Today in Politics, Bulletin 141. 5/29/25

… TACO Trump is all the rage on social media after CNBC reporter Megan Cassella asked Trump this question about him always backing down on tariffs: “Wall Street analysts have coined a new term called the ‘TACO’ trade. They’re saying Trump always chickens out, and that’s why markets are higher this week. What’s your response to that?”

… Trump came unglued: “I chickened out? I’ve never heard that. Because I reduced China from 145% down to 100 and then down to another number? 6 months ago, this country was stone cold, dead. We had a dead country. We had a country, people didn’t think it was going to survive. And you ask a nasty question like that! It’s called negotiation. We were doing no business because of the tariff, because it was so high. But I knew that. But don’t ever say what you said. That’s a nasty question.”

… Seems a bit touchy about this subject.

… Robert Armstrong of the Financial Times came up with the ‘TACO’ term when he wrote a few weeks ago that the markets stopped reacting as strongly to Trump’s tariff announcements because they know he will eventually cave: “A lot to do with markets realizing that the Trump admin does not have a very high tolerance for market and economic pressure, and will be quick to back off when tariffs cause pain.”

… Market analyst Ed Yardeni to CNBC: “Trump’s style in negotiating deals is he huffs and he puffs, but he doesn’t blow the house down.”

… That set off a blizzard of memes mocking Trump alternately as a taco or a chicken. Today is now officially Taco Trump Thursday!

… Former podcaster, fake tough guy, now Dep. FBI Director Dan Bongino went on Fox to cry about how difficult it is to have to work for a living: "I gave up everything for this. I mean, you know, my wife is struggling. I stare at these four walls all day in DC, by myself, divorced from my wife. Not divorced, but I mean, separated. And it's hard."

… If they are separated, she isn’t struggling.

… But Bongino says he’s working hard on important stuff: “As we read and process reports of a new Covid strain emerging, I want you to know that we are actively investigating, in multiple field offices, the cover-up of the origin of the Covid virus, along with associated matters requiring our attention. You deserve answers.”

… Bongino also claims that he is closing in on the J6 pipe bomber: “Before us, no one seemed to show any interest in this case. The second we got in, I put a team on it. I’m pretty confident that we’re closing in on some suspects.”

… I was interested in the case.

… NOTUS: “HHS Sec RFK Jr says his Make American Healthy Again Commission report harnesses ‘gold standard’ science, citing more than 500 studies and other sources to back up its claims. Those citations, though, are rife with errors, from broken links to misstated conclusions. Seven of the cited sources don’t appear to exist at all.”

… Press Sec Karoline Leavitt was asked about the report today. Reporter: An investigation found the MAHA commission report cites studies that appear not to exist. Leavitt: “I understand there were some formatting issues. It does not negate the substance of the report.” Reporter: Is AI used to put together these reports? Leavitt: “I can’t speak to that.”

… Two different federal courts ruled that the vast majority of Trump’s tariffs violate the Constitution since he tried to use emergency powers to bypass the taxing authority of Congress. First, the US Court of International Trade in NY ruled that his “Liberation Day” tariffs were illegal, exceeded his authority and left the country’s trade policy dependent on his whims. A fed judge in DC then followed that up with a similar ruling.

… The case in NY was decided by Timothy Reif, who was appointed by Trump, Jane Restani, a Reagan appointee, and Gary Katzman, an Obama appointee.

… The ruling left tariffs in place on autos and auto parts, plus steel and aluminum, since they were imposed using a specific federal statute.

… WH Policy Director Stephen Miller: “The judicial coup is out of control.”

… Former Rep. Tom Malinowski: “Critical lesson from ruling striking down tariffs: It was small businesses that stood up to the president in court that succeeded. Not the big corporations, like Apple and Amazon, that contributed to his inauguration and generally tried to suck up.”

… Sen. Kevin Cramer (R-ND) on Fox: "I don't think anybody can deny that Donald Trump has tried to stretch-- ah, er, maybe just explore, the edges of executive power."

… Trump filed an emergency appeal, and a federal appeals court then issued a temporary stay of the ruling from the US Court of International Trade until it can hearing arguments in the case. The parties were ordered to file briefs no later than June 9.

... Trump’s economic advisor Kevin Hassett on Fox Business: "This trade negotiation season has been really, really effective for the American people and it's unfortunate that people would attack it, as the journalists did or the way the judges just did."

… Trump asked Fed Chair Jerome Powell to come to the WH so he could beg him to lower interest rates to jumpstart the sputtering economy that Taco Trump wrecked. The Fed issued a statement after: “Chair Powell did not discuss his expectations for monetary policy, except to stress that the path of policy will depend entirely on incoming economic info. Chair Powell said that he and his colleagues will set monetary policy to support maximum employment and stable prices, and will make those decisions based solely on careful, objective, and non-political analysis.”

