Axios AM

November 26, 2024
👋 Hello, Tuesday! Smart Brevity™ count: 1,490 words ... 5½ mins. Thanks to Noah Bressner for orchestrating. Copy edited by Bryan McBournie.
🚨 Situational awareness: President Biden and First Lady Jill Biden will attend Donald Trump's inauguration in January, the White House said. Go deeper.
1 big thing — Scoop: Trump eyes AI czar
President-elect Trump is considering naming an AI czar in the White House to coordinate federal policy and governmental use of the emerging technology, Trump transition sources tell me.
- Why it matters: Elon Musk won't be the AI czar, but is expected to be intimately involved in shaping the future of the debate and use cases, the sources said.
Behind the scenes: We're told the role is likely but not certain.
- Musk and Vivek Ramaswamy — who are leading Trump's new outside-government group, the Department of Government Efficiency (DOGE) — will have significant input into who gets the role.
- Musk — who owns a leading AI company, xAI — has feuded publicly with rival CEOs, including OpenAI's Sam Altman and Google's Sundar Pichai. Rivals worry Musk could leverage his Trump relationship to favor his companies.
🖼️ The big picture: Trump, partly in response to the enlarged coalition that fueled his victory, plans to be super-attentive to emerging technologies.
- Trump's transition has vetted cryptocurrency executives for a potential role as the first-ever White House crypto czar, Bloomberg News reported last week.
- The AI and crypto roles could be combined under a single emerging-tech czar.
Zoom in: The AI czar will be charged with focusing both public and private resources to keep America in the AI forefront.
- The federal government has a tremendous need for AI technology. The new czar would likely work with agency chief AI officers, which were established in President Biden's AI executive order, and could survive Trump.
- The person also would work with DOGE to use AI to root out waste, fraud and abuse, including entitlement fraud.
- The office would spur the massive private investment needed to expand the energy supply to keep the U.S. on the cutting edge.
The backstory: The idea has been kicking around Trumpworld for several months, as the transition considered structural changes at the White House to prioritize staffing for Trump's priorities.
- The model is similar to the National Energy Council that Trump said will be chaired by his designee for Interior secretary, North Dakota Gov. Doug Burgum. Trump's Energy nominee, fracking executive Chris Wright, will be a member of the council.
- Trump's announcement said the council "will consist of all Departments and Agencies involved in the permitting, production, generation, distribution, regulation, transportation, of ALL forms of American Energy. This Council will oversee the path to U.S. ENERGY DOMINANCE by cutting red tape, enhancing private sector investments across all sectors of the Economy, and by focusing on INNOVATION over longstanding, but totally unnecessary, regulation."
💬 Our thought bubble, from Axios technology policy reporter Maria Curi: An AI czar wouldn't require Senate consent, allowing the person to get to work on the administration's goals faster.
- The Biden administration, facing a slim majority in the Senate, never filled the role of U.S. chief technology officer, created by President Obama.
- Instead, other senior officials at the White House Office of Science and Technology Policy (OSTP) took the lead. Vice President Harris played a key ambassador-like role on AI.
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2. 💰 Trump promises Day 1 tariffs
President-elect Trump said last night he'll impose additional tariffs on China, Mexico and Canada after taking office, tying them to the flow of migrants and drugs into the United States, Axios managing editor Ben Berkowitz writes.
- Why it matters: Trump's tariff threats have already ignited fears of inflation and a trade war. Now he's committing to implementing tariffs right away.
Trump's declarations on Truth Social are a wake-up call for those in Washington and on Wall Street who thought his tariff talk was mostly bluster.
- In a series of posts, Trump said the new tariffs were tied directly to stopping the flow of drugs and migrants.
- A tariff of 25% on all goods coming from Canada and Mexico would take effect on Jan. 20, he said.
- Imports from China would face a 10% tariff "above any additional Tariffs," he wrote. He had previously spoken of a 60% tariff on Chinese goods.
Between the lines: By announcing the tariff plan almost two months in advance, all three governments will have time to respond — and potentially negotiate an alternative.
- Go deeper: "How Trump's Tariffs on China Changed U.S. Trade, in Charts" (WSJ gift link).
3. 🛒 Walmart's new tear


