| | | |  | | By Jack Blanchard | | Presented by |  | | | With help from Eli Okun, Garrett Ross and Bethany Irvine
| | | Good Monday morning. This is Jack Blanchard, enjoying the brief return of springtime in D.C. — and some sun-drenched okonomiyaki at the Sakura Matsuri on Pennsylvania Ave. yesterday. A perfect Sunday afternoon. Praying for more clear skies today: Jeff Bezos, who hopes to send an all-female rocket crew including pop star Katy Perry, CBS’ Gayle King and his own fiancée Lauren Sánchez into space. No word from the White House on whether Elon Musk will be tuning in for the launch at 9:30 a.m. Perhaps not. In today’s Playbook … — All eyes on the bond markets after another weekend of tariff confusion. — El Salvador’s president is in town following SCOTUS deportation ruling. — Shock and condemnation after Passover arson attack on Gov. Josh Shapiro.
|  | DRIVING THE DAY | | | 
The economy is displaying flickering dashboards again after another rollercoaster weekend of tariff policy amid a trade war moving in only one direction. | Anna Moneymaker/Getty Images | DÉJÀ VU: Stop me if you’ve heard this one before: All eyes are fixed on the U.S. economy’s flickering dashboards again this morning after another rollercoaster weekend of tariff policy. President Donald Trump announced last night he will unveil new tariffs on the semiconductor industry in the coming days, having confirmed the “reprieve” offered to China’s electronics industry on Friday was only a temporary measure. Anxious shareholders and 401(k) obsessives should probably stay off their phones this week, because this trade war is only moving in one direction. Market watch: As every newly schooled TikTok economist knows, it’s not just the U.S. stock market we must now pay attention to — but the bond markets and the dollar as well. So far, the overnight signs are … kind of OK. The Asian markets are up a little; the S&P Futures is up a little; and Bob Michele from JPMorgan reckons things are looking “a lot more positive than last week” — but also that U.S. treasuries still have “a bit more of a washout to go.” Which still sounds kind of ominous to me. ICYMI: Just in case you spent the past four days transfixed by The Masters (congrats Rory) rather than the latest twists and turns of Trump’s tariff saga, the White House issued a Friday night “clarification of exceptions,” which revealed consumer electronics would be exempt from the 105 percent “reciprocal” tariff imposed on Beijing. At first, it looked like another market-pleasing climbdown. But yesterday, Commerce Secretary Howard Lutnick popped up on TV to reveal it was only a temporary measure — because these same electronic goods face their own sector-specific semiconductor tariffs “in the next month or two.” This being the motor-mouthed Lutnick … nobody was sure what to believe. But then Trump confirmed it in a Truth Social post on Sunday afternoon. (He even claimed “there was no Tariff ‘exception’ announced on Friday” … even though Friday’s memo from the White House was headlined “Clarification of Exceptions.”) The WSJ editorial board calls the weekend’s policy announcements “confusing,” which is certainly one way of putting it. Another clarification: “The [semiconductor] tariffs will be in place in the not-distant future,” Trump told journos on Air Force One last night. “We want to make our chips and semiconductors and other things in our country.” Asked about the semiconductor tariff rate, Trump said: “I’m going to be announcing it over the next week.” White House officials expect a formal investigation to come first, per POLITICO’s Ari Hawkins. But but but: Trump also appeared to suggest on Air Force One that some specific products may win exemptions from the new regime. “You have to show a certain flexibility. Nobody should be so rigid,” the president told reporters. Pressed if that meant flexibility for specific products, he replied: "For some products.” You can almost hear Tim Cook’s ears pricking up. China hits back: Last night, Beijing announced it was suspending exports of a range of critical minerals and magnets, NYT’s Keith Bradsher reports, “threatening to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world. Shipments of the magnets, essential for assembling everything from cars and drones to robots and missiles, have been halted at many Chinese ports while the Chinese government drafts a new regulatory system.” It’s pretty clear who’s the chief target. Open goal: Chinese President Xi Jinping has taken this moment to seek to cement Beijing’s alliances in Southeast Asia, and arrived in Vietnam this morning for trade and investment talks. Xi said in a statement that protectionism “will lead nowhere,” and that a trade war would have “no winner,” pitching China as the stable antidote to Trumpian disruption. (Story here, via CNBC.) Xi heads on to Malaysia and then Cambodia on his five-day trip. Also worth keeping an eye on: U.S. Treasury Secretary and reassurer-in-chief Scott Bessent is in Argentina today and will give an interview to Bloomberg TV.
