Axios AM

April 09, 2025
Hello, Wednesday! Smart Brevity™ count: 1,998 words ... 7½ mins. Thanks to Dave Lawler for orchestrating. Copy edited by Bryan McBournie.
🚨Overnight headlines after President Trump's sweeping new tariffs took full effect at midnight ET, including a combined 104% on China:
- Reuters: "Markets carnage, US bonds and dollar hit" ... Bloomberg: "Bond Markets Crater" ... AP: "Trump disrupts global economic order even though the US is dominant."
🥊 Trump last night at a National Republican Congressional Committee dinner, re tariffs: "I know what the hell I'm doing. ... These countries are calling us up, kissing my ass [laughter]. They are dying to make a deal. ... 'I'll do anything, sir.'"
1 big thing: In just 80 days...
President Trump has done more unprecedented, lasting things in 80 days than many presidents do in a four-year term, Jim VandeHei and Mike Allen write in a "Behind the Curtain" column.
- Why it matters: There are 1,382 days to go in this term.
So let's step back and appraise the indisputable acts of power that have changed America in Trump's first two months and three weeks, as synthesized by Axios' Zachary Basu:
1. A new global economy.
- Trump has declared an all-out war on globalism, detonating every one of America's trading relationships — allies and adversaries alike — by imposing the largest tariffs in nearly a century.
- Trump's push for a manufacturing renaissance has helped secure at least $1.6 trillion in U.S. investment pledges. But his tariff rollout melted markets globally and dramatically raised the threat of a recession.
- The renewed trade war with China carries the biggest potential blast radius, with the world's two largest economies engaged in a tit-for-tat escalation that could snarl global supply chains.
2. A new world order.
- The rules-based system forged after World War II is dead: Trump has withdrawn from multilateral institutions, threatened to expand U.S. territory to Greenland, Gaza and Panama, and alienated America's closest allies.
- Canada, stewing in nationalist fervor from Trump's tariffs and his "51st state" mockery, has declared our close relationship "over" and is looking to other allies for security and economic cooperation.
- Europe is in the midst of its own radical transformation, singed and stunned by Trump's tariffs, constant insults, undermining NATO and siding with Russia over Ukraine.
- Years of U.S. strategy designed to isolate China is up in flames, with Asian allies turning to Beijing for trade refuge and Taiwan fearing it could meet the same fate as Ukraine.
3. A vast expansion of executive power.
- Trump is testing — and in some cases, obliterating — legal boundaries around presidential authority, including by punishing his political enemies and major law firms caught in the crossfire.
- Courts are grappling with hundreds of lawsuits challenging Trump's ability to override Congress on spending, immigration and federal employment — and facing intense pressure from his base over "traitorous" rulings. Attorney General Pam Bondi said this weekend on "Fox News Sunday" that since the inauguration, "we've had over 170 lawsuits filed against us. That should be the constitutional crisis right there. Fifty injunctions — they're popping up every single day."
- Trump has installed loyalists atop the Justice Department and FBI — declaring himself the country's "chief law enforcement officer" — and purged career officials and lawyers viewed as insufficiently MAGA.
4. A shrinking federal government.
- Elon Musk's DOGE cost-slashing has resulted in mass layoffs and the dismantling of whole agencies, including USAID and the Consumer Financial Protection Bureau.
- An estimated 60,000 federal workers have been fired in a broad effort to reduce the size of government, with deeper cuts still coming. Thousands have been reinstated, either through court orders or because officials moved impulsively.
- Cuts to Social Security's phone services are threatening disruptions for millions of seniors.
5. A sealed border.
- Illegal border crossings have plummeted to the lowest levels in decades, a testament to Trump's aggressive approach to curbing immigration through any means possible.
- That includes the unprecedented invocation of the Alien Enemies Act of 1798, which Trump used to deport hundreds of alleged Venezuelan gang members to a notorious mass prison in El Salvador.
- Trump also has taken aim at legal immigrants, revoking visas for college students involved in pro-Palestinian activism on the grounds that their presence could have "potentially serious adverse foreign policy consequences."
- In both cases, lack of due process has deeply alarmed immigration activists and civil libertarians — while Trump's broader crackdown has had a chilling effect on foreign travel to the U.S.
🔮 Coming for subscribers: Axios AM Executive Briefing — with expertise from Axios tech policy reporters Maria Curi and Ashley Gold — is about to publish a subscriber-only special report on the collision of AI and Washington. Subscribe here.
2. 🍿 Trump team shrugs at Navarro-Musk feud
Backstabbing was rampant in President Trump's first White House. In Trump 2.0, it's front-stabbing, Axios' Marc Caputo and Alex Isenstadt write.
- Peter Navarro, Trump's trade adviser, says on CNBC that Elon Musk is "not a car manufacturer — he's a car assembler." Musk tweets that Navarro "is truly a moron" and "dumber than a sack of bricks."
- At the White House, staffers shrug and chuckle. "Boys will be boys, and we will let their public sparring continue," Press Secretary Karoline Leavitt said at the podium. "We have the most transparent administration in history.
Why it matters: The Navarro-Musk feud over tariffs — Navarro is their biggest cheerleader, Musk thinks they're too much — reflects the smashmouth, unapologetic style that's part of Trump's policymaking process.

