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Today β€” 9 May 2025Axios News

Trump's "weak tea" tax on the rich

9 May 2025 at 14:25

President Trump is half-heartedly floating the idea of raising taxes on rich people, creating a new tax bracket for those individuals earning more than $2.5. million.

Why it matters: This isn't as meaningful as it looks β€”Β the few high-income people it affects won't likely feel too much pain from the proposal, and other tax cuts under consideration would help offset any increase for them.


  • But it's still surprising and extraordinary that the GOP, which has been cutting income taxes on rich people since the 1980s, is proposing anything like this at all.

The big picture: Republicans have been actively working to be seen as a working class party, not the party of the super rich.

  • "This is to pay for working- and middle-class tax cuts that were promised, and protect Medicaid," an administration official told Axios' Hans Nichols.

How it works: Under the Trump idea, the tax rate on ordinary income past $2.5 million for an individual, or $5 million for a married couple, would rise 2.6 percentage points.

  • That would create a new top tax bracket of 39.6% β€”Β exactly what the top tax bracket was back in 2017, before Congress passed Trump's first tax bill.

Yes, but: Back then the top tax bracket covered individuals earning more than $418,400 β€”Β this year the top bracket starts at $626,350 for an individual or $751,600 for a married couple.

  • With this new proposal, all income between $626,350 and $2.5 million would still be taxed at 37%, a lower rate than the top tax rate in 2017 before Trump's first tax bill passed.
  • The tax hike would only apply to ordinary income β€”Β but the incomes of the rich disproportionately come from capital gains. Those tax rates wouldn't change.

By the numbers: The proposal would impact about 0.1% to 0.2% of all taxpayers, estimates chief economist Josh Bivens of the left-leaning Economic Policy Institute, who a few years back floated the idea of levying a 10% surtax on those with incomes above $2 million β€”Β a far more painful measure.

  • Those folks bringing home these jumbo paychecks likely include a lot of high-paid doctors, some professional athletes and executives.

For the record: "The President has said he himself, personally, would not mind paying a little bit more to help the poor in the middle class and the working class in this country," White House press secretary Karoline Karoline Leavitt said on Friday.

  • But, she added "these negotiations are ongoing on Capitol Hill."

The bottom line: The Trump idea would likely raise under $30 billion a year, Bivens estimates. That's $300 billion for ten years β€”Β compared to $5 trillion cost of the tax cut extension.

  • The Tax Policy Center at Brookings estimates that about 80,000 households would be impacted if there's a new bracket that starts at $2.5 million for individuals β€”Β that would raise $8.2 billion in 2025.
  • "This proposal is better than nothing, but it's really weak tea," says Bivens.

GOP rallies around embattled Democratic Sen. John Fetterman

9 May 2025 at 13:41

A trio of Republican senators came to the defense of their Democratic colleague John Fetterman on Friday, accusing the media of a smear campaign.

Why it matters: It's unusual to see this level of public defense for a member of the opposing party. But the GOP's distrust and distaste of the media is superseding political differences.


  • A string of news articles, including from Axios, have revealed concerns from people close to the senator about whether the Pennsylvania Democrat's long-acknowledged mental health issues are affecting his work.

1️⃣ Sen. Dave McCormick (R-Pa.) was first to publicly push back, calling to "stop these vicious, personal attacks against Senator Fetterman, his wife, and his health."

  • "He is authentic, decent, principled, and a fighter. These disgraceful smears against him are not the John that I know and respect," McCormick wrote in a X post on Friday.

2️⃣ Sen. Tom Cotton (R-Ark.), chair of the Senate GOP conference, called Fetterman a "decent and genuine guy."

  • "The radical left is smearing him with dishonest, vicious attacks because he's pro-Israel and they only want reliable anti-Israel politicians," Cotton said.

3️⃣ Sen. Chuck Grassley (R-Iowa) posted: "The media ought to lay off Senator Fetterman."

Between the lines: Multiple Senate GOP sources argued that Fetterman was just being attacked by people in his own party because of his staunch pro-Israel stance, and a handful of votes with Republicans.

  • Coverage of politicians' health is a touchy subject right now, especially with former President Biden making his first press tour since leaving office.
  • Some sources said the Fetterman health concerns should have been litigated in 2022 after his stroke, and that unlike Biden, senators interact with Fetterman themselves.

The bottom line: One source simply said they weren't surprised by the defense because Republicans are used to what they see as unfair negative coverage.

House Democrats clash with police, Newark mayor arrested at ICE facility

9 May 2025 at 13:10

The mayor of Newark was arrested Friday outside an Immigration and Customs Enforcement facility where law enforcement scuffled with a group of protesters that included three House Democrats.

Why it matters: The Department of Homeland Security is alleging the lawmakers "stormed" the facility, a characterization the lawmakers' offices are disputing.


  • Footage of Newark Mayor Ras Baraka's arrest obtained by Axios shows a clash between law enforcement and a group of demonstrators including Reps. Bonnie Watson Coleman (D-N.J.), Rob Menendez (D-N.J.) and LaMonica McIver (D-N.J.).
  • The lawmakers said they were attempting to investigate ICE's controversial reopening of the Delany Hall facility to house detained migrants.

The other side: "Today, as a bus of detainees was entering the security gate of Delaney Hall Detention Center, a group of protestors, including two members of US Congress, stormed the gate and broke into the detention facility," said DHS spokesperson Tricia McLaughlin.

  • "These members of Congress storming into a detention facility goes beyond bizarre political stunt and puts the safety of our law enforcement agents and the detainees at risk," McLaughlin said.
  • "Members of Congress are not above the law and cannot illegally break into detention facilities. Had these members requested a tour, we would have facilitated a tour of the facility. This is an evolving situation."

The other side: Spokespeople for Watson Coleman and McIver pushed back on McLaughlin's claim that the lawmakers "stormed" the facility.

