Trump's China Decision, Potential Tax Increase For Rich, Elon Steps Back from DOGE: AM Update 4/24

Summary

The Megyn Kelly Show – Episode Summary Title: Trump's China Decision, Potential Tax Increase For Rich, Elon Steps Back from DOGE: AM Update 4/24
Release Date: April 24, 2025
Host: Megyn Kelly
Platform: SiriusXM

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1. Introduction and Overview

Megyn Kelly opens the episode by outlining the key topics for the day’s discussion: President Trump's evolving tariff policy toward China, potential tax increases on the wealthy, and Elon Musk’s decision to reduce his role in governmental affairs to focus more on Tesla amid rising activism against the company.

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2. President Trump's Tariff Policy Toward China

Key Developments: President Trump is reevaluating his administration's tariff strategy on Chinese imports. Initially set at 145%, there is consideration to lower these tariffs significantly or restructure them into a tiered system based on national security implications.

Notable Quotes:

• Donald Trump [02:17]:
  “I’m not going to say, oh, I’m going to play hardball with China. I’m going to play hardball with you, President Xi... Ultimately they have to make a deal because otherwise they’re not going to be able to deal in the United States.”

• Donald Trump [02:47]:
  “It’ll come down substantially, but it won’t be zero... 145% is very high and it won’t be that high. There will not be anywhere near that number.”

Discussion Highlights:

• The Wall Street Journal reports that Trump is contemplating reducing tariffs to 50-65%, with a possible tiered approach: 35% on non-national security threats and at least 100% on goods deemed harmful to national security.
• Trump's openness to direct negotiations with Chinese President Xi Jinping, though the Chinese government insists on a structured framework.
• Treasury Secretary Scott Besant emphasizes the need for China to rebalance its export-driven economy, labeling its current model as unsustainable and harmful globally.

Market Impact: Following these developments, U.S. markets responded positively with the Dow Jones rising by 419 points, the S&P by 88 points, and the NASDAQ by 407 points.

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3. Potential Tax Increases for the Wealthy

Key Developments: In a surprising move deviating from traditional Republican policies, President Trump is reportedly considering raising the top tax rate for affluent Americans. The proposal suggests increasing the tax rate for individuals earning over $1 million from the current 37% to 40%.

Notable Quotes:

• Donald Trump [06:50]:
  “By bringing it from the 37 as we’re redoing the tax plan to perhaps 38.6 right. It would still be 1% less than it was before.”

• Steve Bannon [07:16]:
  “President Trump is not going to allow a snapback at the upper bracket... He will create a million dollar bracket and that bracket will be at 40%.”

• Newt Gingrich [07:56]:
  “We need to look at going in and trying to find policies to spur the economy to move things forward and you don’t do that by raising taxes.”

Discussion Highlights:

• The proposed tax increase aims to generate an additional $15 billion in revenue, supporting the Trump administration’s goal to slash federal spending and make previous tax cuts permanent.
• Steve Bannon positions the tax increase as a strategic political maneuver against Democrats, contrasting it with Democratic inaction on similar measures.
• Opposition within the Republican Party emerges, with figures like Newt Gingrich and Dan Muser criticizing the proposal as contrary to economic growth and tax-break preferences.

Political Ramifications:

• The tax proposal is part of a broader "big beautiful tax bill" that seeks to balance fiscal conservatism with targeted revenue generation.
• Republican lawmakers are scheduled to release the tax package in May, facing internal debates over the viability and support for the tax hike.

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4. Immigration and Legal Challenges

Key Developments: Border czar Tom Homan criticizes activist groups for obstructing the Trump administration's mass deportation efforts. Simultaneously, the administration faces legal hurdles as federal courts challenge the use of the Alien Enemies Act for deportations.

Notable Quotes:

• Tom Homan [08:50]:
  “They’re putting every roadblock imaginable in front of us to prevent us from doing that.”

• Newt Gingrich [11:05]:
  “I am not defending the man. I’m defending the rights of this man to due process... if we take it away from him, we do jeopardize it for everybody else.”

Discussion Highlights:

• The U.S. Supreme Court temporarily halted deportations under the Alien Enemies Act, prompting similar actions in Colorado and New York.
• The case of Kilmar Abrego Garcia, an El Salvadoran national with gang affiliations, has become a focal point. Critics argue the administration’s actions undermine due process and executive authority.
• Progressive lawmakers, including Senator Chris Van Hollen, advocate for Garcia’s release, framing it as a broader issue of legal rights and governmental overreach.
• Republican Congressman Guy Reschenthaler counters by claiming Democrats are politicizing national security issues for electoral gain.

Legal and Political Implications:

• The ongoing legal battles emphasize the polarized views on immigration policy and executive power.
• Democratic efforts to challenge the administration’s deportation policies highlight potential legislative and judicial confrontations in the future.

