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      Trump confirms he’ll be negotiating his signature tax bill after Musk criticism

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      Donald Trump said he will be negotiating his signature tax bill after Elon Musk publicly criticised the president’s spending plan, saying it “undermines” cost-cutting efforts that the world’s richest man once spearheaded.Speaking to reporters on Wednesday, Trump acknowledged the bill “needs to get a lot of support” in Congress, adding “we have to get a lot of votes”. The president also said he was “not happy about certain aspects of it, but I’m thrilled by other aspects of it” and confirmed he would be negotiating the legislation.The remarks come after Musk said he was “disappointed to see the massive spending bill, which increases the budget deficit … and undermines the work that the Doge team is doing” in comments made to CBS as part of a longer interview due to run on its Sunday morning programme this weekend.Musk had been leading the “department of government efficiency” (Doge) since January, which was given the task of cutting state spending. He later announced in April he would be stepping back from the Trump administration after Tesla’s earnings plunged, and spending millions of dollars in a supreme court race that his Republican candidate ultimately lost.Musk now appears to be hitting out at Trump’s One Big Beautiful Bill Act, which was narrowly approved last week by the House of Representatives.The bill pushes ahead with a number of Trump’s campaign promises, including extending tax cuts for individuals and corporations and ending clean energy incentives enacted under Joe Biden.It also involves about $1tn (£741bn) in cuts to benefits aimed at supporting struggling households, including a health insurance scheme for low-income families, Medicaid, and Supplemental Nutrition Assistance Program (Snap) food stamps.However, the bill also funds the construction of a wall along the border with Mexico, as well as staff and facilities for mass deportations of undocumented immigrants. Even when taking cuts into account, the bill is expected to add about $2.3tn to the deficit, according to the non-partisan Congressional Budget Office.Musk told CBS: “I think a bill can be big, or it can be beautiful. But I don’t know if it can be both. My personal opinion.”The comments will fuel rumours of a growing rift between the billionaire and the US president, whom Musk helped bankroll last year. In total, Musk’s super political action committee donated $200m to Trump’s presidential campaign before the November election, which many credit with helping to return Trump to the White House.Musk also has business interests at stake, with Trump’s bill due to end a $7,500 tax credit for electric vehicles and to impose a $250 annual registration fee for owners. The Tesla boss has previously called for an end to those incentives, although that was months before the EV maker’s earnings started to wobble.skip past newsletter promotionafter newsletter promotionLast month, Tesla reported a 71% drop in first-quarter profits to $409m, compared with $1.39bn in the same period in 2024. Tesla’s stock has also suffered, with the company losing about a quarter of its market value since Musk took a top spot in Trump’s administration at the start of the year.Musk’s criticism is likely to fuel opposition by hardline Republicans, who threatened to block Trump’s legislation as it passes through the US senate unless the president rolls out deeper cuts that would reduce the national debt. One key senator, Rand Paul from Kentucky, told Fox News Sunday that the bill’s cuts were “wimpy and anaemic” and would “explode the debt”.However, Trump has already been treading on politically sensitive territory by supporting a bill that makes big cuts to programmes he promised to protect. He pledged multiple times on the campaign trail last year that he would not touch basic safety nets, including Medicaid.Some of the president’s “make America great again” supporters, including the former White House strategist Steve Bannon, have also warned against such a move, with one Missouri senator, Josh Hawley, saying that cutting health insurance for the working poor would be “politically suicidal”. More

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      Tourists from countries badly hit by Trump tariffs are staying away from US