  • "I don't think that's a fair characterization. They're here doing their jobs," said Hanna Rumsey, a spokesperson for McIver, who declined to go into further detail on how the lawmakers gained access to the facility.
  • Watson Coleman's office told Axios they "arrived at Delaney Hall today at about 1PM to exercise their oversight authority as prescribed by law. After a period of explaining the law to the officials at the site they were escorted in."
  • The claim that they stormed the facility, the spokesperson said, is "factually inaccurate."

Zoom out: The incident comes as Democrats are trying to stage acts of fierce resistance to the Trump administration β€” particularly its hardline immigration policies.

  • Several lawmakers have flown to El Salvador in recent weeks to meet with Kilmar Abrego Garcia, an erroneously deported Maryland man whose return has been ordered by the Supreme Court.

Why the conclave elected Robert Prevost, now Pope Leo XIV

9 May 2025 at 13:07

The Vatican's veil of secrecy is beginning to lift, shedding light on how 133 cardinals from around he world unexpectedly coalesced behind Chicago native Robert Prevost, now Pope Leo XIV.

The big picture: Prevost benefitted from being the "least American" of the U.S. cardinals, from being an acolyte of Pope Francis' but not a "photocopy," and from his reputation as a good listener and quietly effective administrator, his fellow cardinals revealed on Friday.


The quiet American

Prevost was hardly mentioned in pre-conclave media coverage and was a non-factor in the betting markets β€” but he was the subject of intense interest among his fellow cardinals in the days between their arrival in Rome and the start of the conclave.

  • "I was surprised at how many of my colleagues asked me... 'do you know this Roberto Prevost?'" Timothy Dolan, the Archbishop of New York, said at a press conference alongside fellow North American cardinals.
  • The truth was Dolan knew very little about Prevost, who spent most of his adult life away from the U.S. β€” much of it as a missionary and later bishop in Peru, where he gained dual citizenship.
  • When the American cardinals posed for a photo ahead of the conclave, Prevost wasn't even in it.

There was a longstanding belief that an American would never be selected pope, because the U.S. is already a geopolitical superpower.

  • But when it came to Prevost, the fact that he was an American was "almost negligible in the deliberations of the conclave, surprisingly so for me," said Robert McElroy, the archbishop of Washington.
The cardinals gather for the conclave. Photo: Francesco Sforza/Vatican Media/Getty Images

Francis' heir, but his own man

Prevost only became a cardinal in 2023, but Pope Francis made him one of the senior-most figures in the Catholic hierarchy earlier this year by elevating him to the rank of cardinal-bishop.

  • He was seen as close to his predecessor both personally and in terms of outlook, but somewhat more moderate in temperament and on some ideological questions than the more fiery Francis.
  • That made him a continuity candidate but also a plausibly acceptable choice for some who had quibbles with Francis.
  • The chatter among the electors ahead of the conclave was "we're looking for someone following in the pathway of Francis, but we're not looking for a photocopy," McElroy said.

"He runs a great meeting"

Francis made Prevost the head of the powerful Curia department responsible for appointing bishops, bringing him into closer contact with senior figures in the church, including some who later elevated him to the papacy.

  • Dolan said one of the first pieces of insight he picked up about Prevost was "he runs a great meeting, which not everybody does."
  • Multiple cardinals said they saw Prevost as a good listener and an effective administrator, while others were impressed by their interactions with him ahead of the conclave.
  • "It wasn't that he got up and made this overwhelmingly convincing speech that just wowed the body," reflected Cardinal Wilton Gregory. "But I do believe he engaged quite effectively in the smaller group conversations."
North American cardinals holding a press conference today. Photo: Alberto Pizzoli/AFP via Getty

"A mad dash to unity"

The cardinals are sworn to secrecy about what happened inside the conclave itself, but it's clear that momentum shifted strongly in Prevost's favor during the three rounds of voting on the second day.

  • "There was a great movement on the second day β€” a great movement within the body that was there, and it could be nothing other than the grace of God moving us toward this consensus that I thought it would take a lot more time to get to," McElroy said.
  • The swift arrival of white smoke led some to speculate the winner was Francis' deputy and the betting markets' favorite, Pietro Parolin. But reports in the Italian press suggest Parolin fell victim to the old adage that "he who enters as pope leaves as cardinal."
  • The Corriere Della Serra newspaper claimed β€” sprinkling in many grains of salt β€” that Parolin was still leading Prevost on the third ballot, but stepped aside when it became clear he couldn't reach the necessary two-thirds majority.
"We have a pope." Photo: Alberto Pizzoli/AFP via Getty

"Accepto"

Dolan was sitting directly behind Prevost as votes were counted during the fourth and final ballot, and saw the soon-to-be pope drop his head as his name was repeated over and over again.

  • When he crossed the threshold of 89 votes "there was great ovation in the Sistine Chapel," Dolan told SirusXM's "Catholic Channel."
  • It was then up to Parolin, as the senior-most cardinal elector, to stand before Prevost and ask whether he would accept the role being entrusted to him. "Accepto," Prevost replied.
  • Then Parolin asked by what name the new pope wished to be called. After a brief pause he answered: "Leo."

Library of Congress gets collection of pioneering Chicano journalist RaΓΊl Ruiz

9 May 2025 at 10:54

The Library of Congress has acquired the photographs and manuscripts of RaΓΊl Ruiz, a leading journalist in the Chicano Movement in Los Angeles during the 1960s and 1970s.

Why it matters: The acquisition was one of the last obtained under Librarian of Congress Carla Hayden before President Trump fired her late Thursday.


  • Hayden was abruptly dismissed following criticism from conservatives about the Library of Congress' posts and collections on people of color.

What they're saying: "The Ruiz collection speaks to the heart of the Chicano Movement and will be an important resource for the study of journalism and Latino history," said Adam Silvia, curator of photography in the library's Prints & Photographs Division.

Driving the news: The Library of Congress announced Thursday that it obtained the Ruiz collection after it was donated by Ruiz's daughter, Marcela Ponce, and close friend, Marta E. SΓ‘nchez, a Loyola Marymount University professor.

