| | | |  | | By Bethany Irvine | | Presented by |  | | | |  | THE CATCH-UP | | TRUMP ON MUSK: “I thought it was very nice that he did that,” President Donald Trump told the NY Post by phone this morning, responding to Elon Musk’s overnight apology for some of his X posts against Trump last week. Left unsaid: Trump “didn’t say whether he was willing to let bygones be bygones” with Musk moving forward.
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Treasury Secretary Scott Bessent expressed optimism over the White House’s preliminary trade deal with China, but noted “we will see” if the country continues to be a reliable trading partner. | Francis Chung/POLITICO | INSIDE THE CABINET: A trio of Trump’s Cabinet members were out this morning vehemently defending the president’s agenda and deliberately sidestepping stickier questions on some finer details. On China: Treasury Secretary Scott Bessent expressed optimism over the White House’s preliminary trade deal with China, but noted “we will see” if the country continues to be a reliable trading partner. Bessent’s comments before the House Ways and Means Committee came mere hours after he returned from negotiations in London with senior Chinese officials over a preliminary trade agreement, which Trump lauded on Truth Social earlier today as “a great WIN for both countries!!!” The nitty-gritty: Commerce Secretary Howard Lutnick provided some more details on the deal this morning, telling CNBC that the tariff rates on China are likely not to change. “You can definitely say that,” he said. In a breakdown of the numbers, Lutnick noted that the 55 percent tariff figure that Trump touted in a Truth Social post this morning is from existing levies. The secretary lauded the president’s deal, saying that Trump’s call last week with Chinese President Xi Jinping “changed everything,” adding “we’re in a very good position.” Beijing is “going to approve all applications for magnets from United States companies right away. Think of that language: right away. Very much like the same day,” Lutnick said. A splash of cold water: POLITICO’s Daniel Desrochers and colleagues note that “There’s one problem: It’s largely the same deal the two countries agreed to last month,” and the initial readouts “underscore just how far the Trump administration is from achieving its larger goals in the trade negotiations with Beijing. On the megabill: Back on the Hill, Bessent hedged a bit on Republicans’ megabill, which is getting a workover in the Senate now. He told the Ways and Means panel “it remains to be seen” if the massive tax and spending package would increase the national debt — though he went on to note that the CBO score on tariff revenue is still up in the air. Bessent also mounted a defense of the controversial Section 899 tucked into the bill, saying it’s a “fiscal bill, not a revenge bill.” HEGSETH GETS AN EARFUL: Defense Secretary Pete Hegseth this morning was grilled over Russia’s war in Ukraine, drawing particularly notable barbs from Republicans on a Senate Appropriations subpanel. Though the hearing was slated to focus on the department's budget, Sen. Mitch McConnell (R-Ky.) and other GOP lawmakers confronted the secretary over the U.S.’s response to the conflict, POLITICO’s Connor O'Brien and Joe Gould report. McConnell pressed Hegseth over who “the aggressor” is in the conflict, asking “Which side do you want to win?” Hegseth responded that Russia is the aggressor and that “peace serves the interest of both parties.” “It seems to me pretty obvious that America's reputation is on the line. Will we defend democratic allies against authoritarian aggressors? That’s the international concern I have. And I think a number of my members share that view,” McConnell said. Hegseth and Joint Chiefs of Staff Chair Gen. Dan “Razin” Caine also faced pointed questions from Sen. Lindsay Graham (R-S.C.), who asked the pair: “Is Putin gonna stop in Ukraine?” Though Caine indicated he didn’t believe Putin would stop there, Hegseth replied with what seemed to be the Cabinet's choice line of the day: “Remains to be seen, senator.” “Well, [Putin] says he's not,” Graham replied. “This is the ’30s all over. It doesn’t ‘remain to be seen.’ He tells everybody around what he wants to do. … I like what you’re doing. I just think we gotta get this stuff right.” ON THE LA PROTESTS: As anti-ICE protests continue in California and across the country, Hegseth also danced around a direct question on whether the department is prepared to authorize military forces to “detain or arrest American citizens” who are taking part in the Los Angeles protests. “Every authorization we’ve provided the National Guard and the Marines in Los Angeles is under the authority of the president of the United States, is lawful and constitutional,” Hegseth told Sen. Jack Reed (D-R.I.). “So the answer is yes?” Reed repeated multiple times. “So the answer is yes.” Good Wednesday afternoon. Thanks for reading Playbook PM. Drop me a line at birvine@politico.com.