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5. Elon Musk Steps Back from DOGE to Focus on Tesla

Key Developments: Elon Musk announces his intention to reduce involvement with the Department of Government Efficiency (DOGE) to concentrate more on Tesla, following a downturn in the company’s performance and increased activism against Tesla’s political engagements.

Notable Quotes:

• Elon Musk [13:00]:
  “Starting probably next month, May, my time allocation to those will drop significantly... Starting next month, I’ll be allocating far more of my time to Tesla.”

• Elon Musk [14:11]:
  “I believe the right thing to do is to justify the ways and fraud and get the country back on the right track and working together with President Trump and his administration...”

Discussion Highlights:

• Tesla reported a 71% drop in Q1 profits compared to the previous year, with the stock price declining by 50% from its December peak.
• The company has been targeted by left-wing activists in a campaign of vandalism and arson, with over 50 incidents reported since January.
• Despite stepping back from DOGE, Musk assures that his involvement with the Trump administration’s initiatives will continue to support what he describes as national economic stability.

Market Impact: Following Musk’s announcements, Tesla’s stock experienced a minor recovery, rising approximately 5% after his statements, indicating investor confidence despite operational challenges.

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6. Conclusion

Megyn Kelly wraps up the AM Update by reiterating the major topics discussed: the potential shift in Trump’s tariff policies toward China, the controversial proposal to increase taxes on the wealthy within the GOP, the legal struggles surrounding the administration’s immigration enforcement, and Elon Musk’s strategic repositioning to prioritize Tesla amidst external pressures. These discussions highlight the dynamic interplay between economic policies, political strategies, and corporate leadership shaping the current American landscape.

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End of Summary

Transcript

[Megyn Kelly]

Good morning, everyone. I'm Megyn Kelly. It's Thursday, April 24, 2025, and this is your AM update.

[Donald Trump]

So I think it's going to work out very well. But no, it's at 145%. There will not be anywhere near that number.

[Megyn Kelly]

President Trump making news on his tariff policy toward China.

[Tom Homan]

We're trying to remove these public safety threats, national security threats, as quick as possible. They're putting every roadblock imaginable in front of us to prevent us from doing that.

[Megyn Kelly]

Borders are Tom Homan unleashing on activist groups trying prevent President Trump from deporting criminal illegal aliens. And President Trump considering increasing taxes on the wealthy in his so called big beautiful tax bill. All that and more coming up in just a moment on your AM Update.

[Dick Durbin]

As President Trump is settling into his new administration, one of the top Democrats in Congress aiming to undermine the Trump agenda is Democrat Senator Dick Durbin of Illinois. And according to our sponsor, the Electronic Payments Coalition, Senator Durbin has a new plan, a government takeover of your credit card.

[Megyn Kelly]

Today, Americans have thousands of choices in.

[Dick Durbin]

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[Megyn Kelly]

The Trump administration offering to de escalate its tariff war with China, weighing a dramatic restructuring of our tariffs on Chinese imports. According to the Wall Street Journal, President Trump is considering lowering tariffs on Chinese goods to 50 or 65%. Currently they're at 145%. He also may impose a tiered system, 35% levies on goods not considered a threat to national security and at least 100% for goods that do pose that threat. The Journal noting the president has yet to make a final decision. On Tuesday, President Trump signaling openness to working nicely with the Chinese, making clear neither the previous setup nor the current status quo will stand.

[Donald Trump]

I'm not going to say, oh, I'm going to play hardball with China. I'm going to play hardball with you, President Xi. No, now we're going to be very nice. They're going to be very nice and we'll see what happens. But ultimately they have to make a deal because otherwise they're not going to be able to deal in the United States. So we want them involved, but they have to and other countries have to make a deal 145% is very high and it won't be that high. It's not going to be that high.

[Megyn Kelly]

What level do you think it'll come down to?

[Elon Musk]

If you have.

[Donald Trump]

It'll come down substantially, but it won't be zero. Used to be zero. We were just destroyed. China was taking us for a ride and just not going to have, it's not going to happen. So I think it's going to work out very well. But no, it's at 145%. There will not be anywhere near that number.

[Megyn Kelly]

President Trump reportedly looking to speak with Chinese President Xi Jinping directly, an idea the Chinese are resisting without an agreed upon framework. On Wednesday, President Xi telling reporters, quote, tariff wars and trade wars harm the legitimate rights and interests of of all countries. A spokesperson for the Chinese Foreign Ministry later doubling down, telling reporters the U.S. must, quote, stop its threats and coercion and engage with China on the basis of equality, mutual respect and reciprocity. Treasury Secretary Scott Besant, speaking on Wednesday at the International Finance Forum, arguing China has more to lose and gain from a deal rebalancing their export heavy economy.