Walmart is on a roll and reeling in shoppers who previously spurned the retailer, zooming past rival Target and mounting a serious challenge to Amazon's digital turf, Axios' Nathan Bomey writes.
- Why it matters: Already the world's biggest company by revenue, Walmart is growing and transcending its previously down-market reputation.
🎨 The big picture: The Bentonville, Ark.-based retailer is expanding its appeal beyond middle America.
- 75% of Walmart's market share gains in the last quarter came from households earning more than $100,000 a year, the company said.
- The "sniffiness" with which many in the "chattering class" once treated Walmart has faded, GlobalData retail analyst Neil Saunders told Axios.
🎁 Zoom out: The holiday shopping season — including Black Friday (three days from now!), followed by Cyber Monday — poses an opportunity for the company to capitalize further on its momentum.
- Faced with soaring prices in recent years, many shoppers have been deal-hunting — including wealthier shoppers.
- During the inflation crisis, the company wielded its size and savvy to keep a lid on prices. Now that inflation is back to normal, the retailer is still winning over shoppers who are seeking out affordable groceries and sharp general merchandise.
👓 Between the lines: It doesn't hurt that rival Target is flailing. Same-store sales have declined in four of the last six quarters.
4. 🦃 1,000 words

President Biden issued his last two turkey pardons at the White House yesterday — freeing Peach and Blossom — before traveling to a "friendsgiving" event for service members and their families at a Staten Island Coast Guard station (pictured below).

5. 💊 RFK Jr.'s power
Robert F. Kennedy Jr. could use the vast bureaucracy of HHS to put a distinct stamp on vaccine policy, drug approvals and food regulation if confirmed, Axios' Adriel Bettelheim and Tina Reed write.
- Why it matters: Experts say RFK Jr.'s public calls for more transparency may translate into appointing like-minded individuals to advisory panels that could influence coverage of drugs, services and devices.
Reality check: This could result in shifting public health funding to chronic disease or environmental health and away from infectious disease.
- But with so many legal requirements and bureaucratic layers baked into the process, nothing is certain.
6. 👀Project 2025 ties to Trump 2.0


President-elect Trump has plucked several officials straight from the pages of Project 2025 — the Heritage Foundation-backed blueprint he claimed to know nothing about, Axios' Avery Lotz writes.
- Why it matters: The 900+-page document laid out plans to dramatically expand executive power and implement hardline conservative policies.
Most recently, Trump nominated Russ Vought, an architect of Project 2025, to return as director of the Office of Management and Budget.
- He was at least the fifth Project 2025 contributor Trump has picked for a top job.
7. 💡 Scoop: McCarthy launches innovation institute

Former House Speaker Kevin McCarthy (R-Calif.) is launching a new institute to help America win a "technological space race" on everything from AI to advanced manufacturing, Axios' Hans Nichols writes.
- Why it matters: McCarthy will tap his 17 years of congressional experience on technology and innovation issues to ensure that America stays ahead of competitors like China with his "ALFA Institute."
The former California lawmaker — who has been traveling the world giving paid speeches and advising corporations — plans to keep one foot planted in the policy world.
- "Our nation faces an inflection point," McCarthy writes in an open letter announcing his new plans.
- "Advancements in industries such as manufacturing, defense, energy and artificial intelligence all have the power to propel our society forward. ... For America to continue as the world's leading force for good, our government, private sector, and idea leaders must collaborate."
Between the lines: The institute's name — ALFA — is a nod to a NASA-designed module from the space race, chronicled in Tom Wolfe's book, "The Right Stuff."
8. 📖 1 fun thing: Word of the year

"Demure" is Dictionary.com's word of the year — a very mindful, very cutesy choice driven by TikTok, Axios' Sareen Habeshian writes.
- Why it matters: The adjective — traditionally used to describe a reserved or modest individual — has taken on new meaning this year to signify sophisticated appearance or behavior.
Content creator Jools Lebron's viral video describing her "very demure, very mindful" workplace-friendly makeup and clothing now has 5 million likes.
- The term sparked a frenzy, with everyone from celebrities to brands seeking to hop on the buzzword bandwagon.
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