After Tesla reported a steep drop in profits yesterday, CEO Elon Musk announced on an earnings call that he is stepping back a bit from his role leading the Department of Government Efficiency task force.
Musk’s announcement comes after there were indications that the divisive billionaire was already on his way out amid dicey poll numbers and reports he was becoming a political liability for President Donald Trump.
Speaking of stepping back, Sen. Dick Durbin, the No. 2 Democrat in the chamber for two decades, announced today that he will not seek another term. He is now the fifth sitting senator to announce a retirement this congressional term.
In Vatican City, Pope Francis’ body is now lying in state in St. Peter’s Basilica, where the public can pay their respects before his funeral on Saturday.
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And hints dropped by Trump and his treasury secretary seem to have eased investors’ trade war concerns, at least temporarily, as a U.S. stock market rally that began yesterday continued today.
Here’s the lunchtime lowdown:
Trump Administration Calms Markets on China
In remarks yesterday, Treasury Secretary Scott Bessent said he expected “there will be a de-escalation” in the administration’s trade war with China, while Trump said tariffs on China will “come down substantially” and backtracked on threats to fire Federal Reserve Chair Jerome Powell, all of which buoyed markets. The Wall Street Journal reports the administration could slash tax rates on Chinese imports in half in some cases, though China responded that the U.S. should stop its threats if it wants to negotiate. Read more.
Musk to Step Back From Politics
After Tesla yesterday reported a stunning 71% drop in profit during the first quarter of 2025, Musk said he would be “allocating far more” of his time to the embattled carmaker, but would continue to spend “a day or two per week” on government matters. Musk’s efforts advising Trump and DOGE – the agency which has initiated mass layoffs and targeted popular programs such as Social Security – have sparked backlash among consumers, who have taken to vandalizing Tesla cars and dealerships, returning their Teslas in record numbers and slapping “I bought this before Elon went crazy” stickers on those they keep. Musk’s political brand is bad enough that some Democrats are hoping he sticks around long enough to be a “central character” in their midterm messaging. Read more.
Legal Spat Continues in Abrego Garcia Case
U.S. District Judge Paula Xinis said last night that the administration is ignoring court orders, obstructing the legal process and acting in “bad faith” by refusing to provide information on the steps it has taken to facilitate the return of Kilmar Abrego Garcia, the Maryland man sent to prison in El Salvador. Xinis gave the administration until 6 p.m. today to provide information, but the Trump administration instead filed a motion this morning asking for the judge’s order to be paused and requesting relief from providing daily status updates. Read more.
Rubio No-Shows Ukraine Peace Talks
Top diplomats from the U.S., Ukraine, Germany, France and the U.K. bailed on talks today to discuss ending the Russia-Ukraine war after Secretary of State Marco Rubio canceled his plans to attend. Rubio’s decision comes after Kyiv rejected a ceasefire proposal from the Trump administration that required Ukraine to cede Crimea to Russia. Rubio said last week, “If it is not possible to end the war in Ukraine, we need to move on.” Read more.
Public Media Gets a Reprieve
A federal judge on Tuesday halted the Trump administration’s efforts to shut down Voice of America and other government-funded radio broadcasters. U.S. District Judge Royce Lamberth, an appointee of former Republican President Ronald Reagan, ordered the administration to “take all necessary steps” to bring employees back and resume news operations. The order came the same day as a decision from the bipartisan Federal Election Commission to unanimously dismiss a complaint from conservative activists accusing NPR of being controlled by the Democratic Party. Read more.