[Scott Besant]

China in particular is in need of a rebalancing. China's economic system, with growth driven by manufacturing exports, will continue to create even more serious imbalances with its trading partners if the status quo is allowed to continue. China's current economic model is built on exporting its way out of its economic troubles. It's an unsustainable model that is not only harming China, but the entire world. China needs to change. The country knows it needs to change. Everyone knows it needs to change. And we want to help it change because we need rebalancing, too.

[Megyn Kelly]

On Wednesday, markets reacting positively. The Dow Jones rising by 419 points, the S&P gaining 88 points, and the NASDAQ rising by 407 points. Coming up, could President Trump be about to increase taxes on the wealthy? And border czar Tom Homan slams activist groups for intervening in the Trump administration's mass deportation effort.

[Dick Durbin]

Tax day may have passed, but for millions of Americans, the real trouble is just the beginning. If you miss the April 15 deadline or still owe back taxes, the IRS is ramping up enforcement. And every day you wait might make things worse. With over 5,000 new tax liens filed daily and tools like property seizures, bank levies and wage garnishments, you don't want to mess around.

[Megyn Kelly]

Okay?

[Dick Durbin]

The good news is there's still time for Tax Network USA to help self employed or a business owner. Even if your books are a mess. They've got it covered. Tax Network USA specializes in cleaning up financial chaos and getting you back on track fast. Even after the deadline, it's not too late to regain control. Your consultation is completely free and acting now could stop penalties, threatening letters and surprise levies before they escalate. Call 1-800-958-1000 or visit tnusa.com Megan, you may have missed April 15, but you haven't run out of options. Let Tax Network USA help before the IRS makes the next move.

[Megyn Kelly]

In a possible break from traditional Republican orthodoxy, President Trump reportedly considering raising taxes on the wealthy, which means small business owners and job creators. Fox News Digital reporting. White House aides are quietly floating a proposal to House Republicans that would raise the tax rate to 40% for Americans making more than $1 million, the current highest bracket set at 37% for those making 609,000 or more. The proposal comes as lawmakers work with the White House on an ambitious so called big beautiful tax bill aiming to slash federal spending and make the 2017 Trump tax cuts permanent, while adding in additional cuts like no taxes on tips on overtime or on Social Security. Pennsylvania Republican Dan Muser telling Fox a new tax bracket could generate significant revenue.

[Donald Trump]

By bringing it from the 37 as we're redoing the tax plan to perhaps 38.6 right. It would still be 1% less than it was before. So if you were to bring it up at one point, it brings about.

[Megyn Kelly]

$15 billion in revenues, Trump adviser and senior counselor in the first Trump administration, Steve Bannon, telling the Megyn Kelly show on Tuesday. It's an easy political win against Democrats.

[Steve Bannon]

If you look at the tax bill, everything's everybody's talking about is President Trump is open to. And I think you're going to be shocked to see that President Trump is not going to allow a snapback at the upper bracket. In fact, I think he'll create a million dollar bracket and that bracket will be at 40%. He will actually tax the wealthy in this entire something that Schumer and Pelosi and Biden didn't do in the first hundred days when they had everything in 2021. They talked about it. It didn't even come out of committee. President Trump will do it.

[Megyn Kelly]

Not all Republicans on board, however, some GOP lawmakers expressing stern opposition. I'm not going to vote for that. I've never met a tax break I didn't like.

[Newt Gingrich]

We need to look at going in and trying to find policies to spur the economy to move things forward and you don't do that by raising taxes.

[Megyn Kelly]

Former House Speaker Newt Gingrich on Tuesday posting a screenshot of a note on X he says is from President Trump. It reads in part, quote, george Bush said, read my lips, no new taxes, then proceeded to give a rather small tax increase and was obliterated. If you can do without it, you're probably better off trying to do so. The speaker did not specify when that note was written, though the message echoes President Trump's consistent warnings on the campaign trail. If Democrats win, taxes will go up. Republican lawmakers aiming to release the tax package in May. Border czar Tom Homan Wednesday on Fox slamming activist groups for launching what he calls a coordinated legal campaign to obstruct the Trump administration's mass deportation efforts.

[Tom Homan]

Well, here's what they're doing. Here's the plan. The Biden administration overwhelmed the system. 10.5 million people came to the border. They know it's going to take years to get through the court docket. By then, they're hoping there's another Democratic minute administration in. They'll have US Citizen children. Then all of a sudden, nobody wants them removed. When they detain them. They get a hearing in 35 days. They released them. Now it's going to take five to seven years. They're going to keep playing this game through the immigration court, through appeal after appeal, after appeal, district judge, district judge to slow us down because their hopes is they'll gain power again. Then they can warn amnesty to 10 million illegal aliens that are released in this country illegally. That is your plan. We're trying to remove these public safety threats, national security threats, as quick as possible. They're putting every roadblock imaginable in front of us to prevent us from doing that.

