Pivot Podcast Episode Summary: "U.S.-China Trade Deal, Trump's Plane Grift, and the American Pope"

Release Date: May 13, 2025
Hosts: Kara Swisher (Tech Journalist) and Scott Galloway (NYU Professor)
Podcast Network: New York Magazine and Vox Media Podcast Network

1. Introduction

In this episode of Pivot, hosts Kara Swisher and Scott Galloway dive deep into some of the most pressing issues in tech, business, and politics. Skipping the usual advertisements and casual banter, the duo focuses on the implications of the recent U.S.-China trade deal, President Trump's controversial acquisition of a luxury plane from Qatar, and the election of Pope Leo XIV—the first American Pope.

2. U.S.-China Trade Deal

Kara Swisher opens the discussion by presenting the details of the newly reached U.S.-China trade agreement:

• Tariff Reductions: The U.S. has agreed to reduce tariffs on Chinese goods from 145% to 30%, while China will cut its tariffs on American products from 125% to 10%. These changes are set to take effect on Wednesday, accompanied by China’s suspension of countermeasures like restrictions on rare earth metals.

• Market Reactions: The stock markets responded positively, with the Dow Jones Industrial Average surging by 1,000 points at the opening bell.

• Scott Galloway critiques the deal as a form of capitulation, questioning the rationale behind initially imposing high tariffs and then negotiating them down so swiftly. He argues that the temporary reduction is a tactical victory for China, allowing them to continue their strategic divestment from the U.S. economy. Scott states at [14:37]:

  "This is capitulation. You don't show up and levy say you're levying 145% and then a week later start negotiating against yourself and saying they're unsustainable."

• Economic Implications: Galloway highlights the broader economic fallout, mentioning a 6% drop in the U.S. dollar index year-to-date and a $10 billion loss from the stock market, primarily affecting major tech giants like the Magnificent Seven. He emphasizes the long-term damage to the U.S.'s reputation as a reliable trading partner.

  "This is just, just stupid... America has taken for granted just how powerful. Having the dollar as the reserve currency..."

3. Trump's Plane Grift and Qatar Relations

The hosts shift focus to President Trump's latest maneuvers involving Qatar:

• Luxury Boeing 747800 Gift: The Trump administration plans to accept a $400 million Boeing 747800 from Qatar, intended to be retrofitted as a new Air Force One. Trump comments on the transparency of this transaction, though skepticism arises regarding the ethical implications.

  Kara mentions at [19:09]: "It's the griftiest grift yet. I mean, this is just..."

• Scott Galloway condemns the move as a stark example of government capture and corruption:

  "While they host our largest military base in the region, they also maintain cozy relationships with Iran and Hamas... This is not just corruption, it's the purchase of American influence from the Oval Office to our universities... [55:25]"

• Impact on U.S.-Middle East Relations: Galloway criticizes the administration for worsening America's leverage in the Middle East by fostering ties with authoritarian regimes that fund terrorist organizations like Hamas.

  "America's leverage in the Middle east deteriorates as our president becomes essentially an employee of Qatar Airways with nuclear codes."

4. The American Pope - Pope Leo XIV

A significant highlight of the episode is the election of Pope Leo XIV, the first American Pope, and its ramifications:

• Vision and Technology: Pope Leo XIV laid out his papacy vision over the weekend, emphasizing AI as a crucial issue for humanity and was notably seen sporting an Apple Watch during his first official mass, symbolizing his tech-savvy approach.

  Kara states at [25:21]: "He also seems to be very techy. Pope. Let's invite him on the show."

• Reactions from MAGA Supporters: While many celebrate the first American Pope, figures like Laura Loomer label him as "woke," and Steve Bannon predicts friction with Trump, indicating a polarizing reception among conservative circles.

• Political Leanings and Background: Research shows Pope Leo XIV has participated in both Republican and Democratic primaries, critiquing Trump's policies on platforms like X. His diverse background, including Creole and Haitian heritage, adds to his unique position in the Catholic Church.

• Scott Galloway's Insight: Galloway interprets the election as a reflection of America's current moral and political climate, noting:

  "The founding fathers wanted checks and balances, not deposits and withdrawals from foreign powers. So this is a yet again and I'm at a point where it's pretty easy and I think the other side loves it, how outraged we are." [55:25]

• Cultural and Religious Shift: Kara and Scott discuss the broader cultural implications, including the conservative shift within the Catholic Church and the challenges Pope Leo XIV faces in balancing modern technology with traditional values.

5. Chaos at Newark Airport

The episode also covers ongoing issues at Newark Airport:

• Frequent Outages: Newark has experienced three outages in under a week, causing significant disruptions. The hosts express concern over the aging infrastructure of U.S. air traffic control systems.

