Watch Joe and Kailey LIVE every day on YouTube: http://bit.ly/3vTiACF.

Elon Musk’s candidate faced a resounding loss in a Wisconsin judicial race despite the world’s richest man pouring millions into the campaign, while Republicans avoided upsets in two critical US House seats in Donald Trump’s home state of Florida.

The votes were the first major elections since Trump took office in January, a chance for a gut-check from the electorate on the president’s sweeping effort to slash the size of government and, through tariffs and the promise of more tax cuts to come, remake the US economy. 

Taken together, Tuesday’s special election outcomes came to a draw. Republicans couldn’t break the 4-3 liberal majority on the Wisconsin Supreme Court, while Democrats fell short in their longshot bids to win either of two heavily Republican House seats, which would’ve complicated the GOP’s efforts to advance Trump’s tax cut plan through Congress.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Host of Bloomberg Law on Bloomberg Radio June Grasso.
• Marquette University Professor of Political Science Julia Azari.
• Bloomberg Politics Contributor Jeanne Sheehan Zaino and Republican Strategist Maura Gillespie.
• Bloomberg Senior Editor for Technology and Strategic Industries Michael Shepard.

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President Donald Trump’s sweeping tariffs will take immediate effect after they are announced Wednesday, his top spokeswoman said. 

“My understanding is that the tariff announcement will come tomorrow. They will be effective immediately, and the president has been teasing this for quite some time,” White House Press Secretary Karoline Leavitt told reporters on Tuesday.  

The US president said Monday he had “settled” on a plan for so-called “reciprocal” duties meant to rebalance US trade relationships. Leavitt said that Trump, who has been known to change his mind on major policy announcements, was meeting Tuesday afternoon with his trade team to discuss the details.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg Politics Editor Laura Davison ahead of President Donald Trump's tariff announcement Wednesday.
• Managing Director of Policy and Advocacy at the Groundwork Collaborative Liz Pancotti about the possible economic impact of tariffs.
• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino about elections in Wisconsin and Florida Tuesday.
• Constitutional lawyer Robert McWhirter as House Judiciary Chair Jim Jordan calls on appropriators to add language in legislation funding the federal judiciary limiting nationwide injunctions issued by district court judges.

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President Donald Trump will announce his reciprocal tariff push on Wednesday during an event in the White House Rose Garden, his top spokeswoman said. 

White House Press Secretary Karoline Leavitt said Monday the announcement would feature “country-based” tariffs. She said the president is also “committed to implementing” sectoral duties but that they were not the focus of the April 2 event and deferred to Trump about the timing of those. Members of Trump’s Cabinet would attend the announcement, Leavitt said.

“The president will be announcing a tariff plan that will roll back the unfair trade practices that have been ripping off our country for decades,” Leavitt told reporters at the White House. “It’s time for reciprocity and it’s time for a president to take historic change to do what’s right for the American people.”

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg Senior National Political Correspondent Nancy Cook to preview the week ahead for the Trump Administration.
• Founder and Managing Partner of International Capital Strategies Doug Rediker about the uncertainty as the world awaits US tariff implementation.
• Bloomberg Politics Contributor Rick Davis and former Democratic Congresswoman Stephanie Murphy as White House Press Secretary Karoline Leavitt confirms an April 2 Rose Garden tariff announcement by President Donald Trump.
• Bloomberg Senior Editor Michael Regan as markets react to the latest tariff news.
• Vice President of Federal Tax Policy at the Tax Foundation Erica York about tax and budget negotiations on Capitol Hill.

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Consumer spending was weaker than expected again in February while a key inflation metric picked up, in a double whammy for the economy before the brunt of tariffs.

Inflation-adjusted consumer spending edged up 0.1%, on the low end of economists’ estimates, after a slump January that analysts mostly blamed on bad weather. Notably in February, Americans reduced spending on services for the first time in three years in the face of higher prices — including on dining out.

“Consumers are resistant to price increases,” Neil Dutta, head of US economics at Renaissance Macro, said in a note. “Ultimately, inflation boils down to a household’s budget constraint and conditions are deteriorating here.”

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Stuart Paul and Anna Wong of Bloomberg Economics about the latest US inflation data.
• Former Chief Economist at the National Economic Council Joe Lavorgna ahead of the April 2nd tariff deadline from the Trump Administration.
• Nonresident Senior Fellow at the Atlantic Council's Europe Center Rachel Rizzo as Vice President JD Vance visits Greenland.

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President Donald Trump signed an order to slap a 25% tariff on auto imports, expanding his trade war designed to bring more manufacturing jobs to the US.

Trump said the tariffs would go into effect on April 2. The administration projects that the tariffs would result in $100 billion of new annual revenue to the US. Wednesday’s move comes before a broader announcement of reciprocal tariffs expected April 2.

“What we’re going to be doing is a 25% tariff on all cars that are not made in the United States,” Trump said at the White House on Wednesday. “We’re going to charge countries for doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they’ve been taking over the years.”

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg Detroit Bureau Chief David Welch about the Trump Administration's planned tariffs on auto imports.
• Former Chair of the White House Council of Economic Advisers Jared Bernstein about the impact of tariffs on the US economy.
• Bloomberg Politics Contributor Jeanne Sheehan Zaino and Republican Strategist Chapin Fay about the immigration policies of the Trump Administration.
• Bloomberg News SEC and CFTC Reporter Lydia Beyoud as Trump's SEC pick undergoes his confirmation hearing on Capitol Hill.
• Former Republican Congressman and Former Air Force Intelligence Officer Denver Riggleman about the continued fallout from the Signal group chat.