| | | | A message from PhRMA: Chances are your insurer and PBM are owned by the same big health care company. They also own big chain pharmacies – and are even buying doctors' offices. When middlemen own it all, you lose. It's time to protect patients and rein in the middlemen. See how. | | | | PRISON BREAK WELCOME TO AMERICA: Trump’s main business this morning is the arrival of the president of El Salvador to the White House, and the timing really could not be any better. President Nayib Bukele is due to meet Trump at the White House at 11 a.m., with the press pool invited to their Oval Office meet-and-greet. Top of mind will be the 238 Venezuelan nationals deported by the Trump administration last month to El Salvador’s purpose-built terror-prison — and last seen being publicly humiliated in a glitzy promotional video featuring iron shackles and forced headshaving. Bukele is the guy who tweeted it out. So many questions for Bukele. The most pressing: Will Bukele return a Venezuelan man whom even the Trump administration admits was sent to the El Salvador jail by mistake? Kilmar Abrego Garcia was under specific court order not to be deported to El Salvador due to the risk of persecution, but got swept up in the rush to deport alleged gang members. The Supreme Court last week confirmed lower court decisions and ruled the Trump administration must “facilitate” Garcia’s return to the United States. After which … precisely nothing has happened. Not our problem: In a court filing published late last night, the Trump administration insisted Garcia’s lawyers have over-interpreted the SCOTUS ruling, and that to “facilitate” his return means simply allowing it to happen from a domestic point of view. And the admin is claiming the U.S. Supreme Court has no jurisdiction over what El Salvador does with prisoners, nor over how Trump should act with regard to foreign relations. Which means — in the White House’s view — it’s entirely up to Bukele whether to send the prisoner back. And don’t hold your breath … because along with Argentina’s Javier Milei and Hungary’s Viktor Orbán, there is perhaps no more MAGA-aligned world leader than Bukele. Here he is mocking D.C. Judge James Boasberg for failing to prevent the deportation flights from taking off. Here he is being praised by national security adviser Mike Waltz, Secretary of State Marco Rubio, and Elon Musk. Here he is this past weekend with former Rep. Matt Gaetz (R-Fla.). It’s hard to imagine him doing anything to undermine Trump. And so far, the administration has fought this tooth and nail. And there’s more: There have been plenty of questions raised about some of the other men deported to El Salvador, too — not least the aforementioned hairdresser and makeup artist, Andry Hernandez Romero, about whose case there has been extensive reporting. Indeed, CBS News reviewed the 238 cases last month and found precious few have criminal records. None of these men were given due process. This photojournalist for Time magazine witnessed their treatment on arrival. Does Bukele have any qualms about any of this? Guessing not: Since his election in 2019, Bukele has delivered a sensational “law and order” crackdown which has dramatically cut gang violence in El Salvador — but come under fierce criticism from human rights groups. He sent soldiers into parliament’s debating chamber to intimidate his political opponents. He purged his nation’s Supreme Court after winning an election landslide. And he’s built a 40,000-person mega-prison that he uses to detain supposed terrorists and gang members. And guess what? If polling is to be believed, Bukele’s popularity ratings in El Salvador are through the roof — like 90 percent-plus. He’s charismatic, he wins elections and — in his supporters’ eyes — he delivers results. In so many ways, he’s a Trump kind of guy. The latest: Rubio announced yesterday that the U.S. had moved 10 more alleged members of MS-13 or Tren de Aragua from Guantánamo Bay to El Salvador, per the NYT. It’s not yet clear if the U.S. had more substantive evidence for those designations than the minimal “evidence” — often just tattoos and clothing — it has shared in court for some previous deportations, as Reuters’ Andrew Goudsward and Ted Hesson break down. Another conversation topic: On Friday, POLITICO’s Dasha Burns and Myah Ward scooped that former Blackwater CEO Erik Prince is pitching the White House on a plan to use private military contractors to dramatically expand deportations to El Salvador. One administration official told Dasha and Myah that the proposal will likely be discussed during Bukele’s White House visit. Final question for Bukele: Is he still keen to start taking American citizens into his massive prison? That was part of the original offer he made to Rubio in February — and Trump said last week he loved the idea. The U.S. courts may well take a different view. But Rolling Stone’s Nikki McCann Ramirez and colleagues report that talks are underway inside the White House to try to make it happen. Something to look forward to: Judge Paula Xinis’ next hearing in the Garcia case is tomorrow, and the stakes could escalate. As the AP notes, Garcia’s lawyers want her to move toward holding the government in contempt. MORE COURTS NEWS: Lawyers for Tufts student Rümeysa Öztürk, who was detained after being targeted by a pro-Israel group for co-writing a pro-Palestinian op-ed, will be back in court today. Last night, WaPo’s John Hudson scooped that before the U.S. detained her, the State Department had found no evidence of her being antisemitic or supporting terrorism — with the memo saying that Rubio lacked grounds to snatch her visa under one authority that demands a rationale. (Another authority does not.) ProPublica’s Hannah Allam has one of the most comprehensive stories yet of how Öztürk ended up detained.
