his two ex-wives.

"Kelly is now just another staffer who could get fired any day of the week by Donald J. Trump," one person close to the White House previously told Business Insider's Allan Smith.

"Not that I expect him gone today or tomorrow. This is a lesson in what happens when the stabilizing force becomes the agent of chaos."

Rumors of tensions, rough relations, and possible ousters have plagued the majority of Trump's inner circle throughout his presidency.

Secretary of State Rex Tillerson and National Security Adviser H.R. McMaster have both also been rumored at different times to be leaving the administration, though the pair remain.

Allan Smith and Joe Perticone contributed to this report.