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      Holidaymakers in countries hit the hardest by Donald Trump’s trade tariffs are taking the US off their list for trips abroad, according to online travel booking data.Findings from the hotel search site Trivago also suggest that UK and US travellers are increasingly choosing domestic holidays amid concerns over an uncertain economy.The company has seen double-digit percentage declines in bookings to the US from travellers based in Japan, Canada and Mexico. The latter two countries were the first on Trump’s tariff hitlist when he announced tariffs of 25% on 1 February.Canadians in particular were incensed at Trump’s repeated suggestions that its northern neighbour would be better off annexed as the 51st state of the US.According to Trivago’s findings, which were shared with PA Media, demand among Germans was also “down heavily”, with hotel bookings in the US showing a single-digit percentage decline.Germany is the largest economy in the EU, which Trump has repeatedly threatened with increased tariffs, most recently saying on Sunday he had “paused” a 50% tax he intended to introduce next month.There has not been a significant change in the numbers of UK holidaymakers travelling to the US. The UK has so far faced some of the lightest tariffs globally and last month struck a “breakthrough” trade deal with the US.Businesses operating in its $2.6tn tourism industry are becoming increasingly concerned about a “Trump slump” due to the turmoil the president’s tariff war is causing on the global economy.Last month, the federal government’s National Travel and Tourism Office released preliminary figures showing visits to the US from overseas fell by 11.6% in March compared with the same month last year.Bookings made via Expedia-owned Trivago also show that Americans are spending less on their trips, while there is higher demand for cheaper hotels and lower star categories.skip past newsletter promotionafter newsletter promotionTrump has levied tariffs on more than 180 countries, but has paused many of his tariffs for periods of up to 90 days while governments seek to negotiate deals.Recent booking data shows that in the UK there has been a 25% year-on-year leap in demand for domestic travel for the important months of July to September.“In times of uncertainty, people stay closer to home,” said Johannes Thomas, chief executive of Trivago.Trivago’s research has shown that London is the top destination for British tourists, followed by Edinburgh, where demand is up by nearly 30%, then York, Blackpool and Manchester. More

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      Donald Trump announces he will pause threatened 50% tariffs on Europe after call with EU chief – US politics live

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      Donald Trump has warned that if Vladimir Putin attempts to conquer all of Ukraine, it will lead to the “downfall” of Russia, while also criticising Volodymyr Zelenskyy in a Sunday night post on Truth Social.“I’ve always had a very good relationship with Vladimir Putin of Russia, but something has happened to him. He has gone absolutely CRAZY!” Trump wrote in a social media post, adding, “I’ve always said that he wants ALL of Ukraine, not just a piece of it, and maybe that’s proving to be right, but if he does, it will lead to the downfall of Russia!”Earlier on Sunday the US president told reporters that was he was “very surprised” that his Russian counterpart had intensified the bombardment of Ukrainian cities despite the US president’s efforts to broker a ceasefire.Pressed by a reporter to say if he was now seriously considering “putting more sanctions on Russia”, Trump replied: “Absolutely. He’s killing a lot of people. What the hell happened to him?”In his post on Sunday night, Trump also criticised Zelenskyy, saying the Ukrainian president was “doing his Country no favors by talking the way he does.”“Everything out of his mouth causes problems, I don’t like it, and it better stop.”Hello and welcome to the US politics live blog. I’m Tom Ambrose and will be bringing you all the latest news lines throughout the day.Donald Trump has announced that he will pause his threatened 50% tariffs on the European Union until 9 July, after a “very nice call” with EU chief Ursula von der Leyen.The European Commission president announced in a social media post that she had spoken with Trump and secured the delay to give the two sides more time to negotiate.European assets rallied on Monday, Reuters reported. The euro hit its highest level against the dollar since 30 April, while European shares surged and were poised to recoup the previous session’s losses.“Europe is ready to advance talks swiftly and decisively,” von der Leyen wrote. “To reach a good deal, we would need the time until July 9.”Brussels and Washington have been locked in negotiations in a bid to avert an all-out transatlantic trade war, after Trump’s tariff threat on Friday dramatically raised the stakes.Trump warned he would impose 50% tariffs on all of the bloc’s imports into the US, saying “discussions with them are going nowhere”, adding that the tariffs would be applied from 1 June. Trump claimed he was “not looking for a deal”, repeating his longstanding view that European states had “banded together to take advantage of us”.For the full story, see here:In other news:

      President Donald Trump said Vladimir Putin had “gone absolutely CRAZY” by unleashing the largest aerial attack of the war on Ukraine and said he was weighing new sanctions on Moscow, though he also scolded Ukrainian president Volodymyr Zelenskyy. Trump posted the remark on Truth Social as sleeping Ukrainians woke to a third consecutive night of Russian aerial attacks, listening for hours to drones buzzing near their homes and eruptions of Ukrainian anti-aircraft fire.