| | | | A message from PhRMA:  
Insurers own PBMs, pharmacies – even doctors' offices. It's time to protect patients and rein in the middlemen. | | | | PLANET DEM POLITICAL VIOLENCE WATCH: Pennsylvania state police said they would charge a man with attempted murder after he allegedly set Gov. Josh Shapiro’s residence ablaze, the Philly Inquirer’s Gillian McGoldrick and Anna Orso report. Cody Balmer, a 38-year-old from Harrisburg, will likely be charged with terrorism, though authorities haven’t commented on a motive. Shapiro and his family had to evacuate overnight in the early hours of Sunday, following their Passover Seder. Authorities said Balmer had managed to escape police and get inside the house. The fallout: Shocking images indicate major damage in the room where Shapiro had held the dinner Saturday — see a compilation of them here. Shapiro vowed yesterday, “I refuse to be trapped by the bondage that someone attempts to put on me by attacking us as they did here last night.” Public officials across the political spectrum joined in condemnation of the attack, particularly the targeting of a prominent Jewish governor during Passover. “Really disgusting violence, and I hope whoever did it is brought swiftly to justice,” VP JD Vance posted on X. Nothing as yet from Trump. More scary stuff: The FBI said yesterday they believe a Wisconsin teenager who murdered his parents was intending to assassinate Trump, per the Milwaukee Journal Sentinel’s Hope Karnopp. Federal authorities said the killings seemed “to be an effort to obtain the financial means and autonomy necessary to carry out his plan” for overthrowing the government. DEMS IN THE WILDERNESS: With members of Congress back home for a couple of weeks, Democrats are trying to amp up pressure on the GOP by hosting “People’s Town Halls” in the districts of Republicans who won’t hold them. The latest was last night in Arizona, where Sens. Cory Booker (D-N.J.) and Mark Kelly (D-Ariz.), Rep. Greg Stanton (D-Ariz.) and others called out Rep. Juan Ciscomani (R-Ariz.) and Republicans for Medicaid changes likely coming in the reconciliation bill. The Democrats’ social media accounts blasted out Booker’s comments on Trump’s anti-DEI moves. Hot on the left: But the biggest outlet for Democratic energy and anger continues to be tub-thumping duo Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.), whose “Fighting the Oligarchy” tour drew another huge crowd in Salt Lake City yesterday, per The Salt Lake Tribune’s Emily Anderson Stern. Sanders’ team said there were 20,000 people present. They pulled even bigger crowds in L.A. over the weekend.
