Elon Quits

Hi Global Recap readers,

We’ve anticipated this for some time, and now it’s official: Musk is stepping away from the Trump team. Over recent weeks, Musk and the DOGE team made several mistakes. That’s understandable, but it hasn’t helped their public image.

• In our latest poll, when asked if you would like to see something like DOGE in your own country, the overwhelming response was yes, if it involves significant efforts to cut government spending and eliminate waste and fraud.

• A lot of us were hoping for a chainsaw, not a scalpel. But maybe the establishment’s just too locked in to let real spending cuts happen. Or maybe—just maybe—there wasn’t as much bloat and fraud as people thought.

If I were to carefully offer my view, I’d say it’s mostly the former. 👇️ 

🌐 WORLD
Fast Scroll News

🇯🇵 Fukushima Soil in PM’s Garden. Japan is moving slightly radioactive soil from Fukushima into PM Ishiba’s garden to convince the public it’s safe. The soil comes from the 14 million cubic meters removed near the damaged nuclear plant to allow evacuees to return home. But many residents are still saying no. The government also wants to use it for roads and infrastructure nationwide, arguing that radiation levels are negligible, though this is facing strong public opposition.

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🇾🇪 Israel Bombs Yemen’s Airport. Israeli fighter jets hit Sana’s international airport again, wiping out the last remaining aircraft used by Yemen’s Houthi government. The strike was in response to Houthis’ continuous missile attacks on Israel, part of a campaign the Iran-backed militia calls “solidarity with Gaza.” PM Netanyahu doubled down, saying Israel would strike whoever harms them, blaming Iran for the ongoing aggression.

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🇺🇸 Elon Musk Quits Trump Admin. After months of slashing government spending, Elon Musk is stepping away from his role as Trump’s top adviser. He had aimed to slash $2 trillion in government spending but ended up settling for $150 billion. But now, people are wondering: Did Musk leave because of tension with officials who didn’t love his aggressive overhaul of federal agencies? Or was it pressure from investors worried he’s neglecting Tesla?

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🇷🇺 Russia Pushes for Peace Talks. Moscow wants fresh negotiations with Ukraine in Istanbul on June 2, aiming for a long-term peace deal. Previous talks fizzled out because Russia was demanding things Kyiv wouldn’t accept. But with pressure from US President Trump, both sides are heading back to the table, and Putin’s even suggested drafting a memorandum for peace. Is this another stalling tactic?

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🇪🇺 EU Lifts Syria Sanctions. The European Union officially dropped its economic sanctions on Syria, aiming to support its recovery after former president Bashar al-Assad’s removal. This comes after a deal reached last week by EU foreign ministers to drop the restrictions. While some sanctions against the Assad government remain, new penalties are now in place targeting people involved in the violent unrest of March.

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🇺🇸 UNITED STATES
Trump Responds:
TACO Trade

Ever heard of the TACO trade?

You’ve probably seen the SP500 and a bunch of stocks bouncing back after that big drop. A lot of folks on Wall Street are calling it “TACO”—Trump Always Chickens Out. Basically, people are betting that if Trump announces a tough tariff, he’ll “chicken out.”

I’d noticed the trend, but I didn’t realize there was a name for it.

• A reporter asked him for his take on the term, and he essentially confirmed what a lot of his backers had been thinking—he’s intentionally setting a ridiculously high number at first to allow for a drop during negotiations.

• However, his critics are still calling this “chickening out,” accusing him of flip-flopping every time bond yields spike after he announces a new tariff.

This is how he responded:

🇺🇸 UNITED STATES
Trump’s Tariffs: Illegal

Speaking of TACO, the whole “is he a chicken?” debate feels moot for now. That’s because a federal court just nuked Trump’s “Liberation Day” tariffs, ruling he massively overstepped his authority.

In other words, it’s illegal. But below, we will go through what actually gives the US President the power to impose tariffs—and then you can decide for yourself who might be overstepping: the Court or the President.

The Court’s Ruling

The judges made it clear that the Constitution gives Congress, not the president, the power to impose tariffs.