Photo of original La Raza magazine layout from the 1960s. Photo: Library of Congress

Context: Ruiz (1940-2019) was an activist, journalist, photographer, educator and political candidate who advocated for the rights of Mexican Americans.

  • He was perhaps best known as the editor of the bilingual La Raza newspaper and magazine.
  • His groundbreaking periodicals covered the East LA Walkouts in 1968, the Chicano Moratorium during the Vietnam War and other issues facing the Chicano community.
  • His photos were often reprinted in bilingual newspapers across the country, from San Antonio to Chicago.
Girls pump fists at a Chicano Movement protest in Los Angeles, California in the late 1960s or early 1970s. Photo: RaΓΊl Ruiz/Library of Congress

Zoom in: The RaΓΊl Ruiz Chicano Movement Collection, which is available by appointment, contains an estimated 17,500 photos taken by Ruiz.

  • It also offers nearly 10,000 pages of manuscripts, which include original correspondence as well as the unpublished draft of Ruiz's book on Los Angeles Times journalist RubΓ©n Salazar.
  • One is Ruiz's iconic picture of the scene where Salazar was fatally struck by a round of tear gas fired by a Los Angeles County Sheriff's deputy during a protest against the Vietnam War.
Scene of the sheriff deputy killing of Los Angeles Times journalist RubΓ©n Salazar in Los Angeles, 1970. Image shows a sheriff's car parked in front of "The Silver Dollar" bar and cafΓ©, with two armed cops aiming at it. Photo: RaΓΊl Ruiz/Library of Congress

Between the lines: The Trump administration has purged several government websites of mentions about communities of color following several of the president's executive orders.

  • The orders follow the administration's reinterpretations of Civil Rights-era laws to focus on "anti-white racism" rather than discrimination against people of color.

What we're watching: As of now, the website announcing the Ruiz collection and some of the photos is still live.

  • That could change soon if the administration deems them a violation of the president's anti-DEI executive order.

Go deeper: Defense Department restores Jackie Robinson webpage after outcry

Hegseth cancels Israel trip to join Trump on Air Force One

9 May 2025 at 10:09

Secretary of Defense Pete Hegseth cancelled his trip to Israel, which had been planned for Monday, in order to join President Trump on Air Force One for his trip to the Middle East, according to three Israeli and U.S. officials.

Why it matters: Trump inviting Hegseth to travel with him to the Middle East is a signal that the president continues to embrace his secretary of defense even amid the storms that have surrounded him over the last three months.


  • In an interview with NBC's Kristen Welker last week Trump said Hegseth "is doing a very good job" and that his job as secretary of defense is "totally safe."

Behind the scenes: According to an Israeli official Hegseth's trip plan to Israel has been ready for several days.

  • He was supposed to meet his counterpart, Israel Katz, and prime minister Netanyahu. Briefings aboard an Israeli navy ship off the coast of Gaza were also on the agenda, the official says.
  • The plan was for Hegseth to travel to Saudi Arabia from Israel on Tuesday and join Trump's visit.
  • But on Thursday, Hegseth's team notified the Israeli ministry of defense that the trip is canceled because president Trump asked Hegseth to travel with him from Washington to Saudi Arabia on Air Force One, an Israeli official said.
  • Two U.S. officials confirmed this account.

State of play: Secretary of State Marco Rubio, Secretary of Treasury Scott Bessent, Secretary of Energy Chris Wright and Secretary of Commerce Howard Lutnick are also scheduled to join Trump's trip.

What they're saying: Pentagon spokesman Sean Parnell wrote on X that Hegseth "did not cancel his trip to Israel."

  • "He was asked to join President Trump's Middle East trip next week & is honored to do so. SECDEF very much looks forward to visiting our ally Israel soon," Parnell added.

Tariffs, mounting debt threaten dollar's role as global reserve currency

9 May 2025 at 08:50

The United States is ripping up longstanding trade arrangements, developing more hostile relationships with allies, and undermining independent institutions, all while rapidly running up more debt.

The big picture: That's a recipe for the role of the U.S. dollar as global reserve currency β€” unquestioned since the end of World War II and at a high-water mark just a decade ago β€” to fade.


  • So argues Ken Rogoff, the Harvard economist and former chief economist at the International Monetary Fund, in a conversation with Axios and in his new book "Our Dollar, Your Problem."
  • President Trump's policies have accelerated that process, Rogoff argues, but it was already set in motion.

State of play: When a company in Indonesia does business with one in South Korea, it probably transacts in dollars. When a country in the Middle East runs up huge surpluses from selling oil, it probably parks the money in dollar-denominated investments.

  • And when a bank in Europe does business with a country that is on the outs with the U.S. government, it can face massive fines and risk losing access to the global dollar payments system.
  • Alternatives to the dollar β€” the euro, the Chinese renminbi β€” have to this point not been true rivals, as neither offers the kind of deep and open debt markets and institutional frameworks that make them particularly attractive outside their home countries.

Zoom out: There have always been aspects of this system that other countries don't like very muchΒ β€” hence the title of Rogoff's book.

  • The U.S. sets fiscal and monetary policies based on its own interest, so countries tethered to the dollar are along for the ride, losing some control over their domestic economies.
  • And the U.S. has used economic sanctions in recent years for an increasingly wide array of goals β€” in the view of rivals and even allies, acting as a geopolitical bully.
  • That was already setting the stage for other countries to try to bolster their capacity to use other currencies for global commerce. The sense that the U.S. is an unreliable partner is turbocharging that process.

What they're saying: "What's happening under Trump is an acceleration of where we were going," Rogoff tells Axios. "He's a catalyst and an accelerant. But I do think if [former Vice President Kamala] Harris had won, the risk would have been pretty big over a longer arc of time, say, five to seven years, than Trump has managed."

  • "This isn't something that just turns overnight, but the rest of the world was already seeking more freedom from the dollar, and this lit a fire under it."
  • "In order for the euro to become more important outside Europe, they need to expand their financial system, the banking networks, in a way that accommodates that, and ditto the Chinese. The Chinese are working very hard at that."

