• President Donald Trump suggested that tariffs on Chinese goods should be slashed to 80%.
• The rate would still be high but would be a dramatic reduction from the 145% the US has imposed.
• Just two days ago, Trump said "no" when asked whether he would consider lowering tariffs on China.

President Donald Trump made the first move ahead of US-China trade talks this weekend.

In a Friday morning Truth Social post, the president suggested significantly lowering his tariff on Chinese goods to 80% — still high but 65 percentage points lower than the current 145% rate.

The president posted: "80% Tariff on China seems right! Up to Scott B."

US Treasury Secretary Scott Bessent and the US trade representative, Jamieson Greer, announced this week that they'd be meeting with their Chinese counterparts in Switzerland this weekend to discuss US-China trade relations as Trump's heavy tariffs remain in effect and the trade war rages on.

"CHINA SHOULD OPEN UP ITS MARKET TO USA — WOULD BE SO GOOD FOR THEM!!! CLOSED MARKETS DON'T WORK ANYMORE!!!" Trump wrote in another Friday morning post.

Just two days ago, while speaking with reporters from the Oval Office, Trump flatly said "no" when asked whether he would consider lowering his tariffs on China to help ease this weekend's talks, though he also recently said that the 145% tariff on China is "very high" and would "come down substantially."

Ahead of the talks, shipments from Chinese ports have slowed. US importers have begun to weigh whether they can afford to do business now that each shipment is subject to the 145% tariff.

"It has gone very fast, so this is the result of customers reacting very, very fast on canceling orders or stopping orders and waiting to see if this is going to resolve itself," Maersk CEO Vincent Clerc said on his company's first-quarter earnings call.

Trump previously lashed out at China after Beijing retaliated against his "Liberation Day" tariffs. Since April, the world's two largest economies have remained largely at loggerheads. Starting late last month, the president has said that China is talking to the White House — a claim Beijing has repeatedly denied.

The two sides couldn't even agree on who initiated the high-level talks this weekend, but news of the face-to-face conversation was seen as a serious indication that a deal is in the offing.

The current 145% tariff is so high that many economists have essentially compared it to a trade embargo. The White House did grant a series of exemptions for certain tech items, including Apple's iPhones, but other industries have said that price increases could be coming if relief isn't on the horizon.

Trump said that Americans needed to take some price increases on the chin to pave the way for the reshoring of manufacturing.

"Maybe the children will have two dolls instead of 30 dolls, and maybe the two dolls would cost a couple of bucks more than they would normally," he told reporters in April during a Cabinet meeting.

In past talks, Trump has shown he will start with significant bluster before a breakthrough arrives. In his first term, he ratcheted up tensions with North Korea's leader, Kim Jong Un, dismissing him as "little rocket man" before ultimately agreeing to hold historic talks with the nuclear-armed nation.

Commerce Secretary Howard Lutnick, another trade advisor, on Thursday lavished praise on the president for his methods.

"He's the closer," Lutnick said, looking over to Trump in the Oval Office. "He gets deals done that we could never get done."

Correction: May 9, 2025 — An earlier version of this story misstated how much lower an 80% tariff on Chinese goods would be from 145%. It would be 45% lower, not 55%.

• Elon Musk says he's stepping back from the White House DOGE office in May.
• Musk says it will allow him to focus more on Tesla.
• Tesla has struggled amid the backlash to Musk's service in President Donald Trump's administration.

Elon Musk said he will step back from the White House DOGE office after spending three months trying to radically reshape the federal government and its workforce.

"Starting next month, I will be allocating far more of my time to Tesla," Musk said Tuesday during Tesla's earnings call, noting that "the major work of establishing the Department of Government Efficiency" was done.

He said he'll continue to spend a day or two a week on government matters, "as long as it is useful," and the president wants him to do so.

Tesla stock jumped about 5% in after-hours trading after Musk announced his reduced role with DOGE. It came on the heels of the company's disappointing quarterly earnings report.

Tesla has also struggled in the months since Musk began advising Trump. Tesla stock declined 44% over the past year, and its first-quarter sales came in way under expectations.

Musk himself said he was leading his companies "with great difficulty" during his time with DOGE.