      The United States demanded that South Korea resolve the large trade imbalance between the countries during recent trade talks, South Korean media reported on Monday. The US repeatedly raised the issue of the trade imbalance in the commodity sector and both countries agreed it was necessary to address it, broadcaster YTN and the Yonhap news agency reported, citing an unnamed South Korean trade official who was part of the trade delegation.

      Trump said on Sunday his tariff policy was aimed at promoting the domestic manufacturing of tanks and technology products, not sneakers and T-shirts. Speaking to reporters before boarding Air Force One in New Jersey, Trump said he agreed with comments from Treasury Secretary Scott Bessent on 29 April that the US does not necessarily need a “booming textile industry” – comments that drew criticism from the National Council of Textile Organizations. “We’re not looking to make sneakers and T-shirts. We want to make military equipment. We want to make big things. We want to do the AI thing with computers,” Trump said.

      Malaysian prime minister Anwar Ibrahim said on Monday he has written to US president Donald Trump to organise a meeting between the United States and the Asean regional bloc. Malaysia is chair of the Association of Southeast Asian Nations grouping this year.

      Hong Kong’s education bureau has called on the city’s universities to “attract top talent” by opening their doors to those affected by the Trump administration’s attempt to ban Harvard from enrolling international students. Last week the Trump administration revoked Harvard’s Student and Exchange Visitor Program certification, effectively banning the university from accepting foreign students.

      Federal judges are discussing a proposal that would shift the armed security personnel responsible for their safety away from the Department of Justice and under their own control, as fears mount that the Trump administration is failing to protect them from a rising tide of hostility. The idea of creating their own armed security detail emerged at a meeting of about 50 federal judges two months ago, according to a Wall Street Journal report.

      Trump has been warned by fiscal hawks within his own party in the US senate that he must “get serious” about cutting government spending and reducing the national debt, or else they will block the passage of his signature tax-cutting legislation known as the “big, beautiful bill”. More

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      Trump warms to Nippon Steel, backing ‘partnership’ with US Steel

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      Donald Trump has thrown his weight behind a “partnership” between US Steel and Nippon Steel, months after insisting he was “totally against” a $14.9bn bid by the Japanese firm for its US rival.While the US president stopped short of an all-out endorsement of the takeover, he announced a deal between the two businesses on social media on Friday.Trump’s predecessor, Joe Biden, had blocked Nippon’s acquisition of US Steel, citing national security concerns, during his final weeks in office. The Trump administration has since been reviewing the proposal.Under the arrangement announced by Trump on Friday, US Steel would remain in the US, with its headquarters in Pittsburgh, he stressed, announcing plans to hold a “big rally” in the state next week.“This will be a planned partnership between United States Steel and Nippon Steel, which will create at least 70,000 jobs, and add $14 Billion Dollars to the U.S. Economy,” the president claimed on Truth Social, his social network. “The bulk of that Investment will occur in the next 14 months.”Shares in US Steel surged more than 21% after Trump’s announcement on Friday afternoon.Nippon and US Steel did not immediately respond to requests for comment.The United Steelworkers union had urged the president to reject Nippon’s bid, dismissing the firm’s commitments to invest in the US as “flashy promises” and claiming it was “simply seeking to undercut our domestic industry from the inside”.Trump’s position on Nippon’s approach has shifted significantly. Just in December, he declared he was vehemently opposed to the transaction. “As President, I will block this deal from happening,” he wrote. “Buyer Beware!!!”By last month, however, he had somewhat softened his stance, stating only that he wanted US Steel to remain in the US. “We don’t want to see it go to Japan,” he said. More