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Donald Trump expressed growing doubts about reaching a long-sought nuclear deal with Iran. | Ken Cedeno/UPI | 1. TRUMP SOURS ON IRAN TALKS: In a new interview on the NY Post’s new podcast “Pod Force One,” Trump expressed growing doubts about reaching a long-sought nuclear deal with Iran, telling host Miranda Devine: “I’m getting more and more less confident about it.” He added: “They seem to be delaying, and I think that’s a shame, but I’m less confident now than I would have been a couple of months ago.” If this all sounds familiar: Trump’s comments echo similar doubts he has expressed around the negotiations between the Kremlin and Ukraine, CNN’s Jim Sciutto notes. 2. INFLATION NATION: The monthly Consumer Price Index report released this morning showed the annual rate of inflation is up to 2.4 percent in May, up just a tick from 2.3 percent in April — undershooting some economists’ predictions. The data also showed that goods prices, excluding food and energy commodities, remained the same as the prior month, indicating the economy hasn’t yet felt the full impact of Trump’s tariffs. What’s next for the Fed? Though the White House has been urging the Federal Reserve to lower interest rates for months, the somewhat benign pricing numbers “indicates the Fed is unlikely to consider further interest rate cuts until at least September,” per CNBC. 3. IMMIGRATION FILES: As the country braces for continued protests over the Trump administration’s immigration policies, the 700 National Guard members mobilized to Los Angeles “are still undergoing training” and it “is not yet clear when they will be employed onto the streets to help with protests,” per CNN’s Natasha Bertrand. FWIW: Hegseth in remarks before lawmakers this morning said that all the troops had already completed training. The troops deployed to the city are “authorized to temporarily detain people only in a very specific circumstance, which is when de-escalation is not working and someone needs to be temporarily detained by a service member until they can be passed off to law enforcement,” per CNN. Meanwhile, other major cities around the country are prepping for similar protests expected today and through the weekend. In Texas, Gov. Greg Abbott confirmed that he is deploying the National Guard to remain “on standby” in San Antonio ahead of planned anti-ICE protests in the city, The San Antonio-Express News’ Nancy Preyor-Johnson and Sig Christenson report. Austin Mayor Kirk Watson also confirmed that the city was told the National Guard “will be prepared to assist the Texas Department of Public Safety if deemed necessary” for any future protests, per The Austin American-Statesman’s Tony Plohetski. The move comes two days after multiple anti-ICE protesters were arrested near the state Capitol in Austin, with officers deploying tear gas and pepper-spray balls. And in the Sunshine State: “Florida child welfare agency calls ICE on teen migrant in foster care, sparking criticism,” by The Miami Herald’s Carol Marbin Miller, Ana Ceballos and Syra Ortiz Blanes 4. RECONCIALABLE DIFFERENCES: The Senate continues to hash out its version of the GOP megabill ahead of a July 4 deadline. But members of the Senate Finance Committee may be able to breathe a sigh of relief after Majority Leader John Thune signaled the White House has come around to back a plan to make expiring business-related provisions of the 2017 Tax Cuts and Jobs Act permanent, The National Review’s Audrey Fahlberg scoops. Though the House version of the bill extends several of these expiring provisions through 2029, many Senate Republicans “have been wary of repeating that temporary model in this year’s tax package, even though permanent full expensing carries a higher price tag.” That old familiar threat: Though most lawmakers continue to insist they are on track to reach their July deadline for sending the bill to Trump, Thune told reporters today that the Senate will work through the planned holiday recess if it isn’t finished by then, per NBC’s Frank Thorp.