Under Musk's unofficial leadership, DOGE has targeted a wide swath of federal agencies, including dismantling the US Agency for International Development, attempting to gain access to sensitive data and payment systems at the Internal Revenue Service and Treasury Department, and trying to shut down the Consumer Financial Protection Bureau. Musk has also helped Trump gut the federal workforce through buyout offers to government employees, mass firings of probationary workers, and downsizing of agencies like the National Institutes of Health.

Despite its large-scale targeting of federal agencies and workers, DOGE has not yet come close to its savings goals. Musk first promised that his sweeping DOGE cuts would save taxpayers $2 trillion, but later downgraded that to $1 trillion, and further again to $150 billion,

DOGE's claimed savings have been riddled with mistakes and corrections, including removing $4 billion from its "Wall of Receipts" in March, dropping its real estate savings by $150 million later that month, and lowering its savings claims by over $9 billion over two days in February.

Musk's involvement with DOGE was never meant to be permanent — as a "special government employee," he is not allowed to serve more than 130 days in a 365-day period.

Under Trump's original executive order, the DOGE office can run through July 4, 2026, the 250th anniversary of the nation's independence. Many of DOGE's top leaders are linked to Musk's companies. It's unclear if they'll also be scaling back their presence in DOGE.

Correction: April 22, 2025 — A previous version of this story misstated Musk's announcement regarding his DOGE role. He will be stepping back from DOGE, not leaving entirely.

• Elon Musk says he's stepping back from the White House DOGE office in May.
• Musk says it will allow him to focus more on Tesla.
• Tesla has struggled amid the backlash to Musk's service in President Donald Trump's administration.

Elon Musk has announced he will step back from the White House DOGE office after spending three months trying to radically reshape the federal government and its workforce.

"Starting next month, I will be allocating far more of my time to Tesla," he said, "now that the major work of establishing the Department of Government Efficiency" is done, Musk said in Tuesday's earnings call.

He said he'll continue to spend a day or two a week on government matters, "as long as it is useful," and the president wants him to do so.

Musk's announcement comes on the heels of Tesla's disappointing quarterly earnings report Tuesday.

Under Musk's unofficial leadership, DOGE has targeted a wide swath of federal agencies, including dismantling the US Agency for International Development, attempting to gain access to sensitive data and payment systems at the Internal Revenue Service and Treasury Department, and trying to shut down the Consumer Financial Protection Bureau. Musk has also helped Trump gut the federal workforce through buyout offers to government employees, mass firings of probationary workers, and downsizing of agencies like the National Institutes of Health.

Despite its large-scale targeting of federal agencies and workers, DOGE has not come close to its savings goals. Musk first promised that his sweeping DOGE cuts would save taxpayers $2 trillion, but later downgraded that to $1 trillion, and further again to $150 billion,

DOGE's claimed savings have been riddled with mistakes and corrections, including removing $4 billion from its "Wall of Receipts" in March, dropping its real estate savings by $150 million later that month, and lowering its savings claims by over $9 billion over two days in February.

Musk's involvement with DOGE was never meant to be permanent — as a "special government employee," he is not allowed to serve more than 130 days in a 365-day period.

Under Trump's original executive order, the DOGE office can run through July 4, 2026, the 250th anniversary of the nation's independence. It's unclear what will happen with the initiative now given that many of DOGE's top leaders are long-time Musk allies.

Correction: April 22, 2025 — A previous version of this story misstated Musk's announcement regarding his DOGE role. He will be stepping back from DOGE, not leaving entirely.

• The USAID has become one of Elon Musk's top targets in his bid to cut government spending.
• Musk's moves to dismantle federal agencies like USAID are totally illegal, constitutional law experts say.
• Congressional authority is needed to shut down a federal agency, the experts said.

Elon Musk's efforts to scrap federal government agencies like the US Agency for International Development are indisputably illegal, constitutional law experts say.

Without congressional action, Musk — the billionaire tech titan who is now serving in the Trump administration — nor President Donald Trump, has the legal authority to do so, the experts told Business Insider. And so far, the Republican-controlled Congress has taken no public action to push back against the move.

The humanitarian aid agency known as USAID announced on Tuesday it was set to place nearly all of its direct-hire workforce around the globe on administrative leave at the end of the week, just a day after Musk said in an X post that he "spent the weekend feeding USAID into the wood chipper."