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      Trump says he is hitting EU with 50% tariff as trade talks are ‘going nowhere’

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      Donald Trump has said he will impose a 50% tariff on all EU imports to the US from 1 June after claiming trade talks between the two trading blocs were “going nowhere”.In a surprise announcement, the US president posted on his Truth Social platform that his long-running battle to secure concessions from the EU had stalled.He accused the EU of taking advantage of the US on trade, saying: “Our discussions with them are going nowhere! Therefore I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”Speaking to reporters in the Oval Office, Trump claimed the EU had “taken advantage” of the US and claimed the new tariffs would be imposed unless EU companies moved their operations to the US.“It’s time that we play the game the way I know how to play the game,” said Trump.Stock markets slumped in response to the news, the tech-heavy Nasdaq closed down 1% as Trump also signalled plans to impose tariffs on Apple, Samsung and other phone manufacturers. The broader S&P 500 lost 0.68%. The STOXX Europe 600 index fell by 1.7%. In London the FTSE 100 closed down 0.2% after initially dropping as much as 1.5%. Germany’s car makers were particularly hard hit, with BMW down 3.7%, Volkswagen off 2.6% and Mercedes-Benz down 4%.The US imposed a 20% “reciprocal” rate on most EU goods on 2 April, but halved that rate a week later until 8 July to allow time for talks. It has retained 25% import taxes on steel, aluminium and vehicle parts and is threatening similar action on pharmaceuticals, semiconductors and other goods.skip past newsletter promotionafter newsletter promotion“This is a major escalation of trade tensions,” said Holger Schmieding, the chief economist at Berenberg, on Friday. “With Trump you never know but this would be a major escalation. The EU would have to react and it is something that would really hurt the US and European economy.”EU negotiators have been locked in meetings with White House representatives since Trump’s so-called “liberation day” tariffs were first announced. Dozens of countries have been holding discussions to try to bring down their own levies before the 90-day pause elapses.The White House has relented on many of its most onerous tariffs, including lowering total tariffs on Chinese goods from 145% to 30% after what Trump declared were constructive talks with Beijing, which lowered its retaliatory border taxes from 125% to 10% in response.A week ago the US president appeared to acknowledge that Washington lacked the ability to negotiate deals with scores of countries at once, saying the US would instead send letters to some trading partners to unilaterally impose new tariff rates.Perceptions of an easing back on a hardline approach to trade brought a period of calm to stock markets, but Friday’s threat of a 50% levy on EU goods, plus a separate threat made the same day of 25% tariffs on iPhones made abroad, have brought an end to the peace.The EU presented a fresh trade proposal to the US on Thursday. The offer included phased tariff cuts on non-sensitive goods, plus cooperation on energy, AI and digital infrastructure. The bloc was readying about $108bn in retaliatory tariffs if talks failed.To sweeten the deal, EU officials were also willing to extend a 2020 tariff-free arrangement on US lobster imports, according to the Financial Times. But it appears to have proved insufficient to persuade the US president to sign a deal allowing only his 10% universal tariff to apply to the EU, as it does the UK. More

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      The US credit rating has been downgraded. But there’s an easy fix for our debt | Robert Reich

