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

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.

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.

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.

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.

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.

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.

End of Summary