The U.S. response to Russia's 2022 invasion of Ukraine lit a fire under the Chinese, Rogoff adds. "They saw what we did with sanctions and that we froze central bank assets."

  • "They have open doors, not just from Russia and North Korea, but large parts of Africa, Asia and Latin America. They don't trust the Chinese, but they don't trust the Americans anymore, either."

Several officials in Trump's orbit argue that the U.S.'s reserve currency status β€” the "exorbitant privilege," as it has been called β€” comes with a heavy burden and that it is high time for the rest of the world to pay for that.

  • Top White House economist Steve Miran said recently that "our financial dominance comes at a cost."
  • "While it is true that demand for dollars has kept our borrowing rates low, it has also kept currency markets distorted," Miran said. "This process has placed undue burdens on our firms and workers, making their products and labor uncompetitive on the global stage."

Yes, but: Rogoff argues that the costs of dollar dominance are more subtle than that, and that the benefits the United States receives are considerable.

  • "If you have a mortgage, you have something to lose, because the exorbitant privilege brings down all interest rates in the United States. Auto loans, student loans, it's a very direct effect," he says.
  • "More subtle but important is when the next crisis hits, if we've lost our exorbitant privilege, we will not be able to borrow as much to fight it. The rest of the world looks in awe at how much the United States is able to borrow" in episodes like the COVID-19 pandemic and the 2008 financial crisis.
  • "There's a national security element. A huge percentage of the global financial network essentially goes through U.S. regulators. The fact that we get all this information makes the U.S. able to ward off terrorist threats, allocate our intelligence services, and use sanctions in place of military interventions."

The bottom line: Predictions that the rest of the world might one day shun the dollar have come and gone for years.

  • It just might be real this time β€” and would come with a cost.

Sotomayor on Trump-era threats: "We can't lose the battles we are facing"

9 May 2025 at 06:45

Supreme Court Justice Sonia Sotomayor urged hundreds of lawyers Thursday night to stand up in the face of threats, multiple outlets reported.

Why it matters: President Trump's administration has targeted law firms and even federal judges, in what observers say has raised the possibility of a constitutional crisis.


Driving the news: "If you're not used to fighting, and losing battles, then don't become a lawyer," Sotomayor said at an American Bar Association event. "Our job is to stand up for people who can't do it themselves."

  • "Right now, we can't lose the battles we are facing," she added.

State of play: President Trump has retaliated against prominent law firms with executive orders, stripping security clearances and discouraging federal officials from interacting with the firms.

  • He announced five deals with law firms last month, securing a combined $940 million in pro bono legal services for conservative causes.

Zoom in: "We need trained and passionate and committed lawyers to fight this fight," Sotomayor said on Thursday. "For me, being here with you is an act of solidarity."

  • American Bar Association president William R. Bay in March said he rejected "efforts to undermine the courts and the profession."

Zoom out: Sotomayor has previously been outspoken about the role of courts in a challenging political climate.

  • In March, she urged for "fearlessly independent" courts at a Georgetown Law event.
  • "The fact that some of our public leaders are lawyers advocating or making statements challenging the rule of law tells me that fundamentally our law schools are failing," she said at the time.

Go deeper: As Big Law folds to Trump, some D.C. firms are fighting

Former Supreme Court Justice David Souter dies at 85

9 May 2025 at 07:02

Former Supreme Court Justice David Souter died in his New Hampshire home on Thursday at 85, the Supreme Court said on Friday.

The big picture: Souter, appointed by former President George H.W. Bush in 1990, served until 2009, when his retirement gave then-President Obama his first opportunity to fill a vacancy on the high court.


  • Souter was a Republican, but he often voted with the court's liberal bloc.
  • "Justice David Souter served our Court with great distinction for nearly twenty years. He brought uncommon wisdom and kindness to a lifetime of public service," Chief Justice John Roberts said in a statement.
  • After his retirement, Justice Sonia Sotomayor filled his seat.

Flashback: Souter previously served as New Hampshire's attorney general and on the state's Supreme Court.

  • When nominating him, Bush said Souter was "a remarkable judge of keen intellect and the highest ability, one whose scholarly commitment to the law and whose wealth of experience mark him of first rank."

Editor's note: This story was updated with additional details and background.

Trump suggests cutting China tariffs to 80% ahead of trade talks

9 May 2025 at 08:18

President Trump on Friday suggested possibly cutting tariffs on China to 80%, ahead of trade talks in Switzerland scheduled for Saturday.

Why it matters: Reducing the 145% levy to 80% would still be higher than Trump's original reciprocal tariff on China, and also significantly more than early reports suggested was possible.


  • "80% Tariff on China seems right! Up to Scott B.," Trump posted on Truth Social, referring to Treasury Secretary Scott Bessent, who is leading the China talks.

Yes, but: If the post was meant as an olive branch, China didn't seem moved, with its Commerce Ministry reportedly issuing a statement Friday morning condemning U.S. "abuse" of tariffs.

The big picture: Trump's trade war with China has sapped business and consumer confidence, injected deep uncertainty into the economy and raised fears of empty shelves and a recession as soon as this summer.

  • Word earlier this week that top U.S. and Chinese officials would meet this weekend on neutral ground was seen as a welcome thaw.
  • But Trump sticking to a historically high tariff may dampen that enthusiasm.

Between the lines: The trade war is already having an impact.

  • Chinese exports to the U.S. sank by 21% in April, The Associated Press reported Friday β€” but total exports rose, as the country found other buyers for its goods.

By the numbers: The market has essentially recovered the steep plunge it suffered after the "Liberation Day" tariff rollout on April 2, but even so, the S&P 500 is still down for the year and underperforming international peers.

  • Stocks sold off Friday after Trump floated the 80% rate, then rebounded after another Truth Social post where he said many more trade deals were "in the hopper," before flattening out after the Chinese statement.

What to watch: It's not clear what will come out of this weekend's talks: a statement, a deal β€” or anything at all.