• The ruling permanently stops the enforcement of these taxes.

• The court said Trump’s national emergency argument doesn’t hold up under the International Emergency Economic Powers Act (IEEPA).

• The decision blocks import taxes on goods from Mexico, Canada, and China that Trump claimed were meant to fight drug trafficking.

• The Department of Justice immediately appealed.

Context

While the US Constitution gives Congress the power to set tariffs, over the years, it has delegated significant authority to the president through various trade laws.

This means the president can impose tariffs, but only within limits defined by statute.

Examples of Presidential Authority:

• Section 232 (Trade Expansion Act of 1962): Allows the President to set tariffs for national security concerns (Trump used it for steel and aluminum).

• Section 301 (Trade Act of 1974): Allows tariffs in response to unfair foreign trade practices (used during the “US-China trade war”).

• International Emergency Economic Powers Act (IEEPA): Grants the President broad authority during national emergencies, though not specific to tariffs.

However, these powers aren’t absolute. Congress can limit or revoke them, and courts can weigh in—but in practice, presidents generally have the freedom to act quickly on trade when politically or strategically useful.

Why It Matters

These tariffs were a big piece of Trump’s trade policy, and they’re gone, for now.

• The judges argued the tariffs didn’t actually “deal with” drug trafficking, as required under IEEPA.

• Attorneys general from 12 states pushed to strike them down.

• Arizona AG Kris Mayes called it “Trump’s illegal tariff scheme.”

Trump Administration’s Reaction

Understandably, the White House is furious and isn’t backing down.

• Trump’s team argues that trade deficits have hurt US workers and justify the tariffs.

• White House spokesperson Kush Desai slammed the ruling, saying unelected judges shouldn’t dictate national emergency policy.

• The administration will likely fight hard to overturn the decision.

What’s Next?

However, Trump’s legal team faces an uphill battle.

• The specialized court handling trade disputes may not be easy for Trump to sway.

• Any appeal has to go through the US Court of Appeals for the Federal Circuit, where he hasn’t appointed a single judge.

• The Supreme Court usually avoids intervening in Federal Circuit cases, making a reversal unlikely.

🇺🇸 UNITED STATES
US Tightens Visa Rules
for Chinese Students

Secretary of State Marco Rubio says the US will start “aggressively” revoking visas of Chinese students, including those tied to the Chinese Communist Party or studying in sensitive fields.

What’s Changing?

The US State Department is ramping up scrutiny on Chinese student visas, aiming to restrict entry for those with political or research links.

• The policy could affect thousands of students at US universities, which rely on international tuition revenue.

• The Trump administration is also revising visa criteria for future applicants from China and Hong Kong.

Economic Fallout

That being said, Chinese students bring big money to US colleges. Cutting their numbers could hit universities—and tech companies—hard.

• In 2024, 277,000 Chinese students studied in the US, down from 370,000 in 2019.

• International students contributed over $50 billion to the US economy in 2023.

Opinions

Reaction to this is sharply divided:

• Supporters argue that US institutions have become overly dependent on foreign student revenue, which has skewed hiring practices and policies to favor international interests over domestic priorities.

• Critics call this stance thinly veiled racism, warning that shutting out foreign talent contradicts the free-market principles Republicans claim to support and risks stifling innovation and economic growth.

Rising Tensions

But this move isn’t surprising coming from the Trump administration.

• The visa crackdown aligns with its broader anti-immigration agenda and growing tensions with China—both central themes of Trump’s platform and key reasons many voters supported him.

• Critics warn that blanket bans could harm US research and innovation.

• The move follows previous US efforts to shut down Chinese-funded Confucius Institutes on university campuses.

What’s Next?

With US-China relations already strained, this could drive more Chinese students toward European universities—or back to China altogether.

• In fact, a growing number of graduates are already returning to China rather than staying in the U.S. workforce.

  • According to China’s Ministry of Education, over 1 million Chinese students came back home after studying abroad in 2021, way up from 777,000 the year before. This is a trend. Between 2016 and 2019, around 80% of Chinese grads overseas made the same move.