"Elon Musk's claim that he has President Trump's go-ahead to shut down USAID is flatly illegal and unconstitutional," said Laurence Tribe, a Harvard Law School professor.

"In our system of government, only Congress wields the power of the purse and the power to create or destroy entire agencies to disburse the money the government collects in taxes or borrows from bondholders," said Tribe.

Not even the president has the unilateral authority to take an ax to federal agencies the way Musk says he is, the legal scholar said.

"The president cannot do this directly and so he can't delegate any authority to do it to Musk or anyone else," Cornell Law School professor Michael Dorf said.

As the head of the Department of Government Efficiency or DOGE, Musk, with the backing of Trump, has made it his newfound mission to reduce spending by the federal government — and USAID has become one of Musk's top targets.

President John F. Kennedy initially created USAID through an executive order in 1961, and Congress later formally established it as an independent agency through the Foreign Affairs Reform and Restructuring Act of 1998.

"Congress could cancel it, but the president can't unilaterally shutter it," Dorf said of USAID, adding, "This is blatantly unlawful and a violation of Trump's oath to take care that the laws are faithfully executed."

Earlier this week, the US State Department announced that Trump has appointed Secretary of State Marco Rubio as the acting administrator of USAID.

The State Department said in a statement that Rubio "notified Congress that a review of USAID's foreign assistance activities is underway with an eye towards potential reorganization."

Rubio wrote in a letter to Congress: "The Department of State and other pertinent entities will be consulting with Congress and the appropriate committees to reorganize and absorb certain bureaus, offices, and missions of USAID."

As for whether the Trump administration can legally reorganize USAID, Roderick Hills, an NYU School of Law professor who researches administrative and constitutional law, told BI that is also against the law.

"Certain statutes have, from time to time, given presidents narrow and time-limited re-organization powers, but none of them give President Trump any power to reorganize the USAID," Hills said. "In fact, the statutory background to USAID makes it perfectly clear that President Trump's actions here violate federal law."

USAID was designed to operate independently

Congress designed USAID to operate independently of the State Department, Tribe told BI. "There is no legal loophole they can invoke to make their actions lawful," he said.

The legal expert said that apparent inaction by the GOP-led Congress on the matter suggests that Republicans in control of Congress are "afraid" of being confronted with Musk's "limitless riches."

On Wednesday, House Speaker Mike Johnson defended Musk's role as head of DOGE and his efforts to cut government spending, arguing that the executive branch is acting "within the scope of their authority."

Johnson said Republicans would "vigorously defend" Congress' role in government. "But what's happening right now is a gross overreaction in the media to what is happening," Johnson said.

"The executive branch of government in our system has the right to evaluate how executive branch agencies are operating," he said. "It's not a power grab."

A slew of Democratic lawmakers, on the other hand, have sounded the alarm.

"USAID was created by federal law and is funded by Congress. Donald Trump and Elon Musk can't just wish it away with a stroke of a pen — they need to pass a law," Democratic Sen. Brian Schatz of Hawaii said.

James Gardner, a professor at the University at Buffalo School of Law, told BI that Congress has given USAID many functions by statute, "and it is not up to anyone but Congress to decide that it should not perform the functions Congress has instructed it to perform."

"The Constitution designates the president as the chief enforcer of the law, not the maker of laws," Gardner said.

Though experts say the effort to disband USAID is illegal, it does not mean it can't happen.

Trump told reporters on Monday that shutting down USAID "should have been done a long time ago" and said he did not think the move would need approval by Congress.

A White House official insisted in a statement to BI on Wednesday that federal law was being adhered to.

"DOGE is fulfilling President Trump's commitment to making government more accountable, efficient, and, most importantly, restoring proper stewardship of the American taxpayer's hard-earned dollars," the official said. "Those leading this mission with Elon Musk are doing so in full compliance with federal law, appropriate security clearances, and as employees of the relevant agencies, not as outside advisors or entities."

While speaking to reporters in the Oval Office on Monday, Trump clarified Musk's power, saying the Tesla and SpaceX CEO can't make any moves without the green light from his administration.

"Elon can't do and won't do anything without our approval," the president said. "And we'll give him the approval where appropriate. Where not appropriate, we won't."

Musk did not immediately respond to a request for comment for this story. The State Department declined to comment and instead referred BI to recent statements by Rubio and the White House.