[Megyn Kelly]

The Trump administration is confronting a growing series of legal roadblocks from federal courts across the country. Challenges critics say undermine the executive branch's constitutional authority to enforce immigration law. Late Friday night, the U.S. supreme Court issued an order temporarily stopping the president from deporting anyone under the Alien Enemies act, at least until the courts can decide the underlying case in which detainees are challenging the use of that act against them. Shortly thereafter, courts in Colorado and New York halted the administration's use of the act in cases before them. In New York, a Clinton appointed judge blocked the deportation of eight Venezuelans. In Colorado, a Biden appointed judge blocking deportations under the act and adding that all affected detainees must receive 21 days notice before any removal and must be informed of their right to challenge their deportation. The latest rulings come Amid the ongoing legal battle over Kilmar Abrego Garcia, an El Salvadoran national with confirmed ties to Ms. 13, currently in custody in his home country despite a documented history of domestic abuse. Two immigration judges affirming his gang affiliation and a valid deportation order. Democratic lawmakers making Garcia a central figure in their fight against the Trump administration, framing the case as a due process issue with implications for all Americans. Maryland Senator Chris Van Hollen making that argument Sunday on ABC following his visit to Mr. Abrego Garcia in El Salvador.

[Newt Gingrich]

I am not defending the man. I'm defending the rights of this man to due process. My mission and my purpose is to make sure that we uphold the rule of law, because if we take it away from him, we do jeopardize it for everybody else.

[Megyn Kelly]

On Sunday, four progressive lawmakers. Congressman Robert Garcia of California, Maxwell Frost of Florida, Yasmine Ansari of Arizona, and Maxine Dexter of Oregon, arriving in El Salvador on an unofficial visit to advocate for Mr. Abrego Garcia. House Oversight Chair James Comer denying the use of taxpayer funds, preventing the visit from being recognized as an official congressional delegation. The Salvadoran government citing the unofficial status of the trip, blocking the lawmakers from meeting with Garcia. Still, the group vowed that Democratic pressure on the Trump administration will continue.

[Chris Van Hollen]

I am here with my colleagues to demand that Donald Trump facilitate the safe return home for Mr. Kilmar Abrego Garcia.

[Megyn Kelly]

And we want to be just very clear that he needs to come home. This is about due process.

[Chris Van Hollen]

We're not going to be the last members of Congress and senators that are here to make sure that he's released and that our country is following our laws.

[Megyn Kelly]

Republican Congressman from Pennsylvania, Guy Rischenthaler on Tuesday telling Fox Democrats are doing Republicans a favor.

[Guy Rischenthaler]

Well, I hope more Democrats continue to stand up for Ms. 13 gang members. Politically, this is incredible for us, you know, it's really rich. These are the same politicians that during the State of the Union wouldn't stand up, wouldn't applaud for angel mothers. And then they turn around and they want to defend an MS.13 gang member. It's quite amazing. So I personally like the juxtaposition of where the Republicans are on this issue and where the Democrats are.

[Megyn Kelly]

Elon Musk telling Tesla investors on Tuesday he plans to scale back on his role in the Department of Government Efficiency to focus more on the car company.

[Elon Musk]

Starting probably next month, May, my time allocation to those will drop significantly. I'll have to continue doing it for light the remainder of the president's term just to make sure that the waste and fraud that we stop does not come roaring back. So I think I'll continue to spend a day or two per week on government matters for as long as the President would like me to do so, and as long as it is useful. Starting next month, I'll be allocating far more of my time to Tesla.

[Megyn Kelly]

The announcement comes in the wake of a poor Q1 earnings report, profits falling by 71% compared to the same time last year, the stock price down 50% overall from its December peak. The electric car company targeted by left wing activists in a nationwide Tesla takedown campaign designed to punish Mr. Musk for working with the Trump administration. More than 50 incidents reported against Tesla vehicles and facilities since January, ranging from vandalism to arson. Authorities arresting at least nine suspects in connection with the violence. So far, Mr. Musk standing by his government work, telling investors the US is facing an existential crisis.

[Elon Musk]

I believe the right thing to do is to justify the ways and fraud and get the country back on the right track and working together with President Trump and his administration. Because if the ship of America goes down, we all go down with it, including Tesla and everyone else.

[Megyn Kelly]

The announcement reassuring investors. Tesla stock rising about 5% on Wednesday following Musk's remarks. Despite Musk stepping back, Doge's work in the Trump administration will continue. And that'll do it for your AM Update. I'm Megyn Kelly. Join me back here for the Megyn Kelly show live on SiriusXM Triumph Channel 111 at noon east on YouTube.com megankelly and on all podcast platforms.

[Chris Van Hollen]

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