  • But markets will be watching closely for any sign of lower temperatures on either side.
  • On Friday, Chinese social media accounts with close links to state media suggested China was willing to talk, but that negotiation did not necessarily mean concession.

Editor's note: This story was updated with additional context and developments.

The U.S.-UK deal shows the trade war is here to stay

9 May 2025 at 02:00

Markets cheered the new trade pact between the U.S. and U.K. yesterday.

  • But the details show that trade war relief will only go so far, even as the de-escalation road map becomes clearer.

The big picture: The first significant trade accord of this Trump term affirms that the president is in dealmaking mode and wants to steer around the kinds of economic risks generated by his original announcement of large-scale reciprocal tariffs.


  • But U.K. imports will continue to carry a 10% tariff, up from a pre-Trump average of 1.3%. The president referred to that as the "lowest end" import tax.
  • The British were perhaps the best positioned among major economies to reach a quick deal with the Trump administration.
  • Things get harder from here, with bigger trading partners β€” China, Canada, and the European Union β€” facing deeper mutual hostility, bigger trade imbalances, and more complex disputes.

Between the lines: The U.K. deal offers something of a template β€” perhaps even a best case β€” of what other countries might achieve in rapid-fire talks with the U.S. government.

  • The U.S. runs a trade surplus with the U.K., has deep geopolitical ties, and the British government has moved gingerly around any talk of retaliation.
  • As Evercore ISI's Sarah Bianchi writes, "if the UK isn't getting down to zero, it is very unlikely that anyone is."

Zoom in: Nothing about this process resembles the kind of drawn-out, point-by-point negotiation that would normally occur between two major economies.

  • But it does show that the Trump 2.0 is not a one-way ratchet β€” that trade barriers won't necessarily only go up.

What they're saying: "This is not a finished classic bells and whistles free trade agreement," a British official told reporters yesterday. "It started off as a tactical response to President Trump's tariffs, but actually morphed into a more substantive trade agreement.""

  • "The optics are out of the way," the official said. "We've done the Oval Office. Now we've got more serious work to do."

Reality check: With 10% import taxes looking like the new minimum β€” and other countries with more contentious trade relationships likely to continue seeing significantly higher tariffs β€” there will be serious sand in the gears of global commerce for the foreseeable future.

  • "With the baseline 10% not going anywhere, the average US tariff is still set to remain in double digits, which will deliver a big hit to real incomes in the US which will cause growth to slow sharply in the second half of the year," writes Michael Pearce of Oxford Economics in a note.
  • And the deal did not touch contentious issues around opening up British healthcare markets to US firms, or the. UK digital services tax. "Other countries will be unwilling to offer significant politically difficult concessions in return for minor tariff relief," Pearce said.

The bottom line: There is now a framework for trade war de-escalation. But imported goods are still going to cost more, and other, bigger trading partners may struggle to reach similar accords.

Pope Leo's tall task: Healing Catholic America's political divide

9 May 2025 at 02:00

Pope Leo XIV β€” the first U.S.-born pontiff, who is of Spanish and Creole descent and served in Latin America β€” is uniquely positioned to help ease deep divisions between the country's white and Latino Catholics.

Why it matters: The new pope has been an outspoken defender of migrant rights, and his family's immigration story touches an issue that has split many U.S. Catholics along cultural and political lines.


Zoom in: Those familiar with the former Cardinal Robert Francis Prevost described him Thursday as an empathetic centrist with a measured approach that's tinted with humor.

  • They imagined that he could help soften tensions within the 1.4 billion-member Catholic Church, and beyond.
  • Some even thought that the turmoil surrounding President Trump's policies on immigration and other issues had made the surprise selection of an American pope more likely.
  • "The upheaval of international order made clear by President Trump has made possible the impossible, meaning the papal election of an American citizen," Massimo Faggioli, a professor of historical theology at Villanova University β€” the new pope's alma mater β€” told CNN.

Pope Leo's selection comes as the Trump administration is detaining and pushing to deport thousands of Latino immigrants, many of them Catholics.

  • "There has been no more urgent issue for the American bishops than the deportation of tens of thousands of their Catholic, Latin American parishioners," Andrew Chesnut, the Bishop Walter F. Sullivan chairman in Catholic Studies at Virginia Commonwealth University, tells Axios.

White and Latino Catholics represent one in five Americans and are one of the most influential blocs among the world's Catholic faithful.

  • White Catholics overwhelmingly approve of Trump's immigration policies, but few Latino Catholics agree, according to a survey released last week by the nonpartisan Public Religion Research Institute (PRRI).
  • The survey found that white and Latino Catholics are also far apart on a range of other social issues, including LGBTQ rights and diversity initiatives.
  • The divisions among American Catholics have been exacerbated by Trump's policies, presenting a significant challenge β€” and an opportunity β€” for the new pope, Chesnut said.

Between the lines: Robert P. Jones, president and founder of PRRI, tells Axios that Leo's rise could fuel interest in the church among lapsed Catholics in the U.S., where membership has been fading amid a jump in "religious nones" β€” those with no religious affiliation.

Reality check: Attitudes toward Trump and immigration are deeply ingrained in American culture, making it difficult for a pope β€” even one from Chicago β€” to become a major influence beyond the church.

  • But the history-making aspect of Leo's selection will draw many Americans' attention, at least for a while.

The backstory: Pope Leo, 69, was born to a French-Italian American father who served in World War II and a Spanish American mother with roots in New Orleans Creole.

  • He arrived in Peru on an Augustinian mission in 1985, and later directed the Augustinian seminary in the northern city of Trujillo for 10 years.
  • He later became a Peruvian citizen, and maintains dual citizenship.

The future Pope Leo said last year that it's "very important" for bishops to reach out to those on the margins of society and those who feel excluded, according to Vatican News.

  • The U.S. advocacy group Catholic Legal Immigration Network praised Leo's selection Thursday, saying his record indicates he "will prioritize the voices and needs of migrants" who are fleeing violence.
  • In February, an X account that appears to belong to the pope re-posted an article that criticized Vice President Vance for suggesting people should prioritize how they care for one another.