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| | | | | BEST OF THE REST ON TRUMP’S MIND: CBS News, again. The president watched “60 Minutes” last night and got so enraged by the segments that he wants the network’s license revoked. ROAD TO MAROCCO: Pete Marocco has been pushed out at the State Department, having orchestrated the dismantling of USAID, WSJ’s Brian Schwartz and Alex Ward scooped. Though Marocco succeeded in ending the vast majority of U.S. foreign aid — which aid groups have warned could threaten the lives of millions of people — he sometimes disagreed with Rubio. Two sources tell the Journal that Marocco was informed by others that he was now out, though another official lauded Marocco’s cost-saving initiatives and said “big things are in store” for him. The State Department is expected to send OMB its reorganization plan today, including details on how it will maintain limited foreign aid. WAR IN UKRAINE: Rubio slammed Russia’s latest missile attack on Ukraine — the worst of 2025 so far, killing at least 34 people in Sumy — as “horrifying,” per CNN’s Svitlana Vlasova and Rosa Rahimi. Special envoy Keith Kellogg warned that it “crosses any line of decency.” As Ukrainian President Volodymyr Zelenskyy urged the world to pile “pressure on the aggressor,” what will this new escalation mean for Trump’s efforts to achieve peace? On “60 Minutes” last night, Zelenskyy told CBS’ Scott Pelley that Trump should come to Ukraine to see the war’s devastation for himself. He also called out Vance for “somehow justifying [Russian President Vladimir] Putin’s actions.” But but but: Trump declined to criticize Putin for the attack last night, repeatedly suggesting it was a “mistake.” He told reporters on Air Force One: “I think it was terrible. And I was told they made a mistake. But I think it’s a horrible thing. I think the whole war is a horrible thing.” ANTITRUST THE PROCESS: Another major trial begins today in Washington — before the same federal judge, James Boasberg, whose ruling on Trump’s use of the Alien Enemies Act to deport people without due process went all the way to the Supreme Court. This time, the stakes are the very survival of Meta, which the FTC is suing in an attempt to unwind what it calls an unlawful monopoly in the Facebook parent company’s acquisition of Instagram and WhatsApp, POLITICO’s Brendan Bordelon previews. If Boasberg agrees with the government, the result could be a trust-busting breakup not seen on this scale for 40 years. One wild card: Will Mark Zuckerberg cozying up to Trump lead to a last-minute settlement? IRAN LATEST: The U.S. has suggested that the next round of nuclear talks with Iran, scheduled for Saturday, take place in Rome, Axios’ Barak Ravid reports. Envoy Steve Witkoff and lead Iranian negotiator Abbas Araghchi talked for roughly 45 minutes this weekend, Ravid adds — a win for the U.S., which had wanted direct rather than indirect negotiations.
| | | RECONCILABLE DIFFERENCES: They have the blueprint down, but now congressional Republicans need to write their massive reconciliation bill. And the yawning policy gaps within the party — including multiple red lines from different factions that conflict with each other — mean that there’s still a “very real possibility they might not be able to figure it out,” POLITICO’s Jordain Carney and Meredith Lee Hill report. Some senators want GOP leaders to craft the bill within six to eight weeks — or else get Trump involved or start breaking it into multiple bills. Expect key committee chairs to start working out the kinks during this recess. SICK LEAVE: As massive funding cuts and freezes hit American scientific research, a major Alzheimer’s study at the University of Washington is “in limbo,” NBC’s Evan Bush reports. The center’s grant money runs out at the end of the month and hasn’t been renewed yet, which could affect active patient care. STICKING TO THEIR GUNS: A new Colorado law will block the sale of many guns with detachable magazines, an effort to clamp down on shooters’ ability to reload during mass killings, WSJ’s Zusha Elinson and Cameron McWhirter report. The nation-leading law could inspire similar bills in other states, but gun rights groups say it will take major guns off the market and they plan to sue. DEMOCRACY WATCH: “Trump’s order could force states to buy costly new voting machines,” by WaPo’s Patrick Marley and Yvonne Wingett Sanchez: “If put into effect, his recent executive order attempting to transform elections could make it impossible for some states to use voting machines, election experts said. No voting systems are commercially available that meet the standards the president put forward in his executive order. Election officials broadly oppose hand-counting ballots as an alternative.” FOR YOUR RADAR: Ecuadorian President Daniel Noboa won reelection yesterday, a victory for the Trump-friendly, tough-on-crime conservative millionaire over leftist challenger Luisa González, who rejected the result, per WaPo. The Atlantic Council has an event breaking down the results at noon. TWO WEEKS TO GO: “What the Polls in Canada Are Really Saying,” by POLITICO’s Catherine Kim.