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      On Friday, the credit rating of the United States was downgraded. Moody’s, the ratings firm, announced that the government’s rising debt levels would grow further if the Trump Republican package of new tax cuts were enacted. This makes lending to the US riskier.Moody’s is the third of the three major credit-rating agencies to downgrade the credit rating of the United States.So-called “bond vigilantes” have already been selling the US government’s debt, as the Republican tax package moves through Congress. They’re expected to sell even more, driving long-term interest rates even higher to make up for the growing risk of holding US debt.Some rightwing Republicans in Congress are using the Moody’s downgrade to justify deeper spending cuts in Medicaid, food stamps and other social programs that lower-income Americans depend on.But, hello? There’s a far easier way to reduce the federal debt. Just end the Trump tax cuts that mainly benefit the wealthy and big corporations – and instead raise taxes on them.I’m old enough to remember when the US’s super-rich financed the government with their tax payments. Under Dwight Eisenhower – hardly a leftwing radical – the highest marginal tax rate was 91%. (Even after all tax credits and deductions were figured in, the super-rich paid way over half their top marginal incomes in taxes.)But since the Reagan, George W Bush and Trump 1 tax cuts, tax rates on the super-rich have plummeted.So instead of financing the government with their taxes, the super-rich have been financing the US government by lending it money.skip past newsletter promotionafter newsletter promotion(You may have heard that the US’s debt is held mainly by foreigners. Wrong. More than 70% of it is held by Americans – and most of them are wealthy.)This means that an ever-increasing portion of the taxes from the rest of us are dedicated to paying ever-increasing interest payments on the debt – payments that go largely to the super-rich.So when the debt of the United States is downgraded because Trump Republicans are planning another big tax cut mainly benefiting the rich and big corporations, most Americans could end up paying in three different ways:

      They’ll pay even more interest on the growing debt – to the super-rich.

      They’ll pay higher interest rates on all other long-term debt. (As higher rates on treasury bonds waft through the economy, they raise borrowing costs on everything from mortgages to auto loans.)

      The debt crisis will give Republicans even more excuse to do what they’re always wanting to do: slash safety nets. So many Americans could lose benefits they rely on, such as Medicaid and food stamps.
      The “bond vigilantes” are not the cause of this absurdity. Neither is Moody’s or the other credit-rating agencies. Nor, for that matter, is the growing national debt.What’s the underlying cause? Just follow the money. It’s the growing political power of the super-rich and big corporations to lower their taxes at the expense of most Americans.

      Robert Reich, a former US secretary of labor, is a professor of public policy emeritus at the University of California, Berkeley. He is a Guardian US columnist. His newsletter is at robertreich.substack.com More

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      JP Morgan chief warns of ‘complacency’ as markets look past credit downgrade

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      JP Morgan chief executive Jamie Dimon warned on Monday that investors were being too complacent as markets shook off news that the US has lost its last triple-A credit rating amid fresh concern over the federal government’s burgeoning debt pile.Credit ratings agency Moody’s dealt a blow to Washington on Friday when it stripped the US of its top-notch rating, downgrading the world’s largest economy by one notch to AA1 and become becoming the last of the big three agencies to drop its triple-A rating for the US.The announcement unnerved markets on Monday morning, but stock markets had recovered by the end of the day.Speaking at JP Morgan’s annual investor day meeting in New York, Dimon warned against complacency. “We have huge deficits; we have what I consider almost complacent central banks. You all think they can manage all this. I don’t think [they can],” he said.Dimon said he saw an “extraordinary amount of complacency” and added that he believes the possibility of stagflation – a recession with rising prices – was far higher than investors believe.Moody’s downgrade came as Donald Trump struggles to push his “big, beautiful” tax and spending bill through Congress, Moody’s said it expected the US budget deficit to keep rising.“Successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs,” Moody’s said, announcing its downgrade. “We do not believe that material multi-year reductions in mandatory spending and deficits will result from current fiscal proposals under consideration.”Trump administration officials sought to play down the significance of the setback. “Moody’s is a lagging indicator,” Scott Bessent, the treasury secretary, told Meet the Press on NBC on Sunday.The US president has himself remained silent on the downgrade. On Monday morning, he used posts on his Truth Social platform to criticize celebrities including Beyoncé and Bruce Springsteen, who castigated Trump on stage in Manchester last week, for supporting his political rivals.During a rare Sunday night vote, House Republicans advanced Trump’s tax cut and spending package out of a key committee. It has been estimated that the proposed bill could add as much as $5tn to the US’s $36.2tn debt pile over the next decade.On Wall Street, the benchmark S&P 500 fell during early trading, before recovering its losses to close marginally higher, while the tech-focused Nasdaq also closed broadly flat after reversing early declines. The FTSE 100 rose 0.2% in London.Bond markets also came under pressure, with the yield on 30-year US treasury bonds climbing 13 basis points to 5.026%. Yields rise as bond prices drop; an increase signals that investors are seeking a higher return for holding US debt. The dollar weakened against a basket of currencies.“Over the next decade, we expect larger deficits as entitlement spending rises while government revenue remains broadly flat,” said Moody’s. “In turn, persistent, large fiscal deficits will drive the government’s debt and interest burden higher. The US’s fiscal performance is likely to deteriorate relative to its own past and compared with other highly rated sovereigns.” More