More from Axios:

Meet Pope Leo XIV, the first American to serve as Bishop of Rome

Churches turn to Christmas migrant story amid deportation fears

Fetterman doubts explode into Capitol Hill firestorm

9 May 2025 at 01:45

Sen. John Fetterman has unnerved aides with his performance in office, with both current and former staff telling Axios that the Pennsylvania Democrat seems uninterested in the day-to-day duties of a senator.

Why it matters: Capitol Hill's private concerns over Fetterman exploded into public view over the past week, as longtime critics and former allies piled on with concerns about the senator.


  • "Part of the tragedy here is that this is a man who could be leading Democrats out of the wilderness," Fetterman's former chief of staff Adam Jentleson told New York Magazine in an explosive profile. "But I also think he's struggling in a way that shouldn't be hidden from the public."
  • A Fetterman outburst during a meeting with teachers union officials in Washington last week ended with a staffer crying in the hallway, AP reports.
  • Fetterman told NBC this week that the NYMag story was "a one source story with a couple of anonymous sources," referring to it as a "hit piece."

Zoom in: Since November, Fetterman has missed 55 floor votes in the Senate, according to GovTrack.us. He has missed 29 votes in 2025, the most of any senator.

  • Fetterman's senior staff has built a bubble around him internally, sources told Axios, shielding the senator from interactions with junior staffers.
  • Staffers also regularly lose track of and contact with Fetterman while on Capitol Hill, which alarms his inner circle.

The other side: A Fetterman spokesperson said that "John expects his staff to disagree with him on things. That's normal. But airing out grievances publicly hurts the entire office and puts staff, and their work in jeopardy."

  • Fetterman recently hosted his Washington and Pennsylvania staff at his home in Braddock, and met privately with spring interns this week on Capitol Hill.

Between the lines: New York Magazine detailed a letter last year from Jentleson to a doctor overseeing Fetterman's care, in which Jentleson said he was "really worried" about the lawmaker.

  • Fetterman survived a stroke during the 2022 campaign, and has spoken openly about his struggles with depression and complications from the stroke.
  • Fetterman told reporters earlier this week he's doing "great" and said people who've publicly worried about his mental health are "actually not concerned," NBC News reports.

Fetterman said in a statement: "As I've said, this [referring to New York Magazine article and recent claims made by staff] is just disgruntled staffers peddling lies and half-truths under the guise of 'concern."

  • "If those were genuine concerns, they'd pick up the phone and call me, not the press. My actual doctors and my family affirmed that I'm in good health."

The bottom line: Fetterman attended a Commerce Committee hearing on Thursday. But between that appearance and one other appearance at the beginning of this Congress, Fetterman has been largely absent, sources told Axios.

Scoop: Trump operation's first ad buy pushes president's tax cut plan

9 May 2025 at 01:30

President Trump's cash-flush political operation is out with its first ad buy β€” a major nationwide purchase aimed at pushing lawmakers to get behind his economic agenda.

Why it matters: Trump's $500 billion-plus political machine is the most powerful force in American politics, and he's showing that he's willing to use it.


  • Trump has been aggressively raising money for the operation. This includes a $1.5 million-a-head fundraiser earlier this week in Washington, D.C., attended by pro-crypto interests.
  • Vice President JD Vance held a $1 million-per-person fundraiser last week in Palm Beach, Florida.
  • Its coffers will only further grow: Tech billionaire Elon Musk, who is leading the Trump administration's federal cost-cutting effort, plans to give $100 million to the operation.

Details: Securing American Greatness, a pro-Trump nonprofit group that is not required to disclose its donors, is running nationally on cable stations and online starting Monday.

  • A source familiar with the plan said it would air in more than 20 targeted congressional districts, though they didn't specify which ones.
  • The organization is spending in the "high seven figures" to run the spot.
  • Securing American Greatness will run the spot for two weeks as part of a broader, one-month blitz.

Zoom in: The commercial highlights Trump's tax cut plan, which he is pushing to be included as part of the budget reconciliation package.

  • "Tell Congress this is a good deal for America. Support President Trump's agenda to get our economy back on track," the ad says.
  • It comes as some Republicans express hesitancy about Trump's economic plan, and how it will be paid for.

The spot gives Trump backup on a a pair of issues he's been playing defense on: Tariffs and the Musk-led effort to slash government spending.

  • The tariffs will "bring home American jobs," the ad says.
  • It says Musk's DOGE is slashing "waste, fraud and abuse."

Zoom out: Securing American Greatness and the pro-Trump super PAC MAGA Inc. are poised to spend big in the 2026 midterms.

  • The groups will target Democrats with an eye toward expanding the GOP's congressional majorities.
  • It will also reward Republicans who support Trump's agenda β€”Β and pressure those who are wavering to get on board.
  • The group is being led by Chris LaCivita and Tony Fabrizio, who were top officials on Trump's 2024 campaign.
  • Their efforts are being closely coordinated with senior White House officials, including Chief of Staff Susie Wiles and Deputy Chief of Staff James Blair.
  • They were formed during the campaign by Taylor Budowich, who is now a senior White House lieutenant.

Yesterday β€” 8 May 2025Axios News

Pope Leo's Creole roots celebrated by New Orleans

Pope Leo XIV is not only the first American to serve as Bishop of Rome, the City of New Orleans notes he also has "Creole of color roots" there.

The big picture: The 69-year-old newly elected pontiff's brother John Prevost told the New York Times from his Chicago home late Thursday this "discovery is just an additional reminder of how interwoven we are as Americans."


  • The 71-year-old added he hopes this news about the Chicago-born pope formerly known as Cardinal Robert Francis Prevost "will highlight the long history of Black Catholics, both free and enslaved, in this country, which includes the Holy Father's family."

Zoom in: New Orleans historian and genealogist Jari Honora first raised the matter of the roots of the new pontiff, who succeeds Pope Francis, who led the Catholic Church from 2013 until his death on Easter Monday at age 88.