As Trump's controversial tariffs, layoffs, budget cuts and power grabs rip through American society, he and his top aides don't seem to mind the images of a couple of advisers airing their policy differences in very personal terms.
- "The fact is, we like it," a senior White House adviser said with a chuckle.
💡 Reality check: Trump's advisers squabble but are generally aligned with him.
- As a globalist free-trader who does significant business in China, Musk is this White House's odd man out on tariff policy. So it's one of the few areas where he has little input.
3. 🛒 Americans hit stores to beat tariffs
Americans appear to be stocking up on imported goods — TVs! Yoga pants! Wine! Cars! — that will likely see price increases with high tariffs, Axios' Emily Peck reports.
🛍 Apple stores were "slammed" with panic buyers, and transactions are up at big box retailers like BJs, Costco and Target, according to new data from Consumer Edge.
- The data shows increased sales volume for "shelf stable" groceries like instant coffee (+21%), ketchup (+18%) and beer (+3%).
After Trump's tariffs speech, Mark Cuban encouraged people to get out there and buy everything, warning that retailers would take advantage of the moment to jack up prices on stuff not subject to tariffs:
- "From toothpaste to soap, anything you can find storage space for, buy before they have to replenish inventory."

📉 Stat du jour: Trading volatility like we've seen this week has happened only four previous times since 1978, Axios' Felix Salmon reports.
4. 🌎 Mapped: America's climate divide

Climate anxiety is concentrated in big U.S. metros and some coastal communities, Axios' Alex Fitzpatrick writes.
- About 63% of U.S. adults overall are "somewhat" or "very" worried about global warming as of 2024, according to Yale Program on Climate Change Communication estimates based on survey data.
- Yet attitudes vary widely by location, particularly between rural areas and major cities.
While the map above may look like a sea of purple, "the vast majority of the population exists in some of these green places," says Jennifer Marlon, executive director of the Yale Center for Geospatial Solutions.
5. ⛏ Trump pushes coal to power AI

President Trump signed executive orders yesterday to use emergency authorities and a wartime law to boost the sagging coal industry, Axios' Daniel Moore writes.
- Why it matters: The White House is seeking to lean on coal-fired power —which has been in a steady decline in the U.S. over the last 15 years — to feed rising energy demand driven by artificial intelligence.
"We're ending Joe Biden's war on beautiful, clean coal," Trump said, flanked by coal miners in hard hats in the East Room.
- The orders slash "unnecessary regulations" and "rapidly expedite leases and coal mining on federal lands," Trump said.


🤨 Reality check: Reversing the long-term decline in U.S. coal demand will be a tall task.
- While the orders focus on trying to ramp up U.S. coal mining, virtually no coal plants are being proposed.
About 96% of upcoming generation projects are wind, solar and battery.
6. 🤖 Robotaxi review: Waymo in LA

After a day spent crisscrossing LA in a series of Waymo robotaxis, I can confidently say: I'm a convert, Axios' Joann Muller writes in her new Future of Mobility newsletter.
- Why it matters: Self-driving cars, which once seemed like science fiction, are now real, and you can hail a driverless taxi in a growing number of cities via Uber, Lyft or directly with Waymo.
🖼 The big picture: Alphabet-owned Waymo is the clear leader in autonomous vehicle technology.
- Waymo One provides more than 200,000 driverless rides per week in San Francisco, Los Angeles and Phoenix.
- The company is targeting Miami and Washington, D.C., next. And making Waymo vehicles available on the Uber app, too, starting with Austin and, soon, Atlanta.
🚘 Instead of renting a car during a recent trip to LA, I decided to take Waymos everywhere I could.
- I was out of luck getting to and from the airport. Waymo doesn't yet serve LAX and doesn't go on the highway.
- But it does provide 24/7 ride-hailing service across 79 square miles of the city, including Santa Monica, Hollywood and downtown.
🤖 The robotic Waymo Driver accelerates and brakes gently, so it's possible to work in the backseat without getting carsick.
- It's cautious, but not to a fault. It'll drive through a yellow light — but it'll also slow for pedestrians and bikers.
One fascinating incident occurred when the car hit a pothole unexpectedly, causing a large thunk. The impact was severe enough that the car pulled over to assess the damage.
- A message on the rear seat display, and on my phone, advised me that remote specialists were monitoring the issue: "Our team is aware of the interruption to your ride. Please keep your seat belt fastened and remain in the car unless there's an urgent need to exit."
In less than 30 seconds, we were on our way again.
- Keep reading ... Get Future of Mobility (weekly).
7. 👗Tariffs could lead to thrift boom
Soaring clothing prices from Trump's tariffs will likely send shoppers thrifting, Axios' Sareen Habeshian reports.
- Why it matters: Clothing imports stand to take a huge hit. The U.S. imports nearly all of its clothing and shoes — more than half from China (facing tariffs of up to 104%), Vietnam (46%) and Bangladesh (37%).
👖"We've seen that when supply chain disruptions occur and popular items become more scarce, people often turn toward secondhand options to get what they need at prices they can afford," said Ken Murphy, chief innovation officer at peer-to-peer marketplace OfferUp.
🇨🇳The latest: Trump is tripling tariffs affecting low-cost retailers like Temu and Shein. Packages valued at less than $800 enjoyed a "de minimis" exemption from added duties, which has enabled foreign online retailers to sell super-cheap items to American consumers.
8. 🎬 1 for the road: "Minecraft" rules box office


"A Minecraft Movie" set records over the weekend with the biggest box office debut for any video game adaptation in history, Axios' Sara Fischer writes.
- The Jack Black fantasy-comedy surprised analysts with a $163 million domestic box office debut — by far the biggest weekend opener this year.
Why it matters: Video game adaptations have become more popular with the rise of family entertainment on the big screen.

🎥 The big picture: Family-friendly entertainment has come to dominate the box office, as more families see movie theater trips as a cheaper alternative to weekend getaways.
- Last year, PG-rated films made up roughly one-third of ticket sales at the domestic box office, the highest percentage since 1995.
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