• Government's Response: Scott Galloway criticizes Transportation Secretary Sean Duffy for his handling of the situation, describing him as incompetent and blaming his reckless budget cuts.

  "We're dealing with really old equipment. We're dealing with copper wires, not fiber... [35:25]"

• Safety and Economic Impact: While assuring listeners that air travel remains safe, Galloway emphasizes the economic toll of such outages, which include delays costing families, businesses, and overall national productivity.

  "I find peace at Sam Vicente Bungalows talking to some people." [61:33]

6. Elizabeth Holmes' Partner Launches New Company

The duo touches upon Elizabeth Holmes' partner, Billy Evans, and his new venture:

• Hamanthus Diagnostics: Evans is raising funds for Hamanthus, a company touted as the future of diagnostics, aiming to revolutionize health testing with blood, saliva, and urine analyses. Plans include developing a stamp-size wearable for humans.

• Concerns Raised: The hosts express skepticism, noting the lack of regulatory oversight and the overshadowing association with Holmes' fraudulent past.

  Kara Swisher remarks at [42:01]: "I just think it's a little bit too much on the nose. I don't know. What do you think?"

• Scott Galloway shares his perspective on the severity of Holmes' sentence and questions the strategic wisdom behind Evans' efforts to redeem their image through a new startup.

  "The story won't be the startup whether it's a good idea or a bad idea. The story will be reminding everybody that his wife... committed fraud." [45:26]

7. OpenAI and Microsoft's IPO Negotiations

Another key topic is the potential Initial Public Offering (IPO) of OpenAI, in collaboration with Microsoft:

• Investment and Partnership: Microsoft has invested $13 billion in OpenAI and is negotiating terms that would allow OpenAI to go public. This move is seen as pivotal in the competitive landscape of AI development.

• Scott Galloway's Analysis: Galloway underscores the strategic importance of this IPO in the capital war for AI dominance, predicting that OpenAI aims for a valuation between $400-$500 billion to outspend competitors.

  "This is a capital war around getting the best talent, striking the best deals, making acquisitions... [47:02]"

• Market Competition: He highlights the fierce competition with companies like Meta's Llama, suggesting that technological differentiation in AI is increasingly challenging as advancements rapidly evolve.

  "It's a race... Marke has no guardrails of anything. So we'll see what happens." [48:39]

8. Wins and Fails

In the concluding segment, Kara Swisher and Scott Galloway reflect on recent events, highlighting notable successes and failures:

• Wins:

  • Nick Kristof's Exposé: Kara praises Kristof's New York Times column revealing internal emails from Pornhub that expose the company's negligence in handling child pornography, emphasizing the need for stringent oversight.

    "Kara says at [52:39]: These people should be sued back into the dark ages for what they're doing here."

  • New York's Smartphone Ban in Schools: Recognized as a positive move towards reducing distractions and improving academic focus.

  • Cecily Strong's SNL Return: Celebrated for her comedic portrayal of Judge Jeanine Pirro, bringing levity to serious political discussions.

• Fails:

  • Pornhub's Corporate Negligence: Highlighted as a significant failure in corporate responsibility and ethical management.

  • Jeanine Pirro's Appointment as Interim U.S. Attorney: Criticized as an irresponsible and incompetent choice, reflecting poorly on administrative decisions.

    Scott remarks at [52:39]: "The guy she replaced was venal and evil, but that doesn't mean she's any good."

9. Personal Anecdotes and Lighthearted Moments

While primarily focusing on substantial topics, the hosts share personal stories, including:

• Kara's Flight Experience: Recounting her conversation with Speaker Pelosi on a flight, highlighting Pelosi’s surprising knowledge and work ethic.

  "She pulled out... immediately, just out of this, she was almost like the Wikipedia herself." [05:20]

• Mother's Day Celebrations: Sharing heartfelt moments about celebrating Mother's Day, emphasizing family bonds and personal growth.

• Humorous Exchanges: Light-hearted banter about relationship dynamics and personal lives, providing a glimpse into the hosts' personalities.

Conclusion

This episode of Pivot offers a comprehensive analysis of significant geopolitical and economic developments, intertwined with personal insights and candid discussions between Kara Swisher and Scott Galloway. From critiquing international trade strategies and governmental corruption to exploring the cultural impact of an American Pope, the hosts provide listeners with a nuanced understanding of current events. Their blend of humor, expertise, and critical thinking makes for an engaging and informative listen for those keen on the intersection of technology, business, and politics.

For more insights and detailed discussions, tune into Pivot every Tuesday and Friday on your preferred podcast platform.