  • Honora shared records on Facebook showing that Leo's mother is of Creole descent.
  • "As a city known for its rich history and diverse culture, we are honored to have a new leader of the Catholic Church whose maternal grandparents Joseph Martinez and Louise BaquiΓ© resided in the 7th Ward of New Orleans," per a City of New Orleans Thursday evening statement.
  • The couple "were married at Our Lady of Sacred Heart Church on Annette Street in 1887 before moving to Chicago between 1910 and 1912," according to the emailed statement, which cited a source at The Historic New Orleans Collection.

πŸ’­ Our thought bubble, via Axios' Russell Contreras: U.S. Catholic congregations that shaped Leo were among the most diverse in the nation amid persistent segregation in Protestant churches.

  • Catholics in the early 20th century married across ethnic and racial lines even when it was forbidden elsewhere β€” especially in Louisiana, California and New Mexico.
  • Those dynamics appeared to have formed Leo's multiracial, multiethnic family as they moved to the Midwest.

What they're saying: Mayor LaToya Cantrell noted in a statement included in the email that the city is "a melting pot" of different religions and beliefs.

  • "We are thrilled to welcome Pope Leo XIV, who embodies morality, unity, and inclusivity," she added of the pontiff, who is a dual citizen of the U.S. and Peru, where he served as a bishop for several years.
  • "We look forward to building a strong relationship with our new pope and working together towards creating a more compassionate and just society."

More from Axios:

Scoop: Trump had "private meeting" with Netanyahu adviser ahead of Mid-East trip

8 May 2025 at 18:59

President Trump met Israeli Strategic Affairs Minister Ron Dermer, a close confidant of Prime Minister Benjamin Netanyahu, on Thursday and discussed the nuclear talks with Iran and the war in Gaza, according to two sources briefed on the meeting.

Why it matters: The meeting at the White House, which was not made public by the U.S. or Israel, took place ahead of the fourth round of nuclear talks between the U.S and Iran on Sunday in Muscat and President Trump's trip to the Middle East starting on Monday.


  • Trump will visit Saudi Arabia, Qatar and the UAE on this trip but will skip Israel.

Between the lines: The meeting is somewhat unusual in that presidents don't typically meet with foreign officials who are not the head of state or government.

Friction point: It took place two days after Netanyahu and his team were blindsided by Trump's announcement of a truce with the Houthis, exposing the gaps in trust and coordination between the administrations.

  • The announcement came shortly after Israel had carried out strikes on a major port and airport in Yemen in response to a Houthi attack on Tel Aviv's international airport. The Israelis were alarmed that Trump's ceasefire didn't apply to attacks on Israel.
  • "We were shocked that the Trump administration didn't tell us anything and we learned about it from the television," one Israeli official told Axios.
  • The episode raised concerns about the likely limits of Israel's influence on the U.S. approach to nuclear talks with Iran. Netanyahu is skeptical of diplomacy and wants Trump to consider a military option.

Behind the scenes: Dermer met Wednesday with Secretary of State Marco Rubio and expressed the Israeli concerns, a source with knowledge said.

  • On Thursday Dermer had several meetings in the White House including one with Trump.
  • Vice President Vance, Rubio and White House envoy Steve Witkoff also attended the meeting, according to one source.
  • White House press secretary Karoline Leavitt confirmed Trump met Dermer and said it was a "private meeting."

What's next: Witkoff and his team are expected to hold another round of nuclear talks with Iran on Sunday in Oman, according to two sources with knowledge.

  • Iranian Foreign Minister Abbas Araghchi will head the Iranian delegation.
  • Trump reiterated Thursday that he's trying to work out a nuclear deal with Iran without having to use military force.

What to watch: Israel has set the end of Trump's trip as the deadline for a new hostage and ceasefire deal in Gaza and is threatening a massive operation to flatten and occupy the enclave and displace its entire population if no deal is reached.

  • Witkoff has been working in recent days with Qatari and Egyptian mediators to press Hamas to agree to release some hostages in return for a temporary ceasefire, but the group continues to insist that Israel agree to end the war in exchange for the release of all hostages.

The biology behind the new mom-baby connection

8 May 2025 at 18:25

Emerging research shows that babies' DNA stays with their mothers decades after birth.

Why it matters: We've shared stories about the deep, powerful bond between parents and their babies since the beginning of human history. New science tells us this connection could be rooted in biology.


The big picture: Starting as early as six weeks into pregnancy, some fetal cells migrate to a mother's body, and could stay there for a lifetime.

  • That's according to Amy Boddy, an associate professor at UC Santa Barbara who studies microchimerism β€” when "a small amount of genetically different cells or DNA is in someone's body," as she explains it.

Zoom in: Those fetal cells work like stem cells that specialize in whatever tissue they land in, Boddy tells Axios.

  • For example, fetal cells could become a mother's heart cells that help pump blood through her body.
  • And some of the mother's cells transfer to the baby.

The intrigue: Because of fetal microchimerism, researchers "have found grandmother cells in the cord blood of babies, suggesting this longer, deeper generational transfer," Boddy tells Axios.

Even after miscarriage, fetal cells can remain.

  • For women who experience pregnancy loss, "it's not just in their head that they're forever changed by that pregnancy," Boddy says. "Those cells may exist and influence their biology."

Zoom out: Scientists still don't fully understand why fetal microchimerism occurs, but we do know that…

Breastfeeding is another source of biological mother-baby connection.

  • It's not just that a baby's suck spurs a mom's milk production β€” there's also "flow back into the nipple, as well," Boddy says.
  • If a baby has an infection, a mother's body could respond by producing specialized immune cells in milk to fight it.
  • And Boddy's research has found that nursing mothers have immune profiles different from those of non-breastfeeding people β€” though we don't yet know exactly how.

Carly's thought bubble: Beyond science, I've also turned to cinema to articulate how enmeshed I feel with my nine-month-old.

  • At my lowest, I joke about how being a breastfeeding mother is like giving my kid my life force and beauty, akin to the gory thriller "The Substance."
  • But often I think about my connection with my son in terms of "E.T.": He's my big-eyed baby alien, and I'm the human Elliot who feels his pain and never wants him to leave.