… Reuters: Weekly jobless claims increased 14,000 to 240,000

• Continuing claims rise 26,000 to 1.919 million

• Corporate profits fall $118.1 billion in first quarter

• Economy contracts at 0.2% rate in Q1 by all measures

… “The number of Americans filing new applications for jobless benefits increased more than expected last week and the unemployment rate appeared to have picked up in May, suggesting layoffs were rising as tariffs cloud the economic outlook. The report from the Labor Department showed a surge in applications in Michigan last week, the nation's motor vehicle assembly hub. The number of people collecting unemployment checks in mid-May was the largest in 3-1/2 years. The outlook for the economy is dimming with other data showing a sharp decline in corporate profits in Q1.”

… Christopher Rupkey, chief economist at FWDBONDS: "This is a sign that cracks are starting to form in the economy and that the outlook is deteriorating. There is nothing great about today's jobless claims data and the jump in layoffs may be a harbinger of worse things to come."

… CNBC on bond rates rising: “Investors will be awaiting the gross domestic product growth rate for fresh insights into the health of the US economy. They are also looking ahead to the personal consumption expenditures index — the Fed’s favorite inflation gauge — which is set to be released on Friday morning.”

… CNBC: “Spending from foreign visitors to the US is poised to fall by $8.5 billion this year as negative perceptions tied to trade and immigration policy lead overseas tourists to look elsewhere, according to Oxford Economics. International arrivals to the US are expected to fall about 9% this year, Aran Ryan, director of industry studies at Tourism Economics, part of Oxford Economics, wrote in a research note last week.”

… “Other estimates suggest the potential economic loss may be even larger. The World Travel & Tourism Council said this month it expects the US economy to lose a staggering $12.5 billion in spending from international visitors in 2025, a ‘direct blow to the US economy overall, impacting communities, jobs, and businesses from coast to coast.’”

… Flight bookings to the US between May and July were down 11% from the same time last year. Air bookings from Europe (-10%) and Canada (-33%) are down the most.

… CA Gov Gavin Newsom to Meidas: “The ports in LA saw 17 cancellations of vessels. 10 cancellations already that we’re projecting in June. This has already had an impact. Shortages and supply constraints are inevitable if this continues. It’s self-inflicted by the Trump admin. We cannot overstate the impacts of the damage.”

… Stephen Miller’s wife Katie is leaving the Trump admin to work directly for Musk, which has prompted rumors that she may soon end up being Musk’s latest baby mama given his predilection for procreation. CNN: “She is reportedly helping Musk to set up media interviews unrelated to his govt work now that he has officially stepped down as head of DOGE. Musk has given interviews this week to Ars Technica, CBS News and WaPo, where he complained about WH betrayal and criticized the ‘big beautiful bill’ Trump was trying to push through Congress.”

… USA Today columnist Rex Huppke: "I read the words 'Stephen Miller' and 'throuple' then passed out for like 20 minutes. Has it stopped yet or are all the worst things imaginable still happening all at once?"

… James Palmer, editor of Foreign Policy: "Congratulations to Katie Miller for being literally the only woman in the world for whom joining Elon Musk’s harem would be a step up.”

… Far-right Russian fascist Alexander Dugin, who is often called ‘Putin’s Brain’ posted on X how sad he was to see Elon Musk leave govt: “I regret Musk departure. Dems are happy. That means something is going wrong. They were an excellent pair. DOGE made a great favor to the entire world liquidating USAID, Health Dept and Dept of Education. That was a serious strike on the Deep State.”

… The Pentagon just issued a statement that Elon’s ‘List 5 things you did last week’ mandatory emails for all employees have been permanently canceled.

… MN Gov Tim Walz responded to the story about Musk’s last day in the Trump admin: “Finally rooting out waste and abuse.”

… WSJ reported that Musk is using his clout with the Trump admin to try and muscle his way into the deal made by arch-rival Sam Altman with UAE: “Elon Musk worked privately to derail the OpenAI deal announced in Abu Dhabi last week if it didn't include his own AI startup, at one point telling officials in the UAE that there was no chance of Trump signing off unless his company was included.”

The streak of slow-ish news days this week certainly ended today, and this Bulletin is packed with news. I’m still going to put out another article in a little bit of my top Taco Trump Memes, so stay tuned. If you missed the last Bulletin, you can find it here.

I am going to be off tomorrow because we are doing a FRI-SAT trip to Rhode Island. Tomorrow is Newport where we are visiting 3 Gilded Age mansions and the International Tennis Fall of Fame. Saturday is Providence where we have a food tour, Italian dinner on Federal Hill, and then the WaterFire downtown at night on the river.

Next Bulletin is the weekend recap on Sunday night.

… After her trips to Israel and the Middle East, Kristi Noem then went to Poland to urge voters in that country to vote for far-right candidate Karol Nawrocki in this Sunday’s presidential election. She called pro-EU centrist candidate Rafal