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      US treasury secretary says Walmart will ‘eat some of the tariffs’ after Trump demand

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      The US retail giant Walmart will “eat some of the tariffs” in line with Donald Trump’s demands, the president’s treasury secretary Scott Bessent insisted on Sunday, claiming he received the assurance in a personal phone call with the company’s chief executive, Doug McMillon.A spokesperson for Walmart said the company would not comment on conversations between its executives and administration officials. However, a source familiar with the conversation said the phone call between Bessent and McMillon was arranged many days prior to Trump’s post – and that the company’s position had not changed.Walmart said this week it had no alternative to raising prices for consumers beginning later this month because it could not absorb the cost of the president’s tariffs on international trade, which have caused turmoil in international markets.The statement provoked an angry response from Trump, who posted a rant to his Truth Social network on Saturday saying the company should “eat the tariffs and not charge valued customers anything”.According to Bessent, speaking on Sunday to NBC’s Meet the Press, Walmart is now promising exactly that.“I was on the phone with Doug McMillon, the CEO of Walmart, yesterday. And Walmart is, in fact, going to, as you describe it, eat some of the tariffs, just as they did in ‘18, ‘19, and ‘20,” Bessent said after host Kristen Welker asked if the president was asking American companies to be less profitable.“What you’re describing was Walmart’s earnings call. The other thing the companies have to do – they have to give the worst case scenario so that they’re not sued.”On Thursday, McMillon said in the earnings call that his company, a bellwether of US consumer health, was moving to protect itself against the impacts of Trump’s tariffs, despite the president’s administration announcing a pause in its trade war with China that analysts called “capitulation day”.“We will do our best to keep our prices as low as possible but given the magnitude of the tariffs, even at the reduced levels announced this week, we aren’t able to absorb all the pressure given the reality of narrow retail margins,” he said.Walmart’s chief financial officer, John Rainey, told CNBC that the company, which has thousands of stores across the US, was “wired for everyday low prices”. But he said the tariffs were “more than any retailer can absorb” – and that consumers would begin to see higher prices towards the end of May and “certainly much more in June”.Trump announced plans for an unprecedented barrage of tariffs against numerous countries on 2 April, a date he called “liberation day”.For too long, he said, the US had been “looted, pillaged, raped and plundered by nations near and far”, and he presented a list of countries and territories that would receive tariffs, ranging from numerous US allies and longtime trade partners to barren, remote islands near Antarctica occupied only by penguins.The president’s strategy, which he insisted would lead to negotiations and trade deals with at least 150 countries, was variously ridiculed and condemned as flawed and unworkable. And it created an ongoing six weeks of chaos with higher prices, crashing stock markets and slowing economic growth.He has since attempted to walk back many of the excesses of the policy, including this week’s announcement that, for an initial 90-day period, tariffs on China – a dominant supplier to Walmart and myriad other US companies – would be cut from 145% to 30%.The White House called it a “total reset” in trade relations and followed up on Friday by announcing that it would not, after all, negotiate with many of the countries, but instead unilaterally impose new tariff rates.“[It is] not possible to meet the number of people that want to see us,” Trump told a meeting of business leaders in the United Arab Emirates during his tour of Gulf states.“We have 150 countries that want to make a deal, but you’re not able to see that many countries.”Bessent told CNN’s State of the Union in a later appearance on Sunday that the US was focused on its “18 most important trading relationships” – and that he expected trade talks to continue with a number of countries leading to a series of regional deals. More