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President Donald Trump and top allies struggled to fend off criticism over the inadvertent inclusion of a journalist in a Signal chat discussing military attacks in Yemen, after newly disclosed texts showed how Defense Secretary Pete Hegseth revealed specific operational details.

Trump and senior administration officials on Wednesday ratcheted up criticism of Atlantic editor Jeffrey Goldberg — who National Security Advisor Mike Waltz mistakingly added to the chat — and maintained that specific timing of planned strikes, US weapons systems and targets contained in text messages did not amount to “war plans” or classified information.

“It had no impact on the attack, which was very successful,” Trump said during an appearance on a conservative talk radio show.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg Politics Editor Laura Davison about the latest developments from the Trump Administration.
• American Action Forum President and former Congressional Budget Office Director Douglas Holtz-Eakin as the CBO announces that the federal government could run out of enough money to pay all of its bills on time as soon as August if lawmakers fail to raise or suspend the debt limit.
• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino about the latest tariffs announcement from Trump.
• Ritholtz Wealth Management Founder Barry Ritholtz about his new book "How Not To Invest."
• Bloomberg Pentagon Reporter Tony Capaccio as The Atlantic released the transcript of a group chat between top US officials on Signal.

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Bridgewater Associates founder Ray Dalio warned House Republicans of the dangers of rising US deficits and urged them to cut the budget deficit to just 3% of gross domestic product or risk debt service costs squeezing government spending.  

Dalio’s message of austerity comes as House and Senate Republicans battle over the size of spending cuts to be paired with a giant tax cut coming later this year. The US budget deficit was 6.6% of GDP in 2024, according to the Congressional Budget Office. 

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Bloomberg Capitol Influence Team Lead Megan Scully.
• Republican Congressman Marlin Stutzman of Indiana.
• Bloomberg Politics Contributor Rick Davis and Democratic Strategist Roger Fisk.
• Professor at the University of Virginia's Miller Center and former US Diplomat Mara Rudman.

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Congressional Republicans returning to Washington on Monday will tackle their toughest test yet, negotiating a massive tax bill package to deliver President Donald Trump a signature legislative victory.

Efforts to renew Trump’s landmark 2017 tax cuts and secure additional reductions he’s promised were temporarily sidelined while lawmakers worked to narrowly avert a government shutdown earlier this month.

Treasury Secretary Scott Bessent and Trump’s National Economic Council director, Kevin Hassett are set to meet Tuesday with House and Senate Republican leaders and their top tax writers to try to resolve differences over the scale of cuts and ways of paying for them, according to two people familiar with the meeting.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Kailey speak with:

• Republican Congressman Bill Huizenga of Michigan as lawmakers return to Washington to kickoff reconciliation negotiations.
• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino as President Donald Trump holds a cabinet meeting Monday at the White House.
• Bloomberg's Saleha Mohsin interviews Chair of the White House Council of Economic Advisers Stephen Miran about the Trump economic agenda.

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Boeing Co. won a contract to design and build the US’s next-generation stealth fighter jet, beating out rival Lockheed Martin Corp. for the multibillion dollar program aimed at preparing the military for possible conflict with China.

The new sixth-generation fighter jet, whose overall cost is expected to run in the hundreds of billions of dollars, “will ensure that the USA continues to dominate the skies,” President Donald Trump said in an unveiling at the White House. Trump, the 47th president, said with a smile that it will be dubbed the F-47.

The award caps more than two years of competition between the defense giants for the full-scale development phase of the Next Generation Air Dominance manned fighter, or NGAD. The jet, which will replace the F-22 Raptor, is envisioned to operate in tandem with drones, which are being developed in a separate program.

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Julie Fine speak with:

• Former RNC Communications Director Lisa Camooso Miller.
• Bloomberg Politics Contributors Rick Davis and Jeanne Sheehan Zaino.
• Bloomberg White House Correspondent Josh Wingrove.
• American Enterprise Institute Senior Fellow Mackenzie Eaglen.

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President Donald Trump is expected to sign an executive action formally asking officials to take steps to largely dismantle the Department of Education, his latest effort to reduce the size of the federal government and its workforce.

Trump is slated to sign the order on Thursday, according to people familiar with the plans who spoke on condition of anonymity to discuss them. The order directs the secretary of education to take steps to close the department and “return education authority to the States,” according to a White House fact sheet on the order.

It also mandates that programs and activities receiving any remaining department funds not be used to advance diversity, equity and inclusion efforts. 

Bloomberg Washington Correspondents Joe Mathieu and Kailey Leinz deliver insight and analysis on the latest headlines from the White House and Capitol Hill, including conversations with influential lawmakers and key figures in politics and policy. On this edition, Joe and Julie Fine speak with:

• Bloomberg's Tyler Kendall.
• Former Acting White House Chief of Staff Mick Mulvaney.
• Senior advisor at Razom for Ukraine Melinda Haring.
• Bloomberg Senior Editor for Technology and Strategic Industries Michael Shepard.

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