| | | | Playbook, the unofficial guide to official Washington, isn’t just a newsletter — it’s a podcast, too. With new co-hosts who bring unmatched Trump world reporting and analysis, The Playbook Podcast dives deeper into the power plays shaping Washington. Get the insider edge—start listening now. | | | | | 5. THE MATH AINT MATHIN’: The White House’s push to claw back over $9 billion in congressional spending seemed like a done deal last week, with Trump’s massive rescissions proposal requiring only a simple majority of both chambers to pass. Now, the package — which includes steep cuts to foreign aid and public media outlets — could be in hot water as the holdouts pile up, PBS’ Lisa Desjardins reports. Rep. Nicole Malliotakis (R-N.Y.) has joined three other GOP lawmakers — Reps. Don Bacon (R-Neb.), David Valadao (R-Calif.), Mark Amodei (R-Nev.) — in opposition over concerns about cuts to public broadcasting programs, marking the unlucky number of “no” votes for Speaker Mike Johnson. 6. THE AGE-OLD QUESTION: Washington is abuzz after 87-year-old D.C. Del. Eleanor Holmes Norton told reporters she’s running for election again, only for her office to hedge the statement. In a deep dive on the 18-term lawmaker, NYT’s Annie Karni reports that colleagues and friends have observed a “notable decline” in Norton, the oldest member of Congress, who is now “vastly diminished and struggling to fulfill her duties as a member of Congress.” In recent months, “even staff members who as recently as last election cycle thought that she could soldier on with help are now steering her away from running for a 19th term.” Hours after the NYT’s piece was published, Norton claimed in a post on X that it had “substantial factual inaccuracies and misleading characterizations that I'm working to get corrected.” As of the publication of this newsletter, the NYT has added no corrections. 7. SWITCHING IT UP: Right-wing radio personality and former Illinois GOP Rep. Joe Walsh, who registered as a Democrat last week, says he is weighing a move to South Carolina and a run against Lindsey Graham next year, POLITICO’s Adam Wren scoops. Walsh, a noted Never Trumper, said “Democrats have to take a new, asymmetrical approach to their Republican opponents and have to ‘fucking wake up and begin to do different things.’” As challengers continue to mount, Graham’s reelection bid could carry a heavy price tag for the GOP. His last race against Jamie Harrison “was among the most expensive of its cycle, totaling nearly $200 million,” Adam writes. 8. MEDIAWATCH: “The U.S. granted these VOA journalists asylum. Now, it has fired them,” by WaPo’s Scott Nover: “After [Russian President Vladimir] Putin came to power in 1999, he gradually clamped down on independent media in the country. … For foreign-born journalists who have found refuge not just in the U.S. but at Voice of America, losing their jobs feels like an existential threat — one that could stop them from working every day to speak truth to power, for the first time in their careers.”
| | | | 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 | | OUT AND ABOUT — The Alpine Group hosted a reception last night celebrating the recent opening of Alpine Group Texas and featuring Texas treats like SirDavis Whisky, 2fifty BBQ, Shiner Bock beer and Blue Bell ice cream: Reps. Beth Van Duyne (R-Texas), Marc Veasey (D-Texas), Brandon Gill (R-Texas) and Jodey Arrington (R-Texas), Katie Vincentz, Andrew Leppert, Ryan Dilworth, Tasia Jackson, Mark Longoria, Matt Esguerra, Karen Navarro, Raven Reeder, Russell Thomasson, Brayden Woods, Hayden Upchurch, Jianna Covarelli, Emily Stipe, Nick D’Angelo, Drew Wayne, Keenan Austin Reed, Barry Brown, Rhod Shaw, Greg Walden, Pat Shortridge and Stewart Hall. NEWS FROM POLITICO HQ: POLITICO has announced several new roles for our talented colleagues across the newsroom: Sally Goldenberg will be POLITICO’s new senior politics editor, Paul Demko will be New York policy editor, Mona Zhang will be a New York policy reporter and Natalie Fertig will be a news reporter focused on our state coverage. TRANSITIONS — Morrison Foerster has added Alexandra Steinberg Barrage and Matthew Bornfreund as partners. Both previously were partners at Troutman Pepper Locke. Did someone forward this email to you? Sign up here. Send Playbookers tips to playbook@politico.com or text us on Signal here. Playbook couldn’t happen without our editor Zack Stanton, deputy editor Garrett Ross and Playbook Podcast producer Callan Tansill-Suddath.
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