Worthy of your time: There are biological reasons why postpartum moms don't just "bounce back" to the way they were pre-pregnancy.

Trump fires Librarian of Congress Carla Hayden amid more worker purges

8 May 2025 at 21:04

President Trump has fired Librarian of Congress Carla Hayden amid a purge of government employees he believes oppose his policies or promote diversity.

Why it matters: Hayden won praise for her focus on saving photos and documents about people of color, but had faced criticism from conservatives, accusing her of promoting children's books with "radical" content.


Driving the news: AP first reported the firing late Thursday and said it came in an email from the White House's Presidential Personnel Office, which a White House source familiar with the situation confirmed to Axios. No reason was given for her dismissal, per AP.

  • Democrats including Senate Minority Leader Chuck Schumer (D-NY) denounced Hayden's firing.
  • "Dr. Hayden is a trailblazer, a scholar, and a public servant of the highest order. She brought integrity, vision, and truth to the Library of Congress," Schumer said in a statement.
  • Sen. Martin Heinrich (D-N.M.) said on X that Hayden's dismissal takes Trump's "assault on America's libraries to a new level."

State of play: The Trump administration has dismissed federal workers and purged government websites about communities of color following several of the president's executive orders.

  • The orders follow the administration's reinterpretations of Civil Rights-era laws to focus on "anti-white racism" rather than discrimination against people of color.
  • In March, a group of federal employees who were fired for participating in diversity, equity and inclusion (DEI) activities filed a complaint to regain their jobs and their back pay.

Zoom in: Hayden, whose 10-year term was set to expire next year, was the first woman and Black American to be the Librarian of Congress.

  • She was only the 14th Librarian of Congress in history since the Library of Congress was established in 1800.
  • Hayden had led Baltimore's library system before coming to the Library of Congress.

The intrigue: Under her leadership, the Library of Congress promoted works and collections from people of color.

Yes, but: Conservative MAGA influencers and groups have repeatedly attacked Hayden for the Library of Congress's posts and collections.

Context: The Library of Congress makes available historical documents, such as the papers of presidents and Supreme Court justices.

Go deeper: Hidden treasures at the Library of Congress, revealed

Trump admin moves to oust 1,000 trans people from the military after Supreme Court ruling

8 May 2025 at 19:23

Defense Secretary Pete Hegseth is moving rapidly to ban transgender troops from the U.S. military, giving active-duty service members on Thursday 30 days and reservists 60 days to voluntarily leave or be forced out.

The big picture: The order that follows a U.S. Supreme Court ruling on Tuesday enabling the Trump administration's ban to take effect impacts about 1,000 service members, per a Pentagon statement.


Driving the news: President Trump signed an executive order targeting transgender troops in January that recognizes only two sexes, male and female, in line with other policies attacking trans people.

  • Trump also rescinded a policy allowing trans people to serve, implemented by his predecessor, former President Biden.
  • "This is the president's agenda, this is what the American people voted for," Hegseth said in a video posted to X.
  • The post carried the caption, "After a SCOTUS victory for @POTUS, TRANS is out at the DOD."

What we're watching: A group representing 32 transgender plaintiffs filed a letter brief with the U.S. Court of Appeals for the D.C. Circuit on Tuesday night arguing the Supreme Court's ruling did not apply to a judge's order in a separate case in March.

  • In that order, U.S. District Judge Ana Reyes described the Trump administration's efforts to block transgender people as "soaked in animus and dripping with pretext" and found the moves violated the Constitution.
  • Glad Law said in a statement on the challenge that the Supreme Court "did not consider animus" in its ruling.

What they're saying: "Secretary Hegseth's comments about transgender troops are a disgrace to the military and all those who serve," said attorney and GLAD Law senior director of transgender and queer rights Jennifer Levi.

Go deeper: All of the anti-trans executive orders Trump has signed

Trump's internal millionaires' monologue

8 May 2025 at 17:30

President Trump has been negotiating with himself on a millionaires' tax: He's for it at the $2.5 million level, after being against it at $1 million.

Why it matters: Negotiating with his own party may be easier. House Speaker Mike Johnson (R-La.) will tell Trump on Friday that the House will deliver on the president's tax priorities, according to a congressional aide.


  • Senate Finance Chair Mike Crapo (R-Idaho) admitted he's "not excited about the proposal," before quickly adding, "There are a number of people in both the House and Senate who are."
  • "If the president weighs in in favor of it, then that's going to be a big factor that we have to take into consideration as well," he said on Hugh Hewitt's radio show.

Driving the news: Trump told Johnson over the phone Wednesday that the House should increase the top rate from 37% for individuals making $2.5 million and up ($5 million for married couples).

  • "This is to pay for working- and middle-class tax cuts that were promised, and protect Medicaid," an administration official told Axios.
  • Trump is also insisting that carried interest be treated like regular income, which would amount to a tax increase for the private equity industry.

Between the lines: Just as Trump is calling for higher taxes on the wealthy, blue state Republicans are demanding that Trump lower them by increasing the SALT cap.

  • New York Republicans are now rejecting lifting that cap from $10,000 to $30,000. Some lawmakers want to go as high as $62,000.

Flashback: Trump told Time Magazine in April that "I actually love the concept," or higher taxes on the wealthy.

  • "But I don't want it to be used against me politically, because I've seen people lose elections for less, especially with the fake news," he said.

Zoom in: As Republicans look at the math of Trump's "one big, beautiful bill," they are confronted with a stark reality: They are short on revenue and long on spending.

  • Speaker Johnson is committed to a "ratchet" system, where he can only pass $4 trillion in tax cuts if he can find $1.5 trillion in savings.

The bottom line: Since the "Reagan Revolution," Republicans have been preternaturally predisposed to hate taxes. Or, as House Majority Leader Steve Scalise said when the millionaire's tax was floated in April.

  • "No. 1 goal is keeping rates where they are and preventing a tax increase."

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