| | | | Cut through policy complexity and turn intelligence into action with POLITICO’s Policy Intelligence Assistant—a new suite of tools designed to save you time and demonstrate your impact more easily than ever—available only to Pro subscribers. Save hours, uncover critical insights instantly, and stay ahead of the next big shift. Power your strategy today—learn more. | | | | | | | TALK OF THE TOWN | | Donald Trump’s doctor declared him “fully fit for duty” and went so far as to praise his golf victories. IN MEMORIAM — “John J. LaFalce, hard-working WNY congressman for nearly 3 decades, dies at 85,” by The Buffalo News’ Jerry Zremski and Stephen Watson: He “led the passage of the Superfund legislation that cleans up the nation’s toxic waste dumps to this day. … He served for years as the top Democrat on the House Financial Services Committee and was instrumental in the passage of banking and financial regulations legislation during this period.” AND THE AWARD GOES TO — America’s Future, a libertarian-leaning social club and young professionals organization, is announcing its 1995 Society Award (formerly known as the Buckley Award) winners for this year: Robert Ordway of Indiana Gov. Mike Braun’s office, Hannah Cox of BASEDPolitics and Athens Media, Caleb Franz of Young Voices and Heather Pfitzenmaier of the State Policy Network. FIRST IN PLAYBOOK — Mandara Meyers has been named executive director of The States Project, leading its daily operations and strategic priorities for the cycle of state elections, as Daniel Squadron moves to the new role of president. Meyers previously was chief programs officer. — Stasha Rhodes is launching Antaeus, a social impact firm focused on strategic consulting, coalition building, grassroots organizing and issue campaigns. She currently is campaign director at United for Democracy, and is a Hub Project and Giffords alum. — Joy Arnold Russell is joining Sen. Angela Alsobrooks’ (D-Md.) office as senior adviser. She most recently was chief of staff to Alsobrooks when she was Prince George’s County executive. TRANSITIONS — Coby Sammis is joining the National Ocean Industries Association as VP of government affairs. He previously was senior policy adviser for Rep. Clay Higgins (R-La.). … Kristina Drye is now speechwriter for Sen. Martin Heinrich (D-N.M.). She previously was speechwriter for USAID Administrator Samantha Power. … … Grace Millerick is now director of government relations and political advocacy at the Federation of American Hospitals. She previously was director of federation relations and coalition partnerships at the U.S. Chamber of Commerce. … Josh Jorgensen is now director at McDermott+. He previously was director of legislative affairs at the Alliance of Community Health Plans. HAPPY BIRTHDAY: Rep. David Valadao (R-Calif.) … NBC’s Garrett Haake … Francis Collins … Joe Rospars of Blue State Digital … Boeing’s Betsy Stewart … Matt Zapotosky … Mike Duncan … POLITICO’s Lynn Fine and Sasha Issenberg … Amy Brundage of SKDK … BPI’s Adam Hodge … Ellie Hockenbury … CNN’s Adam Levine … Keith Appell … Steve Glickman … Ashok Pinto … Roberta Jacobson … Brad Schweer … Stephen Groves … NAM’s Erin Streeter … David Medina … Signal Group’s Blake Androff … Lina Francis … NYT’s Eileen Sullivan … Jeff Schogol … Shari Redstone … Kellen Moran … Ashley Gold … Mark Bryant of Agency Advisors … Amanda Marsh … Elisse Walter … Bobby Shringi … Neil Sroka … Nick Merrill Did someone forward this email to you? Sign up here. Send Playbookers tips to playbook@politico.com or text us at 202-556-3307. Playbook couldn’t happen without our deputy editor Zack Stanton and Playbook Daily Briefing producer Callan Tansill-Suddath.
| | | | A message from PhRMA: Insurers own PBMs, pharmacies – even doctors' offices. As a result, a few big health care companies decide what medicines you can get and what you pay at the pharmacy counter. Middlemen are taking more control of your health care, driving up costs and making it harder to get the care you need. When middlemen own it all, you lose. It's time to protect patients and rein in the middlemen. See how. | | | | | | | | Follow us on Twitter | | | | Subscribe to the POLITICO Playbook family Playbook | Playbook PM | California Playbook | Florida Playbook | Illinois Playbook | Massachusetts Playbook | New Jersey Playbook | New York Playbook | Ottawa Playbook | Brussels Playbook | London Playbook View all our political and policy newsletters | | Follow us | | | |
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